Growth In Nigeria Research Articles

MONEY MARKET INSTRUMENTS AND ECONOMIC GROWTH IN NIGERIA

<p>This paper examined the effect of money market instruments on economic growth in Nigeria from 1980 to 2020. To achieve the above objective, secondary data on real gross domestic product, treasury bills, commercial papers, bankers’ acceptances and monetary policy rate were sourced from the statistical bulletin of Nigeria’s apex bank. The Error Correction Mechanism (ECM) was used as the main analytical tool. The result revealed that all the instruments of money market – treasury bills, commercial papers and bankers’ acceptances have positive effect on economic growth in Nigeria during the period of study. This means that money market instruments – treasury bills, commercial papers and bankers acceptances enhanced economic growth in Nigeria during the period of study. However, only bankers’ acceptances significantly (meaningfully) influenced economic growth in Nigeria during the period of study. What this suggests is that though treasury bills and commercial papers have contributed to economic growth in Nigeria from 1980 to 2020, but their contribution is very low to trigger a meaningful increase in economic growth. At the same time, Monetary Policy Rate has negative and insignificant relationship with economic growth in Nigeria during the period considered in this study. The study concluded that money market instruments - treasury bills, commercial papers and bankers’ acceptances have impacted on economic growth in Nigeria. Therefore, recommended that government should put in place policies that will increase the operations of money market in Nigeria in order to make short-term securities and loans available for investment. Deposit money banks and other operators in the money market should be encouraged to possess sufficient approved securities for trading in the money market. Government should ensure easy and effective communication between the operators in the money market. At the same time, there should be a downward review of the cost of raising funds in the Nigerian money market so as to enhance competitiveness and improve the attractiveness of the market as one of the major sources of raising funds for investment which in turn will increase economic growth in Nigeria.</p><p><strong>JEL</strong>: E44; G14</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0214/a.php" alt="Hit counter" /></p>

RECURRENT EXPENDITURE ON INTERNAL SECURITY AND ECONOMIC GROWTH IN NIGERIA

It is the responsibility of the government to ensure the internal safety of those living in the country. This is because it (the government) has the resources needed to deploy and ensure that the country is safe. To achieve internal safety, the federal government of Nigeria has continued to increase expenditure on internal security with a view of securing all those living in the country for investment and innovation. Thus, this paper investigated the relationship between government recurrent expenditure on internal security and economic growth in Nigeria from 1980 to 2022. The data for the study were sourced from Central Bank of Nigeria statistical bulletin. The Autoregressive Distributed Lag (ARDL) model was employed as the main analytical tool. The results of the analyses revealed the presence of a long-run association among the variables. The results also showed that in the long run, government recurrent expenditure on internal security has a positive and insignificant relationship with economic growth in Nigeria. At the same time, exchange rate has a positive and significant relationship with economic growth in Nigeria. Also, interest rate has a negative and significant relationship with economic growth in Nigeria. In the short run, government recurrent expenditure on internal security has a negative and significant relationship with economic growth in Nigeria. The exchange rate and interest rate have a positive and significant relationship with economic growth in Nigeria. The study concluded that the relationship between government recurrent expenditure on internal security and economic growth in Nigeria varies, as it could be positive (in the long run) or negative (in the short run). Therefore, the study recommended that recurrent expenditure on internal security which includes pay to officers, salaries to specialists within internal security forces or connected to internal security organizations, pensions of internal security personnel; and social services for personnel and their families; maintenance and operations; internal security research and development, medical services, etc. should be increased because in the long run it will provide a spin-off effect on the national economy and increase economic growth.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0014/a.php" alt="Hit counter" /></p>

Impact of Transport and Communication Capital Expenditure on Economic Growth in Nigeria, 1986-2022

