GUSAU JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES
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MODERATING EFFECT OF ACCESS TO FINANCE ON THE RELATIONSHIP BETWEEN FINANCIAL LITERACY, ENTREPRENEURIAL ORIENTATION AND SME PERFORMANCE IN KADUNA STATE
Get PDFSmall and Medium Enterprises (SMEs) are widely recognized as key drivers of economic growth, employment, and innovation. However, despite their critical role, many SMEs struggle to achieve sustainable growth and performance, often due to limited access to resources, lack of financial knowledge, and inadequate entrepreneurial strategies. This study aims to investigate the impact of financial literacy, entrepreneurial orientation, and access to finance on the performance of SMEs in Kaduna State, with a specific focus on how access to finance moderates the relationship between financial literacy and SME performance. The research addresses the gap in existing literature regarding the combined effects of these factors on business outcomes in the SME sector. Data was collected from 453 SME owners using a structured questionnaire, and the responses (389 valid) were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show that financial literacy and entrepreneurial orientation have significant positive effects on SME performance, with entrepreneurial orientation emerging as the strongest predictor. Access to finance, while important, did not significantly moderate the relationship between financial literacy and performance. Based on these results, the study suggests that enhancing financial literacy and fostering an entrepreneurial mindset should be central to policies aimed at improving SME performance. Additionally, financial institutions should focus on providing tailored financial products that cater to the specific needs of SMEs. The study concludes by recommending further research to explore additional factors such as digital skills, market conditions, and the role of government policies in shaping SME success
FOREIGN TRADE AND ECONOMINC GROWTH IN NIGERIA
Get PDFThe study investigated the extent at which foreign trade affects economic growth in Nigeria using an annual time series data between 1990 – 2019. The variables used in the study are Gross domestic product (GDP), Balance of trade (BOT), Import (IMP), Export (EXP) and Balance of Payment (BOP). it was established from the study using Error Correction model (ECM) analysis that total export and total import has significant impact on the gross domestic product in Nigeria; also, trade openness has positive and significant impact on Gross domestic product (GDP) in Nigeria. The underlying principle for such result is rooted in the Comparative Advantage theory which is applicable to the trade liberalization in Nigeria and its impact on gross domestic product (GDP) in Nigeria that is recovering from economic recession. The result showed that foreign trade has been improving economic growth in Nigeria. Several recommendations are put forward: Since openness is only beneficial when there is a balanced exchange, improving infrastructural facilities in Nigeria would alleviate challenges in domestic production, thereby boosting exports to align with imports. Additionally, a regulated approach to economic liberalization is advised to prevent the country from becoming a dumping ground for inexpensive Western and Asian products, which could undermine local industries. However, another actionable recommendation is to implement policies to stabilize the exchange rate and reduce inflationary pressures on imports. Furthermore, support local industries by providing foreign exchange access for the importation of necessary industrial inputs
INTERNATIONAL TRADE AND FINANCIAL CRISES IN NIGERIA
Get PDFThe Nigerian economy has faced significant challenges, particularly following the 2008 global financial crisis, with issues such as exchange rate volatility, inconsistent GDP growth, and high-interest rates persisting despite government efforts like the African Continental Free Trade Area (AfCFTA). This study analyzed the relationship between key economic variables—currency in circulation, credit to the private sector, GDP growth, exchange rates, and net exports—using secondary data from January 2008 to December 2023. The results revealed that credit to the private sector have a weak impact on net export, while the amount of money in circulation had favourable and positive impact on net export. At the long term, net export is positively and significantly impacted by the GDP growth rate. Granger causality analysis indicates bidirectional causality between Nigeria's exchange rate and net export, and unidirectional causality between net export and credit to the private sector, net export and currency in circulation, GDP growth rate and exchange rate, GDP growth rate and currency in circulation, and exchange rate and currency in circulation. Therefore, it is recommended that government should implement complementary measures to stabilize exchange rates, promote export competitiveness and to enhance access to credit for the private sector. Also, to implement policies aimed at stimulating GDP growth in the short term. This could include fiscal measures such as increased government spending on infrastructure projects, tax incentives for businesses, and monetary policies to lower interest rates and stimulate investment
DIASPORA REMITTANCES AND DIGITALISATION IN NIGERIA
