IMPACT OF COORDINATED FISCAL AND MONETARY INTERVENTIONS ON POVERTY DYNAMICS IN NIGERIA

Abstract

This study investigated the impact of coordinated fiscal–monetary policy intervention on poverty rate in Nigeria between 1990 and 2024. Using the Autoregressive Distributed Lag (ARDL) technique, on a dataset obtained from Central Bank of Nigeria Statistical Ballentine, as well as World bank Development Index. The short-run dynamics together with the long run effects were explored particularly on the interaction between fiscal and monetary policies on welfare indicator-poverty. Findings revealed that while monetary policy exhibited no significant effect on poverty both in the short and long run except for its lagged variables in the short run. Government expenditure on the one hand was statistically significant in the long run. Furthermore, their interaction (policy mix) was well behaved as it showed tendencies of reducing poverty at a good level of statistically significance. This implies that coordinated fiscal and monetary measures are crucial for addressing poverty in the Nigeria. With this, this study concludes that effective policy coordination between fiscal and monetary authorities can enhance welfare outcomes, and thus recommends improved synergy between fiscal and monetary authorities to promote inclusive growth and macroeconomic stability, as well as sustainable socio-economic development in Nigeria.