GOVERNMENT UTILITY INVESTMENT AND CONSTRUCTION INDUSTRY CONTRIBUTION TO GROSS DOMESTIC PRODUCT (GDP) IN NIGERIA

Purpose: This study investigated the impact of the Nigerian government’s capital expenditure in utility development over two consecutive decades, on the construction industry’s contribution to Gross Domestic Product (GDP). Design/methodology/approach: The levels of the Nigerian government’s expenditure on the development of utilities between 1999 and 2019 and the contribution of the Nigerian construction industry to GDP were evaluated. The impact of the former on the latter was also assessed. Data on government capital expenditure on power and water and the construction industry’s contribution to GDP were sourced through secondary means. The data were analysed using descriptive and inferential statistics using Spyder software, version 3.7.3. Findings: The findings of the study offered prediction graphs forecasting the future behaviour of capital expenditure up to the year 2025. The result equally showed that the contribution of the construction industry to GDP from the year 2000 to 2019 increased continuously. The regression coefficient (R2) between capital expenditure on power and water, and the construction industry’s contribution to GDP was 0.986. Research limitations/implications: The limitations include the use of only two types of utility to determine the contribution of the construction industry to GDP. The contribution to knowledge is that this study unearths the impact of the selected utilities on the construction industry’s contribution to GDP. Practical implications: It was concluded that the impact of the government’s investment in the development of utilities between 1999 and 2019 on the construction industry’s performance within the years under review was significant. The study recommended improved government investment in utility development to enhance the construction industry’s contribution to GDP, thereby improving its performance. Originality/value: This study revealed the contribution of the construction industry to the national gross domestic product (GDP) and the Nigerian economy at large. The government investment in utility [the capital expenditure on power (GEOP), and the capital expenditure on water (GEOW)] carries a significant impact on the construction industry’s contribution to the GDP (CICGDP) in Nigeria.