ABSTRACT

The effectiveness of fiscal policy on the growth of Nigeria economy has been a thing of debate over the years. The objective of the research is to provide evidence for the effectiveness of fiscal policy on economic growth. The research covers a period of 1981 to 2015 and data was collected from CBN’s statistical bulletin. The result findings shows that fiscal policy instrument such as capital and recurrent expenditure cannot significantly explain economic growth. Also, recurrent expenditure shows an inverse relationship with growth meaning increase in recurrent expenditure will lead to a decrease in growth. Total Federal Collected Revenue (Taxes) significantly explained economic growth in Nigeria. In conclusion, the research work reveals that fiscal policy which has to do with manipulation of government revenue and taxes is not effective to the growth of Nigerian economy.