JOURNAL OF ECONOMICS AND FINANCIAL ISSUES
IMPACT OF FOREIGN EXCHANGE RESERVES ON INFLATION IN SELECTED SUB-SAHARAN AFRICAN COUNTRIES Authors
The continuous rise on inflation rate particularly in Sub-Saharan African countries in recent time has been questionable, which has affected all sectors of the economies of Sub-Saharan African countries. It has become pertinent given the rise on inflation to examine how external reserves has affected inflation and also question the accumulation of reserves that would have been channelled into industrialization to reduce the high rate of unemployment and promote investment in sub-Saharan African countries. This study examined foreign exchange reserves and its effects on inflation in selected Sub-Saharan African countries. Data spanning between 1990 and 2023 from Twenty (20) Sub-Saharan African countries were used and Fixed Effects Panel technique of analysis was adopted for the study. The findings of the study show that while both external reserves accumulation (RESV) and world oil price (WOP) have negative relationships with inflation, the relationship is statistically significant only in the case of RESV. On the other hand, although both money supply (M1) and exchange rate (EXR) indicate positive relationships with inflation, only M1 has a statistically significant relationship. From the findings of this study, therefore, it is concluded that foreign exchange reserve accumulation reduces the level of inflation significantly in Sub-Saharan African countries. The study recommends among others that although foreign reserves may not be inflationary, it is imperative that reserves be channelled into productive investments and infrastructural development to promote resilience and sustainability in African countries rather than accumulating foreign exchange reserves.
EXPLORING THE NEXUS BETWEEN EXCHANGE RATE VOLATILITY AND MANUFACTURING SECTOR OUTPUT IN NIGERIA: A QUANTITATIVE ANALYSIS
This study examined the impact of exchange rate volatility on the manufacturing sector output between 1980 and 2021. The manufacturing sector is one of the sectors whose success or failure depends on the stability of exchange rate. This is because its depreciation or appreciation has negative or positive repercussions on all the sectors of the economy, especially the manufacturing sector. Using the Autoregressive Distributed Lag Model, the study examined the short run and long run relationship between exchange rate volatility and manufacturing sector output in Nigeria. The estimated results revealed that exchange rate volatility had negative and statistically significant impact on manufacturing sector output in Nigeria. The study concluded that exchange rate volatility has negative impact on manufacturing sector output in Nigeria due to the dependence of the manufacturing sector on imported raw materials and machines. The study, therefore, recommended amongst others that manufacturers should explore diversifying their sources of inputs to include a mixture of local content which can help reduce vulnerability to currency fluctuations and enhance stability in the production process. This could help mitigate the negative effects and enhance the resilience of the manufacturing sector.
AN EVALUATION OF THE IMPACT OF EXCHANGE RATE MANAGEMENT ON MANUFACTURING SECTOR PERFORMANCE IN NIGERIA
This study investigates the impact of exchange rate management on the performance of the manufacturing sector in Nigeria from 1970 to 2023, employing the Autoregressive Distributed Lag (ARDL) model. The primary objective is to measure the relationships between manufacturing value-added (MVA), exchange rate (EXR), inflation rate (INF), interest rate (INT), balance of payment (BOP), and crude oil revenue (COR). The results reveal that the exchange rate has a significant negative impact on manufacturing sector performance in both the short run and long run, with coefficients of -0.0894 (p = 0.0436) and -0.0284 (p = 0.0168) respectively. Inflation rate also shows a significant negative short run impact with a coefficient of -0.0989 (p = 0.0421). Conversely, crude oil revenue positively influences the manufacturing sector, with short run and long run coefficients of 0.0413 (p = 0.0030) and 1.885 (p = 0.000) respectively. The error correction term (ECT) is significant at 5% level of significance (p = 0.0000), indicating a high speed of adjustment (66%) towards long run equilibrium. These findings underscore the critical role of exchange rate stability, inflation control, and effective utilization of crude oil revenue in enhancing the performance of Nigeria’s manufacturing sector. The study recommends implementing policies to stabilize the exchange rate, such as maintaining adequate foreign exchange reserves and adopting a more flexible exchange rate regime to reduce exchange rate volatility in order to enhance the performance of Nigeria’s manufacturing sector.
