Effect of Fiscal Policy on Economic Growth of Nigeria (1987 - 2023)

Student: George Chibuike Okoye (Project, 2025)
Department of Banking and Finance
Chukwuemeka Odumegwu Ojukwu University, Uli, Anambra State

Abstract

Fiscalpolicyisthemeansbywhichagovernmentadjustsitslevelofspendingtomonitorand ThusthisstudyexaminedtheeffectoffiscalpolicyoneconomicgrowthinNigeria.The independentvariablesaregovernmentexpenditure,governmentrevenueandpublicdebtas povertylevels,highandsustainableeconomicgrowth,favorablebalanceofpayment,and reductioninanation'sdebt.Itisexpectedthatawellmanagedfiscalpolicywillenhancegrowth. Thespecificobjectivesaretodeterminetheeffectofgovernmentexpenditureoneconomic growthinNigeria;toascertainhowrevenueaffectsthegrowthoftheNigerianeconomy;andto ThemethodofdataanalysiswasmultipleregressionusingtheOrdinaryLeastSquare(OLS) publicdebthaspositiveandsignificanteffectonGDP.Thestudyconcludesthatfiscalpolicyisa shouldincreaseherexpendituretostimulatetheeconomywhileatthesametimereducingthe proxiesforfiscalpolicywhileeconomicgrowthwasrepresentedbyGrossDomesticProduct. examinetheeffectpublicdebtoneconomicgrowthinNigeria.Threeresearchquestionsand veritabletoolforenhancingNigeria'seconomicgrowth.Thestudyrecommendsthatgovernment influenceanation'seconomy.Thegoalsincludepricestability,fullemployment,reductionof regressiontechnique.Thefindingsshowedthatgovernmentexpenditurehaspositiveand threehypothesesweredeveloped.Thedatacoveredaperiodof36yearsspanning1987to2023. significanteffectonGDP,governmentrevenuehaspositiveandsignificanteffectonGDPand quantumofpublicdebtwhichaffectseconomicgrowthnegatively.

Keywords
effect fiscal policy economic growth nigeria
Filters
Institutions