Sector Output In Nigeria Research Articles

Long-run Relationship between Power Consumption and Manufacturing Sector Output in Nigeria

Power remains the engine of growth of every economy while the manufacturing sector remains the key driver of a transformed modern economy. Despite several power sector reforms, Nigeria’s manufacturing sector continued to underperform. This study focused on examining the long-run relationship between power consumption and manufacturing sector output in Nigeria. We estimated an ARDL model based on the bounds-testing approach to cointegration. Our results indicate that manufacturing sector output and electricity consumption are cointegrated and that short-run deviations from equilibrium are corrected up to 83 per cent annually. The result showed that power consumption is positively related to manufacturing sector output. This implies that improved power sector will stimulate manufacturing sector growth. Our result also showed that capital formation, labour force and private sector credit are positively related to the manufacturing sector while the monetary policy rate is negatively related to the manufacturing sector. Given our findings, we recommend that the government should implement a sustainable power sector reform that prioritizes the manufacturing sector. This will stimulate growth, reduce the cost of energy and indirectly reduce price of manufactured products. We equally recommend creating a conducive environment for investment in the manufacturing sector through favourable monetary policy rates to allow manufacturers access to credit.

Impact of Capital Market Development on Industrial Sector Output in Nigeria: 1986-2022

The ideal situation for any growing economy, especially one as diversely poised as Nigeria, is to have a thriving industrial sector. This sector is traditionally seen as an indispensable engine of growth, a crucial antidote to the challenges of unemployment, and a potent creator of wealth. Regrettably, the current state of the manufacturing sector in Nigeria falls significantly short of this ideal. Recent statistics indicate that the industrial sector’s contribution to GDP remains suboptimal, with the National Bureau of Statistics (NBS) reporting a decline in industrial growth despite several policy measures aimed at enhancing its growth. This research sought to investigate the impact of capital market development on the growth of industrial sector in Nigeria between 1986 and 2022 with the aid of ARDL estimation technique. The findings revealed that Stock Market Capitalization had a significant and positive impact on industrial sector growth, suggesting that as market capitalization increased, the industrial sector flourished. In the same vein, Turnover Ratio, which is the value of traded shares divided by market capitalization, was found to enhance industrial sector growth positively and significantly. These positive relationships underscored the pivotal role the capital market plays in boosting the industrial sector by mobilizing and channeling resources efficiently. However, the All-Share Index exhibited a negative relationship with the industrial sector growth, indicating that while general market sentiment might be positive, it might not always translate to growth in the industrial sector. Based on these findings, the paper recommended promoting public listings and private investments as a strategy to enhance the growth potential of the industrial sector. Furthermore, improving trading platforms, ensuring market transparency, and reducing transactional costs were emphasized to leverage the benefits of a high turnover ratio. For the negative aspects found with All-Share Index, policymakers were advised to address these components to ensure holistic development of both the capital market and the industrial sector.

Trade Policy and Manufacturing Sub-Sector Output in Nigeria (1986-2020)

The objective of the research was to determine the relationship between trade policy and the output of the manufacturing sector. Three hypotheses were formulated. The study adopted ordinary least squares econometric approach on the time series data from 1986 to 2020 to generate the estimates of the models to test the hypotheses at 5% level of significance. The research concluded that there is a positive relationship between manufacturing sector output the and trade liberalization while there is a negative relationship between trade protectionism and manufacturing sector output in Nigeria for the period under review. It was therefore concluded that, since the manufacturing sector is the driver of economic growth in any economy, protection as good as it is may not positively impact the manufacturing sector if other stimulating policies are not adopted simultaneously. Liberalized trade policy should be maintained in manufacturing subsectors that utilize imported manufacturing input alongside other incentivizing policies.

