Economic Growth In Nigeria Research Articles

Financial Development in Nigeria: A Causal Imperative for Economic Growth

This research investigated the causal relationship between financial development and economic growth in Nigeria from 1994 to 2023. Secondary data were obtained from the Central Bank of Nigeria's Statistical Bulletin and the World Bank's Financial Development Indicators Database. The unit root test was used to establish data stationarity, revealing conflicting results that necessitated the application of Auto Regressive Distributed Lag and the Granger Causality Test. The findings indicated that the private sector credit ratio to gross domestic product, the number of bank accounts per 100,000 persons, and the lending-deposit spread were significant predictors of Nigeria's gross domestic product. Furthermore, the applied indicators of financial development neither facilitate nor enhance economic growth, nor does economic growth assist or promote the utilized measures of financial development throughout the research period, as shown by the lack of causation in our findings. Consequently, the research indicated that of the variables used, just one – the asset quality ratio – did not substantially affect economic growth, and moreover, none of the four measures of financial development used fostered economic expansion. The study advocated for Nigerian banks to strengthen their credit policies and rigorously comply with them, as this would mitigate non- performing loans and subsequently improve asset quality ratios. Additionally, it emphasized the necessity for banks to enhance their financial inclusion initiatives, which would attract more deposits, thereby augmenting their credit capacity. An increase in credit provision would elevate operational efficiency and, consequently, bolster their contribution to the growth of the Nigerian economy.

Asymmetric Impact of Carbon Emission, Oil Price Shocks on Economic Growth in Nigeria (1981 – 2022)

The study examines the asymmetric impact of carbon emissions and oil prices on economic growth in Nigeria. The research is conducted using annual time series data running from 1986 to 2019. The study employs Nonlinear autoregressive distributed lag models (NARDL) as the estimation technique. The variables used in the analysis were Gross Domestic Product (GDP), Carbon Emission (CO2), and Oil Price (OP). The NARDL result shows that carbon emission has a negative and significant impact on economic growth in the long run and the oil price has a positive and significant impact on economic growth in both the short-run and long-run. Based on the empirical outcomes of the result obtained, the following recommendations were offered: The implementation of an economic diversification policy from oil reliance towards dependence on other sustainable energy types (renewable energy resources) should be sustained and strengthened especially. The private sector should also tap into the opportunities that are available in the oil sector, such as the decarbonization programme in order to reduce carbon emissions from fossil fuels.

Foreign Aids and Economic Growth in Nigeria under Buhari, 2015-2021

The aim of this study is to examine the impact of foreign aid and external borrowings on economic development of Nigeria. The study was qualitative in nature as data collection was based on the secondary sources. The two-gap model and the endogenous growth models would complement one another in establishing the theoretical base for this study. The study revealed that external debt does not impact economic growth in Nigeria both in the long run and short run, substantiating on the inapplicability of the two-gap theory, which establishes that external finance can fill savings gap to propel an economy towards achieving a target growth rate. Therefore, the study recommends adequate measures to be put in place to manage borrowed fund by ensuring that borrowed fund are expended on capital project that will generate income and there should be appropriate measures in place that will serve as checks and balances on government spending such as institutional framework for analyzing and managing public investment projects. Also, borrowed funds should be channeled to the purpose in which they have been borrowed this will help foster economic development. Furthermore, the government should work towards freeing up more expenditure for capital project, as this stimulates growth, encourage productivity as against the current focus on more recurrent spending, which only compounds our fate as a consuming nation, thereby affecting long run growth in the country.

Non-Oil Sector Performance and Economic Growth in Nigeria

Most of Nigeria's public income comes from oil exports, making it vulnerable to global market crashes and instability. The economy is currently experiencing a downturn due to the 2014–2015 decline in the value of crude oil. To increase the manufacturing of non-oil product exports and generate external cash, the state government is nowadays met with the challenge of reorienting the economy to the non-oil sector. The study specifically considered the effect of non-oil sector performance, such as the output of the industrial, service, and agricultural sectors, on economic growth in Nigeria using yearly time series data from 1999 to 2022. The growth rate maximization theory was used in this investigation. The World Bank (2022) and the CBN Statistical Bulletin (2022) provided the data used in this analysis. Multiple regression analysis approaches were employed in the study. As the outcomes showed, the growth of the Nigerian economy is positively and significantly impacted by the output of the exchange rate, the manufacturing, service, and agricultural sectors; government spending has a negligible and negative effect on the growth of the economy. The research suggested that incentives should be created to support and expand Nigeria's manufacturing, service, and agricultural sectors to sustain the growth of the economy.

