Volume 2 - Issue 2, March - April 2026

This study examined the relationship public expenditure and the sectoral performance of Nigerian economy from 1986 to 2023. Specifically, the study examined how government recurrent and capital expenditure influence service sector contribution to gross domestic product. Data utilized in the study were sourced from the Central Bank of Nigeria and World Bank statistical bulletins of various issues. The study utilized the descriptive, unit root, Johansen co-integration and the parsimonious ECM techniques at the 5% significant level. The study discovered that all the variables were stationary at first differences, requiring the Johansen co-integration technique that validated the presence of long-run form. The study revealed that both government recurrent and capital expenditure are positively related to service sector contribution to GDP; whereas, only the later is statistically significant. The study concluded that government capital expenditure is the significant aspect of public expenditure that promotes the Nigerian economy. The study recommended that the Federal Government of Nigeria should substantially augment capital investment in sectors directly associated with services, including ICT infrastructure, transport systems, power supply, and public health facilities.

ANWURI, Chisa Woke,"Public Expenditure in Nigerian Economy: A Sectoral Analysis" International Journal of Advanced Multidisciplinary Research and Educational Development, V2(2): Page(1213-1223) Mar-Apr 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.