JOURNAL OF ECONOMICS AND ALLIED RESEARCH
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EXPLORING THE CAUSAL NEXUS BETWEEN TAX COMPOSITION, INFRASTRUCTURE, AND ECONOMIC PERFORMANCE IN NIGERIA
Get PDFThis study investigates the causal relationships among tax composition, infrastructure investment, and economic performance in Nigeria from 1993 to 2022, employing the Grangercausality test within a linear regression framework. Tax composition was dis-aggregated into value-added tax (VAT), personal income tax (PIT), company income tax (CIT), petroleum profit tax (PPT), and customs and excise duties (CED), while infrastructure was measured by infrastructural development. Findings reveal a unidirectional causality from VAT and CIT to economic performance, indicating these taxes' significant impact on growth. A bidirectional relationship is observed for PIT, suggesting mutual reinforcement between personal income and economic activity. PPT also exerts a unidirectional effect on growth, while CED shows no significant causality. Notably, economic performance influences infrastructure development unidirectionally, challenging the infrastructure-led growth hypothesis. These insights underscore the varied impacts of different tax components on Nigeria's economic performance. Policy recommendations include enhancing tax administration, promoting tax education, and fostering policies that support compliance and optimal allocation of tax revenues to stimulate growth and infrastructure. This analysis provides a nuanced understanding of fiscal strategies for sustainable development, highlighting areas where targeted tax reform can yield significant economic benefits
EMPIRICAL ASSESSMENT OF TAX REVENUE AND INFLATION RATE NEXUS IN NIGERIA
Get PDFThe effect of tax revenue on inflation rate in Nigeria was examined utilizing the autoregressive distributed lag model on data spanning the period, 1986-2022. In order to have deeper insight into the relationship between the variables, we decomposed tax revenue into value added tax, petroleum profit tax, gas income tax, company income tax and stamp duty tax. The model was utilized primarily for the long run dynamic approach and the contemporaneous unrestricted error correction technique of short run estimations. It was discovered by the study that evidence of equilibrium long run relationship exists between inflation rate and tax revenue in Nigeria. Specifically, the study found in the long run that while tax revenue from gas income, company income and petroleum profit showed negative influence on inflation rate and at the same time value added tax and stamp duty tax exerted positive relationship, no evidence of statistical significant relationship was established. However, in the short run a significant direct relationship existed between inflation rate, gas income tax and company income tax contrary to significant negative influence from stamp duty tax, value added tax and petroleum profit tax during the period of analysis. It was therefore the recommendation of the study that domestic increase in prices of petroleum products should not be encouraged while corporate income tax for SMEs should be kept low. Finally, a reduction in VAT is advocated for goods of necessity such as pharmaceutical product
ANALYSIS OF THE SOCIOECONOMIIC EFFECTS OF LAND RECLAMATION IN LEKKI, LAGOS STATE, NIGERIA.
