Growth In Nigeria Research Articles

Cassava production and agricultural growth in Nigeria: Analysis of effects and forecast

Cassava production and agricultural growth in Nigeria: Analysis of effects and forecast

Effect of capital market on economic growth: An analysis using the autoregressive distributed lag (ARDL) approach

The limits testing method known as ARDL (Autoregressive Distributed Lag) examines Nigerian capital market improvement and monetary development. Relevant indicators about the capital market are taken into account during analysis while considering influencing factors as well. This study aims to explore the relationship between the capital market and financial development in Nigeria. The study’s theoretical framework, which is based on the ARDL framework, includes both short- and long-term dynamics. The data used in this analysis was collected from the Central Bank of Nigeria (CBN), the World Bank database, and the Nigerian Stock Exchange (NSE). In this study, the Nigerian All-Share Index, foreign direct investment, currency exchange rates, and inflation rates are the free factors, while the increase in GDP is the dependent factor. Through cointegration analysis using the ARDL framework, it was discovered that in Nigeria there’s a lengthy equilibrium correlation between economic expansion and financial development. The coefficients determined allow for a deeper understanding of how capital market factors affect economic growth over time. Furthermore, utilizing an error correction model derived from the ARDL analysis offers insight into both brief dynamics and modified speed toward reaching a lasting state of balance. By utilizing the ARDL approach, this study adds to the continuing discourse surrounding how capital markets impact growth in Nigeria. Its empirical evidence provides valuable knowledge for policymakers and stakeholders looking to utilize capital markets effectively toward achieving long-lasting economic development within the country.

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.

Ease of Doing Business and Entrepreneurial Growth in the Face of Global Economic Policy Uncertainty

This study investigates the impact of ease of doing business on entrepreneurial growth in Nigeria from 2010 to 2023, particularly in the context of global economic policy uncertainty. Using data from the Global Entrepreneurship Monitor and the World Development Indicator, the study applies an Autoregressive Distributed Lag (ARDL) model to analyze the relationship between ease of doing business factors, such as access to credit, contract enforcement, and regulation, and entrepreneurial activity. The findings show that while improvements in the business environment significantly foster entrepreneurship, economic uncertainty hampers its growth. The study recommends that Nigeria should enhance its business environment and create safety nets to mitigate the adverse effects of global economic uncertainties. These insights are valuable for policymakers aiming to promote entrepreneurship and economic resilience in developing countries.

Rule of Law, Regulatory Quality and investment Growth in Nigeria: An Impact Analysis

This study focus on rule of law, regulatory quality and investment growth in Nigeria employing ordinary least square method of estimation. A time series data spanning from 1997 to 2019. The economic growth was proxied with investment growth, while other variables include rule of law, regulatory quality, consumer price index, premium lending rate, trade openness, financial deepening, investment, gross investment and gross fixed capital formation. The finding of the OLS result shows that there is significant positive relationship between rule of law, regulatory quality and economic growth. Also, the result of the ECM shows that the speed of adjustment of the investment growth in the long run would be accounted for in short run by the magnitude of 27% and 40%. In the robustness check, negative significant relationship exist between rule of law, regulatory quality, investment and gross investment. Findings from granger causality test shows that there is a unidirectional causality between rule of law and economic growth, and also a bidirectional causality between regulatory quality and economic growth. Thus, improvement in the governance and institutional framework in Nigeria is suggested as policy recommendation.

Examining the Effects of Ailing Ajaokuta Steel Plant on Industrialization and Technological Growth in Nigeria

Nigeria, out of the exigency to feed her bulging population established a mega iron and steel complex in Ajaokuta, Kogi state to drive technological innovation for productive activities in the country. The steel project was designed to serve as a catalyst for growth and development of industries as well as other sectors of the Nigerian economy. While the existing literature is replete with studies focusing on the factors undermining the operations of Ajaokuta Steel Plant, the effects of underutilized Ajaokuta Steel Plant on the Nigerian economy has received less academic attention. It is against this backdrop that the study examined the effects of ailing Ajaokuta Steel Plant on industrialization and development of technology in Nigeria. The study relied on documentary method of data collection and qualitative descriptive method of data analysis. The study revealed among others that the ailing state of Ajaokuta Steel Plant has adversely affected the growth of indigenous technologies and industries in Nigeria. The failure of the Ajaokuta Steel Plant to produce iron and steel products for the creation of indigenous means of labour has made the Nigerian economy an outrageous consumer of foreign techs and manufactured products. This has not only halted country’s quest for industrialization but has truncated its ability to manufacture what it consumes.

