The Assessment of the Effect of Public Budget as An Economic Tool for Corporate Investment in Nigeria

Abstract

This study investigates the impact of public budgeting as an economic tool for promoting corporate investment in Nigeria, using data spanning 1990 to 2023. Employing the auto-regressive technique, the study analyzes the dynamic relationship between public budgeting and corporate investment. Data for the research were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, ensuring reliability and consistency. The findings reveal that public budgeting significantly influences corporate investment, serving as a critical driver of economic growth and development. Specifically, the study highlights that well-structured public budgets, focused on investment, can create a conducive environment for attracting domestic investment and foreign direct investment (FDI). Based on these findings, the study recommends that the government prioritize investment-focused budgeting to stimulate economic activity and growth. Additionally, laws governing investments should be reformed to become less stringent and more investorfriendly, thereby encouraging both domestic and foreign investors to engage in the Nigerian economy. The study contributes to the literature by emphasizing the strategic role of public budgeting in fostering corporate investment and economic development, providing valuable insights for policymakers and stakeholders.