Informal Self-Employment and Poverty Alleviation: Empirical Evidence from Motorcycle Taxi Riders in Nigeria

This study examines the role of an urban informal transport sub-sector; the motorcycle taxis (popularly called ‘okada’), towards the provision of self-employment and income-generating opportunities for many of the urban unemployed in South West Nigeria. The data for the study was generated from a survey of 777 randomly selected auto cycle riders in two cities in Nigeria and the SPSS software aided data analyses. In addition to the descriptive analyses, two econometric models were specified and estimated using the OLS technique. The study revealed that the subsector is a high employer of young school leavers in the accident-prone job of okada riding. Earnings analyses show that 86% of the operators earn above the minimum wage level while human capital variables explain earnings distribution. Implications of the findings of the study point to the need for a more rigorous regulation of the sector to promote safety of operators and passengers. Keywords: Okada, Self-employment, Earnings, Human capital, Motorcycle, Tax

Employment and Economic Growth Nexus in Nigeria

This paper examines the employment and economic growth relationships in the Nigerian economy. A simple model of employment was formulated and estimated using the Ordinary Least Squares technique before and after the time series data used for the study were corrected for non-stationarity using Hodrick-Prescott filter. The result of our econometric analysis shows that a positive and statistically significant relationship exists between employment level and economic growth in Nigeria while a negative relationship was observed between employment growth rate and the GDP growth rate in the economy. We concluded the paper by advocating for increased labour-promoting investment strategies that will help to reduce the high current open unemployment in Nigeria. Key Words: Employment, Economic growth, Employment Elasticity

Social capital and earnings distribution among female micro-entrepreneurs in rural Nigeria

Purpose – The purpose of this paper is to examine the role that social capital plays in the determination and distribution of business earnings of female entrepreneurs in selected rural communities of Ogun State, Nigeria. Design/methodology/approach – The theoretical foundation of social capital and its relationship to informal finance was used in a modified Mincer’s model to examine the distribution of earnings among a sample of members of informal self-help groups. The study relied on a set of secondary data collected from a survey of 275 female micro-entrepreneurs in five rural communities in Ogun State, Nigeria. The analysis of data was done with the use of SPSS computer software while the ordinary least squares regression technique was used in the models’ estimation. Findings – The findings show that though human capital variables contribute to earnings in the usual Mincer’s parlance, social capital as well as neighbourhood effect variables appear much more important determinants. Originality/value – The study quantified and applied five social capital variables in the estimated earnings function and three of these variables were found to be statistically significant in their effects on earnings distribution among the study sample. The study concluded by advocating a multi-disciplinary approach to the study of enterprise development as well as a coordinated approach by the government to promote self-help organisations among women in the rural areas. Keywords Nigeria, Women, Entrepreneurialism, Microeconomics, Rural regions, Social networks Paper type Research pape

Government Expenditure on Human Capital Development: Implications for Economic Growth in Nigeria

This study examines the relationship between human capital development efforts of the Government and economic growth in Nigeria. It seeks to find out the impact of government recurrent and capital expenditures on education and health in Nigeria and their effect on economic growth. The data used for the study are from secondary sources while the augmented Solow model was also adopted. The dependent variable in the model is the level of real output while the explanatory variables are government capital and recurrent expenditures on education and health, gross fixed capital formation and the labour force. The result shows that there exists a positive relationship between government recurrent expenditure on human capital development and the level of real output, while capital expenditure is negatively related to the level of real output. The study recommends appropriate channeling of the nation’s capital expenditure on education and health to promote economic growth. Keywords: Human capital development, Capital and recurrent expenditure, Economic growth JEL Classification: H5, O4

Globalisation and Employment Generation in Nigeria’s Manufacturing Sector (1990-2006)

In this paper, we examined the effects of globalisation on employment level in the manufacturing sector in Nigeria. The manufacturing sector is considered very important as it is expected to be one of the key sectors absorbing the surplus agricultural labour as they are released from the rural sector in the development process. Given the set of reforms embarked upon since the mid-1980’s in Nigeria which are expected to lead to structural and institutional changes such as an enhanced private sector participation in the economy and higher employment generation, among others, we have designed this study to examine the employment effect of globalisation in the Nigerian manufacturing. Using time series data for the period 1990-2006, we have carried out an analysis of the impact of these reform policies, especially those related to globalisation and employment. In addition, we have formulated and estimated an employment model to examine the influence of several globalisation variables used on the employment level. The result of our analysis showed that several employment and globalisation-related variables are positively related in the Nigerian manufacturing. Based on our findings, we have proffered some recommendations that are capable of enhancing the employment level in the manufacturing sector of Nigeria

Micro-Credit and Micro-Enterprise Development: An Analysis of Some Rural-based Enterprises in Nigeria