Women digital financial inclusion and economic growth in Nigeria

Women digital financial inclusion and economic growth in Nigeria

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

Harnessing traditional institutions for sustainable leadership and good governance in Nigeria

The subject of traditional institutions cannot be undermined in the project of sustainable leadership and good governance in Nigeria given the locus and crucial role of the institution in the past and modern Nigeria. It is incontrovertible that traditional and aboriginal values are held highly with reverence and respect in virtually all parts of Nigeria. To discountenance their relevance will be too costly in any leadership-cum-governance discourse. Towns, villages and cities were duly recognized and protected as the harbingers of culture, mores, norms and values. The contemporary government structure in Nigeria duly recognizes the importance of traditional institutions by having a Commission for Local Government (LG) and Chieftaincy Affairs at all State levels. Moreover, 5% of allocations to LGs go statutorily to the tradition institution in the State. Hitherto, the recklessness and abuse of the native authority system of local government administration in the 1950s–60s had led to the moderation and reforms of the system, which has continued to affect traditional institutions to date. To this end, the paper argues that traditional institutions hold so much values and cohesive practices as well as socially integrative potentials for nation-building so much that the State can leverage on them for sustainable leadership and overall good governance. The methodology adopted for collecting data for this study is descriptive research method, which relies on primary direct observation (eye-witness) account and relevant secondary materials such as texts, journal articles, official documents and internet materials. The data collected were analyzed and presented using thematic analysis and tables. National and international data already analyzed were found essential to drive home the argument of this study. The outcome of the paper provides useful information on how traditional institutions serve as a veritable platform for sustainable leadership and good governance in Nigeria. The paper concluded that traditional institutions, with its rich culture, values and practices, possess sufficient merits to propel the country towards sustainable leadership that would concomitantly induce economic, technological and political growth in Nigeria.

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.

THE RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION, TRADE, AND ECONOMIC GROWTH IN NIGERIA

The study examines the relationship between electricity consumption, trade, and economic growth in Nigeria. The results show that increased electricity consumption positively impacts economic growth in both the short and long run. Foreign direct investment (FDI) also has a positive and significant effect, indicating that higher FDI leads to long-term economic growth. Trade openness was found to contribute to environmental growth. The study recommends that policymakers strengthen the manufacturing sector to better harness the benefits of trade openness and reduce its negative impacts

IMPACT OF RENEWABLE AND NON-RENEWABLE ENERGY ON FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH

This study examines the impact of renewable and non-renewable energy on foreign direct investment (FDI) and economic growth in Nigeria from 1980 to 2017. The objectives are to assess how renewable energy influences economic growth, FDI, and the interplay between renewable and non-renewable energy. Using techniques such as the Augmented Dickey-Fuller test, Co-integration, and the Auto Regressive Distributed Lag (ARDL) model, secondary data from the World Bank were analyzed, focusing on GDP, renewable energy, non-renewable energy, and FDI. The findings indicate that GDP positively influences renewable energy in the long run, while non-renewable energy has a negative effect. In the short run, non-renewable energy and GDP significantly impact renewable energy, while FDI shows no effect. Recommendations include fostering a stable political environment to attract FDI and providing incentives like subsidies and tax holidays to promote trade and investment in renewable energy. Effective macroeconomic management is essential for translating economic growth into increased renewable energy consumption in Nigeria. KEYWORDS: Renewable Energy, Non-Renewable Energy, Foreign Direct Investment and Economic Growth.

Is climate change hindering the economic progress of Nigerian economy? Insights from dynamic models

This study investigates the link between climate change and economic growth in Nigeria from 1961 to 2022. To provide a robust analysis that facilitates a nuanced examination of this dynamic relationship, this study employs state-of-the-art econometric approaches, including autoregressive distributed lag (ARDL), fully modified least squares (FMOLS), novel quantile autoregressive distributed lag (QARDL), and time-varying causality. The empirical results of this study are as follows: (1) the impact of climate change on economic growth is not felt in the short run. However, climate change negatively influences economic growth in Nigeria in the long run, (2) the elasticity of climate change increases across the conditional quantile economic growth, (3) unidirectional causality from climate change to economic growth across different time dimensions. These empirical outcomes advocate for a proactive and adaptive policy framework, emphasising the need for the Nigerian government to adopt climate-smart policies.

