10 research outputs found
Political economy of fiscal deficits in a democracy
No full textStudies on the impact of political considerations and gimmickry on the fiscal policy process in developing countries have largely been underappreciated and lacking. Therefore, this study set out to investigate how political actions impact fiscal deficits in Nigeria. The study employed descriptive and quantitative techniques using the Herfindahl index-based composition and turnover of the legislative and executive seats per party as well as that controlled by the ruling party. The results showed the prevalence of fiscal illusion among a significant proportion of voters; and that political considerations exert a significant impact on the implementation of fiscal deficits in Nigeria. Budgetary institutions were found to exert an insignificant impact on the fiscal policy process. Revitalization of the country’s budgetary institutions and a reorientation and refocusing of media organizations to ensure objectivity in the reportage of government activities is recommended. JEL classifications: D72, E62, Keywords: Political economy, Fiscal deficit, Turnover of legislative house
Tax Innovation, Administration and Revenue Generation in Nigeria: Case of Cross River State
No full textTaxation as a potent fiscal policy instrument through which infrastructures and social services that drive the development process of any society has been ineffective in Nigeria. The adoption of appropriate measures is, however, a requirement for the generation of adequate tax revenue. This study set out to investigates efficiency and effectiveness in the administration of tax in Nigeria, using Cross River State as a case-study. The methodology to achieve this objective is a qualitative technique using structured questionnaires to survey the three senatorial districts in the state; the central limit theory is adopted as our analytical technique. Result showed a significant degree of inefficiency in the administration of taxes. It is recommended that periodic review and update of tax policy will bring innovation and effectiveness in the administration of taxes. Also proper appropriation of tax revenue will drive development in needed infrastructural and social services
Manufacturing Subsector and Economic Growth in Nigeria
No full textThe manufacturing subsector has become increasingly important as the engine and driver of economic growth in both developing and developed economies. This study set out to investigate the relationship between manufacturing output and economic growth. The analysis was conducted using time series data from the period of 1981-2013. To quantify the relationship between manufacturing output and economic growth, an eclectic model consisting of both the Kaldor’s first law of growth and the endogenous growth model was estimated. Findings from the study showed that manufacturing output, capital and technology were the major determinants of economic growth. Results also confirm that quality of institutions and labour force does not exert any impact on economic growth. The study concludes that the provision of capital in the form of financial resources to fund the manufacturing sector will greatly improve manufacturing activities in Nigeria. Furthermore there is the need to improve resource allocation to the field of research and development to promote innovative development such as technology adaptation to boost manufacturing activities within the country
NON-TECHNICAL LOSSES, ENERGY EFFICIENCY AND CONSERVATIVE METHODOLOGY IN THE ELECTRICITY SECTOR OF NIGERIA: THE CASE OF CALABAR, CROSS RIVER STATE
Get PDFToday’s challenge in electricity consumption in Nigeria is on how to use electricity wisely. Nigeria electricity sector is facing abnormal power supply situation, as demand outstrips supply, culminating in electricity supply-cum–demand imbalance. This owes to inefficiency and non technical losses which contributes to incessant power outages resulting in heavy economic losses and poor performance of the economy. This study investigates and identifies non-technical losses in the electricity sector occasioned by illegitimate activities. The methodology is a combination of quantitative and qualitative sample survey. The data set is a simple random sampling of households using electricity, and the number of units chosen was based on statistical power analysis. The result shows that energy wastage is from poor lighting attitudes, and choice of appliances. Implementation of efficient lighting attitudes is encouraged. Findings from the study if replicated will serve as a model for energy efficiency and methodology for the Nigeria Economy
MACROECONOMIC ANALYSIS OF FISCAL POLICY AND SMALL AND MEDIUM-SCALE ENTERPRISES OUTPUT IN NIGERIA
No full textFiscal policies, specifically taxation, affect the output growth of SMEs in most developing countries. This study analysed the impact of taxation on small and medium enterprises output in Nigeria using the Auto Regressive Distributed Lag model econometric technique using the ex-post facto research design. The econometric equation is anchored on the Solow-Swan and Keynesian theories. Secondary data from 1981 to 2022 was collected from The Central Bank of Nigeria, the International Labour Organization, and the World Bank Development Indicators. The unit root test showed that the variables were of mixed order of integration which warranted the use of the Bounds testing approach. Taxation had a positive and significant effect on SME output in the long run, loans and electricity supply were found to be positive and significant drivers of SME output in Nigeria. The study thus recommends that the long run effect of taxation should be considered by government when it has to do with SMEs. Also, efforts to shore-up the dedicated funds in specialized funding bodies like Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Bank of Industry should be activated to increase loans to SMEs. Third, government should open the electricity generation and distribution sector to private investors to enhance consumption. 
