IMPACT OF GOVERNMENT EXPENDITURE ON POVERTY REDUCTION IN NIGERIA (1990-2024)

ABSTRACT This study examined the government expenditure and poverty reduction nexus in Nigeria for the period of 1990-2024. Annual time series data were sourced from world development indicators (WDI) 2024. Using autoregressive and distributed lag (ARDL) model techniques, the result indicate that, the coefficient of government expenditure has a negative and statistically significant impact on poverty in both short and long run indicating that the coefficient of government expenditure has a positive effect on poverty reduction in Nigeria. The relationship is at 10% level of significance as a percent change in government expenditure is associated with 0.053135 increases in poverty in the long run equilibrium. The study further revealed that, increase in Nigeria’s inflation is associated with 15% increase in country’s poverty rate as shown in the estimated result. The relationship is at 10% level of significant.. In line with drawn conclusion, the study recommended that: Government should spend more on social investment programmes that deal poverty alleviation and employment generation. These will significantly contribute in curving country rate of poverty and boost economic growth. Policy makers should create a sound policy aimed at reduction population growth and provide job opportunities to existences population. Government should create a policies and programmes that spend more to finance educational sector.