THE IMPACT OF FISCAL POLICY ON THE STABILIZATION OF NIGERIAN ECONOMY

Abstract

The growth and development of the Nigerian economy has not been stable over the years as a result, the country’s economy has witnesses so many shocks and disturbances both internally and externally over the decades. The study examined the impact of fiscal policy measures on economic stabilization in Nigeria. Using the Ordinary Least Square (OLS) method, the study finds that of the four proxies of fiscal policy adopted by the study; only one (government oil revenue) is statistically significant. We therefore recommend diversifying the economy and creating conducive environment for small and medium scale businesses to thrive. This will not only increase our export earnings but also widen the tax net of the government.

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