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
A Panel Data Analysis of the Impact of Informality on the Liquidity of Deposit Money Banks in Nigeria (Published)
One of the major components of the overall Nigerian economy is the informal sector. Transactions in this sector are conducted mainly in cash to avoid official detection, and this is capable of starving the banking system of the deposits needed to improve its liquidity. This is the first study that empirically examined the impact of informality on the liquidity of the banking system in Nigeria. The results indicate that informality impacts negatively on the liquidity of deposit money banks in Nigeria. Specifically, we found that a unit increase in the size of the informal sector results in 7.44% deterioration in the liquidity of deposit money banks. Based on these findings, the study recommends that deposit money banks in Nigeria should pursue policies and products that will assist them to capture the huge economic activities taking place in the informal sector, while the government (through the Central Bank of Nigeria, CBN) should also reconsider its policies that are capable of driving economic units underground. The study concludes that deposit money banks in Nigeria must work together with the CBN to achieve an all inclusive banking system, thereby reducing the negative impact of informality on the liquidity of deposit money banks in Nigeria.
Keywords: Bank Liquidity, CBN, Informality, Nigeria, Panel Analysis