THE RELATIONSHIP BETWEEN GOVERNMENT EXPENDITURE AND POVERTY IN NIGERIA

ABSTRACT

This study attempt to find the relationship between government expenditure and poverty in Nigeria. This study employed some statistical and econometric tools to analyze the relationship. The result revealed a negative relationship between government expenditure and poverty based on a time series data from 1980-2017. The data used in this research was collected from secondary data obtained from National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) statistical bulletin. The major findings shows that government expenditure on health, education are insignificant and a unit increase of government expenditure on these sectors will reduce poverty level. While a positive causal nexus exists between Infant mortality rate (IMR) and poverty level in Nigeria. Government expenditure on general administration (GGAD) reduces poverty level in Nigeria.. A positive causal relationship exists between public debt interest expenses (PUBDT) and poverty level in Nigeria. Recommendations were preferred based on the findings of this research. That the government at all levels should ensure that its expenditure are channelled towards projects that will reduce poverty level in Nigeria.