GOVERNMENT EXPENDITURE AND INFLATION RATE IN NIGERIA: A DISAGGRGATED ANALYSIS

Abstract

In this research, the  impact of government spending on inflation rate in Nigeria is examined, within the time space of 1986 to 2023. Data for the analysis were gotten from CBN statistical bulletin. Inflation rate (INF) was used as an explained variable while the explanatory  variables for government expenditure are government expenses on healthcare, education, agriculture, infrastructure and  security. Consequently, this research adopted Ex-Post Factor research design where Dynamic ARDL model simulation was engaged as the research tecnique, specifically to determine the short and long rum dynamism of the parameters of interest. The outcomes revealed that: government spending on healthcare, infrastructure and internal security had inverse and important impact on inflation rate in Nigeria, while that of agriculture and education had negative impact on inflation rate, but statistically not significant,. Stem from the outcomes, the work recommends that the government of Nigerian  should be efficient and transparent enough in accelerating her expenditure, by making sure that it is channeled towards amentaceous aspects such as  human capital development which can lead to the promotion of  long-term economic expansion, thereby emasculating the rate of inflation in a  significant manner.