Government expenditure in Nigeria had been increasing year in year out for the following reasons.
(i) Population growth: the need to provide more social amenities such as schools, hospitals, electricity, and roads for the rapidly increasing population had led to increase in government expenditure.
(ii) Expansion of the administrative machinery of the country: The increasing number of civil servants to be catered for and the adoption of the presidential system of government in Nigeria have led to large increase in the cost of administration.
(iii) Defence and national security: The urge to put in place a strong, efficient and well-equipped security machinery against external aggression had increased expenses on the Army, Navy, and Air force.
(iv) Economic Development: The need to pursue developmental projects on agriculture, industrialisation, provision of amenities like roads, electricity, hospitals, educational facilities have led to a huge increase in government expenditure.
(v) Maintenance of internal law and order: Government expenses on police force customs, immigration, prisons and the law courts have been increased So as to enforce laws and maintain peace.
(vi) Rapid increase in prices: the rate of inflation in Nigeria have been an astronomical hence rapid increase in government expenditure on projects.
(vii) Expenses to meet international obligations such as aids, grants and loans repayments to other countries have been increasing.
