Economic Growth In Nigeria Research Articles

The Impact of Foreign Direct Investment and Oil Revenue on Economic Growth in Nigeria

Abstract Many emerging economies, particularly oil-rich countries such as Nigeria, have neglected the key drivers of growth, and consequently resulting in a decline in investment and employment. In the midst of this, the current study sought to examine the extent to which foreign direct investment and oil revenue impact Nigerian economic growth. The estimation was done using ordinary least squares (OLS) techniques, and the Granger causality test was used to determine the direction of causality between FDI, oil revenue, and economic growth using annual time series data from 1991 to 2019. Hence, recognising that annual time series are high-frequency data, all the variables were subjected to OLS assumptions. The empirical findings revealed that FDI and oil revenue significantly impacted growth. Accounting for the impact of economic activities reflected in the role of financial inflow and outflow on economic growth, a significant and positive relationship was found. This implies that international monetary transactions between entities captured in the current account balance are key determinants of growth in Nigeria. Further evidence revealed that variables such as real exchange rate, inflation and interest rates significantly determine economic growth in Nigeria. As such, this finding was further supported by their interactive effects, revealing an inverse and significant influence on economic growth. The Granger causality results show bidirectional causality between oil revenue and growth, as well as between oil revenue and foreign direct investment in Nigeria. The robustness test, which employs GDP per capita and GDP growth as proxies for economic growth, is consistent with empirical evidence. As a result, FDI and oil revenues are important drivers of Nigeria's growth, ceteris paribus.

Health Expenditure and Nigeria’s Economic Growth

Using time series data from 1999 to 2022, this study examines the impact of health financing on economic growth in Nigeria. The findings indicate that the previous year's productive activities have a positive effect on economic growth in both the short and long run. The current domestic government general health expenditure has a negative growth effect on economic growth, whereas the previous year's domestic general government health expenditure has a positive growth effect on economic growth. Domestic private health spending has a significant positive effect on economic growth. As a result, the importance of private health spending over government health spending in improving economic growth is reinforced. Thus, it was determined that health financing is required for long-term economic growth. As a result, the government should increase individual health spending capacity, increase health sector budgetary allocation, and ensure prudent and effective health sector budgetary implementation.

THE EFFECT OF DIRECT AND INDIRECT TAXES ON ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

Aim/Purpose: The tax structure and reforms that could give the optimal benefit is not always easy to determine, this is responsible for different tax laws, structures and reforms that are rather harmful to the economic growth. Therefore, the study examines the effect of direct and indirect taxes on economic growth: evidence from Nigeria. Design/methodology/approach: The study adopted Ex-Post Facto research design. Secondary data was collected from Central Bank Statistical Bulletin between 1995 and 2021. Descriptive statistics, ARDL regression analysis, and post estimation tests were used to analyzed the data. Findings: The study revealed that direct tax (LPPT & LCIT) had significant negative effect on economic growth. It also revealed that indirect tax (LVAT) had positive and significant effect on economic growth in Nigeria while LCED was found insignificant. The study therefore concluded that both direct and indirect taxes had significant effects on economic growth. Research Implications/limitations: Based on the findings, the study recommended that Value Added Tax(LVAT) should be encouraged such that more goods are brought into the VAT list in order to expand the tax net in Nigeria. Meanwhile, excise duties on local manufacturing firm sourcing for raw materials abroad should not be excessive to prevent local firms’ crowd out. The research is limited by the data available to the researcher. Originality/value/contribution: unlike some other studies which say otherwise, this study contributes to the literature by establishing that both direct and indirect taxes can contribute positively to economic growth in Nigeria if properly configured, monitored and controlled. KEYWORDS: Direct Taxes, Indirect Taxes, Economic Growth, Valued Added Tax (VAT), Custom and Excise duty (CED).

