Fiscal Policy Implementation and National Economy: The Nigerian Experience

Vollständiger Abstract

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This study assessed the effect of fiscal policy implementation on the Nigerian economy, using time series data within the period 1990 to 2023. Economic downturn, poor living standard, inadequate employment generation and increasing unemployment rate are a source of concern and worry. There seem to be challenges with getting the right fiscal policies in place that will help the economy thrive as expected. The specific objectives were to: examine the effect of government capital expenditure (GCE); government recurrent expenditure (GRE) and government total revenue (GTR) on gross domestic product of Nigeria. The ex-post-facto research design was employed at 5% significance level. The data for the study were obtained from Central Bank of Nigeria statistical bulletin (2023) and were analyzed using descriptive statistics aided with unit root test and multiple regression analysis. The findings showed that GCE had significant effect; GRE had significant effect while GTR had non-significant effect on gross domestic product of Nigeria for the period reviewed. The adjusted R2 value showed that about 97% of changes in the dependent variable can be accounted for by the independent variables. The study concluded that fiscal policies contribute to gross domestic product of Nigeria. It was recommended amongst others that the government should expand her revenue base and ensure funds are put in productive sectors so as to help grow the gross domestic product of Nigeria economy