ABSTRACTThe study investigates the impact of government expenditure oneconomic growth of Nigeria from the period 1980-2011. Theobjective was set to address the problem of utilization of revenuetargeted to improving the economic condition of Nigeria. The reviewof theoretical and empirical literature provided a basis for theselection and specification of model which was used to show ifgovernment capital and recurrent expenditure has positive ornegative impact on economic growth. The data were got from CBNstatistical bulletin. To proper solution to the problem, policies wererecommended to tackle the setbacks to economic growth.