ABSTRACT
Corruption is an anti-social behaviour conferring improper benefits contrary to legal and
moral norms, which undermine the authorities to improve the living conditions of the people.
It is one of the greatest challenges of the contemporary world today. The increasing wave of
corruption and its devastating impact on the Nigeria economy has become a national
problem which has triggered serious research interest within the academics and the industry.
This research project therefore is an evaluation of the Impact of Corruption on Fiscal Policy
Management in Nigeria. Accordingly, the study explored the extent to which corruption in the
fiscal policy management can affect government expenditure, deficit financing and tax
revenue.
The study adopted ex-post facto research design. It was conducted using 12 year annualized
time series data spanning the period, 2000-2011. Data were generated from the Central Bank of
Nigeria Statistical Bulletin and Transparency International website. A computer based regression
analysis using the Special Package for Social Science (SPSS) computer version was
employed to test three formulated hypotheses of the study. Evidence from the descriptive
analysis of the research indicated that Nigeria is highly corrupt going by the rating of
transparency international. But comparing the transparency initiative rating with the Nigeria
fiscal policy parameter, this study concludes that corruption rather has a significant positive
effect on overall government expenditure and tax revenue but no significant positive effect on
deficit financing in Nigeria. In line with this conclusions, the researcher recommends
amongst others that government leadership should cultivate strong willingness to fight
corruption head-on. To achieve this, they should have the political will to prosecute corrupt
officers instantly they are caught
