ABSTRACT

Public sector performance has played a significant role in fostering economic growth of Nigeria over the years hence, this study aimed at investigating and evaluating the impact of public sector performance and economic growth in Nigeria. The model was subjected to a pairwise granger causality test to determine the relationship between real gross domestic product and health expenditure as a share of GDP in Nigeria for the period of 1986–2017. The model was also subjected to The Engle-Granger residual based co-integration test which was also used to show the CO integration in the equation and thus leading us to a conclusion where we accept the alternative hypothesis for the period of 1986–2017. The study hence found that the effect public sector performance has on economic growth in Nigeria is represented in the relationship between GDP per capital and expenditure on education GEE, expenditure on health GEH, and real government domestic product RGDP. There's also a negative but insignificant relationship between GDP and GFCF. The study of public sector performance and economic growth in Nigeria is necessary for improving effectiveness and efficiency of public sector amongst several determining functions in the drive toward growth and development hence the study recommends an enabling environment to be created by government and also that the government should pursue policies of export promotion which encourages domestic companies to increase production. Amongst others appropriate accountability cannot be overemphasized as it brings about direction of government activities to be in accordance with the principles employed.