Comparative impact of fiscal and monetary policies on economic growth in Nigeria

This work examined the comparative impact of fiscal policy and monetary policy on economic growth in Nigeria over the period 1981 to 2021 using annual time series data on real gross domestic product, broad money supply, government expenditure, total government revenue, and interest rate (lending rate). The objectives are to determine whether the fiscal policy or the monetary policy impacts more on economic growth in Nigeria and to ascertain the causality relationship between fiscal policy, monetary policy and economic growth in Nigeria over the period. The study employed ARDL Bounds Testing methodology in determining whether long run relationship exists between fiscal policy (proxy government expenditure and total government revenue), monetary policy (proxy broad money supply and interest rate (lending rate) and real gross domestic product. The result indicated that broad money supply representing monetary policy has positive relationship with and statistically significant impact on economic growth in Nigeria over the study period as indicated by its t-statistic and probability values of 6.436365 and 0.0000 respectively. Fiscal policy variable (government expenditure), on the other hand, has negative relationship with economic growth and statistically significant impact on economic growth in Nigeria as indicated by its t-statistic and probability values of -2.427968 and 0.0234 respectively. From the result, a change in money supply (monetary policy) affects economic growth positively while a change in Fiscal policy variable (government expenditure) affects economic growth negatively. Besides, the coefficient of monetary policy (0.457048) is greater than fiscal policy coefficient (-0.300554) and implies that monetary policy impacts more than fiscal policy impacts on economic growth in Nigeria. Therefore monetary policy does impact more than Fiscal policy on economic growth in Nigeria over the period studied. The result further indicated that there is no significant causality relationship between fiscal policy, monetary policy and economic growth in Nigeria over the period covered as indicated by the probability values of both fiscal and monetary policy variables employed and economic growth. The study therefore recommends that policy makers should focus more on monetary policy than fiscal policy so as to enhance economic growth since monetary policy has more concern with economic growth than fiscal policy. Keywords: Economic growth, fiscal policy, monetary policy, ARDL, Bound Test, Causality, Nigeria.

Does External Debt Cause Growth? A Comparative Study Of Nigerian And South African Economies

Research Aims: The purpose of this study is to ascertain the effect of external debt on economic growth and the causal relationship that exists between external debt and growth in South Africa and Nigeria between 1981 and 2022. Design/methodology/approach: To this end, VECM, VAR and pairwise Granger causality were used to analyze the data. on GDP, external debt, debt servicing, government expenditure, and exchange rate. . Research Findings: The results show that the effect of external debt on economic growth is insignificant in the near term, having positive influence in South Africa and negative impact in Nigeria. However, the long-term effects are detrimental and noteworthy in South Africa. Also, the results on causality indicate that, in Nigeria, there is no causal relationship between external debt and economic growth, but in South Africa, there is a unidirectional relationship between GDP and external debt Theoretical Contribution/Originality: This study concludes that, whereas exchange rates are the primary predictor of economic growth in Nigeria, external debt neither causes nor determines economic growth in South Africa or Nigeria. Rather, causation flows from economic growth to external debt exclusively in South Africa. Therefore, this study recommends that the government of both countries should channel their available resources towards developmental projects that will spur growth. Keywords: External debt, Causality, Growth, Emerging Market, GDP

CORRUPTION AND ECONOMIC GROWTH IN NIGERIA: DOES DATA SUPPORT “GREASE THE WHEELS” OR “SAND THE WHEELS”?

The study investigated the relationship between corruption and economic growth in Nigeria using data from 1996 to 2020. The research employed the Fully Modified Ordinary Least Squares (FMOLS) method and Granger causality tests. The FMOLS results indicated that both gross fixed capital formation and urbanization significantly and positively influence economic growth in Nigeria, whereas the corruption index has a negative and significant effect, aligning with the "sand the wheels" theory. The Granger causality analysis showed a unidirectional relationship, where gross fixed capital formation Granger-causes GDP growth rate, and GDP growth rate Granger-causes both the corruption index and the relative corruption ranking in Nigeria. Based on these results, the study recommends that policymakers prioritise transparency and good governance by implementing e-governance initiatives to reduce bureaucratic hurdles and opportunities for corruption. Furthermore, there should be consistent monitoring and thorough evaluation of the impact of anti-corruption strategies on economic growth and development to ensure their effectiveness.

