Abstract

This study analyzed the effect of government expenditure on infrastructural development in Nigeria from 1990-2018, the study adopted the use of augmented dickey and fuller test for stationarity test to ascertain the individual parameters stationarity level, descriptive statistics was used to capture the collective variation and behavior ofthe series adopted for the study. The study implored the use ofordinary least square estimate to evaluate the effect ofgovernment expenditure on infrastructural development in Nigeria. The main findings of this study is summarized as follows: i) government expenditure on agriculture has positive and significantly influence growth rate per capital during the period of this investigation, ii) government expenditure on economic services was negative but significant at 03.38 Percent, iii) government expenditure on social and community services has a negative influence over growth rate of per capita and iv) the result of government transfer for the period is positive, but insignificantly influence changes in growth rate of per capita income for the period of this investigation. Based on the findings of the study, the following recommendations are postulated for the study recommends that: government should endeavor to increase the budgetary allocation and expenditure to the sector, hence government expenditure on agriculture is positively and significantly related to the growth rate of per capita income for the period of this empirical evaluation. The government should therefore enact favourable policies that will favour the agricultural sector; the outcome of government expenditures on economic services was negative, which does not satisfy the apriori expectations of the study. It was expected that government expenditures on economic services will have positive and significant effect on growth rate of per capita income, hence it is advised that the government should regulate her expenses over economic services in the country over time; and finally, transfer expenditure is positively influencing growth rate of per capita income during the investigative period ofthis study, the government should get more involved in the use oftransfers, hence it positively influences changes in growth rate ofper capita income