Asymmetric role of energy sources on economic growth of Nigeria: Evidence from nonlinear approaches

AbstractNigeria has plentiful sources of renewable energies that are yet to be efficiently utilised, despite the country committing to net‐zero emissions by 2060, declared at the 26th United Nations Climate Change Conference in 2021, which necessitates lower consumption of fossil fuels. However, this commitment may divert the country from ending poverty as the main goal of sustainable development. This study seeks to identify the asymmetric effects of renewable and non‐renewable sources of energy used in electricity generation, along with CO2 emissions on the economic growth of Nigeria through asymmetric approaches. The findings indicate that Nigeria should mainly pursue policies concentrating on increased consumption of non‐renewable energies in the short run and more renewable energy in the long run to achieve higher economic growth. Furthermore, the long run causality results approving the only feedback relationship existing between renewable energy and economic growth, paves the way for Nigeria so that over the time the country will be able to significantly increase the share of renewable energy through which it can achieve a higher level of economic growth and approach its target of net‐zero emissions by 2060, both of which are the main goals of sustainable development.

Public Preparedness for Agricultural Investment and its Contribution to Sustainable Economic Growth in Nigeria

Purpose: The study investigated public preparedness for agricultural investment and its contribution to and economic growth in Nigeria. The study was guided by the following objectives; to assess the level of individuals' awareness on the current condition of the agriculture industry in Nigeria, public's perspective of the substantial influence of agricultural on Nigeria's overall economic growth, the preparedness of citizens to invest in the agriculture sector for the enhancement of Nigeria's economic growth and delineate the agriculture sector's contribution to GDP. Theoretical Framework: The study was anchored on Lewis (1979) theory of impacting economic growth. Method: The study utilized a descriptive research approach involving 133 respondents across the 36 states, including the federal capital territory, whose major vocation is food production. The samples were selected by a convenience sampling method, considering the respondent geographic closeness and included only those present throughout the survey. Closed-ended questionnaire was utilized as a data-collecting instrument to assess the variables under study; the data on the contribution of agricultural practices to GDP was access from Nigeria Bureau of Statistics (2022-2023). To ensure content validity, the survey instrument was validated utilizing the Lawshe's template. A threshold of 0.99 was noted, signifying that the questionnaire was both representative and comprehensible. The Cronbach alpha technique yielded a reliability coefficient of 0.83, affirming the instrument's homogeneity. The data was analyzed using frequency counts (f) and percentages (%) while the results was presented in graphs. Findings: The survey revealed that most respondents are aware of the current state of agriculture in Nigeria. The heightened awareness has impacted public perception of agriculture's significant role in national economic growth, as the majority of respondents acknowledged that agriculture not only provides food for the populace but also improves farmers' living standards by reducing poverty and hunger, thus promoting economic development. They are willing to invest in agriculture despite a decline in production and a reduced contribution to the national GDP. Conclusion: Although the agricultural sector's contribution to GDP has diminished, individuals are inclined to invest in agriculture therefore, enhanced engagement in agriculture, along with Nigeria's extensive arable land and various people and material resources, and the implementation of sustainable agricultural innovations, will result in significant economic growth.

Differential Gender Effect of Technical and Vocational Education Students’ Human Capital on Long-term Economic Growth in Nigeria

From a gender view point, this study examines the relationship between the human capital of technical and vocational education students and the fundamental principles of long-term economic growth in Nigeria. The study used a correlational survey research approach. The study was directed by four research questions, and four null hypotheses were developed. The population for the study consisted of all 400 level undergraduate students (N = 286) of technical and vocational education in Federal and State-owned Universities in South-South geopolitical zone of Nigeria. The population was of a manageable size, thus there was no sampling. Data was gathered via a questionnaire. Three research experts- two from Ambrose Alli University in Ekpoma, the Department of Vocational and Technical Education, and one from the Measurement and Evaluation University of Benin in Benin City, Edo State validated the instrument. The instrument's dependability was assessed using Cronbach alpha reliability, and a reliability coefficient of 0.85 was found. In order to address these inquiries, bivariate correlation was utilized. Multiple regression analysis and analysis of variance were used to examine the hypotheses. The results showed that, fundamental values and both general and particular human capital were positively correlated long-term growth. Students in technical and vocational education, whether male and female, encounter nearly the same kinds of human capital overall. Keywords: Technical and vocational education, Differential gender effect, Human capital, Long-term economic growth.

