Government Expenditure in Nigeria: Determinants and Trends

Akanbi, Olusegun Ayodele

doi:10.5901/mjss.2014.v5n27p98

Cited by 10 publications

(10 citation statements)

References 17 publications

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“…Governance quality or good governance is concerned with the effectiveness of the traditions and institutions by which authority is exercised in a country (Kagundu, 2006). On the other hand, poor governance is considered as the inefficient management of a nations' resources and misplacement of public spending priorities (Akanbi, 2014). There is consensus among policy makers and academics that good governance is crucial in economic development.…”

Section: Public Governance In Infrastructure Procurementmentioning

confidence: 99%

“…It reflects the degree to which public power is diverted for private gains (Cooray, 2009). Public procurement of infrastructure is known to create incentives for corrupt behaviours (Delavallade, 2006;Kenny, 2007), and the government of a country with weak institutions and poor governance will allocate more funds to capital projects than to recurrent expenditure which offer less incentive for corruption (Akanbi, 2014). Transparency International (2016 has this to say about public sector corruption:…”

Section: Public Governance In Infrastructure Procurementmentioning

confidence: 99%

“…In Nigeria, infrastructure development is largely financed through public budgets, and the resource for financing public infrastructure development are often scarce (Oyedele, 2012). Despite this economic reality, several authors and researchers (Akanbi, 2014;Oke, 2013;Opawole et al, 2013) have alluded to the incidence of poor governance quality in financing the procurement of public infrastructure projects in Nigeria. Generally, poor governance has the tendency to weaken infrastructure provision, as it drains away public funds (UNDP, 2008).…”

Section: Introductionmentioning

confidence: 99%

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Governance quality and public sector procurement of infrastructure projects in developing countries: evidence from Nigeria

Asuquo

Lashinde

Adu

2021

JOPP

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Purpose In developing countries, governance structures are reputed to be weak, and infrastructure procurement is largely achieved through public sector financing. This study aims to examine the impact of governance quality on public sector infrastructure procurement in Nigeria. Design/methodology/approach Data on public infrastructure expenditure (CAPEX), revenue (REV) and debt burden (DEBT) were sourced from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) for the period 2000–2017. In addition, the Corruption Perception Index (CPI) of Nigeria for the period was obtained from Transparency International. Data were analysed using Ordinary Least Square regression and Granger Causality Test. Findings Results indicate that CPI and DEBT have negative effects on public infrastructure procurement, whereas REV has a significant positive impact. The findings suggest that an increase in public sector corruption leads to increase in the share of public budget allocated to infrastructure procurement. Moreover, an increase in the amount allocated to debt burden lowers the share of public resources available for infrastructure procurement. Findings also show that revenue is a leading indicator of infrastructure procurement, and public expenditure for infrastructure procurement is leading cause of public sector corruption. Social implications In Nigeria, resources for financing infrastructure are scarce, and there have been reports of poor governance in infrastructure procurement. The establishment of a relationship between governance quality and infrastructure procurement will help in more efficient allocation of scarce public resources. Originality/value To resolve the governance-infrastructure question, the study established causal relationships between governance quality variables and public expenditure on infrastructure.

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Section: Public Governance In Infrastructure Procurementmentioning

confidence: 99%

Section: Public Governance In Infrastructure Procurementmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Governance quality and public sector procurement of infrastructure projects in developing countries: evidence from Nigeria

Asuquo

Lashinde

Adu

2021

JOPP

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“…It confirms postulation of keynesian theory and implies that Nigeria economy at its current stage of development owes much to government spending. Akanbi (2014) in his work, Government expenditure in Nigeria: Determinants and the trends employed a public choice framework and the model is estimated in the time series data from 1974 to 2012, using the Johansen estimation techniques. The results show that capital and recurrent expenditure are resilient to shocks in total government spending and, similarly, total government expenditure is found to be resilient to shocks in capital and recurrent spending.…”

Section: Peacock-wiseman Hypothesis or Displacement Effectmentioning

confidence: 99%

Response of Economic Growth to the Stimuli of Government Expenditure: Evidence from Nigeria

Godfrey¹,

Ejem²

2019

theijbm

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“…Empirical evidences on the effect of government expenditure on output growth especially for developing economies like Nigeria, present two opposing views, some suggesting that government expenditure has negative effect on output growth (Abu & Abdullahi, 2010;Devarajan, Swaroop & Zou, 1996;Fölster & Henrekson, 2001;Gukat & Ogboru, 2017;Nurudeen & Usman, 2010;Saidu & Ibrahim, 2019;Segun & Adelowokan, 2015). In contrast, other studies established that government expenditure promotes output growth and development of a country (Aigbeyisi, 2013;Akanbi, 2014;Ahuja & Pandit, 2020;Awode & Akpa, 2018;Nyarko-Asomani, et al, 2019;Bose, Haque & Osborn, 2007;Idris & Bakar, 2017;Ihugba & Njoku, 2017;Jibir & Aluthge, 2019a;Jibir & Babayo, 2015;Srinivasan, 2013;Olayungbo & Olayemi, 2018).…”

Section: Introductionmentioning

confidence: 99%

Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019

Aluthge

Jibir

Abdu

2021

CBN-JAS

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This study investigates the impact of Nigerian government expenditure (disaggregated into capital and recurrent) on economic growth using time series data for the period 1970-2019. The paper employs Autoregressive Distributed Lag (ARDL) model. To ensure robustness of results, the study accounts for structural breaks in the unit root test and the co-integration analysis. The key findings of the study are that capital expenditure has positive and significant impact on economic growth both in the short run and long run while recurrent expenditure does not have significant impact on economic growth both in the short run and long run. The study recommends that government should increase the share of the capital expenditure especially on meaningful projects that have direct bearing on the citizen’s welfare. Government should also improve the spending patterns of recurrent expenditure through careful reallocation of resources toward productive activities that would enhance human development in the country.

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Government Expenditure in Nigeria: Determinants and Trends

Abstract: Abstract

Cited by 10 publications

References 17 publications

Governance quality and public sector procurement of infrastructure projects in developing countries: evidence from Nigeria

Governance quality and public sector procurement of infrastructure projects in developing countries: evidence from Nigeria

Response of Economic Growth to the Stimuli of Government Expenditure: Evidence from Nigeria

Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019

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