Gross Domestic Product In Nigeria Research Articles

Impact of Fish Production on the Gross Domestic Product in Nigeria

This study set out to analyze the impact of fish production on the gross domestic product (GDP) in Nigerian by using time series data ranging from 1981-2021. In the method, Solow version of Neo classical theory was used for theoretical framework. The study adopted ordinary least square techniques for the regression analysis. Aside the two main variables of this study which is fish production and GDP, some control variables was also used (Labour productivity and gross fixed capital formation) to control GDP. The main contribution of this study therefore lies in the result that shows that fish production and GFCF has positive and significant impact on economic growth in Nigeria while labour productivity has negative impact on the Nigeria economic growth. This means that labour productivity does not contribute to economic growth in Nigeria. Hence, the study recommends that the Nigerian government should encourage fish production in order to bring more inflow of funds which will help to trigger economic growth. This as a matter of fact could be achieved by reducing the contamination of the seas and oceans for a better output of aqua products in Nigeria.

MONETARY POLICY AND ECONOMIC GROWTH OF NIGERIA: TIME-SERIES EVIDENCE FROM NIGERIA (1981-2022)

The study examined the impact of monetary policy on the economic growth of Nigeria; for the period 1981-2022. The study used Gross Domestic Product as a proxy for economic growth and employed it as the dependent variable; whereas, monetary policy rate, Cash Reserve Ratio, Treasury Bills, and liquidity rate respectively were used as the explanatory variables to measure monetary policy. Hypotheses formulated were tested using Autoregressive Distributed Lagged (ARDL) Bound co-integration test ECM. The study revealed that the Cash reserve ratio (CRR) and Treasury Bill Rate (TBR) were positive and statistically significant on Gross Domestic Product in Nigeria. Monetary Policy Rate (MPR) has a negative and is statistically significant to economic growth in Nigeria. While the Liquidity ratio had a negative and insignificant impact on Gross Domestic Product in Nigeria. The ECM result reveals that the error correction term is negative and statistically significant, and this corroborates and shows evidence of a certain return to the short-run equilibrium in the model. Therefore, the study recommends that monetary authorities should give priority attention to CRR and TBR monetary policy tools as they will produce a more desirable result in terms of economic stabilization.

Impact of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria

This study examined the impact of oil and non-oil tax revenue on economic growth in Nigeria. few works have covered oil and non-oil taxation and the relationship of petroleum profit tax (PPT), company income tax (CIT), value-added tax (VAT) and custom and excise duties tax (CED) on Real Gross Domestic Product of Nigeria. The study adopted an ex-post facto research design, and data were drawn from the annual reports of Central Bank of Nigeria and Federal Inland Revenue Services publications. Error Correction Model was employed to analyse the data collected after subjecting the series to unit root test and cointegration test. The result of the study showed that PPT with a coefficient of 31.71067 and p-value of 0.0004 and CED with a coefficient of 1.786145 and p-value if 0.0206 had a positive significant relationship with economic growth, while CIT with a coefficient of -14446.50 and p-value of 0.0066 and VAT with a coefficient of -23.33177 and p-value of 0.0001 had a negative significant relationship with economic. The study recommends that taxation be appropriately controlled to boost economic growth, lower inflation, and create jobs in the country. More attention to the channelling PPT and CED revenue collections to infrastructural developments will bring about the economic growth of the country.

Digital Financial Services and Economic Growth of Nigeria: 2006 – 2021

This study investigated digital financial services and economic growth of Nigeria from 2006 to 2021. The study specific objectives include investigation of the relationship between automated teller machine services and real gross domestic product; evaluation of the relationship between point of sales services and real gross domestic product; determination of the relationship between mobile banking services and real gross domestic product; and investigation of the relationship between web banking services and real gross domestic product from 2006 to 2021 in Nigeria. The study anchored on technology acceptance model (TAM) advanced by Davis (1989) and purposive sampling technique was adopted for the collection of quarterly secondary data from the Central Bank of Nigeria. The quarterly data collected were analysed using univariate, bivariate and multivariate analyses. The findings from the VECM indicated that automated teller machine services positively and insignificantly influence real gross domestic product in Nigeria; point of sales services positively and significantly influence on real gross domestic product in Nigeria; mobile banking services positively and insignificantly influences real gross domestic product in Nigeria; and web banking services positively and significantly influence on real gross domestic product in Nigeria. On the basis of the findings, the study concluded that digital financial services influence the economic growth of Nigeria. Hence, the study recommended amongst others that appropriate policies aimed at promoting and enhancing the availability and penetration of digital financial services should be implemented and made effective as this will increase real gross domestic product of the country.

