Electricity Outages and Firm Performance Across the Six Geo-Political Zones in Nigeria: The Role of Corruption

This paper provides evidence on the role of corruption in mitigating the effect of electricity outages on firm performance across the six geo-political zones in Nigeria. In addition, this study also assessed effect of self-generation on firm performance across the six geo-political zones and comparison were made as to whether it is more profitable for firms to self-generate electricity during outage periods or bribe electricity officials to mitigates the effect of electricity outages on their performance. Using the World Bank Enterprise Survey (WBES), the study employed a cross sectional Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) techniques and the results of the findings indicate that, bribery does not mitigate the effect of electricity outages on firms across all the geo-political zones in Nigeria with exception of the North-East and the South-East geo-political zones. Although, electricity outage is relatively low in the North-East region, further findings revealed that; firms in the south-east region experience the highest outage intensity of an average of 122.025 times in a typical month, while those in the South-South region experience the lowest outage intensity of an average of 25.845times in a typical month. Lastly, contrary to the arguments in the literature that self-generation during power holidays improves firm performance, evidence from this study suggests otherwise for some geo-political zones in Nigeria. For instance, this study discovered that self-generation is a form of indirect tax which has a negative effect on firm performance especially the North-West, South-West and South-South geo-political zones. Also, while it is more profitable for firms in the North-Central, North East, and South-East regions to self-generate during power holidays, the findings for North-West, South-West and South-South geo-political zones reveal that firms in the zones are better off by relying on electricity supply from the public grid

Electricity Outages and Firm Performance Across the Six Geo-Political Zones in Nigeria: The Role of Corruption

This paper provides evidence on the role of corruption in mitigating the effect of electricity outages on firm performance across the six geo-political zones in Nigeria. In addition, this study also assessed effect of self-generation on firm performance across the six geo-political zones and comparison were made as to whether it is more profitable for firms to self-generate electricity during outage periods or bribe electricity officials to mitigates the effect of electricity outages on their performance. Using the World Bank Enterprise Survey (WBES), the study employed a cross sectional Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) techniques and the results of the findings indicate that, bribery does not mitigate the effect of electricity outages on firms across all the geo-political zones in Nigeria with exception of the North-East and the South-East geo-political zones. Although, electricity outage is relatively low in the North-East region, further findings revealed that; firms in the south-east region experience the highest outage intensity of an average of 122.025 times in a typical month, while those in the South-South region experience the lowest outage intensity of an average of 25.845times in a typical month. Lastly, contrary to the arguments in the literature that self-generation during power holidays improves firm performance, evidence from this study suggests otherwise for some geo-political zones in Nigeria. For instance, this study discovered that self-generation is a form of indirect tax which has a negative effect on firm performance especially the North-West, South-West and South-South geo-political zones. Also, while it is more profitable for firms in the North-Central, North East, and South-East regions to self-generate during power holidays, the findings for North-West, South-West and South-South geo-political zones reveal that firms in the zones are better off by relying on electricity supply from the public grid

A New Look at the Connectedness Between Energy and Metal Markets Using a Novel Approach

This study extends the existing literature in this area by examining the conditional connectedness between energy and metal markets using a novel time-varying quantile and frequency connectedness method developed by Chatziantoniou, et al. (2022) based on Ando, et al. (2018) and Barunik & Krehlik (2018) techniques. Connectedness between the markets was analyzed across various times and frequencies, with daily data covering May 18, 2011, to September 23, 2020. Short-term dynamics strongly drive the total pairwise shocks, while the contribution of medium-term dynamics was meagre, and that of long-term dynamics was insignificant. While the natural gas, gasoline, gas oil, heating oil, crude oil, coal, kerosene, propane, and diesel markets spilled-out shocks to many markets, gold, copper, aluminum, platinum, silver, nickel, palladium and lead markets received shocks from many markets. Zinc appears as an isolated market. The market which influenced the majority of other markets is natural gas, followed by gasoline, gas oil, heating oil, crude oil, coal, kerosene, propane and diesel. In contrast, zinc did not influence any of the markets. The pairwise connectedness results reveal the existence of intra-market linkages within the energy markets (horizontal market integration), while inter-market associations also exist between energy and metal markets (vertical market integration). However, there are only intra-market linkages in the metal markets. Linkages are strong in some markets during the COVID-19 crisis. These results inform some policy recommendations well-articulated in the conclusion section

Modelling Cryptocurrency High-Low Prices using Fractional Cointegrating VAR

This paper empirically provides support for fractional cointegration of high and low cryptocurrency price series, using particularly, Bitcoin, Ethereum, Litecoin and Ripple; synchronized at different high time frequencies. The difference of high and low price gives the price range, and the range-based estimator of volatility is more efficient than the return-based estimator of realized volatility. A more general fractional cointegration technique applied is the Fractional Cointegrating Vector Autoregressive framework. The results show that high and low cryptocurrency prices are actually cointegrated in both stationary and non-stationary levels; that is, the range of high-low price. It is therefore quite interesting to note that the fractional cointegration approach presents a lower measure of the persistence for the range compared to the fractional integration approach, and the results are insensitive to different time frequencies. The main finding in this work serves as an alternative volatility estimation method in cryptocurrency and other assets’ price modelling and forecasting

Grain refinement of Al–Zn–Mg alloy during equal channel angular pressing (ECAP)

