Abuja Journal OF ECONOMICS AND ALLIED FIELDS

Interest Rate Dynamics and Export Performance in the Nigerian Economy

Gana Usman — 2023-12-30

The study comprehensively investigates the relationship between interest rate dynamics and export performance within the Nigerian economy from 1991-2022. The variables for which data were sourced include: Real Interest rate, Export and Exchange rate. The study used cointegration test and Error correction mechanism (ECM) to estimates the data. The findings show that there is a longrun
relationship between Interest rate and Export and Exchange rate in Nigeria. The ECM result shows that there is a negative relationship between interest rate and Export in Nigeria. The study therefore recommends that the Central Bank should introduce targeted financing initiatives, like subsidized loans or interest rate rebates, specifically tailored for export-focused enterprises. This approach
aims to alleviate the burden of high borrowing costs on exporters, potentially mitigating their adverse effects on operations. By reducing the cost of borrowing, this strategy seeks to bolster the competitiveness of exporters in the face of elevated interest rates.

Analysis of the Effects of Road Provision Budgetary Allocations on Property Investment Returns in Selected Areas of Abuja, Nigeria

Suleiman Yakubu — 2023-12-30

The Nigerian government faces infrastructure funding challenges. Consequently, interested in knowing the possible areas that spending will be of more effects in order to ascertain government's benefits derivable from such effects in terms of increased revenue generation through tax. This is for the purpose of gaining the capacity to provide or maintain new or existing infrastructure respectively. Therefore, this paper analysed the effects of budgetary allocations (budgetary expenditures) on property investment returns in Abuja Nigeria. It aims at determining the level of impact of government road provision budgetary expenditures on property investment returns. In order to achieve the aim of the study, quantitative method research design was adopted for data collection. The data obtained was analysed quantitatively. Regression analysis was used to determine the increase in property values (rental and sales) as a result of budgetary expenditure on road provision. Findings show that budgetary expenditures (road reconstruction)lead to increase in property values in the areas thereby, having positive effect on property investment returns. This serves as the basis of guidance to government decisions on the allocation of more funds inroad provision budgets. The potential for capturing the rise in returns of real estateinvestments due to budgetary expenditures on road provision that serves as an alternative funding source through property tax is estimated.

Policy option on Port Supply Chain Orientation as a Step to Improve the Performance of Nigeria's Industrial Sector

Babatope Gabriel Oni — 2023-12-30

The manufacturing sector in Nigeria is not performing to its full potential, as shown by the economic statistics that are now accessible, such as the annual contribution to gross domestic product (GDP), and manufacturing value added (MVA), during a period of nearly four decades (1982–2018). The goal of this study is to evaluate Apapa and Tin Can Ports' level of industrial sector orientation in order to enhance the efficiency of the supply chains for the food and beverage manufacturing industry in the industrial clusters of Lagos and Ogun.This study made use ofsecondary data. Data on container port throughput for the eight (8) years between 2014 and 2021 was obtained from the Nigerian Port Authority (NPA), which is in charge of managing and operating ports in Nigeria. Additionally, information on Manufacturing Production Values was obtained from the Manufacturers Association of Nigeria (MAN), the organization that represents all Nigerian manufacturers. The results of the multiple regression analyses show a significant and direct relationship between the manufacturing production value (MPV) of the food and beverage industry and the throughputs of the two ports, Apapa and Tin-can Island. Tin Can Port has more of an impact than Apapa. At the cluster level, Tin Can Port's throughput had no significant relationship with the MPV of the Apapa cluster, but Apapa Port's throughput had a direct and significant impact on it. According to findings on the Ikeja cluster, MPV is only positively and significantly impacted by Tin Can Island Port's throughput. The Throughputs of both ports have significant impacts on MPVs in the Ogun cluster. Apapa, however, has a greater effect than Tin Can Port. Therefore, it is important to take into account the connections between a particular port and industrial cluster while choosing an optimal approach.

