GUSAU JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES
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SUSTAINABLE FINANCING OF MICRO, SMALL AND MEDUIM ENTRISE (MSMEs) THROUGH ISLAMIC BANKING PRODUCTS IN NIGERIA, KATSINA STATE
Get PDFThe Micro, Small and Medium Enterprises (MSMEs) play important role on employment creation, manpower and skills development, industrial development, poverty reduction and economic growth and thereby recognized as engine for socio-economic transformation in both developing and emerging economies of Africa and Asia respectively. However, these enterprises are facing pyramid of problems, several among them though not exhaustive include: inadequate capital, managerial inefficiency and inaccessible credit facilities from formal financial institution. The problems of inadequate capital and inaccessible credit facilities from the conventional banking sector are the most critical. The MSMEs are lacking access to institutional credit at both commercial and development financial institutions; considered high credit risks by the financial institutions. Conventional banks are also characterized with the receipt and payment of interest; associated with non-Shari’ah compliant financial products. Hence, the need for ethical banking system; considered competitive and alternative to conventional banking products, more responsive to the environment of the study (Katsina state), which is referred to Islamic banking. This paper is motivated to discuss the Islamic banking products and their efficacy towards attainment of sustainable financing of MSMSEs in Nigeria, Katsina state. The tools of the research are basically analysis on the subject matter of the study with a collection from secondary data. Furthermore, the research paper is relevant to Islamic (commercial and micro finance banks, saving and credit multipurpose cooperative societies) financial institutions. The knowledge, skill and abilities of the management and staff of those institution as well as other stakeholders will be enhanced. It is also serve as a good reference for academics and therefore, advancing the frontier of knowledge in the field of study
ENERGY SUBSIDY REFORMS, SOCIAL CONTRACT AND POVERTY REDUCTION IN NIGERIA
Get PDFThe study examined the relation among energy subsidy, social contract and poverty in Nigeria covering the period 1999-2022. The study used autoregressive distributed lag (ARDL) model, dynamic ordinary least square (DOLS), and fully modified ordinary least square (FMOLS) approaches to determine the outcome of long-term estimates of the ARDL robustness. The unit root tests shows that the series were stationary at levels I(0) and first difference I(1). Cointegration was established with 2 optimal lag. The results of DOLS and FMOLS show that energy reforms of petrol motor spirit, automobile gas oil, dual purpose kerosene and electricity tariffs have impacted on high level of poverty in Nigeria. The reforms have also affected control variables like inflation and per capital income as inflation erodes the purchasing power of economic agents. The study suggests the need to deepen and implement short-to medium term fuel subsidy removal using market-based pricing as a necessity to protect the poor. This should be complemented by conversion plan from petroleum to natural gas (CNG) vehicles. Strategic policies to strengthen the voice and accountability by the citizens are required. It is essential to trust between government and citizens to strengthen social contract in a manner that improves service delivery, reduce corruption and strengthen institutions which will enhance subsidy reforms more feasible
FOREIGN DIRECT INVESTMENT, AGRICULTURAL PRODUCTIVITY AND FOOD SECURITY IN SUB-SAHARAN AFRICA
Get PDFThis study examines the impact of foreign direct investment in agricultural productivity on food security in sub-Saharan Africa covering the period 2010-2020. The data were obtained from World Bank World Development Indicators, United Nations Food and Agricultural Organization and United Nations Conference on Trade and Development. The technique used for data analysis is System Generalized Method of Moment. The results of Arrelano-Bond tests show no autocorrelation. The estimated GMM-SYS results show that foreign direct investment in agriculture is positive and statistically significant in influencing food security variables including food consumption score (with the coefficient of 0.042) and dietary energy consumption (with the coefficient of 0.317). The control variables like crop production, food exports, age dependency and rural population are significant determinants of food consumption score. Also, GDP per capita, crop production, age dependency and rural population are significant factors influencing dietary energy consumption in Sub-Saharan Africa. Based on the findings of the study, there is need for regional governments to ensure tenure reforms by formalization of customary rights to enhance tenure security for a more equitable access to land. It is also essential that proper monitoring and impact assessment systems are developed to ensure transparency of the processes associated with agricultural investments. Furthermore, countries with currently high foreign direct investment transaction costs or that have a generally less conducive investment environment can improve agriculture by eliminating these obstacles
