International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2021 | Volume: 5 | Issue: 9 | Page No.: 34-45 Assessment of the Relationship between Fiscal Factors and Economic Growth in Nigeria (1990-2019) Salami Ibraheem Oladeji, Adegbola Muritala, Makinde, Adekanmi, Abideen Adeyinka Abstract: Fiscal policy has not been able to live up to expectations in Nigeria upon several fiscal measures established since independence and importance of fiscal policy in promoting the attainment of macroeconomic policy objectives. The current work is to examine the relationship between fiscal factors and economic growth in Nigeria. The descriptive research design was utilized for this study. The quantitative aspect involved the use of multiple regression and correlation. The tax was regressed against the fiscal policy of Government. The Regression analysis was subjected to multicollinearity and autocorrelation tests. Data for the study was obtained from secondary sources. The multiple Regression Analysis was used to examine research question at 0.05 ?-level. The fiscal factors and economic growth in Nigeria was tested using co-integration and error correction model (ECM) approaches. The capital expenditure, oil revenue, recurrent expenditure and tax revenue of Nigeria experience upward and downward trends within the period of study. It was revealed that the GDP of Nigeria pose a moderate positive relationship with oil revenue and tax revenue but a weak positive relationship with recurrent expenditure and a weak negative relationship with capital expenditure. The result also revealed that oil revenue, tax revenue and recurrent expenditure of Nigeria significantly have positive impact on GDP by 38.95%, 3704.25% and 143.78% respectively, while the capital expenditure significantly reduce the GDP of Nigeria by 258.80%. Result of co-integration shows that there's no long run interrelation between the variables, and that result of correlation analysis reveal a weak positive relationship between GDP oil revenue and tax revenue. Conclusively, the oil revenue, tax revenue, recurrent expenditure and capital expenditure impacted on Nigeria economy. This study recommended that government spending should be channeled more on capital expenditure than on recurrent expenditure while tax system should be strengthened to mitigate the volatility of oil revenue.