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Abstract
Monetary and fiscal policy instruments administered by the CBN and Federal government, respectively, hold significant influence over crucial the Nigerian economy. The study examined the effects of monetary and fiscal policy on economic growth in Nigeria from 1986 to 2020. Stationarity tests were conducted using the Augmented Dickey Fuller test and the Phillips perron test. As the variables showed mixed integration order, the ARDL Bounds Co-integration test checked for long-run relationships among the variables. The Auto Regressive Distributed Lag (ARDL) was employed to estimate the model. The findings revealed both short run and long relationship between monetary and fiscal policy variables on economic growth in Nigeria. Majorly, government revenue has a negative effect on economic growth while expenditure boosts the economy in the short and long run. External debt slows down the economy in the long run, usually due to debt financing. Interest rate was positively associated with economic growth, but money supply tends to hurt the economy. The study recommends that the CBN and the federal government should collaborate more closely and synchronize their policy objectives. Second, the Budget Office of the Federation (BOF) and the Ministry of Finance should ensure that more funds are directed towards capital projects and social infrastructure. Already, external debts slow down the economy as observed in the results of this study. The Debt Management Office (DMO) should explore sustainable debt management strategies that will drive the implication that the extra funds used to service unnecessary debts are used for more productive economic activities.