The Impact of Fiscal Policy on Inflation in Nigeria (1990–2022

Student: Isaac Oluwabamidele Balogun (Project, 2025)
Department of Economics
Ekiti State University, Ado-Ekiti, Ekiti State

Abstract

This study examines the impact of fiscal policy on inflation in Nigeria from 1990 to 2022 using data from the Central Bank of Nigeria and the National Bureau of Statistics. The study applied the Autoregressive Distributed Lag (ARDL) model to evaluate short- and long-run relationships among government expenditure, taxation, public debt, and inflation. Findings revealed that inflation negatively affects economic growth, while government expenditure and revenue have insignificant long-run impacts. The study recommends prudent fiscal management, diversification of government revenue, and efficient public spending to promote macroeconomic stability and sustainable growth.

Keywords
fiscal policy inflation economic growth Nigeria government expenditure taxation public debt ARDL model macroeconomic stability Central Bank of Nigeria
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