An Appraisal of the Nigeria Sovereign Investment Authority

This study seek to critically appraise the operations of the Nigeria Sovereign Investment Authority (NSIA) since its establishment by the Nigeria Sovereign Investment Authority Act (2011), trying to x-ray its performance in terms of its operational outlook and target outlay. Due to paucity of data, this study employed the descriptive analytical technique. The NSIA was structured into three windows to include; the Stabilization Fund, The Future Generation Fund and the Nigeria infrastructure Fund, each of these funds has its specific investment and development objectives. NSIA’s asset allocation is based on long-term risk and return objectives, diversified across various asset classes. These classes are segmented into growth drivers, inflation hedges and deflation hedges. Keywords: Nigeria Sovereign Investment Authority, Stabilization Fund, The Future Generation Fund and the Nigeria infrastructure Fund

A Critical Review of the Effect of the Global Financial Melt-Down on the Nigerian Banking Sector

This study seeks to examine the effects of the global financial crisis on the Nigerian banking sector in retrospect.  The shock waves that emanated from the global financial melt-down that started in 2007 are yet to fully dissipate. Beginning from the mortgage to stock market in the United States of America it quickly spread to other sectors and other European economies and then a global phenomenon. The effect of the financial crisis left the collapse of many industries in its trail, while the banking sector was the worst hit. To mitigate further collapse of the Nigerian banking sector, the Central bank of Nigeria (CBN) took several steps during and after the global financial crisis. These measures have repositioned the Nigerian banking sector and restored greater degree of public confidence. It was recommended among others that Nigerian banks should depend less on public sector deposits and diversify their products to become more robust in their operations. Key words: Bank Consolidation, Financial melt-down, recapitalization

Empirical Review of Globalization and Nigerian Economic Performance

Globalization has increased the integration and interdependence of economies among one another. It has come to be seen as a panacea for improved economic growth. This is made possible by an integrated global market marked by improved technology, investment and competition. This study thus, examines the performance of Nigeria in the global economy. The study made use of five explanatory variables to test for the performance of the economy in the global market. Unit root test using the Augmented Dickey Fuller test was conducted to test for stationarity among variables employed. The Johansen Co-integration test was also employed to test for long run equilibrium relationship among the variables while the Granger Causality test was conducted so as to ascertain the causal relationship between variables. The ECM was also conducted. The paper concluded that globalization can stimulate the rise in economic growth of a country. Nigeria however has not benefitted enough from globalization owing to her over dependence on oil export as the major source of earning, thereby neglecting other potential sectors in the economy. The paper proffered diversification of the economy from crude oil, prudent government spending and conducive and enabling environment for both the growth of other important sectors and improved FDI as strategies to give Nigeria a stand in the competitive global market. Keywords: Globalization, Economic Integration, Degree of Openness, Convergence and Economic Growth

Green Economy and Its Implications for Economic Growth in Nigeria

This paper examines the Green economy framework and its implications for sustainable growth and development of the Nigerian economy. Employing the political economy approach this study explores relevant concepts, identifying the core meaning of the concept of sustainable development. Few sectors were analyzed in terms of green growth policies to see what economic benefits Nigeria stands to gain transiting into the green economy. The study revealed that the green economy holds lots of opportunities especially for those sectors studied. Recommendations to enable Nigeria transit into green economy includes that institutional capacity is needed to integrate environmental policies with economic policies among others. Key words: Green economy, Green growth, sustainable development, environment, ecosystem, institutional capacity, gross domestic product, deforestation and over grazing

Monetary Policy and Nigeria’S Quest for Import-Substitution Industrialization

This study examines the impact of monetary policy variables on industrialization via import substitution strategy in Nigeria from 1981 – 2012. The deregulation of the foreign exchange market in Nigeria was with the aim of stimulating export and industrialization through import substitution. However, it turned out that Nigeria had become more import dependent than ever. We specified four explanatory variables for this study based on theoretical underpinnings. We sought to establish a relationship between the explanatory variables and industrial output. The Johansen trace test revealed that there was one cointegrating equation. The estimated error correction mechanism (ECM) revealed that 53 per cent of disequilibrium in industrial-GDP is corrected for in the long run. Keywords: Monetary policy, exchange rate, industrialization, imports substitution industrialization

Sustainable Development in the Nigerian Housing Sector: Challenges and Opportunities of Achieving the Green Initiative

