Abstract

This study investigates the impact of government spending on educational growth in Imo State, Nigeria, from 1990 to 2022. Using Gross Enrollment Ratio (GER) as a proxy for educational growth, the research employed an ex-post facto design and time series data sourced from the Central Bank of Nigeria. The analysis utilized Ordinary Least Squares (OLS) regression to evaluate the effects of Government Capital Expenditure (GCEX), Government Recurrent Expenditure (GREX), Household Income (HHI), and Capital Formation (CPF) on GER. The findings reveal a complex relationship: both GCEX and GREX had a negative and statistically significant relationship with GER, contradicting a priori expectations. Household Income (HHI) also showed a negative and insignificant effect. In contrast, Capital Formation (CPF) demonstrated a strong positive and significant impact on educational growth. The model exhibited a high explanatory power (R² = 0.997). The study concludes that while government spending components have not yielded the expected positive outcomes, capital formation is a critical driver. Recommendations include a strategic re-evaluation of education fund allocation to enhance efficiency, increased investment in educational infrastructure (capital formation), and policies aimed at boosting household income to improve private investment in education.