Official Publication of Direct Research Journal of Social Science and Educational Studies: Vol. 10, 2022, ISSN 2449-0806
Direct Research Journal of Social Science and Educational Studies
Vol. 10(10), Pp. 157-165, December 2022
ISSN 2449-0806
DOI: https://doi.org/10.26765/DRJSSES10104125
Article Number: DRJSSES10104125
Copyright © 2022
Author retain the copyright of this article
This article is published under the terms of the
Creative Commons Attribution License 4.0.
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Full Length Research Paper
Government Performance and Economic Growth in Nigeria
Anidi, Praise
1
, Ekperiware, Moses C.
2
*, Adewusi, Adeyinka
1
, Oyetade, John A.
3
, Judith U.C.
Nwoke
4
, and Stephen Brass Ogullah
5
1
Department of Accounting and Finance, Caleb University, Lagos State, Nigeria.
2
Department of Economics, Caleb University, Lagos State, Nigeria.
3
Lagos State University of Science and Technology, Ikorodu, Lagos State, Nigeria.
4
Department of Finance, Thomas Jefferson University, Philadelphia, Pennsylvania, United State.
5
Department of Account, Faculty of Management, Ignatius Ajuru University of Education, Port Harcourt, Rivers State,
Nigeria.
*Corresponding Author E-mail: moses.ekperiware@calebuniversity.edu.ng
Received 5 November 2022; Accepted 20 December 2022; Published 22 December 2022
ABSTRACT: From the conceptual point of view, economic growth is an indicator of a county’s wealth increasing over time. A
positive economic growth has a positive impact on the national income of the country. The objective of this research is to examine
the impact of government performance on the economic growth in Nigeria. The study covered a period of 39 years; 1980 to
2019.The data analysis was done using descriptive statistics. The technique for data analysis used for the secondary data is Auto
Regressive Distributed Lag model (ARDL) with the aid of data treatment Augmented Dickey Fuller test (ADF). The study carried out
a unit root test, using ADF. The result of the test showed that Gross Domestic Product Growth Rate (GDP) is stationary at level;
while General Government Final Expenditure (GFE), Official Exchange Rate (OEX) and Inflation Rate (INF) are stationary at first
difference, meaning that they are integrated of order one. Findings from the research paper show that government spending has a
significant effect on inflation, unemployment, exchange rate; spending also has an effect on the economic growth of Nigeria.
Recommendation from the author includes the following: Firstly, policy makers should focus on maintaining inflation to a low rate.
Secondly, government should improve economic growth through price stability. Thirdly, monetary policy should be used to create
a favourable environment for investment. Lastly, policy makers should also keep exchange rate under control since they help to
mitigate negative economic growth and they contribute to economic growth since they are tied tightly to international trade and
investment.
Keywords: Government performance, economic growth, inflation rate
INTRODUCTION
Every country aims at achieving a considerable level of
growth and development within its gross domestic
product in the economy with government playing basic
roles in the stabilization, distribution and allocation of
resources where necessary. A country without
infrastructure (among several different factors) cannot
experience a meaningful economic growth and
development. Infrastructural growth is a major driver of
any nation’s economic growth process. Infrastructure is a
catalyst for public development like health care delivery,
transportation, education and food security (Babatunde
2018). Nigeria has an extensive infrastructure of roads,
railroads, airports, and multimedia communication
networks. The road system is by far and wide, the
foremost necessary part within the country's
transportation network, carrying 95% of all the nation's
product and passengers. Currently, several roads are in
disrepair due to poor maintenance and years of
significant traffic.
Government polices additionally do have an effect on
economic growth; a number of them embrace fiscal
policy, monetary policy and income gain policy. Fiscal
and monetary policies are the foremost used policies.
Fiscal policy is the means by which a government adjusts
its level of tax and influences a nation’s economy (Agu,
Okwo, Ugwunta, Idike 2015). This economic policy