IMPACT OF GOVERNMENT SIZE ON ECONOMIC GROWTH IN NIGERIA

This study investigated the impact of government size on economic growth in Nigeria. The research investigated various variables, including government expenditure, population growth, inflation, and exchange rates, to unravel their impact on the country's economic development. The analysis begins by examining the role of government size, proxied by Total Government Expenditure (TGEX), in shaping economic growth dynamics. The findings reveal a significant and positive relationship between government expenditure and economic growth, emphasizing the pivotal role of fiscal policies in Nigeria's development. These results underscore the importance of prudent fiscal management and the strategic allocation of public resources as crucial drivers of economic growth. Furthermore, the study highlights the demographic dividend inherent in Nigeria's youthful population. Population growth, represented by the population growth rate (POP), emerges as a substantial driver of economic expansion, particularly in the long run. Policymakers are encouraged to focus on investments in education, skills development, and job creation programs that cater to the unique needs of the youthful population, recognizing their potential as contributors to sustained economic growth. Conversely, the analysis suggests that the relationships between inflation (INF) and exchange rates (EXR) with economic growth are less robust within the specific models employed. Nevertheless, the study underscores that these variables continue to exert significant influence over economic dynamics, necessitating effective inflation management and exchange rate stability for overall economic stability.