Deposit Money Banks and Financing of Small and Medium Scale Enterprises in Nigeria

Nigeria, as well known, is a country flowing with rich human and natural resources. Yet, like a twist of fortune, a good number of our citizens are living below the agreeable WHO human standard (i.e. in sub-human condition) and in abject poverty. The deposit money banks whose duty it is to assist financially the small and medium scale enterprises (SMEs) that serves as pivotal instrument of reducing abject poverty and enhancing economic growth in Nigeria could just be characterized as generally unstable and unreliable, in meeting the needs of these medium and small scale enterprises.  Many scholars have carried out a lot of research to proffer some possible solutions to areas that are dysfunctional in the deposit money banks in Nigeria especially in the area of meeting the borrowing needs of SMEs. This paper does not attempt to discuss the cause or effects of the inability of this system to meet the above mentioned needs. Its main objective is to sensitize the attention of every reader to the present state of these financial institutions which serves as a touchstone to other aspects of the Nigerian economy by describing and analyzing the efficiency of these institutions with regard to providing resources to meet the borrowing needs of medium and small scale enterprises. To attain this, data were collected from the statistical bulletin of Central Bank of Nigeria ranging from 1995-2012. The paper employed the descriptive method. Findings from the estimation shows that deposit money banks in Nigeria have been lacking in this aspect. As a result, recommendations were made for its stability and sustainability such that the monetary authority should initiate policies that would redirect the channel of deposit money banks’ credits so as to meet the borrowing needs of at least 65% of the medium and small scale enterprises in the economy. This will help to boost economic activities within the country because lack of capital retards investment. Key Words: Deposit Money Banks, Small and Medium Enterprises, Developmen

The scramble for African mining by world economic powers: Concern for Africa’s

Abstract. Mining has become a very lucrative business for the global economic powers. On the African continent, this seemingly opportunity for developing African countries like Nigeria, Ghana and South Africa that enjoy huge mineral deposits comes with its repercussions in relation to their respective economic performances as they open their doors to selected top economies of the world. This paper therefore looks at the general mining environment on the continent as a whole, narrowed down to specialized countries of Africa on coal mining, crude oil and gold mining with emphasis in the South African, Nigerian and Ghanaian context. Using descriptive research design and the correlation method of analysis, this conceptual paper identifies that with the Africa mining industry is becoming more scrambled for and this has left wavering relationship with the economic growth on the African continent despite the improvements on the economies of the scramblers. As recommendation however, the study suggested that the various governments in Africa should review some obsolete negotiation terms which are against the modern realities in the mining sector so as not to be overtaken by events as they open their doors to foreign investors in the mining sectors.Keywords. Africa, Mining, Mineral Products, Correlation, Economy, Scramble.JEL. F66, F10, F13

Economic Diversification in Nigeria in the Face of Dwindling Oil Revenue

There is no doubt that petroleum (crude oil) has contributed substantially to Nigerian revenue since its discovery in 1956 and more especially, since 1970 when its price was on the upward trend. However, it is a known fact across the globe that for a country to attain growth and development, its economy has to be diversified. Diversification does not occur in a vacuum. Mono-economy needs to give way to the productive development of various sectors of the economy. Following the supply and demand limitation of major importers from the country, which brought about the fall in the price of oil by more than 40% since June 2014 when it was $115 a barrel, which now is below$70, after five years of stability, it is a well-known fact that Nigeria's continuous large earnings or revenue from this sector will be impossible. As a matter of fact, there is an urgent need for the Nigerian government to begin looking into diversification of various sectors of the economy so as to attain solid economic growth. The Neo-Classical Growth Model, some empirical researches and secondary data collected and analyzed support our call for the diversification of Nigerian economy with an urgent need to decentralizing concentration on mono-crude oil -economy. These studies have shown that there exists a positive relationship between economic growth in Nigeria and diversification of other sectors because, when there were proper management of human resources, huge investment and concentration on agriculture, Nigerian economy was recorded to be healthy and vibrant. In those golden years, agriculture offered over 70% of Nigeria's teaming population job opportunities. Descriptive statistical method likewise was employed in this paper. This paper however, attempted to seek out how diversification of the economy will enhance stable and viable economic growth in Nigeria. Keywords: Economic diversification, Oil Revenue, Agriculture, Human Resources Managemen

Non-oil export and economic growth in Nigeria: A disaggregated analysis

Abctract. This study examined the role of non-oil exports in the economic growth of Nigeria. It determined how five selected independent variables (non-oil commodities); like vegetables, hides and skins; rubber and plastic export, and textile and textile articles contributed to Nigeria’s GDP (Dependent Variable). Using quarterly times series data from 2010 to 2017, the ARDL result showed that hides and skins; rubber and plastic export, and textile and textile article shave positive but insignificant effect on real GDP which was used as a proxy for economic growth. Secondly, the result also shows that there is bi-directional flow of causality between the real GDP and the non-oil export items. The study, among other things therefore recommends that government should diversify their economy, by taking a deeper look in to de-emphasizing mono-economy system, pay more attention to heterogeneous economy and endeavour to provide intermittently courses, capacity building, training and retraining in industries, and agriculture for professional development. This will catalyse the non-oil sector output to export levels for the betterment of the Nigerian economy.Keywords. Non-oil Export, Economic Growth, Nigeria, Disaggregated Analysis.JEL. O11, E20, Q13, C30

International trade and economic growth in Nigeria: An auto regressive and distributed LAG bound test approach

