Infrastructural Financing and Economic growth in Nigeria
Abstract
The study x-rayed the short and long-term impact of government infrastructural financing on Nigeria's economic growth. The study adopted time series data from central bank of Nigeria statistical bulletin from 1981 -2021. The variables of the study were Administration services (ADS), Economic Services (ECS), and Social& Community Services (S&CS), and Economic growth proxies as the gross domestic product(GDP). Ordinary least square(OLS) test, unit root test, co-integration test, error correction model, and granger causality test were all part of the study's methodology. All the variables used were stationary at 1(1) using ADF test which aided the co-integration test. The OLS test result and test (ECM) yielded almost the same result. The results of show evidence of interrelationship among the variables with gross domestic product in Nigeria but with the exception of S&CS. Furthermore, the speed at which gross domestic product disequilibrium is being corrected is 36.22%, while the granger causality test result fail to promote/ influence each other in output growth but surprisingly Administration services flow to Social Community services directly , acknowledging that increase in administration Services promote the activities of social and Community services. Hence recommended that Nigerian government should inject more funds in infrastructural projects especially in Economic services and Administration services since they are capable of propelling the economy carefully monitor all the projects especially the Social and Community Services projects to ensure that the services centre optimised the resources allocated to them efficiently. Ensure consistency in budget allocation, management and implementation.
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