Investment In Nigeria Research Articles

Inter-relationships among interest rates, savings and investment in Nigeria: An ex post analysis for 1975-1992 period with projections for 2010

This paper simulated the inter-relationships among interest rates, savings and investment in Nigeria between 1993 and 2010, using historical data on Nigeria spanning a period of 18 years (i.e. 1975-1992). By assuming diverse theoretical underpinnings and approaches, this study examined, in particular, what the connections and the directions of causality imply for interest rates policy, and savings mobilization and investments in Nigeria. Preliminary analysis carried out based on the historical data confirmed that the real interest rates had a negative effect on the investment rate in Nigeria between 1975 and 1992. Also, a positive association was found between the investment rates and the savings rates in Nigeria over the review period. This latter finding, thus suggest that persistent, low or negative real interest rates will discourage or fail to stimulate the savings rates, and may stifle qualitative investment in Nigeria. Ex ante forecasts beyond the historical data period further suggested that a marked decrease in the real lending rate would not result automatically into increased domestic investment. Similarly, a sizeable decline in the real deposit rate will not prevent a marked growth in total savings. Nonetheless, the gross domestic production should posit a 4.2percent growth rate in real terms between 1993 and 2010.

Deficit financing, private sector saving and investment in Nigeria

The study set out to investigate the relationship between public sector borrowing and deficit financing on the one hand, and private sector saving and investment on the other, in the Nigerian economy.Statistics on these variables were sourced from appropriate Nigerian data banks. Econometric approaches were enlisted for data analysis and results formed basis forconclusions

An examination of privatization policy and foreign direct investments in Nigeria

The Federal Government establishment of and subsequent growth of state-owned enterprises (SOEs) in compliance with the Keynesian theoretical paradigm, was for over two decades a fundamental component of development strategy in Nigeria. The SOEs were needed to provide social services and utilities and serve as engine of social and economic development. However, they served the purpose for which they were established for about a decade, and then their performance declined. The government of Nigeria then opted for privatization policy as a result of inefficiency and ineffectiveness of the SOEs. Privatization policy is a global principle and guideline that de invest public ownership of SOEs and given rise to private ownership. The aim of this paper therefore, is to investigate the socio-economic and legal implications of the Nigeria Privatisation Policy. The methodology employed in this paper is to review the existing literature on SOEs and privatization policy in Nigeria and beef it up with empirical investigation of 50 consumers of the product of the SOEs in energy sector. The result from the review of literature and empirical study revealed that privatization policy will enhance foreign direct investment in Nigeria subject to positive economic and technological milieu in the country. The findings also revealed that the grassroot (the poor) are likely to suffer as they will no longer enjoy subsidized products and services of the SOEs slated for privatization while conversely it will further enhance socio-economic condition/hegemony of the bourgeoisie. Finally, the legal review revealed that the privatized SOEs will undergo legal and structural transformations. Key words: Privatisation, policy, implications, consumers, investment, development, publicisation.

Exchange Rate Volatility, Inflation Uncertainty and Foreign Direct Investment in Nigeria

This article examines the effect of exchange rate volatility and inflation uncertainty on foreign direct investment in Nigeria. The investigation covers the period between 1970 and 2005. Exchange rate volatility and inflation uncertainty were estimated using the GARCH model. Estimation results indicated that exchange rate volatility and inflation uncertainty exerted significant negative effect on foreign direct investment during the period. In addition, the results show that infrastructural development, appropriate size of the government sector and international competitiveness are crucial determinants of FDI inflow to the country. This enquiry supports the commitment of policymakers to exchange rate and macroeconomic stability as key to FDI boom in Nigeria.

Foreign Direct Investments, Strategic Assets and Sustainable Development: A Critique of International Investment in Nigeria’s Steel Sector

