The major objective of this study is to examine the impact of commercial banks operations on the economic growth and development of Nigeria for the period (1980-2014). The study specifically examined the impact of private sector credit, deposit mobilization, interest rate spread and commercial bank holding of treasury bills on the growth of the Nigerian economy. The ex-post facto and exploratory designs were adopted and secondary data were sourced from the CBN statistical bulletin and collected using desk survey. Error correction mechanism was employed to assess the impact of private sector credit, deposit mobilization, interest rate spread and commercial bank holding of treasury bills on the growth of the Nigerian economy. Our result revealed that there is a positive and significant relationship between private sector credit, commercial bank deposit mobilization, interest rate spread and the development of the Nigerian economy; while there is no significant relationship between deposit money bank holding of treasury bills and the development of the Nigerian economy. Based on these findings, it is recommended that government and other monetary authorities should use selective credit control measures in order to persuade banks to grant more loan and advances to the private sectors which are the engine of economic growth in Nigeria. Efforts should be made by government to regulate the interest rate charged by banks on lending to businesses in Nigeria and finally, the holding of treasury bills by commercial banks should be reduced to enhance the ability to lend to the public for productive purposes
Dependency and Underdevelopment of Nigerian Economy (Published)
“Dependency and Underdevelopment of Nigerian economy” was developed to examine the state of Nigeria’s political and economic underdevelopment, in the course of her dependence on the Western Capitalist World. ‘’My people have been successfully managing their political system before the advent of the whites in Africa, and even the presence of whites brought distortion to the African political and economic system’’ (Kwame Nkruma, 1957). Prior to the incursion of the British in Nigeria, the country was no doubt with the capacity of organized institutions which were put in place for smooth governance. Obviously, most of these political systems were independent of one another, and were self-reliant. Historically, a lot of facts were gathered and supported by scholars that African societies, before the coming of the whites were not underdeveloped because they were able to develop within their capacity based on their agricultural economy. “Dependency and underdevelopment of Africa Nigeria inclusive, is unveiled by successive phenomena such as slave trade, capitalism, colonialism, imperialism and neo-colonialism. It should be noted, however, that the countries that are depending on the rest are mostly poor countries of the third world, Nigeria is a typical poor third world country and underdeveloped that depends on the western world for decision and implementation of economic development of the west to her own detriment. In the light of the consideration therefore, this research work is designed to identify the historical forces which led to Nigeria’s dependency and underdevelopment. It is also the aim of the study to examine the relationship of the western economies and the third world economies, and to study the crucial concepts that are closely related to the problems of dependency and underdevelopment. Specifically, it will investigate the major causes of political and economic dependency in Nigeria, cum the impacts or the roles of the Nigerian elites in the course of Nigerian dependency and underdevelopment. Thus, also fashion out pragmatic hypotheses that would address the major menace, roles, and impacts of multinationals on the economic dependency and underdevelopment of Nigerian State.
Economic recessions increase costs, risk, stress, uncertainty, and business failures while decreasing the availability of employment. Individuals who seek to become self-employed in recessionary times, whether out of need or for opportunity reasons, face difficult and unique circumstances. The paper examines the effect of economic recession on entrepreneurship opportunities in Nigeria. The paper use ordinary least square regression to model the effects of economic recession on the probability of individuals engaging in necessity or opportunity entrepreneurial activities both before the recession and during the recession. Key findings indicate that before the recession, entrepreneurs were more likely to engage in opportunity-driven entrepreneurial activities. Positive employment growth rates before the recession also increased the probability entrepreneurs engaging in necessity and opportunity entrepreneurship. The recession marked a shift in the motivation of entrepreneurs to become self-employed and a clear decline in opportunity entrepreneurship and an increase in necessity entrepreneurship. The paper conclude that economic recession has a significant effect on opportunity and necessity entrepreneurs in Nigeria and recommend among others that promoting entrepreneurship should be high in the agenda of governments seeking growth and policy makers should be more precise in their macro and micro policy directions to target their efforts in promoting entrepreneurship as an effective instrument in defeating recession in the country.
Palm oil which is a product of oil palm is a very important domestic and industrial product that has variety of uses. The Nigerian economy in the 1950s till middle 1960s prior to the discovery of crude oil in 1957 was the largest producer of oil palm in the world. The discovery of oil shifted the emphasis of the economy from agriculture to crude oil exploitation. There is an increasing agitation for the diversification of the economy and specifically, the rejuvenation of the oil palm sector. The revitalization of the oil palm sector has the capacity of fast tracking the economic development of the country owing to the various products of the palm and the multiple uses of the products. The research adopted a “desktop research” approach and made evaluation of existing situations. Documents on oil palm production in Nigeria, media and agencies reports on oil palm business in Nigeria were used as primary sources of information. The article concluded with discussions on the way forward to rejuvenate the oil palm sector in Nigeria.