LOGISTIC APPROACH OF THE EFFECTS OF FINANCIAL INCLUSION ON THE LIVELIHOOD OF SMALLHOLDER FARMERS IN PLATEAU STATE
Get PDFThe overall study's goal was to look into a logistic approach to the effects of financial inclusion on the livelihood of smallholder farmers in Plateau State. The study's particular goal was to find out if Financial Inclusion has a positive effect on the livelihood of smallholder farmers. The study's audience was smallholder farmers who were active in agricultural practices in Plateau State, Nigeria. The sample size was 399 households that par-took in agricultural practices in Plateau State. Primary data were gathered for the study using structured questionnaires. The collection of primary data was done through the administration of questionnaires to selected smallholder farmers. From the data collection process, the researcher was assisted by research assistants that made frequent follow-up on the respondents to ensure that high response rate was achieved. The study used the logistic regression model in carrying the analysis in order to achieve the objective of the study. The study found that financial inclusion plays a significant role in transforming the livelihoods of smallholder farmers in Plateau State. Access to formal financial services such as savings accounts, credit facilities, and insurance products positively influenced farmers’ economic outcomes. The findings of this research study indicate that financial inclusion has a significant positive impact on the livelihood of smallholder farmers in Plateau State, Nigeria. Access to financial services and financial literacy were identified as crucial factors influencing farmers' economic well-being. However, variables such as age, gender, and education did not show significant effects in this context. Based on the research findings, the following recommendations are made: Improve access to financial services, strengthen financial literacy programs, targeted support for vulnerable groups and continuous monitoring and evaluation
EFFECTS OF EXCHANGE AND INTEREST RATES ON MANUFACTURING SECTOR PERFORMANCE IN NIGERIA: ARCH AND GARCH APPROACH
Get PDFThis study evaluates the effects of exchange, and interest rates on manufacturing sector performance in Nigeria. The data were sourced from the World Bank's World Development Indicators (WDI) and the Statistical Bulletin of the Central Bank of Nigeria (CBN) for the analysis. The unit root test was performed on the formulated model using the Augmented Dickey Fuller (ADF) method. The log of manufacturing sector contribution to GDP (MUFQ), exchange rate (LEXR), inflation rate (LIFR), and bank size (LBKS) were integrated at order zero I(0) while and the log of interest rate spread (LIRS). was stationary at order one I(1), as shown by the Augmented Dickey Fuller unit root test. In order to determine whether there is a long-run relationship between interest rate, exchange rate, and inflation, a bound test was conducted using the Auto-regressive Distributive Lag (ARDL) model. High volatility in exchange and interest rates have a positive effect on manufacturing sector performance, as shown by the results of the Auto-regressive Distributive Lag (ARDL) bound test, and the results from Arch and Garch corroborate these findings. Auto-regressive Distributive Lag (ARDL) results indicated a positive and statistically significant relationship between the exchange rate and the performance of the manufacturing sector over time at 0.05 level. However, bank size revealed a positive but insignificant relationship with manufacturing sector performance in the short-run, while the coefficient of interest rate spread and inflation rate were both negative and significantly influenced manufacturing sector performance in the current year period. The paper concludes that Nigeria's manufacturing sector is strongly correlated with the country's exchange and interest rates. The study recommended amongst others that as a result of too much dependence on oil, the federal government should peg the local currency rate and mandate the deposit money banks through the Central bank of Nigeria (CBN) to maintain a single digit interest rate. This would boost investors’ confidence on the Nigerian economy as well as the financial system while efforts should be taken to diversify the economy to ease the pressure from the local currency
INSTITUTIONAL DETERMINANTS OF POVERTY IN SUB-SAHARAN AFRICA
Get PDFThis study investigates the macroeconomic determinants of poverty in Sub-Saharan Africa using a panel data set drawn from 45 countries for the period 2011 to 2020. We employed the Systems Generalized Method of Moments (GMM) models as tools of analysis. The results obtained indicate that factors such as exchange rate volatility, Government effectiveness, political stability, previous level of poverty and control of corruption influence increase in the rate of poverty in the sub-region. Given these results, measures such as stable macroeconomic policies to curb exchange rate volatility, good and effective governance, stable political environment and proper control of corruption are suggested as part of recommendations as well as possible solutions to wide spread poverty in SubSaharan Africa
