6 research outputs found
The Role of Entrepreneurial Financing on National Output: An Empirical Analysis
No full textDue to the magnanimous role of entrepreneurial finance in spurring output thereby fostering economic performance as supported by the intermediation and entrepreneurial financing theory, this study explored the influx of entrepreneurial financing on output generation in Nigeria utilizing secondary sourced data over the period of 1992 to 2014. The study was carried out utilizing analytical tools such as the Unit root/Stationarity test, Ordinary Least Squares Regression, Johansen Co-integration, Error Correction Estimates and Pairwise Granger Causality tests. It was discovered that in both the short and long run relationship, analyses indicated that Micro-Credit (MC) and Commercial Banks Loans to Small and Medium Scale Enterprises (CME) influence on the Gross Domestic Output in the nation had been on the increase. It was discovered that Access to Credit Facilities (ASCF) and Small and Medium Equity Investment (SMIE) played insignificance role in the nation’s performance level. This study discovered the accessibility to fund a major problem. In this light, it was recommended that government ought to, as a matter of criticality, help planned business visionaries to have admittance to the public purse to back them up and provide them easy access to fundamental data identifying with business opportunities, present day innovation, crude materials, business sector, plant and hardware which would empower them to diminish their working expense.Key Words: Micro-Credit, Commercial Bank Loans to the Small and Medium ScaleEnterprises, Access to Credit Facilities, Small and Medium Industry EquityInvestment
The Impact of Revenue from Treasury Looting on The Economic Performance of Nigeria
No full textThis study investigates the intricate relationship between revenue from treasury looting and economic performancein Nigeriafrom 1990 to 2021.The study employs secondary data which were gotten from various sources such as the Central Bank of Nigeria Statistical Bulletin and the Nigerian Bureau of Statistics. The findings of the study reveal several key insights. First, corruption through treasury lootingsignificantly negatively impacts Nigeria's economic growth. Higher perceived corruption levels are associated with lower GDPGR, highlighting the adverse effects of corruption on economic development.Second, the study identifies a positive short-term relationship between the growth rate of reported looted funds (TLFN) and GDPGR. However, this effect may not be sustainable in the long run, raising concerns about the sources and implications of such funds on the economy.The practical implications of these findings underscore the imperative of anti-corruption efforts in Nigeria. Strengthening governance, enhancing transparency, and implementing effective anti-corruption measures are essential for promoting sustainable economic growth. While short-term economic boosts from looted funds may occur, they are not a viable strategy for long-term development and can undermine trust in the economy.This study contributes to the ongoing discourse on corruption and economic performance in Nigeria and provides valuable insights for policymakers, stakeholders, and researchers. It emphasizes the need for sustained and comprehensive efforts to combat corruption and foster an environment conducive to economic prosperity in the country
Tax Compliance Behaviour and Revenue Generation in Nigeria
No full textThis research aims to investigate the nexus between tax compliance behavior and revenue generation in Nigeriafrom 1994 to 2022. The study investigates the level of compliance across different types of tax elements such as Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Education Cess (CED), and Professional Property Tax (PPT). Data was sourced from the Federal Inland Revenue Services and the Central Bank of Nigeria. Employing an ARDL Cointegrating model, the study reveals varying degrees of compliance based on coefficients and statistical significance. High compliance rates are observed in VAT, followed by CIT. PIT, CGT, and CED show lower levels of compliance, and PPT shows a lagged but positive relationship. The study concluded that the key factors influencing compliance include the complexity of the tax code, enforcement mechanisms, and societal attitudes toward each type of tax. VAT shows high compliance due to its simplicity and strong enforcement, while CIT compliance is influenced by audit likelihood and reputational risks. PIT has complex regulations, which may lead to lower compliance rates. CGT and CED may suffer from a lack of understanding and lower enforcement. PPT compliance varies significantly depending on local administration efficacy. The study recommends that the nature of compliance can be improved through simplification of tax codes, better enforcement, and public education campaigns. The study integrates insights from previous research and offers a comprehensive framework to understand tax compliance across different revenue streams
An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria
No full textIn an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria
Naira Redesign and Cashless Policy: the Nigerian Experience
No full textThe Nigerian economy has witnessed significant transformations in recent years, including a redesign of its currency, the Naira, and the implementation of a cashless policy. This article delves into the Nigerian experience of Naira redesign and the adoption of a cashless policy, exploring their implications on the economy. Through an extensive literature review, detailed methodology, and analysis of results, the study discovered that the currency redesign policy in Nigeria has had a profound impact on the nation's economy, yielding a range of advantages and challenges. This abstract provides a concise overview of the implications of the policy.The advantages of the currency redesign include enhanced economic security through a significant reduction in counterfeit currency circulation, increased foreign investor confidence, and a reduction in the informal economy. Additionally, the policy has improved transparency, fostered economic stability, supported anti-corruption efforts, bolstered Nigeria's international reputation, and promoted greater confidence in the banking system.However, challenges exist, including initial implementation costs, potential confusion during the transition, logistical hurdles, resistance to change, and the risk of incomplete transition. The study employed secondary time series data which was quarterly in nature and spanned from 1992 to 2021. The methodologies adopted in the study are the unit root (stationarity) test for the validation of the data, the Johansen co-integration test for the level of relationship among the variables and to validate the result error correction model, and the Granger causality test. Findings reveal that point-of-sales transactions and Unstructured Supplementary Service Data Transactions contributed to Nigeria's economic growth in a positive and significant way while Website/internet transactions and Mobile payments negatively contributed to economic performance in Nigeria. As such, we conclude that the negative contribution of Mobile payment and Website/internet transactions to economic improvement may be linked to the high volume of fraudulent activities associated with this version of E-banking and excessive charges on such transactions. The study recommends that efforts should be directed toward enhancing digital infrastructure, promoting regulatory frameworks that support innovation and consumer protection, and fostering technological advancements to maximize the potential of these payment methods
