The study looked at how government spending affects the creation of capital in Nigeria from 1981 to 2018. By using a statistical method called Ordinary Least Square Multiple Regression, the researchers found that public spending has a positive impact on capital formation in Nigeria. Specifically, spending on economic services, social and community services, and transfers all played a significant role in this relationship. The study suggests that monitoring public spending on administration is important to prevent misappropriation. Overall, the findings support the idea that increased government activities lead to more capital formation, according to the Law of increasing state activities by Wagner and others.