ABSTRACT

 This study provides empirical analysis ofthe impact offiscal policy on economic growth in Nigeria. Time series data from 1990 to 2018 relevant to the study were collectedfrom the Central Bank ofNigeria statistical bulletin, Volume 29. The ordinary least square method of multivariate regression was utilized in analyzing the log-linearized Model. The Augmented Dickey-Fuller unit root test was employed to establish the stationarity ofthe variables while the Johansen cointegration test and vector error correction mechanism (VECM) was usedfor testingfor the existence oflong-run and short-run equilibrium conditions. The findings were that, there is evidence oflong-run equilibrium relationship betweenfiscalpolicy and economic growth in Nigeria during the period studied. The adjusted R2 value of 0.667723 showed that about 66.77% ofthe total variation in the real GDP is explained by the independent variables included in the model. Specifically, capital expenditure and tax revenue had positive and insignificant impact on economic growth ofNigeria while recurrent expenditure had negative andsignificant impact on economic growth in Nigeria. It is therefore recommended that among other things that, in fiscal policy making, Government ofNigeria enhance expenditures in productive and capital projects such as infrastructure, human capital development, etc. and ensure that the funds are properly utilized to ensure desired level of economic growth is attained.