Investigating the Effects of Inflation on Welfare: A Study of Selected Non-Income Welfare Indicators in Nigeria

Shema'u Sabo-Adamu — 2023-12-30

Nigeria is currently experiencing high rates of inflation. This is driven by conditions which include rising prices globally and domestic factors such as overheating economy and removing of fuel subsidies by the federal government. While provision of quality Education and Health services to the people is key to improving their well-being, a healthy and skilled human capital is required for both growth and human development. Accordingly, the paper investigated the effects of inflation on nonincome welfare indicators, particularly, Education and Health indicators in Nigeria. The study used an empirical analysis employing annual time series data sourced from the World Bank Development Indicators (WDI, 2023) from 1986 to 2021. The study's contribution to the existing knowledge differs from other studies and took a development perspective rather than other researches commonly relating inflation and growth. The findings indicate that inflation has adverse effects on non-income indicators represented by Education and Health. Inflation reduces the non-income welfare, particularly the primary school enrolment and average life expectancy. These results suggest that, as the rate of inflation increases, the welfare of Nigerians decreases. Meaning, more Nigerians would fall into poverty as their welfare decline and theirlife span may be shortened. The paper recommends the federal government should focus more on macroeconomic policies that curtail inflationary pressures, the independence of CBN combined with practical and data-driven monetary policymaking to sustenance, the objectives of price stability, and fiscal discipline should be sustained to avoid undue aggregate demand pressures which drive up prices. Further, there should be monitoring and evaluating progress of the relief measures put in place to cushion the negative effects of fuel subsidy removal.

Evaluating The Implications and Prospects of Nigeria's Participation in the African Continental Free Trade Agreement (AfCFTA): An Analysis of Trade Gains and Opportunities

Terungwa Paul Joseph Jato — 2023-12-30

Challenged by slow growth and development, there has been an increased need and search for avenues that will bring accelerated development to the African continent. Such attemptsinclude the African Continental Free Trade Agreement (AfCFTA) entered into by some African countries including Nigeria. The AfCFTA promises benefits for regional development through individual benefits to member countries from trade. The study, thus, evaluated Nigeria's potential for trade gains from the AfCFTA. The gravity model of trade was applied to analyze data about the variable obtained for Nigeria and some African states. The majorfindings of the study show that the volume of Nigeria's GPD, the distance between Nigeria and the trading partners, Nigeria's population, the per capita income in the region, the degree of trade openness, and sharing a colonial link with a country are capable of increasing trade flows to Nigeria, thus increasing her chances of gaining from the AfCFTA. Other variables like the GDP of the trading partners, their population, and being a member of AfCFTA have the potential of lowing trade flow to Nigeria, all things being equal. It was concluded that Nigeria stands to benefit from hertrade with these countriesin the African continental free trade arena, all things being equal. Foreign trade policy actions should therefore be geared toward increased trade between these member states.

Impact of Social Capital on Economic Growth in Nigeria: 1995-2022

Yahaya Masaud — 2023-12-30

This research paper delves into the intricate relationship between “trust” and “association membership “as components of social capital on economic growth using panel data spanning the years 1995 to 2022. We used the dynamic panel ARDL to unveil both the long-term and short-term dynamics between these variables. According to the study's findings, there is a noteworthy absence of a long-run relationship between social capital and economic growth. Surprisingly, this outcome holds consistent across the diverse sample of member countries. As a result, this study firmly concludes that social capital does not exert significant influence on economic growth in both short-run and the long run. Subsequently, the paper put forth the following suggestions: Governments should prioritize the development of social capital as a central policy objective. This strategic focus will improve investor confidence and civic trust, which will improve the country's economic prospects .Secondly, states should leverage their inherent growth potentials, which will undoubtedly increase social capital fostering a positive cycle of growth and societal cohesion.

