THE IMPACT OF FISCAL FUNDAMENTAL ON UNEMPLOYMENT IN NIGERIA (1981-2015)

Abstract

This study empirically examined the impact of fiscal fundamental on unemployment in Nigeria. The study employed the Annual data on government expenditure, government revenue,interest rate, and public debt from Central Bank of Nigeria Statistical Bulletin covering the period of 1981-2015. The result of this study shows that government expenditure (GX) and interest rate (IR) exerts significant positive impact on unemployment rate in Nigeria where government revenue (GR) and public debt (PDT) has insignificant positive impact on unemployment rate in Nigeria. The result equally shows that unemployment granger cause government expenditure and government revenue in Nigeria. It was concluded that fiscal fundamental does not ganger cause the rate of unemployment in the country, thus, the pass values of government expenditure, government revenue and public debt does not significantly influence the rate of unemployment in the country. Consequently, the study recommends that government should refocus expenditure in the country to areas such as development of infrastructural facilities so as to increase the rate of productivity in the country and bate economic growth necessary for increase employment of labour. Government should also redefine its priority to include harnessing of other courses of revenue of the country, such as massive investment in the exportable agricultural products in the country. In contrast, government should also design framework that will ensure effective implementation and completion of project and programmes in the country so as to ensure that objectives of each project and programme is achieved most effectively and efficiently.