ABSTRACT

The study investigated the effect ofgovernment expenditure on infrastructure and economic growth in Nigeria onfor theperiod 1981-2018 with specific objectives namely; to determine the impact ofgovernment spending on transportation and communication on economic growth in Nigeria, to determine the impact of Governmentspending on education on economic growth in Nigeria, to determine the impact ofGovernmentspending on health on economic growth in Nigeria and to determine how Government spending on agriculture affects economic growth in Nigeria. The specified model was estimated using the Ordinary Least Square with the help ofthe Error Correction Model to determine the level ofimpact that one variable has on the other. While E-views 10 statisticalsoftware was employed in computing the result, time series data were obtainedfrom WorldBank national accounts data and OECD National Accounts datafiles and the study established that, GovernmentExpenditure on Education (GEXPE) hadapositive relationship with RGDP and also has a significant effect on RGDP at 5% level ofsignificance in the short run and in the long run, Government Expenditure on Agriculture (GEXPA) had a negative relationship with RGDP, in the short run and statistically insignificant at 5% level ofsignificance but positive in the long run period while Government Expenditure on Health (GEXPH) had a negative relationship RGDP at 5% level ofsignificance in the short run and in the long run and finally, Government Expenditure on Transport and Communication (GEXPTC) had a positive relationship with RGDP in the short run and in the long run. Based on the findings, the study recommended that the Agricultural sectorshould be given thepriority it needs to become a backbonefor the economy in theface ofan ailing economy and should be improved with priority attention, while there is an urgent need to diversify into agriculture based on the economic downturn which over-reliance on oil revenue has primarily caused. Besides, it is an avenueforfood security, job creation andpoverty alleviation.