Financial Inclusion and Employment Generation: Empirical Evidence from Nigeria

The paper investigates the impact of financial inclusion on job creation (unemployment rate) in Nigeria over the period 1981 – 2019 using the ARDL method. The results show that in the short run, deposit penetration, credit penetration and domestic investment penetration negatively and significantly impacted on unemployment rate. This implies that these variables reduced unemployment and improved the wellbeing of Nigerians. Interest rate on credit also complies with theoretical expectation with positive sign which implies that it fuels unemployment while bank branch penetration has mix effect on employment rate. However, in the short run, financial inclusion was significant in explaining changes in unemployment rate in Nigeria. The long run result shows that only bank branch penetration retarded unemployment rate. Deposit penetration, credit penetration, domestic investment penetration and interest rate all had positive effect on unemployment which implies they stimulated joblessness in Nigeria over the period of this study. Also all the variables in the long run equation insignificantly impacted on unemployment level. Based on these results and findings, the paper concludes that financial inclusion has negative and significant effect on employment generation in Nigeria only in the short run. The paper also recommends: increase access to financial services through branch expansions to the rural communities and the expansion of credit to the working poor as a way of building more capacity for employment generation in Nigeria

Energy Demand and Inclusive Economic Growth in Nigeria

This study examined the impact of energy demand on inclusive economic growth in Nigeria over the period 1990 – 2021. To achieve this purpose, data on inclusive growth proxy by Gross domestic product per person employed in Nigeria, and energy demand measured by demand for: solar energy, hydropower energy, petroleum energy, natural gas energy and coal energy were sourced from the World Bank and International Energy Agency. The data were analyzed using the Autoregressive and Distributed Lag (ARDL) methodology. The result of the study indicated that: Solar energy demand, hydropower energy demand, demand for natural gas and demand for coal energy had significant impact on inclusive economic growth in Nigeria both in the short and long run. Demand for petroleum energy had insignificant effect on inclusive growth in the long run but significant impact on inclusive growth in the short run in Nigeria over the period of this study. Hence the study concluded that energy demand has serious implications on inclusive economic growth in Nigeria. Consequent upon these findings, the study recommends; improve infrastructure for natural gas, coal energy, solar energy and the diversification of energy sources in order to improve investment in the energy/power sector, create more jobs and reduce poverty in Nigeria

Electronic Payment System Channels and the Performance of Deposit Money Banks in Nigeria

This study examined the effect of electronic payment system channels on the performance of deposit money banks in Nigeria from 2010Q1 to 2020Q4. Electronic payment system channels were proxied by Automated Teller Machine, Point of Sale, mobile payment and web based payment while performance of deposit money banks was measured by deposit penetration. The study used quarterly data which were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin. Time series properties of the data were tested using the Augmented Dickey-Fuller (ADF) and Philip-Perron (PP) Test and due to the different order of integration the Autoregressive Distributed Lag (ARDL) technique was used. The result of the ARDL estimation showed that: Automated Teller Machine had a positive and significant effect on deposit penetration. Mobile payment also had a positive and significant effect on deposit penetration. The result further revealed that web based payment had a positive and significant effect on deposit penetration while point of sale had a positive but non-significant effect on deposit penetration. The study concluded that electronic payment system channels play a significant role in the performance of deposit money banks in Nigeria. Based on these findings, the study recommends: the use of more efficient Automated Teller Machines (ATMs) with twenty-four hours services should be deployed by deposit money banks in Nigeria so as to reduce customers’ waiting time at ATM points, increase accessibility to banking services and improve infrastructure in order to boost their performance

Does Natural Gas Utilisation Improve Economic Wellbeing? Empirical Evidence from Nigeria

This study examined the effects of natural gas utilised on per capita income measured in term of purchasing power parity (economic wellbeing) in Nigeria from 2010 to 2020 using quarterly data sourced from International Energy Agency and the Central Bank of Nigeria. The Autoregressive and Distributed Lag (ARDL) technique was used to analyse the data after conducting descriptive statistics, trend analysis and unit roots test on the data. The result shows that in the long run, gas demanded for power and transport sectors as well as its cost contributed to a decline in per capita income which ultimately hampered economic wellbeing in Nigeria. On the other side, households and industrial sector demand for gas improved per capita income and, over time promoted long run economic wellbeing in Nigeria. The study also found an insignificant nexus between demand for gas by the various sectors and economic wellbeing in the long run. In the short run, gas utilised for power generation and the industrial sector had negative and significant impact on economic wellbeing while households demand for natural gas significantly improve economic wellbeing by increasing per capita income in Nigeria. Based on these results, the study concludes that gas demand had serious implication on economic wellbeing in the short run than long run. Also gas demand utilised by households had positive effect on economic wellbeing both in the long and short runs.  Consequent upon the findings, the study recommends, increase in gas demand for household and industrial use by enhancing a competitive price for natural gas in order to enhance sustainable economic wellbeing in Nigeria.&nbsp