EXCHANGE RATE POLICY EFFECTS ON PERFORMANCE OF THE MANUFACTURING SECTOR IN NIGERIA: 1975–2023
This study examined the impact of exchange rate policies on Nigeria's manufacturing sector from 1975 to 2023. The study employed the ARDL estimation technique and discovered a negative association between exchange rate policy and Nigeria's manufacturing sector's performance. The short run beneficial impact was caused by the weakening of the naira as a result of recurring instability. The long-term beneficial impact was caused by the immediate and direct effects of currency rate movements as a result of inflows of crude oil revenue which constitute Nigeria's principal source of exports. This shows that the exchange rate plays a significant and negative role in the sector's growth. Exchange rate policies determine the types and intervention for access to foreign exchange which ultimately have impacts on Nigeria's manufacturing sector. Import and operational costs rise when the naira falls in value. Inflation's long-term impact is negligible, driven by supply chain dynamics, input costs, and consumer demand. Interest rates and the balance of payments have a long-term favourable but small effect. The manufacturing sector's performance is significantly influenced by the stability of exchange rate and its management policies. Following the findings, the paper recommends that the government should ensure that any exchange rate policy adopted benefits the industrial sector. Furthermore, the government should turn its focus and policy directions towards the development of the industrial sector, because this would draw the attention of international investors, increasing the influx of foreign currency into the economy and strengthening the local currency.
EVALUATING THE IMPACT OF SELECTED ECONOMIC AND INSTITUTIONAL FACTORS ON POVERTY LEVELS IN NIGERIA
Poverty denies individuals access to crucial resources like food, shelter, healthcare, and education, which in turn lowers overall productivity and economic potential. This research investigates the influence of economic and institutional factors on poverty rates in Nigeria through quantitative methods, utilizing time series data spanning from 1996 to 2024. The study employed autoregressive distributed lagged (ARDL) and error correction model (ECM) estimation techniques. Results indicate that access to finance significantly decreases poverty rates at the 5% level of significance by enabling marginalized groups to invest in education, healthcare, and entrepreneurial ventures. Innovation also reduces poverty by stimulating economic growth and opportunities and is statistically significant at the 5% level of significance. Foreign direct investment (FDI) has a negative impact on poverty rates by generating employment and transferring knowledge and technology, also statistically significant at the 5% level of significance. While corruption was not immediately significant, it showed a long-term significant effect. The study concludes that addressing these economic and institutional factors is a key to sustainable poverty reduction in Nigeria. Policy recommendations include improving financial inclusion, fostering innovation, enforcing strict anti-corruption measures, and creating an environment conducive to FDI to drive long-term economic development and poverty alleviation.
LEVERAGING FINANCIAL INCLUSION FOR BANK PROFITABILITY IN NIGERIA (2000–2019)
This study examines the banking industry in Nigeria over the period of twenty years (2000-2019) with the aim of empirically examining the relationship between financial inclusion and bank profitability. It made use of the available secondary data for this duration to assess the degree to which financial institutions in the country leveraged on financial inclusions to enhance banking profitability. Time series data spanning the period 2000 to 2019 were collected from the Central Bank of Nigeria Statistical bulletin and other secondary sources. The study relied on multiple regression as its major instrument of analysis. The result showed that, the number of commercial bank branches over time was positively associated with bank profitability, while bank average loans to rural communities was negatively related to profitability. The study concludes that, financial inclusion enhanced bank profitability within the period under study. The study therefore recommends that government should foster security in semi-urban and rural areas in order to engender increased financial inclusion and hence bank profitability in the country.
