This study examines the impact of fiscal policy on income inequality and poverty reduction in Kogi State, Nigeria. Fiscal policy, encompassing government taxation and public expenditure, plays a pivotal role in addressing socio-economic disparities and promoting equitable growth. Despite Nigeria’s vast economic potential and resource endowment, income inequality and poverty remain persistent challenges, with over 40% of the population living below the poverty line and a Gini coefficient of 0.43 indicating significant income disparity. The research employs a descriptive survey design using quantitative methods to explore how fiscal tools influence economic welfare within the state. A sample of 200 respondents was selected through stratified random sampling across key socio-economic groups. Data were collected using structured questionnaires and analyzed with Pearson Product Moment Correlation (PPMC) via SPSS. Findings revealed a strong and statistically significant relationship between fiscal policy and income inequality (r = 0.795, p = 0.001), as well as between fiscal policy and poverty reduction (r = 0.828, p = 0.002). These results suggest that well-structured fiscal interventions such as progressive taxation, public investment in social services, and transfer programs can contribute meaningfully to reducing inequality and alleviating poverty. However, the study also highlights major structural and implementation challenges that hinder the full effectiveness of fiscal policies in Nigeria. These include weak tax compliance, over-reliance on oil revenue, inefficiencies in public spending, and inadequate targeting of social welfare beneficiaries. Moreover, economic shocks and political instability further dilute the long-term impact of these interventions. The study concludes that while fiscal policy has the potential to address inequality and poverty in Kogi State and Nigeria at large, its success depends on improved policy design, transparency, and implementation capacity. It recommends strengthening progressive fiscal mechanisms, enhancing data-driven targeting of poverty alleviation programs, and diversifying revenue sources to ensure fiscal sustainability. The research contributes to the limited empirical literature on sub-national fiscal performance in Nigeria and calls for more comprehensive, context-specific evaluations to guide future policy decisions.