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Fiscal Policy Impact on Economic Growth in Nigeria: An Empirical Analysis Hassan, Bello
Jurnal Saintifik (Multi Science Journal) Vol 23 No 2 (2025): MEI
Publisher : Fakultas Pertanian

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58222/js.v23i2.405

Abstract

Nigeria's economic paradox of sustained GDP growth alongside rising unemployment, poverty, and income inequality underscores the limitations of relying solely on headline economic indicators. While fiscal policy plays a crucial role in economic management, its effectiveness in fostering inclusive growth remains debatable. This study examines the impact of fiscal policy on economic growth and macroeconomic stability in Nigeria from 2003 to 2023, employing time-series data and econometric techniques such as regression analysis. The study evaluates the relationship between government expenditure, taxation, and income distribution, highlighting the structural inefficiencies that hinder fiscal effectiveness. Findings suggest that while fiscal policy has contributed to GDP growth, its impact is weakened by inefficient government spending, and revenue dependency, particularly on oil and institutional weaknesses. Moreover, fiscal interventions have failed to significantly reduce income inequality due to misallocation of resources and corruption. The study recommends targeted interventions to enhance fiscal policy effectiveness, including increased investment in human capital development, tax reforms, and improved governance. Strengthening fiscal discipline, diversifying revenue sources, and promoting transparency in public finance management are crucial for ensuring equitable and sustainable economic growth. These insights contribute to the broader discourse on the resource curse and the challenges of fiscal policy implementation in developing economies, offering valuable implications for policymakers in Nigeria and similar contexts.
Financial Development, Financial Inclusion, and Poverty Reduction in Nigeria Hassan, Bello; Gbemisola, Olajide
AFEBI Economic and Finance Review Vol. 9 No. 1 (2024): June
Publisher : Asosiasi Fakultas Ekonomi dan Bisnis Indonesia

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Abstract

This study explores the intertwined roles of financial development and financial inclusion in alleviating poverty, with a focus on Nigeria. Financial development enhances capital allocation and economic growth, while financial inclusion ensures access to affordable financial services for marginalized populations. Together, they support poverty reduction by promoting investment, entrepreneurship, and risk management. Despite Nigeria's progress with initiatives like the National Financial Inclusion Strategy, challenges such as poverty, unemployment, and inequality persist, hindering widespread benefits. Microfinance institutions and digital financial services, like mobile money, have made strides in reaching underserved regions. However, barriers such as high interest rates, low digital literacy, and unequal access to financial services remain significant. This study examines statistical trends and the effectiveness of financial strategies in fostering sustainable economic growth and poverty alleviation. It underscores the need for enhanced infrastructure, digital education, and trust in financial systems to achieve inclusive development. By addressing these challenges, policymakers and institutions can unlock the full potential of financial inclusion and development as pivotal tools for poverty reduction in Nigeria. Keywords: Financial development, Financial inclusion, Poverty alleviation, Microfinance institutions and Digital financial services