MILITARY EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA

MILITARY EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA

Author by Dr. Esther Lawal

Journal/Publisher: Uniport Journal Of Business Accounting And Finance Management

Volume/Edition: 12

Language: English

Pages: 50 - 58

Abstract

The study investigated the relationship between military expenditure and economic growth in Nigeria from 1981 – 2019. Secondary data from CBN statistical bulletin and World Bank database for real GDP (gross domestic product), Gross fixed capital formation, military expenditure was applied were analyzed using the Vector Error Correction Model (VECM). Two dummy variables were also used to model the period of military regime and Boko-Haram terrorist activities in Nigeria. Military expenditure has a negative effect on economic growth in Nigeria. The study also revealed that Boko-haram activities in Nigeria has drastically reduced growth in Nigeria. Results also showed that when Nigeria was under military regime affected economic growth negatively. The study, recommends strategic ways of spending funds allocated for military activities and ways to ensure security in Nigeria to enable economic growth.    Nigeria should also try to start producing armament so that importing of military wares to save resources for development of other sectors of the economy. The military should stay out of Governance role and focus on protection of Nation boundaries from internal and external confrontation.


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