The importance of the industrial sector output in enhancing sustainable economic growth has long been documented given that the sector is generally perceived as the engine of growth in an economy. This notwithstanding, Nigeria seems not to have put in place appropriate policies and programs that would engender the desired industrial output growth. The main aim of the paper, therefore, is to examine empirically the relationships between industrial sector output and the sustainable economic growth of Nigeria for the period 1981 to 2018. In doing this, descriptive statistics, unit root and co-integration tests as well as long run and short run analyses were conducted using the error correction model (ECM) of the econometrics. The empirical results from these estimation procedures were quite revealing. For instance, there existed a positive relationship between industrial sector output and economic growth though this was weak considering the magnitude of effects. Capital expenditure and lending rate exerted negative relationships on industrial output and these tended to have accounted for the current low level of industrial activities in the country. The stability test carried out in the paper showed a significant structural stability, which affirmed that these results have called for appropriate policy options that would bring about the desired industrial sector output growth patterns. Hence, strengthening the industrial sector activities in Nigeria as well as streamlining capital expenditure and lending rate to enhance the sector’s output has become imperative. This is typically true as it is the only path that would lead to the enhancement of the industrial sector output and, invariably, the sustainable economic development that Nigeria desperately desires.
This paper carried out an empirical investigation of the impact of e-banking payment instruments on the performance of Deposit Money Banks (DMBs)in Nigeria for the period 2009 to 2017. The major findings of the paper showed that ATM exerted a negative effect on ROA but was significant at the 5% level; exerted a positive effect on ROE at the 5% level, and negative effect on NPM at the 5% level. POS exerted a negative effect on ROE but was significant at the 5% level; it exerted positive and significant impact on NPM; WB exerted positive and significant effect on ROA and NPM at the 5% level. These findings were robust and impressive as the value of the ECM(-1), -0.3988, -0.4857, -0.5863 and -22682 appeared with the right signs. The coefficients of determination, R 2 , in the three columns showed that all the independent variables accounted for over 50% fluctuations in the dependent variables. The paper concluded that e-banking payment instruments have great potentials in enhancing the performance of the DMBs. It was therefore recommended that the DMBs make it a matter of policy to continually upgrade the efficiency of these all-important instruments to meet the expectations and satisfaction of their clients and hence shareholders' wealth.
Nigeria’s deposit money banks (DMBs) are financial institutions licensed by the Central Bank of Nigeria to mobilize demand and saving deposits from the surplus economic units for on-lending to the deficit economic units for investment and consumption purposes. In carrying out this intermediation function, DMBs are exposed to several risks including credit risk, market risk, interest rate risk, exchange rate risk, and others. Of these risks, the credit risk seems the most harmful to DMBs’ financial performance as its occurrence can easily and quickly send a bank into distress or outright liquidation. For over a decade now, DMBs in the country have been experiencing continuously increasing nonperforming loans portfolios. This type of scenario had led to poor financial performance among the Banks. It is for this reason that the present study seeks to verify empirically the impact of certain financial and macroeconomic variables on DMBs’ financial performance for the period 2001 to 2021, that is, 21 years. In doing this, we dissected financial performance into return on assets and return on equity. Hence, two separate models were specified in the study with return on asset and return on equity serving as the dependent variables in each of the models, while non-performing loans, loan-loss provisions, lending rate, bank size, monetary policy rate and inflation rate represented the independent variables. The longitudinal research design was adopted since the study’s data covered a specific timeframe. The fully modified ordinary least squares and the panel data regression techniques were used to analyze the data. The findings of the study revealed, among others, that non-performing loans exerted a negative impact on the financial performance of the DMBs in terms of return on assets and return on equity. It was, therefore, recommended that provisions for loan losses, even though appeared with positive impact on return assets and return on equity, should to be scaled up as the variable is frequently used as a strategic and effective means for mitigating loans losses and, invariably, the financial performance of the DMBs.
The impact of deficit financing on economic growth has long been recognized in the extant literature given that this type of financing is germane to accelerated and sustainable economic growth. Yet, Nigeria did not seem to have utilized deficit financing proceeds to invest in those related infrastructural facilities that would generate income and augment domestic savings, thereby helping to make and sell quality products and services that are internationally competitive, and ultimately stimulate economic growth. Rather, the seemingly weak governance in the country engaged in massive misappropriation of public funds and outright corruption thereby exacerbating unemployment, insecurity, and widespread poverty both in the urban and rural areas of the country. The main aim of the study therefore was to investigate empirically the impact of deficit financing on economic growth in Nigeria for the period 1981 to 2019. Secondary data for the study were sourced from the Central Bank of Nigeria and the World Bank Global Development Index. The fully modified ordinary least squares methodology of the econometrics was employed to analyze the data of the study. The major findings of the study showed that the federal government domestic debt variable, the federal government budget deficit variable, the foreign exchange reserves variable, and the broad money supply variable exerted positive impacts on economic growth, while the external debt variable exerted a negative and insignificant impact on economic growth in Nigeria. The study therefore concluded that public borrowing in Nigeria can only induce rapid and sustainable economic growth only and if only borrowed funds are massively invested in related infrastructural facilities that would generate revenue which would augment domestic financial resources. Accordingly, the study recommended that the federal government of Nigeria should carefully study the state of its economy to enable it invest in those infrastructural facilities that are thought germane to the achievement of sustainable economic growth.
This paper examined empirically the impact of government expenditure on the education sub-sector development in Nigeria for the period 1980 to 2017. Government expenditure was decomposed into capital and recurrent expenditures, while education sub-sector development was viewed from the perspectives of the States and Local Governments dependence (FDR), fiscal concentration (FCR), and per capita income (PCI). The data of the study were obtained from both the National Bureau of Statistics and the Central Bank of Nigeria Statistical Bulletins. The fully modified ordinary least squares (FMOLS) approach of the econometrics was used to estimate the findings/results of the paper. Some of the major findings of the paper indicated that all the variables became stationary after first differencing and that the series for all the equations were cointegrated thereby suggesting the existence of long run relationships among the variables. The short run dynamics results were robust and impressive given that each of the coefficients of determination (R-squared) and their adjusted counterparts were quite high. Furthermore, the results indicated that while capital expenditure exerted negative impact on the education sub-sector development, recurrent expenditure displayed a positive impact on the sub-sector. The paper therefore recommends that government, as a matter of frantic efforts and deliberate policies, scales up its capital expenditure on education sub-sector development as well as intensifying capacity building that would engender qualitatively improved education service delivery. This would only be possible if urgent institutional frameworks, procedures and governance styles that accord with international standards are urgently introduced and implemented.
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