One of the major impediments to the improvement of the transport and communication sector is inadequate capital spending. Despite the readiness of the government to upgrade the critical infrastructures, there still exist huge infrastructural deficits in Nigeria. Based on these, this study examines the impact of government capital expenditure on transport and communication on economic growth in Nigeria between 1986 and 2021. The study employed autoregressive distributed lag model as the method of analysis and the result reveals that in the long run, government capital expenditure on transport and communication (CEXTRC) with a coefficient value of 0.019, commercial banks’ credit to the transport and communication sector (CBCTRC) with a value of 0.025 and government revenue (GOVR) with a value of 0.065 have positive and significant impact on economic growth in Nigeria. The results also reveal that the inflation rate (INFR) with value of -0.16 has a negative and insignificant impact on economic growth in Nigeria. The short run result found that CEXTRC with value of 0.02, CBCTRC with a value of 0.04, GOVR with a value of 0.21 all have positive and significant impact on economic growth. INFR however shows a negative impact with a coefficient value of -0.28. The study therefore recommends that the government should prioritize the transport and communication sector by allocating more funds in order to provide good transport and communication systems such as railways, roads, waterways, internet, highways and so on. These would help to reduce costs of production, improve better accessibility to markets, create businesses and employment opportunities which will have a multiplier effect on economic growth, by enhancing it.

Health Outcome and Economic Growth: The Case of Malaria in Nigeria

This inquiry delved into the intricate interplay between health outcomes and economic growth, with a specific focus on the impact of malaria in Nigeria. This research endeavours to delve into the profound intricacies inherent in the interconnection between health outcomes and economic growth. The multifaceted exploration entails a meticulous scrutiny of pivotal determinants, encompassing the intricate tapestry of current health expenditure, gross capital formation, the prevalence of malaria in Nigeria, secondary school enrolment (spanning post-primary and secondary education), and the discerning trajectory of real gross domestic product, serving as an illuminating proxy for the profound dynamics governing economic growth. Econometric analysis is employed to investigate the study using an autoregressive distributed lagged model (ARDL). The findings show that current health expenditure has an inverse relationship with economic growth in Nigeria. Meanwhile, gross capital formation and secondary school enrolment, parameters used, showed a positive influence on economic growth in Nigeria. Thus, the policy proffered is that the federal government should invest deliberately in the health sector. There may be a need to double government expenditure in the health sector with a view to making the people have access to a quality healthcare system at a very cheap and affordable rate and also making social services such as education free from the primary to secondary level.

Financial Inclusion and Nigerian Economic Growth: An Empirical Investigation (2001-2021)

The aim of this study was to determine the impact of financial inclusion on economic growth in Nigeria. the study used an ex-post facto research design and investigated variables such as credit to the private sector (CPS), ATM transactions(ATM), and gross domestic product (GDP) as indicator variables for financial inclusion and economic growth, respectively. The Statistical Bulletin of the Central Bank of Nigeria, provided the annual time series statistics on private credit, ATM usage, and GDP from 2001 – 2021. Using the ordinary least square (OLS) approach, the data were examined. The study established credit to the private sector is positively related to economic growth and is statistically significant, However, ATM transactions have a positive and statistically insignificant relationship with economic growth in Nigeria The study suggests that monetary authorities implement measures to promote and increase the availability of credit to the private sector. r e.g., through reducing interest rates to levels that are conducive to growth objectives as this will favor economic development.

Impact of Oil Price Shocks and Economic Growth in Nigeria: Evidence from 1990-2021

This research explores the impact of oil price shocks on the Nigerian economy from 1990 to 2021, focusing on Real Gross Domestic Product (RGDP), Exchange Rate (EXR), and Balance of Payments (BOP). Utilising a Vector Autoregressive (VAR) model, the study reveals a positive impact of oil price shocks on RGDP, indication economic expansion during global crude oil price and contraction during decline, such as observed in the 2015 recession. Variance decomposition analysis demonstrate the variability contributions of oil price, exchange rate, and BOP to RGDP, emphasizing the significant role of the oil sector in Nigeria’s economic dynamics Additionally, Granger Causality/Block Exogeneity Tests reveals the directional causality between oil price and the key variables, emphasizing their substantial role in shaping economic and trade dynamics. accelerated economic diversification, investment in other sectors beyond oil, fostering export-led growth, building foreign exchange reserves to reduce the economic vulnerability to fluctuation in global oil prices.

