PUBLIC FINANCIAL MANAGEMENT, INSTITUTIONS AND ECONOMIC PERFORMANCE IN NIGERIA

ABSTRACT

This study examined Public Financial Management (PFM), institutions and Economic performance in Nigeria. The study specifically examined the relationship between total government revenue and economic development in Nigeria, assessed the nexus between total government expenditure and economic development in Nigeria, evaluate the association between total public debt and economic development in Nigeria and analyzed the effect of inflation on economic performance.An ARDL research design was adopted for this study and data used for the analysis were generated from the Central Bank of Nigeria Statistical Bulletin (CBN, 2022) for 41 years, spanning 1981 to 2022. This study made use of descriptive statistics to show the mean, standard deviation, minimum and maximum values of the variables used in the study. This was followed by correlation analysis, unit root analysis, cointegration analysis and long-run and short-run estimation results.Diagnosis result tests included serial correlation, heteroskedasticity and normality test.

Findings from the study revealed that; in the long run,total government expenditure and total revenue has a positive and significant effect on economic development in Nigeria. Total public debt is insignificant on economic development in Nigeria and inflation negatively affects economic performance. The study concluded that Public Financial Management has significant positive relationship on economic Development in Nigeria. It is recommended that Borrowed funds should be utilized to help the nation build her infrastructure and proper policy should be put in place in order to ensure transparency and accountant in public finance management.