FISCAL POLICY AND THE PERFORMANCE OF NIGERIAN ECONOMY (1995 – 2022)

performance of the Nigerian economy (1995 – 2022). The major objective of the study was to examine the effect of fiscal policy on performance of the Nigerian economy. Related literature was reviewed conceptually, theoretically and empirically. Secondary data for the study were sourced from the Central Bank of Nigeria (CBN) statistical bulletin 2022. Real Gross Domestic Product (RGDP) of Nigeria was used as the dependent variable while Government Capital Expenditure (GCE), Government Recurrent Expenditure (GRE), Value Added Tax (VAT and Other Taxes on Product (OTP) formed the independent variables. The study adopted the Ordinary Least Square (OLS) multiple regression method to analyze the data. From the findings, it was discovered that at 5% level of significance, government capital expenditure and government recurrent expenditure were negatively significant to real gross domestic product while value added tax and other taxes on products were positively significant to real gross domestic product. Therefore, we conclude that fiscal policy affects economic performance of Nigeria. Hence, it was recommended that the federal government of Nigeria should restructure the usage of her investment fiscal policy measures especially the capital and recurrent expenditure on more profitable economic sectors in order to boast the general performance of the economy in return.