EFFECT OF FOREIGN DIRECT INVESTMENT ON MANUFACTURING SECTOR OUTPUT IN NIGERIA, 1981–2020
This study is an analysis of the effect of Foreign Direct Investment (FDI) on manufacturing sector output in Nigeria. The motivation for this study is drawn from Nigeria’s dependence on external intervention which has created macroeconomic instability in inflation rate, exchange rate and unemployment rate. The aim is to estimate the impact of these variables on manufacturing output. Secondary data were sourced from various issues of the Central Bank of Nigeria (CBN) Statistical Bulletin. The study used the autoregressive distributed lag model (ARDL) estimation technique to evaluate the causality between the dependent variable (manufacturing output) and the independent variable (FDI). The findings revealed that Foreign Direct Investment (FDI) and Gross Fixed Capital Formation (GFCF) have positive impact on manufacturing output both in the short and long run, while unemployment rate, interest rate and inflation rate have negative and significant impact on manufacturing output in Nigeria. The study concluded that FDI and GFCF have significant impact on manufacturing output in Nigeria both in short and long run. It, therefore, recommends that government policy should be concentrated on promoting ease of doing business as a means of attracting foreign direct investment. Gross Fixed Capital Formation should be promoted. Also, monetary and fiscal policies in relation to interest rate, exchange rate and inflation rate should be professionally managed, devoid of politics to facilitate manufacturing sector performance in Nigeria.
CLIMATE CHANGE AND FOOD PRICE INFLATION IN NIGERIA
This study examines the impact of climate change on food price inflation in Nigeria motivated by the current cost of living crisis, problem of food availability and affordability, as well as climate-related crisis in agriculture supply chain. Rainfall, temperature, internal migration and climate change policies were used as independent variables, while food price inflation was used as dependent variable. The unit root test revealed that the variables were stationary at I(1) and I(0). Autoregressive distributed lag (ARDL) and error correction models were the methods of analysis. Findings revealed that rainfall had negative and statistically significant impact on food price inflation with a coefficient of -0.509875 and a probability value of 0.0002. Temperature revealed a positive and statistically insignificant impact on food price inflation in Nigeria with the coefficients of 0.010999 and probability value of 0.1658; internal migration also had a positive and statistically significant impact on food price inflation having a coefficient of 32.76860 and probability value of 0.2901; while climate change policy had a negative and statistically significant impact on food price inflation with the coefficient of 3.397872 and a probability of 0.2821. In conclusion, Nigeria has climate change challenges, and these have also had significant impact on food supply chain and food prices. The study recommends extension services on climate-smart agriculture; also, government needs to implement effective agriculture and food policy urgently, construct more dams, drainages and irrigational water space to curb the challenges of climate change and food price inflation in the economy.
FOREIGN DIRECT INVESTMENT AND AGRICULTURAL GROWTH IN ECOWAS COUNTRIES: 1970-2022 Authors
This study examined foreign direct investment and agricultural growth in ECOWAS between 1970 and 2022, and employed panel data estimators such as the panel two steps system generalised method of moments (GMM) regression technique under the random effect assumption to investigate the impact of foreign direct investment and agricultural growth in ECOWAS. The Results of the study revealed that foreign direct investment in agriculture (FDIA) had negative and statistically significant impact on agricultural gross domestic product (GDPA) with a coefficient of -2.5647 (and p-value of 0.0265). This means that a 1-unit increase in lagged FDIA was associated with a 2.56-unit reduction in GDPA. This implies that FDI had adverse effects, possibly due to inefficient allocation, dependence on foreign capital, or crowding out of domestic investment, on GDPA across ECOWAS, between 1970 and 2022. The significance (p = 0.0265) suggests this relationship was not due to random chance. The small and statistically insignificant coefficient of labour force (LEF) implies that it did not significantly influence GDPA in the ECOWAS region. This result (p = 0.6487) suggests that variations in the labour force did not have a measurable shortterm effect on GDPA, which might be explained by low productivity or underemployment in some cross-sections. Based on the findings, the study recommended that Policymakers across ECOWAS should review the allocation of FDI in agriculture by encouraging domestic investment in agriculture and providing incentives such as tax holiday, subsidies, and access to credit. Also, ECOWAS governments should invest in training programmes to improve the skills of agricultural workers which will increase labour productivity in agriculture. Mechanisation and the adoption of modern agricultural practices should also be prioritised to optimise labour efficiency.