Get PDFNigeria is a rising destination for diaspora remittances, which now constitute an important and stable source of foreign exchange to low- and middle-income countries around the world. The importance of remittance lies in its contribution towards the growth of the economies and the welfare of their peoples. Actual transfer of such funds, hitherto non-digital, now trends towards digital processes, which processes are expected to play an important role in its growth. Data from World Bank’s World Development Indicators for the period 1989 to 2023 was employed to estimate a linear, single equation model in which digitalization, proxied by the number of mobile cellular subscriptions per 100, served as an explanatory variable, among others, in a bid to explain diaspora remittances. It was found that digitalization had a significant effect on remittances only at the 10% level of significance. It also had a negative effect. This was attributed to the number of devices, deemed below the benchmark, to which a reasonable magnitude of transfers could be attributed. It was recommended that internet access corridors should be widened in rural areas where a good chunk of remittance recipients reside. It was further recommended that Industrial policy, now the vogue in developed economies, should be urgently developed for the Information and Communication sub sector as a way of facilitating technology adoption and access to devices that play prominent roles in the remittance cycle
AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL REPORTING QUALITY IN DEVELOPING ECONOMIES: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA
Get PDFFinancial reporting quality remains a pressing issue in developing economies where weak institutional frameworks heighten the risk of earnings manipulation, poor disclosure, and creative accounting. This paper investigates the impact of audit committee characteristics on financial reporting quality in listed Deposit Money Banks (DMBs) in Nigeria. The study adopts a conceptual and empirical approach, drawing on existing theories of corporate governance, agency theory, and stakeholder theory. Data from the Nigerian Exchange Group (NGX) and annual reports of listed DMBs are analyzed to determine how audit committee independence, size, financial expertise, and meeting frequency influence financial reporting quality. Findings indicate that audit committee independence and financial expertise significantly improve reporting quality, while committee size and meeting frequency show mixed results. The study concludes with policy recommendations for strengthening audit committee effectiveness in the Nigerian banking sector and other developing economies
IMPACT OF DIGITAL INFRASTRUCTURE ON HUMAN CAPITAL DEVELOPMENT IN NIGERIA
Get PDFDigital infrastructure distribution inequities pose a major global challenge, blocking access to education, workforce development, and economic possibilities, specifically affecting developing nations. As a result, understanding how digital infrastructure influences human capital development has gained importance for nations that aim to eliminate digital disparities. This study investigates the effect of digital technology infrastructure on human capital development in Nigeria, using the Autoregressive Distributed Lag (ARDL) framework to assess the effect of digital infrastructure, economic growth, trade openness and population on human capital development. Analysis of both short-term and long-term digital infrastructure effects on human capital development is based on secondary data that spans from 1986 to 2022. The results show that digital infrastructure exerts statistically positive long-term effects on Nigeria's human capital development. However, short-term disruption was noticed in the first lag, where digital infrastructure showed a negative effect, while the third lag exhibited positive and significant effects. The study concluded that digital infrastructure exerts significant positive and long-term effects on human capital development in Nigeria. Therefore, the study recommends that Government policy needs to focus on building broadband infrastructure networks in areas with limited coverage, such as rural zones, through public-private partnerships with telecom providers, and there is a need to reduce internet service costs by implementing supportive regulations and infrastructure subsidies, which will expand digital learning access as well as create skilled Nigerian workers. These strategic interventions will boost the long-term effect of digital infrastructure on human capital growth and position Nigeria for better economic results in the digital economy
THE IMPLICATION OF MONITORING AND INCENTIVES ON BUDGET IMPLEMENTATION IN NIGERIA: A CASE STUDY OF FEDERAL CAPITAL TERRITORY ADMINISTRATION (FCTA)
No full textThe study examines the Implication of Monitoring and Incentives on Budget Implementation in Nigeria: a case study of Federal Capital Territory Administration (FCTA). The variables studied were, monitoring and incentive. Data was collected from primary and secondary sources. The methodology employed was descriptive statistics, one sample z statistics. The result reveals that lack of incentive and monitoring has negative and statistically significant relationship with budget implementation. Based on this finding, the study concludes that, lack of incentives and monitoring adversely affects budget implementation. Suffice it to say that bureaucratic bottleneck impeded budget implementation. In view of the above conclusion, the study recommends that, there is need for the FCTA to provide incentives and motivation to staff in order to improve performance in; collection of revenues, budget preparation exercise and implementation and to guard against all sorts of behaviours. Also there is need for proper monitoring of budget, adequate provisions of relevant Votes of Charge should be provided so that expenditure will match budget request, good reporting system on the level of accomplishments need to be put in place and efficient mechanisms for project feedback and information required for project monitoring must be available
FISCAL POLICY ON ECOLOGICAL FOOTPRINT IN NIGERIA: AN EMPIRICAL INVESTIGATION
