A Reality Check on Fiscal Policy in Nigeria
4 Pages Posted: 29 May 2014
Date Written: December 1, 2013
A careful reading of the ‘2014-2016 Medium Term Expenditure Framework and Fiscal (MTEF) Strategy Paper: Supporting Growth and Employment Generation’, raises some grave concerns about Nigeria’s fiscal policy. The fact that the 2014-2016 MTEF projects that an increase of N17 trillion in nominal GDP between 2012 and 2016 will be accompanied by a decline in nominal Federal Government revenue and spending suggests that Nigeria’s fiscal policy has disconnected from economic reality. Urgent steps are required to reconnect the fiscal processes to the realities of current economic growth.
Keywords: Nigeria, Medium Term Expenditure Framework and Fiscal (MTEF), Government Revenue, Government Expenditure, GDP growth, Capital Expenditure
JEL Classification: H50
Suggested Citation: Suggested Citation