Evaluating the Influence of Foreign Exchange Policy Regime on the Construction Sector in Nigeria

In developing economies, foreign exchange policy regime (FEPR) play a critical role in the viability of all sectors of the economy. In Nigeria, the economy is dependent on foreign inputs from contracting services, technology, materials, expatriates, etc. Therefore, this study investigated the impact of FEPR on the performance of the construction sector in Nigeria. To achieve this goal, time series data was extracted from United Nations Statistics Division (UNSD) on the construction sector, gross domestic product (GDP) and FEPR for 50 years spanning from 1970 to 2019. The study uses econometric approach including tests of stationarity and co-integration as well as the generalized method of moment (GMM) to model the relationships between the variables. The study reveals that the 1986 FEPR reform had significant and negative effect on the construction sector output in Nigeria. This implies that the performance of the construction sector is affected by the state of the economy and government policy. This study proves that the foreign exchange policy regime does not significantly influence the construction industry during the period of review. It also ascertained that the development of the construction sector depends more on previous construction outputs and only altered due to oil export shock. Hence, this study recommends that sustainable construction development strategies should be implemented to eliminate construction sector challenges and reduce the effect of foreign exchange rate volatility on the construction sector. Finally, monetary and fiscal policies that can engender sustainable growth and development of the construction sector should be implemented.

Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)

Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)

Macroeconomic Policies and Foreign Capital Inflows in Nigeria

Abstract The growth of manufacturing sector output in Nigeria is currently sluggish, if not stagnant, despite massive inflows of Foreign Direct Investment (FDI) as well as macroeconomic policies initiated by successive Nigerian governments. The study investigated how macroeconomic policies and FDI inflows have impacted on the manufacturing sector in Nigeria. The Augmented Dickey Fuller (ADF) unit root test was adopted to determine the stationary properties of the data, and the order of integration of the variables was tested using the Johansen cointegration test. The impact and interactions of macroeconomic policies on the manufacturing sector are less understood and shallow in the extant literature. The government’s macroeconomic policies encourage FDI in the communications and oil sector with a negative impact on the manufacturing sector. This is implicated in inadequate capital investments and technological diffusion. Nonetheless, the study shifts the paradigm in popular arguments that FDI is imperialistic, hence universally exploitative, to a new hypothesis that the failure of the manufacturing sector to tap into FDI and yield desirable growth output is linked to less viable globally competitive macroeconomic policy frameworks in Nigeria. The study therefore recommends that the Nigerian government should review its macroeconomic policies, particularly the monetary and exchange rate, and draw up proactive human capital development plans that can directly contribute to the development of the productive capacity of the country’s population.

The Impact of Macroeconomic Policy on the Mining Sector Output in Nigeria

Sustainable growth cannot be achieved in isolation without matching the relationship between natural resources and appropriate macroeconomic policies. The study examines the impact of macroeconomic policy on the mining sector output in Nigeria using time series data, spanning from 1981 to 2021. Preliminary tests such as descriptive statistics and correlation were carried out on the data. Also, the stationarity test was conducted using Philips-pereon, while the Autoregressive Distribution Lag (ARDL) method was employed to test for the differential impact of fiscal policy and monetary policy. The result showed that fiscal policy and monetary policy significantly influenced mining sector output in Nigeria. The study concluded that the performance of the mining sector has not been unimpressive in Nigeria during the study period. the government should advance more credit through special directives from the Central Bank of Nigeria to commercial banks to grant more loans to the mining sector.

The Effect of Fiscal Policy on Manufacturing Sector Output in Nigeria.

The objective of the paper is to investigate the effect of fiscal policy on manufacturing sector output in Nigeria between 1986 and 2021. The type of data utilized was secondary and was extracted from the Central Bank of Nigeria’s 2021 statistical records. The Fully modified ordinary Least Square method of analysis was adapted in carrying out the analysis. Unit root tests were carried out on each of the variables used in the study to avoid spurious regression results, and the results confirmed variables are all stationary at first difference. The Co-integration ARDL bound test showed that long-run relationship exists between the variables, and the conditions necessary to apply the Fully Modified ordinary Least Square method (FMOLS) met. The study’s insights demonstrated that fiscal policy strategies significantly bolster the outputs of the manufacturing Sector output. The article advises that the budget and national planning should earmark increased resources for foundational advancements in their fiscal plans, such as electricity and transportation, as this will augment manufacturing industry results. Additionally, tax breaks and incentives should be granted to the manufacturing sector of Nigeria economy.