TRANSNATIONAL CORPORATIONS AND ECONOMIC GROWTH IN NIGERIA

Prior studies have mainly attributed the reason for suboptimal economic growth rate in Sub-Saharan Africa as home-made majorly caused by misguided economic policies which have distorted the flow of Foreign Direct Investment (FDI) inflows to the region despite efforts of Transnational Corporations in the region and its growing presence in her core sectors. In view of these, the main objective of this study is to examine the relationship between Gross Domestic Product and economic growth in Nigeria. The study is anchored on Internalization Theory. The study relied on secondary sources of data obtained from CBN Statistical Bulletin and National Bureau of Statistics for the period 1999-2018. The data was analysed using descriptive and inferential statistics. The results revealed a significant positive effect of FDI inflows on Gross Domestic Product in Nigeria. Based on this, the study recommends among others that the need for government to woo more of transnational firms in the various sectors of the economy in order to gain the advantage of technology transfer to Nigeria.

Empirical Investigation of the Effect of Government Expenditures on Gross Domestic Product in Nigeria

Empirical Investigation of the Effect of Government Expenditures on Gross Domestic Product in Nigeria

The Impact of Digital Financial Services on the Nigerian Economy

This paper investigated the impact of digital financial services on the Nigerian economy, a study of Nigerian deposit money banks (DMBs). An expo-facto data analysis was carried out on independent variables of digital financial services: volume of ATM transactions (VATM), volume of POS transactions (VPOS), volume of WEBPAY transactions (VWBP) and volume of mobile banking (VMOB) regressed on Gross Domestic Product (GDP) as a dependent variable. These were obtained from the 2017 Central Bank of Nigeria (CBN) Statistical Bulletin using the ordinary least square regression (OLS). Findings from the study revealed that the volume of mobile banking, point of sales, and volume of automatic teller machines transactions have positive impact on the economy of Nigeria with the volume of automatic teller machines having the highest impact on the gross domestic product of Nigeria as a proxy of economic growth while the volume of web services has a negative impact on the Nigerian gross domestic product. The study therefore recommends improvement on the operationalization of the independent variables: (ATM, POS, WEB PAY and MOB) by the monetary authorities, Fintech (financial technology), and the DMBs (Deposit money banks) to enhance the dependent variable of gross domestic product in Nigeria as a global economy while putting more effort on the security, safety, and literacy of these innovations to eliminate or reduce the negative impact of the web services innovation on the Nigerian economy.

THE RELATIVE IMPACT OF MONETARY POLICY AND FISCAL POLICY ON GROSS DOMESTIC PRODUCT IN NIGERIA

The Nigerian economy has been frontally constrained by unsteady GDP growth rates with episodes of recession, and other unimpressive socio-political and economic indices over the past three decades. The situation has become aggravated by the identifiable cases of fiscal and monetary distortions, macroeconomic shocks and gaps in our budgetary provisions that are evident in recurring deficit budgets, fiscal crises, and unsustainable debt profile. The persistence of these problems has, unarguably, impacted negatively on the overall economic performance of Nigeria, and this begs the question of the potency of the use of monetary policy and fiscal policy in addressing our targeted macroeconomic problems. Spurred by the need to finding policy solutions to these problems, this study empirically examines the relative impact of fiscal policy and monetary policy in stimulating gross domestic product in Nigeria. The achieve the study objectives, annual time series secondary data spanning from 1983 to 2021 were empirically analyzed using Autoregressive Distributed Lag (ARDL) estimation after the unit root text revealed a mixed order of integration. The result of the long and short run dynamics revealed that Total Government Expenditure (TOGE) has a positive and statistically significant relationship with GDP in Nigeria. Also, Broad Money Supply (MPMS) and Open Market Operations (MPOM) have positive and statistically significant relationships with GDP within the study period. The study concludes that in the short and long run, monetary policy and fiscal policy play significant roles in stimulating GDP growth in Nigeria. However, in relative terms, fiscal policy is more potent than monetary policy in Nigeria within the review period. The study, therefore, recommends that for the attainment of macroeconomic goals and sustainable economic development effective coordination of monetary and fiscal policy tools should be encouraged for consolidated socio-political and economic gains.