Advocates of trade liberalisation that include the Bretton Woods Institutions (BWIs) and their adherents in the third world encourage foreign direct investment as a means of stimulating economic development in these economies. The arguments in favour of foreign investments are that it provides among other benefits, the required capital for development, facilitates technology transfer, and improve infrastructure development. Foreign direct investment is however criticised for its negative impact on the economies of the third world for a number of reasons. Multinational corporations (MNCs) that account for the highest contributors to FDI through private capital investment are accused of sharp practices that include exploitation, corruption, unethical business practices and environmental degradation. Through their activities, MNC engender loss of sovereignty and policy-making by host economies and loss of control over resources among other negative impacts. One instrument used by Foreign Capital to subjugate developing economies is the control of management of projects and programmes into which investments are made. Management control is therefore a primary objective of investors and this is usually accomplished right from the time agreements are reached between the host states and the investors. The study concluded that more often than not, the implication of management control over investment on developing economies include the desire to recoup capital invested at the shortest possible time, total dependence of the sector on investors for future development, reaping huge profits at the expense of local communities, damaging social networks and instigating political instability by the non-recognition and lack of respect for existing social conditions. Certain measures are therefore inevitable if FDI is to engender sustainable development.

Predicting Insurance Investment: A Factor Analytic Approach

Problem statement: In the last decade growing attention has been paid to the pattern of investments by the insurance industry and the question of how to evaluate such investments. In an economy where the capital market is huge and active, mathematical considerations come into play in the selection of investments to ensure yield maximisation. Approach: This study examined the use of factor analysis as an emerging technique for the analysis of insurance investment in Nigeria. Results: The proposed technique described a number of methods designed to analyze interrelationships within the investment variables in terms of few underlying but unobservable random quantities called factors. The factors were constructed in a way that reduces the overall complexity of the data by taking advantage of inherent interdependencies. Conclusion: The result obtained through this approach were promising and shows that two principal components of the factor loadings have a cumulative proportion of variance accounted for 94.5% of the total variations of the investments pattern.

Impact of Corporate Governance on Foreign Direct Investment in Nigeria

The United Nation's Millennium Development Goals for Africa suggest the need for these economies to attract substantial amount of foreign direct investments (FDI) to stimulate growth by investing in essential development infrastructures. However, investors are skeptical of opaque corporate governance structures both at firm and macro levels because of the attendant risk to their investments in an environment of weak legal system and poor human right records. Recent events indicate that a number of these economies have realised the importance of good governance systems and the need to signal transparency and accountability both at firm and country levels and have embarked on significant corporate governance reforms. In this paper we did a trajectory of corporate governance reforms in Nigeria and using time series data spanning over a decade we empirically investigated the determinants of foreign capital inflow arguing that in addition to the factors identified in the literature, FDI is positively related to improvement in corporate governance (CG). The paper further argued that although corporate governance prescriptions should be contextualised within the distinctive nature of the developing economies, this should not be stressed too strongly in order not to discourage potential foreign investors. The paper also attempted to identify future directions of the relationship between CG initiatives and FDI in Nigeria.

Stock Investment in Nigeria: Its Process and Benefits

Stock investment, which many people referred to as investing in shares is one of the topical issues among, businessmen, employees of both public and private sectors, students, farmers and even political office holders. In Nigeria, this organised system of investment has gained acceptance longtime ago in western part of the country. Thus, this paper aimed at discussing the concept of stock investment in Nigeria. The paper also explores some of the benefits of stock investment, among others include: return on investment by way of dividend payment; bonus issue; capital appreciation; use of share certificate/CSCS Statement for collateral and ability to consummate timely trade on securities of investors as at when required. The data for this paper are mainly from documentary sources. The paper concludes that in Nigeria, among the obstacle to stock investment is the low level of investors’ enlightenment on the benefits of the entire system, which has greatly affected the acceptance level negatively. The paper recommends that the regulatory agencies like the Nigerian Stock Exchange and Securities and Exchange Commission should continue to enlighten Nigerian especially, using major Nigerian languages on the benefits of stock investment.

Evaluation Of Democracy And Foreign Investment In Nigeria

This paper contends that a good indicator of confidence in the stability of Nigerian economy is the significant inflow of foreign direct investment. Foreign capital inflow to Nigeria in recent years has not been significant. The object of the paper is to examine how the current democracy contributed significantly to improvement in overall domestic and foreign investment in Nigeria. The assumption of the study are that the deregulatory policy of the current democratic government will not stimulate significant foreign investment. Using descriptive historical and content approach and chi-square methodology of statistical analysis, the study reveals that the new democratic government of president Obasanjo continues to create an enabling environment for domestic and foreign direct investment in Nigeria. The policy initiative has encouraged the agro-based industries and telecommunication. In the telecommunications, the introduction of GSM phones, wireless tech, and Internet Service has improved communication. Journal of Research in National Development Vol. 3 (2) 2005: pp. 87-95

Determinants of Foreign Direct Investment in Nigeria: Political Factor Effect Revisited

The paper examines the determinants of Foreign Direct Investment (FDI) in Nigeria during 1970 – 2006. cointegration techniques reveal that the major determinants of FDI are market size, real exchange rate and political factor thereby validating theoretical expectations. Furthermore, simulations using impulse response and variance decomposition analysis suggest that uncontrolled trade liberalization must be avoided.

