The research is aimed at evaluating the relationship between fiscal policy and economic growth in Nigeria. The research employed the co-integration error correction mechanism (ECM).. The result revealed that there exist a long-run equilibrium relationship between economic growth and fiscal policy variables in Nigeria. However, the outcome of our analysis shows that the effects of fiscal variables on economic growth are positive but statistically insignificant. An increase in government expenditure and fiscal deficit as well as tax revenue will lead to an enhancement in economic stability. The study recommended that government should endeavor to formulate and implement viable fiscal policy mix as well as diversifying the nation's economic base. This could be achieved through the practice of true fiscal federalism and consistent macroeconomic policies implementation in the non-oil sectors of the economy by providing conducive environment for investors in the agricultural and manufacturing sectors in Nigeria
Fiscal policy and Economic growth
