THE PATTERN OF FEDERAL GOVERNMENT EXPENDITURE ON ROAD CONSTRUCTION IN NIGERIA (1976 -1995)
THE PATTERN OF FEDERAL GOVERNMENT EXPENDITURE ON ROAD CONSTRUCTION IN NIGERIA (1976 -1995)
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Date
1999-02
Authors
OLAWALE, SALAMI SAHEED
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Abstract
The main purpose of this thesis is to validate Wagner's
law which states that as per capita income of a country rises,
its public sector will grow in relative importance. In
Nigeria, total government expenditure as a percentage of GDP
has risen several fold since 1970. However, expenditure on
road transport has either remained relatively constant or
declined as a proportion of GDP. This thesis found that
Wagner's law appears to hold in aggregate terms for the period
between 1976 and 1995 but most rapid expenditure increases
were generally in the social services and administration.
There was a declining share of the transport sector in the
total public sector investment. The proportionate
contribution of the road transport sector also declined
contrary to expectation. The income-elasticity of road
expenditure was less than one. There is no doubt that
expenditures were limited by the dwindling revenues
particularly from the oil sector.
Investment on road transport in terms of public
expenditure is a sine qua non for economic development.
However, in over two decades of public expenditure
programming, the goal of good road network all over the
country remains elusive and the development outlook continues
to be precarious. This thesis also examines the pattern of
Federal Government expenditure on road construction, the
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degree of government commitment to it's funding and the effect
of such expenditure on the country between 1976 to 1995.
Hence, the need to estimate it's determinants appropriately.
Several models are specified and estimated. The result
indicates a positive correlation between government
expenditure on road and population, Government Revenue,
Density, Total government Expenditure. The thesis concludes
that public expenditure management which recognises the unique
role of road transportation is required in order to ensure
that the sector obtains its right share of public financial
support and to promote economic development.
The thesis recommends that investment in critical
infrastructure like road development, should discontinue to
remain in public domain in the near future.
For the time being, priority should be given to
rehabilitating roads on the basis of their economic viability.
Those with high economic viability should be accorded priority
and completed expeditiously.
Description
A THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL
AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA IN
PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF MASTERS OF SCIENCE DEGREE IN
ECONOMICS, DEPARTMENT OF ECONOMICS
FACULTY OF SOCIAL SCIENCES
AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA
FEBRUARY, 1999
Keywords
PATTERN,, FEDERAL GOVERNMENT,, EXPENDITURE,, ROAD CONSTRUCTION,, NIGERIA