Public expenditure management as it presently prevails in many developing economies is still predominantly characterized by operational orthodoxy. This tends to result in dissatisfactory fiscal aggregations that fall quite short of critical macroeconomic expectations of these nations, including Nigeria. In this study, therefore, the focal predictor variable is public expenditure, while gross domestic product (GDP) and inflation rate are the criterion variables. The related financial time series (secondary data) required for analysis are contained in publications of the Central Bank of Nigeria (CBN). They are extracted, tabulated and subsequently subjected to regression analysis and Granger – causality test. Thereafter, the statistical outcomes logically highlighted and precisely discussed. Essentially, the study reveals divergent public expenditure tendencies with respect to GDP and inflation rate during the specified study period. The time frame spanning 37 years critically captures the vicissitudes of economic regulation and deregulation in Nigeria. The much-needed harmony and consistency in public expenditure efficiency, thus, call for strategic financial management (SFM) architecture since conventional/orthodox frameworks are often overwhelmed by peculiar economic circumstances, and Nigeria has got her fair share of these. With the corporate governance ideals of SFM, governmental authorities should ensure more transparent funds generation and more innovative funds utilization in the Nigerian economy. Public and private sector active players should partner to drive the SFM process in order to synergize funds deployment, infrastructure development in Nigeria, for greater global relevance and prominence.
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