economic growth

Fluctuating Exchange Rate and Nigeria’s Economic Growth: A Time Series Assessment of Over Three Decades’ Experience Using Interest Rate and Inflation Rates as Control Variables (Published)

This study examined the empirical investigation of the effect of fluctuating exchange rate on Nigeria’s economy from 1986 to 2021. The specific objective is to determine the combined effects of exchange rate, inflation, interest rate on gross domestic product and the individual effect of exchange rate, inflation, interest rate on the gross domestic product. The data were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and National Bureau of Statistics. The regression analysis to provide meaning to the research through which the following findings were made; this study depicts on exchange rate, inflation rate, and interest rate contribution to gross domestic product. The consequences of this examination have demonstrated that exchange rate, inflation rate, and interest rate are serious determinants of gross domestic product in the Nigerian Economic Growth. The factors (exchange rate, inflation rate and interest rate) when presented synonymously, have performed well regarding economic growth. The finding suggested that exchange rate, inflation rate and interest rate are determinants of gross domestic product. A practical assessment of these dimensions revealed that exchange rate, inflation rate and interest rate were effectively stabilized and they will achieve a greater significant benefit in terms of gross domestic product. The result shows that, the higher stability of exchange rate, inflation rate and interest rate the higher the possibility of gross domestic product of Nigeria, which will definitely have positive significant impact on economic growth of Nigeria.

Keywords: Exchange Rate, Inflation Rate, Interest Rate, Nigeria, economic growth, fluctuating exchange rate

Comparative Analysis on Effect of Tax Revenue on Economic Growth of Developing Countries (Published)

The study examines effect of tax on economic growth of developing countries categorized into three regions namely; Africa, Asia and South America for the period 1990 to 2019 with specific objective to determine effect of tax revenue on gross domestic product of the regions collectively and provided comparative analysis of the three regions. Ex post facto research design was used and data were extracted from the World Bank and Organization of Economic Community and Development (2020) while the variables were analyzed using panel regression analytical technique. The study established clear evidence that each of the regions and collective tax revenue have positive significant effect on their gross domestic product. It further found that the positive effect of tax revenue on gross domestic product of the Asian region is more significant than the African and South American countries while that of the African countries is more than that of the South American countries sampled. The study therefore concludes that tax revenue has significant effect on economic growth of developing countries and recommends that governments of developing countries should intensify efforts to sustain their gross domestic product by reinvigorating their tax system, fiscal institutional structures, and framework to generate more tax revenue and invest in critical infrastructure; ensure more efficient means of tax collection so as to reduce the cost of collection and enhance the total revenue from taxes and seek for international collaboration on taxes  to enhance growth.

Keywords: Africa, Asia, South America., Tax Revenue, developing countries, economic growth

Effect of Mining Generated Revenue on the Economic Development of the Niger Delta Region of Nigeria (Published)

The Niger Delta Region in Nigeria’s economy has been a focus of mining companies in recent years, and this has caused economic instability, thus this research looks into the relationship between earnings from mining and Niger Delta’s overall growth. The study focused on which factors influence the profits of Mining businesses in Nigeria, and especially looked at how the values of crude petroleum and gas, solid mineral, manufacturing, and agriculture are influencing profit. The research drew information from annual reports and other documents produced by oil companies. According to the findings, the value of crude petroleum and gas (VCPG) has a role in determining the personal income of mining businesses in Nigeria. Per capita income will rise during the duration of the research because of VCPG’s positive effect on the two mining businesses. There’s a correlation between the value of mineral minerals and mining businesses’ per capita income in Nigeria. It follows that VSM has increased the size of the per capita revenue of the companies substantially. The worth of the building has a considerable influence on the income of mining organizations in Nigeria. In addition, we have evidence that the Value of Manufacturing decreases the price of a company’s ordinary share throughout the study. The relationship between the value of agriculture and mining business per capita income in Nigeria is negligible. Based on the findings, the researcher recommends that the government develop consistent policy guidance, which will create an enabling environment for the private sector to invest more in mining and help the country with new jobs and greater wealth, among other things.