Get PDFThe paper investigates the effects of land reclamation in Lekki area of Lagos state. The objectives of the study include the extent of the reclaimed land in the study area, examination of the factors for relocation to the study area, livability and satisfaction of the residents, the implication of the reclamation exercise and the examination of the control measures put in place to mitigate possible effects of such reclamation exercise. The study adopts survey research design and multi-stage approaches. Data collection were done using questionnaire survey and personal observation instruments. The study uses descriptive and inferential statistical tools for data analysis and interpretation. The study reveals the portion of wetland and ocean based has been transformed to human settlement and that the occupier placed high premium on home ownership than shelter in their decision for relocation to the study area, they are satisfied with the level of infrastructure in the study area and that the perceived disadvantages of the reallocation was consider too insignificant to reckon with in their decision to relocate. The study recommends among others formulation of policy for the maintenance and preservation of the quality of the reclaimed environment
DYNAMICS AND EFFECTS OF HEALTH STATUS ON LABOUR FORCE PARTICIPATION IN DELTA STATE
Get PDFNigeria faces a high and rising burden of disease. A high disease burden would potentially erode positive externalities from a viable labour force. Specifically, Delta State of Nigeria is relying on its labour force to achieve projected economic growth. Despite the potential negative labour market effect of illness and the rising disease burden in Delta State, there is limited empirical evidence on the relationship between self-reported illness and labour supply. This paper investigates the relationship between health conditions and labour force participation. A household survey in the 25 local government areas of Delta State provided the data. The study utilized a probit model and found that ill-health conditions reduce the likelihood of labour force participation. Ill-health conditions reduce the likelihood of labour force participation among women by a greater magnitude than among men. Therefore, the Delta State government should vigorously pursue effective policies and interventions to reduce the prevalence of ill-health conditions within the State
ASSESSMENT OF PERFORMANCE LEVELS OF PRIVATE SCHOOL STUDENTS IN ECONOMICS IN THE SENIOR SCHOOL CERTIFICATE EXAMINATION (SSCE) IN EBONYI STATE, NIGERIA
Get PDFThe study assessed the performance levels of private school students in economics in the senior school certificate examination (SSCE) in Ebonyi State, Nigeria from 2016 to 2021 in ex post facto/causal design. Multi-stage sampling techniques were used in selecting the 12 schools that participated in senior secondary school economics examination. Data were collected with the aid of a checklist of students' results from the selected schools. Descriptive statistics were used in data analysis while T-test was used for hypotheses testing. Results showed that the performance of students in Economics in private urban secondary schools was better than their performance in private rural secondary schools. Greater percentage (70%) had credit pass in urban schools while 41% had credit pass in private rural schools. Majority (53%) of the male students had credit pass in Economics while 41% of female students obtained credit pass in Economics. Results of hypotheses tested showed that there is a significant difference in the mean performance of students in Economics in private urban and rural secondary schools and a significant difference also existed in the mean performance of male and female students in Economics SSCE in private secondary. It was concluded that students in urban private schools performed better in senior school certificate Economics examination relative to their counterparts in rural areas of Ebonyi State, with the male students scoring more credits than the female students. It is recommended that the students should be actively involved in the learning process for better performance in external examinatio
EFFECTS OF URBAN AGRICULTURE ON FOOD SECURITY AND POVERTY REDUCTION IN ENUGU STATE, NIGERIA
Get PDFThis study assessed the effect of urban agriculture on food security and poverty reduction in Enugu State. Using a multi-stage sampling method, 90 households were selected from three local government areas. Data was analyzed using descriptive statistics, the Food Insecurity Experience Scale (FIES), the Multi-dimensional Poverty Index, Ordered logit, and Likert-scale ratings. The study found that most respondents were male (56.8%), aged 31-40, and married, with many having tertiary education, especially in farming households (46.7%). The average household size was seven, and civil service was the main occupation. Non-farming households had slightly higher annual incomes, and food insecurity was a concern for about one-third of respondents. Farming households had higher food insecurity rates, with 13.33% experiencing mild, 26.67% moderate, and 15.56% severe insecurity. Non-farming households had lower rates, with 8.89% mildly, 26.67% moderately, and 6.67% severely insecure. The multidimensional poverty index showed higher poverty levels among farming households. Factors influencing food security and poverty included marital status, household size, occupation, income, and farm size. Key challenges to urban agriculture were limited space, lack of credit access, and climate change. The study calls for targeted interventions to improve food security and reduce poverty, including integrated urban planning, subsidized agricultural inputs, micro-financing, and climate-resilient practices