Analysis of Foreign Direct Investment (FDI) on The Nigerian Economy 1985 – 2017: A Vector error correction Model Approach

Yelwa Nurudeen Mohammed — 2023-12-30

This research work examined the impact of foreign direct investment on economic growth in Nigeria: A VAR model analysis (1985 – 2017). Secondary time series data obtained from World Bank were made to undergo series of tests to investigate the impact of foreign direct investment on economic growth in Nigeria covering a period of 33 years. The variables used are foreign direct investment, economic growth, exchange rate, interest rate and oil price. The stationarity test (unit root) showed that the included variables; economic growth (ECGT), exchange rate (EXCHR), interest rate (INTR) and oil price (OILP) were stationary at their level except for foreign direct investment (FDI) and exchange rate (EXCH) which was stationary after the first difference. They were thus integrated of order one 1(1). The Cointegration test using Johansen Cointegration testrevealed that the variables were cointegrated and had a stable relationship in the long-run. To check for short-run relationship, the Granger causality test was adopted, and it showed causality relationship among the variables. As the result suggests, it becomes beneficial for Nigeria to attract FDI in order to stimulate the economic growth rate. The study recommended that there is need to improve the FDIs climate to take advantage of the new global interest in the affairs of the country by implementing sound macroeconomic policies, spurring innovation, improving the investment climate, establishing a transparent legal
framework that does not discriminate between local and foreign investors and improving the provision of infrastructure and the government should implement policies that will make the foreign investment on oilsector more efficient and re-position it for economic growth in Nigeria.

Review of Interest and Exchange Rates Relationship and the Implications for Nigeria's Economy

Anthony E. Hassan — 2023-12-30

This study examined the relationship between savings rate and prime lending rate on one hand and exchange rate on the other and how the relationship transmit into the economy. The instability and persistent fall in the value of the Naira and the implications on the economy, warrants another look on this topic. Relying on theories and available data, a system of equations within the seemingly unrelated regression technique was analyzed for the Nigerian economy using quarterly series over 2011 to 2021. The findings reveals that savings rate and prime lending rate had the ability to cause the Naira to appreciate, though they could not do it significantly. The prime lending rate had significant positive relationship at 5% with real output. A point increase in prime lending rate led to 1.53 points increase in real output in the economy. Aggregate investment has the ability to appreciate the Naira, andit did that significantly at 1%. Exchange rate had positive significant relationship at 1%, with real output growthin the economy over the period examined. It is thus recommended among othersthat monetary policy be fine-tuned to allow the rates unleash their potentials on the economy, while foreign exchange leakages are blocked.

Revenue Diversification in a Constrained Economy: Implications for Economic Growth in Nigeria

Joseph Tsenkwo — 2023-12-30

The aftermath of lockdown occasioned by the covid-19 pandemic, in addition to global recession descended on economies of the world and more on revenue constrained economies of less developed world like Nigeria. This was manifested in the rising budget deficit rate, occasioned by limited revenue sources,high interest rates, inflation and debt stock with its attendant negative implication respectively. The study was carryout to ascertain if revenue diversification is panacea to the declining economic growth in Nigeria's constrained revenue profile and also, to identify the key target sectors for policy intervention towards achieving revenue diversification away from oil dominated sector. Utilizing the cause and effect research design, secondary data spanning the period 1986-2022 from diverse sources was analyzed using ARDL analytical tool. The results obtained showed an impressive revealions. The findings from the study established the existence of significant positive long run characteristic among the variablesincluded. Thisisimplying that any incremental policy interventions targeted to these variables, in this case the Tourism, Solid Minerals, Agric, Manufacturing, and the Diversification index variables could translate to accelerated economic growth rate in the long run rather than contemporaneous effect through increased GDP. The study therefore, recommended the need for a special attention to be accorded to these sectors in terms of policy making to encourage private investments in addition to government effort to spur the ratio of their contribution to GDP.

Climate Change and Human Health in Nigeria

Saheed O. Olayiwola — 2023-12-30

This study examined the impact of climate change on human health in Nigeria. Life expectancy and infant mortality rate were used as proxies for human health while climate change was indexed using carbon emission, forest depletion, nitrous oxide emissions, fossil fuel energy, C02 emission, and greenhouse gas emissions. Auto-Regressive Distributed Lag model (ARDL) was employed as the estimation technique. The results show adverse significant effects of climate change on human health in Nigeria. It was concluded that climate change has significant untoward effects on human health in Nigeria. Therefore, policymakers need to design and implement policies to reduce climate damage through economic activities to lessen the harmful effects of climate change on human health in Nigeria.

