Emeso Nathanaella MOMODU

The aim of this study is to ascertain the impact of government spendingoneconomic growth in Nigeria with a focus on determining the long run and short runrelationship between government spending and economic growth. Secondaryaimof this study is to ascertain the degree of dependence of economic growth onotherindependent variables of inflation and labour force. The model employedinthisstudy is the OLS and the Error Correction Mechanism.. The time frame for thisstudy spanned between the year 1981-2020. This study , the study showedthat government spending had a beneficial and considerable impact on Nigeria'seconomic development. This will also succeed if every naira allocated for thisindex is wisely spent. The Real Gross Domestic Product is negativelyandnegligibly impacted by capital spending. It demonstrates that the regressionmodel has a negative association with both the coefficient result and the P-Value. Also, it was noted that raising white elephant project spending will only slowtherate of economic growth. Recurrent expenditure for example spending on educationhas a favourable and considerable effect on Nigeria's economic expansion. Thisdemonstrates that an increase in education spending will probably lead to a riseineconomic growth. This will also succeed if every naira allocated for this indexiswisely spent. However, it was suggested that Government spending, both capital and ongoing, needs to be managed and tracked during execution to improve comparablysuccessful outcomes in relation to economic growth. They should see toit that capital and ongoing expenses are appropriately managed so as to improvethecountry's foreign relations as it relates to conducting business with other nations. This will have a long-term effect of stabilising the economy and increasingthevalue of her currency, which will result in economic growth .