IMPACT OF PUBLIC SECTOR CAPITAL EXPENDITURE ON ECONOMIC DEVELOPMENT IN NIGERIA

(2000 - 2020)

Abstract

This work focuses on the impact of public sector capital expenditure on the economic development in Nigeria (2000 – 2020). The study was carried out to determine the relationship between government expenditure and Nigeria economic growth and stability. This was informed because of the constant increase in government responsibility and the need to enhance capital project in the country. Three research objectives, three research questions and three hypotheses were raised and used. Expo-facto research design was employed and only secondary data (through CBN statistical bulletin and Nigeria bureau of statistics) were sourced and used. The data collected were presented in tables and analyzed using regression statistics and graph. The findings revealed that there is no correlation between industrial production and federal government capital expenditure, and there is no relationship between public capital expenditure and unemployment reduction in Nigeria. Based on the findings, it was recommended that the Nigerian government should enhance public sector capital expenditure and reduce the rate of recurrent expenditure so as to achieve economic development in Nigeria.