Financial Development and Real Sector Growth: An Empirical Investigation of Nigerian Economy (1970-2022)

The implementation of several banking sector reforms in Nigeria were undertaken to enhance accessibility of finance to especially, the real sector of the Nigerian Economy, but surprisingly the sector is still bedevilled with inadequate access to finance especially from the deposit money banks that warehoused about 90% of the total financial sector assets. High nominal interest rate is the major cause for many firms to avoid bank-borrowing. These myriad financing challenges facing the real sector calls for the assessment of finance-growth nexus in Nigeria. In this regard, this study examines the long run relationship between selected financial development indicators and real sector growth in Nigeria over the period 1970-2022. Based on the nature of the study, correlational research design was adopted while secondary data source was mainly employed. Johansen and Juselius’ (1990) approach to cointegration and Vector’s Error Correction Modelling (VECM) was used to determine the extent of the relationship between the variables. The findings of the study revealed that in the short-run, liquid liabilities of deposit money banks, trade openness and credit to the private sector exert statistically significant influence on the real sector of Nigerian Economy while in the long-run, liquid liabilities of deposit money banks, trade openness, credit to the private sector, interest rate spread and government expenditure exert statistically significant influence on the real sector of Nigerian Economy. Conclusively, the study affirmed that the Mckinnon and Shaw (1973) theory of Financial Liberalisation can explain the paucity of funding to the real sector of the Nigerian economy. The policy implications of the study are; financial reforms should focus providing low-cost credit and liberalising the interest rate. Also, government and deposit money banks should direct their on-lending activities and credit facilities towards encouraging and financing entrepreneurs to increase investment and in turn real sector growth.

PETROLEUM ENERGY CONSUMPTION, TRADE OPENNESS AND FOREIGN DIRECT INVESTMENT: A TRIPARTITE APPROACH TO ECONOMIC GROWTH IN NIGERIA

Nigeria is an oil-rich country with a significant reliance on petroleum consumption. This study examines the tripartite effects of petrol final energy consumption, trade openness, and foreign direct investment on economic growth in Nigeria over the period 1990-2021. The unit root results and the number of data points at the disposal of this study permit the application of ARDL econometric estimation technique. The short-run and long-run estimated parameters indicate that there are impacts of petroleum consumption, Foreign Direct Investment (FDI) and trade openness on economic growth in both short-run and long-run in Nigeria. In the long run, petroleum consumption (0.3762%), trade openness (0.2272%) and FDI (0.1271%) have a positive and significant impact on economic growth. The coefficient of the error correction term is negative and statistically significant. This implies that the model is mean-reverting, and that the short run model tends to revert to its long-run equilibrium value over time in the event of disequilibrium at the speed of 63% per annum. The model is robust for policy making as it passed diagnostics tests, no evidence of serial correlation, no evidence of heteroskedasticity, no evidence of model misspecification, there is dynamic stability via Cusum and Cusum of Square and the residuals are normally distributed as evidenced from Jarque-Bera statistics. Based on the statistically significant positive impacts of petroleum energy consumption, trade openness and foreign direct investment, this study suggests that policies aimed at increasing petroleum consumption, FDI and trade openness are going to lead to increase in economic growth in Nigeria.

ECONOMETRIC ANALYSIS OF INFLATION AND MONETARY POLICY INDICES IN NIGERIA

This work studied the intricate web of economic relationships in Nigeria, exploring the interactions between exchange rates, inflation, money supply, and economic growth. The research unveiled valuable insights into the dynamics of Nigeria's economy and its implications for policymakers. The work attempts to explore the impacts of exchange rate fluctuation, increasing inflation rates increased money supply on Economic growth in Nigeria. The econometric technique of Error correction model (ECM) was relied upon as a major analytical tool to determine the relationship among the variables. Our findings unveiled a noteworthy connection between exchange rates and inflation, underlining the influence of exchange rate fluctuations on inflationary pressures. Additionally, money supply and economic growth were identified as significant factors affecting inflation rates, aligning with theoretical expectations. Notably, these variables collectively explained a substantial portion of the variation in real Gross Domestic Product (RGDP), signifying their collective influence on economic outcomes. The error correction model (ECM) underscored the statistical significance of the long-term relationships among these variables. In light of these findings, we recommend that policymakers in Nigeria pay close attention to exchange rate policies, monitor and manage money supply, and prioritize economic growth as integral elements in their efforts to control inflation and maintain economic stability. Continuous monitoring and analysis of these variables will be crucial for informed decision-making and effective economic management in Nigeria.

