Global Journal of Economic and Finance Research

This study investigates the effects of public investment in transportation infrastructure on economic growth in Nigeria over the period 2000–2024. The dataset is sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, National Bureau of Statistics (NBS), and the World Development Indicators (WDI, World Bank) Real Gross Domestic Product (RGDP) is employed as the dependent variable, while public investment in transportation infrastructure (PITI), road construction expenditure (RCE), total capital expenditure (TCE), and inflation (INF) serve as the explanatory variables. Anchored on the Keynesian multiplier theory, the study adopts the Autoregressive Distributed Lag (ARDL) model, following preliminary descriptive, correlation, and unit root tests. The empirical findings reveal that public investment in transportation infrastructure has a positive and statistically significant long-run effect on economic growth, while road construction expenditure and total capital expenditure exert positive but statistically insignificant effects. Inflation shows a negative but insignificant relationship with growth. The short-run results indicate delayed adjustment effects, with the error-correction term confirming a stable convergence to long-run equilibrium. Diagnostic tests show no evidence of serial correlation, heteroskedasticity, misspecification, or model instability. The study concludes that sustained and efficient investment in transportation infrastructure is crucial for long-term economic growth in Nigeria. It recommends improved project execution, macroeconomic stability, diversification of transport infrastructure, and stronger governance mechanisms to enhance the growth impact of public spending.

Transportation infrastructure, public investment, economic growth, capital expenditure, ARDL, Nigeria

1. Abere, B. O., & Emoabino, M. (2025). Transport Infrastructure, Foreign Direct Investment and Economic Growth in Nigeria. Direct Research Journal of Management and Strategic Studies, 6(1).
2. Adebosin, W. G., Salami, L. A., & Saula, D. T. (2022). Investment in Road Transport Infrastructure and Economic Growth in Nigeria: A Vector Error Correction Model Approach. Journal of Economics and Allied Research, 7(2), 81–92.
3. Akomolehin, O. F. (2025). Optimizing Public Infrastructure Investment: Evaluating Government Expenditure Efficiency and Economic Growth in Nigeria (1999-2022). www.ijisrt.com.
4. Aschauer, D. A. (1989). Is public expenditure productive? Journal of Monetary Economics.
5. Barro, R. J. (1990). Government spending in a simple model of endogenous growth. Journal of Political Economy, 98(5), S103‑S125.
6. Cai, F., & Roulleau‑Pasdeloup, N. (2023). Simple analytics of the government investment multiplier. ArXiv. https://arxiv.org/abs/2302.11212
7. Damilola, S.F., Pedro-Itota, O.O. & Olufemi, O.G. (2023). Effect of Infrastructure Development on Nigerian Economy. West African Journal of Interdisciplinary Research, 1(3), 11-20.ISSN: 3027-1878 Volume 1, Issue 3.
8. Dimnwobi, S., Nwokoye, E., Ekesiobi, C. & Igboanugo, C. (2017). Transportation Infrastructure And Diversification Of Nigeria’s Economy: Implications for the Developmental State. Nigerian Journal of Economic and Social Studies. Vol. 59, No. 3
9. Edobor, A. T., Francis, A. A., & Joseph, M. I. (2023). Impact of Economic Infrastructure Investment on Economic Growth in Nigeria. Journal of Agripreneurship and Sustainable Development, 6(4), 165‑175. https://doi.org/10.59331/jasd.v6i4.583
10. Enya F.O., Ezeali B.O. (2021), Public Investment in Infrastructure and Economic Growth in Nigeria (1980-2020). African Journal of Economics and Sustainable Development 4(3), 1-22. DOI: 10.52589/AJESD0JM1VBER.
11. Giwa, O. M., Olorunnimbe, R. O., Fagbenro, A. H., & Oguntimehin, (2022). Road Transport Infrastructure Planning Study: Panacea for Nigeria Economy Development. Developing Country Studies, 12(4).
12. Idiong, E. & Essien, K. (2023). Road Infrastructure and Socio-economic Transformation in Akwa Ibom State, Nigeria. International Journal of Economic Development Research and Investment. Volume 13, Number 1; ISSN(p): 2141-6729 ISSN(e): 2795-3009
13. Nairametrics (2024). Nigeria’s public infrastructure investment fails to match population growth of 2.5% P/A. nairametrics.com
14. Nigerian Institution of Highway and Transportation Engineers (2025). Nigeria’s infrastructure stock remains below global standard. The Guardian Newspaper. www.guardian.ng/news
15. Ohalete, P., Anyanwu, K., & Azuka, S. (2023). The economic role of transportation infrastructure and investment in Nigeria. The Journal of Economics, Finance and Innovation, 308‑320.
16. Olaniyi, O., Tella, S., & Onanuga, A. T. (2024). Physical infrastructure and economic performance in Nigeria: A ridge regression analysis. Acta Universitatis Danubius. Œconomica, 20(1).
17. Oyesiku, O. O., Onakoya, A. B., & Folawewo, A. O. (2013). An Empirical Analysis of Transport Infrastructure and Economic Growth in Nigeria. Journal of Social Sciences, 2(6), 179-188. DOI:10.11648/j.ss.20130206.12
18. Saidu, I., & Ibrahim, A. (2022). Impact of public capital expenditure on economic growth in Nigeria. Lapai Journal of Economics, 3(1). https://doi.org/10.2022/lje.v3i1.36
19. Umoh, O., & Effiong, E. (2024). Evaluating the Contribution of Nigeria’s Transport Sector to Economic Growth from 1970–2023. Journal of Business and Economic Options, 7(3), 19‑25.
20. World Bank (2024). Nigeria to enhance road infrastructure to benefit four million in rural communities. worldbank.org