Institutional Impediments to International Remittance: Transmission-Cost Issues in Nigeria (Published)
This study investigates the institutional impediments of remittances with reference to the cost of transmission in Nigeria. The study is motivated by the increasing inflows of remittances through informal channels that would have been directed into the financial system to improve savings and enhance financial deepening if they were accounted for. The study therefore investigates whether the use of informal channels is caused by the increasing costs of collecting remittances that is partly induced by financial institutions. The study uses a bank exit survey data and a household survey data collected by the Center for Demographic and Allied Research (CDAR). T-test analysis and logit regressions were employed to achieve the objectives of the research. The findings show that there is no significant difference in the frequency of receipt for the formal and informal channels, transaction cost negatively and significantly determinants the use of formal channels flows, and finally there exist a significant difference between the transaction costs of using formal and informal channels of remittances. Financial institutions should therefore checkmate the charge of remittance receipt to encourage the use of formal channels and increase the frequency of flows
Keywords: Impediment, Institutional, Nigeria, Remittances, Transmission-Cost
Hindrances to Microfinancing: A Nigerian Case Study (Published)
Traditionally, commercial banks lend money to large, credit-worthy corporations and avoid doing business with small and medium enterprises due to the associated risks and costs. These small and medium enterprises depend on microfinance banks to obtain loans for their businesses, but for some reasons, some of these businesses do not approach microfinance banks for loans. This research investigates reasons why some businesses do not apply for loans from microfinance banks even though they need funds for the efficient running of their business. Results show that lack of collateral, ignorance of businesses about the existence of microfinance banks, and high interest rates are the main reasons that are hindering businesses in applying for loans from microfinance banks. Microfinance banks need to reach out to economically active poor businesses that cannot obtain loans from commercial banks or other financial institution.
Keywords: Business, Enterprise, Entrepreneur, Loans, Microfinance, Nigeria
Accelerating Inclusive Agricultural Growth in Nigeria: An Examination of Strategic Issues, Challenges and Policy Options (Published)
Agriculture has been identified as a critical sector with huge potential for promoting inclusive growth by stimulating economic growth, reducing poverty, and creating employment for a large number of people in developing countries. Against this backdrop, the paper assessed the sector’s potential in accelerating sustainable broad-based growth and examined key strategies for realizing inclusive agricultural growth in Nigeria. Using data, covering 1981-2015, the results indicate agriculture’s significant contribution to economic growth which is a necessary (but not sufficient) condition for achieving inclusive growth. Results of employment elasticity computed for the three major sectors suggested that agriculture led others (1.88) followed by services sector (1.18) and industry (0.33) in contributing to employment. Based on the analysis, the paper recommended policies such as increased public investment, access to farm inputs, youth-friendly and price stabilization programmes in order to accelerate inclusive growth in the agriculture sector.
Keywords: Agriculture, Inclusive Growth, Nigeria
Tax Buoyancy and Elasticity in Nigeria: The Case of Aggregate Tax (Published)
This study was motivated by the growing demand for government funds to meet up with their expenditures as well as diversification for different streams of income. Empirical evidence has shown that the buoyancy and elasticity of tax are two clear ways of measuring how tax revenue responds to changes in income. This study adopted secondary data sets, which were sourced from CBN statistical Bulletin, National Bureau of statistics (NBS) and Federal Inland Revenue Service (FIRS) of Nigeria. A standard multiple regression estimation procedure in the form of the vector error correction model (VECM) model was adopted. The result from the study showed that tax revenue is significantly buoyant and elastic in Nigeria. In view of the result the study recommended among others that, the government introduces policies that will help her take advantage of the potentials inherent in the country and increase its tax revenue thereby having another source of financing its budget other than the current crude oil proceeds.
Keywords: GDP, Nigeria, Tax Buoyancy, Tax Elasticity, Tax Revenue
Inflation and Growth Nexus in Nigeria: An Investigation into the Simultaneous Relationship (Published)
The relationship between inflation and economic growth remains an unresolved debate in empirical research. Its relevance in understanding growth behavior however remains pertinent. It is in this light that this study seeks to understand inflation and growth nexus in Nigeria. The study employs a two stage least square estimation to examine a simultaneous equation model with data from the Central Bank of Nigeria Statistical Bulletin and World Bank Indicators. The study shows that inflation is beneficial to growth though not significantly while growth is significantly beneficial to inflation; given the positive relationship between inflation and growth and the negative relationship between growth and inflation. The results further show that Money supply and trade openness are significant determinants of real GDP for all three estimation techniques under consideration. While, real GDP, money supply and interest rate are significant determinants of inflation. The study therefore recommends that inflation be controlled to have its optimal effect on output while production be diversified to optimize its effect on inflation.