Value Added Tax and price stability in Nigeria: A partial equilibrium analysis

The economic impact of Value Added Tax (VAT) that was implemented in Nigeria in 1994 has generated much debate in recent times, especially with respect to its effect on the level of aggregate prices. This study empirically examines the influence of VAT on price stability in Nigeria using partial equilibrium analysis. We introduced the VAT variable in the framework of a combination of structuralist, monetarist and fiscalist approaches to inflation modelling. The analysis was carried out by applying multiple regression analysis in static form to data for the 1994-2010 period. The results reveal that VAT exerts a strong upward pressure on price levels, most likely due to the burden of VAT on intermediate outputs. The study rules out the option of VAT exemptions for intermediate outputs as a solution, due to the difficulty in distinguishing between intermediate and final outputs. Instead, it recommends a detailed post-VAT cost-benefit analysis to assess the social desirability of VAT policy in Nigeria

Natural Gas Consumption and Economic Growth in Top Gas-Producing African Countries

This study examined the impact of natural gas consumption on economic growth of some selected natural producing countries in Africa namely: Algeria, Angola, Egypt, Gabon, Libya and Nigeria over the period 1990 -2021 using Panel ARDL analysis. In order to achieve the purpose of the study data on growth rate of Gross domestic product (GDP), natural gas consumption, natural gas price and gasoline motor fuel consumption were sourced from the International Energy Agency and the World Bank. Gasoline motor fuel consumption was introduced as a check variable. The result shows that Natural gas consumption had a negative and insignificant impact on economic growth while Natural gas price and gasoline motor fuel consumption had positive and significant impact on economic growth. This implies that consumption of natural gas is not a significant determinant of economic growth among oil-producing countries in Africa. This may be attributed to the poor infrastructural development and lack of effective energy policies aimed at driving the transportation of liquified natural gas to households and manufacturing firms. In contrast, the price of natural gas and gasoline motor fuel contributed positively and significantly to the growth of the economies of oil-producing countries in Africa. This result may be due to revenue generated from export of liquified natural gas to Europe and some countries in Africa and the increase consumption of gasoline motor fuel in sub-Saharan Africa. As prices increases, revenue and foreign exchange also increases in the exporting countries. Based on these findings and conclusion, the study recommended: an improve infrastructure for natural gas utilization, stable and competitive price of natural gas and building of local capacity for refining of gasoline motor fuel as possible measures to achieving sustainable economic growth in gas producing countries in Africa

An Analysis of the Impact of Sectoral Allocation of Deposit Money Bank’s Credit on Manufacturing Sector Performance in Nigeria

This paper used descriptive statistics, Phillips-Perron unit root test, cointegration test and error correction mechanism to explore impact Deposit Money Bank (DMBs) credit on manufacturing sector performance in Nigeria between 1981 and 2019. The unit root test results show that all the variables are stationary at first difference. It was observed from the Johansen cointegration test that the variables have long run relationship. This provides the pre-condition for fitting the error correction model. The parsimonious ECM results revealed deposit money banks’ credit to the manufacturing sector impacted positively on the performance of manufacturing sector. This implies that increase in deposit money banks’ credit stimulated output in the sector. It further observed from the results that iinterest rate was significant in explaining changes in the performance of the manufacturing sector output. This confirms the critical role of cost of funds in investment decision and the performance of the economy at large. Inflation rate was also significant in explaining changes in the performance of the manufacturing sector. Given the findings, the study recommended that there should be increase in banks’ funding to the manufacturing sector businesses to boost production and economic growth in the country

Does International Trade Reduce Unemployment? Empirical Evidence from Nigeria

This paper investigates the effect of international trade on unemployment in Nigeria. To achieve the purpose of examining how trade has created employment in Nigeria, international trade was disaggregated into: oil import, oil export, non-oil import, non-oil export, trade openness, foreign direct investment share of real gross domestic product and real effective exchange rate while job creation was proxied by unemployment rate in Nigeria. Data on international trade defined in terms of: oil import, oil export, non-oil export, non-oil import, Foreign direct investment share of economic growth and real effective exchange rate and unemployment rate were sourced from the World Bank Development indicators. The trade variables mentioned above were regressed against unemployment rate using the Autoregressive and Distributed Lag (ARDL) approach. The findings indicate that in the short run international trade impacted on unemployment more whereas in the long run, international trade impacted on unemployment marginally. Based on these findings, the study suggests: policies geared toward increase in non-oil export, reduction in oil import, review of FDI inflow policies and trade liberalization as possible ways of creating jobs and improving the performance of the Nigerian economy