MONEY SUPPLY, GOVERNMENT EXPENDITURE AND POVERTY ALLEVIATION IN NIGERIA


AKPAN, James Essien
Department of Economics
Nigeria Police Academy, Wudil, Kano
jamsakpan@gmail.com
YUNANA, Titus
Department of Economics
Nigeria Police Academy Wudil, Kano
akuty02@gmail.com
BROWN, Uduak Akpanabbah
Department of Economics
College of Science and Technology,
Nung Ukim Ikono, Akwa Ibom State
udyabb@gmail.com

ABSTRACT
The study focused on effect of money supply and government expenditure on poverty reduction in
Nigeria from 1981 to 2019 (30 years span). The study acquired statistical data on government expenditure
on health, agriculture, transportation, education, and broad money supply from the Central Bank of
Nigeria’s annual statistical bulletin for the year 2019. Poverty reduction was regressed as the dependent
variable in the model to represent the degree of influence the independent factors have on poverty
reduction. The empirical results reveal that there is no long-run link between them, hence we offer the
estimated results in their differenced forms. The study also determined that government expenditure on
agriculture has a tendency to reduce poverty in the country. The study concludes that increase in
government agricultural expenditure would result in poverty reduction in Nigeria. The study therefore,
recommended that government at various levels in the country should increase agricultural financing
because of its effect on poverty reduction; and that government facilitate educational expenditure and
implement education related expenses in the country.
Keywords: Poverty reduction, education, agriculture, transport, broad money supply, health.

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