CAPITAL MARKET AND MANUFACTURING SECTOR OUTPUT IN NIGERIA 1990 TO 2021

The importance of the capital market to sustained growth and development of an economy cannot be overstated. The capital market acts as a catalyst for rapid and sustained manufacturing growth, especially in capitalist economies. However, the role of the capital market in the development of the Nigerian manufacturing sector has remained unaddressed and the effect has not been felt despite several policy tools by the government aimed at improving the manufacturing sector. The paper investigated the effect of capital market on manufacturing sector output in Nigeria from 1990 to 2021. The ARDL-ECM method of analysis was adopted in carrying out the analysis. Findings from the paper revealed that market capitalization has a positive impact on the manufacturing sector's output. The study recommends steps aimed at improving the capital market and all share indexes as both have a positive and significant impact on the manufacturing sector output as well as put in place measures to ensure that share prices are reflective of their real values.

Monetary Policy Tools and Nigeria’s Manufacturing Sector Output

Manufacturing sector output has been experiencing dwindling output over the years, despite the efforts by the monetary authorities. Manufacturing sector in any economy is seen as one of the drivers of industrialization and economic development, as such government policies affect their performance. Hence, this paper examined the asymmetric effect of monetary policy tools on Nigeria’s manufacturing sector output between 1986 and 2022. Non-linear Autoregressive Distributed Lag (NARDL) method was adopted in carrying out empirical analysis. Cointegration using bounds test revealed the variables have long-run relationship. Findings from the paper revealed that positive effect of private sector credit has a corresponding positive impact on manufacturing sector output. While the negative effect led to a decrease in the output. Further findings showed that positive effect of monetary policy rate led to an increase in manufacturing sector output; while the negative effect led to a decrease in manufacturing sector output. Both variables were found to have statistically insignificant relationship with manufacturing sector output in Nigeria during the period covered. Based on these findings, the monetary authorities are encouraged to continue with improving programmes or schemes that will lead to more funding for the manufacturing; and are encouraged to take into account monetary policy that captures the economic reality on the ground.

Government Expenditure and Agricultural Sector Output in Nigeria

The purpose of this study is to determine how government spending affects the output of the agricultural sector in Nigeria. This study deals with Nigeria’s government spending and agricultural sector output (1990-2020). Data for the study was sourced through the Central Bank of Nigeria (CBN) statistical bulletin 2020 as a secondary means. This study adopted the Ordinary Least Square (OLS) multiple regression method to analyze the data. Real gross domestic product was used as the dependent variable. At the same time, government expenditure on administration, government expenditure on social and community services, and government expenditure on economic services formed the independent variables. From the findings, it was discovered that the variables were positively insignificant to agricultural sector output at a 5% level of significance. Therefore, we conclude that government expenditure does not affect the agricultural sector output in Nigeria. Hence, it was recommended that the federal government of Nigeria through the Central Bank, should strengthen the banking sector to ensure an improved and efficient credit flow to the agricultural sectors because of its strategic importance in stimulating the growth and development of an economy.

The Sectoral Nexus in a Small Open Economy: Evidence from Nigeria

The interrelationship between the real, monetary, fiscal, and external sectors of the Nigerian economy is an issue of concern, as it will provide policymakers with insight on which of the sectors is potent in influencing output in the real sector, which little or no attention was given. This study, therefore, examines the interrelationships between these sectors in Nigeria between 2010Q1 and 2021Q1. Structural Equation Model (SEM) was employed. The study finds that monetary and fiscal sectors have a positive influence on the real sector output, while the external sector has a negative influence on the real sector output in Nigeria. It was found that only the monetary sector influenced real sector output significantly. This study recommends effective collaboration between the monetary and fiscal authorities in stimulating aggregate demand, boosting economic activities, and spurring economic growth in Nigeria using money supply, and external and domestic debt.

Electricity Supply and Manufacturing Sector Output in Nigeria

This study investigated the impact of electricity supply on manufacturing output in Nigeria using data from 1980 to 2019. By augmenting the endogenous growth model production function with key variables affecting manufacturing sector output, such as exchange rate and technology, which previous studies failed to capture. The result of the autoregressive distributed lag (ARDL) model revealed that electricity supply has a negative and insignificant relationship with the manufacturing sector output. Conversely, technology has a positive and significant relationship with manufacturing sector output in the short run. Thus, it was recommended that an adequate and stable supply of electricity and deploying modern technology should be on the front burner of the country's development policy. This steady supply will not only enhance the growth of the manufacturing sector but also lead to inclusive growth in terms of reducing poverty and unemployment in the Nigerian economy and promoting rapid economic growth.

