Policy Makers In Nigeria Research Articles

Twin Deficit Hypothesis and Macroeconomic Fundamentals: New Evidence from Nigeria

This study tests for the validity of the twin-deficit hypothesis in Nigeria for the period 1981 – 2018 and further seeks to ascertain the role of macroeconomic fundamentals in driving this hypothesis using the non-linear autoregressive distributed lag (NARDL) model and structural vector autoregressive (SVAR) model. With evidence from granger causality test, the results obtained for the NARDL model support the validation of the twin-deficit hypothesis for the Nigerian economy. As long-run equilibrium exists, it was further established that the twin deficits were majorly driven by the degrees of financial and trade openness in Nigeria as no substantial shock effects of the twin deficits were traceable to any of the macroeconomic fundamentals. It is therefore recommended that policy makers in Nigeria should properly sequence the degree of economic openness to ensure the overall health of the economy.

Rethinking the Economic Development Implications of Trinity Policy Trade-offs in Nigeria: A Focus on GNI Per Capita Growth

This study deepens the understanding of the dynamic relationship between trinity policy trade-offs and GNI per capita in Nigeria between 1980 and 2020. The external reserve is introduced to the empirical model in recognition of its role in stimulating the effectiveness of trinity policy goals. Data for the variables were sourced from the National Bureau of Statistics, CBN Statistical Bulletin and World Bank World Development Indicators (WDI) among others. Descriptive statistics, Phillips-Perron unit root test, bounds cointegration and ARDL model as well as Tado-Yamamoto causality form basis for data analysis. The unit root test results reveal that the variables are mixed integrated. This necessitates the application of the bounds cointegration test. As observed from the results, a long-run relationship exists between GNI per capita and trinity policy indexes. It was found from the ARDL estimates that monetary autonomy and capital mobility have a significant positive effect on GNI per capita in both the short and long run. This suggests that more monetary policy sovereignty and openness of the financial architecture yield positive benefits of improved living standard. The result further showed evidence of long-run causality flowing from external reserve to GNI per capita. This finding explains why policymakers in Nigeria have continued to prioritize external reserve build-up for sterilized intervention and stimulating policy effectiveness. Given the findings, this study recommends that policymakers should strive to maintain appreciable monetary autonomy and gradually collapse restrictions on cross-border capital flows to improve economic well-being in Nigeria.

Microfinance Banks, Small and Medium Scale Enterprises and COVID-19 Pandemic in Nigeria

Corona virus otherwise known as COVID-19 has left indelible marks on both human beings and businesses globally. When the virus emerged in Wuhan, China in late 2019, it was viewed as China`s problem. Nobody ever envisioned that the novel virus could spread and result into global pandemic within few months. Meanwhile, the aftermath effects of COVID-19 on various socio-economic activities might not be different from global financial crisis of 2008, which left no economy unaffected. Against this backdrop this study was carried out with a view to investigating the impact of microfinance credit on entrepreneurship development amidst COVID-19 pandemic using some selected small and medium enterprises engaging in essentials such as food and consumables, oil and gas and pharmaceuticals in Sango-Ota industrial estate of Ogun state, Nigeria. Primary data were collected with the aid of well-structured set of questionnaire from 100 SMEs which was done purposively. After subjecting the collected data to a rigorous analysis, it was discovered that over 90% of enterprises under investigation used microfinance credit for their businesses during COVID-19 pandemic. Similarly, the study submitted that micro credit increased the stock of goods of the selected and at same time orchestrated a moderate rise in profit for the majority of the SMEs selected for the survey. Consequently, the important findings that originated from this study brought the following recommendations for the policy makers, financial institution and all the stakeholders engaging in SMEs in Nigeria that credit from micro finance has the capacity to facilitate the development of entrepreneurship through expansion of outputs and profitability of SMEs in Nigeria. And as such, the policymakers in Nigeria should create an enabling environment that will facilitate microfinance institution to provide better credit and other financial facilities to SMEs in the country.