IMPACT OF ENERGY CONSUMPTION ON ECONOMIC GROWTH IN AFRICAN LOW-INCOME ECONOMIES
This study investigates the impact of energy consumption on economic growth in fifteen (15) low-income African economies (Burkina Faso, Burundi, Chad, Democratic Republic of Congo, Gambia, Guinea, Guinea-Bissau, Madagascar, Mali, Niger, Rwanda, Sierra Leone, Tanzania, Togo, Uganda). Employing data spanning from 2003 to 2022, the study utilises the pooled mean group (PMG) estimator. The findings indicate a positive long-term impact of energy consumption on economic growth in these economies. Likewise, the causality results suggest that economic growth causes changes in energy consumption and vice versa. Consequently, the study concludes that the relationship between energy consumption and economic growth holds considerable significance in these economies. Based on these findings, it is recommended that policymakers in these economies should adopt strategies that promote energy efficiency and sustainable energy sources to foster economic development. Additionally, initiatives focusing on economic growth should consider their potential impact on energy consumption patterns. By adopting a holistic and integrated approach, policymakers can effectively address the intricate relationship between energy consumption and economic growth to enhance the overall well-being of these economies.
FOREIGN AID EFFECTIVENESS IN POVERTY REDUCTION IN NIGERIA: THE ROLE OF INSTITUTIONAL QUALITY
This study examines the effectiveness of foreign aid in reducing poverty in Nigeria, with a particular focus on the moderating role of institutional quality. The study used Two-Stage Least Squares (TSLS) estimation method and covered the period 1990 to 2023. The results show that foreign aid does not have a significant impact on poverty in Nigeria and none of the institutional quality indicators significantly affects poverty. However, the results showed that foreign direct investment has a significant positive impact on poverty rate, while inflation has a negative significant relationship with poverty; and exchange rate also showed a positive significant relationship with poverty. The study concludes that institutional quality is not too relevant when it comes to the effectiveness of foreign aid in reducing poverty. Furthermore, foreign aid has no significant relationship with poverty, while foreign direct investment is the most effective in reducing poverty. To reduce poverty in Nigeria, the study recommends that government should reduce its reliance on foreign aid as a means of poverty alleviation; rather than seeking aid, policymakers should develop strategies to attract more foreign investors into the country, and the government should work on the macroeconomic objectives of price stability and exchange rate stability.
THE IMPACT OF INSTITUTIONAL CREDIT ON AGRICULTURAL SECTOR OUTPUT IN NIGERIA: AN APPLICATION OF THE BOUND TEST APPROACH
This study examines the impact of institutional credit on agricultural sector output in Nigeria. The investigation utilised time series data from 1986 to 2023, sourced from the Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics to affirm or reject the assertion that institutional credit can be used as part of concerted efforts aimed at increasing agricultural sector output in Nigeria. It was found that the variables for this study namely, agricultural sector output, commercial bank credit to agriculture, agricultural credit guarantee scheme fund, lending interest rate, and agricultural training expenditure had mixed order of integration, which informed the use of ARDL Bound Test Approach that is suitable for mixed order of integration I(1) and I(0) series. The investigation revealed that institutional credit is not significant to the growth of agricultural sector output (% contribution to GDP) in Nigeria. However, agricultural training expenditure had significant positive impact on agricultural sector output (% contribution to GDP) in Nigeria within the study period. The study therefore recommended the adoption of Agricultural Value Chain Finance (AVCF) that incorporates financial literacy training, savings, budgeting and cash flow management to help minimise default risk and improve the quality of agricultural loan portfolios at affordable rate.
RESOURCE RENT, HUMAN CAPITAL AND HEALTH OUTCOMES IN NIGERIA
This study investigated the relationship between resource rents, human capital and health outcomes in Nigeria using co-integration, vector error correction modelling (VECM) and Granger Causality test over the period of 1980–2023. This study was premised on human capital theory and co-integration tests confirm the existence of a long run equilibrium relationship between resource rents, human capital and health outcome. The study also found that the effect of resource rent on human capital is negative, but the transmitted effect from human capital to infant mortality rate is found to be positive and significant. The effect of resource rent on gross fixed capital formation is negative and transmitted into a negative effect on life expectancy, but both of them are not significant. This indicates that resource rents were not effectively converted into productive physical capital and better health outcomes (life expectancy).In light of these findings, the study recommended that there should be targeted efforts to reinvest these resource rents into healthcare system. Investing directly in these areas would help mitigate the negative impact and improve long-term human capital development. In addition to this, the government should prioritise diversifying the economy and could reduce over-reliance on resource rents.
