Impact of Fiscal Policy and Oil Price Shocks on Sectoral Output Growth in Nigeria (Evidence from Industrial sector)

This study looked at the impact of Nigeria's fiscal policy and oil price shocks on industrial production growth. This study relied on secondary data.The relevant data was obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN).The multiple regression results showed that the computed F-statistic with corresponding probability value (F (6, 17) = 1472.99, Prob > F = 0.0000) and adjusted R2 (0.9965), showed that government expenditure (β =.5088284), oil price shocks (β =.0078315),Government Revenue (β=.3576268),Foreign exchange rate (β =.0893303),external reserves (β=.0055062)have positive effect on industrial output. While external debt (β = -.0748426) have negative and insignificant effect on industrial output at p > 0.05.The study recommends that since there was a positive and significant relationship between the fiscal policy, oil price shocks and industrial output, the government should consider restructuring its expenditure pattern by allocating more towards productive expenditure such as social infrastructural projects; which will have multiplier effect of Stimulating output growth in various sectors of the economy