Entries on Management
This study assessed the impacts of Exchange Rate Volatility on Inflationary Rate in Nigeria from 1986 to 2016. Secondary data sourced from CBN Statistical Bulletin 2015 was used in this study. The Autoregressive Conditional Heteroskedasticity (ARCH) was developed and applied by the authors where the following macroeconomic variables were used: Exchange Rate (EXR), Inflation Rate (INFR), Broad Money Supply (BMS) and Interest Rate. The ARDL Bound Test was used to assess the long-run relationship between exchange rate volatility and inflation in Nigeria and more so the study employed granger casualty test to identify the causality between exchange rate volatility and inflation in Nigeria. It was however; found out that exchange rate volatility has a negative relationship with inflation. The effect of exchange rate on inflation is very weak and low. Interest rate and Broad money supply also have negative effect on inflation rate in Nigeria, while GDP has a positive effect on inflationary rate in Nigeria. In the same vein the co-integration test shows that, there’s a long run relationship between inflation and exchange rate volatility in Nigeria and finally the granger casualty test shows a unidirectional casualty between the two variables inflation and exchange rate volatility, it shows that inflation causes exchange rate and not otherwise. Hence it was recommended that: The government should take a bold step to ensure exchange rate stability so that investors can have confidence in our financial system and the government as a matter of urgency should also diversify the economy in order to boost productivity, revive every sector of the economy that is not so that normalcy and price stability can be achieved in our economy.
The issue of unemployment has been a major challenge to most nations and it still remains on the front burner today. This study empirically assessed the impact of unemployment on economic growth in Nigeria from 1990-2013 Using the ordinary least squares estimation technique. The empirical analysis carried out shows that unemployment has a negative and non-significant relationship with gross domestic product. Also, the average capacity utilization rate and the government expenditure both have a positive and significant relationship with the gross domestic product, which is consistent with a-priori expectation. The coefficient of determination (R2) of 0.867 shows that about 87 percent of the variation in real gross domestic product was explained by variation in the independent variables. An important implication of the findings is that unemployment has far reaching negative consequences on the economic growth of Nigeria. Finally, this work suggests that in order to achieve sustainable economic growth which is a necessary condition for economic development, the Nigerian government should develop the private sector to be more vibrant and to venture into vital aspects of the economy (pumping the prime), such as, manufacturing, and mechanized agriculture. It was also recommended that the government should give more attention to vocational education to boost economic growth.
The word poverty is a paramount case in the lives of most individuals in the developing countries like Nigeria. While poverty has been perceived as an economic malaise, social disequilibrium, it is apparent that its effects on the social system make it a debilitating social problem. This explains why every reform policy is geared towards poverty reduction. In fact, poverty reduction is number one millennium developments goal. To what extent has the National Poverty Eradication Programme (NAPEP) affected the level of poverty among women in Kogi state in 2014? This is the question that this research sought answer for. Using descriptive statistics such as tables, percentages, charts, frequencies and the chi-square method to test the hypothesis, the results obtained from the chi-square test revealed that the National Poverty Eradication Programme has significant effect on the level of poverty among women in Kogi state and statistically significant at the 5% level of significance.The research finds out that the poor communication network between the NAPEP agency and the people, inadequate personnel and the corruption that exists in the agency poses as a strong factors limiting the rate of diffusion and consequently, the effectiveness of the programme in Kogi state. However, certain recommendations were considered valuable for enhanced service delivery; government should employ more personnel and NAPEP staff should be well trained, thereafter, a monitoring committee that will monitor the activities carried out by the agency to prevent the embezzlement of funds put in place by the government to alleviate poverty should be established for efficient service delivery. This is with the view of making the National Poverty Eradication Programme more effective in the alleviation of poverty.