Crude Oil Exports and Economic Growth in Nigeria

This study was motivated to verify the relevance or otherwise of the Export-Led Growth Hypothesis with empirical evidence of crude oil exports in Nigeria. Data were collected from the Central Bank of Nigeria Statistical Bulletin. The study's objective was addressed with the application of Engle Granger Cointegration Test, Error Correction Model, and Impulse Response test. The following are the findings of this research work: The model's error correction coefficient indicates that the model accounted for 81% of disequilibrium caused by an error in the long term. The lag values of RGDP have a negative but insignificant relationship with RGDP. This implies that past economic growth leads to a reduction in present economic growth in Nigeria. In the same vein, crude oil exports and RGDP have a positive and significant relationship, confirming that crude oil exports highly drive that economic growth in Nigeria in the short run. At the same time, the reverse is the case in the long run. Hence, oil exports support the presence of the Export-Led Growth Hypothesis only in the short run in Nigeria. Furthermore, the dynamic interaction between oil exports and economic growth was examined within the context of impulse response analysis. Shocks to oil exports generated a significant positive response initially, which gradually decreased over the forecast period. It could be concluded that oil exports have a crucial impact on the Nigerian economy. Because of the above findings, this study makes the following recommendations for the policymakers in Nigeria; promoting oil exports could be considered a viable policy in increasing Nigeria's economic growth. Also, it is imperative to state that the policymakers should factor in time lag to ensure appropriateness in the timing of policies formulation.

HUMAN CAPITAL DEVELOPMENT, ENERGY CONSUMPTION AND CRUDE OIL EXPORTS IN NIGERIA: IMPLICATIONS FOR SUSTAINABLE DEVELOPMENT

This study examined the roles of human capital development, energy consumption and crude oil exports in driving sustainable development goal eight (8)-sustainable economic growth in Nigeria. To achieve this, the authors utilized annual data from 1990 to 2018 which were sourced from World Data Atlas, International Energy Agency, WDI and the Central Bank of Nigeria Statistical Bulletin respectively. Autoregressive Distributed Lag technique of estimation was adopted for the data analysis. Consequently, the principal findings of this research work could be presented as follows; electricity power consumption and growth rate of the real GDP has an insignificant positive relationship with each other. The implication of this is that energy consumption in Nigeria has an inadequate capacity to drive a sustainable economic growth in the country. Similarly, oil exports have a significant positive relationship with the growth rate of the real GDP. This means that economic growth sustainability of Nigeria is highly dependent on oil exports. Conversely, government expenditure on education sector has a significant negative relationship with the growth rate of the real GDP. Also, expenditure of government on health sector has a negative but insignificant relationship with the growth rate of the real GDP. This implies that human capital development in Nigeria lack the capacity to ensure a sustainable economic growth. In view of the above, this study makes the following recommendations for the policymakers in Nigeria and by extension developing countries, any time the goal of these policymakers are sustainable economic growth, the development of human capital through adequate funding of educational and health sectors should be embarked upon. In the same vein, the policymakers should provide uninterrupted electricity supply for enhancement of maximum outputs in the country.

Impact of Bond Market Development on the Growth of the Nigerian Economy

Abstract Research background: The traditional function ascribed to a modern financial institution is to mobilize resources among the two units (surplus and deficit) of the economy. This can be achieved when financial institutions wake up to this responsibility and act as the pillar upon which other institutions can rely on. Purpose: This study examined the impact of bond market development on the growth of the Nigerian economy from 1986–2018. Research methodology: Data were analysed using the co-integration bounds test approach while the robustness of the estimates was also checked. Results: Government bond exhibited an insignificant positive relationship; corporate bond and value of bond traded were positive and statistically significant (prob. <0.05) while bond yield indicated a negative relationship with the growth of the Nigerian economy. Novelty: The study found that corporate bond and the value of bond traded were the major variables that increased the depth of bond market development in Nigeria. Therefore, policymakers in Nigeria should encourage the issuance of more corporate bonds to further enhance the efficiency of bond markets development.

