IMPACT OF GOVERNMENT SIZE ON ECONOMIC GROWTH IN NIGERIA

Abstract

The study examines the relationship between government size (measured as government spending as a percentage of GDP) and economic growth in Nigeria, using the FMOLS method to analyse secondary data from 1981 to 2021 sourced from the Central Bank
of Nigeria's Statistical Bulletin. It found a significant and positive long-term connection between government size and economic growth, with a coefficient of 0.582 indicating the impact of government spending on growth. This underscores the importance of government expenditure in driving Nigeria's economic progress, emphasizing the necessity for efficient and effective spending policies to enhance growth outcomes in the country.