Title:
Government Expenditure, Budget Transparency and Human Development Infrastructure in Nigeria

Authors:
Desi Augustine, Festus Folajimi Adegbie, Ogundajo Grace Oyeyemi, Nigeria

Abstract:

This study investigated the effect of government expenditure and budget transparency on human development infrastructure in Nigeria. The study employed a sample size of 36 years of time series data from the period of 36 years covering from 1988 to 2023 fiscal years. Data were extracted from the World Bank's World Development Indicators (WDI), African Infrastructure Development Indicators (AIDI) on the state of national infrastructure development as of December 2023, the Bureau of Statistics, the Central Bank of Nigeria Statistical Bulletin, and the Nigerian Exchange Group (NGX). The result of the estimation using the Autoregressive Distributed Lag Model (ARDL) showed that government expenditure on livestock and agriculture (LGXLA) has a mixed effect on the Human Development Infrastructure (HDI), with short-term fluctuations but an insignificant long-run negative impact. Government expenditure on education (LGXED) positively influences the short and long run, though its statistical significance varies. Similarly, government spending on telecommunications (LGXTC) does not enhance HDI in the long run, while its short-run effects are mixed. Conversely, the impact of government expenditure on road construction (LGXRC) is largely insignificant. The budget transparency (open budget) had the strongest long-run positive effect on HDI, while the error correction term (CointEq(-1)) was negative and statistically significant. The study recommended that Ministry of Finance should prioritize optimal government expenditure and budget transparency to enhance human development infrastructure in Nigeria.

DOI: https://doi.org/10.51505/IJEBMR.2025.9508