This study examined the relationship between non-Oil exports and economic growth in Nigeria from 1986 to 2015. Secondary data sourced from World Economic Indicators, 2015 was used in this study. A vector Autoregressive Lag model was developed and applied by the authors where the following macroeconomic variables were engaged: Real GDP used as a proxy for economic growth, Non-Oil export (NOEXP), Degree of Economic Openness (DOP), Exchange Rate (EXCH), Real Interest Rate (RIR) as well as Inflation Rate (INF). OLS technique, co-integration technique, and granger causality were employed to analyse the data and the result revealed that, Non-oil export had a positive and significant impact on economic growth in Nigeria in relation to the reviewed period. It was also discovered that there is a unidirectional relationship from real GDP and Degree of Economic Openness (DOP) to Non-oil Export meaning that, RGDP and DOP causes non- oil export but non-oil export does not cause RGDP and DOP.Hence it was recommended that Since non-oil export appeared to be positively correlated with the real gross domestic product, government and her policy makers as well as other important and relevant stake holders are advised to put all hands on deck to draw policies that would promote non-oil export in the country so as to get our export improved.
The study evaluated the major constraints hampering the effective functioning of the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB) in Kogi State, Nigeria. Using the food crop farmers as a case study, a multi-stage random sampling technique was used to select three agricultural zone in Kogi State ( zone A, B, and C).Primary data were collected through the use of structured questionnaire which were administered to farmers who are clients of NACRDB. The major tool of analysis is the Likert scale of analysis. The study find out that, while unfavourable organization policy, insufficient funding, poor group cohesiveness, poor spread of network of branches, politics in allocation of credit, inadequate competent staff and lack of information are seen as major constraints hampering the effective functioning of NACRDB in Kogi State, high interest rate, misappropriation of fund and inadequate personnel training and development is not a major constraint hampering the effective functioning of NACRDB in Kogi State. [Adofu et al. An Evaluation of The Major Constraints Hampering the Effective Functioning of the Nigerian Agricultural Cooperative and Rural Development Bank in Kogi State, Nigeria. A Case Study of Food Crop Farmers Loan Beneficiaries.
This study show by means of robust statistical analysis, the magnitude of the changes which occurred in the Nigerian financial system right from the period of regulation and since the introduction of structural change reforms in 1986. Using the ordinary least squares method, data from 1970 to 2004 which covered the two policy thrusts regulation and deregulation are examined. To ascertain whether monetary policy reforms had significant impact on financial deepening during the period under study, three regression test were run. One covered the period of regulation (1970 – 1985), the second covered the period of deregulation (1986 – 2004), while the third covered the period of regulation and deregulation (1970-2004). The empirical analysis carried out in this study showed that the monetary authorities have largely succeeded in their objective to deepen the Nigerian financial system despite the emergence of distress in the banking industry. Past policies of financial repression aimed at encouraging domestic investment by suppressing interest rate produced a negative effect on the financial system. Negative real interest rate regimes did not encourage greater domestic investment rather they influenced banks to be more risk averse. From empirical findings, it was observed that when interest rate regimes tended to be more market driven and less negative in real terms, bank lending increased, National Income increased and national saving expanded. The conclusion from our findings is that monetary policy reforms have achieved great success in deepening the financial system. This finding represents sufficient evidence that if and when the CBN is granted legal and operational autonomy, it can, given the flexibility, strike a happy medium between financial liberalism and occasional intervention aimed at correcting marked failures arising from information asymmetry.
There are empirical evidences to show that relationship exists between the level of industrialization (manufacturing) and economic growth in Nigeria. Studies have identified a significant relationship between industrial sector output and per-capita incomes. Therefore, this study tries to investigate the correlation between industrialization and economic growth in Nigeria. The study made use of time series data 1984-20013, obtained from various CBN statistical bulletins. An OLS equation was used to estimate results gotten from E-view (version 4) econometric software. We found out that there is a strong but negative and insignificant relationship between industrialization and economic growth in Nigeria for the period under study. Nigeria’s industrial sector has not contributed significantly to economic growth in the last thirty years. Results from our regression show that government expenditure (GEXP), interest rate (INTR) and inflation rate (INFR) carries a negative value, implying that in the last three decades, these variables has not provided the necessary stimuli for economic growth in Nigeria. The study therefore suggests that, for industrialization to contribute significantly to economic growth, government should enhance its fiscal and monetary policy instruments, to favor industrialization. Also, emphasis should be placed on deregulation at the sub-sector level, to form a strong bloc, so that efficient and effective linkages between industrial sector and economic growth in Nigeria can be established. The privatization of the energy sector is paramount for the reduction of production cost, and an efficient transport infrastructure should be put in place. Also, local sourcing of raw materials should be encouraged
The study, “Government Budgetary Allocation to the Agricultural Sector and its effect on Agricultural output in Nigeria”, is an attempt at highlighting the quantity and quality of national commitment (through public expenditure/budgetary allocation) to agricultural development over the years. Using government budgetary allocation to the agricultural sector and commercial bank credit to the agricultural sector as our explanatory variables, we examine the effect of government budgetary allocation to the agricultural sector on the output of the agricultural sector. Data were obtained from CBN’s Statistical Bulletin, and NBS’s Annual Abstract of Statistics. Employing the OLS regression technique, our results revealed that Budgetary Allocation to Agricultural Sector has significant effect on agricultural production in Nigeria, and that the relationship between them is strong, positive and significant. Thus, the study recommends that budgetary allocation to the agricultural sector should be increased and monitored, to guarantee food security, employment and overall economic growth and development in Nigeria.
