Fiscal policy measures and its implication on economic growth in Nigeria (2007-2017)

Abstract

The study analysed the impact of fiscal policy measures on the Nigeria economy. The broad objective of the study is to ascertain the impact of Fiscal Policy measures on economic growth in Nigeria from 2007 to 2017. Data used for the study were obtained from the Central Bank of Nigeria statistical bulletin. The data was subjected to pre-estimation test using the augmented dickey fuller technique. Ordinary least square regression technique was used in analysing the data. The findings of the study revealed that, there is an indirect relationship between total government expenditure and gross domestic product in Nigeria, just as there is also direct relationship between total government revenue and gross domestic product in Nigeria. The t-test conducted at five percent level showed that total government expenditure is statistically insignificant while fiscal deficit is statistically significant. The study recommended that fiscal deficits can be reduced if governments at all levels should step up their internal revenue generating capacity, reduce external borrowing, seek for debt reduction, repudiation, relief and  outright cancellation. This should be followed by efforts of governments to develop their respective domains in terms of productive public investments and policies that stimulate the private sector.

Keywords: Total Government Revenue, Total Government Expenditure, Fiscal Policy