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Fiscal Policy and Macroeconomic Stability in Nigeria: Evidence from Dynamic Regression Models

Fiscal policy is widely regarded as a central instrument of macroeconomic management, yet its short-run relationship with stability outcomes in oil-dependent, low-income economies remains empirically unsettled. This study examines the effect of fiscal policy on macroeconomic stability in Nigeria using annual data covering 1990 to 2025. Macroeconomic stability is disaggregated into three indicators real GDP growth, the annual change in inflation, and exchange-rate volatility rather than treated as a single composite outcome. Fiscal policy is represented by the annual log growth of tax revenue a…

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