This paper examines the impact of micro-credit, as administered hy a UNDP-sponsored microji.nance institution (MFI) among some ruralbased enterprises in some selected local government areas in Lagos State, Nigeria. The data for the study were obtained from an enterprise survey of 70 micro-enterprises randomly chosen from the list of emerprises financed by the MFI. The analysis suggests that most of the enterprises that received financial assistance in the form of micro-credit reported improvement in their businesses. Furthermore, a linear probability model was specified and estimated and the results exhibit rharacteristics (both of the enterprises and the emrepreneurs) that were responsible for business success. The paper concludes by calling on national governmellls and imenzational donors to give more support to MF!s to enable them support wealth-creation programmes, especially among the rural poor in Nigeria. It is also of prime importanre that the recent Nigerian microji.nanre policy be assiduously implemellle

FINANCIAL SECTOR REFORMS AND GROWTH OF THE NIGERIAN ECONOMY

The objective of this paper is to assess the financial deepening thesis and its contribution to growth following the era of economic reforms in Nigeria. The study covered a period of thirty-three years (1970-2002), both years inclusive, in the analysis. Based on the standard Solow growth model, we have used the OLS estimation technique and the Error Correction Model to empirically investigate the proposition. In addition, the conventional financial development indicators, we adopted a new set of indicators to measure financial depth/development. The innovation of this study is the inclusion of some variables designed to capture the effects of globalisation on financial development in Nigeria. Our basic results suggest that financial reform policies have been beneficial and as well brought about some costs to the financial development of the economy. While monetary depth, depth of financial intermediation and overall financial depth are indices of benefits; interest rate and financial asset-deepening are indices of costs. In addition, there is no empirical support for financial-development-induced economic growth

Disruption of Lipid Profile and Alteration of Hepatic Lipoprotein Metabolism Gene Expression in Anaemia‐induced Rat

Background and Objective: Iron metabolism in animals is altered by haemolytic anaemia induced by phenylhydrazine (PHZ), however, its effects on lipid metabolism remains elusive. The aim of this study was to examine the impact of anaemia on lipid profiles and lipoprotein metabolism gene expression in rats. Materials and Methods: Fourteen adult male Wistar rats were randomly classified into normal control and anaemia‐induced group (n = 7), respectively. Anaemia was induced in rats by daily administration of PHZ at 10 mg kg–1 for 8 consecutive days, after which blood was collected and liver excised. Lipid profiles of plasma and liver were determined spectrophotometrically while the expression of genes associated with lipid and lipoprotein metabolism was assayed by reverse transcriptase polymerase chain reaction. Results: The induced‐anaemia resulted in hypotriglyceridemia and hypophospholipidosis, with concurrent hypercholesteromia compared to control, respectively. Liver triglycerides, phospholipids, cholesterol were observed to be up‐regulated. Anaemic rats showed a significant (p<0. 05) up‐regulation of the relative expression of hepatic lecithin‐cholesterol acyltransferase (Lcat), paraoxonase‐1 (Pon‐1), aryl hydrocarbon receptor (Ahr), 3‐hydroxy‐3‐ methylglutaryl‐CoA reductase (Hmgcr) and down‐regulation of Scavenger Receptor Class B Type I (Scarb1). Conclusion: The induced‐anaemia alter the expression of lipoprotein metabolizing genes which might be the underlying mechanism of anaemia to disrupt lipid metabolism

Causes and Effects of Industrial Crisis in Nigeria: Some Empirical Clarifications

A harmonious workplace that guarantees satisfaction of workers’ and employers’ aspirations is very essential for enhanced productivity. But when the interest of either or both of the parties involved in industrial relations is unsatisfied, industrial crisis becomes imminent. Using asymmetric information and pluralistic industrial relations theoretical framework, the study established that unions’ intensity, inflation rate and unemployment rate had direct influence on industrial crisis, while wage and measure of trade liberalization had inverse impact on it. The results of the econometric analysis also revealed that industrial crisis exerts negative effects on the level of economic activities in Nigeria, denoting that industrial crisis portends great cost to the economy as a result of reduction in productive hours. Some recommendations such as improvement of minimum wage policy of the government, reduction in inflation and unemployment rates that will help ameliorate the level of industrial crisis, were suggested

Informal Savings and Economic Status of Rural Women in Nigeria

This paper examined the nature and extent of informal savings and credit among women micro-entrepreneurs in five rural communities of Ado-Odo/Ota Local Government Area of Nigeria. It is a household study of 275 women engaged in various rural on-farm and off-farm activities. Our study has shown that informal savings in form of Ajo Esusu in its various forms (fixed fund and rotating fund) is popular among the rural women of Ado-Odo/Ota Local government of Ogun State. Participation rate is as high as 78% while average monthly savings mobilized is about N708,500 from our respondents. In addition to own savings, some of our respondents are able to source credit in form of loans from their savings associations. These savings and credit are applied to various developmemtal and consumption uses. Participants in these informal saving schemes reported improved business development and incomes. Our recommendation that necessary environment be created for the intervention of private, not-for-profit semi-formal financial intermediatries, will go a long way in facilitating domestic credit mobilization, just like Grameen bank in Bangladesh. This initiative, unlike the past corrupt-ridden and ineffective government-operated organizations, is expected to support the activities of informal savungs associations, create a better link with formal financial system and hence, help to improve rural women-owned enterprises, as well as their status in Nigeria