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An Empirical Assessment of Liquidity Management Instruments in Nigeria
No full textThe paper assesses the response of monetary policy target variables to liquidity management instruments, using a Non-linear Autoregressive Distributed Lag (NARDL) model. The analysis focuses on the short end of liquidity management and provides evidence of long-run asymmetric effects of liquidity management instruments, notably, the monetary policy rate (MPR) and excess reserves of banks on the inter-bank rate. The findings show that the impact of discretionary and autonomous liquidity factors remains symmetric. In addition, the policy target rate is more sensitive to a monetary contraction than accommodation
Non-Tax Incentives and Agricultural Output in Nigeria
No full textThis study investigates the impact of non-tax incentives on agricultural sector output in Nigeria from 1981 to 2019, using Autoregressive Distributed Lag (ARDL) Model/Bounds test technique. The findings of this study show that non-tax incentives have a significant positive impact on agricultural sector output growth in the long-run; however, the effect was negative and statistically insignificant in the short run. On the other hand, government expenditure on agriculture was negative and significant on agricultural sector output growth in the short-run, while its long-run impact was also negative but not significant. Therefore, the study recommends targeted expansion of non-tax incentives to the entire agricultural value chain with appropriate monitoring and evaluation to boost output in the sector
Revisiting the finance and industrial growth nexus in Nigeria
No full textThis paper re-examines the relationship between finance and industrial growth in Nigeria by including aggregate credit to the industrial sector and financial development index as additional variables into the industrial growth model. Using data spanning the last four decades, we apply the Autoregressive Distributed Lag (ARDL) bounds testing approach to estimate an industrial growth model that accounts for the role of finance-related variables, while also controlling for the impact of electricity consumption and structural breaks. The key findings in the study are threefold. First, our results confirm that finance is a significant driver of industrial growth in Nigeria. Second, the use of aggregate credit to the private sector in an industrial growth model tends to underestimate the impact of finance on industrial performance in the long-run, compared with the use of a sector-specific measure such as aggregate credit to the industrial sector. Third, accounting for structural breaks provides a higher long-run estimate for the impact of aggregate credit on the industrial sector. These results highlight the need to cautiously interpret results of industrial growth models that fail to (i) incorporate sector-specific credit, and (ii) account for structural breaks. To accelerate industrial growth in Nigeria, it is vital to sustain policies aimed at expanding credit to the industrial sector, such as the minimum Loan-to-Deposit ratio initiative
Refocusing Agricultural Subsidy for Food Security in Nigeria
No full textFood security has remained a key human right-related issue and ranks second only to poverty on the Sustainable Development Goals (SDGs). The objectives of this paper are to identify the gaps in agriculture subsidy regime; and to identify options for refocusing of the subsidy regime to improve food security.
Following the introduction, section 2 explores the nexus of agricultural subsidy and food security, while section 3 reviews the agricultural subsidy regime in Nigeria. Section 4 discusses the input-output dimensions of agricultural subsidy in Nigeria, and in section 5, the paper takes a dive into the agricultural subsidies from international perspective. In section 6, it proposes a paradigm shift for agricultural subsidy for food security, while section 7 concludes the paper
Socio-Economic and Environmental Issues: Implications for Food Security in Nigeria
No full textNigeria has made many policies toward improving the contribution of the agricultural sector in the economy; however, there is a need to fine-tune some of the policies, particularly regarding food security.
There is a need for systemic intervention in the transformation of the agricultural sector including the modernisation/formalisation of the informal sector. T
Therefore, this paper sets out to, among others, investigate the state of food security in Nigeria, especially in relation to the current socio-economic and environmental issues affecting agricultural productivity, and then proffers some policy analytical models and recommendations for ensuring food security in the country
The predictive power of banks\u27 liquidity on profitability in Nigeria
No full textThis study investigated the predictive power of banks\u27 statutory liquidity on their protability in Nigeria between 1990 and 2019. The vector autoregression and variance decomposition methodology were employed. The findings showed that a change in return on asset (ROA) was weakly associated with itself, with liquidity variables, liquidity risk and real gross domestic product growth rates. In a five-year prediction, a 100% change in ROA was explained by itself in the short run. Other variables showed strong exogeneity with ROA, from short to long-run, an indication that banks in Nigeria face bleak future in using statutory liquidity to positively and signicantly affect profitability. Understanding these findings would assist policymakers in their liquidity/protability policy making, and the banks to re-strategize in their liquidity management
Does technological innovations affect unemployment in Nigeria?
No full textThe study examines the effects of technological innovations on unemployment in Nigeria using annual time series data 1980-2018, Autoregressive Distributed Lag and cointegration bound testing approach, Technological innovations was provided by the inflow of FDI; importation of Machinery and Equipment as indicator for process innovation (ETC), Patent represents product innovation, while Total Factor Productivity serves as the exogenous technical progress in line with Solow. The result shows that the coefficient of the inward Foreign Direct Investments (INFDI) is positive (3.85), which is significant at 5%, indicating a strong positive effect of process innovation on Unemployment, Machinery and Equipment was also positive (2.87) and its significant at 5%. However, Patent (1-20) has a negative and significant effect on unemployment. By implication process innovation (with Embodied Technological Change potentially substitutes labour), therefore raises unemployment in Nigeria. There is need to invest more on in-house innovation via R&D activities by, upgrading the learning and skill acquisition standard of the country and also supporting innovative ventures through discoveries, mentorship, provision of capital and macroeconomics stable environment
Is the heterogeneity of expenditure relevant to economic growth? the case of Nigeria
No full textWith the Nigerian economy oscillating around financial quagmire and fast moving towards fiscal unsustainability, this study analysed the impact of disaggregated expenditures on economic growth. Employing data from 1980 to 2019, the study established through the autoregressive distributed lagged technique that heterogeneity in expenditure is relevant to economic growth, with recurrent expenditure contributing insignificantly to economic growth, while capital expenditure negatively impact economic. Thus, among other policy option, the study suggested appropriate expenditure over recurrent expenditure and that government should engage more in the provision of capital projects in the economy
Financing public deficits in Nigeria: groping in the dark for taxation
No full textThe objective of this study is to conduct an expository examination of the inhibitions of voluntary tax compliance and to explore prospects of leapfrogging tax contribution from its posterior position, given the lacunae in precious studies. In the descriptive research design, underpinned by the range of structural-functionalist and expectancy theories, salient among the findings of the study is the diminished contribution of taxation to Nigeria\u27s GDP and total revenue due to weak institutional framework and “faded” enthusiasm of taxpayers. In the circumstance of the situation, and until drastic reforms are successfully executed, Nigeria may be groping in the dark, in search of huge tax revenues
The implications of legal and policy frameworks for e-commerce in Nigeria
No full textThis article seeks to throw light on the legal implications of E-commerce as it affects users in Nigeria. It outlines basic requirements for smooth running of online business in Nigeria from registration to full operations. It also looks at the preparedness of the Nigerian Government to position the country alongside its peers on the digital business map in terms of cyber space security. The paper is structured in the following manner: Conceptual review of E-commerce is discussed in the first section while the second section outlines Nigeria\u27s Preparedness and the journey so far. The third section briefly explains the global Cyber laws in existence followed by requirements for owning and running online frms in Nigeria. The final section deals with the theoretical concept and recommendation