GPH-International Journal of Applied Management Science

Fiscal Policy Instruments and Economic Development in Nigeria

Ubong Udonwa, Pius Akpan, Enosakhale Ailenomhen — Sun, 17 May 2026 09:55:46 +0000

The aim of this paper was to examine the effect of fiscal policy on economic development in Nigeria from 2000 to 2023. The fiscal policy variables that were taken into consideration were government expenditure, public debt, and taxation, while economic development was measured using the composite index of the human capital index. The study employed the fully modified ordinary least squares (FMOLS) technique of estimation since the unit root test reported that the time series variables were stationary at higher order of integration. From the result, it was observed that government expenditure exerted positive and significant effect on economic development in Nigeria. On the contrary, public debt and taxation generated negative and significant effects on economic growth. Other key variables that were noted to be of significant influence on economic development were official development assistance and trade openness (with a positive effect) along with inflation with negative effects. The paper therefore recommended an option of increasing government spending on productive sectors, reducing public debt, and implementing tax reforms.

Trade Finance Gap in Emerging Markets and the IMF Role: A Case Study of the Nigerian Economy

Igoni Otuoye — Wed, 20 May 2026 10:27:42 +0000

This study investigated the trade finance gap in emerging markets, focusing on Nigeria and the role of the International Monetary Fund (IMF) in addressing the challenge. Trade finance is essential for facilitating international trade, yet access remains limited in many developing economies. The study assessed the level of trade finance accessibility in Nigeria, examined factors contributing to the gap, evaluated the IMF’s role, and suggested sustainable solutions. A survey design was adopted, with data collected from 270 respondents drawn from commercial banks, export-oriented firms, SMEs, and relevant government agencies. Structured questionnaires generated quantitative and qualitative data, analyzed using frequency tables and percentages. Findings showed that trade finance access in Nigeria is inadequate, particularly for SMEs. Key constraints include foreign exchange volatility, stringent collateral requirements, weak credit systems, and high-risk perceptions by foreign lenders. While IMF interventions have supported macroeconomic stability through financial aid and policy guidance, their direct impact on improving SME access to trade finance has been limited. The study concludes that closing the trade finance gap requires coordinated domestic reforms and stronger international support. It recommends improved foreign exchange management, expansion of credit guarantee schemes, strengthened SME financial infrastructure, export diversification, and deeper IMF–Nigeria collaboration. Addressing these areas can enhance Nigeria’s trade finance system, promote SME participation in global markets, and improve national competitiveness.

Assessment of the Contribution of Blue Economy on Sustainable Economic Development in Nigeria

Daniel Dornubari SUNDAY, Henry ONYEMA — Sat, 30 May 2026 11:21:09 +0000

This study evaluated the role of blue economy to sustainable economic development in Nigeria. The study was inspired by the desire to seek other avenues in enhancing human wellbeing other than the conventional oil-based growth. In particular, the research analyzed how fisheries output, port throughput, marine tourism revenue and offshore oil and gas impacted the results of human development. It has been pegged on the Resource-Based View, Sustainable Development Theory and Endogenous Growth Theory. Ex-post facto research design was embraced and annual time-series data on the sample population studied period 1990 to 2024. Secondary databases such as international development indicators, national statistical agencies were used to source out data. The study employed descriptive statistics and Augmented Dickey-Fuller unit root test and Johansen cointegration test together with parsimonious error correction model with a level of significance of 5%. The results indicated that port throughput and offshore oil and gas are positively and significantly related with human development whereas fisheries output and marine tourism have positive but insignificant correlations. The results also confirmed that there exist long-run equilibrium relationships among the variables that the blue economy activities have an overall impact on sustainable development in the long run. The paper concluded that the blue economy potential in Nigeria has a huge potential to promote human development, but the impact of the blue economy is still uneven as a result of structural and institutional issues. The study proposed several recommendations among them being the need to allocate more funds in the development of fisheries, to modernize the port infrastructure, to improve the management of oil revenues and to strategically develop the marine tourism. The research adds to the body of knowledge by combining the blue economy indicators with the outcomes of the human development process, which offers a multidimensional approach to sustainable economic development.

Fiscal Deficit and Inflation: Evidence from the Nigerian Economy

Christopher N. Ekong, Okon J. Umoh, Uduakobong E. Ukpe — Mon, 01 Jun 2026 00:00:00 +0000

This study investigated the complex relationship between fiscal deficits and inflation in Nigeria, examining their short-run dynamics, long-run equilibrium, and causal relationships. Using an Autoregressive Distributed Lag (ARDL) model and Granger causality testing, the research revealed several significant findings. In the short run, inflation demonstrated strong persistence, with past inflation values significantly influencing current levels. Fiscal deficits, particularly at their second lag, showed a positive impact on inflation, while real GDP and exchange rate stability exhibited deflationary effects. The error correction term indicated rapid adjustment to long-run equilibrium, highlighting effective fiscal and monetary coordination. Long-run analysis revealed a significant negative relationship between fiscal deficits and inflation, suggesting that disciplined fiscal policies could contribute to price stability over time. The money supply rate showed a positive long-term impact on inflation, consistent with classical monetary theory. Real GDP and exchange rates maintained their deflationary effects in the long run, serving as stabilizing factors in the Nigerian economy. Granger causality tests demonstrated unidirectional causality from fiscal deficits to inflation, establishing fiscal deficits as a predictor of inflation in Nigeria, though the reverse relationship was not significant. Based on these findings, the study recommends enhancing fiscal management through stronger deficit control measures and fiscal consolidation policies. This includes improved budgetary management, prioritized productive spending, and reduced reliance on borrowing. Additionally, the research emphasizes the importance of strengthening monetary and exchange rate policies, suggesting that maintaining exchange rate stability and controlling money supply growth are crucial for managing inflation. These recommendations aim to support price stability and mitigate inflationary pressures in Nigeria's developing economy.