Economic Activities In Nigeria Research Articles

State Taxation of the Motorcycle Transport Business and Internally Generated Revenue in Ebonyi State, Nigeria, 2015 to 2021

In classical literatures, the informal sector is regarded as all those economic activities that are neither taxed nor monitored by any form of government. However, with the downturn of economic activities in Nigeria due to the dwindling oil revenue which forms the major revenue generation and export earnings of Nigeria, the informal sector, specifically the motorcycle transport business popularly known in Nigeria as Okada has come under some form of government taxation and monitoring in some states in the country. This was to shore up their revenue base which has dwindled over the years. Extant literatures have not been able to examine the contribution of informal sector, specifically, the motorcycle transport business to internally generated revenue of the sub-units, especially Ebonyi State within the period under study. Thus, we pose the question: has the taxation of the motorcycle transport business operation improved on the internally generated revenue of Ebonyi State between 2015 and 2021? We anchored our analysis on Public Choice Theory of politics and economics. Data for the study were collected through both primary and secondary sources. The study found that despite the intensive taxation of the informal sector in Ebonyi State, specifically, the motorcycle transport business; the internally generated revenue of the state seems to be decreasing rather than increasing, given the number of taxable objects that has been brought under its internally generated revenue sources. The study recommended that the government should do more in the area of its internally generated revenue to ensure efficiency in collectability and remittances.

Stock prices and economic activities in Nigeria: sector level evidence

ABSTRACT Relationship between stock prices and economic activities at primary, secondary and tertiary sectors was missing in the previous literature. We fill this gap using quarterly data spanning 2010Q1–2019Q4 for Nigeria. Our empirical evidence is based on the autoregressive distributed lag model and Toda–Yamamoto Granger causality test with structural break frameworks. We prove that stock prices greatly boost short-run primary sector activities and short- and long-run secondary and tertiary sectors activities. Unidirectional causality is observed from primary sector activities to stock prices and from stock prices to tertiary sector activities while bidirectional causality between stock prices and secondary sector activities is documented.

Evaluating Oil Price Movement and Revenue Generation in Nigeria during Covid-19 Pandemic: Experience from Pre and Post Era

The study focusses on evaluating oil price movement and revenue generation in Nigeria with emphasis on the era of pre and post covid-19 pandemic. Measures such as crude oil price, domestic production, crude oil export and revenue, and revenue generation were assessed before, during and after covid-19 pandemic. The evidence shows that oil price and revenue generation were negatively affected during covid-19 pandemic era due to restriction on the movement of people and economic activities. Hence, the study further revealed a drastic fall in crude oil price and export, as well as domestic production (mbd) especially during the first quarter of 2020. While crude oil price appreciated slightly from June, the export and domestic production plummeted with a corresponding decrease in revenue generation which dropped deeply from $47 billion USD in 2019 to $8 billion USD in 2020. Further evaluation revealed that after the introduction of some measures by the government authorities, the Nigerian economic start to recover, which results to a slight improvement in crude oil price in December 2020, but later fell to 40.28 mbd in march 2021. Thus, other indicators such as domestic production and crude oil export has no sign of recovery between this period except for revenue generation which increases by $4 billion USD. Moreso, to control the aftermath of pandemic, we suggest for cohesive policy measures such as educating people on the benefits of covid-19 vaccines and proper enforcement on the use of facemask. In turn, this will reduce the spread and promote economic activities in Nigeria. In addition, policies that could regulate oil price movement should be initiated. Consequently, it may likely encourage increase in revenue generation in Nigeria.

Renewable Energy Consumption, Oil Price and the Level of Economic Activities in Nigeria: A Symmetric Autoregressive Distributed Lag Approach

In this study, we investigate the impact of renewable energy consumption and oil price on economic activities in Nigeria using yearly data covering 1986-2018. Linear Autoregressive Distributed Lag (ARDL) model and Toda and Yamamoto (TY) Granger causality test are utilized. We disaggregate economic activities into primary, secondary and tertiary sectors activities and we establish that oil price has positive significant impact on the primary, secondary and tertiary sectors activities in the short and long run. Besides, our findings show that in the short and long run, renewable energy consumption has positive insignificant impact on activities of the primary and tertiary sectors. Furthermore, we provide evidence of short run negative strong association and long run positive insignificant association between renewable energy consumption and secondary sector activities. Our results from the Granger causality test reveal unidirectional causality from oil price to the primary and secondary sectors activities.

