Derivation Funds Management and Economic Development of Nigeria: Evidence From Niger Delta States of Nigeria

Abstract

Economic Development of any nation depends on the efficient use of available resources and the integrity of people entrusted with the management of those resources. This paper investigated the impact of the Management of derivation funds accruable to Niger Delta States and how it affects Economic Development of Nigeria. The study employed a descriptive research design and made use of Ordinary Least Squares (OLS) technique to test the hypothesis. The time series data used covered a period from 1981 to 2016 and were collected from the Central Bank of Nigeria (CBN) Statistical Bulletins and World Bank reports. The data gathered were on Real Gross Domestic Product (RGDP) which is the dependent variable and Niger Delta States Derivation Funds (NDSDF) as the explanatory variable. The regression result revealed a positive relationship between the RGDP and NDSDF. The study also found evidence that NDSDF has significant positive impact on the RGDP. These findings led to a conclusion that the lack of infrastructures and other physical evidences of Economic Development in the Niger Delta States have been as a result of mismanagement of funds and embezzlement. If the derivation allowance is well utilized the economic well-being of the people in the area will improve and the clamour for resource control will cease.

Intellectual Capital and Financial Performance of Quoted Manufacturing Firms

“…The conceptual model shown above describes the effect of the intellectual capital proxy, i.e., VAIC on the dependent variables (ATR, GPM, and ROA). The diagram displays a few firm-specific variables that have been found in the literature to have an impact on the link between IC and financial performance (Adebawojo, Enyi, & Adebawo, 2015;Agbiogwu et al, 2016;Babajee, Seetanah, & Nunkoo, 2020;Buallay et al, 2020;Okpako, Atube, & Olufawoye, 2014;Omodero, Alpheaus, & Ihendinihu, 2016). The study employs firm size, revenue, gross profit, and PBIT to control for firmspecific factors affecting financial performance.…”

“…The authors recommended that companies place greater emphasis on human capital, maintaining it and treating it as a pure asset will motivate the workforce. Omodero et al (2016) in their study titled "Human resource costs and financial performance: Evidence from selected listed firms in Nigeria". The study relied on secondary data from published financial statements of 10 firms quoted on the Nigerian Stock Exchange.…”

Decentralization of South Eastern Nigeria’s Local Governments and Achievement of Mandates Enshrined in Nigeria’s 1999 Constitution

“…Ohiomu and Oluyemi (2018) classified it based on need, national interest, and independent revenues. Omodero et al (2019) included: equality of states, equality of access to development, continuity of government action, absorptive capacity, land areas, the principle of school enrolment, the pupil of school age but not in school, a national minimum standard. A large chunk in this classification could be found as the mandates of LGs, although not without issues.…”

Effect of Apportioned Federal Revenue on Economic Growth: The Nigerian Experience

“…For instance, Usman (2011) covered a period from 1960-2010, Dagwom (2013) spanned from 1993-2012, Ojide & Ogbodo covered from 1970-2009 while Ohiomu & Oluyemi (2017) extended it from 1984-2015 and did not focus on revenue utilization for economic growth enhancement. Omodero et al (2018) covered the same period but focused on derivation fund enjoyed by the Niger Delta States of Nigeria. This study has improved the growth of empirical literatures in this area of research from 1981 to 2016 which will be useful for researchers and policy makers in the future.…”

“…The non-oil revenue includes: personal income tax; companies income tax; capital gains tax; withholding tax and all for forms of indirect taxes (ATSWA, 2009). From the oil revenue, derivation allowance is given to the Niger Delta States as a way of compensating them for the environmental degradation and pollution suffered as a result of oil exploration in their area (Omodero, Ekwe & Ihendinihu, 2018). This derivation allowance also applies to all States with solid minerals that generate income to the Federal Government (Adangor, 2015).…”