OSIBOKO MARVELOUS AVWEROSWO

This study investigates the magnitude of the direction of government expenditure and its impact on the wellbeing of the people with the aim of alleviating poverty. Some social indicators were employed in the study which reflects the living standard of the people and they include health, agriculture, education, microfinance and life expectancy. By employing these indicators, the rate at which government expenditure affect the lives of people and also us relative impact on poverty reduction were determined In this study, the Ordinary Least Squares method of analysis was used with Poverty as the dependent variable and five independent variables. They are government expenditure on education, health, agriculture, microfinance and life expectancy. The data used in this research was collected from secondary data obtained from the CBN statistical bulletin. The major findings shows that government expenditure on health education and agriculture are significant and a unit increase of government expenditure in these sectors can reduce poverty level. While that of life expectancy and microfinance are insignificant and a unit increase will increase poverty level. Recommendation were proffered based on the findings of this research that government at all levels should gear up its investment in agricultural research, health and education and ensure that its expenditure are channeled towards projects that will reduce poverty level in Nigeria so as to drive the economy towards growth and development.