Abstract. This paper empirically investigated the impact of international trade on economic growth in Nigeria during the period 1981 – 2017. To achieve the purpose of this research, we estimated real GDP as a function of imports, exports, gross fixed capital formation, unemployment rates and exchange rate. The methods used are: the Autoregressive Distributed Lag (ARDL) techniques, Augmented Dickey- Fuller unit root test, Johansen co-integration test, error correction technique, and the Granger causality test. The empirical results revealed that: all the variables used are integrated of the same order, 1(1) except for unemployment and gross fixed capital formation which were integrated of order 1(0); also, the bound test revealed that there is evidence of the existence of a long run relationship among the variables used; while the causality test revealed that exports granger causes economic growth in Nigeria. Findings revealed that there is short run impact of export trade on economic growth. Also, causality runs from imports and exports to economic growth in Nigeria. Based on these findings, the study therefore recommends among other things that: the government should improve on her trade contents and concentrate on the exportation of labour intensive products and as a result, improve economic performance.Keywords. Economic growth, Exports, Factor endowment, Imports, ARDL.JEL. F14, F43

Expanding Female Capacity for Poverty Reduction: Strategies for Sustainable Development in Africa

Africa has been struggling for many decades to reduce poverty. But there is every indication that the rate of poverty has not slowed down. The average poverty rate for Sub-Saharan Africa alone stands at about 41%. Hence, this study investigated the extent to which female capacity in the African continent has been expanded for poverty reduction for the sample period of 1990-2018 based on the Sen’s Capability theory of poverty. In other to achieve the objectives of the study, poverty headcount ratio at $1.90 a day for Africa, a proxy measure for poverty on the continent is specified as a function of female labor force participation rate as percentage of total female labor force (as a proxy for income generated by females in Africa), school enrollment (secondary) for females in Africa and life expectancy at birth for females in Africa. The method of autoregressive and distributed lag model analysis was used to analyze the time series data. Findings revealed that school enrollment for females in Africa (SCH) showed negative and significant impact on poverty headcount ratio in Africa in the long run. As recommendation however, effective women education policy interventions should be implemented by the leaders in education sector in Africa to mitigate against the increasing rate of poverty suffered in Africa. Keywords: Poverty, Women, Education, Health and Employment JEL Code: O15. D6, J24, K12 DOI: 10.7176/JESD/11-20-02 Publication date:October 31st 202

IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN NIGERIA

Following the rising spate of the debt profile of Nigeria and the fluctuating trend in her macroeconomic indicators, this study critically examined the impact of external debt on economic growth in Nigeria in the period, 1985 to 2019 by examining the causality between external debt stock and economic growth in Nigeria and identify the impact of external debt servicing on economic growth in Nigeria. The study employed the Harrod-Domar theory of economic growth and the Two-Gap model as theoretical framework to explain the impact of external debt on economic growth in Nigeria. The study made use of secondary data sourced from World Development Indicator 2019. Ordinary least square (OLS) technique was adopted for the regression analysis. The data were analyzed with the aid of e-view software (9th edition). The result showed that external debt has negative and insignificant impact on economic growth in Nigeria. Therefore, the study recommended the use of tax revenue to finance public deficit, encouragement of foreign direct investment and domestic investment through improvement in infrastructural facilities and an enabling environment devoid of political and economic instability. JEL: E32, E41, F33, F34, F43 Article visualizations

Financial Illiteracy and Cashless System in Nigeria

Despite the huge effort of  Central Bank of Nigeria (CBN) to make cashless economic policy system which was, in no doubt, an instrumental tool designed for the development and growth of the Nigerian economy, there is still much problem of financial illiteracy facing the masses of country on this issue. This paper therefore, examined how financial literacy affects the cashless system in Nigeria since its origin, using Lagos State as a case study. The study employed survey method. Questionnaires were administered to 400 participants. Descriptive statistics was used in analysing the data. The Chi-square and the F-distribution done with the stipulations of ANOVA and SPSS showed that the impact of financial illiteracy on the cashless policy system is significant on the Nigerian economy. Hence, the study recommended that CBN increases mass education/enlightenment on finance management so that people can achieve the most from the latest development in the cashless system. Key words: Financial Illiteracy, Cashless System, Nigerian Economy, ATM, PO

Effects of Abandoned Highway Construction Project in the Nigerian Economy: A Case Study of Enugu - Onitsha Highway Road

Despite the fact that Nigeria is the giant of Africa and has a lot of rich human and natural resources, many of its roads or highways are in terrible conditions, and they have become death traps and nightmares for the citizens.  Hence, the main objective of this study is to assess or determine the effects of abandoned road construction projects in Nigeria using Enugu-Onitsha highway road as a case study. Structured questionnaires were distributed to the regular road users (drivers) such as Peace Mass Transport, God Is Good, Onitsha South Transport, GUO Transport drivers who use the road daily for the past five years.  Descriptive statistics was used to analyze the data. The study also used Cost Benefit Analysis theory (CBA) to drive home its message. The study found out that the abandoned Onitsha-Enugu highway road has economically affected many Nigerians, more especially the daily users. It has disrupted a lot of economic activities and has also resulted to lots of mishaps such as constant accidents, arm robberies and losses of lives. The findings also showed that economic life of the people, especially longevity and lifestyle, has been affected. Hence, to drastically reduce this negative effect, the study therefore recommended that government should award contracts to those contractors that have strong financial base for their projects, and should make every effort to supervise the work for the safety of the citizens, and when there is a change in administration, previously commenced project should not be abandoned. Keywords: Economic impact, Project Construction, Project Abandonment, Cost Benefit Analysis (CBA), Enugu, Onitsha