ELECTRICITY SUPPLY AND STABLE POLITY FOR GREEN GROWTH IN SUB-SAHARAN AFRICA
Get PDFThis paper examines the impact of clean electricity and political stability on green growth in sub-Saharan Africa. The Generalized Method of Moments (GMM) was used as the estimation method and 45 sub-Saharan countries were considered from 2008 to 2017. The interactive result reveals a positive and significant effect of clean electricity on green growth. Political stability also shows a positive and significant impact on green growth. However, the non-interactive result suggests an insignificant effect of clean electricity on green growth. In general, clean electricity has a positive impact on green growth in sub-Saharan Africa. The implication of this for policymakers is that for clean electricity to have the desired impact on green growth, a stable political environment cannot be overemphasized. Moreover, clean electricity development can instantaneously encourage the development of smart cities and job creation in the region
IMPACT OF LIFE INSURANCE DEVELOPMENT ON ECONOMIC GROWTH: A CASE STUDY OF NIGERIA (2000-2022)
Get PDFThis study explored the development of life insurance and economic growth using Nigeria as a case study from 2000 to 2022. The study examined the relationship between life insurance development and economic growth and analysed the effect of life insurance penetration and density on the real GDP growth rate. Data used for the study were collected from sources including the World Development Indicator database, Global Financial Development Indicator database, NIA digest database, and Central Bank of Nigeria statistical bulletin. The investigation approach used the Granger causality test and Autoregressive Distributed Lag (ARDL) co-integration. The Granger causality test result indicated that there is no causal connection between Nigeria's economic growth and the development of life insurance. According to ARDL's estimated results, life insurance density and penetration had a negligible positive effect on the real GDP growth rate. This finding revealed that life insurance development did not contribute to Nigeria’s economic growth from 2000 to 2022. This study recommended, among others, that life insurance institutions should increase their scope of operations to be directly involved in business investments other than financial market investments to enhance their significance level in Nigeria's growth process.
THE MODERATING ROLE OF EMPLOYEE COMMITMENT ON THE EFFECT OF LEARNING ORIENTATION ON SMES PERFORMANCE
Get PDFThe study examines the moderating role of employee commitment on the effect of learning orientation on SMEs performance. SMEs has not been performing in Nigeria because of low level of learning orientation, entrepreneurial skills, poor management practices, low access to money and capital markets, low equity participation from the promoters because of insufficient personal savings due to their level of poverty and low return on investment, inadequate equity capital. The main objective of the study is to examine the moderating role of employee commitment on the effect of learning orientation on SMEs performance. 408 usable questionnaires were gathered to determine 2 hypotheses developed to address the research problem, and PLS-SEM path modeling was employed to analyze the data. The findings of the study revealed that learning orientation has significant effect on Small and Medium Enterprises (SMEs) performance and employee commitment moderate the effect of learning orientation on Small and Medium Enterprises (SMEs) performance. The study recommended that Owner/managers should encourage employees to introduce new ideas, new technology, new way of thinking implement and utilize these abilities as this will improve SMEs performance
SPILLOVER EFFECTS OF THE FUTURES CONTRACT PRICES OF THE NYMEX CRUDE OIL: A MULTIVARIATE GARCH APPROACH
Get PDFThe main aim of this paper is to investigate spillover effects of the futures contracts prices of the Nymex Crude Oil. Tse and Tsui (2002) multivariate generalized autoregressive conditional heteroscedasticity model is used and a two-step MGARCH estimation of the two crude oil futures contracts prices of the New York Mercantile Exchange (NYMEX) is carried out. The results revealed of conditional volatility correlations between crude oil futures contract-3 and futures contract-4 of the NYMEX. The economic implication of this results is that a volatility of futures contract-4 could affect the volatility of futures contract-3 and vice-versa, which suggests that investment uncertainties associated with one of the contracts could foster investment uncertainties in the other contract which might raise the level of risks in the market and affect portfolio allocations of investors as well as firms' investment plans on the market. Therefore, the high level of volatility co-movements between the two series suggests that during the sample period there was high degree of volatility correlations between the two futures prices, which indicates that the forces driving the two futures prices of the NYMEX might be similar. Based on the finding of the study, the paper recommends that, authority concern should come up with appropriate policy that will reduce volatility correlations between crude oil future contracts