Government expenditure on key sectors of the economy and stock market performance in Nigeria

Purpose — This study examines the effect of Government Expenditure (GE) on key sectors economy and Stock Market Performance (SMP) in Nigeria.Method Statistics Bulletin published by Central Bank Nigeria (CBN) was utilized as source for time series data between 1980 2021. SMP is proxied with MCAP ASI while expenditure agriculture, defense, education, health formed components government expenditure. The FM-OLS ARDL methodology were adopted to determine GE's short long-term impact Nigeria. ADF unit root testing, correlation analysis, Engle Granger co-integration preliminary descriptive statistics testing all carried out.Result outcome indicates that through long term, GE defense agriculture have significant influence run via channel. significantly affects Hence, this concludes are determinants explaining spending magnitude a function stock market proxy used.Contribution provides empirical evidence performance using two proxies (market capitalization share index) longrun.