Examination of the Macroeconomic Effects of the e-Payment System on the Pathway to Cashless Economy in Nigeria

Samod O. Lawal-Arogundade — 2023-12-30

The exploration of the macroeconomic effects of the e-payment system in the realization of a cashless economy in Nigeria has not enjoyed sufficient scholarly inquiries. Based on this gap, this paper aims to determine whether the CBN's recent demonetization scheme on the path to a cashless economy is informed by evidence-based insight on the macroeconomic effects of the country's epayment systems. The researchers appraise the policy and regulatory environment in Nigeria, and evaluate the challenges and opportunities for the government towards the development of a more reliable digital payments system. The study deployed an ARDL model to investigate the relationship between e-payments and macroeconomic conditions. Using a monthly frequency, the study shows that the macroeconomic effect of a cashless policy is not only limited and temporary but also sensitive to the measure of the macroeconomic conditions under consideration. The ATM looks to be inflationary; however, alternative e-payment channels such as POS, WEB, and MOBILE APPS are capable of causing price levels to fall. The research reveals that the digital mode of payments is highly advantageous to the macroeconomic survival of Nigeria. Also, there is a need to put in place policy and regulatory frameworks to ensure that the
digital option has the capacity to serve the large population of the country in terms of technologicaland technical expertise. The study concludes that the growing presence of e-payment facilities is the way to go to strengthen macroeconomic conditions when the demonetization strategy is implemented on the route to a cashless economy.

Determinants of Healthcare Seeking Behaviour amongst Households In Nigeria

Oluwaseyi A. Mohammed — 2023-12-30

The weak healthcare-seeking behaviour in Nigeria has been a major concern for both scholars and policy makers in recent years. This issue is also reinforced by international pressures on nations (Nigeria inclusive) to achieve the SDGs goal number 3 by 2030. Thus, this study assessed the key determinants of healthcare seeking behaviour among households in Nigeria. The study employeddatasets from NOIPolls-Afrobarometer national survey which sampled 3,200 participants residing in the urban and rural communities in Nigeria aged 18 years and above.A multivariate logistic regression,cross-tabulation and chi-squareanalytical tools were employed to analyze the data collected from the field. The research found thatundue financial extortions from patients seeking healthcare services by healthcare service providers, unfriendly attitudes of healthcare service providers to patients seeking medical attention, poor access to medical services, long waiting time, lack of medicines at the clinic, shortage of medical staff, poor condition of health facilities and households' lived poverty index had significant influence on healthcare seeking behaviour of households in Nigeria. This reveals that the healthcare-seeking behaviours of households in Nigeria are significantly related to the enabling, predisposing and need factors. It then suggests the strengthening of healthcare systems, and workforce development, including communication and counselling skills among healthcare service providers by the government, NGOs and stakeholders in the private sectorin order to curb the unfriendly attitudes of healthcare providersto patientsseeking healthcare services.The study also recommends that the government should set up monitoring and
compliance mechanism agencies across all states in Nigeria, and ensure universal and sustainable healthcare coverage across the urban and rural communities in Nigeria.

Impact of Electricity Sector Reform on The Efficiency of Electricity Distribution Companies (Dis Cos) in Nigeria