THE RELATIONSHIP BETWEEN FINANCIAL DEEPENING AND INDUSTRIAL GROWTH: EVIDENCE FROM NIGERIA'S MANUFACTURING SECTOR
This study examines the impact of financial deepening on manufacturing sector output in Nigeria from 1986 to 2022. The problem investigated is the persistent decline in Nigeria's manufacturing output despite various financial sector reforms. The study employs the Autoregressive Distributed Lag (ARDL) model to analyse the relationship between financial deepening and industrial growth using annual timeseries data from the Central Bank of Nigeria (CBN). The findings indicate a significant positive relationship between broad money supply and manufacturing sector output, whereas stock market capitalisation has an insignificant impact, suggesting inefficiencies in the capital market. The study recommends government policies to enhance financial accessibility through increased money circulation, lower interest rates, and capital market reforms to facilitate industrial financing. It concludes that a well-developed financial system is crucial for sustaining industrial growth, but structural inefficiencies in the capital market must be addressed to maximise its benefits.
FOREIGN RESERVE LEVELS AND EXCHANGE RATE VOLATILITY: EVIDENCE IN NIGERIA Authors
Globally, foreign reserves are crucial for determining the exchange rate. Nigeria's foreign reserves have been volatile due to the country's oil-dependency economic structure. At an all-time high of $62.1 billion in November 2008, supported by high global oil prices, it fell to a low of $23 billion in October 2016, caused by a decrease in foreign reserve accretion due to lower global oil prices. Thus, this paper explores how foreign reserve levels influence exchange rate determination in Nigeria. The study employs monthly foreign reserve and foreign exchange rate data sourced from the Central Bank of Nigeria's statistical bulletin, covering the period from 2015 to 2024. The study applied the Vector Autoregressive Model for the analysis. Findings from model one (1) suggest that historical values of the official exchange rate significantly influence current and future official exchange rate movements. Additionally, a decrease in foreign exchange reserves in the previous period is associated with a depreciation of the official exchange rate. Findings from model two (2) suggest that past values of the interbank foreign exchange market rate significantly influence current and future interbank foreign exchange market rate. While a decrease in foreign exchange reserves in the previous period appears to be associated with an appreciation of the interbank foreign exchange market rate, this relationship is not statistically significant in model two. The study demonstrates that Nigeria's foreign exchange reserves play an important yet time-lag and asymmetric role in exchange rate determination. The study underscores the limitations of relying solely on foreign reserve management for exchange rate stability and highlights the need for complementary structural reforms to mitigate systemic vulnerabilities. The study recommends that the Nigerian apex bank adopts forward-looking reserve management strategies like the Guidotti-Greenspan rule and stress testing for foreign reserve management to assess resilience against shocks like commodity price collapses and geopolitical crises.
ASSESSING THE ROLE OF HUMAN CAPITAL DEVELOPMENT IN ECONOMIC GROWTH OF NIGERIA Authors
This study examines the role of human capital development in fostering economic growth in Nigeria, with a specific focus on the impacts of education and health investments, electricity access, and foreign aid. Motivated by Nigeria's ambition to transition to a knowledge-based economy, the study explores how investments in human capital and infrastructure contribute to sustained economic growth. The primary objective is to assess both the short-term and long-term effects of these investments using the Auto-Regressive Distributed Lag (ARDL) model. The methodology involves analysing time-series data to capture the dynamic relationships between human capital development, infrastructure, and economic growth. The scope of the study covers a period from 1980 to 2023, focusing on key variables such as education spending, healthcare expenditure, electricity access, and foreign aid. The theoretical framework draws on three key theories: Neo-Classical Economic Growth Theory, Human Capital Theory, and the Infrastructure-Augmented Solow Model. These theories collectively highlight how investments in human capital, infrastructure, and technological progress drive economic growth. The findings reveal that lagged increase in Growth Domestic Product (GDP) significantly influences current economic performance, while the effects of education and health investments are more long-term, with delayed returns. Additionally, the study highlights that electricity access and foreign aid have immediate impacts, while human capital investments require more time to generate visible results. Based on these insights, the study recommends that policymakers prioritise long-term strategies to enhance human capital and infrastructure development, while reconsidering the effectiveness of foreign aid in promoting sustainable economic growth in Nigeria.