Examination of form not substance: Rethinking the patent examination process in Nigeria

In an age where knowledge assets play significant roles in the economic development of nations, the patent system has become one of the essential drivers of technological and economic advancement. Thus, the essence of examining inventions is to ensure good quality of patents granted by a patent office and to ensure that such patent applications satisfy the novelty, inventive step, and industrial application criteria. It is standard practice in most countries that patent applications by patentees go through examination processes before they are granted patents. Local patent rules usually guide such examination processes. The Nigerian patent system is not an exception to such practice. However, it suffices to submit only necessary documents for inspection by officials of the Nigerian Patent Registry before a patent is granted. This process of registering patents in Nigeria, which is the depository process of examination, is not thorough compared to the substantive method of examination. The substantive procedure is lacking in the Nigerian patent system. The need for a substantive process of examination in Nigeria is what this article discusses. The article recommends a mix of both the depository and the substantive process of examination in Nigeria, as practised in some countries to issue quality patents that would aid technological and economic growth in the country. The article also concludes that much more needs to be done by the government and policymakers in Nigeria in terms of funds, human resources, and other things to ensure the institution and sustenance of a substantive method of examination of patent applications.

Examination of Form Not Substance: Rethinking the Patent Examination Process in Nigeria

In an age where knowledge assets play significant roles in the economic development of nations, the patent system has become one of the essential drivers of technological and economic advancement. Thus, the essence of examining inventions is to ensure good quality of patents granted by a patent office and to ensure that such patent applications satisfy the novelty, inventive step, and industrial application criteria. It is standard practice in most countries that patent applications by patentees go through examination processes before they are granted patents. Local patent rules usually guide such examination processes. The Nigerian patent system is not an exception to such practice. However, it suffices to submit only necessary documents for inspection by officials of the Nigerian Patent Registry before a patent is granted. This process of registering patents in Nigeria, which is the depository process of examination, is not thorough compared to the substantive method of examination. The substantive procedure is lacking in the Nigerian patent system. The need for a substantive process of examination in Nigeria is what this article discusses. The article recommends a mix of both the depository and the substantive process of examination in Nigeria, as practised in some countries to issue quality patents that would aid technological and economic growth in the country. The article also concludes that much more needs to be done by the government and policymakers in Nigeria in terms of funds, human resources, and other things to ensure the institution and sustenance of a substantive method of examination of patent applications.

English

This paper examines the link between natural resources wealth, agriculture, oil and economic growth in Nigeria. We use co-integration method to examine the relationship between the economic growth and economic indicators in control in this study. The result shows a significant relationship between economics growth and economic indicators in the long-run. However, the relationship between economics growth and economics indictors does not exist in the short-run. The policy makers in Nigeria should take this result into consideration when they implement a policy. They have to ensure that the policy closes the gap in order to have a positive effect on the economic growth in the short-run and long-run.   Key words: Economic growth, co-integration, natural resources.

A temporal study of the responsiveness of foreign private investment to exchange rate in Nigeria, 1981 – 2018

This study examined the response of foreign private investment flows to fluctuations in foreign exchange rates in Nigeria. The empirical analysis was conducted using ordinary least square Multiple Regression on E-view 10 Econometric model for the period 1981 to 2018. Preliminary analysis was carried out with Jarque Bera normality test and Johnson’s transformation test to confirm normal distribution of data and the transformation is effective. A negative relationship between foreign exchange fluctuation and foreign private investment is found. Also, that Bank lending interest rate, market capitalization, external debts and trade openness have a significant effect on the foreign private capital flows in Nigeria while foreign exchange rate fluctuation does not significantly affect private investment. From the findings of the study, we recommend i) That policymakers in Nigeria should seek and implement appropriate exchange rate that will boost foreign private investment; ii) Ensure enlarge trade relationship by allowing international organizations and citizens of other countries access to the financial market in the domestic economy; iii) They should discourage external borrowing to significantly reduce debt service burden.