Effect of gas flaring, oil rent and fossil fuel on economic performance: The case of Nigeria

The study investigates the effect of gas flaring, oil rent and fossil fuel on economic growth in Nigeria from 1990 to 2019 using the autoregressive distributed lag error correction (ARDL-ECM) representation. The fully modified ordinary least squares (FMOLS) and Canonical cointegration regression (CCR) methods are used to check for robustness of the estimates. From the ARDL-ECM results, the study highlights that in the long-run there is significant positive contribution of oil rent, gas flaring and fossil fuel production. For the most part, the outcomes of the FMOLS and CCR align with our findings except that gas flaring showed to depress economic performance. Following these, we sustain the argument that the oil-led and fossil-led growth hypotheses hold. Thus, both the oil sector and use of fossil energy are the major drivers of economic activities in Nigeria. We therefore conclude that, within the scope of our study, natural resource curse or Dutch disease hypothesis is not validated. The authors recommend that the economic gains from Nigeria's rich natural endowments be consolidated through well thought-out diversification programs for economic sustainability. Appropriate policies should also be developed and implemented towards incremental reduction, and ultimate elimination of gas flaring.

Asymmetric Impact of Oil Price and Income in Nigeria UEDT, 1980 – 2019: The NARDL Approach

The study adopted the NARDL model study transportation fuel demand and its asymmetric effects of oil price and income variation on demand for gasoline fuel and diesel fuel in Nigeria. It pays attention to the short-run and long-run nonlinearities demands and supply conditions via positive and negative partial sum decomposition of oil price and income. Variables used in the study are a mixture of I (0) and I (1) series which justified the use of the Bounds test approach to cointegration. Thus, the result of the Bounds test affirms the existence of a long-run equilibrium relationship. Alternatively result of the NARDL model showed that both gasoline and diesel prices and income have short-run and long-run asymmetric effects on gasoline and diesel fuel demand by the transport sector in Nigeria. However, the degree of responsiveness of both gasoline and diesel fuel demand to changes in oil price and income is more on changes in income than changes in oil prices in the short run. It confirmed that population has a strong influence on passenger fuel demand than freight fuel demand which affirms the theory. It, therefore, recommends that government should embark on more structural policies that could control oil prices and stimulate economic activities in Nigeria. Keywords: Asymmetric oil price, income, Disaggregated Transpiration fuels Demand in Nigeria, UEDT and Nonlinear Auto Regression Distributed Lag (NARDL). DOI: 10.7176/JESD/13-6-08 Publication date: March 31 st 2022

How Gender Is Recognised in Economic and Education Policy Programmes and Initiatives: An Analysis of Nigerian State Policy Discourse

Many African states are involved in the frontline discourse on the fight for gender equality through the adoption of public policies, aiming to improve the lives of women through social, economic, and political development. In Nigeria, despite the adoption of Article 42 of the Constitution of the Federal Republic of Nigeria 1999 adapted from the United Nations principles of gender equality, which provides for equality and elimination of all forms of discrimination against women, the Nigerian state still struggles with different forms of gendered marginalisation issues against women in various aspects of Nigerian society; these issues are mainly due to cultural, economic, and legislative challenges. Therefore, this article explores how gender is recognized through public policy programmes and initiatives using a qualitative content analysis of relevant policy documents. The documents were collected from various government ministries and cover policy areas that represent entrepreneurship and economic activities in Nigeria between 2000 and 2020. The analysis confirms the recognition of gender in public policies by subjective bias and mediating access to education for female gender advancement in Nigerian society. Some gender gaps were also recognized and discussed in the article.

