Effect of Government Expenditure on Standard of Living and Economic Growth in Nigeria

This study investigated effect of government expenditure on the standard of living and economic growth in Nigeria over the period 1981 2023, utilizing the Autoregressive Distributed Lag ARDL technique. Data from the Central Bank of Nigeria and World Development Indicators were analyzed with E Views 12. Results revealed sectorial variations in effectiveness. Expenditure on education negatively affected both standard of living and growth in the short and long run, health spending improved living standards significantly but had a negative effect on economic growth in Nigeria, while agricultural spending negatively impacted both outcomes, as did transport and communication expenditure and in contrast, investment in roads and construction demonstrated a strong positive and significant relationship with both improved living standards and economic growth in Nigeria at 5 percent level of significance. The study recommended among others, enhanced oversight for education spending to ensure proper fund utilization. It further advocated for increased investment in road infrastructure to boost private sector productivity, improve goods distribution, raise living standards, and stimulate economic growth. Osuagwu Felicia Obiageri | Prof. Charles Uche Ugwuanyi | Justin C. Alugbuo "Effect of Government Expenditure on Standard of Living and Economic Growth in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-10 | Issue-1 , February 2026, URL: https://www.ijtsrd.com/papers/ijtsrd99996.pdf Paper URL: https://www.ijtsrd.com/economics/development-economics/99996/effect-of-government-expenditure-on-standard-of-living-and-economic-growth-in-nigeria/osuagwu-felicia-obiageri