Human capital development and economic growth in Nigeria: a structural break perspective

The study examined human capital development and economic growth in Nigeria using secondary data obtained from CBN statistical bulletin for the period of forty years between 1981-2020. Agriculture (AGR), Civil-Service (CIVSER), Education (EDU), Health (HLTH), Manufacturing (MANU) and Transportation (TRANSP) sectors of Nigerian economy were used from 1981 to 2020 as proxies for expenditure on human capital development and independent variables for the studies while Gross Domestic Product (GDP) was used as proxy for economic growth and the dependent variable. Structural break analysis was used which shows no structural break occurrence in Nigeria within the period of study. It could also be seen that expenditure on human capital development on civil servants, education, manufacturing and health were found significant with exception of agriculture and transportation that were not significant in the least square results generated with the structural break analysis. Generally, with the R-squared and Adjusted R-squared of 96% and 95% respectively, it could be submitted that for forty years under consideration, there is smooth correlation between human capital development and economic growth in Nigeria. The Structural Adjustment Program (SAP) that was introduced in July 1986 and lasted till June 1998 was not strong enough to influence human capital development and economic growth. This was supported by the structural break graph and cusum graph.

Public expenditure on infrastructural development and economic growth: Evidence from Nigeria

This research investigated the nexus between public spending on infrastructural development and economic growth: evidence from Nigeria. As a matter of urgency, there is a need for the Nigerian government to invest in infrastructure for sustainable economic growth since infrastructural development touches all human fields of endeavors in one way or another. Notably, despite the country’s pole position in the economic ranking in Africa, Nigeria’s infrastructural state still falls short, which has led to negative economic growth in recent years. Therefore, it is pertinent in this study to unravel the causes and the missing gaps between increasing fiscal spending on infrastructure and slow economic growth in Nigeria. Interestingly, Autoregressive Distributed Lags and cointegration techniques were adopted to investigate whether there are long interactions between economic advancement and public funding of social amenities in the case of Nigeria. Furthermore, post-estimation tests were carried out to ascertain the validity of the models adopted in the study. The investigations from the study showed that short and long-run nexus subsists between government investment in infrastructure and economic growth in Nigeria. Hence, to address the problems underpinning this research, the study recommended that a proactive policy framework be used to promote economic growth via a redesigned fiscal framework in Nigeria. Also, protective laws and acts to safeguard the existing infrastructures should be well-pronounced and adopted by policymakers to expand the productive life span of social goods.

Public Expenditure and Human Capital Development in Nigeria.

Human capital development is a veritable tool for achieveing sustainable and inclusive growth in any economy. Since no nation grows without the contribution of the people therein, thus the roles in which the quantity and quality of a country’s labour force plays is pivotal. The focus of this study is to examine how public expenditure and economic growth could be used ehhance the human capital development of Nigeria. The analysed data was sourced from the Global Development Indicators covering the years 1981 to 2021. Dynamic Ordinary Least Squares (DOLS) regression technique was used. The method was used to test the complexity of the interactions between the various human capital components. Findings from the study revealed that Nigeria's economic growth is directly impacted by public spending on the different aspects of human capital development. Also, investments in health and education have a favourable and considerable impact on Nigeria's economic growth. The study further concludes that since human capital is a significant factor in determining economic growth; it could be recommended that the country should invest more in the quality of human capital through health and education to raise the standard of living for individuals and the welfare of society.

A Review on Islamic Corporate Governance and Performance of Islamic Financial Institutions In Nigeria

Islamic financial institutions are essential catalyst to economic growth in Nigeria and their performance assumed to be influenced by corporate governance practices. The purpose of this study is to review the role of Islamic corporate governance on the IFIs performance in Nigeria. Even though the relationships have produced significant scholarly impact, few studies have been conducted on IFIs performance in Nigeria. The content analysis was utilized. The findings of the study revealed that corporate governance is significant to IFIs’ performance in Nigeria. This study contributes to the existing literature on corporate governance practices and IFIs’ performance in Nigeria. Finally, the study’s implications for theory and practice, limitations, conclusion as well as the direction for future research are provided and discussed.