The Impact of Monetary and Fiscal Policies On the Performance of the Industrial Sector in Nigeria: A Bounds Test Approach

This study explicitly digs into the separated impact of fiscal and monetary policies as government stabilization policies on the Nigerian industrial sector performance as a real sector, from 1986-2021, using the ARDL Bounds Testing Approach. The data were filtered with use of Augmented Dickey Fuller unit root test while Johansen cointegration test was used to justify the long-run relationship among all included variables. Annual data were gathered from the Central Bank of Nigeria (CBN) Statistical Bulletin and World Bank Indicators (various issues). It was discovered that government stabilization policies are potent determinants on the industrial sector output in Nigeria both in the short-run and long-run. An appropriate monetary and fiscal policies mix and adjustments to match the dynamic nature of the economy would not only develop and sustain the Nigerian industrial sector but also enhance the living standard of the people.

Monetary Policy and Private Sector Performance in Nigeria (1995-2020)

The study examines the impact of monetary policy on private sector performance in Nigeria; for the period 1995-2019. Secondary data were used and collected from the Central Bank of Nigeria Statistical Bulletin. The study used Private Sector Output is proxy for Private Sector performance and employed as the dependent variable; whereas, broad money supply, liquidity rate and Credit Ratio respectively were used as the explanatory variables to measure monetary policy. Hypotheses were formulated and tested using time series econometric techniques. The study revealed a significant effect of credit ratio on private sector output in Nigeria. Liquidity ratio had a significant effect on private sector output in Nigeria. Broad money supply had a significant effect on private sector output in Nigeria. Hence, there is a long-run equilibrium effect on monetary policy and the private sector economy in Nigeria; and, the result confirms that about 73% short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicated that about 65% of the variations in private sector led- economy can be explained by changes in monetary policy variables. The study concluded that monetary policy had impacted significantly on private sector growth in Nigeria. The study recommended that strong macroeconomic policies should be employed to maintain and stabilize the economy. CBN should lay down strict prudential guidelines to stabilize and strengthen the private sector led-economy. Government and policy makers should formulate policies that will increase the flow of investable funds and improves the capacity of private economy.

Capital market and agricultural sector output in Nigeria

This study centres on capital market and agricultural sector output in Nigeria. The main objective is to examine the effect of capital market on agricultural sector output in Nigeria. The specific objectives are to find out the effect of market capitalization, value of transactions and share index on agricultural sector output in Nigeria. The data were obtained from Central Bank of Nigeria Statistical Bulletin for the period 1987 to 2019. The Autoregressive Distributive Lag approach that is suitable for data with mixed order of integration was employed to regress the capital market variables on agricultural sector output which is the dependent variable The empirical analyses revealed that market capitalization and share index had a positive effect on Agricultural sector output while value of transaction had negative effect on agricultural sector output in Nigeria. This study shows that capital market has only short run effect on Agricultural sector output in Nigeria. The study concludes that Nigeria capital market may not have invested significantly in the agricultural sector. The capital market is expected to boost long run growth of various sectors where adequate investments are made. The study recommends that government through the Central Bank of Nigeria should introduce and implement financial policies (monetary policies) that will make the capital market more efficient. The cost of doing business in the capital market should be reduced so as to make it profitable.

GLOBALIZATION AND REAL SECTOR PERFORMANCE IN NIGERIA

The need to provide a level playing field for national economies has necessitated the integration of the economies through cross flow of goods, services, technologies and capital. These goods and services are produced by key sectors of the economy which represents the real sector. Over the years, the competitiveness of the real sector in the international market has raised concerns on the link between globalization and real sector performance. Consequent upon this, this study examined the impact of globalization on real sector output in Nigeria for a 39 year time period spanning from 1981 to 2019. The time series datasets used in this study were adapted from the Central Bank of Nigeria’s Statistical bulletin. The Ordinary Least Squares and Error Correction Modeling were used as the main analytical tools. The Augmented Dickey Fuller unit root test showed that all the variables attained stationary after first difference. The Johansen cointegration test further showed that the series have long run equilibri um relationship at 5 percent level of significance. The result from the errorcorrection model confirms that about 38 percent of the short run shocks in real sector output is corrected annually. From the estimates, a positive and statistically significant relationship exists between real sector output and foreign direct investment. Trade openness also was significant in impacting real sector output positively while a negative and significant linkage was observed between exchange rate and real sector output in Nigeria. The study therefore concluded that openness to trade broadens real output growth. Based on the findings, the study recommends amongst others that in the quest to maximize the benefits from trade openness, the relevant authorities should ensure that the nation’s exports are competitive and meet international standards by leveraging on modern technol ogies and innovation. Also, favourable industrial policies and strong institutional framework should be set up by the government to attract the right foreign direct investments.