Locally produced Al–Zn–Mg alloy was subjected to severe plastic deformation through Equal Channel Angular Pressing (ECAP) technique at temperatures of 150 °C and 200 °C. Rectangular thick-walled medium carbon steel die (σc = 450Mpa, σy = 176Mpa) with an L-shaped channel of uniform configuration to provide the pressing chamber was used. Four ECAP passes were imposed consecutively on set of samples for 150 °C and 200 °C temperatures, and characterized with optical microscopy, scanning electron microscopy (SEM) and x-ray diffraction (XRD). The phases were identified by X-ray diffraction (XRD) using monochromatic Cu Kα radiation, while vickers’ microhardness and tensile tests were performed for mechanical properties examination. Optical micrographs showed no tangible precipitation in the as cast samples with reduced grain width and deformation bands but at high temperatures of 150 °C and 200 °C, precipitation was promoted as a result of slipping systems activation. SEM images of the as-cast alloy exhibits dendrites of 250 ± 20 μm in size with η′ phase (MgZn2) precipitates in the inter-dendritic regions. For 150 °C ECAP temperature, a significant refinement was achieved as the passes increased with sub-grain development within the boundary and the precipitate observed has a grain size of 35 ± 15 μm, 25 ± 10 μm, 15 ± 8 μm and 8 ± 6 μm for first, second, third and fourth passes respectively. However, grain sizes of 85 ± 15 μm, 50 ± 10 μm, 30 ± 8 μm and 10 ± 5 μm for first, second, third and fourth passes were observed for 200 °C ECAP temperature. XRD results showed peaks for aluminum and other phases in as-cast condition with precipitates growth in the alloy after the first pass, identified as metastable η′ phase. As the number of ECAP passes increases, η′ peaks moved towards the equilibrium η phase confirming the transformation of η′ phase to stable η phase. The microhardness, Ultimate tensile strength (UTS) and the yield strength of Al–Zn–Mg alloy in different conditions of 150 °C and 200 °C respectively also increased with increase in the number of ECAP passes. This is due to increase in dislocation density, work hardening and grain refinement during ECAP process

Enhancing linkages of oil and gas industry in the Nigerian economy

The dearth of linkages between the oil sector and the other sectors of the Nigerian economy is a critical developmental problem. Thus, the primary objective of this study is to examine the extent of the linkages that the oil sector has created with the rest of the Nigerian economy. Based on an earlier study which identified areas where local servicing firms in Nigeria have technological and employment potentials, this study covers three of such areas; Fabrication and construction; well-construction and completion, and Control system and ICT. We have used both primary and secondary data and the methods of analysis are both descriptive and inferential. Survey results revealed that the degree of local sourcing of inputs (by local suppliers or servicing firms) in the Control system and ICT sub-sector is less than what obtains in the other sub-sectors. It was also found that linkage between first-tier and second-tier suppliers is weak, though information exchange is relatively higher. In the opinion of the servicing firms, their linkage with the oil sector is weak, but fair in the opinion of the oil firms.. Most servicing firms are national, but the control system and ICT sub-sector has highest multinational presence. Multinational firms dominate the oil sector, followed by joint venture, and few are national. Only public power supply was rated grossly inadequate by the servicing firms, On the average, about half of the servicing firms have agreements with foreign companies and local research centres. Import tariff and taxes are found to be the most inconsistent. Firms are involved in some innovations to survive stiff competition. Control system and ICT sub-sector with higher multinational presence suffer less liquidity problems, but liquidity falls over time. High price of imported raw materials is the largest raw materials problem that affects servicing firms. Based on a regression analysis, it was discovered that the MMCP drivers, other drivers and their interactions affect linkages. In all, availability of skilled labour (skill), policies (tax) and NSI stand out as the major drivers. Based on the above findings, some recommendations are made to the various stakeholders to promote linkages

Enhancing linkages of oil and gas industry in the Nigerian economy

The dearth of linkages between the oil sector and the other sectors of the Nigerian economy is a critical developmental problem. Thus, the primary objective of this study is to examine the extent of the linkages that the oil sector has created with the rest of the Nigerian economy. Based on an earlier study which identified areas where local servicing firms in Nigeria have technological and employment potentials, this study covers three of such areas; Fabrication and construction; well-construction and completion, and Control system and ICT.? We have used both primary and secondary data and the methods of analysis are both descriptive and inferential. Survey results revealed that the degree of local sourcing of inputs (by local suppliers or servicing firms) in the Control system and ICT sub-sector is less than what obtains in the other sub-sectors. It was also found that linkage between first-tier and second-tier suppliers is weak, though information exchange is relatively higher. In the opinion of the servicing firms, their linkage with the oil sector is weak, but fair in the opinion of the oil firms.. Most servicing firms are national, but the control system and ICT sub-sector has highest multinational presence. Multinational firms dominate the oil sector, followed by joint venture, and few are national. Only public power supply was rated grossly inadequate by the servicing firms, On the average, about half of the servicing firms have agreements with foreign companies and local research centres. Import tariff and taxes are found to be the most inconsistent. Firms are involved in some innovations to survive stiff competition.? Control system and ICT sub-sector with higher multinational presence suffer less liquidity problems, but liquidity falls over time. High price of imported raw materials is the largest raw materials problem that affects servicing firms.? Based on a regression analysis, it was discovered that the MMCP drivers, other drivers and their interactions affect linkages. In all, availability of skilled labour (skill), policies (tax) and NSI stand out as the major drivers. Based on the above findings, some recommendations are made to the various stakeholders to promote linkages