Impact of Credit Channel of Monetary Policy Transmission Mechanism on the Nigerian Economy

This study is predicated on the long age debate among scholars and Theorists with respect to monetary policy transmission mechanism. Some schools of thought believe that money does not matter and monetary policy is ineffective in influencing real economic variables such as employment and real output. While other schools claim that money matters and monetary policy can influence real economic activities at least in the short run. The last school of thought is those in between these two opponents who believe that the link between money and output is actually reverse causation not the other way round. These controversies revolve on the issue of ascertaining the channel of transmitting monetary policy actions into the economy. Therefore, using the Vector Autoregressive (VAR) Model, this study sought to empirically analyze credit channel of monetary policy transmission mechanism in Nigeria. Applying the time series data spanning the periods of 56 years 1960-2016, the empirical analysis found four interesting results as follows: firstly, all the credit channels variables were non stationary at levels but appears stationary at first difference. Secondly, there is a short run link between credit channel and Nigeria economic growth. Thirdly, there exists a long run equilibrium relationship between credit channel and economic growth in Nigeria. Fourthly, there is evidence of causality running from credit channel to economic growth in Nigeria. Thus, the study came out with one stylized fact about monetary policy transmission mechanism in Nigeria as follows: that the credit channel of monetary policy transmission mechanism are fully effective, operational and promote economic activities in Nigeria and that the effective propagation of monetary policy in Nigeria are done through the credit channel. Based on the findings above, the study recommends that the policy approach of encouraging, emphasizing and arousing the good management of credit channel of the transmission mechanism in Nigeria should be vigorously pursued. This has the ability to trigger up growth in various sectors of the Nigerian economy.

Steering SMEs in Nigeria through Recession

There is growing concern about the general decline in economic activities in Nigeria. This is evident in the negative Gross Domestic Product (GDP) recorded within the last four quarters of the Nigerian economy. The Central Bank of Nigeria (CBN) and the International Monetary Fund (IMF) confirms that Nigeria is in a period of economic recession. Generally, the economy is made vibrant through aggregate performance of the Small and Medium Enterprises (SMEs). Using a sample of manufacturing SMEs in Nigeria, data and relevant information elicited from selected respondents in SMEs were analyzed using regression and correlation. Findings revealed that there exists a significant relationship between performance of SMEs and recession and that SMEs are affected at different stages of business growth. Empirical works on the subject matter do not explicitly show how SMEs could be managed during recession. To fill this gap, this study therefore adopts the Greiner’s model of business growth to establish the different stages of growth and the application of strategies such as: re-examination of structures, policies and procedures, formation of business clusters, value chain management among others that entrepreneurs, consumers and government alike can employ in steering SMEs at various stages during recession period to improve performance. Keywords: Recession, SMEs, Strategies, Entrepreneur DOI: 10.7176/EJBM/13-14-06 Publication date: July 31 st 2021

The Influence of Oil Price Uncertainty on Economic Activities in Nigeria

This paper seeks to appraise the uncertainty of oil price influence on the activities of Nigerian economy with regard to human development in Nigeria. The research utilized the annual time series data spanning between 1981-2018, and the stationarity of the observed variables was tested by carrying out a unit root test and the stationarity of most of the observed variables were revealed at first difference. The secondary data employed were analyzed with the aid of least square technique of data analysis to assess the association between the observed variables. In response to the outcomes of the analysis, it was revealed that crude oil price positively and insignificantly influences life expectancy, but significantly influences consumption per capital and contrarily, it revealed negative and insignificant influence on physical quality of life and education index. It was inferred by the study that, there is existence of a comparative association of oil price with the indicators of Nigerian economic development. However, there is divergence of influence of the mechanisms of economic attributes as well as performance indicators. The study recommends that, a strict measure of monetary policy should be adopted by the government to regulate the rates of interest and inflation in the economy on a regular basis.

