Abstract
This article describes how the new democracy in Nigeria has existed for eighteen uninterrupted years and many scholars believe that it has been an improvement over past regimes. The acid test of this claim is to find out if the new democracy has indeed caused a shift in the consumption pattern and a change in the consumption habit of Nigerians. The total differential modeling approach was applied to test the null hypothesis that the new democracy has not impacted the standard of living of the average Nigerian. The results indicated that the new democracy did cause a shift of N6.61E+06 and N9.27E+08 on consumption and income, respectively, in 1999 as well as caused a change in consumption habit of N32.9 million annually. Nominal income also changed by N46.13 million annually as a result of the new democracy. The growth in consumption and nominal income were N22708022 million and N31832692 million, respectively. In addition, the new democracy induced a change of N0.995 mill/annum in real income. Therefore, it will seem that the new democracy has positively impacted the Nigerian economy. However, while the growth rate associated with past administrations is 0.6634%, in terms of real growth, it will seem that there is no significant growth in the economy associated with the current democracy. This article also shares some recommendations that will make this impact manifest on the economy.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call