High accountability and strategic investments key to reducing Nigeria's budget deficit.
The study looked at what causes budget deficits in Nigeria from 1981 to 2016. They used a method called Johansen cointegration and Vector Error Correction model. The results showed that factors like exchange rate, interest rate, and past budget deficits affect the budget deficit. To avoid budget deficits, the government needs to be more accountable in its spending and invest any surplus money in productive projects to grow the economy.