EVALUATION OF AGRICULTURAL INFRASTRUCTURE EXPENDITURE FOR ECONOMIC GROWTH BY THE NIGERIAN GOVERNMENT
DOI:
https://doi.org/10.64415/jsri.v1i1.55Keywords:
Agricultural Infrastructure, Public Expenditure, Economic Growth, Government Investment, NigeriaAbstract
The development of agricultural infrastructure is widely recognized as a critical factor in fostering economic transformation and sustainable national growth. As a productive sector, agriculture contributes significantly to both microeconomic activities and broader macroeconomic performance. This study examined the effect of public expenditure on agricultural infrastructure on economic growth in Nigeria. Specifically, it investigated whether government spending on agricultural infrastructure has contributed meaningfully to the country's economic performance. The study utilized annual time-series data covering the period 1999–2022, obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin, CBN Annual Reports and Statements of Accounts, and the National Bureau of Statistics (NBS). Data analysis was conducted using descriptive statistics, the Augmented Dickey-Fuller unit root test, Johansen co-integration technique, and the Error Correction Model (ECM). The empirical findings revealed that government expenditure on agricultural infrastructure exerted a negative but statistically insignificant influence on economic growth during the period under review. Based on the findings, the study recommends the formulation and implementation of policies aimed at increasing the efficiency and effectiveness of agricultural infrastructure spending. Enhanced investment in rural infrastructure, irrigation facilities, storage systems, and agricultural support services is also advocated to strengthen the sector's contribution to long-term economic growth and development in Nigeria.
Keywords: Agricultural Infrastructure, Public Expenditure, Economic Growth, Government Investment, Nigeria.
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