ABSTRACT

The study focused on government spending and economic growth of Nigeria. The specific objectives of the study includes; determine the effect of government spending (capital expenditure and recurrent expenditure) on real gross domestic product of Nigeria, to ascertain the effect of government spending(capital expenditure and recurrent expenditure)on the per capital income of Nigeria, to evaluate the effect of government spending(capital expenditure and recurrent expenditure)on the inflation rate of Nigeria. To achieve the objectives of the study ex-post facto research design was adopted. Secondary data was collected from CBN statistical bulletin. Data were analyzed using panel data multiple regression analysis. The finding in hypothesis one revealed that government spending (capital expenditure and recurrent expenditure) has a significant effect on real gross domestic product of Nigeria. The finding in hypothesis two revealed government spending (capital expenditure and recurrent expenditure) has a significant effect on per capital income of Nigeria. The finding in hypothesis three revealed that government spending (capital expenditure and recurrent expenditure) has no significant effect on inflation rate of Nigeria. The study recommends that Nigerian government should channel fund more on capital expenditure which has positive effect on real gross domestic Product, to enhance the economic growth of the country. There is a need for government to streamline and monitor the channels non-interest recurrent expenditure passes through in order to contribute meaningfully to the economic growth of the country. Federal government should  strike a balance   between allocation of funds into capital and recurrent expenditures in the country , by  allocating more funds  to recurrent expenditure to ensure that workers’ salaries are paid as at when due in the country