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Federal finance and statistics / Central Bank of Nigeria

Do Geopolitical Risks and Economic Uncertainty Matter for Fiscal Sustainability in Nigeria?

This paper attempts to answer the question about whether geopolitical risks and economic uncertainty matter for fiscal sustainability in Nigeria. The paper employs the ARDL model and bounds test approach to cointegration to analyse quarterly data for the period 2010Q1 to 2021Q4. The main finding indicates that geopolitical risks significantly enhance fiscal sustainability in the short- and long-run, while economic uncertainty does not. Accordingly, the study recommends the implementation of | Keywords: geopolitical risks, economic uncertainty and fiscal sustainability

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