Abstract:
Nigeria's fiscal federalism has evolved and reshaped over time as a result of several changes aimed at improving the
economy's macroeconomic performance. However, despite the introduction of various fiscal measures, Nigeria's
economic growth/performance has slowed, and poverty remains widespread and pervasive, particularly in rural
areas. In addition, there has been little empirical research on the consequences of fiscal policy decentralization on
Nigeria economic growth. The current study is motivated by previous empirical work's failure to provide a definitive
answer to what the overall impact of fiscal decentralization on economic growth is, particularly in Nigeria.The major
instrument of analysis in this study was Ordinary Least Squares.All of the variables in the study are appropriately
signed, with the exception of total federal government revenue, which is negatively signed. By implication, fiscal
policy decentralization measures may promote economic growth. However, the uneven results and statistical
insignificance of the three fiscal decentralization measures can be linked to systemic corruption, inadequate
leadership, and an unfavorable macroeconomic environment. As a result, the study recommended that if Nigeria is to
benefit from the progress that characterizes a fiscally decentralized economy, it should consciously make and
implement laws that will foster effective, balanced, and inclusive fiscal decentralization, as well as strengthen and
implement laws that will be very hostile to corruption and other forms of sharp practices.
