International Science Community Association International Research Journal of Social Sciences 2319 8 2 2019 04 14 An assessment of alternative fiscal stimulus instruments in Nigeria: A DSGE analysis 13 19 EN Kajenthini Ganeshamoorthy 1 Department of Economics, Faculty of Commerce and Management, Eastern University, Sri Lanka Bedadyuti Sahoo 1 School of Computer Engineering, KIIT Deemed to be University, Bhubaneswar-24, Odisha, India Sasmita Pattnaik 2 Department of History, Rama Devi Women’s University, Bhubaneswar, Odisha, India Ruchika Patra 3 Rama Devi Women’s University, Bhubaneswar, Odisha, India Ibrahim Umar Bambale 1 Department of Entrepreneurship, SICHST, Makarfi, Nigeria Abubakar Isah Funtua 2 Department of Economics and Development Studies, Federal University, Dutsin-Ma, Nigeria > Research Article 2018 11 26 2019 04 14 This paper sets out to ascertain the optimal fiscal stimulus instrument in Nigeria, based on its fiscal multiplier effect on key macroeconomic variables. This is done using a calibrated small open-economy New Keynesian DSGE model of the Nigerian economy augmented by rich fiscal sector incorporating government expenditure. Within this framework, the multiplier effects of three alternative fiscal stimulus instruments in the form of Government transfers, Government consumption expenditure, and Government investment are analysed. The main findings of this paper are; within the short-term period, government transfer shock is found to be more effective in stimulating the economy while, government investment shock has a larger impact in the long term. Therefore, the result suggests that the fiscal authority should spell out its priority clearly before selecting any fiscal instrument. Copyright@ International Science Community Association