Asymmetric Effect of External Debt and Foreign Capital Flows on Economic Growth: New Evidence from Nigeria

This research examines the asymmetric nexus between external debt and foreign capital flows on economic growth in Nigeria. The paper employed the non-linear autoregressive distributed lag (NARDL) methodology to investigate the asymmetrical effect of external debt on real Gross Domestic Product (GDP) growth in Nigeria. The estimated long-run parameters for positive and negative shocks of external debt are -1.08 and 3.09, respectively. The outcome indicated that a percentage increase in external debt will result in a 1.08 decrease in real GDP growth and that a one percent decrease in external debt will result in a 3.08 increase in economic growth. This illustrates that the receptiveness of real GDP growth to positive values of external debt is different to that of negative values of external debt. The reaction of real GDP growth to negative values of external debt is larger than to positive value of external debt. This suggests that it is imperative for Nigeria to have manageable external debt and fiscal sustainability as this would bolster its real economic growth as well as urge the fiscal authority to make concerted effort towards curbing corruption and reducing inefficiency to the barest minimum, as these will enhance growth. Keywords: Nigeria, external debt, economic growth, asymmetry, foreign capital inflows JEL Classification: C22, E62, F43, O11

Econometrics Analysis of the Effect of Human Capital Development on Economic Growth in Nigeria

Despite arrays of empirical literatures on the impact human capital development has on the economic growth the debates is inconclusive with mixed outcome. Thus, the main objective of this study is to empirically examine the impact of human capital development on economic growth in Nigeria between the periods of 1999 and 2022. To achieve this said objective; time series secondary data was sourced from Central Bank of Nigeria Statistical Bulletin, 2022. Thereafter, Autoregressive Distributed Lag Regression Estimate (ARDL) analysis was conducted with the aid of E-view 10. Findings of this study reveals as follows; that government expenditure on education have positive and statistically significant impact on RGDP. Equally, government expenditure on health have statistically significant impact on RGDP. More so, life span have positive and statistically insignificant impact on RGDP. Again, total school enrollments (SER) have positive and statistically insignificant impact on RGDP. Lastly, this study find out that human capital development has statistically significant short run and long run relationship with economic growth in Nigeria between 1999 and 2022. Therefore, the following recommendations are suggested: first, that Nigeria government at all levels should ensure that priority should be placed on all the components or indicators of human capital development of the Nigerian citizens. Second, government effort toward increase government expenditure on education should be sustaining. Third, governments at all levels should increase the funding for health sector in order to ensure the citizens live healthy so as to be able to increase their productivity and afterward, contributes to economic growth. Fourth, governments’ efforts should be directed to wellbeing of her citizen in order to pro-long the life span Five, governments at all levels should formulate appropriate policy that will ensure that school enrollments should be at upward trend.

Transnational Trade and Economic Growth in Nigeria

The study investigated the impact of transnational trade on economic growth in Nigeria. To achieve the purpose of the study, transnational trade was disaggregated into: oil import, oil export, non-oil import, non-oil export, trade openness, foreign direct investment share of real gross domestic product and real effective exchange rate and regressed on economic growth proxied by growth rate of real GDP. Data on the variables above were sourced from the Central Bank of Nigeria statistical Bulletin and the World Bank database. The data were analysed using the Autoregressive and Distributed Lag (ARDL) approach due to the mixed order of stationarity of the variables. The results indicate that in the short run, non-oil export has positive and significant impact on economic growth while oil import and FDI share of real GDP have negative and significant effect on economic growth. The long run result shows that: oil import has direct and insignificant effect on growth while non-oil import, non-oil export, FDI share of real GDP and real effective exchange rate have negative and insignificant impact on economic growth. From the results the study concludes that transnational trade has serious implication on economic growth in the short run and less effect on economic growth in the long run in Nigeria over the period of this study. Based on these findings, the study suggests that policies should be geared toward increase in non-oil export, reduction in oil import, review of FDI inflow policies and trade liberalization as possible ways of improving the productive capacity of the Nigerian economy.

Econometrics Analysis of the Effect of Human Capital Development on Economic Growth in Nigeria

Econometrics Analysis of the Effect of Human Capital Development on Economic Growth in Nigeria

Financial sector development and economic growth in Nigeria

This study employs the Autoregressive Distributed Lag technique (ARDL) to investigate the impact of financial sector development on economic growth in Nigeria, considering previously overlooked variables. The findings from the Bound Co-integration Test indicate a long-run relationship between financial sector development and economic growth. Specifically, credit to the core private sector, market capitalization, total savings, and monetary policy rate are identified as drivers of economic growth, while credit to the government hampers growth. The study concludes that financial sector development facilitates economic growth by mobilizing and channeling financial resources effectively to the core private sector. To further promote economic growth, the study recommends the formulation of effective policies to enhance capital market activities in mobilizing long-term idle funds. Additionally, the government should ensure the judicious utilization of credit provided by the financial sector. This study contributes to existing research by reaffirming the influence of financial development on economic growth and considering crucial variables such as credit to the core sector, credit to the government, and monetary policy rate.