Monitoring and Evaluating the Impact (Post-Legislative Scrutiny) of Emergency Regulation in Response to the COVID-19 Pandemic

The threat posed by passing emergency laws and policies in response to the coronavirus (COVID-19) pandemic can be said to be a critical precursor of human rights abuses. In response to the COVID-19 pandemic, the Nigerian President issued the COVID-19 REGULATION 2020 exercising his powers under the Federal Quarantine Act, CAP Q2 Laws of the Federation of Nigeria 2004. Based on this, the Nigerian Federal Government has undertaken stringent measures, enforced restrictions and cessation of movement, social and economic activities in Nigeria to curtail the pandemic. Nigeria has employed human control to stop the disease's spread, including travel bans, quarantine orders, social distancing, and lockdowns. The measures applied to curtail the spread of COVID-19 have an undoubted impact on human rights.The Nigerian government implemented these restrictive measures which impinge on human rights and democratic processes with authoritarian provisions. This study analyses the emergency measures implemented by the Nigerian government and human rights' infractions and considers Post-Legislative Scrutiny to mitigate the government's legislative actions as a safeguard for human rights and democracy in Nigeria.To ensure true democracy, Nigerian regulations, laws, and policy response to COVID-19 must align with international human rights commitments. And the temporarily imposed restrictions on rights are reviewed by the Legislature and do not become permanent. Questions to be addressed in this paper are: (1) Is the breadth of powers currently enjoyed by executive bodies, such as Public Health authorities and security forces under scrutiny and review of the Legislature? (2) Are there safeguards put in place by the Legislature, as an oversight to ensure democratic rule and respect for human rights in Nigeria?The paper uses the qualitative research method. It relies on content analysis of COVID-19 regulatory and legislative provisions, academic literature, articles, journals, and newspaper publications.

An Empirical Analysis on COVID-19: Lockdown Impact on Nigerian Economy

Objective – Objective of this study is to analyze the lockdown effect on economic activities in Nigeria as the lockdown response measure to COVID-19 pandemic claim to pose a serious and potentially long term socio-economic threat to individuals, households, businesses as well as public sectors in Nigeria. Design/methodology – This study considered four regions in Nigeria (Northwest, North-Central, South-South and Southeast) and adopted a quantitative research approach which entails systematic evaluation of individuals’ behavior towards an unprecedented economic shock and their response to the manner in which the situation might unfolds by lifting the lockdown measure in Nigeria. This is achievable with a systematic random sample and a well-structured survey questionnaire. All these regions experienced the imposition of lockdown measure by their respective state authorities. Results – The results indicated that most socio-economic challenges including job loss, increase social vices, rise in poverty level, fall in economic activities, as well as fall in the level of GDP faced by individuals was not a resultant of the lockdown. Consequently, authority’s inefficiency was also challenged in spite of their efforts to mitigate and control the emerging economic consequences faced by households during the lockdown periods.Recommendation - The study recommends that lifting of lockdown would be the best action for the government to take for socio-economic resilience. The study also revealed that both public and individuals need to establish democratic preferences, and trust on health professionals or experts. Further to this, government should decide on effective measures needed to contain the continuous spread of the virus especially through development of research based and healthcare institutions.

ANALYZING THE ENERGY CONSUMPTION AND ECONOMIC GROWTH NEXUS IN NIGERIA

Public and private sectors across the globe formulate and implement policies that target growth of their operations. It is of essence therefore that economic managers and other stakeholders identify and engage key factors that promote economic activities in policy formulation. The connection between economic performance and energy utilization is acknowledged in the literature, but empirics on the nature of this relationship produce mixed outcomes thereby suggesting the need for more research. Using the auto-regressive distributed lag method, this study estimates the effect of energy consumption on economic growth in Nigeria between 1981 and 2017, incorporating financial development, gross fixed capital formation and inflation for enhanced robustness. The results indicate that energy consumption and gross fixed capital formation (proxy for infrastructure) significantly determine growth of economic activities in Nigeria. The study also presents empirical support for delayed response of an endogenous variable to its own shocks as well as shocks to explanatory variables. It therefore asserts that energy consumption is a major determinant of economic growth in Nigeria, and aligns with the energy-led hypothesis. The observed positive impact electricity and capital consumption provides empirical support for the endogenous growth theory. Increased government and private sector investment in energy and infrastructural development is strongly advocated.

