Issues in Fiscal Policy Management under the Economic Reforms (2003-7)

In this paper the recent policy measures are reviewed which have been introduced by the federal government to enable a more prudent management of oil revenue and also to improve the quality of the government’s capital spending. The broad conclusion of this paper is that, although recent fiscal policy measures have yielded significant positive results, these measures need to be sustained in order to maintain a stable macroeconomic environment, which is a precondition for sustained long-term growth. In addition, by consolidating recent improvements in budget planning, execution and monitoring, as well as in implementation of programmes based on the millennium development goals (MDGs), the Nigerian government can make significant progress in improving service delivery to its citizens. Large capital investments projects which are currently being implemented by the government must also be closely monitored to ensure the quality and effectiveness of such expenditures.