Reevaluating the linkage between trade openness and economic growth in Nigeria

Reevaluating the linkage between trade openness and economic growth in Nigeria

The impact of capital market on the economic growth of Nigeria

The study assessed how the capital market affected Nigeria's economic expansion. Specifically, the impact of the Nigeria stock exchange's total value of transactions (TVTs), all-shares index (ASIs) and stock market capitalisation (MCAP) on Nigeria's economic development was evaluated. Time-series data covering 1986–2021 was obtained in the study. Estimation methods used in the study’s analysis include descriptive statistics correlation analysis, ARDL co-integration analysis, parsimonious error correction model, variance decomposition and other post-estimation tests. Discoveries from the study showed that MCAP positively impacts economic growth in the long and short run. The ASI affects economic growth positively and insignificantly in the long and short runs, and the TVTs exerts a significant positive effect on the economic growth of Nigeria. Hence, the study suggested that the Security and Exchange Commission should explore measures, including technological integration in trading activities, to deepen development in the capital market. Keywords: All-share index, gross fixed capital formation, market capitalisation, real gross domestic product, total value of transactions;

Tax Compliance and Economic Growth of Nigeria: The Moderating Effect of Tax Morale

Getting the citizens to comply with tax payment is a herculean task for policy makers in developing economics like Nigeria. Therefore, the researchers investigated tax compliance and economic growth: Moderating effect of tax morale. The quantitative research design adopted was found to be appropriate for the quantitative research model that underpins the study at hand. Also, descriptive statistics was used to explain the study’s variables. The secondary data were sourced from the Statistical Bulletin of CBN and the National Bureau of Statistics (2022). A regression analysis was adopted to analyze the data so collected. Moreover, the panel regression is a veritable for re-occurring observation of the same variable for several times or periods. While the control variables are the Gross Domestic Product (GDP) and the Human Development Index (HDI), the components of tax compliance are proxied as logged revenue and as the independent variable. Moreover, tests for robustness were run, including simple regression, to validate the result's dependability while also taking into account all of the assumptions related to regression. Findings revealed that there is a negative significant effect of tax compliance (TAXCOMPL) on economic growth (HDI) of Nigeria, there is a positive significant impact of tax compliance (TAXCOMPL) on economic growth (RGDP) of Nigeria, also, there is a significant weak moderating effect of tax morale on tax compliance and Nigeria's economic growth. In the light of the above, the researcher made the following suggestions; government should provide essential services to the people to enhance voluntary tax compliance. To motivate tax payers, policy makers should translate taxes collected into human capital development to boost economic growth.

Insurance Premium and The Growth of Nigeria Economy (2007-2021)

The insurance industry's growing share of the global financial sector in both developed and developing countries has moved focus to the insurance-growth relationship. As a result, the study looked at the effect of insurance on Nigerian economic growth from 2007 to 2021. The study's goals were to look at the impact of life, and total insurance premiums on the growth of the Nigerian economy after the insurance regulations and reforms were implemented in 2006. Ex-post facto analytical research design was adopted in this work. The National Bureau of Statistics and the Central Bank Statistical Bulletin provided secondary data. The logarithm was used to alter the data. Ordinary Least Square regression technique was used to analyze the data. According to the findings, non-life gross premium has a considerable positive influence on real GDP, life gross premium has no significant effect on real GDP, and there is a significant positive association between total insurance gross premium and economic growth in Nigeria. Based on the findings, the general conclusion is that insurance and economic growth in Nigeria have a considerable positive association. The study recommends that the National Insurance Commission should adopt policies that promote the growth and development of the insurance industry as a whole. Individuals and families should be educated on the importance of life insurance in order for it to have a substantial impact on Nigeria's economic growth.

