EXTERNAL RESERVES, PUBLIC EXPENDITURE AND NIGERIA E

The study examines the relative impact of government expenditure and external reserves on economic growth in Nigeria within the period 1986-2023, using vector autoregressive methodology. The results revealed that government expenditure on health sector impacts negatively on economic growth while that of education, defence and external reserves impact positively on economic growth. The study recommends that government should increase budgetary allocation and stimulate more funding channels to education and health sectors of the economy. Also, government should allocate more to capital expenditures of education and health than to recurrent expenditures of same in order improve the quality of facilities, materials and equipment in the education and health sectors.