Public Sector Expenditure and Environmental Quality in Nigeria: The Moderating Role of Corruption
1 Department of Economics and Development Studies Northeastern University Gombe, Nigeria
2 Adamawa State Polytechnic Yola Nigeria
3 Department of Economics and Development Studies Northeastern University Gombe Nigeria
* Corresponding author: salisu.ahmadu@neu.edu.ng
2 Adamawa State Polytechnic Yola Nigeria
3 Department of Economics and Development Studies Northeastern University Gombe Nigeria
* Corresponding author: salisu.ahmadu@neu.edu.ng
Abstract
This study examines the influence of public
sector expenditure on environmental quality in Nigeria, with particular
attention to the moderating role of Control of Corruption. Annual time-series
data covering the period from 1996 to 2023 were obtained from relevant national
and international sources. The explanatory variables utilized were public
sector expenditure, Control of Corruption and GDP per capita, while carbon
dioxide (CO₂) emissions were used as a proxy for
environmental quality. Preliminary tests, including unit root and cointegration
tests, were conducted before estimating the Autoregressive Distributed Lag
(ARDL) model. The unit root results indicate that all the variables are
integrated at the first difference, I(1), and none is integrated at the second
difference, I(2). The ARDL bounds test confirmed the existence of a long-run
relationship among the variables. The long-run estimates indicate that public
sector expenditure has a negative and statistically significant effect on CO₂ emissions. Similarly, Control of Corruption has
a negative and statistically significant effect on CO₂ emissions, indicating that stronger control of
corruption is associated with lower CO₂ emissions. However,
the interaction between public sector expenditure and Control of Corruption has
a positive and statistically significant effect on CO₂ emissions, confirming that Control of
Corruption significantly moderates the relationship between public sector
expenditure and environmental quality. In the short run, public sector
expenditure and Control of Corruption also exert negative and statistically
significant effects on CO₂ emissions, while
their interaction remains positive and significant. The error correction term
is negative and statistically significant, indicating that approximately 80.7%
of short-run disequilibrium is corrected within one period. The study concludes
that public sector expenditure is associated with improved environmental
quality as measured by CO₂ emissions, while
Control of Corruption significantly conditions the relationship between public
sector expenditure and environmental quality. The study therefore recommends
stronger transparency, accountability and anti-corruption mechanisms, alongside
the efficient allocation of public sector expenditure towards environmentally
sustainable programmes
Keywords
Public Sector Expenditure
Environmental Quality
Corruption
CO₂ Emissions
ARDL
Nigeria
How to Cite
Ahmadu, S., Augustine, H. S., & Mohammed, S. (2026). Public Sector Expenditure and Environmental Quality in Nigeria: The Moderating Role of Corruption. Impressive Journal of Management and Social Sciences, 3(2), 122 - 140.
S. Ahmadu, H. S. Augustine, and S. Mohammed, "Public Sector Expenditure and Environmental Quality in Nigeria: The Moderating Role of Corruption," Impressive Journal of Management and Social Sciences, vol. 3, no. 2, pp. 122 - 140, October 2026.
