article · WORLD JOURNAL OF FINANCE AND INVESTMENT RESEARCH
Analysis of Nigerian economic data from 1990 to 2023 reveals that public budgeting significantly influences corporate investment, acting as an essential driver of broader economic growth and development. Using an auto-regressive method on records from the Central Bank of Nigeria, the investigation demonstrates that structuring public budgets towards investment fosters a favourable climate for domestic enterprises and foreign direct investment. To maximise these economic benefits, fiscal authorities need to design national expenditure plans that explicitly prioritise capital development. Furthermore, legal frameworks governing business ventures should be revised to remove stringent barriers and establish more welcoming conditions for private capital. Aligning public spending priorities with enterprise incentives creates vital opportunities to expand commercial activity across the national economy.
Public expenditure shapes the business environment in emerging markets. When governments design budgets that actively support commercial activity rather than purely administrative overheads, domestic companies can expand and international investors gain confidence. Understanding this relationship helps ensure national financial planning translates into industrial growth and broader economic stability.
The findings provide macroeconomic guidance for finance ministries, development agencies, and corporate strategists seeking to align fiscal planning with private sector growth. While the research does not describe a direct technology or commercial product, it offers applied policy evidence that can inform investment promotion programmes and regulatory reforms designed to unlock commercial capital.
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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.
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DOI: 10.56201/wjfir.v9.no1.2025.pg15.37
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