DOES GOVERNMENT CROWD OUT PRIVATE INVESTMENT IN NIGERIA

  There is a dilemma between the current call for a private sector led economic growth process for a reduction in government participation in the Nigerian economy, and the call for government domination in the economy. Government expenditure represents an important policy instrument through which an enabling environment can be created for a greater private sector participation in the economy.

However, against the background of deepening economic crises that began in the 1980s following the oil market glut and world economic depression, the Babangida  led Administration introduced the structural adjustment programmed (SAP) in 1986.The SAP  programme, which was packaged on the basis of neoclassical doctrine, had, as part of its  European Scientific Journal    December edition vol.8,   No.2 8     ISSN: 1857  –  7881 (Print)  e -  ISSN 1857 -  7431. Policy recommendation a reduction in government spending and greater role for private sector in the economy. It is therefore important to demonstrate the role government could play to enhance and sustain private sector investment in the economy. This calls for a  thorough analysis of the relationship between government expenditure and private investment  in Nigeria.