Bariki Sani Sabiu — 2023-12-30

The essence of electricity sector reform is to improve the technical efficiencyof power utilities, thereby increasing access to reliable electricity and the productive use of electricity. In this light, this study examines the impact of electricity sector reform on the efficiency of distribution companies (DisCOs) in Nigeria. The study employs panel data from 11 DisCos between 2012 and 2020 and the Translog
Input Distance Function of Stochastic Frontier Analysis (SFA) with Maximum Likelihood (ML) random-effects time-varying model of technical inefficiencies. In terms of the distribution of the inefficiency term, the truncated normal distribution, which allows the use of a single-step procedure to examine the impact of exogenous factors (electricity sector reform) on the inefficiency of the DisCOs is employed. The paper finds that electricity sector reform has a significant relationship with the efficiency of DisCOs. The presence of regulation further decreases the sub-sector's efficiency; however, private sector involvement in the sub-sector improves the distribution companies' efficiency. The impact of competition on DisCOs' efficiency is inconclusive. The study finds DisCOsto be highly inefficient despite sector reforms, with an average efficiency of 23 percent, which is remarkably low for a privatized industry. The paper therefore concludesthat electricity sector reform did not result in the desired efficiency gains of the DisCos. The study therefore recommends that more private sector involving is needed to improve the efficiency of the distribution sub-sector, with government involvement limited to supervisory or regulatory role.

Assessing the Economic Effect of Occupants' Maintenance Awareness and Responsibility on Housing Condition of ATBU Staff Quarters

Ummi Aliyu Sulaiman — 2023-12-30

This study aimed at investigating the economic effect of occupants' maintenance awareness and responsibility on housing condition using ATBU staff quarters as a study area. A survey research was carried out through the use of questionnaire instrument. A total number of 113 (One Hundred and Thirteen) questionnaires were administered, Out of which 92 were retrieved for data analysis. The simple random sampling technique was adopted for the study; while data obtained from the field were analyzed using statistical packages for social sciences (SPSS).The study have found out that occupants of ATBU staff quarters have good knowledge of their maintenance responsibilities. The study also found out that Electricity and Ventilation are the building facilities with better condition followed by water supply, tiles, walls, doors, ceiling, windows, roofing, recreational facilities, air conditioners; finishing, waste disposal facilities and wardrobes are in average condition. The findings finally show that 4.6% of the changes (Variation) on dependent variable condition of ATBU staff quarters are explained by factors that lead to maintenance awareness and maintenance responsibility, i.e there is no statistically significant relationship between maintenance awareness and maintenance responsibility and the dependent variable - condition of ATBU staff quarters. The study concludes that occupants of ATBU staff quarters are aware of maintenance requirements of the building and their maintenance responsibilities. The study recommends that the institution works/maintenance department and
Occupants should adopt a good building maintenance culture or protection method which will increase the life span of the housing unit and enhance the enjoyment of such housing.

Spill-over Effects of United States Monetary Policy on Macroeconomic Stability in Nigeria

Bernsah Damian Lawong — 2023-12-30

The monetary policy pronouncement and implementation by the US may have implication for macroeconomic stability in Nigeria. The objective of the paper was to examine US monetary policy spill-over on macroeconomic stability in Nigeria.To achieve this objective the stochastic properties of the data were examined. The optimal lag length selection criteria were used to select the optimal lag length for the model, while the impulse response functions were generated from the Bayesian VAR to determine the innovation from US monetary policy to macroeconomicstability in Nigeria.The findings vary by the type of macroeconomic variable under consideration. MPR and OPS had the greatest negative impacts following innovation from US monetary policy, while ER, CPI and IBCR had slightly negative impacts following the innovation and GDPGR had the least negative impact. Generally, the negative impacts are greater in quarters and magnitudes than the positive impact following US monetary policy innovation. The findings may beuseful for macroeconomic policymaker as this may be required to understand the spill-over effects – direction and magnitude of innovations and then can plan for a macroeconomic policy coordination and then intervention to deal with the spill-over effects.

Economic Burden of Non-Communicable Diseases on Life Expectancy of Households in Jos, Plateau State, Nigeria

