Manipulation of transfer prices by multi-national companies in Nigeria

Background: Transfer pricing manipulation diminishes revenue generation by the host countries. The results of the investigations in the literature show divergence to the extent of the impact of transfer pricing on economic growth in both the low- and high-tax countries, especially as this type of investigation is still scanty in the literature. Aim: The study examines the effect of transfer pricing manipulation on economic growth in Nigeria. Setting: Multi-national companies in Nigeria. Methods: The auto-regressive distributed lag (ARDL) approach was applied to data from Nigeria between 1986 and 2019. Results: The findings reveal an insignificant relationship between economic growth and explanatory variables such as transfer pricing manipulation, unemployment rate, government revenue and trade openness. The result also shows a significant negative relationship between the exchange rate and economic growth. Conclusion: The study recommends that the government should implement proper monitoring of multinational companies to check their day-to-day transaction activities. This may help the government to generate more revenue, and serves as an avenue to create more employment opportunities. Contribution: In this study an important aspect is indicated in that multinational companies often misuse revenue to gain undeserved profits, rendering unnecessary costs to market and rendering other companies less competitive, as well as exploiting buyers and consumers. This is an important loophole that law- and policymakers as well as governments should pay attention to and act against

Green Growth and Environmental Sustainability in Nigeria

The purpose of this paper is to examine the long-run equilibrium between green growth and some environmental variables like deforestation, energy depletion and carbon dioxide ) emissions in Nigeria from 1980 to 2015. To examine these long-run linkages, the study adopted the autoregressive distributive lag (ARDL) bound testing approach to cointegration. The bound testing approach shows an evidence of a negative long-run relationship between carbon dioxide emission and environmental depletion and renewable energy which stand as the proxy for green growth variable. Inversely, a positive long-run relationship exists between green growth variable and deforestation. Generally, this paper submits that efficient investment in green growth technologies and policies in Nigeria will assist to ensure a sustainable environment. Keywords: Green growth, Sustainable environment, Carbon emission, Energy depletion, Nigeria JEL Classifications: Q56, Q5