Iranian Business Management Association International Journal of Resistive Economics 2345-4954 14 1 2026 01 01 An Evaluation of the Effectiveness of Monetary and Fiscal Policies on Economic Development in Nigeria 80 110 240607 10.22034/oajre.2026.557619.1162 EN Augustine Okon Jacob Department of Business Administration, School of Management Science, Heritage Polytechnic, Ikot Udota, Nigeria. Emmanuel Ating Onwioduokit Department of Economics, University of Uyo, Uyo, Nigeria Okon Joseph Umoh Department of Economics, University of Uyo, Uyo, Nigeria Journal Article 2025 11 05 Nigeria's resource-rich economy remains hampered by sluggish growth, volatile inflation and high unemployment. Oil dependence and weak institutions exacerbate macroeconomic imbalances. This review assesses the effectiveness of Nigeria's monetary and fiscal policies in contributing to economic development and examines their interplay. Surveyed theoretical frameworks (classical, Keynesian and New Keynesian) and synthesised empirical findings from studies employing ARDL, ECM, SVAR and DSGE methods published between 1980 and 2025. The study evaluated the policy impacts on GDP growth, inflation, and employment. Quantitative evidence suggests that monetary policy has significant short-run effects: an ARDL study finds that interest rate cuts substantially increase output, whereas the broad money supply has a negative long-run impact. Fiscal policy accounts for a sizable portion of growth variation; a 1994–2023 regression yields an adjusted R-squared (R²) of 0.59, indicating that government spending and revenue are positively correlated with GDP, while deficits and double-digit debt ratios are negatively correlated. Nigeria's fiscal revenue fell to 5.9% of GDP in 2016, one of the lowest shares globally, while the median tax revenue was only 4.5%. The debt-to-GDP ratio nearly doubled from 13.7% in 2014 to 29.3% in 2021. A simulation of policy combinations suggests that tightening fiscal policy while loosening monetary policy can raise output by 1.6–1.7 %. The effectiveness of both policies is contingent upon price rigidity, the depth of the financial sector, and governance. Low revenues and rising debt constrain fiscal space; unstable money demand and multiple exchange rates hinder monetary transmission. https://www.oajre.ir/article_240607_8ef8ad71a6b41a0fc237d1b3bc717e48.pdf