Components of government spending, social welfare and economic performance in Nigeria

This paper examines the relationship between government expenditure components and economic performance in Nigeria with emphasis on the subsequent effect on per capita income. The study used data from 1970–2011 and employed an Engel-Granger Cointegration test. The study's findings indicate that government expenditure on social and community services and transfer payments enhance real per capita income significantly. Also, government's spending on social and community services and government spending on transfer payments are partially statistically significant on enhancing and promoting social welfare proxied by real per capita income while government spending on economic services and population growth was found to have an insignificant effect on real per capita income in Nigeria. A policy implication of this is that appropriate reforms aimed at ensuring efficient and effective use of government expenditure would enhance socio-economic performance of the Nigerian economy.