Gender Inequality and Economic Growth in Nigeria: A Granger-Causality Analysis (2009–2023)

This study examined the causality relationship between gender inequality and economic growth in Nigeria, covering the period 2009–2023. The study was anchored on two inequality theories, namely functionalist theory and conflict theory. The ex-post facto was used as the research design for the study. Data for the study were extracted from the World Development Index of the World Bank and the Central Bank of Nigeria (CBN) Statistical Bulletin (2023). The method of data analysis adopted in the study was the Granger-Causality Analysis with the Unit-Root employed to estimate the stationarity status of the variables. The results of the study reveal that there is a causality relationship existing between gender inequality and economic growth in Nigeria, covering the period 2009 to 2023. However, the result reveals that the relationship is bi-directional, flowing from gender inequality to economic. The F-statistics and corresponding probability values show that gender inequality granger causes economic growth. The GIE yielded a p-value of 0.0037 < 0.05, GIEPP yielded a p-value of 0.0137 < 0.05, GHIC yielded 0.0108 < 0.05, and GIED yielded 0.0341 < 0.05. Comprehensive policy interventions that promote gender equality in education, employment, and political representation are necessary to ensure that Nigeria's economic growth is inclusive and resilient.

Economic Growth, Money Supply, Government Spending, Government Revenue and Inflation in Nigeria: An Empirical Perspective

This study examines the relationship between real GDP (RGDP) and key economic variables—money supply, inflation, government spending, government revenue, and exchange rates—in Nigeria from 2004 to 2019. Using a multiple regression model, the findings reveal a strong fit, with an R Square value of 0.723, indicating that 72.3% of the variability in RGDP is explained by the model. The results show that government spending and revenue have a significant positive impact on economic growth, while inflation and money supply are associated with negative effects. The exchange rate also positively influences RGDP, though to a lesser extent. These findings highlight the importance of prudent fiscal and monetary policies in fostering sustained economic growth in Nigeria.

Manufacturing Sub-Sector Dynamics and Economic Growth in Nigeria (1981-2022)

This study examined the impact of manufacturing sub-sectors dynamics on economic growth in Nigeria covering the period 1981-2022. Data for the study were extracted from the Central Bank of Nigeria (CBN) statistical bulletin and World Development Index (WDI) 2022. The method of data analysis used is the linear regression method with the application of the Error Correction Model (ECM). The major findings of the study reveal that Cement production (CP) contributes positively but insignificantly to economic growth in Nigeria (β = 2.622724 and p-value = 0.4414 > 0.05), Beverages and Tobacco Production (BTP) contributes positively but insignificantly to economic growth in Nigeria (β = 2.040513 and p-value = 0.0018 > 0.05), Chemical and Pharmaceuticals Production (CHP) contributes negatively but insignificantly to economic growth in Nigeria (β = -17.39120 and p-value = 0.5188 > 0.05) and Pulp paper and paper products (PPP) contribute positively but insignificantly to economic growth in Nigeria (β = 56.85029 and p-value = 0.5062 > 0.05). It is therefore the recommendation of the study that the government should create an enabling environment and adjust its taxation rate on these companies which is currently at 24% to around 18% and the federal and state governments should create a system to protect forests from illegal loggers who are indiscriminately exploiting and felling the national trees.

Total Debt Service and Economic Growth in Nigeria: The Empirical Nexus

This study examines the relationship between debt service and economic growth in Nigeria in the period 1990-2022, utilizing time series data from the World Development Indicator and CBN Statistical Bulletin. The issue of debt servicing has become difficult for developing countries like Nigeria, and has not only stifle economic growth, but also increased the rate of poverty and unemployment in these countries. The study explores the empirical nexus between total debt service and economic growth in Nigeria, employing GDP growth rate as the dependent variable, while the explanatory variables involved; are total debt serving, inflation rate and capital expenditure. The variables were estimated with autoregressive distributed lag (ARDL) method, among other, after the stationarity tests conducted on them Indicate that the variables were of mixed integration. Evidence suggesting a long-term equilibrium relationship among the variables was also established given the cointegration result. The ARDL results reveal that the inflation rate has an inverse and significant impact on GDP growth. Total Debt services variable also exhibited a similar impact on GDP growth. However, the results indicated that capital expenditure variable has a direct and significant impact on GDP growth. Based on the findings, this study recommends that the Nigerian government should implement robust monetary policies aimed at controlling inflation and revisit its debt management strategy to ensure sustainability. It is also recommended that the government should not only increase capital expenditure but also ensure that these investments are directed towards sectors with the highest economic growth potentials. Keywords: Debt service, economic growth, inflation, capital expenditure and GDP growth