PETROLEUM PRICE DYNAMICS AND INFLATION IN NIGERIA: A GRANGER CAUSALITY ANALYSIS 1990-2023
Persistent inflation threatens Nigeria's economic stability, eroding purchasing power and increasing financial uncertainty. Considering the nation's dependence on petroleum products, comprehending their impact on inflation is crucial for effective policy formulation. This research investigates the causal relationship between domestic petroleum product prices and inflation in Nigeria using the Granger Causality/Block Exogeneity Wald Tests developed by Toda and Yamamoto (1995). An ex post facto research design was applied, utilising time series data from 1990 to 2023, sourced from Bobai's (2012) study, the 2018 Nigerian Oil and Gas Industry Annual Report, National Bureau of Statistics (NBS) (2019–2023), and the Central Bank of Nigeria (CBN). Findings reveal a unidirectional causal link between Automotive Gas Oil (AGO) prices and inflation, indicating that AGO price fluctuations directly affect inflation rates. However, no significant causal relationship exists between inflation and the pricing of Dual-Purpose Kerosene (DPK) or Premium Motor Spirit (PMS). The study also identifies a unidirectional causal link from the Real Effective Exchange Rate (REER) to inflation, underscoring the importance of exchange rate management in controlling inflation. These findings highlight the need for targeted regulatory measures in the AGO market and sound exchange rate policies to curb inflation and ensure economic stability.
MODERATING EFFECT OF AUDIT COMMITTEE EFFECTIVENESS ON THE RELATIONSHIP BETWEEN AUDIT QUALITY AND REAL EARNINGS MANAGEMENT OF NON-FINANCIAL FIRMS IN NIGERIA
Expectation for improvement in audit quality of firms has been on a rising trend in view of frequent cases of corporate scandals originating from managers' activities, viz-á-viz, the earnings management practices. This study examined the moderating effect of audit committee effectiveness on the relationship between audit quality and real earnings management of listed non-financial firms in Nigeria. Longitudinal research design was adopted with a study population of 116 non-financial companies quoted on the Nigeria Exchange Group (NGX), from which a sample of 50 firms was selected and data extracted from their audited annual reports for the period 2011-2020. Using EViews 9, the study employed multiple regression technique to analyze the data. Results showed that audit-committee-effectiveness had a significant moderating effect on the relationship between audit-firm-size, auditor-tenure and auditor-industry-specialization, and real earnings-management, but had no significant moderating effect on the relationship between audit-fees and real earnings-management. It was thus concluded that audit-committee-effectiveness facilitated monitoring activities over the auditor to ensure greater financial reporting quality. The study, therefore, recommended the need for companies, stakeholders, finance/accounting regulators, to consider an expanded approach in constraining real earnings management by ensuring that audit committee members have financial expertise to enhance their effectiveness.
MONETARY POLICY AND DOMESTIC SAVINGS MOBILIZATION IN NIGERIA: AN ARDL BOUND APPROACH
The paper examined the effectiveness of monetary policy in enhancing the performance of the Nigerian Commercial Banks in terms of domestic savings mobilization for the period 1980- 2020. The monetary policy variables used were monetary policy rate, treasury bill rate and money supply growth. The paper utilized time series secondary data from the publications of Central Bank of Nigeria (CBN) and International Monetary Fund (IMF). Data were analyzed using Autoregressive Distributed Lag Bound Test. Findings showed that monetary policy conduct was ineffective in enhancing commercial banks performance in domestic savings mobilization over the period. The findings also showed that key variables of monetary policy were weak in driving domestic savings in Nigeria’s banking system. Based on these findings, the study concludes that monetary policy did not really have significant positive effect on domestic savings mobilization in Nigeria over the period under consideration. However, to deepen domestic savings mobilization in Nigeria, policies that will make income to the people inclusive is necessary to boost domestic savings in Nigeria. The paper, therefore, recommends policy strengthening for effective savings mobilization and equitable redistribution of income in Nigeria.
