Public Expenditure and Inflation in Nigeria

This paper empirically examined the effect of public expenditure on inflation in Nigeria from 1981 to 2018. The study adopts descriptive statistics, Co-integration and Error Correction Mechanism techniques for analysis. data empirical analysis were sourced secondary sources like CBN Statistical Bulletin. results indicated that a long run relationship exists among variables. Furthermore, revealed government transport communication (XTCM) has positive but insignificant with (CPI) at 5 percent level; defense (XDFS) is an Nigeria; agriculture (XAGR) negative education (XEDU) health (XHLT) Nigeria. Based above findings, recommends as follows: Government should be effective channeling funds productive economic activities, which will enhance price stability Also, consumption spending well coordinated by all arms prevent “Crowd out” investment.