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Differential Effects of Capital and Recurrent Expenditure on Household Welfare in Nigeria (1986-2025)

This paper examines the differential effects of capital and recurrent government expenditure on multidimensional household well-being in Nigeria over the period 1986-2025. A composite household well-being index is constructed using principal component analysis (PCA) of health, education, and living-standard indicators. Guided by Keynesian and Endogenous Growth theories and motivated by Nigeria’s oil-revenue-dependent fiscal structure, the study employs the autoregressive distributed lag (ARDL) framework to examine the short- and long-run effects of capital and recurrent expenditure separately.…

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