Inward FDI and Manufacturing Sector Productivity: An Empirical Evidence from the Dynamic ARDL Approach.

The real sector for which the manufacturing sector is a part play key role in the quest for achieving economic growth of any country. A high output in the manufacturing sector will connote a high level of GDP all things been equal. However, the productivity of the manufacturing sector is directly dependent on the capital-labour ratio. Thus, this study seeks to examine the impact of foreign capital (FDI) and domestic labour force (population) on the manufacturing sector output in Nigeria. The choice of ARDL approach by this study is informed by the mixed order of integration from the unit root test. The finding indicates that FDI inflow significantly and positively determine the manufacturing output in Nigeria, while labour influence the manufacturing in a positive but insignificant way. Further result prove that the impact of labour force is elastic, indication that little change in the labour force will cause drastically change in the level of output in the manufacturing output. In general, the manufacturing sector is capital-driven rather labour-driven. A recommendation is made of the need for the improvement in education and training to increase the efficiency of labour. Secondly, since FDI capital demonstrate significant positive impact, the authority concern should device policy that will woo more it into the sector for higher productivity. Such policy include, tax holidays, stable exchange rate and lower interest rate to enable smooth flow of investment.

Deficit financing approaches and the Nigerian sector’s output

This study examined the effect of deficit financing on Sectorial Output in Nigeria from 1986–2020. The independent variable in the study is deficit financing measured by domestic debt, foreign debt, budget deficit, and Foreign exchange reserve while the dependent variable in the study is Sectorial Output measured by Manufacturing Sector and Services Sector Output. Accordingly, the two models support the ARDL Methodology since they reported mixed integration. The study found that domestic debt has a positive significant effect on Sectorial Output in Nigeria. More so, Foreign Debt has a negative insignificant effect on Manufacturing Sector Output. However, it has a significant effect on the Services Sector Output in Nigeria. Again, the study found that Budget Deficit exerted a positive significant effect on Manufacturing Sector Output. However, it exerted a negative insignificant effect on Services Sector Output. While Foreign Reserve exerted a negative insignificant effect on Manufacturing Sector Output, Foreign Reserve had mixed effects on Services Sector Output; such effect tends to be statistically significant only in the short run. Lastly, the both inflation rate and the interest rate have a mixed effect on Sectorial Output.

Exchange Rates Management and Disaggregated Manufacturing Sector Output in Nigeria (1986-2019)

This study investigated the effect of exchange rates management on manufacturing sector in Nigeria from 1986-2019. Secondary data used in the analysis were sourced from Central Bank of Nigeria Statistical Bulletin, (2020) and World Development Indicators, (2020). Stationarity and orders of integration of the variables were examined with both Augmented-Dicky-Fuller (ADF) and Philip-Perron (PP) unit root tests. Having disaggregated manufacturing sector output into oil and non-oil source, two different models emerged. The results of Autoregressive Distributed Lag (ARDL) Bound test for co-integration revealed that the variables under oil sector model were co-integrated, while there was no evidence of co-integration in non-oil model. ARDL technique of estimation results showed that, both in the short-run and long-run, real exchange rates negatively and significantly impacted on oil manufacturing sector, while real interest rates negatively and significantly influenced the sector in the short-run. In the non-oil model, it was found that, both in the short-term and long-term, while real exchange rates negatively and significantly impacted on the sector, inflation produced positive and significant effect. Authority in Nigeria should improve on trade competitiveness of Nigeria with other countries via empowering the domestic currency to improve on domestic manufacturing sector performance.