Impact of Taxation on the Growth and Development of the Nigerian Economy (Published)
The continuous collapse of Nigerian economy due to incessant lack of finance in government covers calls for urgent attention of researchers, this study hereby examines the impact of taxation on the growth and development of the Nigerian economy. The specific objectives of this paper are to examine the extent to which petroleum profit tax affects gross domestic product in the Nigerian economy; ascertain the effect of capital gain tax on the gross domestic product in the Nigerian economy; and to determine the effect of company income tax on the gross domestic product in the Nigerian economy. To achieve these objectives, ex-post facto design was adopted, Ordinary least square (OLS) regression method was used for the study as the statistical method for analysing the data gathered. Result from this study reveals that CGT and PPT are insignificant in revenue generation towards the economic growth of Nigeria. CIT on the other hand is significantly effective on the economic growth of Nigeria. Based on the findings of this study, the researcher recommended that to boost economic growth in Nigeria, government should ensure the tax revenue generated from PPT and CGT be improved upon so that the revenue can be used in providing infrastructure for the citizens; government should use tax policy more as a macroeconomic policy not just as a tool for revenue generation as this will result to long run sustain economic growth and tax revenue.
Keywords: CGT, CIT, Nigerian Economy, PPT, Taxation, growth and development
Interactions between Deposit Money Banks Business and the Nigerian Economy (Published)
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
Keywords: Deposit, Money, Nigerian Economy, banks business
The Impact of Fiscal Policy on the Economy of Nigeria (1994 And 2014) (Published)
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.
Keywords: Capital Expenditure, Fiscal Policy, Nigerian Economy, Real GDP, Recurrent Expenditure
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.
Keywords: Contribution, Evaluation, New Contributory Pension Scheme, Nigerian Economy, Portfolios
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
Keywords: Banking reforms, Nigerian Economy, Strategic Analysis