Moses Orshio Adasu University, Makurdi

Government Expenditure on Education and Economic Growth in Nigeria

Joyce Mbakosun Ayaga, Dennis Terpase Nomor and Christopher Obilikwu Obute

Abstract

This study investigates the impact of educational expenditure on economic growth in Nigeria using time series data and the Autoregressive Distributed Lag (ARDL) methodology. The findings indicate that government expenditure on education has a negative and statistically insignificant impact on economic growth in both the short and long run. In contrast, labor productivity exhibits a significant positive impact on economic growth in the short run but not in the long run. Additionally, gross fixed capital formation and household consumption expenditure show positive effects on economic growth, though these are not statistically significant. The study highlights the inefficiency of current educational spending in promoting economic growth and suggests a reevaluation of government expenditure on education. Recommendations include focusing on programs that enhance skills and productivity, investing in infrastructure, implementing policies to boost household consumption, and improving data collection and analysis. These measures aim to foster a more robust economic environment and leverage education as a driver of sustainable economic growth in Nigeria.

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