Crude oil price experienced a mixed week from November 18 to November 25, 2016. Specifically, OPEC basket price and Brent crude price fluctuated, to a daily average of $44.6 (from $42.33)and $48.3 (from $46.86)per barrel respectively. The present oil volatility is as a result of sell-offs, attributable to speculations/fears of an insufficient production cut by OPEC (in its bid to control oversupply) - a deal scheduled for its next meeting on November 30th 2016. This speculations have arisen due to the reluctance of major OPEC member country (Saudi Arabia) to participate in the potential oil cut dealwhich could exert a downward pressure on oil prices. However, oil prices should rise if OPEC members agree to the oil cut deal. Irrespective of the outcome of the meeting, Nigeria is exempted from the potential crude oil cut. Thus, it will be optimal for the government to act quickly to address the insurgence in the Niger Delta region, in order to raise domestic oil production as much as possible.

The paper examines fiscal policy as it influences growth through taxes and service delivery. It also reviews Nigerias experience with fiscal policy as well as challenges to its current system.

Economic growth in Africas largest economies improved in the second quarter of 2017 (2017Q2) relative to the preceding quarter (2017 Q1), as Nigeria and South Africa exited recession. Specifically, GDP growth rate was 0.55 percent and 1.1 percent for Nigeria and South Africa in 2017Q2, compared to 0.91 percent and 0.7 percent in 2017Q2, respectively. The increased growth in Nigerias economy was driven by improved performance in the oil sector (increased crude oil price and production) which offset the decrease in non-oil sector growth, while South Africas emergence from recession is supported by growth in its agriculture sector complimented by growth in finance, real estate, business service, mining and quarrying sectors.