Impact of Government Educational Spending on Total Productivity and Economic Growth in Nigeria

Education is an essential tool for human development since it increases a country’s potential for economic growth and productivity. For this reason, policy officials in both advanced and growing nations, as well as education experts, have made education a top priority. Despite the existence of a theoretical relationship between growth and education investment, there is no empirical agreement regarding their relationship. Therefore, the purpose of this study was to ascertain how education spending affected Nigeria’s overall productivity and economic growth between 1981 and 2021. Penn World Table (9.5) and the Central Bank of Nigeria Statistical Bulletin (2021) were the secondary sources of data used in this study. Multiple regression analysis was used in the study to examine how government education investment affects overall productivity and economic growth. The study’s conclusions demonstrate, among other things, the favorable and substantial effects of public education spending on productivity and economic growth. It also demonstrates that health spending has a positive and considerable impact on productivity; yet, when it comes to its effect on economic growth, the impact is positive but negligible. The report suggests that in order to boost overall productivity and economic growth, the government should invest more money on education

Federation account allocation and economic growth in Nigeria

The study examined the impact of federation account allocation on economic growth in Nigeria for the period of 2004 to 2021 using federal, state and local governments’ shares of the federation account to measure federation account allocation. The study employed the ordinary least square regression technique in data analysis and found that federal government share of federation revenue has a significant negative impact on economic growth in Nigeria; State government share of federation revenue has a significant positive impact on economic growth in Nigeria, while Local government share of federation revenue has no significant impact on economic growth in Nigeria. The study therefore recommended that all levels of government should make efforts to embark on more developmental projects such as agricultural and industrial development with their share of federation revenue so as to positively impact and enhance the growth of the economy.

Global Uncertainty, Climate Change and the Unemployment-Economic Growth Relationship in Nigeria

This study investigates global uncertainty, climate change and the unemployment-economic growth relationship in Nigeria. The study utilised the autoregressive distributed lag (ARDL) estimation technique using quarterly data, 1990–2020. Findings indicate that global uncertainty and unemployment impact negatively economic growth both in the short run and long run. Also, climatic change variables employed in this study such as temperature and level of rainfall have a negative impact on economic growth both in the long-run and short-run. The moderating effects of global uncertainty and climatic variables on the unemployment-economic growth relationship were positive, though insignificant. The policy implication underlying the finding is that tackling economic uncertainty and climate change is necessary for solving unemployment problem and the attainment of sustainable growth in Nigeria. JEL Codes: C22, D80, Q25, E24, O40

Socioeconomic, Demographic, and Environmental Factors May Inform Malaria Intervention Prioritization in Urban Nigeria.

Urban population growth in Nigeria may exceed the availability of affordable housing and basic services, resulting in living conditions conducive to vector breeding and heterogeneous malaria transmission. Understanding the link between community-level factors and urban malaria transmission informs targeted interventions. We analyzed Demographic and Health Survey Program cluster-level data, alongside geospatial covariates, to describe variations in malaria prevalence in children under 5 years of age. Univariate and multivariable models explored the relationship between malaria test positivity rates at the cluster level and community-level factors. Generally, malaria test positivity rates in urban areas are low and declining. The factors that best predicted malaria test positivity rates within a multivariable model were post-primary education, wealth quintiles, population density, access to improved housing, child fever treatment-seeking, precipitation, and enhanced vegetation index. Malaria transmission in urban areas will likely be reduced by addressing socioeconomic and environmental factors that promote exposure to disease vectors. Enhanced regional surveillance systems in Nigeria can provide detailed data to further refine our understanding of these factors in relation to malaria transmission.