Economic growth and factors that determine it has been a conflicting debate mainly in developing countries. This paper strive to analyse the empirical and causal relationship between foreign direct investment, balance of payment, real exchange rate, investment rate, gross national savings and gross domestic product growth in Nigeria covering the period 1980 to 2015. It makes use of the Vector Error Correction Model approach and the Granger causality test. The results show that there is only one cointegrating equation. Taking into account a long term relationship, foreign direct investment, balance of payment and investment rate moves positively with GDP growth rate. Real exchange rate had a negative relationship with GDP growth rate. Furthermore, the Granger causality test revealed unidirectional influence from foreign direct investment and GDP growth, real exchange rate and GDP growth and investment rate to GDP growth. The study recommend a huge investment in public infrastructure such as rail, power, roads, education, health services, etc. because they are complementary to private investment which can increase the marginal product of private capital thereby enhancing growth.
This study investigates the relationship between financial liberalization and domestic savings mobilization in Nigeria from the period 1986-2013. Using time series data and ordinary least square(OLS) regression analysis, this work provides an empirical insight into the relationship that exist between financial liberalization and domestic savings mobilization in Nigeria. The paper demonstrated that money supply and credit supply to private sector influences savings mobilization in Nigeria significantly, interest rate on savings and exchange rate were not significant in influencing savings mobilization. The paper therefore concludes that financial liberalization had minimal effect and the increase in interest rate through liberalization could not lead to an increase in domestic saving. The study therefore recommends macroeconomic stability, effective implementation of policies and programme and also effective interest rate management.
This study empirically investigated the impact of financial deepening on economic growth in Nigeria between 1986 and 2010 using time series data sourced from the Central bank of Nigeria (CBN) statistical bulletin 2010 edition. This study employed the Vector Error Correction Mechanism (VECM) as well as the Johansen co-integration and granger causality tests and found out that causality runs from GDP to CBC and TDDC which means that economic growth causes financial deepening. Also, the findings of this study revealed that though GDP is affected by some variables of financial deepening yet past values of GDP have more impact on GDP than financial deepening. This study concluded by recommending that the productive base of the Nigerian economy should be strengthened and that saving mobilization by the commercial banks should be encourages and quantity of money in circulation should be increased.
The study examines the determinants of Internally Generated Revenue (IGR) in Nasarawa State from 1997 – 2016. The study used secondary data and was obtained from the State Board of Internal Revenue Service and the State Ministry of Finance and Economic Development. A longitudinal research design was used in structuring the study. The data collected were subjected to Unit Root test to ascertain their stationarity. Regression model was employed to establish the relationship between the predictor and the explanatory variables, and correlation analysis was adopted to determine the direction and magnitude of the relationship. The results indicate that personal income tax, fines and fees, and licenses are the main determinants of IGR in state. The overall effect of the explanatory variables on the dependent variable is 98% as depicted the value of the r2. Hence, it was recommended that Nasarawa State Government should review their commitments to revenue generation through exploiting the sources of revenue in the state, Embark on sensitization and awareness campaigns to promote willingness of people to payment of statutory taxes and levies, government in their revenue thrive should also adopt and implement commercialization policy on abandoned government factories, and finally, government should computerize the entire assessment and collection to ensure efficiency and also ensure complete autonomy of the Board of Internal Revenue Services of the state.