National Budget Management and Economic Development in Nigeria (Published)
Citation: Ojomolade, Dele Jacob , Ugwulali, Ifeanyi Joseph &Adejuwon, Joshua Adewale (2022) National Budget Management and Economic Development in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 3, pp.18-30
Abstract: This study examines the impact of national budget management on economic development in Nigeria emphasising the controversial issues of whether its impact is visibly seen or not on Nigeria’s development. Secondary data were sourced from Central Bank of Nigeria statistical bulletin, 2020 and the data were analysed using co-integration and descriptive statistics. The results revealed long run relationship among the variables with ARDL bound test of F-statistic of 9.4 which is greater than the upper and lower bound while the R-squared is 85.2 and Adjusted R-squared is 70.4 which show those explanatory variables are jointly significant and estimated model is of good fit .The Durbin Watson is 1.7 and the Prob.(F-statistics) is less than 5% denoting absence of serial correlation. The study found out that Education and health have negative relationship with economic development in the Nigerian budgeting system, implying that increasing annual budget allocation results in decreasing proportion of education and health in the total national budget estimates. It was further found out that budget estimate and public debt payment services have positive relationship, implying that the more the budget estimates, the more the proportion of public debt services. The study concluded that the Nigerian government does not have enough budgetary allocation to education and health while substantial amount is being allocated to debt servicing. It is therefore recommended that Nigerian government should endeavor to develop human capital by increasing budget allocation to education and health to create a wealthy nation and sustainable development.
Keywords: Development, Economic, Government, Nigeria, national budget
Selected Components of Tax Revenue and Educational Development in Nigeria (Published)
This study investigated the relationship between some selected components of tax revenue and educational development in Nigeria for the period 2010 to 2018. The study adopted education tax and value added tax as the independent variables, while educational development taken as government spending on education (excluding recurrent expenditure) was used as the dependent variable. Secondary data was collected from the CBN, FIRS, and MOE. The data analysis technique adopted for the study was the multiple regression analysis using the Ordinary Least Square (OLS) method. The results revealed that there was positive relationship between value added tax, education tax and education development. However, the relationship was not statistically significant with the implication that the effect of the selected tax revenue components on educational development was weak. Based on the findings of this study, it was concluded that the contribution of education tax to the development of the education sector is not having the desired effect on the sector. Furthermore, value added tax revenue as expected is not an important contributor to education development. It is suggested that more revenue from various tax funds be channeled to the education sector as human capital development is key to national development. The study thus recommended that the proportion of value added tax revenue channeled towards education development should be increased as deficits in education development are very high. It is also recommended that the education tax be increased from the present 2% to 5% in order to contribute more significantly to education development.
Keywords: Development, Education, Revenue, Tax, Value added
COMMUNAL NON-FORMAL FINANCIAL MARKET SYSTEM DEVELOPMENT: A MODEL FOR NNOBOA MARKET SYSTEM (Published)
Communal market system of mobilizing resources or funding has been with the indigenous people in the past. In Africa, particularly in Ghana it has been with the traditional people up to today. As we find it had to move the economy as a whole up, the indigenous people through this means are making it up in life. The problem has been with the impulsion of the western capitalism, which thrives on greed and individualism. This article gives reasons why Ghana should introduce a second financial market with traditional flavor. It recommends the modification of the old land marks, nnoboa, with modern technology which thrived through trust, communality and reciprocity that worked before the invasion of the land by the west to force us into capitalism
Keywords: Capitalism, Development, Ghana, Market, Nnoboa, synergy
MICRO AND SMALL SCALE ENTERPRISES DEVELOPMENT IN GHANA (Published)
Micro and small scale enterprises have been accepted worldwide as instrument of economic growth and development. No wonder that government, particularly in the developing countries has made tremendous efforts and establish policies to enhance the capacity of micro and small scale enterprises (MSEs). However, despite government institutional and policies support to enhancing the capacity of small and medium scale enterprises, small and medium scale enterprises has fallen short of expectations. This, then, generated serious concern and skepticism on whether SMEs can bring about economic growth and national developments in Ghana. SMEs are faced with significant challenges that compromise their ability to function and to contribute optimally to the economy. Most business enterprises in Ghana by classification are grouped under micro and small scale enterprises, hence, the scope of study. The phenomenal growth of small and medium enterprise in Ghana is mainly due to the people’s quest to be self-employed and not because it is easy to establish or manage. Financial constraints and lack of management skill hamper the efficient performance of micro and small scale enterprises in Ghana. In view of this, we recommend that government and other non-governmental organization should regularly organize seminars for potential and actual small and medium enterprise operators on how to plan, organize, direct and control their businesses, and that micro, small and medium enterprises operators’ should device effective marketing strategies and good management customers relations at all times.
Keywords: Development, Ghana, MSE, Problems, Prospect
A Critical Analysis of Financial Performance of Agricultural Development Bank (Adb, Ghana) (Published)
Until recently, many of the banks in developing countries were state owned or locally established with varied mandates to focus on different sectors of the economy. Some of these state banks are bedevilled with peculiar set of challenges making some of them inefficient and unprofitable and in some instances insolvent. Financial performance analysis is aimed at keeping the banks in checks by highlighting low and high performance areas with the understanding that it will bring about improvement in performance. The PELARI (Profitability, Efficiency, Liquidity, Asset Quality, Risk Measures and Investor analyses) model was developed for analysis by the researchers which is similar to the CAMELS’ rating. Financial ratio analysis is employed in the analysis. Troubled signals models such as the Altman z-score for non-manufacturing companies and risk index were also used to measure risk. The Altman z-score generated for 2011 and 2012 showed a figure of less than 1.1 which put the bank in the distress zone category. It was evident from the analysis that ADB’s focus on agricultural financing is diminishing since a sector analysis of loans and advances indicates that the agriculture sector lost its first position to the services sector which recorded 38% compared with agriculture 29% in 2012. The bank’s liquidity showed a downward trend and slipped further down in 2010 confirming the Ghana Banking Survey (2011) assessment that the bank is illiquid.
Keywords: Analysis, Bank, Development, Financial Performance, Liquidity