Does Public Debt Matter for Economic Growth in Nigeria

Nigeria, as an emerging economy, has experienced significant challenges in sustaining its economic growth trajectory. The issue of excessive borrowing has become a prominent concern in recent years. This work therefore examined the impact of excessive borrowing on Nigeria’s economic growth using data from 1980-2022. The Autoregressive Distributed Lag test method of co-integration was employed for the analysis of short-run and long-run impacts of excessive borrowing on economic growth. The long-run result endorsed the findings that excessive borrowing impacts negatively on the economic growth of Nigeria. Thus, excessive borrowing depreciates the real gross domestic product of Nigeria. The study recommends that government should embark on borrowing only when there is low interest rate. Also, diversification of the economy should be the priority of the government as this will deepen the revenue sources of the nation to avoid being tempted to borrow excessively. In addition, fiscal and monetary policies should be properly harmonized to tackle macroeconomic instability which has led to high inflation rate, high interest rate and high exchange rate.

RELATIONSHIP BETWEEN FINANCIAL INCLUSION AND ECONOMIC GROWTH: RELATIONSHIP BETWEEN EVIDENCE FROM ARDL MODELLING

ABSTRACTThis study examines the impact of financial inclusion on economic growth in Nigeria from 1986 to 2020. The Zivot-Andrew unit root test was used to examine the statistical characteristics of the data. The Zivot Andrew unit root test shows that while Automated Teller Machines and foreign direct investment are stationary at level, the gross domestic product, commercial bank branches, and phone-based transactions are stationary at first difference. Bound test for long run shows that there is long run relationship among the variables of interest. According to the Auto Regressive Distributive Lag (ARDL) result, commercial bank branches in Nigeria have a short-term, positive, and significant impact on the country's gross domestic product. The Nigerian gross domestic product is negatively impacted by automated teller machines; however, this impact is negligible. The long run coefficient demonstrates positive and statistically significant influence of commercial bank branches on Nigeria's GDP. The Nigerian gross domestic product has positively and statistically significantly impacted by automated teller machines. Mobile phone-based transaction has positive and significant impact on gross domestic product in Nigeria. In Nigeria, foreign direct investment has a positive and statistically significant impact on GDP. Both in terms of sign and size, the error correction term (ECT) satisfies all theoretical and statistical requirements. The ECT coefficient is -0.522626 with a 5% level of significance. This shows that at 52.26 percent, the disequilibrium brought on by the shock in the years before is corrected to the long-term equilibrium in the present year. The Granger causality test demonstrates that while mobile phone-based transactions do not granger cause gross domestic product, commercial bank branches, automated teller machines, domestic depositors' money in banks, and foreign direct investment do. The studies recommend, the Central Bank of Nigeria should push commercial banks to increase the number of automated teller machines in each branch.Keywords: Financial inclusions, FDI, Economic growth ARDLJEL: P43.

The Effect of Foreign Capital Inflows on Economic Growth in Nigeria

Foreign capital inflows are major forms of resource transfer from the developed to the developing countries where they are usually found to be more productive and the result can be positive or negative. Hence, the work set out to empirically investigate the effect of foreign capital inflows and some selected macroeconomic variables on economic growth in Nigeria. The study applied the autoregressive distributed lag (ARDL) model on time series data for the period, 1981-2020. The findings from the paper indicate that foreign capital inflows: FDI, Gross fixed capital formation and personal remittances have significant impact on real gross domestic product in Nigeria. Consequently, the study recommends that government should continue to fine tune bilateral trade and investment agreements with other nations of the world.

Agricultural Financing and Economic Growth in Nigeria

The study examined the influence of agricultural financing on economic growth in Nigeria over the period 1981 to 2019. The objective of the study is to the impact of the long-term relationship between various forms of agricultural financing on Nigeria’s economic growth. The study employs the stationary test, the co-integration test, the error correction model and the Granger causality model. All variables were stationary at the first difference, and the co-integration test evidenced a long-run relationship. The study identified, in the long run, that; the agricultural credit guarantee scheme fund shows a positive and significant influence on the gross domestic product in Nigeria. The commercial bank loan and community –micro-finance bank loan shows a positive and significant influence on the gross domestic product in Nigeria within the reference period. In light of the findings, the study concluded that all the variables employed predict Nigeria’s gross domestic product. Furthermore, the granger causality results show a demand following a role as against supply leading role, revealing that increase in output level in Nigeria significantly support/promotes agricultural financial instrument. The study recommends that the Federal government should motivate commercial banks to provide adequate credit facilities to the Agricultural sector through moderate bank lending rates for ease of farming business in Nigeria. Proactive campaigns on the availability of credit facilities for farmers to enable them to have access to loans at a single-digit interest rate. This could be achieved through social media, door-to-door vibes, town hall meetings and market squares. Government should create an enabling environment for farmers through the provision of adequate security, pest control measures and seedlings.

