GOVERNMENT EXPENDITURE AND UNEMPLOYMENT IN NIGERIA (1986 - 2024)
Abstract
The study investigated the effect of government expenditure on unemployment rate in Nigeria for the period 1986 to 2024. The dependent variable is unemployment rate and the independent variables include capital expenditure, recurrent expenditure and credit to the private sector. Data were sourced from the Central Bank of Nigeria (CBN) statistical bulletin and analyzed using the Error Correction Model (ECM). The estimated short run result revealed that capital expenditure has a negative and significant effect on unemployment rate while recurrent expenditure and credit to private sector have positive effects on unemployment rate. However, only credit to private sector significantly increased unemployment rate. The speed of adjustment for correcting disequilibrium from the previous year to equilibrium in current year is 28.53 percent as shown by the coefficient of ECM. The study concluded that while capital expenditure is a strong tool for reducing unemployment, recurrent expenditure remains ineffective, and private sector credit though theoretically a driver of growth may worsen unemployment when misallocated or poorly regulated. It is recommended that government should prioritize productive capital investments in infrastructure, recurrent expenditure should be restructured to fund capacity-building programs, training and credit facilities should be directed toward productive sectors.
This article is available as a PDF download
Published in RHEMA UNIVERSITY JOURNAL OF MANAGEMENT AND SOCIAL SCIENCES
ISSN: 979-37999
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
ASYMMETRICAL RELATIONSHIPS AND THE PRECARITY OF WOMEN AND GIRLS IN IGBO CULTURE
ADAKU A. UBELEJIT-NTE PhD
Apr 9, 2026
In Igbo culture, the intricate web of institutions, social relations, beliefs, values, and practices...
View ArticleQUALITY ASSURANCE MECHANISMS FOR EFFECTIVE UNIVERSITY ADMINISTRATION IN BAYELSA STATE,NIGERIA
ALFRED .SINGER .RAMONI., Prof. ALLEN A.AGIH
Feb 6, 2026
Quality assurance (QA) in higher education is a vital mechanism for maintaining academic standards, ...
View ArticleIMPACT OF CLASSROOM FACILITIES ON UNDERGRADUATE STUDENTS' ACADEMIC PERFORMANCE IN UNIVERSITIES IN BAYELSA STATE
EKUNE, KUROTIMI KALAIKE, KEREOTUBO, EBI EMMANUEL Ph.D
Jan 16, 2026
The research examined how classroom facilities influence the educational success of undergraduates i...
View Article