Abstract

The study examines impact of ICT usage and fiscal policy on economic growth in Nigeria from 1986 to 2022. The data used for this study were secondary data that were sourced from central bank of Nigeria statistical bulletin in all the variables including capital expenditure, recurrent expenditure, external debt, and information and communication technology. The study conducted stationarity test with Augmented Dickney Fuller (ADF) Unit root test and the result shows that all the variables were stationary at first difference. The co-integration test carried out using Johansen co-integration test also shows that there is long run relationship amongst the variables. The study further employed the vector error correction model (VECM) to estimate the parameters of the model. The result of the vector error correction model presented shows that error-correcting term have the right sign, and is also statistically significant at 5% level. Capital expenditure and external debt has a direct and significant relationship with economic growth at 5% levels. Recurrent expenditure has an inverse relationship, but significant with economic growth at 5% levels. Information and communication has a direct relationship with economic growth but not significant at 5% levels. The study therefore recommends that concerted effort should be made to ensure that digital economy serves as a veritable  means of achieving economic growth and at the same time provide effective monitoring mechanism to ensure that government recurrent capital are effectively utilized for the growth of the sector.