TECHNO-ECONOMIC ASSESSMENT OF WIND TURBINES IN NIGERIA

Wind energy potentials of some selected high altitude and coastal areas in Nigeria are assessed for possible utilization for the generation of electricity. The main aim is to provide pragmatic insight that will enhance the investment in wind energy conversion systems in an optimal manner. The data used in this present study were obtained from the Nigeria Meteorological Agency, which includes average wind speeds per day of four locations across the country, measured at the anemometer height of 10 metres over a period of 11 years. With the sites classified based on their wind power densities, the capacity factor estimation value was used to select the most suitable turbine for the selected sites, and the present value cost method was employed to estimate the unit cost of energy of the turbine at various hub-heights. The results obtained from this study reveal that Jos, Kano and Ikeja are economically viable as well as having excellent wind resources integration into the grid, while P/H is viable for a standalone application. The outcome of the study provides useful information that will aid renewable energy policymakers in Nigeria for wind energy development.Keywords: Capacity factor estimation, Wind turbine, Electricity generation, Techno-economyJEL Classification: C63DOI: https://doi.org/10.32479/ijeep.10030

IMPLICATIONS OF FEYERABEND’S ANARCHISTIC PHILOSOPHY FOR NIGERIAN EDUCATIONAL POLICIES

Education is a very important variable of economic growth and development. It could be said that the rate of growth of an economy is directly proportional to the quality of education meted on the populace. This is the reason every society strives to educate its citizens. However, Nigeria remains backward in terms of education delivery. There are millions of unemployable graduates rooming her streets searching for jobs. Though many reasons could be pointed as the cause of this, this work beams its searchlight on policymaking and implementation. It argues that if the right policies are made and dutifully implemented, the quality of education would improve. Using the tool of Feyerabend’s anarchism, the work analysed the Nigerian Policy of education, pointing at areas of weaknesses and recommending action points for government and policymakers. It concludes that if Feyerabend’s anarchism is made to guide policy-making in Nigeria, educational progress would ensue.

Digital Integration into the Nigerian Educational System: Challenges and Prospects

In the last ten years, there have been conscious attempts by every nation to integrate digital tools into their educational system especially at the tertiary level. Nigeria is no exception. The policymakers in Nigeria at the federal and state levels have felt the need to integrate Information Communication Technology (ICT) in their educational policies. It is felt that in this globalized world the country must embrace digital technology to enhance support teaching and learning environment. It is the belief that in the present globalized world every nation should embrace digital technology to be competitive and also have knowledge-based society as well as information society or as Castells, (1996) has put it “Network Society” and also Perevozchikova, et.al. (2020). The COVID-19 pandemic has also made it imperative that countries should advance towards e-learning. The future of education is therefore intertwined with Information Communication Technologies (ICTs). The Nigerian government has realized that the new normal or post-COVID-19 pandemic environment has made the traditional method of teaching and learning outmoded. It is therefore in this regard that most policymakers in Nigeria are advocating an advance towards ICT hence there is what we can call paradigm-shift in terms of teaching and learning in Nigeria now. This paper discusses the Nigerian guidelines on digital education highlighting the challenges and the prospects of digital education. It concludes that digital education must be embraced because the post-COVID-19 pandemic has made it impossible to continue with the traditional mode of teaching/learning.

Reinvestigating Foreign Direct Investment and Poverty Nexus: any Difference with the Nigerian Human Development?

