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Fiscal Policy Measures and Investment Decisions in Nigeria (1995 – 2019)

This paper examined the extent to which fiscal policy measures could effectively be used to promote investment decision in Nigeria.  The data employed covered the period of 1995 to 2019 which include fiscal measures such as capital expenditure, recurrent expenditure, value added tax and investment.  In performing the empirical analysis, econometric techniques such as auto regressive distributed lag (ARDL), unit root, Granger Causality test and bound test were applied on the data to produce acceptable results.  The results from the analysis revealed that capital expenditure is positive and significant while recurrent expenditure and value added tax are insignificant to investment growth in the economy.  Based on our results, we conclude that more priority should be place on capital expenditure in the country for it will stimulate investment growth respectively.