The Impacts of Infrastructure Financing on Economic Growth in Nigeria (1991-2021): An Expository Approach
Abstract
This study investigated the impact of infrastructure financing on economic growth in Nigeria for the period 1991-2021. The specific objectives of the study were: to investigate the impact of government economic infrastructures spending on the growth of real gross domestic product in Nigeria, to determine the impact of government social infrastructure spending on the growth of real gross domestic product in Nigeria, and to investigate the impact of deficit financing on the growth of real gross domestic product in Nigeria. The study used time series data sources from the CBN statistical Bulletin. The study adopted the ex post facto research design and employed the Vector Autoregression System Equation (VAR) method to analyze the results. The empirical result indicates that government economic infrastructure financing has no significant impact on economic growth in Nigeria; government social infrastructure financing significantly impacts on economic growth in Nigeria; and government capital expenditure significantly impacts on economic growth in Nigeria. The policy recommendations following the findings are: there is need for the government to embark on aggressive expansion programs on economic infrastructures; and there is need to ensure that infrastructures provided are accompanied by proper maintenance mechanism to ensure optimal functioning and benefits.
