Abstract:
A b s t r a c t
In Nigeria, government expenditure has continued to rise due to the huge
receipts from the production and sales of crude oil, and the increased
demand for public goods. Unfortunately, rising government expenditure has
not translated to meaningful industrial growth and development. Therefore, the
study examined the impact of fiscal policy on the non-manufacturing industrial
sector in Nigeria from 1987 to 2022. The study adopted the ex post facto research
design and secondary data were sourced from the Central Bank of Nigeria
Statistical Bulletin December 2022. The study further adopted the Autoregressive
Distributed Lag (ARDL) approach to estimate the effect of fiscal
policy indicators on non-manufacturing industrial output in Nigeria and the
paper the study revealed that the government recurrent expenditures in Nigeria
and oil taxation in Nigeria have a positive and significant effect on nonmanufacturing
output in Nigeria and though the non-oil taxation in Nigeria has
a positive impact on manufacturing industrial output in Nigeria its effect was
insignificant in improving the level of manufacturing industrial output in
Nigeria while, government capital expenditures in Nigeria, public external debt
in Nigeria and public domestic debt in Nigeria have a negative effect on
manufacturing industrial output in Nigeria. Therefore, the government through
the Federal Ministry of Finance and other related Agencies should design a
mechanism to track the fiscal policy indicators in Nigeria to ensure that projects
are industrially driven, especially the infrastructural projects for a massive
increase in industrial output in Nigeria especially, the non-manufacturing
industrial output in Nigeria
