Impact of Public Spending On Poverty in Nigeria

ABSTRACT

This research was carried out in other to find out the impact of public spending on Poverty in Nigeria. Annual data on Government Capital Expenditure, Government Recurrent Expenditure, Gross Fixed Capital Formation and Poverty were collected from the National Bureau of Statistics, Nigeria and the Central Bank of Nigeria covering the period of 1981-2015. The results indicated that Government Recurrent Expenditure did not significantly impact poverty in Nigeria while Government Capital Expenditure and Gross Fixed Capital Formation the proxy for private sector investment significantly impacted on Poverty in Nigeria during the period under review. The researcher recommends that policy directed towards an increment in Government Capital Expenditure and Gross Fixed Capital Formation to further reduce poverty rates be implemented. The researcher also recommends significant increase in Government spending on recurrent goods together with proper implementation devices to straighten the pathway towards poverty rate reduction in Nigeria. This would lead to significant reduction in poverty rates, breech the inequality gaps, reducing unemployment and stimulate economic growth and development