Emma N.O. Collins — 2023-12-30

The paper explored theeconomic burden of non-communicable diseases (NCDs)on the life expectancy of households in Jos, Plateau State, Nigeria. Recognizing the pivotal role of healthcare financing in managing NCDs and enhancing life expectancy, this investigation focused on understanding how expenditures on drugs, hospitalization, and laboratory investigations influence the longevity of the affected populations. The research was motivated by the growing concern overthe increasing prevalence of NCDs and the need for targeted healthcare investments to improve public health outcomes in the region.Employing an ordinal logistic regression analysis, the study analyzed data collected from households within Jos metropolis. The research design was meticulously crafted to assess the relationship between the specified categories of healthcare expenditures and life expectancy, accounting for the diverse healthcare needs and financial capacities of the households.The findings revealed that expenditures on drugs, hospitalization, and laboratory investigations all have a positive and significant impact on life expectancy. Specifically, the study demonstrated that accessible and affordable medication, quality hospital care, and effective diagnostic services are crucial componentsin extending the lives of individuals afflicted with NCDs.
These results underscore the importance of healthcare expenditures in managing chronic diseases and suggest a direct link between financial investments in health services and improved life expectancy outcomes.Based on these findings, the study recommends the implementation of policies aimed at enhancing the accessibility and affordability of essential medications, including negotiations for lower drug prices and subsidies for life-saving drugs. Additionally, it highlights the need for substantial investments in healthcare infrastructure, particularly in hospital facilities and diagnostic services, to ensure the delivery of quality care. Strengthening laboratory services through investments in modern equipment and technician training is also emphasized as a priority for improving disease management and patient outcomes.

Analsis of the relationship between unemployment,Inflation and Political Leadership in the Nigerian Economy: 2015-2023

Park O. Idisi — 2023-12-30

The Nigerian economy experienced the worst kind of persisting inflation and rising unemployment between May 2015 and May 2023 being the period of focus in this analysis. Deployment of sound economic planning, efficient resources allocation, committed political leadership among others, will deliver same order of outstanding macroeconomic performance in Nigeria as elsewhere in the world if brought to bear in fiscal and monetary policy formulation towards national economic development. This paper wants to buttress that committed political leadership is required not only to arrest rising unemployment and inflation along with sluggish economic growth but also for building a prosperous nation. It recommends that political leadership should provide the enabling environment required for economic activities to thrive, see to it that the law is enforced and injustice redressed by necessary compensations.

Analysis of the relationship between Exchange Rate, Interest Rate, Oil Price Shocks and Foreign Direct Investment on Economic Growth In Nigeria: 1985- 2017

Musa Umar — 2023-12-30

The study examined the effects of economic growth, exchange rate, interest rate, and oil price shocks on foreign direct investment in Nigeria between 1985 and 2017.The result of Var estimates of FDI is associated with 39.07% increase in FDI on average all things being equal (ceteris paribus). A percentage increase in economic growth (ECGT) account for 2.08% increase in FDI. A percentage increase in oil price (OILP) account for -2.80% decrease in FDI on average all things being equal (ceteris paribus). The FDI to sudden changes in the independent variables inPanel 2 shows that the response of ECGT to a shock in FDI; from the response of FDI to a shock in FDI initially has a noticeable impact on ECGT in period 1. From the 2 period the response gradually declined above its steady states value and remain positive in the position region. Meaning that shock to ECGT will have a positive impact on FDI both in short and long run. The Variance decomposition indicates the amount of information each variable contributes to the other variables in the model. It determines how more of the forecast error variance of each of the variables can be explained by exogenous shocks to the other variables. It identifies the predominant shocks that contribute more to the changes in the dependent variables in the model, in the short run one year forecast error, medium term 5 year forecast error and in the long run 10 year forecast error. The variability of FDI to changes in ECGT, EXCHR, INTR and OILP. ECGT contributes the most to changes in FDI both in the short run, medium and long run; followed by EXCHR and INT while OILP contributes the least to FDI. In conclusion: innovation and response must be consistent with intuition, economic theory expectation. For instance, our results are consistent because with good economic growth like infrastructure, investors tend to invest more, and this leads to more economic development and creation of jobs, creating demand for production, investment goes up leading to economic growth.The study recommended that there is need to improve the FDIs climate to take advantage of the new global interest in the affairs of the country by implementing sound macroeconomic policies, spurring innovation, improving the investment climate, establishing a transparent legal framework that does not discriminate between local and foreign investors and improving the provision of infrastructure and the government should implement policies that will make the foreign investment on oil sector more efficient and re-position it for economic growth in Nigeria.