Macroeconomic Aggregates and Oil Price Vagaries in Nigeria: An Impact Assessment

This study investigated the impact of negative oil price changes on macroeconomic aggregates in Nigeria from 1981 to 2020 using the autoregressive distributed lagged (ARDL) and the vector error correction models. Evidence from the findings showed that unemployment, foreign direct investment, and real gross domestic product are important determinants of oil price vagaries. In addition, there is empirical support for a positive relationship between oil price and unemployment on the one hand and a negative relationship between oil price and imports, foreign direct investment, and real gross domestic product on the other hand in both the short and long run. This implies that any decline in oil price is associated with a decrease in foreign direct investment and imports, and an increase in unemployment thereby resulting to the worsening of real gross domestic product in Nigeria during the period. In view of the findings, the study recommends a culture of uninterrupted savings of oil proceeds during episodes of oil price boom and by implication boosting of foreign reserves to provide sufficient cover for imports during periods of oil price decrease. In addition to this recommendation is the continuous clamour for a properly diversified economy away from oil dependence. In periods of negative oil price shocks which discourages investment, the government should encourage investors through various incentives such as tax holidays and havens, reduce cost of funds using the appropriate agency of government and ensure the provision of enabling environment and infrastructure (such as power, security, and roads) for investments to strive and improvement in the ease of doing business in the country. This will result in job creation; reduce unemployment and poverty, thereby improving the gross domestic product.

Impact of capital market performance on economic growth: An assessment from Nigeria

This is an investigation of the impact of capital market performance on economic growth in Nigeria from 2010 to 2020. The general objectives were to assess the impact of market capitalisation on Real GDP, to determine the influence of the value of trade on Real GDP. Ordinary least square (OLS) method was used for estimation to evaluate the impact of capital market performance on economic growth in Nigeria using secondary quarterly times series data from Q1 2010 to Q4 2020. Data was obtained from Nigeria Stock Exchange (NSE), National Bureau of Statistics (NBS), and Central Bank of Nigeria (CBN). Analysis revealed that there is a positive and significant level relationship between indices of capital market performance and economic growth measured by real gross domestic product in Nigeria and statistically significant at 5%. It concluded that the Capital Market positively and significantly impact economic growth in Nigeria. Further studies need to be carried out using different parameters to verify the consistency of all findings. This research is currently part of limited studies that investigated the influence of capital market performance on economic growth in Nigeria using quarterly time-series data.

Financial Intermediation and The Nigerian Economy (1986-2020)

This study examined the effect of financial intermediation on the Nigerian economy for the period 1986 to 2020. The objective was to probe the effect of Money Supply, Private Sector Credit, Lending Rate, and Gross National Savings on Real Gross Domestic Product in Nigeria over the period. The data analyzed was gotten from the 2019 Central Bank of Nigeria’s annual issue of the Statistical Bulletin and the 2019 issue of the world development indicators (WDI). ARDL bound cointegration test revealed a long run relationship between the explained and the explanatory variables. The adjustment coefficient CointEq(-1) showed that any initial distortions in the economy will attempt to adjust to the state of equilibrium at the rate of 88 % per annum. ARDL analysis indicated the effect of Money Supply on real GDP of Nigeria is positive and significant, Private Sector Credit and Lending Rate respectively have negative and significant effects, while Gross National Savings had a negative, but insignificant effect. The study concluded that although financial intermediation has a strong effect on Real GDP of Nigeria over the period, the process is highly flawed; and recommended stringent measures to further supervise bank credit administration if positive results must be achieved. Keywords: Financial Intermediation, Real GDP, Money Supply, Private sector credit, Lending rate, National Savings. JEL Classification Codes: E4, G2, O47 DOI: 10.7176/RJFA/13-12-05 Publication date: June 30 th 2022

COVID-19 Pandemic and Business Survival as Mediation on the Performance of Firms in the FMCG-Sector