Effect of Foreign Debt on Economic Growth in Nigeria

Nigeria has been on a foreign debt a rising profile overtime, however it is not commensurable with her developmental purposes; hence this study examined the effect of foreign debt on economic growth in Nigeria for the period of 1986-2022. It used time series data sourced from Central Bank of Nigeria Statistical Bulletins and World Bank Development Indicators. Using descriptive statistics which shows that the data were normally distributed based on Jacque Bera Statistics and its Probability. It applied Augmented Dickey Fuller (ADF) test which revealed that I (1) and (0) order of integration exist among the studied variables which necessitated the adoption of Autoregressive Distributed Lag model (ARDL). The ARDL F- bounds test reveals that long-run relationship exist among foreign debt, foreign debt servicing, exchange rate, inflation rate and economic growth in Nigeria. Furthermore, long-run result showed that foreign debt and exchange rate have positive effect on economic growth and statistically significant in the model except exchange rate that was insignificant. On the part of short-run dynamics, ECM revealed the speed of adjustment that foreign debt variables and economic growth converged back to equilibrium point in 1year and 8 Months period. It also revealed that foreign debt, exchange rate have positive effect on economic growth in Nigeria and statistically significant. Whereas, foreign debt servicing and inflation rate have negative effect on economic growth and statistically significant in the short-run. Therefore, this study submits that foreign debt has positive and significant effect on economic growth within the period of the study. Finally, the study recommended the following policy options for the government, policy makers, and institutions regulators to formulate fiscal policy that will open ways for alternative sources of finance

Finametric Analysis of Financial Innovation and Economic Growth in Nigeria

The study empirically investigates the effect of financial innovation on economic growth in Nigeria using quarterly time series data spanning through the periods of 2010 to 2021 while historical data design was adopted for the study. The Gross Domestic Product was used as proxy for the dependent variable while Automated teller machine, Web banking, Mobile banking and Point of sale transactions were adopted as proxies for the independent variables. The Augmented Dickey Fuller (ADF), Phillips-Perron, Breusch-Pagan-Godfrey heteroskedasticity test, CUSUM test, Johansen cointegration test, Parsimonious Error Correction model and the fully modified Least Square were used for the data analysis. The outcome of the Johansen Cointegration and the fully modified least squares indicated evidence of long-run relationship between financial innovation and economic growth in Nigeria. From the foregoing, the study concludes that the adoption of financial innovation enhances economic growth in Nigeria. Based on the findings, the study suggests that appropriate policies should be formulated to build the confidence of customers regarding the reliability of financial innovation products.

Non-Oil Exports, Exchange Rate Management and Economic Growth in Nigeria

In Nigeria like most developing countries, especially the sub-Sahara African countries, exports are largely determined by factors other than a country's trade policy, such as world demand and prices with major commodity-exporting nations having high export/GDP ratios even if they have very restrictive trade policies. Oil and gas accounted for over 90 percent of Nigeria's foreign exchange earnings since the oil boom of the 1970s to date. The non-oil exports had shown significant positive trends of improvement beginning from 1960 to 1986 when SAP was introduced in Nigeria. At the instance of SAP, the flexible exchange rate policy was introduced in 1986 with the core objective to reduce over-dependency on imports and diversify the non-oil export base by immediately abolishing the marketing boards. This study empirically examines the effects of foreign exchange management and non-oil exports on economic growth rate in Nigeria. Annual data spanning 1981 to 2021 was used and the Autoregressive Distributed Lag (ARDL) estimation technique was employed in analyzing the data of the study. Findings of the study revealed that foreign exchange rate has a negative and significant impact on economic growth rate in Nigeria.

Public Expenditure and Economic Growth in Nigeria (2001 - 2021)

The study attempts to establish the relationship between government spending and GDP in Nigeria from 2001 to 2021. The multiple regression analysis's ordinary least squares (OLS) method was employed. The econometric research shows that the independent variables (recurrent spending, capital expenditure, domestic debt, foreign debt, and exchange rate) have a positive connection with the dependent variable GDP. The OLS findings also show that the overall model accounts for over 94.98% of the changes in the dependent variable (R2 = 0.9498). This means that the variable will have a considerable impact on the GPD. The study suggests that there is an urgent need to instill fiscal discipline in government expenditure by initiating effective internal control measures and more proactive economic management coordination and implementation, as well as discouraging all known productive activities and expenditures at all levels of government. There is also a need for the government to ensure that its expenditures are channeled appropriately to sectors such as infrastructure development in order to boost investment and output, with the expected outcome of price stabilization.