THE EFFECT OF DEBT BURDEN ON INVESTMENT IN NIGERIA
Get PDFThis study investigates the effects of Nigeria’s debt burden on investment from 1981 to 2022, utilizing an autoregressive distributed lag (ARDL) approach to analyze the short- and long-run relationships between external debt, domestic debt, debt servicing, and investment. The findings reveal that domestic debt significantly boosts private investment and foreign direct investment (FDI), suggesting that domestic borrowing serves as a viable financing mechanism for investment expansion. Conversely, external debt negatively affects private investment, corroborating the crowding-out hypothesis (Majumder, 2007), while debt service does not exhibit a statistically significant impact on investment decisions. Public investment inefficiencies further underscore the need for sound fiscal management. These results emphasize the importance of optimizing domestic debt to support private-sector growth and attract FDI while ensuring external borrowing is effectively allocated to high-return projects. Policy recommendations include enhancing debt transparency, prioritizing concessional external loans, and strengthening institutional frameworks for debt management. Additionally, fostering macroeconomic stability, improving governance, and aligning public investment with private sector needs will be critical to mitigating the adverse effects of external debt. This study contributes to the literature by providing empirical evidence on Nigeria’s debt-investment nexus and offering policy insights to balance debt accumulation with sustainable economic growth. Future research should explore sector-specific debt effects, governance influences, and cross-country comparisons within Sub-Saharan Africa to deepen understanding of debt dynamics and investment behavior
PROMOTING EXPORT DIVERSIFICATION AND ECONOMIC GROWTH IN NIGERIA: CHALLENGES AND OPPORTUNITIES
Get PDFThis study explores the impact of export diversification on Nigeria's economic growth, focusing on the challenges and opportunities for improvement. The objectives are twofold: to assess the effect of export diversification on economic growth and to examine the short-term and long-term relationships between the two variables. Using the Auto Regressive Distributed Lag (ARDL) model with time series data from the World Bank's World Development Indicators (1981-2021), the results show a positive and statistically significant relationship between export diversification and economic growth. In both short-term and long-term analyses, exports are found to significantly drive economic growth, while imports, the balance of payments, and exchange rate fluctuations present challenges to Nigeria's economic stability. The study concludes that export diversification plays a crucial role in enhancing economic growth but is hindered by structural and institutional constraints. Therefore, it is recommended that Nigeria intensify its efforts in diversifying exports, stabilize its exchange rate, address the balance of payments issues, and improve the investment climate. Furthermore, strengthening economic institutions and implementing comprehensive structural reforms are critical for sustaining diversification and fostering long-term economic resilience
DOES TRADE LIBERALIZATION WITH CHINA IMPACT SMALL AND MEDIUM SCALE ENTERPRISES GROWTH IN NIGERIA? AN EMPIRICAL ANALYSIS
Get PDFThe dearth of empirical evidence on the benefits of Nigeria-China trade relations regarding trade liberalization cum small and medium scale enterprises growth in Nigeria motivated this research. Utilizing time series data from 1986-2022 sourced from the Central Bank of Nigeria Statistical Bulletin (2023), data were analyzed using the Ordinary Least Squares (OLS) regression method. The study found a positive and significant influence of trade liberalization on SME growth, and a negative and significant link between the volume of trade with China and SME growth in Nigeria. The study concluded that trade liberalization, competitive exchange rates as well as affordable interest rates are critical factors that positively impacts SME growth in Nigeria. However, the specific trade relationship with China poses challenges for local SME
THE IMPACT OF INTERNATIONAL OIL PRICE ON NIGERIA’S EXPORT REVENUE
Get PDFAs one of Africa's leading oil producers, Nigeria is heavily reliant on oil exports and this accounts for over 90% of its total export revenue. This study examined the effect of international oil price changes on Nigeria’s export revenue and the direction of granger causality between 1985 and 2022. To achieve these objectives, a Vector Autoregressive model was used to capture the dynamic relationship. Independent variables in the model include Gross Domestic Product, inflation rate and exchange rate. Granger causality test was also carried out to detect the direction of causality. Findings showed a positive relationship between changes in international oil price and changes in Nigeria’s export revenue in the short run. A one unit increase in oil price leads to a 2.17 unit increase in export revenue. However, the long term results showed a negative relationship between oil price and export revenue. Findings also showed that there is a unidirectional causality running from oil price to export revenue. This study underscored the urgent need for economic diversification strategies to mitigate vulnerabilities associated with over-reliance on oil, thereby fostering a more resilient economic framework