COVID-19 pandemic has become a global issue causing the restriction of people and international trading and it has affected the loss of jobs and closure of firms all over the world. This paper aims to examine COVID-19 pandemic and business survival as a mediation on the performance of firms in the Fast moving consumer goods (FMCG) sector: insight for the future of business operation. Cross-sectional survey research design was adopted making use of stratified and simple random sampling technique as a guide to select participants while data analysis was subjected to exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation model (SEM). The findings show that COVID-19 pandemic has affected the performance and survival of businesses in Nigeria leading to the loss of jobs, firm productivity, customer retention, increase unemployment rate, closure of businesses and GDP of Nigeria as a whole. The research has been able to provide insight on the need for full integration of technology into all the firm operational process and for the firm to remain flexible to accommodate changes as imposed on the firm’s operations through environmental uncertainties such as the pandemic. The study is the first of its kind to examine the extent of the effect that COVID-19 pandemic have had on the survival, performance of businesses and the gross domestic product (GDP) of the country since its eruption and announcement in China and has been able to provide insight by exposing most organization’s weakness especially with regard to technology-adoption and its integration into all the firm operational capabilities as is the reason why most firm struggle to meets customer needs during the lockdown. Keywords: COVID-19 pandemic, performance, survival, customer retention, Nigerian economy, GDP

Contribution of Agriculture to the Development of the Nigerian Economy

Inspite of the fact that the agricultural sector has the potential to contribute significantly to the development of the Nigerian economy, the performance of the economy over the years has not been satisfactory. This study therefore examined the contribution of the agricultural sector to economic development in Nigeria. Specifically, the study investigated the impact of crop production, livestock, fishery and forestry outputs on economic development proxied by per capita income which is measured in terms of per capita real gross domestic product in Nigeria. The analytical techniques applied include Augmented Dickey Fuller (ADF) unit root test, Autoregressive Distributed Lag (ARDL) approach, error correction model (ECM) and Granger causality test. Annual time-series data from 1981 to 2020 were used for the study. The findings indicated that crop production and forestry outputs make strong contribution to the development of the Nigerian economy while the outputs of livestock and fishery make insignificant contribution to economic development of Nigeria. The Granger causality test indicated bidirectional causality between crop production output and economic development and a unidirectional causality from livestock output to economic development. To improve the contribution of agriculture to the development of the economy, it is recommended, among other things, that the government should increase its budgetary allocation to the agricultural sector while providing subsidized agricultural inputs to farmers.

Bayesian Analysis of Gross Domestic Product in Nigeria

Bayesian Analysis of Gross Domestic Product in Nigeria

IMPACT OF PETROLEUM ELECTRICITY AND HYDROELECTRIC AND CONSUMPTION ON ECONOMIC GROWTH IN NIGERIA

The study examined the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria. The research design adopted for the study was ex-post-facto. The data used for the study were drawn from secondary sources. The sources of data were from World Bank statistical database and CBN Statistical Bulletin (2020) for a period of between 1990 and 2019. Based on the research objectives and unit root test of the study, the Autoregressive Distributed Lagged (ARDL) and the Error Correction Model (ECM) were used to determine the relationship between hydroelectric and petroleum electricity consumption variables and economic growth indicators in Nigeria and the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria. The Error Correction Model (ECM) of the study and after examining the long-run impact of the independent variables in the model of the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria. The result shows that the ECM parameters were negative (-) and significant which are given -0.546. This means that 55 percent disequilibrium in the previous period is being corrected to restore equilibrium in the current period in the respective models. The ARDL long-run results on the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria revealed that hydroelectric and Petroleum Electricity Consumption have positive and significant impact on real gross domestic product in Nigeria. Therefore, the study recommended that the government should increase the hydroelectric and petroleum electricity consumption in Nigeria by reducing the unit price of the petroleum electricity consumption in Nigeria in other to increase the household and industrial usage for increase economic activities through the household and industrialisation in Nigeria through the firms and young industries in Nigeria which in turn increase the sustainable economic growth in Nigeria.

Agricultural sector and gross domestic product in Nigeria: Evidence from co-integration and vector error correction models

The main objective of this study is to examined the relationship between agricultural sector and gross domestic product in Nigeria using co-integration and vector error correction model. The data used in this study covers a period 1981-2020 obtained from National Bureau of Statistics (NBS). The study employed Johansen co-integration test, Vector Error Correction Model and Granger Casualty test. The results of the Johansen co-integration test revealed three co-integrating equation indicating the existence of long run relationship between agricultural sector and GDP. The finding also revealed an existence of short run relationship between agricultural sub-sectors and GDP. In addition, the Granger Casualty test revealed that there is a bi-directional relationship between GDP, forestry and fishing and, uni-directional relationship between GDP, crop production and livestock. Based on this findings, it was recommended that government should provide special incentives to farmers and also provides farming input to farmers at subsidized rate, this will go a long way in boosting agricultural activities there by making significant impact on gross domestic product.