Macroeconomic Outcomes of Nigeria’s Infrastructural Investment

Introduction: The performances of any economy are reflected by Macroeconomic Outcomes/ Indicators (MO) especially by way of Public Infrastructures Investment (PII) expenditure both proxy by inflation, unemployment and interest rates, and income per capital and public capital expenditure respectively in this study. However, the responsiveness of MO to PII in Nigeria has been vague outcomes such as in income per capital, increasing inflation and unemployment rates that apparently contradict neoclassical theoretical economic thoughts. Objective: This study set out to examine the casual effects and relationship between PII and the selected related macroeconomic outcomes in Nigeria. Research Methodology: Using time series data between year 1990-2020 and adopting econometric techniques such as co-integration by Bound test approach of Autoregressive Distributed Lagged (ARDL) and pairwise causality test for its analysis. Findings: The study revealed that PII has no significant long run relationship or casual effect on macroeconomic outcomes evident in the negatively significant and positively insignificant relationship between public capital expenditure, unemployment and interest rates, and no causality between public capital expenditure, inflation rate, and income per capita. Conclusions & Policy Recommendations: Based on these findings, it concludes that neoclassical theoretical economic thoughts is in abeyance in Nigerian economy and recommends increased and focused capital investment expenditure to infrastructures development in order to stimulate favorable macroeconomic outcomes and enhance economic performance of the economy and welfare of Nigerians because of the increasing centrality of infrastructures to attaining sustainable socioeconomic development of economies and future economic objectives in developing nations like Nigeria.