Impact of Foreign Direct Investment on Economic Growth in Nigeria (1980 - 2018)

Impact of Foreign Direct Investment on Economic Growth in Nigeria (1980 - 2018)

A financial inclusion model for Nigeria: Standardizing advisory services to reach the unbanked

Financial inclusion remains a significant challenge in Nigeria, where a large segment of the population, particularly in rural areas, lacks access to formal financial services. This review proposes a standardized advisory services model designed to bridge the gap between financial institutions and the unbanked. The model aims to address key barriers, including low financial literacy, lack of trust in financial systems, and limited access to technology and infrastructure. By integrating financial literacy programs, digital advisory platforms, and community-driven partnerships, the model offers a comprehensive solution to expand financial inclusion in Nigeria. The review explores the demographic characteristics of Nigeria’s unbanked population and the underlying reasons for their exclusion from the formal financial system. It highlights the role of standardized advisory services in building trust and providing accessible financial education, savings, and credit opportunities. Drawing from global examples such as Kenya’s M-Pesa and India’s Jan Dhan Yojana, the model incorporates best practices for outreach and engagement. A critical component of the model is its reliance on digital and mobile technology to deliver services to underserved communities. Additionally, the review emphasizes the importance of a strong regulatory framework, with the Central Bank of Nigeria playing a key role in monitoring and enforcing standards. The model also outlines challenges to implementation, including cultural resistance, technological infrastructure gaps, and sustainability concerns. By promoting financial inclusion, this advisory services model is expected to foster economic empowerment, poverty reduction, and overall economic growth in Nigeria. The review concludes with policy recommendations, urging collaboration between public and private sectors to ensure the scalability and success of the model across diverse regions. Keywords: Financial Inclusion, Advisory Services, Nigeria, Review.

Impact of Environmental Degradation on Economic Growth: Testing the Environmental

Looking at the contribution of economic activity in the country, it is seen to add robustness to growth and development, but in contrast give birth to greenhouse gases (GHGs), such as CO2 CO2 which is also called carbon dioxid, CH4 which is also called methane, and N2O represent nitrous oxide. The factors influencing Greenhouse gas emissions include rising of population, upward movement of per capita output and consumption, infrastructural development made about infrastructures, human character, and innovation. However, if mitigation efforts are not enough, climate change would most likely lead to a slowdown the upward movement. Thus, the study examined the relationship between economic growth and environmental degradation using the Autoregressive Distributed Lag model and examined the impact of environmental degradation on economic growth in Nigeria from 1990 to 2022 using that lens. Based on the estimated ARDL regression result, environmental degradation as determined by carbon dioxide emissions (kt) and economic growth are negatively correlated. The negative indication indicated that economic growth will decline by roughly -0.455% and -0.893% over the medium and long terms, respectively, as carbon emissions rise. The findings indicated that there is validity to Nigeria’s Environmental Kuznets Curve, which demonstrates how environmental deterioration impedes economic progress. Similarly, a positive indication indicating a one-period lag in carbon emissions showed that, in the short term, economic growth increases by around 0.948% in tandem with rising carbon emissions. Thus, the paper illustrated an inverse U-shaped interaction between environmental degradation and economic growth, with healthy economy initially related with increased emissions. However, the majority of the control variable estimates deviate from theoretical expectations. On the other hand, a positive and statistically significant one-period lagged coefficient of trade openness suggests that trade openness looks to support and encourage economic growth in the short run. Similarly, during the period under consideration in Nigeria, the short-run economic growth is positively and strongly correlated with the one-period lagged coefficient of gross fixed capital formation. The report suggested boosting energy efficiency in the world’s energy mix in order to lower greenhouse gas emissions, which are the main contributors to climate change. Therefore, in order to prevent the development of closed-form relationships that could result in a slowdown in economic growth, Nigerian government agencies that are responsible for implementing national and international environmental rules should proceed with caution.