FINANCIAL INCLUSION, MICROCREDIT AND PERFORMANCE OF SMALL AND MEDIUM SCALE ENTREPRISES IN NIGERIA
Get PDFDespite government efforts to ensure that SMEs play an important role in the Nigerian economy, the sector is still struggling to survive due to so many hindrances, among which are financial exclusion and lack of access to credit. This study is an attempt to investigate the impact of financial inclusion on the performance of small and medium scale enterprises in Nigeria using ARDL technique with data time series data from 1980 to 2022. Financial inclusion was measured by commercial bank branches, the number of rural bank branches and deposits of rural bank branches. The performance of SMEs was proxied by the output of retail and wholesale trade. Findings from the study revealed that a long-run relationship exists among the variables in the estimated model. The results of the Error Correction Mechanism (ECM) within the framework of the ARDL show that there is a positive and statistically significant relationship between the number of commercial bank branches (NDMB) and the output of SMEs (SMEQ) in Nigeria in the long run period. The relationship between the number of rural bank branches (NRBB) and the output of SMEs (SMEQ) was found to be positive and statistically significant at a five per cent significant level. The study therefore recommends that the Central Bank of Nigeria should deepen its pressure on commercial banks through special directive with the aim of promoting financial inclusion through the expansion of microfinance banks branches in rural areas
THE EFFECT OF GOVERNMENT EXPENDITURE AND SMALL AND MEDIUM SIZED ENTERPRISES' OUTPUT ON EMPLOYMENT IN NIGERIA
Get PDFThis study investigated the impact of government expenditure and micro and medium enterprises output on employment in Nigeria using the Auto Regressive Distributed Lag model econometric technique. The research design was an analytical approach within the ex-post facto research strategy and the econometric equation is anchored on the Keynesian theory of employment. Secondary data from 1981 to 2022 was collected from The Central Bank of Nigeria, the International Labour Organization, and the World Bank Development Indicators. The unit root test showed that the variables were of mixed order of integration which warranted the use of the Bounds testing approach. The short-run ARDL results for the employment equation show that the estimated long-run coefficients of total government expenditure, output of small and medium-scale enterprises measured by wholesale and retail trade, and human capital development measured by secondary school enrolment were all positive and statistically significant. The study recommended proper channeling of government expenditure into productive economic activities with a direct bearing on the lives of the people. The Government should also encourage and strengthen small-scale enterprises through training and credit support to reduce unemployment. Dedicated funds in specialized funding bodies like the Bank of Industry and Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) should be increased to increase loans to micro and small enterprises (MSEs)
Do Institutions and Social Capital matter in the Economic Development of Nigeria?
