Effects of Fiscal Policy on Standard of Living in Nigeria

Abstract

This study investigates the effects of fiscal policy on standard of living in Nigeria. An Ex post facto descriptive research design was adopted for the study. Secondary data were gathered from various statistical bulletins of Central bank of Nigeria and national bureau of statistics. The study employs time series data which covered the period from 2017 to 2022. World Bank foreign debt; Value Added Tax and Petroleum Profit Tax were adopted as proxies for fiscal policy while Human Development Index (HDI) was adopted as a proxy for standard of living. The data collected were analyzed using simple and multiple regression analysis methods of ordinary least square technique while Analysis of Variance (ANOVA) was used to test the hypothesis. The study concludes that fiscal policy has a positive strong effect on standard of living in Nigeria. The study recommends that the government should focus on policies that will boost human development through improved healthcare system, investment in education, inclusive governance, security, peace building, entrepreneurship, job creation and youth empowerment.