Total Size of Public Spending and Nigeria Economy: A Statistical Analysis

This study used a systematic time series econometrics approach to examine the impact of total size of public spending (proxy by Total Federal Government Expenditure) on economic growth (proxy by GDP) of Nigeria during the period 1981-2022. The data such as Total Federal Government Expenditure (TFGE) and Gross Domestic Product (GDP) were obtained from Central Bank of Nigeria (CBN) statistical bulletin and National Bureau of Statistics (NBS). The data set were subjected to preliminary test and the ADF result revealed that all the variables were integrated at I(1) indicating a long-run relationship between the dependent and independent variables while the Error Correction Model (ECM) techniques was used to estimate the model. The result of the findings revealed that TFGE exert positive and significant impact on GDP. Therefore, the researchers recommend that the increase total size of public spending should be channel towards the productive sector so as to give more room in enhancing sustainable economy.