Get PDFAbstract. This paper addresses the impact of institutions and social capital on economic development of Nigeria. It advanced an argument that economic prosperity of a country is embedded in social organizations and transformations of her institutions built from social capital. The methodology adopted was quantitative and qualitative. The results present a declining negative impact of social capital and institutional variables on economic development; affirming the importance of social capital on institutional quality. Therefore, the way forward is taking a tougher stance against abuse of power and employ mechanism of social capital to reconcile conflict among social, political and economic interest groups.Keywords: Institutions, Social capital, Economic development.JEL. D70, H10, O10, O40
Pragmatic investigation of the effect of green and low-carbon economies on food safety in Africa
No full textAbstract This research examines the relationship between a green economy—defined as an economy that promotes sustainable development through low-carbon, resource-efficient, and socially inclusive practices—and food safety across 37 African countries from 2005 to 2020. Drawing on data from the Food and Agricultural Organization (FAO), the Country Policy and Institutional Assessment (CPIA), and World Development Indicators, this study employs the generalized method of moments (GMM) approach to address endogeneity issues inherent in economic analyses. The findings indicate that a shift toward a greener economy significantly enhances food safety, with each one-point improvement in green economic indicators associated with a 0.24% increase in food safety levels. This underscores that as African economies reduce carbon footprints and adopt sustainable agricultural practices, they experience fewer food safety challenges, largely due to improved environmental health and reduced biodiversity loss. The study concludes that prioritizing green economic growth is essential for environmental sustainability and the agricultural sector’s stability. These insights emphasize the need for policymakers and stakeholders to implement green economy strategies that enhance both ecological resilience and food security, ultimately improving health and livelihood outcomes in African communities. This study stands apart from existing literature by uniquely focusing on the relationship between the green economy and food safety within the African context, which remains underexplored despite the continent’s pressing environmental and food security challenges. Utilizing a dynamic panel Generalized Method of Moments (GMM) model, the research rigorously addresses endogeneity concerns to provide robust insights into how environmental management and other green economy policies influence food safety outcomes across 37 African nations. This methodological approach enables more accurate capture of temporal dynamics and causal relationships, offering policymakers context-specific, evidence-based recommendations tailored to Africa's socio-economic and ecological realities
A New Form of Authoritarianism? Rethinking Military Politics in Post-1999 Nigeria
No full textDespite the vast research that has been done on the Nigerian military, virtually all of these studies have failed to critically examine the accepted role of the military in the democratising phase. This is important because the relationship between the political elite and the military in post-military authoritarian states guarantees either democratic consolidation, or its reversal. In Nigeria, despite an appearance of significant progress in subordinating the military institution to democratic civilian authority, the military remains a crucial political actor in the polity. It appears that the military has yet to accept the core democratic principles of civilian oversight of the institution. This thesis, therefore, explores whether a new form of military authoritarianism is emerging in Nigeria, with the aim of understanding Nigeria’s military behaviour in a transitional phase, from prolonged military authoritarianism to democratisation. To examine this military behaviour, Alfred Stepan’s concept of military prerogatives that was used to understand the military’s behaviour in a transitional phase in Latin America is applied to Nigeria.
A crucial understanding of authoritarianism in Nigeria is initially discussed in this study using mainly document analysis strategy to examine whether multi-ethnic states, such as Nigeria, tend to have authoritarian systems. Six hypotheses form the core analysis of this thesis: first, that the military has retained significant military prerogatives; second, that retired military officers are gaining influential political and economic positions; third, autonomous military involvement in human rights abuses since 1999; and fourth, that civilian government oversight remains weak, and facilitates military authoritarianism. These hypotheses are primarily analysed using the elite interview technique. During the first half of 2011, the author conducted field research where serving and retired military officers were interviewed. The fifth hypothesis is that the military has intervened in politics post-1999. The examination of this hypothesis relies primarily on key security-related media reports (mostly newspaper editorials) on the military after 1999. The examination of the final hypothesis, that increases in military expenditures might facilitate a new form of military authoritarianism, relies primarily on descriptive statistical analysis. In addition, this study collated relevant historical materials that relate to the military, utilising national archival collections.
The empirical findings of this research did not identify a new form of military authoritarianism in Nigeria. The study, however, argues that the unrestricted institutional framework accorded the military has contributed significantly to authoritarian practices in the post-military era in Nigeria. This study discovered that there were similarities between the Brazilian and Nigerian militaries in regard to their military spending during their period in power. Both countries had lower defence budgets. Just as in Brazil, it appears that part of the reason the Nigerian military decided to relinquish power in 1999 had to do with its desire to gain a higher budget, something that was precluded in a military government struggling to retain a sense of legitimacy. The military needed a higher budget to modernise and re-professionalise its institution after more than a decade in power. This feature, which the Nigerian military shares with the Brazilian military, appears to justify the application to Nigeria of Alfred Stepan’s concept of military prerogatives.