Total Debt Service and Economic Growth in Nigeria: The Empirical Nexus

This study examines the relationship between debt service and economic growth in Nigeria in the period 1990-2022, utilizing time series data from the World Development Indicator and CBN Statistical Bulletin. The issue of debt servicing has become difficult for developing countries like Nigeria, and has not only stifle economic growth, but also increased the rate of poverty and unemployment in these countries. The study explores the empirical nexus between total debt service and economic growth in Nigeria, employing GDP growth rate as the dependent variable, while the explanatory variables involved; are total debt serving, inflation rate and capital expenditure. The variables were estimated with autoregressive distributed lag (ARDL) method, among other, after the stationarity tests conducted on them Indicate that the variables were of mixed integration. Evidence suggesting a long-term equilibrium relationship among the variables was also established given the cointegration result. The ARDL results reveal that the inflation rate has an inverse and significant impact on GDP growth. Total Debt services variable also exhibited a similar impact on GDP growth. However, the results indicated that capital expenditure variable has a direct and significant impact on GDP growth. Based on the findings, this study recommends that the Nigerian government should implement robust monetary policies aimed at controlling inflation and revisit its debt management strategy to ensure sustainability. It is also recommended that the government should not only increase capital expenditure but also ensure that these investments are directed towards sectors with the highest economic growth potentials. Keywords: Debt service, economic growth, inflation, capital expenditure and GDP growth

Impact of financial inclusion, financial stability, bank nonperforming loans, inflation, macroeconomic management quality and unemployment on economic growth in Nigeria

PurposeThe study investigates the impact of financial inclusion, financial stability, bank nonperforming loans, inflation, macroeconomic management quality and the unemployment rate on economic growth in Nigeria.Design/methodology/approachThe data are analyzed using the ordinary least squares regression, generalized linear model regression, robust least squares regression and the quantile regression methods. The sample period is from 2007 to 2022.FindingsFinancial inclusion, inflation rate and macroeconomic management quality are significant determinants of economic growth in Nigeria. Bank nonperforming loans, unemployment rate, international trade and climate change have an insignificant effect on economic growth in Nigeria. Also, financial inclusion, inflation rate, financial stability, macroeconomic management quality and the unemployment rate are significant determinants of economic growth in good economic years in Nigeria.Practical implicationsThe well-known catalysts of economic growth, such as financial inclusion and financial stability, are not positive catalysts of economic growth in Nigeria during good economic years. Therefore, it is recommended that policymakers should find the right level of financial inclusion, financial stability and unemployment that stimulate economic growth in Nigeria.Originality/valueThis study examines some determinants of economic growth in Nigeria which have not been examined in the existing literature.

The Impact of Financial Inclusion on Economic Growth in Nigeria: A Secondary Data Analysis

This study investigates the impact of financial inclusion on economic growth in Nigeria, a country where a significant portion of the population remains financially excluded despite ongoing efforts to enhance access to financial services. The problem addressed is the limited understanding of how various aspects of financial inclusion, particularly mobile money, banking services, and credit availability, affect Nigeria's GDP growth. The primary objectives of the study are to assess the current level of financial inclusion, analyze its relationship with GDP growth, and provide evidence-based policy recommendations to improve financial access and support economic development. To achieve these objectives, a secondary data analysis was conducted, employing multiple linear regression, Pearson correlation, and Granger causality tests. The findings reveal a marginally significant positive relationship between Mobile Money Subscriptions (MMS) and GDP growth, while access to formal banking services and credit availability showed no significant correlation with economic growth. These results highlight the importance of mobile money as a key driver of financial inclusion, contrasting with the limited impact of traditional banking services. Based on these findings, the study recommends enhancing mobile money infrastructure, strengthening financial literacy programs, promoting inclusive banking models, and fostering collaboration with fintech firms. Implementing these recommendations could significantly improve financial inclusion in Nigeria, ultimately contributing to sustained economic growth and enhanced welfare for the population.

The link between gender inequality, financial development, and economic growth in Nigeria: A spectral Granger causality approach

AbstractThe male and female genders have crucial roles to play in economic advancement. Thus, the main reason for this research is to pinpoint the causal link between gender inequality (GPIN), financial development (FIDX), inflation (INFL), and economic growth (GDPC) in Nigeria from the year 1980–2020 utilizing the Spectral Granger and Pairwise Granger causality methods and “Residual Augmented Least Square (RALS) cointegration. The RALS result show confirms the stationarity properties of the variables. The Spectral Granger causality outcomes show that GPIN granger causes GDPC in the long, medium, and short–term. In addition, the FIDX granger causes GDPC in the long and short–term, while the medium–term impact is insignificant. For INFL, causality only occurs in the long–term. On the other hand, the Pairwise Granger causality results show that GPIN and FIDX granger cause GDPC, while INFL is insignificant. Therefore, if GPIN and FIDX can predict economic expansion, policymakers need to create policies that can reduce diverse forms of inequalities, promote financial development, and reduce inflation to the barest minimum.

