GOVERNMENT CAPITAL EXPENDITURES AND ECONOMIC DEVELOPMENT PARADIGM IN NIGERIA. THE PER CAPITA AMPLITUDE.

Abstract

This research focused on government capital expenditure and economic development paradigm in Nigeria between the periods 1990 to 2020. The immediate objective was to determine the effect of government’s capital expenditure on economic development in Nigeria.  Government capital expenditure was disaggregated into economic services, social and community services, transfers and administration, while economic development was proxied by per capita income.  Data for the study were obtained from the Central Bank of Nigeria statistical bulletin and World Bank data website (WDI). The ordinary least square (OLS) statistical technique was used for data analysis. Results from the individual statistical tests revealed that except for government capital expenditure on social and community services, government capital expenditure on economic services, administration and transfers have insignificant negative and positive effects respectively on per capita income in Nigeria. However, the result of the global statistics as shown by the F-test revealed that government capital expenditure on economic services, social and community services, transfers and administrations collectively have significant effect on the economic development of Nigeria. On this backdrop, it was recommended that there is urgent need for the government of Nigeria to be more proactive by sincerely blocking all leakages that makes it possible for civil and public servants to divert public funds meant for capital projects in the country. This can be achieved through automation of the public sector expenditure in order to reduce person-to-person contact which makes it easier for people to collaborate on how to siphon public funds.