Government spending and poverty reduction in Nigeria: Trend and impact analysis

Public spending is an important macroeconomic tool used to promote economic development and poverty reduction. Poverty in Nigeria is endemic with over 133 million people in multidimensional poverty in spite of various government interventions in reducing/ eliminating poverty. This study investigates the nexus and impact of government expenditure on poverty. Data were obtained from official government publications sourced from Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). The data were analysed using regression analysis. The outcome of the analysis reveals that government spending has positive relationship with poverty but has little impact on poverty reduction and negatively associated with poverty index. The study recommends that government should as a deliberate policy, increase allocation to the economic and social sectors, such as: education, agriculture, health, transport and communication, in view of their direct impact on the poor. The enforcement of budget discipline in all its three dimension was also recommended to ensure that allocations are not misdirected.