Women digital financial inclusion and economic growth in Nigeria

PurposeThis article analyses the trend in women digital financial inclusion in Nigeria using some digital financial inclusion indicators obtained from the global Findex database for the year 2014, 2017 and 2021. The study also analyses the relationship between women digital financial inclusion and economic growth.Design/methodology/approachThe data were analysed using the two-stage least squares (2SLS) and generalised method of moments (GMM) regression estimation methods. The women digital financial inclusion indicators are the percentage of women who (1) own a mobile money account, (2) made a digital payment, (3) received digital payments, (4) made or received a digital payment, (5) own a credit card and (6) own a debit card.FindingsThe trend analysis shows a sustained, although small, improvement in women mobile money account ownership during the period, while the other indicators witnessed a decrease in 2017 and an increase in 2021, except for women credit card ownership which remained at the same level during the period examined. There is a significant positive relationship between women digital financial inclusion and economic growth. Internet usage has a significant positive effect on women digital financial inclusion in Nigeria.Practical implicationsGreater digital financial inclusion for women can accelerate economic growth in Nigeria. Policymakers should encourage investment in fintech and broaden access to the Internet to increase women digital financial inclusion and economic growth in Nigeria. Policymakers and practitioners in Nigeria should also work collaboratively to increase digital financial inclusion for women due to its potential to increase economic growth in Nigeria.Originality/valueExisting studies did not analyse the trends in women digital financial inclusion. Existing studies did not empirically analyse the impact of women digital financial inclusion on economic growth in Nigeria. The present study fills this gap in the literature.

EFFECTS OF DISAGGREGATED TAX REVENUES ON ECONOMIC GROWTH IN NIGERIA (1995-2023): ARDL BOUND TEST APPROACH

<p>Tax revenue has been a great tool of fiscal policy harnessed toward the economic development of a nation. Its different components have collective effects on the economic growth of a nation. This study examined the effects of disaggregated tax revenue on Nigeria's economic growth from 1995 to 2023. The data was sourced from the Central Bank of Nigeria and the Federal Inland Revenue Service databases. This study examined the effects of disaggregated tax revenue on Nigeria's economic growth from 1995 to 2023. The data was sourced from the Central Bank of Nigeria and the Federal Inland Revenue Service databases. Employing multiple regression analysis within an Autoregressive Distributed Lag (ARDL) model, the study assessed the impact of Value Added Tax (VAT), Companies Income Tax (CIT), Petroleum Profit Tax (PPT) and Personal Income Tax (PIT) on economic growth. The diagnostic tests confirmed the model's validity, with unit root tests showing that all variables, except PIT, achieved stationarity after differencing. The findings revealed that each tax revenue component positively influences economic growth. Based on these results, the study recommends enhancing the legal and regulatory frameworks for businesses, including regular evaluations and updates of tax laws and stronger enforcement mechanisms. It also underscores the need to strengthen anti-corruption efforts, promote property rights, uphold the rule of law, and prioritise good governance to foster public confidence and ensure the effective use of tax revenues for economic development.</p><p><strong>JEL: </strong>C32, H20, H24, H25</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0785/a.php" alt="Hit counter" /></p>

Macroeconomic variables as determinant of economic growth in Nigeria. A dynamic generalized method of moment approach

Macroeconomic variables as determinant of economic growth in Nigeria. A dynamic generalized method of moment approach

Impact of Foreign Capital Inflow on Economic Growth in Nigeria

Impact of Foreign Capital Inflow on Economic Growth in Nigeria

Analysis of Capital Market Development and Economic Growth in Nigeria

This study examined the analysis of capital market development and economic growth in Nigeria between 1986 and 2022. As a result, the real gross domestic product was used as the dependent variable while independent variables in the study included market capitalisation, all share index, value of transactions, total number of new issues and exchange rate. The Auto-Regressive Distributed Lag Modelling (ARDL) technique as well as the Engle Granger causality test were used to analyse the data obtained from the CBN statistical bulletin. The results emanating from the analysis reported that the total number of new issues had a positive impact on economic growth while other variables had insignificant effects on economic growth. Furthermore, the causality results revealed that all the stock market variables had a uni-directional causality running from each of them to economic growth. Therefore, it is recommended that new issues in the capital market should be seriously regulated as they can affect economic growth in a significant manner.