Socio-Economic Analysis of Residents Perception of Apo Village Resettlement Scheme in Abuja, Nigeria

Abdulhadi Maryam Muhammad — 2023-12-30

This study aimed at exploring an economic analysis of the resettlement scheme in Apo village, Abuja: resident’s perceptions and socioeconomic implications. A survey research was carried out through the use of questionnaire instrument. 300 sets of questionnaires were administered to original inhabitants of the study area and a total of 202 questionnaires with a 67% approximate response rate were retrieved for analysis while data obtained from the field were analyzed using statistical packages for social sciences (SPSS).The study have found out that residents of Apo village, Abuja were generally dissatisfied with the resettlement scheme. the highest level of dissatisfaction was reported from residents who were unhappy with the size of the houses, pipe-borne water, electricity, rooms, quality of finishes, land size, health facilities, road networks, and proximity of markets and schools. The regression analysis showed that the residents' challenges and perceived benefits significantly affected their satisfaction with the resettlement scheme. The residents' perceived benefits made a statistically significant unique contribution to satisfaction with the resettlement scheme, while the process and product challenges variables had the lowest negative contribution. The study concludes that the resettlement scheme in Apo village, Abuja, is faced with several challenges that have led to low resident satisfaction. The government needs to address these challenges to improve the quality of life for the resettled residents. Finally the study recommends the involvement of the affected community in the process of enumeration and appraisal. This will help to ensure that the resettlement scheme is fair and equitable.

Empirical Evidence on the Effect of Public Debt on Economic Growth in Nigeria

Onyinyechi Josephine Onuoha — 2023-12-30

The rising debt profile of developing economies like Nigeria has remained a concern for policymakers and other agents of the economy as to whether it has achieved the desired goal of economic growth in Nigeria. Thus, this study investigated the effect of public debt on economic growth in Nigeria. Relevant secondary data were sourced from Central Bank of Nigeria, Debt Management Office and World Bank Development Indicators, for the period 2010-2022. The study employed Autoregressive Distributed Lag (ARDL) methods of analysis to estimate the relationship among the variables used in the study. Results revealed that both in the short-run and long-run foreign and domestic debt had a positive significant effect on economic growth in Nigeria; while debt service and inflation exert a negative insignificant effect in the long-run and short-run. The error correction mechanism (ECM) shows that the model will adjust at the speed of 10% in short run towards the long run equilibrium. To this effect, the study recommended that borrowed funds should be optimally invested in productive ventures in Nigeria. Also, the loans should be serviced when they are due to avoid sanctions and debt overhang.

Smallholder Farmers' Access to Agricultural Credit and Agricultural Output in Plateau State, Nigeria

Sunday Baba — 2023-12-30

This study examined the impact of smallholder farmers' access to agricultural credit on agricultural output and its broader socio-economic implications. Through an extensive review of literature, the study highlights the positive relationship between agricultural credit and agricultural productivity. When smallholder farmers have improved access to credit, they can invest in modern farming technologies, high-quality inputs, and sustainable practices, leading to increased crop yields and overall agricultural output. This, in turn, contributes to higher income levels for farmers, poverty alleviation, and enhanced food security within rural communities. Moreover, the study explores the various socio-economic impacts of agricultural credit on smallholder farmers and their surrounding regions. It uncovers the potential for job creation, rural development, and economic growth as agricultural output rises and agro-based industries thrive due to increased production. The study also identifies several recommendations to strengthen smallholder farmers' access to agricultural credit. These recommendations include the establishment of agricultural credit institutions, financial literacy and capacity-building programs, targeting women farmers, promoting climate-smart agriculture, and implementing monitoring and evaluation mechanisms to ensure the effectiveness of credit programs. In conclusion, the findings of this study underscore the critical importance of providing smallholder farmers with improved access to agricultural credit. By doing so, governments and stakeholders can significantly boost agricultural output, alleviate poverty, and enhance the overall socio-economic well-being of rural communities. Empowering smallholder farmers through agricultural credit is a promising strategy for building more resilient and sustainable agricultural systems and fostering inclusive economic growth.