Research Purpose: In the face of rising poverty in Nigeria, understanding the impact of government spending on education and agriculture is crucial for achieving Sustainable Development Goal One (SDG1) - ending poverty in all its forms everywhere. This study examines the effect of government expenditure on education and agriculture on poverty headcount ratio in Nigeria, providing valuable insights for policymakers seeking to effectively allocate resources and achieve SDG1 targets.
Methodology: Employing an ex-post facto research design, this study analyzed 23 years of data (2000-2022) sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicators. The study utilized Ordinary Least Squares (OLS) Multiple Regression to test the relationship between government expenditure on education and agriculture and the poverty headcount ratio.
Findings: The study revealed that education expenditure had a non-significant negative effect on poverty headcount ratio (p-value = 0.4861, t-statistic = -0.715357). Conversely, agricultural expenditure demonstrated a significant positive effect on poverty headcount ratio (p-value = 0.0329, t-statistic = 2.366469).
Conclusion: While education expenditure had no discernible impact on poverty reduction in Nigeria, agricultural expenditure was found to be significantly correlated with increased poverty. This suggests that current government spending on education may not be effectively targeted or implemented to achieve poverty reduction goals.
Recommendations: To improve the effectiveness of education spending, improvements in educational infrastructure, teacher training, curriculum alignment, technology integration, and scholarship programs are recommended. Furthermore, targeted policies aimed at supporting smallholder farmers, promoting technological adoption, ensuring market access, and investing in research and development are crucial for building a sustainable agricultural sector capable of contributing to poverty reduction in Nigeria.
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