For some years now, the world has been experiencing negative changes in the climatic conditions. In order to overcome the problems of climatic change, the entire world met in Brazil in 2010 to find a way out. This has resulted into the green initiative intended to save the planet from human destruction. One of the cardinal principles of the Green initiative and Green Economy is Sustainable Development. To achieve this, Greening the Housing Sector has become imperative. This is because the housing sector has been identified as one of the major sources of GHG emissions. Amidst global calls and campaign for environmental protection and sustainability through greening initiatives coupled with concerted efforts at bridging the millions of housing demand-supply gaps in Nigeria, both private and public sector operators in the nation’s built environment should consider and encourage green building as a global standard with immense benefits. Keywords: Green Economy, Green Housing, Sustainable Development Green Initiative, Housing Sector

Empirical Analysis of Money Demand Stability in Nigeria

The main focus of this study is to identify the variables influencing the demand for money in Nigeria; and to ascertain the stability of money demand in Nigeria. Related theories and empirical researches in this area were reviewed in order to ensure the relevance of variables under study and possible expectation of their relationship with money - demand in Nigeria. Four explanatory variables were specified for this study based on theoretical underpinning. Stationarity test were conducted and all variables were stationary at first difference, with two cointegrating equations after using the Johansen Cointegration test. The error correction model (ECM) was rightly signed and revealed a recovery rate of 18 percent. It was also recommended among others that the monetary policy strategy of the CBN should be structured to deal with the growing challenges posed by financial innovations. The stability test revealed that M2 money demand in Nigeria is stable using both CUSUM and CUSUMSQ at 5 percent critical lines. Keywords: Money-Demand, Non-Bank Financial Institutions, Speculative demand for money, Liquidity, cointegration.

Stock Market Performance and Economic Growth in Nigeria: An Empirical Appraisal

This study is aimed at determining the role and contributions of the Nigerian stock market to national income in Nigeria from 1981 – 2012. This is necessitated by the concern as to whether a lean stock market like we have in Nigeria with an average of 240 quoted companies (within the period of study) with an average market capitalisation of N4 billion can significantly exact the much expected positive impact on total output. Four explanatory variables were specified for this study based on theoretical underpinning. Stationarity test were conducted using Augmented Dickey Fuller unit root test, while Johansen Cointegration test was used to estimate the long-run equilibrium relationship among the variables. The Granger causality test was conducted in order to establish causal relationship, while the model was estimated using the error correction model (ECM). Key words: Nigerian stock exchange, stock market performance, economic growth, capital formation, and cointegration

RELATING OIL PRICE DIFFERENTIALS TO INDUSTRIAL PRODUCTION IN NIGERIA: BVAR APPROACH

In the protracted quest for the diversification of the Nigerian economy, empirical conclusions have been made that oil price shocks are negatively related to output growth. Many studies on oil price –macroeconomy relationship in Nigera have been conducted without considering the net differential of the oil price change which contributed in muddling up the results.In a bid to overcome this, we employed the EGARCH model to extricate only the increases in oil price and used the conditional volatility measure in the Bayesian Vector Autoregression(BVAR)model based on monthly data (1986M1 to 2015M12) for industrial production index and selected macroeconomic variables in Nigeria. Our results show that shock to oil price causes a rise in industrial production which may indicate that positive oil price increase is favourable to output growth in Nigeria. Therefore, the authorities should take advantage of the increased revenue accruing from rise in oil price to diversify into industrial and manufacturing productions and further stimulate industrial capacity growth through appropriate policies

ECONOMIC RESTRUCTURING: AN IMPERATIVE FOR DIVERSIFICATION OF THE NIGERIAN ECONOMY

Economic diversification is an essentially necessary option to overcoming pending dangers of mono-culture practice. As a mono-culture economy, Nigeria is susceptible to the vicissitude of  market forces, because if the single product of the economy is no longer viable, or no more valuable to consolidated consumers, the single-product economy is at threat of recession (fall in gross domestic product). Unfortunately, the Nigeria political economy has been structured to have heavily centralized its economic resources making it impossible for active economic participation of interest groups (including professionals). Where the Federal government has more than 50 percent of accrued revenue, there is obviously no incentive to devolve economic resource control, so long as crude oil continues to provide the needed revenue. This study adopted the political economy methodology. Findings of the study revealed that devolution of economic resources (economic restructuring) is a sine qua non for diversification of the Nigerian economy for sustainable growth and development