IMPACT OF WORKERS' TRAINING ON PRODUCTIVITY IN SMALL AND MEDIUM ENTERPRISES IN NIGERIA
Firm productivity has become a crucial component of competitive advantage in modern businesses, prompting concerted efforts towards understanding the underlying factors that drive it. In this study, the impact of workers' training on productivity in small firms is examined. It is argued that firms that regularly train staff members would more generally adopt better production techniques, especially the use of technology, which will aid labour productivity, thereby, boosting innovation and overall productivity. The survey research method was employed in the empirical analysis using data from the World Bank Enterprise Survey for small enterprises in Nigeria. Using the Generalised Method of Moments (GMM) modelling technique, the study found that workers' training is crucial in stimulating productivity among small enterprises in Nigeria. In particular, current training and long-term staff development are found to promote productivity among the firms. It is also shown that training enhances technology diffusion within small firms in Nigeria. These outcomes imply that SMEs that engage in direct training have better opportunities for productivity growth, especially in the long term in Nigeria. It is, therefore, recommended that targeted employee training programmes should be adopted by small businesses as part of their growth and development strategies.
EMPIRICAL EVIDENCE ON THE IMPACT OF TRADE OPENNESS ON ENVIRONMENTAL QUALITY IN NIGERIA
Global decline in environmental quality has been an issue of concern among researchers. Prominent factors identified in connection with this include industrialization, population growth, pollution, agricultural activities and increased global trade. This study, therefore, investigated the impact of trade openness on environmental quality in Nigeria using time series data from 1980 to 2021. The Phillip-Perron (PP) unit root test was used to establish the stationarity properties of the data while the Autoregressive Distributed Lag (ARDL)/Bound test for cointegration showed that there exists a short run relationship between trade openness and environmental quality. Findings support the postulation that trade openness leads to Nigeria being a pollution haven for the industrialized countries of the world, while agricultural activities have insignificant effect on environmental quality in Nigeria. The study, therefore, concludes that trade openness does not contribute significantly to decline in environmental quality in Nigeria. It is recommended that Nigeria should strengthen her trade and environmental policies to avoid being a dumping ground for the industrialized countries.
THE CONTRIBUTION OF TAX REVENUE TO INTERNALLY GENERATED REVENUE IN THE FEDERAL CAPITAL TERRITORY, ABUJA, NIGERIA
The study examined the contribution of tax revenue to internally generated revenue (IGR) in Federal Capital Territory (FCT), Abuja, Nigeria from 1995-2020. The study adopted ex-post facto research design. The variables in the model include internally generated revenue as the dependent variable while company income tax (CIT), personal income tax (PIT) and value added tax (VAT) were captured in the model as the explanatory variables. The method adopted for the study was Autoregressive Distributed Lag (ARDL) models. Findings from the unit root test show that IGR, CIT and VAT were stationary at first difference while PIT was stationary at level. The Cointegration test result from the ARDL bound test shows that the variables are co-integrated, which implies that the time series variables considered have long-run equilibrium relationship. Findings from the ARDL regression result shows that the coefficients of CIT and VAT have negative relationship with IGR in FCT, Abuja while the coefficient of PIT has positive relationship with IGR in FCT, Abuja. Findings also show that effects of CIT, PIT and VAT on IGR in FCT, Abuja were statistically insignificant. The study recommends among others that there should be accountability and transparency from government officials on the management of revenue derived from the various components of taxation particularly CIT, PIT and VAT that directly concerns individuals in the society.
