ABSTRACT

This study investigates the effect of government expenditure on the economic growth of Nigeria. The objectives of the study are to determine the effect of government expenditure on Gross Domestic Products, Standard of living and inflation rates in Nigeria. To achieve the objectives of the study secondary data on Government expenditure, GDP, consumption and inflation rates were collected for the period 2010 to 2017 and analysed using multiple regression techniques. The findings show that government (Capital and recurrent) expenditure has a significant effect on GDP of Nigeria. Secondly, that government (Capital and recurrent) has a significant influence on standard of living in Nigeria. Lastly, that government (Capital and recurrent) has no significant influence on inflation rate in Nigeria. The researcher therefore recommends that government should increase its expenditure to further drive economic growth. That Government should diversify their capital investment to areas that will reduce cost of living; so as increase the standard of living. That In light of the position of the relationship between the rate of inflation and economic growth, some level of inflation is advisable/tolerable for economic growth to take place. That Zero inflation should not be the goal of monetary authority, but sustainable level of inflation for sustainable growth rate. Therefore, some level of inflation is good for economic growth in Nigeria.