The study empirically examined the impact of fiscal policy on the economy of Nigeria between 1994 and 2014. Secondary method of data collection was used to generate data for this study and the sources of the data included annual reports /accounts and CBN statistical bulletin (2015). Multiple regression of ordinary least square estimation was the tool used to analyse the data in this study. In the model, real GDP (as dependent variable) was regressed on capital expenditure, recurrent expenditure, tax revenue and external debts. The study has revealed, that there exists no significant relationship between capital expenditure, recurrent expenditure, tax revenue and the real GDP representing the economy. However, the study found a significant negative relationship existing between external debts and the real GDP. This supports the Keynesian view of government active intervention in the economy using appropriate various policy instruments. The study therefore recommends that: Government should use fiscal policy to complement the adoption of effective monetary policy and maintain the rule of law to promote stability in the Nigerian economy. Government should ensure that capital expenditure and recurrent expenditure are properly managed in a manner that it will raise the nation’s production capacity and accelerate economic growth even as it reduces external borrowing.
Evaluation of the Contribution of Portfolios of New Contributory Pension Scheme on Nigerian Economy (Published)
Pension fund investment is one of the key areas in the new contributory pension fund in Nigeria. One of the major challenges confronting the managers of the PFAs in investment decisions is the dearth of investment outlets which has been spread into various securities. The focus of this study is to evaluate the contribution of portfolios of new contributory pension fund on Nigerian gross domestic product (GDP) and the relationships between the pension portfolios with the Nigerian GDP. The population of the study entails nine (9) years while six (6) years were sampled for study (2007-2012). The parameters like Domestic Ordinary Shares, Federal Government of Nigeria Securities, Local Money Market Securities and Real Estate Property of pension fund for the period under review were used. Statistical tool like Scientific Packages for Social Scientists (SPSS) version 18.0 were used to regress the data and the hypotheses were tested using F-test and Pearson product moment correlation test. Result shows that, Domestic Ordinary Shares, Federal Government of Nigeria Securities and Real Estate Property of pension fund all have positive contributions to Nigerian gross domestic product for the period under review while Local Money Market Securities have negative contribution to Nigerian GDP. We recommended that, there should be more investment of pension fund in Domestic Ordinary Shares, Federal Government of Nigeria securities and Real estate property to boost Gross Domestic Product (GDP) of Nigeria. However, there should be a reduce investment of pension fund in Local Money Market Securities because of its negative impact on the Nigerian gross domestic product as revealed by this study.
NIGERIAN BANKING REFORMS IN STRATEGIC FINANCIAL MANAGEMENT PERSPECTIVE: LEAST SQUARE SPECIFICS (Published)
From strategic financial management standpoint, reform-driven capital restructuring process has three critical stages which are the diagnostic stage of identifying the cause of a problem, the prescriptive stage of proffering appropriate solution-bound course, and the monitoring stage of following up and seeing remedial recipes through to actualization and sustainability. Banking reforms in characteristic symbolism have not been so thorough in the Nigerian economy over the years. Adopting ordinary least square regression analytical framework, this study examines bank capital as predictor variable in relation to aggregate private sector credit and gross domestic product as respective criterion variables. Financial data (time series) are drawn from related publications of the Central Bank of Nigeria and Nigeria Deposit Insurance Corporation covering 23 years (1985-2008), a focal time frame which captures the critical banking reform vicissitudes of the Nigerian economy. The analytical results clearly establish efficacy of bank capital as significant determinant of the dynamics of aggregate private sector credit and gross domestic product in Nigeria. The strategic redirection being advocated underscores conscientious fixing of the age-long monitoring – stage missing link. This should be facilitated by creation of functional corporate governance, judicial/legal, and digital tracking substructures in a holistic banking frame
ASSESSMENT OF THE IMPLICATION OF FULL SCALE DEREGULATION OF THE DOWNSTREAM OIL SECTOR ON THE NIGERIAN ECONOMY: THE NEOLIBERALISM APPROACH (Published)
Neoliberalism has eviscerated governance in Nigeria to the point that the basic welfare of the people seems no longer the priority of the government but the fulfillment of the western neoliberal ideals such as deregulation of the entire Nigerian economy and the privatization of the government’s erstwhile owned enterprises. This trend however, has caught up with the Nigerian oil sector, leading to the clamour for full scale deregulation; a fall out of the partial deregulation embarked upon since 1st January, 2011, which arose out of the sorry state of the Nigerian petroleum industry. This article therefore, examines the implication of the downstream oil sector on the Nigerian economy. It discusses the implication of deregulation of the downstream oil sector of Nigerian on her economy by highlighting the main thesis of the proponents and that of the opponents of deregulation and fuel subsidy removal. A likert-type scale was used in designing the questionnaire for data collection administered to the three core Niger-Delta states (Delta, Rivers and Bayelsa) where 1177 respondents were randomly selected for opinion sampling. Descriptive and chi-square was used and result revealed that deregulation of the downstream oil sector is a good policy that was wrongly implemented hence the existing four refineries are left in their comatose state with promises of a total turn around mentainance. Explicitly, it is recommended that Nigeria should embark on deregulation of the sector but only after the existing refineries have been resuscitated through commercialization to ensure a fair and stable price of the product as well as its availability and stop importation of refined oil into the country.