Impact Assessment of Fiscal Policy and The Performance of Selected Macroeconomics Indicators in Nigeria

This study dealt with the effect of Fiscal Policy and the Performance of Selected Macroeconomics Indicators in Nigeria. Fiscal policy is used in gearing the economy towards achieving a variety of economic transformation such as economic development and growth, price stability, reduction in unemployment, external equilibrium as well as income redistribution. The study covered the period of thirty-one years (31) years from 1990 – 2021. It made used of the Ordinary Least Square estimation technique to estimate the relationships, due to the dynamic nature of the relationships, Autoregressive Distributed Lag Model (ARDL) is employed in the estimation of the model. The regression result shows that there exist a positive and a significant relationship between Fiscal Policy and macroeconomic variables in Nigeria. This is indicated by the goodness of fit of 99% growth in GDP and 94% respectively which is as a result of a change in the independent variables and remaining 1% and 6% is by the disturbance variables. The overall significance is measured by the value of the probability F-statistic which is 0.000000 and is less than 0.05 significant levels. The study concludes that The effects of fiscal policy and the performance of some selected macroeconomic indicators in Nigerian economic growth cannot be undermined since it is the main source of regulating the economy apart from monetary policy in Nigerian economy. The study recommends among other things that there is the need for government to formulate appropriate policy that could engender better and judicious used of Capital Expenditure to enhance the growth of the Nigerian economy and to ensure growth and stability in the economy, the government needs to increase her expenditure.