Real estate security and other investment assets

PurposeQuite a substantial number of academic papers have examined the performance of both direct and indirect real estate relative to other investment assets. While these studies are valuable in the field of real estate investment performance measurements, a gap still exist in the literature on the comparative performance of investment assets in the various sectors of the stock markets of most emerging economies. This paper aims to fill the gap by providing analysis of the historical performance of real estate and other securities in the Nigerian capital market.Design/methodology/approachAnnual open and closing market prices of shares and dividend of sampled listed companies in addition to data on all share index (ASI), consumer price index (CPI) and yield on 90‐days T‐Bill were obtained for the period 1999‐2005. These were then analysed using descriptive, risk‐adjusted measures and regression models.FindingsThe empirical evidence suggests that while real estate outperformed the market on a nominal basis, it underperformed the market stock on a risk‐adjusted basis over the time period of analysis. Unexpectedly, real estate security did not provide a good protection against inflation and is also uncorrelated with the stock market.Originality/valueThis paper provides empirical evidence of the investment characteristic of indirect real estate investment in Nigeria. The results suggest that real estate security does not after all provide a good substitute to direct real estate investment.

Corruption and Direct Foreign Investments in Nigeria

Although bribery constitutes a substantial component of business conduct in Nigeria, we have illustrated that corruption and other related offences is not only peculiar to Nigeria. Like Nigeria, most developed countries are suffering from the same socioeconomic and political malaise, hence combating it require concerted effort by all. The paper notes that Corruption impacts negatively on the flows of direct foreign investment into Nigeria. The initiative by governments in Nigeria to reduce the incidence of corruption in the country has been discussed, and the problems and gains of such programmes elucidated. We recommend among others; that: all aspects of corruption and related offences must be clearly delineated and appropriate sanctions apportioned; the immunity granted certain public officers should be re-appraised; misappropriation of public money must be accounted for; the activities of multinational corporations must be closely monitored and all acts or corruption and other related offences exposed and sanctioned, and, foreign governments and international financial institutions should assist Nigeria in locating and repatriating looted monies from the country, by present and past public officers. SOPHIA: An African Journal of Philosophy Vol. 9 (1) 2006: pp. 91-100

Economics of soil conservation farming techniques in Abia State, Nigeria

Soil conservation is an important economic activity, which requires considerable investment in Nigeria. This study was conducted to evaluate the economics of soil conservation farming techniques in Abia State, Nigeria. Out of the three Agricultural zones in the state, Ohafia and Umuahia zones were purposively selected for a detailed study. From a list of eight Blocks, four from Ohafia and four from Umuahia zones, six ADP Extension Blocks were randomly selected from the two agricultural zones. From the blocks, a random sample of 120 farmers, 20 farmers per block, were selected and interviewed with semi-structured questionnaire. The study concentrated on factors relating to physical soil conservation techniques used, relevant economic characteristics, cost of conservation crops and associated costs and returns from these crops. The data collected were analyzed with descriptive statistics and profitability model. Results showed that about half of the farmers used mound technique while the next highest techniques used were ridge/mound and flat/minimum tillage techniques. The profitability results on the predominant soil conservation techniques used, showed mound technique being profitable than ridge/mound and flat planting/minimum tillage techniques. It was therefore, suggested that the use of mound technique should be encourage in the study areas. International Journal of Agriculture and Rural Development Vol. 7(2) 2006: 62-66

