FISCAL POLICY AND INDUSTRIAL SECTOR DEVELOPMENT IN NIGERIA

Abstract

This study looks at how fiscal policies affected Nigeria's industrial sector growth between 1986 and 2021. To estimate the model's parameters, Autoregressive Distributed Lag was adopted. However, the results suggest that corporate income tax has a negative long-term influence on Nigeria's output of solid minerals, whereas government capital expenditures on the mining and quarrying sector and exchange rate have a positive effect. The results also show that in short run, company income tax and exchange rate are negative while government capital expenditure on mining and quarrying sector is positive. The study therefore, recommends that government should reduce the rate of company income tax for this sector because company income tax is inimical to the growth of solid minerals sector output. Government should also allocate more budget for capital expenditure in the mining and quarrying sector and also ensure that the funds are efficiently utilized to provide the necessary infrastructure needed