Economic growth in Nigeria drives government spending, impacting revenue sustainability.
The study tested Wagner's theory on government spending in Nigeria. They used data analysis to see if economic growth affects government spending. The results showed that economic growth does lead to more government spending in the short term. However, after four years, the impact of economic growth on spending starts to slow down. The study suggests that investing in infrastructure and income-generating projects can help sustain government revenue in the face of increasing spending.