GOVERNMENT SECTORIAL EXPENDITURE ON POVERTY REDUCTION IN NIGERIA

Abstract

Nigeria is blessed tremendously and generously with huge economic resources such as crude oil, cocoa, rubber and gold, etc. Despite all these natural resources, it is really lamentable to see millions of Nigerians still living in absolute poverty in recent times. This paper examines the impact of government sectorial expenditure on poverty reduction in Nigeria using time series data over the period 1990-2021. Employing modem time series econometric techniques such as unit root tests, bound test co-integration approach and error correction techniques within an ARDL framework which yields more robust estimates. It is found that government spending on Agriculture and Education affect poverty rate negatively and significant. On the other hand Government spending on Community development also has a negative relationship with poverty. Findings emerge from this paper that government expenditure has significant short run and longrun impact on poverty reductions in its lag form in which it might be examined by the role of fiscal policy in alleviating poverty of current year in Nigeria. The paper recommend more funding in the Agriculture sector should be directed toward the provision of machinery, seedlings, andfertilizer, increased production, the government should create an enabling market where farmers may sell their produce at a fair price, The federal government should raise its education budget to provide educational materials, equipment, and a welcoming atmosphere for both staff and students, as well as improve skill acquisition equipment in technical schools to promote human capital development and self¬ employment, The federal government should raise its education budget to provide educational materials, equipment, and a welcoming atmosphere for both staff and students, as well as improve skill acquisition equipment in technical schools to promote human capital development and self¬ employment.