The Impact of National Security on Foreign Direct Investment in Nigeria: An Empirical Analysis

Kidnappings, killings, and corruption seem to be the political cum economic trinity bedeviling Nigeria today. The current state of insecurity and bombings especially in the Northern part of Nigeria has posed serious challenges to the peace and stability of Nigeria macroeconomic environment. The Nation has not only suffered colossal loss in terms of infrastructure, properties and viable human lives but also economic sabotage which leads to the displacement of foreign direct investment. Given the key role which foreign direct investment plays in most developing economies especially as a catalyst for economic growth, it was therefore imperative to examine the relationship between FDI and National security.  Thus, this paper investigates the impact of National security on foreign direct investment covering the period of 1980 to 2009 employing Least Squares technique. Defense and Security Vote (DSV) was used as a proxy for National security. The findings reveal a negative nexus between FDI and National security. It was recommended that strong policy stance most be taken to address the state of insecurity in Nigeria (and other developing countries) so as to attract more foreign direct investment essential for economic growth and development. Keywords: National Security, FDI, and GD

The Diseconomies of Oil Spill in Niger Delta of Nigeria

Oil is the highest contributor to the growth and development of the Nigerian economy. However the attendant pollution of the environment and the subsequent erosion of the means of livelihood of oil producing communities are anti sustainable development. This paper examines the problems of oil spillage, its implication for ecosystem, and calls for the design of appropriate policies to sustain environmental protection and the economic growth and development of oil producing communities

DOES THE RELATIONSHIP BETWEEN GOVERNMENT EXPENDITURE AND ECONOMIC GROWTH FOLLOW WAGNER’S LAW IN NIGERIA?

While previous studies to test Wagner’s hypothesis for Nigeria usedtotal government expenditure, this paper in addition to total government expenditure used adisaggregated government expenditure data from 1961 - 2007, specifically; expenditure ongeneral administration and that of community and social services to determine the specificgovernment expenditure that economic growth may have significant impact on. Economicconditions and policies change implying that it is not only economic growth that can affectgovernment expenditure hence the inclusion of other fiscal policy variable and politicalfreedom to augment the functional form of Wagner’s law. All the variables used were found tobe I(1) and long run relationship exist between the dependent and the independent variablesexcept in the case where only GDP was used as the independent variable. Wagner’s hypothesisdoes not hold in all the estimations rather Keynesian hypothesis was validated in all theestimation. Elasticity estimates and Granger causality results are in agreement

FISCAL DEFICITS AND STOCK PRICES IN NIGERIA: AN EMPIRICAL EVIDENCE

This study investigates the effects of fiscal deficits on stock prices in Nigeria, utilizing vector auto-regression and error-correction mechanisms (ECM) techniques with annual time series data spanning 1984-2010. The results reveal, amongst others, that fiscal deficit is negatively related to stock prices. Therefore, to maintain a robust stock market, the authorities are expected to de-emphasize monetary financing of fiscal deficits in preference for bond-financing, since the former not only promotes the problems of inflation in the economy, but also depresses stock prices as well. Such efforts should be complemented by mounting more vigorous awareness campaigns to help sensitize and attract more investors into the stock market

The impact of Tax reform on Federal revenue generation in Nigeria. Journal of policy and development studies

Abstract The main objective of this paper is to ascertain the impact of tax reforms on tax revenue generation in Nigeria. Specifically, an attempt will be made to verify the relationship between federally collected revenue and specific tax revenue generation sources. The study employed annual time series data spanning the years . The various income taxes were used as a proxy for tax reforms. By way of preliminary test, the Augmented Dickey fuller was employed to test for unit root. All the time series variables were non-stationary at levels but became stationary after first differencing. The Johansen's co-integration test shows that long-run relationship exists between tax reform and federally collected revenue in Nigeria. The Granger causality shows that custom and excise Duties and value-added Tax granger causes federally collected revenue . The Partial Stock Adjustment Model shows that the various income taxes were statistically significant and have positive relationship with federally collected revenue. The coefficient of the Error correction model showed that 66.2940 percent of the deviation of federally collected revenue from its long-run equilibrium value can be reconciled yearly. On the whole, our study shows that tax reform by improving the tax system and reducing tax burden enhances the ability of the government to generate more revenue. The study proposed that VAT and CED provides good tax handle for the government to maximize its revenue. However, to maximize revenue from these taxes, their administration should be improved upon with effort directed towards reducing tax avoidance and evasion