PUBLIC EXPENDITURE AND QUALITY OF LIFE DYNAMICS: THE NIGERIAN PERSPECTIVE

Abstract

The persistent growth in public spending has not led to any improvements in welfare outcomes for the people, raising questions about the efficiency of fiscal policy in advancing HDI.  For this reason, this study examines the government expenditure and quality of life nexus in Nigeria over the period 1985–2024. The study examines social well-being through non-income indicators, which include life expectancy at birth, school enrollment, and poverty rate. After testing the unit root test with ADF, PP, and KPSS tests. The ARDL analysis showed that government spending in 
Nigeria created a direct connection between government expenditure and quality of life improvements. The study found that capital expenditure positively impacts life expectancy and school enrollment, while recurrent expenditure showed inconsistent effects on the measured indicators. The results demonstrate that expenditure composition, together with execution efficiency, directly impacts welfare outcomes. The study concludes that Nigeria needs to shift its public funding toward social and infrastructure sectors, which will produce better results when combined with enhanced fiscal control and accountability systems.