The Nigeria’s Debt- Growth Nexus: A Blessing or Burden?

The option of leveraging on recommendable borrowings does not only stimulate favourable economic growth but also offers meaningful upsurge in the financial position of parties involved. It is on this premise that prompted the essence to examine the Nigeria’s debt- growth nexus: whether a blessing or burden, for the period 1981 to 2019. Secondary data from CBN statistical Bulletin were employed in the study. Using the Error Correction Model, the results reveal that, although debt servicing exerts negative relationship with economic growth, it is obvious that debt financing in Nigeria is a blessing as external and domestic debt stocks all exert positive influence on economic growth. However, only domestic debt stock is efficient enough to spur economic activities, which suggests that prudent employment of domestic debt which is not affected by exchange rate is a strong catalyst for rapid increase in economic activities in Nigeria. Therefore, having identified domestic debt as the linchpin of economic growth in Nigeria, the study recommends the choice for internally borrowed fund as the best benign financing option as well as its optimal utilization for meaningful commensurate economic activities. Also, recommendable threshold point of borrowing should strictly be adhere to, in order to avoid landing the economy into a state of onerous experience.

An Assessment on Relationship of Agricultural Sub-Sectors with GDP in Nigeria

This study is majorly concentrated on the various agricultural subsectors in Nigeria, how the subsectors has influenced the economic growth of Nigeria using econometric procedure to estimate the parameters of the model, and also the various shortcomings encountered by the agricultural subsectors in Nigeria and possible solutions. It also emphasize on the sector that has been abandoned, whereas, the growing recognition is directed toward the major resources (crude oil) which generated diminishing returns in agriculture contributions in regards to the economic growth in Nigeria. Moreover, the paper emphasized on the relationship of agricultural sub-sectors with Gross Domestic Product (GDP) which the sub-sectors entails crop production, fishery, livestock and forestry. The Intention of this research presents the conclusion that the agricultural part is a concrete sector of the economy and cannot be underrated or trivialized seeing that agricultural sector output is important to economic activities in Nigeria. Therefore, the general growth of the country’s economy depends on the progress of agriculture. If there’s availability of credit facility to the agricultural sector, it will enhance the boosting of the country’s GDP and thereby causing growth in the economy. An additional objective of this paper attempts to carry maximum value for public officials and legislators.

Corporate Social Responsibility in Nigeria and Rural Youths in Sustainable Traditional Industries Livelihood in Oil Producing Communities

AbstractSince the first oil well was drilled in Nigeria, traditional economies have suffered neglect, and rural youths do not see a future for themselves in traditional industries livelihood (TIL). We examine the impact of corporate social responsibility of multinational oil companies on youths' participation in TIL. A total of 1200 youths were sampled across the rural Niger Delta. Results from the use of a logit model indicate a significant relationship between corporate social responsibility and TIL. The findings suggest increased general memorandum of understanding interventions in canoe carving, pottery making, cloth weaving, mat making and basket weaving to revive the traditional economic activities in Nigeria. © 2019 John Wiley & Sons, Ltd.

Fiscal Policy and Growth of Real Economic Activities in Nigeria (1980-2016)

Several empirical studies have investigated the effect of fiscal policy on various macroeconomic variables such as inflation, debts, interest rates, unemployment and growth (GDP) for diverse economies, using variant methods. This paper examined the influence of fiscal policy on growth of real economic activities in Nigeria from 1980-2016, using 2010 as base year to adjust for price level. Secondary data sourced from Central Bank of Nigeria (CBN) (2016) were analysed. After verifying the stationarity property of the variables, Johansen cointegration test result revealed evidence of long run relationship among public revenues, expenditure, real GDP and inflation. The results from Vector Error Correction Method (VECM) showed that government expenditure positively and significantly impacted real economic activities’ growth, but converse was the effect of public revenues on RGDP. The results, therefore, imply that government should cut tax to increase disposable income which has aptitude to enhance real aggregate production in Nigeria.

