ABSTRACT

This study looked into the impact of government agricultural expenditure on economic growth in

Nigeria. Time series data were gathered from secondary sources on real GDP, government

agricultural expenditure, agricultural output and agricultural credit from the CBN statistical

bulletin covering the period between 1981 and 2019. Econometric methods such as Augmented

Dickey-Fuller unit root test, Johansen Co-integration test, Ordinary Least Squares method and

Granger Causality tests were used for data analysis. The study revealed that the overall model

was statistically significant at 5% level of significance. Agricultural output and agricultural

credit have a positive effect on economic growth whereas government agricultural expenditure

has a negative effect on economic growth. Therefore, the study recommends that budget

allocations to the agricultural sector should be closely monitored and ensured that they are

channeled into the right targets. The government should also put forth policies that will promote

good lending environment for agricultural related investments. Financial institutions should be

made more available in rural areas where most farmers reside.