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.