A COMPARATIVE ANALYSIS OF MICRO, SMALL AND MEDIUM SCALE RICE MILLING ENTERPRISES' CONTRIBUTIONS TO ECONOMIC DEVELOPMENT IN NASARAWA STATE, NIGERIA
This comparative analysis of micro, small and medium scale rice milling enterprises' contributions to economic development surveyed micro, small and medium scale rice milling enterprises in Nasarawa State. The major objectives were to evaluate their impacts on employment generation, income and poverty reduction in the study area. This study adopted descriptive and quantitative methods, using questionnaires, percentages and graphic analysis. The Structural Equations Model (SEM) was also employed in the analysis. The results showed that micro scale rice milling enterprises contributed to employment generation by 20% and to income generation by 24%, while the small scale rice milling enterprises contributed to employment generation, income generation and poverty reduction by 83%, 8.3% and 4.2%, respectively. The analysis, therefore, concluded that micro scale rice milling enterprises contributed more to income generation than small scale rice milling enterprises in Nasarawa state, while small scale rice milling enterprises contributed more to employment generation and poverty reduction than micro scale rice milling enterprises in Nasarawa state. Therefore, government policies towards income generation should target micro scale enterprises to reduce income inequality, while small and medium scale enterprises should be supported when the focus is employment generation and poverty reduction in the economy.
DETERMINANTS OF GROSS DOMESTIC SAVINGS IN SUB-SAHARAN AFRICA Authors
In this study the major determinants of gross domestic savings are examined for twenty-five sub-Saharan African (SSA) countries over the period 2000 to 2017. The Fully Modified Ordinary Least Squares (FMOLS) methodology is employed in the empirical analysis. It is revealed that fiscal policy and financial variables, as well as demographic factors have significant impacts on the gross domestic savings in the SSA countries. The impacts of macroeconomic variables are found to be relatively weak. There is also evidence that regional membership groupings of SSA countries significantly explain the savings behaviour of the countries, although there are also country-specific effects. There are policy options to be considered on the basis of the findings: the need for the application of spending and tax options to smoothen critical variations in savings through measures to boost gross income; reforms in the financial sector to boost bank-stimulated savings; and policies to reduce debt vulnerability and encourage economic diversification. Regional economic blocs are also expected to intensify measures to strengthen savings among the member countries through integration.
RISK PROPENSITY AND CLINICAL ENTREPRENEURSHIP IN PLATEAU STATE
A relatively low number of entrepreneurs who pursue innovation, retain their services within the private healthcare practice. A fewer number of health practitioners take the risk to venture into clinical entrepreneurship despite the overwhelming need for innovation in the approach to mental health practice. Thus, this study was aimed at examining the influence of risk propensity (risk tolerance and risk aversion) on clinical entrepreneurship in Plateau State. Using sample of 191 from two hospitals in Plateau State (Jos University Teaching Hospital and Vom Christian Hospital) from a population of 222, comprising medical doctors, clinical psychologists, social workers, occupational therapists and nurses, the study collected data using primary sources (questionnaires). Items on the questionnaire were adapted from (Liñán & Chen, 2009; Meertens & Lion, 2008). Using logistic regression, the study analyzed collected data and found that risk tolerance significantly influences clinical entrepreneurship. However, risk aversion did not have any significant influence on clinical entrepreneurship. The study recommends that all disciplines within the healthcare services should be introduced to basic studies in entrepreneurship and business management as this will improve their skills in clinical entrepreneurship by enhancing their risk tolerance.
TAX STRUCTURE AND ECONOMIC GROWTH IN AFRICA
This paper on tax structure and economic growth in Africa considers the effects of taxes, defined broadly as direct taxes and indirect taxes, on the rate of economic growth in 52 African countries for the period 1980 to 2020 using the two-step system generalized method of moments. Results from the analyses show that a higher direct taxes-to-total taxes ratio (DTR), that is, higher direct tax relative to total tax, is associated with lower rates of economic growth. The contrary is true for the indirect taxes-to-total taxes ratio (ITR). The paper concludes that higher direct taxes, as a proportion of total taxes, lead to slower economic growth on the continent, while higher indirect taxes, as a proportion of total taxes, lead to faster economic growth. The policy implication of this finding is that any increase in the direct taxes, without a proportional increase in indirect taxes, will lower the economic growth rate, while the converse is true for indirect taxes. The paper, therefore, recommends that to enhance economic growth, increases in tax rates or the enforcement of tax laws should place greater emphasis on the indirect taxes, while caution should be applied in the design and administration of direct taxes.