EFFECT OF PRODUCTIVE EXPENDITURE ON ECONOMIC GROWTH OF NIGERIA AS MODERATED BY PUBLIC DEBT
Oladele Oladipo Ojo , Prof. S. A. S. Aruwa, Chukwuma Obumneme Eugene and Ritgak Gotar Yibis
Volume 3 Issue 2
Abstract
The study investigated the effect of productive expenditure on the economic growth in Nigeria as moderated by public debt for the period of thirty one years, from 1991-2021. Ex-post facto research design was adopted. The data used in this study were secondary data derived from the Central Bank of Nigeria Statistical Bulletin while public debt data was sourced from Debt Management Office Annual Reports. The study used multiple regression analysis and the result revealed that both economic service and social service expenditure have positive significant effect on economic growth but when moderated by public debt showed economic service expenditure has positive significant effect on economic growth while social service expenditure has a negative significant influence on economic growth in Nigeria. The study concluded that economic service and social service expenditures have effects on economic growth in Nigeria. The study recommends that the government should increase public spending on social services. This can be accomplished by utilizing public funding to improve educational quality at all levels of learning (primary, secondary, and higher education) through training programs that give the skills and information needed to increase labor productivity and create additional job possibilities. Furthermore, public spending in the health and social security sectors should be directed toward constructive expenditures that promote economic growth. Key Words: Productive Expenditure, Expenditure, Economic Growth, Public Debt
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