Social Services Expenditures And Economic Growth Of Nigeria

Abstract

This study examined the relationship between social services expenditures and Real Gross Domestic Product (RGDP) in Nigeria. The study objectives were to determine the effect of education and healthcare expenditures on RGDP. Secondary data collected from 1981 to 2020 (40 years) was used, and the statistical tool employed was multiple regression analysis. The hypotheses testresults revealed that education and health expenditures significantly affect Nigeria's Real Gross Domestic Product. Based on the findings, the health sector and education expenditures have proved vital for economic growth since they have a positive relationship with real gross domestic product in Nigeria. Therefore, we recommend that more public expenditures be allocated to improve health facilities and the education sector, as an educated and healthy mind will bea productive asset that would boost economic growthin Nigeria. A productive human capital is a requisite for economic growth and a nation's development. Evidence shows that education develops human capacity, which can drive the nation's economy. Thus, the government should prioritize education expenditure to achieve economic growth. This can be achieved by reviewing the current resources allocated to the education sector in Nigeria. Suppose the government can maintain a policy of constant increase in the budgetary allocation to the health sector; this will translate to a healthy nation and impact on the citizens.