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Moderating Effect of Public Debt on Protective Expenditure and Economic Growth of Nigeria

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  • OJO, Oladele Oladipo, PhD

    (Department of Accounting Nasarawa State University, Keffi)

  • CHUKWUMA, Obumneme Eugene

    (Department of Accounting Nasarawa State University, Keffi)

  • Prof. Suleiman. A. S Aruwa

    (Department of Accounting Nasarawa State University, Keffi)

Abstract

This study evaluated the moderating effect of public debt on productive expenditure and economic growth in Nigeria for the period of thirty one years, from 1993-2023. Ex-post facto research design was adopted. Administrative expenditure and transfer payment are proxies for protective expenditure while real gross domestic product is indicator of economic growth. The data used in this study were secondary data derived from the Central Bank of Nigeria Statistical Bulletin while public debt data was sourced from Debt Management Office Annual Reports. The study used multiple regression analysis. The regression result revealed that administrative expenditure has positive significant effect on economic growth but when moderated by public debt showed significant influence on economic growth in Nigeria. Meanwhile, transfer payment has no significant effect on economic growth but when moderated by public debt revealed an insignificant effect on economic growth in Nigeria. The study concluded that administrative expenditure affect economic growth while, transfer payment has no effect on economic growth. The study recommended that Government should direct more of its protective expenditure towards administrative expenditure as they accelerate economic growth. Also, proper management of public funds allocated to the administrative operations as they have the potential of raising the nation’s production capacity and providing employment for citizens in the country.

Suggested Citation

  • OJO, Oladele Oladipo, PhD & CHUKWUMA, Obumneme Eugene & Prof. Suleiman. A. S Aruwa, 2024. "Moderating Effect of Public Debt on Protective Expenditure and Economic Growth of Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(15), pages 372-385, October.
    • Handle: RePEc:bjc:journl:v:11:y:2024:i:15:p:372-385
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    References listed on IDEAS

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