No full textIn recent times, the challenges of government policy formulation to achieve desired objectives and maintaining a sustainable environment without inhibiting human well-being is still an issue of debate among scholars in the literature. Many factors have been identified as culpable of environmental humiliation, but the government policy as a factor is more often than not ignored. However, the government formulates policies most especially fiscal policy that involve the collection of revenue through taxation and expenditure on infrastructural facilities, industrialization, mechanization, urbanization, etc to achieve sustained economic growth without recur to the effect of the policy on ecological footprint and its effects on human well-being in the society. Thus, this study uses the ARDL econometric approach on annual time series data extending from 1981 to 2022 to investigate the effect of fiscal policy on the ecological footprint in Nigeria. The variables used in the study include ecological footprint proxied by comprehensive measures of environmental degradation (dependent variable), government tax revenue and expenditure (independent variable), population, and technological changes proxied by industrial activities are the control variables. The study's findings indicate that fiscal policy variables are both positively and negatively related to ecological footprint and are statically significant. Specifically, government tax revenue reduces ecological footprint while government expenditure escalates the environmental degradation in Nigeria during the period under review and they are all significant statistically at 1% and 5% respectively. Considering these results, the research concludes that fiscal policy formulation has a noteworthy effect in determining changes in the ecological footprint in Nigeria. Given the effect of tax and government spending policy on infrastructure and industrialization, the government should formulate policies that are environmentally friendly and increase budgetary allocation to control and manage environmental challenges that inhabit the well-being of the citizens. By implication, the economic growth policy which invariably leads to ecological footprint challenges should be properly looked at to reduce ecological footprint in Nigeria
STREET VENDORS PERCEPTION OF THE EFFECTS OF THEIR ACTIVITIES ON ENUGU URBAN MORPHOLOGY
Get PDFThis study examined the activities of street vendors operating within the informal economy in Enugu City with regard to its effects on the economy, human relations, environment and resulting government responses. A total of thirteen street vendors were purposively selected for in-depth interviews and non-participant observation. Variables of interest were vendors' perceptions of contributions to urban mobility, community relations and economic dynamics. The analysis was done using content analysis. Findings show that street vendors play pivotal roles in community relations. It was also found that street vendors offer convenient and accessible services, saving residents’ time, convenience of shopping in transit and saving foregone transport money. In terms of the dynamics within the informal economy, it was discovered that some vendors adapt innovative pricing strategies to offer affordability. Based on these findings, it is concluded that street vendors make multifaceted contributions to Enugu's urban economy, cityscape and positive community living. It is therefore recommended that rather see them as a nuisance, urban policymakers and planners have to recognize the significance of street vendors and the informal economy generally in shaping the city's social fabric, mobility patterns, and economic landscape as they strive to create resilient, inclusive urban environments as enshrined in Sustainable Development Goal number 11
NEW PRODUCT PRICING STRATEGY AND CUSTOMER PATRONAGE IN NIGERIA'S BEVERAGE INDUSTRY: EVIDENCE FROM COCA-COLA STARLIGHT AND COFFEE MOCHA
No full textThe rising emphasis on self-care and wellness has led the beverage industry to witness substantial growth, reaching $95.44 million in revenue by 2024, with an annual growth rate of 10.79%. To stay competitive, companies are compelled to focus not only on product innovation but also on effective pricing strategies for new products. The research examines the impact of new product pricing strategies on customer patronage in Nigeria's beverage market, specifically targeting Coca-Cola's Starlight and Coffee Mocha products. By adopting an exploratory research design, online survey data was gathered from 400 Coca-Cola consumers through structured questionnaires measured by a five-Likert rating scale, resulting in a 96.75% response rate. Statistical analyses, including descriptive statistics, ANOVA, and linear regression, were conducted using the SPSS version with an R2 of 64.7% (for customer loyalty) and 51.4% (for brand image), respectively, underscoring the statistical relationship between the research variables. The findings revealed a positive correlation between new product pricing strategies and customer patronage using game and naïve pricing theories, with a p-value of 0.803 (for customer loyalty) and 3.341 (for brand image), respectively exceeding the benchmark of 0.50 as a significant level. The research concludes that companies should strike a balance between skimming and penetration pricing strategies to ensure long-term success, which in turn shapes customer loyalty and fosters a positive brand image. The research recommends that Coca-Cola should use skimming and penetration pricing strategies as a tool to optimise consumer satisfaction and market objectives by conducting regular market research to understand consumer perceptions and tailoring skimming and penetration pricing strategies to specific market segments based on their purchasing power and preferences. The research recognises the potential for biases in data collection arising from unequal online access among Coca-Cola consumers in Nigeria. This may result in a limited representation of diverse consumer behaviours, as varied cultural, economic, and social dynamics influence purchasing behaviours across Africa and other continents in the world