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This study was conducted on the economic effects of fiscal policy growth with special focus on Nigeria for the period 1986 to 2019. Data sourced from Central Bank of Nigeria Statistical Bulletin were analyzed using Philips-Perron and Augmented Dickey-Fuller tests. Based on the outcome of the I(0) and I (1) order of integration among the data series, ARDL Approach was utilised to uncover the effects of fiscal policy and budgetary instruments on economic growth. The findings indicated that fiscal policy growth has potentials to influence economic performance in the long run. It was discovered that government nonoil revenue is the only fiscal policy instrument that improve economic performance while oil revenue, external debt and government expenditure negatively influence economic performance in Nigeria. The study concluded that government fiscal policy and budgetary frameworks which hovers around incremental approach do not improve economic performance. Consequently, there is need for a change in fiscal policy frameworks of government towards allocation of more funds to capital and enhancing productive expenditure. Massive restructuring and redirection of the economy towards nonoil sectors like agriculture, mining, micro, small and medium scale enterprises is needed at this auspicious time that oil price and revenue generated therefrom keeps fluctuating.

Citation: Dare, F.D., , O.E.A., & , T.R.O. (2022). Fiscal Policy Instruments and Economic Growth: Evidence from Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 7(2), 22-32.