Citation: Chikezie-Aga C. D., Ogboani H.O., & Inyiama O.I. (2022) Effect of Mining Generated Revenue on the Economic Development of the Niger Delta Region of Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 12, pp.76-90

Keywords: Per Capita Income, Revenue from Mining, crude petroleum and gas, economic growth, the value of agriculture, the value of manufacturing

Impact of Treasury Single Account On Public Finance Management in Nigeria: Pre and Post Implementation Analysis (Published)

This study examined the impact of Treasury Single Account (TSA) on the public finance management in Nigeria. The study investigated how the implementation of TSA in Nigeria affected revenue collection, public cash management, federation account allocation and corruption control in Nigeria. The paper used secondary data collected from Central Bank of Nigeria statistical bulletin and transparency international from 2010-2014 (pre adoption period) to 2015-2019 (post-adoption period). T-test statistical technique was employed to analyze the data. The findings of the study revealed that TSA has a negative and insignificant effect on government revenue, public cash management, federal account allocation, as well as corruption control in Nigeria. The study recommends that government should strengthen the system of implementation of TSA in Nigeria and all resources of leakages to total government revenue should be investigated forensically and such loopholes filled. Moreover, government should devise other means of cash management and reduce so much reliance on TSA implementation.

Citation: Iloeje J.B., and Okwo I.M. (2022) Impact of Treasury Single Account On Public Finance Management in Nigeria: Pre and Post Implementation Analysis, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 12, pp.62-75

Keywords: Nigeria, Revenue, corruption control, economic growth, federation account allocation, public cash management, treasury single account

Illicit Financial Flows and Economic Growth: Moderating Role of Economic and Financial Crime Commission in Nigeria (Published)

Despite the efforts of Economic and Financial Crime Commission (EFCC) at curbing illicit financial flows and related problems, the magnitude of the challenges experienced overwhelms her implementation capacities. This therefore necessitate this study by analysing the effect of illicit financial flows on economic growth in Nigeria. The data for study were extracted from the report of EFCC and Central Bank of Nigeria (CBN) statistical bulletins from the period of 2010 to 2019. The study data was based on secondary sources. A purposive sample technique was adopted for the study. Based on the OLS regression model, findings of the study revealed that illicit financial flow and convicted secured by EFCC have a positive and insignificant influence on economic growth. It is therefore, recommended that EFCC should increase the effort in prosecuting and secured convictions of offenders, because will strongly reduce illicit financial flow in Nigeria.

Citation: Abdulrasheed Bawa and Joseph Ogwiji (2022)  Illicit Financial Flows and Economic Growth: Moderating Role of Economic and Financial Crime Commission in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 9, pp.24-35

Keywords: EFCC, Illicit financial flows, Nigeria, economic growth

Evaluation of The Nexus Between Financial Inclusion and Economic Growth in Nigeria (1980-2020) (Published)

The focus of financial inclusion is the easy access of financial services to the populace to tackle poverty, improve living standard and address the general welfare of the people for the purpose of enhancing economic growth. This paper examines how financial inclusion relates with economic growth in Nigeria. Data was obtained from the bulletins of the Central Bank of Nigeria covering the period 1981 to 2020. Statistical analysis involves the use of descriptive statistics, Johansen Co-Integration Test, Phillips-Perron Unit Root Test, Pairwise Granger Causality and Error Correction Model.  To estimate the hypotheses formulated in alignment with the set objectives., the Error Correction Model was used. Economic growth, the dependent variable, was proxied by Gross Domestic Product, while total bank deposit and total credit disbursement constitute what was used to proxy the independent variable financial inclusion. The Error Correction Model result shows that there was a positive and statistically significant relationship between total bank deposit and gross domestic product. Total credit disbursement has a negative and an insignificant relationship with gross domestic product. The result from the study validates the finance led growth hypothesis and established that finance is one of the factors that causes economic growth in Nigeria. The consequence of this findings is that policy makers should pay more attention on long run financial policies that can enhance effectiveness of the financial sector in promoting growth. In addition, the CBN should focus on reduction of interest rate of banks in other to increase financial intermediation.

Keywords: Financial Inclusion, Financial exclusion, Loan, economic growth, total bank deposit

Effect of Financial Sector Lending Management on Economic Growth in Nigeria (Published)

This study investigates the effect of bank lending management on economic growth in Nigeria for the period 1985-2018. The data for the study were obtained from the Central Bank of Nigeria Bulletins, World Development Indicator and National Bureau of Statistics. The variables for the study include Gross Domestic Product, Deposit Interest Rate, Lending Interest Rate, Bank Asset Quality and Deposit Multiplier. Data for the study was analyzed using Descriptive Statistics, Ordinary Least Square method (OLS) and Multiple Regression Analysis. The result of short and long run regression revealed a negative impact of bank lending management on economic growth. The F-statistic (6.67) was also used to test explanatory power of the model with the corresponding probability value of (0.0007) which is statistically significant at 5%, suggesting that the explanatory variables have joint and significant effect on the economic growth of Nigeria. It is recommended that the regulatory authority set up a regulatory framework that will enhance the capacity of deposit money banks in Nigeria to lend to real sector of the economy at a very low interest rate and attract massive deposit by investors through robust deposit interest rate.

