Government Expenditures and Macroeconomic Indicators in Nigeria

This study examined the impact of government expenditure on selected macroeconomic variables from 1983 to 2017. Secondary data sourced from Central Bank of Nigeria Statistical Bulletin of various issues was used. The researcher used Gross Domestic Products and Unemployment Rate as the proxy of the dependent variables while government expenditures on education; health; and agriculture constituted the proxies for the independent variable. The analytical technique used was regression analysis of the ordinary least square (OLS) based on the Auto Regressive Distributed Lag used to analyze the data. The result revealed that government expenditure in the agricultural sector has negative and insignificant relationship with gross domestic product while government expenditure in the educational and health sectors have positive and significant relationship with Gross Domestic Products. Government expenditure in agriculture has a negative relationship with Unemployment Rate while government expenditure in education and health sectors has positive and significant relationship with Unemployment Rate. Based on our findings therefore, the paper recommended that governments direct financial expenditures on agriculture should be reduced gradually until it is eliminated; the government should sustain her expenditures in the other sectors but must work on the root causes of what happens in the educational system of the country. Keywords: Government Expenditures, Macroeconomic Variables, Gross Domestic Products, Unemployment Rate, Agricultural Sector, Educational Sector, Health Sector. DOI: 10.7176/JESD/10-14-06 Publication date:July 31st 202

Human Capital Investment and Economic Growth in Nigeria: An Econometrics Analysis, 1981-2019

This study investigated the effect of human capital investment on economic growth in Nigeria within the periods 1981-2019. Time series data covering these periods of study were obtained and analyzed using Ordinary Least Square method. The data were further subjected to unit root test using the Augmented Dickey-Fuller (ADF) test, and a test of co-integration was performed using Johansen rank based test. The result of the ADF test showed that the variables were all integrated at order one, and the Johansen co-integration test confirmed the existence of at least a co-integrating equation. The researchers went further in estimation an Error Correction Model (ECM) aimed at reconciling the short run deviations from the long run equilibrium. The test results showed that capital and recurrent expenditures on education and health have not impacted significantly on the growth of the Nigerian economy both in the short run as well as the long run periods. Recommendations proffered include; government should intensify investments in education and health sectors in Nigeria to improve quality of services; government should embark on a general upgrade of the health sector in Nigeria as well as provision of adequate educational facilities in public schools. DOI: 10.7176/JESD/11-18-05 Publication date:September 30th 202

CREDIT RISK MANAGEMENT AND FINANCIAL PERFORMANCE: A STUDY OFSELECTED DEPOSIT MONEY BANKS IN NIGERIA

The study on the credit risk management and financial performance of deposit money banks in Nigeria, 2004 – 2022, aimed to understand the relationship between non-performing loans, total loans, bank’s capital as the independent variables and return on investments, return on equity as the dependent variables. Financial statement of five commercial banks in Nigeria were obtained between 2004 and 2022. Panel regression analysis was used to analyse the time series data. The analysis covered the descriptive analysis, unit root analysis, pooled regression analysis, random effect, fixed effects as well as hausman tests. The post estimation tests included serial correlation analysis and heteroskedasticity tests. The study found that non-performing loans, total loans have negative and significant relationship with ROE but positive and significant relationship with ROI. Bank capital was also found to have positive and significant relationship with financial performance of deposit money banks in Nigeria. The study recommended, amongst others, that deposit money banks must ensure that the loans they disburse perform and also, they should device efficient systems of monitoring their total loan disbursements