 Fiscal Policy in Nigeria: Any Role for Rules?Thomas Baunsgaard No 2003/155, IMF Working Papers from International Monetary Fund Abstract: Fiscal policy in oil-producing countries can be profoundly affected by oil revenue uncertainty and volatility. Policy formulation should factor in the exhaustibility of the natural resources and aim at reducing oil revenue volatility passed on to the economy. Past fiscal policy in Nigeria has not been successful in this regard, since both revenue and expenditure have been highly volatile, to a large extent reflecting oil price developments. The paper discusses the role an appropriately designed fiscal rule, nested within the long-run sustainable use of oil revenue, could have in providing a more stable framework for fiscal policy formulation. It also highlights practical implementation and transitional issues. Keywords: WP; oil revenue; revenue; exchange rate; fiscal policy rules; oil-producing countries; nonrenewable resources; Nigeria; price rule; revenue volatility; IMF staff country report; government activity; Nigerian authorities; government wealth; taxation regime; Oil; gas and mining taxes; Fiscal rules; Oil prices (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2003/155 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
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