Defence Expenditure and Economic Growth in Nigeria (1981-2011)

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The actual relationship between defence expenditure and economic growth is not well understood and there is need for more empirical research on the relationship especially in Nigeria.

This study provides evidence that defence expenditure can be a mechanism for the promotion of economic growth as well as a mechanism for the resolution of social and economic issues of security, poverty reduction, income disparities, unemployment, social conflicts and health care, among others.

It is bore out of the fact that it is difficult to say whether the ever increasing rate of defence expenditure over the years has impacted positively or negatively on the economic growth in Nigeria.

It has shielded strong light about the long-run and short-run relationship between defence expenditure and economic growth in Nigeria (positive).

The study is of importance to both government and entire citizens and recommended increase of government spending on productive defence expenditure, adequate utilization of funds made to the defence sector and reduced spending on protective defence expenditure without wastage.

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