The study examined the sustainability of fiscal policy process in Nigeria for
the period 1961 to 2013, using ARDL cointegrating method between government
revenue and government expenditure. The Bai-Perron multiple break point tests
showed that there was structural shift in variables in 1981 which accounted for
unsustainable fiscal deficit throughout the period. It was however, found that fiscal
deficit before 1981(1961–1980) was weakly sustainable, while the estimation after
1981(1982–2013) indicated strong sustainability of fiscal policy in Nigeria. We therefore
recommend that government should continue with the policies put in place by
successive governments since 1982 to ensure stability of macroeconomics
environment.

• A Structural Break Analysis of Fiscal Deficit Process in Nigeria