Keywords: Inflation, Nigeria, Simultaneous Relationship, economic growth
Ecotourism Potential of Ebonyi State, Nigeria: Assessing Ecological Sites, Cultural Resources and Attitudes of Host-Communities (Published)
This study was undertaken to assess ecotourism potential of Ebonyi State, South East Nigeria. Twenty-four (24) ecological sites across the 3 ecological zones of the State and the local communities were purposively selected for the study. Twenty (20) community opinion leaders were purposively selected from each local community making 300 respondents. Focus Group Discussions were also held among various groups of adult males, females and youths. Primary data were collected by the use of interview schedule while secondary data were sourced from publications of the Federal Ministry of Culture and Tourism and Ebonyi State Economic Empowerment and Development Strategy. Data were analyzed by the use of descriptive and inferential statistics including mean scores from 4-point Likert-type scales and probit analysis. Result shows that ecological attractions in the State range from salt and fresh water lakes to beaches, waterfalls, hills, rock formations, caves and forests. There are also 20 identifiable fun-filled festivals celebrated all year round in the State. Furthermore, the socio-cultural environments of host communities were found to be supportive of ecotourism development and various host communities were willing to cooperate to develop ecotourism cluster. Governments at state and local levels are advised to ensure availability and functionality of socio-economic infrastructure in host communities. NGOs and Community Development Associations (CDAs) should strengthen advocacy to dismantle some cultural barriers that tend to exclude women from participation in some aspects of ecotourism development.
Keywords: Cultural festivals, Ebonyi State, Ecological sites, Ecotourism, Host-communities, Nigeria
INVESTIGATION INTO THE INFLUENCES OF GOVERNANCE FAILURE, CORRUPTION, VIOLENCE AND OTHER IMPORTANT ISSUES, IN THE CHALLENGES OF THE SOCIO-ECONOMIC ENVIRONMENT OF NIGERIA (Published)
As a follow-up to an earlier paper on the socio-economic environment of Nigeria, in which a large number of challenges are highlighted for this socio-economic environment, this investigation is carried out, to find out the extent to which the issues of governance failure, corruption, violence and a number of other issues, are implicated in these challenges. The investigation reveals that the trio of governance failure, corruption and violence, are greatly implicated in the challenges. A large number of other important issues, such as deficit in values, deficit in education and deficit in appropriate attitudes, are also implicated to a lesser extent, in the challenges. The paper is concluded with a recommendation that all these issues need to be urgently attended to, if Nigeria is to attain sustainable development, within the first quarter of this century.
Keywords: Challenges, Corruption, Governance Failure, Nigeria, Socio-Economic Environment, Violence
TAX BUOYANCY AND ELASTICITY IN NIGERIA: THE CASE OF AGGREGATE TAX (Review Completed - Accepted)
This study was motivated by the growing demand for government funds to meet up with their expenditures. Empirical evidence has shown that the buoyancy and elasticity of tax are two clear ways of measuring how tax revenue responds to changes in income. This study adopted secondary data sets, which were sourced from CBN statistical Bulletin, National Bureau of statistics (NBS) and Federal Inland Revenue Service (FIRS) of Nigeria. A standard multiple regression estimation procedure in the form of the vector error correction model (VECM) model was adopted. The result from the study showed that tax revenue is significantly buoyant and elastic. In view of the result the study recommended among others that, the government introduces policies that will help her take advantage of the potentials inherent in the country and increase its tax revenue thereby having another source of financing its budget away from the current crude oil.
Keywords: GDP, Nigeria, Tax Buoyancy, Tax Elasticity, Tax Revenue
Energy Efficient Housing as a Mitigating Option for Climate Change in Nigeria (Published)
This paper discusses the capacity of energy efficiency in housing to serve as a panacea to climate change. Drawing from secondary sources, the study revealed that energy is required in houses for optimum performance. However, in Nigeria, the energy required is mostly generated from fossil fuel which emits greenhouse gasses into the atmosphere. These greenhouse gasses result in the depletion of ozone layer which causes global warming and by extension, climate change. It recommends among other things, proper landscaping, north and south orientation of houses, natural vegetation, natural lighting, the use of energy efficient electrical and mechanical appliances and the use of green power. The paper concluded that energy efficient housing environment that employs these parameters will experience reduced global warming and climate change associated challenges.
Keywords: Climate Change, Energy, Energy Efficiency, Housing, Mitigating Option, Nigeria
Informality and Domestic Savings in Nigeria: Lessons from Time Series Analysis (Published)
Following the dearth of empirical evidence on the response of domestic savings to informality in Nigeria, this study examined the impact of informality on domestic savings in Nigeria for the period 1970 to 2011 as a means of providing evidence based policies that will enhance the growth and development of the Nigerian economy. The study employed time series analysis using the OLS estimation procedure. The estimation results of the long run model indicate that informality hinders the growth of domestic savings, while the degree of financial depth impacts significantly and positively on domestic savings in Nigeria. It was also found that the growth rate of real per capita income impacts positively on domestic savings, even though it is not statistically significant in the long run. Based on these findings, we recommended that policy makers and the government should seek to improve the linkage between the formal and informal sectors in Nigeria as this would have a strong positive impact on domestic savings. Deposit money banks and the monetary authority should evolve policies aimed at reaching the unbanked informal sector agents, especially the rural households and the urban informal production units in order to deepen the financial sector and assist in mobilizing the much needed savings that will engender investment and growth in Nigeria. Also, development policy in Nigeria should focus on increasing the productive base of the economy in order to promote real income per capita growth and reduce unemployment.
Keywords: CBN, Domestic Savings, Informality, Nigeria, Time Series