This study examined the relationship between FDI inflows and poverty reduction vis-à-vis Human Development Index in which majority of past studies have not fully explored in Nigeria. Data were extracted from secondary sources with application of ARDL and Bounds test technique. The major findings that came up in this study are as follows; FDI net inflows had an insignificant negative relationship with GDP per capita that measures welfare of the people in terms of the socio-economic benefits in Nigeria. Similarly, net FDI inflows had a negative but insignificant relationship with literacy rate, which measures welfare of the people in terms of educational attainment. Whereas, net FDI inflows had an insignificant positive relationship with life expectancy which measures welfare of the people in terms of health. Consequently, steaming from the principal findings that emerged in this work, the following recommendations are therefore made for the policy makers in Nigeria. When the Nigerian policy makers want to address poverty holistically in the country, the human development variables should be targeted. Also, policy measures that would stimulate FDI inflows into the country should be encouraged, and FDI inflows in the country should be utilized maximally in order to bring poverty reduction in the country in the short run.

Environmental Mapping of Potential Habitats for Anthropod Vectors of Trypanosomiasis in Northern Nigeria

This paper presents analysis of a cost effective methodology using remotely sensed data analysed within a geographical systems (GIS) environment for mapping out potential habitats of anthropod vectors responsible for trypanosomiasis in northern Nigeria. These geographical locations are areas with high population of livestock in Nigeria. Animal Trypanosomiasis is considered as an arthropod-borne viral disease which is endemic in about 37 countries of the sub-Saharan Africa and in particular northern Nigeria. This anthropod-borne viral disease remains a threat to both humans and livestock in many communities, and the outbreak of such diseases is shown to relate to fluctuations in the changing climate mostly experienced whenever there are changes in global precipitation which also relates to changes in sea surface temperatures otherwise known as “El Niňo Southern Oscillations” (ENSO). Monthly Satellite imageries in the form of Normalised Difference Vegetation Index (NDVI) at 250 meters spatial resolution obtained from NASA-MODIS/CMD were subjected to principal component analysis utilizing the standardized principal components within a GIS environment and supplemented with Digital Elevation Model (DEM) data in the analysis. Results from the maps showed that pockets of probable habitats of these anthropod vectors responsible for trypanosomiasis mostly located around forest islands characterized by dry woodland and savanna, and in some cases around gallery forests and few lowland and riverine areas. This study provides baseline information for policy makers in Nigeria and other stakeholders as a cost effective measure for mapping potential habitats for anthropod vectors responsible for trypanosomiasis in Northern Nigeria. Further studies are encouraged so as to clearly understand the magnitude and actual locations of the habitat of this vector and find ways of targeting their locations for minimizing or even eradicating these vectors.

Public debt and inflation nexus in Nigeria: An ARDL bounds test approach

Inflationary tendencies of public debt have been the cause of an unsettling debate among policymakers in Nigeria. Using the autoregressive distributed lag (ARDL) framework, this study attempts to investigate the impact of total public debt on inflation in Nigeria for the period 1983–2018. The cointegrating regression results reveal evidence of a stable long-run relationship among inflation, total public debt, money supply, interest rate, economic growth, trade openness, and private investment in the presence of structural breaks. Empirical results show that the impact of public debt on inflation is statistically insignificant, irrespective of whether the regression was in the short or the long run. Hence, the study concludes that inflation in Nigeria could be driven by other factors other than public debt.

COVID-19 pandemic and economic crisis: the Nigerian experience and structural causes