NIGERIA'S PRINCIPAL INVESTMENT LAWS IN THE CONTEXT OF INTERNATIONAL LAW AND PRACTICE

EKWUEME, KHRUSHCHEV, Nigeria's principal investment laws in the context of international law and practice, Journal of African Law, 49, 2 (2005): 177–206The enactment of the NIPC Act and FEMMP Act in 1995 represent a paradigm shift in Nigeria in three major areas of investment rule-making, namely, investment liberalization, investment protection and settlement of investment disputes. These statutes, especially the NIPC Act, contain certain investment-friendly provisions relating to foreign participation in Nigerian enterprises, guarantees against expropriation, nationalization and currency risk, as well as State-investor arbitration. Although the literature on the NIPC Act and FEMMP Act is vast, no in-depth scholarly study has been done on them in the context of international law and practice. Primarily, this article examines the provisions of these laws through a practical lens by studying them alongside the jurisprudence of the ICSID. It also explores specific constitutional and administrative law questions intimately related to the treatment of foreign investment in Nigeria. Finally, it assesses inflows of FDI into Nigeria and considers some of the impediments to foreign investment in the country.

The Legal Imperatives for Foreign Investment in Nigeria

The Legal Imperatives for Foreign Investment in Nigeria

New GTL method for lighter fractions

Natural gas is destined to become a larger part of Nigerian energy mix as the country seeks to guarantee the sustainability of its energy supply and benefit from greater energy efficiency and reduce energy-related costs. However, this continues to be a relatively slow process with large quantities of associated gas still being flared, as it has been since the 1950s. Natural gas' availability, versatility, accessibility, and more importantly its clean-burning characteristics when compared to other fossil fuels, is a substantial driver for its further utilisation in country. Nigeria is endowed with some 182 trillion cubic feet (tcf) of proven gas reserves, and that is mostly located in the Niger Delta. Nigeria's government is keen to develop local utilization of gas employing a range of available technologies. These technologies include gas to power using gas fed by transmission and distribution pipeline networks to supply combined cycle gas turbines (CCGT), compressed natural gas (CNG), gas to liquids (GTL) to supply transportation fuels, gas to fertilizer (GTF) and petrochemicals to support domestic industries, and export options involving liquefied natural gas (LNG), the West African Gas Pipeline (WAGP), and, in the future, other potentially large-scale export routes (e.g. to Europe through a Trans Saharan Gas Pipeline (TSGP). This paper reviews these gas utilization options, export potential, and government's policies that are stimulating gas investments in Nigeria.

Legal Issues arising from the Termination of Oil Prospecting Licences by the Nigerian Government

When it came to power in 1999, the present Nigerian Government cancelled several contracts, including oil prospecting licences, that had been set up by the previous military regime. This article assesses the policy implications of the cancellation of the contracts in terms of the country's ability to attract foreign investment and discusses recent attempts to encourage foreign investment in Nigeria. The article goes on to examine the legal nature of petroleum prospecting licences and argues for the contractual element to take precedence over the administrative element under the current liberal investment climate.

Macroeconomic Determinants of Domestic Private Investment in Africa: An Empirical Analysis

During the late 1970s and early 1980s, many African countries experienced a profound slowdown in economic growth. The growth rate of real per capita GDP fell from 0.4% per year during the 1973-80 period to 1.2% per year during the 1980-89 period.' The causes-internal and external-of Africa's economic decline and the strategies for restoring economic growth are much debated. Nevertheless, broad consensus has emerged on the importance of (i) increasing total investment and (ii) promoting private-sector development and increasing its share of total investment for long-term growth.2 It is widely recognized that gross domestic investment fell substantially in Africa during the 1980s and remains severely depressed across the region. The proportion of total domestic investment in GDP fell from 20.8% per year during 1973-80 to 16.1% per year during 1980-89. In some countries, investment has fallen to less than 10% of GDP-a level that is insufficient even to replace depreciated capital. In Africa, the minimum investment needed to replace depreciated capital is estimated at 13% of GDP.3 In recent years, there has also been a growing recognition among many African leaders, faced with new realism and pragmatism, that the private sector could play a significant role in economic development. The focus in the longer term of structural adjustment programs and sectoral reforms adopted by these countries is on creating more appropriate incentives and a framework for private-sector development as the basis for achieving sustainable economic growth. In addition, multilateral and bilateral institutions have developed new initiatives with priorities for private-sector development. In 1989, the International Finance Corporation, an affiliate of the World Bank, es-

Some Recent Amendments to Laws Affecting Foreign Investment in Nigeria

Some Recent Amendments to Laws Affecting Foreign Investment in Nigeria

Nigeria's Investment Laws and the State's Control of Multinationals

Nigeria's Investment Laws and the State's Control of Multinationals