Keywords: Financial Sector, Lending, Management, economic growth

Impact of Tax Revenue on Economic Development in Nigeria (1997-2018) (Published)

The main objective of the study is to ascertain the influence of tax revenue on economic development of Nigeria. The specific objectives are; to determine the influence of petroleum profit tax, company income tax and value added tax on economic development proxy by human development index (HDI). Annual time series data, from CBN and FIRS from 1997 to 2018 was used. The study used regression analysis. The result showed that petroleum profit tax and company income tax have significant effect on economic development while value added tax does not significantly influence economic development. The implication of the finding is that the higher the amount of tax revenue generated, the higher the level of economic development experienced by the economy. This implies that taxes that have positive effect on economic development are direct taxes, thus direct taxes exert more significant influence on economic development of Nigeria than indirect taxes. This anomaly was attributed to dysfunctional ties in tax system, loopholes in tax law and inefficient tax administration. The lower the amount of revenue generated from tax the lower the quality of development to be witnessed. Government will generate higher revenue if they strengthen the legal and regulatory framework in order to control tax evasion and tax avoidance by taxpayers, improve on the system of tax administration, .The paper therefore recommended that tax policy makers such as federal inland revenue services and other tax regulatory bodies should strengthen their regulation on tax compliance mostly on tax that are direct based to curb tax evasion and tax avoidance by tax payers, adopt strategies to improve system of tax administration, by training and re- training of tax administrators through seminars and conferences to be abreast of modern trend in tax administration in order to generate more income for development.

Keywords: Gross Domestic Product, Tax Revenue, Taxation, direct and indirect tax, economic growth

Cashless Policy and the Performance of Deposit Money Banks in Nigeria (Published)

The main objective of the study is to investigate the effect of cashless policy on the performance of deposit money banks in Nigeria (2009-2018). The specific objectives are to: Investigate the effect of automated teller machine, examine the effect of point of sale, assess the effect of mobile banking, and to examine the effect of internet banking respectively on the performance of deposit money banks in Nigeria. We employed Econometric techniques involving Descriptive Statistics, Augmented Dicker Fuller and Philip Perron Tests for Unit Roots and the Autoregressive Distributed Lags (ARDL) for cointegration and coefficient analysis. The result of the study indicates that Automated Teller Machine (ATM) and Internet Banking each has a positive and significant effect on return on equity (ROE). Point of Sale (POS) has a positive but insignificant effect on return on equity, while Mobile Banking (MB has a negative and statistically significant effect on ROE, The study thus concludes that cashless policy has positively affected the performance of money deposit banks in Nigeria. The study recommends that government should provide uninterrupted power supply and adequate communication link while shortfalls should be covered by banks through back-up arrangement to power standby generator in case of power outage.

Keywords: Automated Teller Machine, Internet Banking, Nigeria, economic growth, mobile banking, point of sale

Relevance of Tax Revenue and Economic Growth in Nigeria (2008-2018) (Published)

This study aims at investigating the relevance of tax revenue in driving economic growth in emerging market economy context. . Using data extracted from central bank of Nigeria statistical bulletin for various years and auto-regression estimation model, our study documents the existence of significant and positive relationship between petroleum profit taxes (PPT), Company Income Tax (CIT) on economic growth in Nigeria. Our findings further reveal that Value Added Tax (VAT) and Custom –excise duty (CED) exert negative influence on economic growth. However, the study provide evidence that VAT and CED  are insignificant in determining the economic growth in emerging market economy context with special interest in Nigeria This study provide further evidence that the higher the amount of tax revenue generated, the higher the level of economic growth   in the economy. There is a recommendation therefore that strong institutional reforms are panacea to prevent leakages of revenue from VAT and CED. 

Keywords: Company Income Tax, Nigeria economy, Petroleum Profit Tax, Value Added Tax, economic growth