Beneish Model, Corporate Governance and Financial Statements Manipulation

This paper examined corporate governance and financial statements manipulation in Nigeria, using the Beneish model. To this end, the Beneish Model was employed to predict the likelihood of financial statements manipulation among the companies in Nigeria while the role of corporate governance variables to this manipulation was examined, using logistic regression analysis. In specific terms, the corporate governance variables of Board Composition , Board Gender Composition , Audit Committee Composition, and Board Dominance were examined as determinants. The data used were extracted from sixty-five (65) quoted companies in the Nigeria Stock Exchange for a 6-year period of 2009-2014.This period a near-crash in the Nigerian stock market with the consequential low ebb in economic activities in Nigeria. Preliminary analysis reveals that most of the companies quoted in the Nigeria Stock Exchange and sampled for this study, based on the Beneish Model, have the probability of manipulating their annual financial statements. Furthermore, results revealed that an increase in the Board Composition defined in the proportion of the Non-Executive Director (NED) on the Board, will increase the likelihood of detecting, preventing and investigating financial statements manipulation in the quoted companies in Nigeria. In addition, it was discovered that, in the Board Gender Composition, an increase in the proportion of female gender in the entire board will increase the likelihood of detecting, preventing and investigating financial statements manipulation. Meanwhile, it was revealed that an increase in the effectiveness and efficiency of the composition of the audit committee may reduce the likelihood of financial statements manipulation in Nigeria companies. Lastly, it was discovered that a decrease in Board Dominance will increase the likelihood of detecting, preventing and investigating misstatements in the annual financial statements of Nigeria companies. It is recommended.in the meantime, to use the Beneish model as a norm to assess the possibility of financial statements manipulation. More stringent measures, such as whistleblowing, ethics, value system, zero tolerance to fraud, just to mention a few, are to be effectively enforced by external regulatory authorities (such as Central Bank of Nigeria, Securities and Exchange Commission and the Nigerian Stock Exchange) to control the activities of the company’s board of directors, as well as the application of Beneish model, would aid the detection of financial statements manipulation.

Corporate Social Responsibility in Nigeria and Rural Youths in Sustainable Traditional Industries Livelihood in Oil Producing Communities

Since the first oil well was drilled in Nigeria, traditional economies have suffered neglect, and rural youths do not see a future for themselves in traditional industries livelihood (TIL). We examine the impact of corporate social responsibility (CSR) of multinational oil companies (MOCs) on youths’ participation in TIL. A total of 1200 youths were sampled across the rural Niger Delta. Results from the use of a logit model indicate a significant relationship between CSR and TIL. The findings suggest increased general memorandum of understanding (GMoU) interventions in canoe-carving, pottery-making, cloth-weaving, mat-making, and basket-weaving to revive the traditional economic activities in Nigeria.

Interaction Effect of Tourism and Foreign Exchange Earnings on Economic Growth in Nigeria

Deteriorating nature experienced in the level of economic activities in Nigeria is evident in most sectors of the economy, including the tourism sector. But there is a need to develop the tourism industry because of its potentials for job creation, and the Nigerian government should make vital efforts to diversify the economy from oil production to other viable sectors in order to create wealth for the nation. Against this backdrop, this study examined the interaction effect of tourism and foreign exchange earnings from the tourism industry on economic growth in Nigeria. The study engaged time series data sourced from the World Development Indicators for the period 1980–2016 and employed the fully modified ordinary least squares (FMOLS) and Johansen cointegration econometric technique of analysis. The empirical results from the FMOLS showed that revenue generated from tourism have a significant and positive effect on Nigeria’s economic growth; the interaction effect of tourism and foreign exchange earnings on economic growth in Nigeria is positive which implies that an increase in the tourism and foreign exchange earnings will lead to an increase in economic growth. Thus, based on these findings, the study recommended that as a matter of priority, the Nigerian government should encourage diversification through tourism promotion to achieve the desired level of economic growth and ensure that foreign exchange earnings from tourism transmits to the improvement of amusement parks and recreational centres which will significantly open new opportunities for tourism patronage and hence boost economic growth.