IMPACT OF GOVERNMENT SECTORAL EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1985-2025)

Government expenditures play an important role in Nigeria’s economic growth. in spite of various government policies to improve the economy, the Nigeria economy is still growing at a very slow pace. It is against these backdrops this paper examines the impact of government sectoral expenditure on Nigeria economic growth from 1985-2025. The variables used were real gross domestic product as the dependent variable while agricultural sector output and transport sector are the independent variables. The Dynamic Ordinary Least Squares (DOLS) estimation technique was used in estimating the values of the parameters. The regression result showed that, agricultural sector, have positive relationship with economic growth, while transportation sector expenditure has no significant impact on economic growth in Nigeria, Based on these findings, this paper recommended among others that the Federal Government of Nigeria, through the Ministry of Transport, is advised to prioritize the transport sector by allocating increased resources to enhance transportation infrastructure, which includes the development of efficient transportation systems such as railways, roads, and waterways, along with the establishment of incubation hubs to support economic growth