PurposeThis paper analyses the COVID-19 situation in Nigeria, its effect on the economy and the structural causes that worsened the coronavirus (COVID-19) crisis.Design/methodology/approachThis paper uses simple descriptive analysis to examine the COVID-19 situation in Nigeria.FindingsThe findings reveal that the economic downturn in Nigeria was triggered by a combination of declining oil price and spillovers from the COVID-19 outbreak, which not only led to a fall in the demand for oil products but also stopped economic activities from taking place when social distancing policies were enforced. The government responded to the crisis by providing financial assistance to businesses and a small number of households that were affected by the coronavirus (COVID-19) outbreak. The monetary authority adopted accommodative monetary policies and offered a targeted 3.5 trillion loan support to some sectors. These efforts should have prevented the economic crisis from occurring but it did not. Economic agents could not freely engage in economic activities for fear of contracting the COVID-19 disease that was spreading very fast at the time.Practical implicationsThe implication of the study is that policymakers should pay attention to three areas of the economy for economic and structural reform. One, policymakers should introduce economic reforms to diversify the economy and reduce Nigeria's dependence on revenue from crude oil export. Two, policymakers in Nigeria should invest in healthcare infrastructure to improve the ability of the national health system to withstand the outbreak of contagious diseases. Three, there is also a need to build appropriate digital infrastructure to facilitate the transition from “face-to-face” business activities to a “digital or online” business activities, which can help to grow the digital economy. Also, policymakers should use legislation to create a robust social welfare safety net for all citizens particularly for unemployed citizens and poor households.Originality/valueThis is the first paper that looks at the economic implication of COVID-19 in a West African country.

Corporate Social Responsibility (CSR): An Elixir for Socioeconomic Development in Nigeria

Nigeria appears too slow in harnessing domestic resources towards meeting her socioeconomic needs. However, CSR has been found in several contexts as important means of realizing much–needed expectations of development. Nigeria is currently at the level of perceiving CSR merely as one-off philanthropic thing focusing merely on environmental protection. This study employs various means such as success stories of others, methods adopted for realization of vibrant CSR initiative in their own experience, and some time-tested examples of road map towards international best practices in order to arouse the curiosity of policy makers in Nigeria. The study identified certain structural- functional elements working in tandem for effective realization of CSR in Nigeria. These include Synergy of CSR and Corporate Governance (CG), a viable CSR organization, and institutionalization or culture of monitoring and control. Policy measures recommended include creating CSR into an agency or commission for effective take-off.

Does life expectancy, death rate and public health expenditure matter in sustaining economic growth under COVID-19: Empirical evidence from Nigeria?

The current health pandemic that has plagued the global of which the global south‐Nigeria is not insulated from is the premise for this empirical investigation. The present study relies on recent annual time‐series data to conceptualize the hypothesized claim via Pesaran's Autoregressive distributed lag techniques. Empirical findings from the bounds test traces the long‐run relationship between public health expenditure and economic growth over the study span. However, unlike previous studies, we introduce life expectancy and death rates in the model framework. Although health expenditure is not significant, empirical results show that a 1% increase in life expectancy and death rate increases and decreases economic growth by 3.85 and 1.84%, respectively. This suggests the need for Health Policymakers in Nigeria to implement active strategies that reduce the death rate, which is a blueprint for active engagement in the face of a global pandemic such as COVID‐19.

AGRICULTURAL SECTOR AND EMPLOYMENT GENERATION IN POST SAP ERA NIGERIA: AN EMPIRICAL PERSPECTIVE

This study investigated the role of agriculture in generating employment in post SAP era Nigeria. This study was motivated as a result of lack of sufficient studies regarding this subject matter in the recent time. Data were sourced from the CBN Statistical Bulletin and Cointegration, DOLS and Granger Causality Approach was used to address the objective of this study. Consequently, the major findings that emerged in this study are as follows: agricultural sector contributed to employment generation in the country, though not significant in the post SAP era. Similarly, inflation rate has a positive impact on employment generation in the economy. However, the contribution of agricultural expenditure to the employment generation was negative in the country. Furthermore, one way feedback flows from employment to agricultural expenditure and expenditure on agriculture granger causes inflation rate in the economy. Moreover, based on these findings the following recommendations could be made for the policy makers in Nigeria that agricultural sector has the capacity to address the current unemployment menace among the youths in Nigeria. Also, the government should possess a political goodwill to diversify the current mono-cultural nature of the economy towards agricultural sector by proper funding of this sector of the economy