Liberalization and Economic Growth in Nigeria

This study looked at how Nigeria’s financial markets, economic growth, and liberalization interacted between 1986 and 2020. To account for both the short-run and long-run effects, the study used an econometric model of autoregressive distributed lag modelling. To check the time series qualities, several diagnostic tests were carried out, including descriptive statistics, a correlation matrix, and a unit root test. Inferences were drawn at the 5% significant level. The study’s findings confirmed that while trade openness had a statistically significant negative impact on economic growth [ =-1.4391; P -value = 0.0000], foreign ownership of shares had a statistically favorable impact [ = 0.3027; P -value = 0.0000]. Additionally, it was shown that during the studied years, inflation was negative but minor in relation to economic growth [ = -0.0032; P-value = 0.5870]. Based on the study’s findings, it was advised that an enabling macroeconomic environment be present to make use of the advantages that financial liberalization and the financial market have to offer. Financial liberalization requires a favorable macroeconomic climate, according to studies. Macroeconomic instability makes information asymmetry worse and makes the financial sector more vulnerable. If the macroeconomic indicators are stable, foreign investors will be more eager to make investments in Nigeria.

Effect of Government Expenditure and Value Added Tax on Economic Growth in Nigeria

The study seeks to examine the relationship between government expenditure and VAT on economic growth of Nigeria. Both the exploratory and ex-post facto designs were adopted in this study. The study population consist of 28 years period given the number of years the data was collected. Using a consensus sampling method, the 28 years are used as sample size. The study used the ordinary least square regression technique, specifically the Vector Autoregressive model for testing the hypotheses stated. The first findings revealed that, government expenditure has a positive insignificant effect on gross domestic product of Nigeria While, the second hypotheses tested revealed that, value added tax has a positive significant effect on gross domestic product of Nigeria. As a result, it is recommended that, government expenditure has not translated to the needed improvement in gross domestic product of Nigeria. This might be as a result of misappropriation of funds and corruption or the political will to supervise expenditure on development items. It is recommended that government to set in place financial discipline measures that regulates payment for contracts and other expenditure such that these funds allocated for development to spur GDP will be utilized. The government should either maintain the current VAT rates or increase the VAT rates. But they should ensure that social amenities are made available to cushion the effect of VAT increase for revenue generation purposes.

The Impact of Crop Production on the Economic Growth of Nigeria

Purpose: This study uses time series data ranging from 1981 to 2021 to analyze the impact of crop production on the gross domestic product (GDP) in the Nigerian economy. The study adopted ordinary least square techniques for the regression analysis. Approach/Methodology/Design: The variables of the study were subjected to unit root tests and were found to be stationary at first difference. Johansen co-integration was adopted and the result posits a short-run relation between the variables of interest (GDP, crop production (CP) as well as labor output (LO). Findings: The result from the error correction model shows that crop production has a positive and significant impact on economic growth in Nigeria. This study also finds that labor productivity has a positive and significant impact on economic growth. The study concluded that crop production has a positive and statistically significant impact on economic growth in Nigeria for the period under review. Originality/value: The study recommends that there is a need to improve the mode of production. This could imply having an optimal mix of labor and capital-intensive means of production in crop production to boost economic output.

Empirical Analysis of the Impact of Road and Construction Capital Expenditure on Economic Growth: Evidence from Nigeria

This study examines the impact of road and construction capital expenditure on economic growth in Nigeria. The study covered the period of 1981 to 2020 and employed the Autoregressive Distributed Lag Model (ARDL) to analyze the annual time series data collected from National Bureau of Statistics, BudgiT and Central Bank of Nigeria Statistical Bulletin. While the data for road and construction capital expenditure were collected from NBS and BudgiT database, the data for gross domestic product and commercial banks’ credit to the construction sector were obtained from CBN statistical Bulletin. The findings reveal that government capital expenditure on road and construction has a negative and statistically insignificant impact on economic growth in Nigeria. The result further shows that commercial banks’ credit to the construction sector has a positive but statistically insignificant impact on economic growth in Nigeria. The study therefore recommends that the government should ensure that allocations to this sector are properly monitored in order to enhance economic growth. Government should also encourage banks to give more loans for infrastructural development by reducing the bank rate.