Interrogating Fiscal Policy for National Economic Growth and Development in Nigeria

Abstract

This paper explored the role of fiscal policy in driving
national economic growth and development in Nigeria
through the lens of the Structuralist theory of fiscal policy.
The paper identified the strengths and weaknesses of
fiscal policies within the context of Nigeria's unique
economic structure, marked by its dependence on oil
revenues, and highlighted the challenges posed by
external factors like global market volatility and internal
issues such as lack of public accountability and
corruption. The paper found that despite the lessons we
ought to have learnt from previous overreliance on oil
during the post-independence period, successive
democratic administrations in Nigeria continued to
depend heavily on oil revenues. It concluded by offering
policy recommendations that align with the structuralist
perspective to foster inclusive growth, reduce economic
disparities and to enhance sustainable development in
Nigeria. The study recommended amongst others that
Nigeria government should discontinue the use of
external debt to finance budget deficit in the economy, but
look inward through sustainable internal revenue
generation, as well as embrace economic diversification
policies, coupled with a drastic cut down on cost of
governance in Nigeria.