Capital Expenditure and Real Sector Performance: A Financial Education Perspective

Abstract

This study investigates the link between government capital expenditure and real sector performance for financial education purpose in Nigeria, with emphasis on the agricultural and manufacturing subsectors from 1990 to 2024. Using annual time-series data from the Central Bank of Nigeria and applying ordinary least squares regression, the findings reveal that capital expenditure has a positive and statistically significant effect on both agricultural and manufacturing sector outputs. These results align with Keynesian and Endogenous Growth Theories, as well as empirical evidence from recent Nigerian studies, which emphasize the importance of targeted capital investment in infrastructure, education, and technology. The study concludes that sustained and well-implemented capital expenditure is essential for boosting real sector productivity, performance and recommends financial education on prioritizing capital projects, strengthening transparency and accountability, and ensuring complementary investments in human capital and infrastructure maintenance.

Keywords

• Capital Expenditure
• Real Sector Performance
• Financial Education

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