Abstract

Purpose of the study: This study investigated the effect of substance abuse on the real growth rate in Nigeria between 1993 and 2017. The study specifically examined the period-based impact of substance abuse prevalence and rehabilitated individual drug addicts on the actual growth rate of the Nigerian economy.
 Methodology: Autoregressive distributed lag and co-integration/bound test techniques were employed to analyze the data obtained. In between, correlation analysis and preliminary tests were carried out.
 Main findings: The study found out that substance abuse and rehabilitated drug individuals have a significant impact on economic performance. While substance abuse has a significant negative impact, rehabilitated, individual drug addicts have a significant positive impact. However, in the long run, there was no indication of a significant impact on the Nigerian economy.
 Research limitations/implications: This study will be of use to the National Drug Law Enforcement Agency, the United Nations Office on Drugs and Crime, the National Institute on Drug Abuse, and most drug control programs in many countries. The Ministries of Economic Planning to examine the extent to which drug abuse has had an economic impact.
 Novelty/Originality of this study: Economic analysis showcasing the effect of drug abuse prevalence and rehabilitated individuals on economic performance is quite scanty. This work creates a good reference point in areas of health economics and macroeconomics generally. It allows readers to know the genesis of drug trafficking and abuse in Nigeria.

Highlights

  • Current evidence from around the world appears to reveal a continuing upward trend in the abuse of trafficking in narcotic and psychotropic substances

  • The first objective, which is germane to this study, was to investigate the impact of substance abuse captured by substance abuse prevalence (SAP) on economic performance proxy of the real growth rate in Nigeria

  • The objective of this study is to investigate the effect of substance abuse on the real growth rate in Nigeria between 1993 and 2017

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Summary

Introduction

Current evidence from around the world appears to reveal a continuing upward trend in the abuse of trafficking in narcotic and psychotropic substances. World drug report shows that around 210 million people, aged 15-64 years, consume illicit drugs annually. Out of this number, problem drug users account for 27 million, and millions die from illicit drugs and alcohol abuse annually (UNODC, 2011). One pointer of the extent of abuse of drug and trafficking in the economic term is the estimates of the international illicit drug industry. The abuse/use of these drugs cut across culture, social, political background, sex, age, and religion. In some quarters, it is seen as a health or social problem but a threat to human existence

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