Effect of Private Foreign Capital on Economic Growth in Nigeria: 1999-2021

To facilitate economic growth, there must be an adequate level of savings and investments, and one avenue to improve the level of savings and investments is to attract private foreign capital. Therefore, this study assessed the effect of private foreign capital on economic growth in Nigeria from 1999-2021. The study proposed a model of economic growth using private foreign capital variables such as foreign direct investment (FDI), foreign portfolio investment (FPI), and remittances as predictors. The data were subjected to unit root tests and were found to be stationary in mixed order- at levels and first difference justifying the choice of the Autoregressive Distributed Lag approach for data analyses. The result of the ARDL test revealed that FDI is significant and positively influences economic growth (? = 2.84, p<0.05). Likewise, remittances are significant but have a negative contribution to economic growth (? = -0.71, p<0.05). FPI was found to not affect economic growth in Nigeria (? = 0.02, ns) in the long-run. Also, the estimated coefficients of the short-run relationship for the model revealed that FDI and remittances are significant in impacting economic growth with FDI contributing positively (? = 2.70, p<0.05) and remittances contributing negatively (? = -0.68, p<0.05). FPI still failed to influence economic growth in Nigeria (? = -0.33, ns). Therefore, the study concludes that foreign direct investment and remittances are significant predictors of economic growth. The study recommended that a stable and predictable policy environment needs to be in place to build foreign investors’ confidence.

Nexus between Labour Force Participation, Decent Work and Economic Growth in Nigeria

This work investigated the impact of labour force participation on economic growth in Nigeria for the period 1990 to 2021 using annual time series data on real gross domestic product (RGDP), male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR). The objectives are to examine the impact of male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR) on economic growth in Nigeria and to ascertain the causality relationship between male labour force participation rate, female labour force participation rate, and economic growth in Nigeria using ARDL Bounds Testing methodology. The result indicated that male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR) had statistically significant impact on economic growth in Nigeria in the short run. The result also revealed that, in the long run, male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR) had statistically insignificant impact on economic growth in Nigeria. A uni-directional causality relationship is found between male labour force participation rate (MLFPR) and economic growth (RGDP) in Nigeria over the period covered with the causality running from economic growth to male labour force participation rate. The result further indicated that there is no significant causality relationship between female labour force participation rate (FLFPR) and economic growth in Nigeria over the period covered. The study therefore recommended that government should design active policy for male and female participation in labour force and seriously empower women to participate in labour force in Nigeria.

An Empirical Investigation of the Nexus Among Foreign Portfolio Investment, Stock Market Growth and Domestic Investment in Nigeria

The study investigated the nexus among foreign portfolio investment, stock market growth and domestic investment in Nigeria from 1986 to 2022 using annual time series data. The study was anchored on the theoretical foundations of the foreign capital movement and the Tobin’s Qtheory of investment. The employed the Structural Vector Autoregressive (SVAR) to analyze the data. Findings of the study revealed that, there is a positive pass-through effect of foreign portfolio investment to domestic investment through the stock market growth in Nigeria. The study concluded that, foreign portfolio is important in stimulating domestic investment in Nigeria. Based on these findings, the study made the following recommendations. The government through the ministry of trade and investment in conjunction with the Central Bank of Nigeria (CBN) and the Security and Exchange Commission (SEC) should create market access by liberalizing the capital market by expanding the shareholdings of the foreign investors beyond the existing 10% to attract more inflows of foreign portfolio investment. Second, to retain foreign portfolio investment and avoid frequent investment rebalancing in the stock market, the government through the National Assembly should enact laws that ensure transparent regulatory framework in the stock market in the country. This would enable foreign investors to have a clear understanding of the rules and procedures governing their investments, as well as the regulatory framework in which they operate. This requires strong legal frameworks that safeguard investors’ rights, ensure fair treatment, and provide dispute resolution mechanisms.