MKAR JOURNAL OF ECONOMICS AND DEVELOPMENT

Impact of Financial Savings Mobilization on Economic Growth in Nigeria

Erhuotor E. E, Maikudi K. A. , Mwolchet P. S., Henery E. A. — Mon, 19 Oct 2026 00:00:00 +0000

This study examined the impact of financial savings mobilization on economic growth in Nigeria using annual time series data ranging from 1981 to 2020. Applying the Persaran, Shin and Smith (2001) Autoregressive Distributed Lag (ARDL) model, the study found that credit to private sector (CPS), ratio of financial savings mobilization (FSM) and interest rate (INT) has a long and short run impact on economic growth in Nigeria. Findings also revealed that credit to private sector (CPS), ratio of financial savings mobilization (FSM) and interest rate (INT) were statistically insignificant on economic growth. Further, the ARDL regression result shows that the coefficients of credit to private sector (CPS), were positive to economic growth (RGDP) while the coefficients of financial savings mobilization (FSM) and interest rate (INT) were negative to economic growth (RGDP). In view of the findings, the study recommends that there should be an increase in volume of credit to the private sector. The monetary authorities should use their credit guidelines to direct and/ or mandate banks to channel their financial mobilized savings

Ownership Structure and the Performance of Oil and Gas Firms in Nigeria

Iormom, B. I, Avanger, J. A, Bakle, S. K, Alopu, J. I. — Mon, 19 Oct 2026 00:00:00 +0000

This study was motivated by the fact that the oil and gas sector has continued to be a key driver of the Nigerian economy contributing about 90% of her foreign exchange earnings. Firms in this sector are observed to be very vulnerable to agency crisis as they have a large pool of free cash flows that could easily be misapplied to the exclusive benefits of managers. This research work therefore studied the effects of ownership structure on the performance of oil and gas firms in Nigeria from 2008 to 2020 using panel regression technique. The results of the panel regression revealed that ownership structure captured by managerial shareholding, ownership concentration and institutional ownership had a positive and significant relationship with firm performance. In view of the findings, the study recommended that concentrated shareholding, managerial ownership and institutional ownership should be encouraged for enhanced performance of listed oil and gas firms in Nigeria.

Effect of Foreign Aid on Welfare in the ECOWAS region

Wushibba, B, Chinshaka, A. S, Kanang, A. A — Mon, 14 Nov 2022 00:00:00 +0000

West Africa had been faced with a series of challenges such as droughts, famine, and armed violence that had resulted in the displacement of the people with adverse consequences on economic growth, and welfare. These challenges had led to foreign aid inflow in the form of official development assistance (ODA). This study used panel data for the period 1997 to 2020 and was analyzed using difference generalized method of moment (DIFF GMM). It was found that foreign aid had positive effect that was statistically significant on welfare (measured as per capita income) in Francophone and landlocked countries of West Africa but statistically insignificant for the whole region. The study recommends the setting up of a regional aid policy that will serve as a convergence criterion to ensure improvement in welfare.

Capital structure and the Performance of Deposit Money Banks in Nigeria: Evidence from Panel Data Analysis

Ateata, K.A., Ipevnor, T.T, Ajam, P.N, Elaigwu, O.S, Eya, C.I. — Mon, 14 Nov 2022 00:00:00 +0000

This study investigated the impact of capital structure on the performance of deposit money banks in Nigeria using secondary data from statistical bulletin of the Central Bank of Nigeria for the period 2016–2021. To evaluate the stationarity of the data, the study employed econometric techniques involving the assessment of the unit root features of the data utilizing the common unit and individual unit root procedures. A unit root test revealed that the data were stationary at first difference and at first-order of integration [I (1)]. Cointegrating equation of fully modified ordinary least square (FMOLS) analysis used to account for serial correlation effects and endogeneity in the regressors resulting from the presence of a cointegrating relationship. The research demonstrates a statistically significant positive correlation between equity (EQT) and return on asset (ROA). Long term debt (LTD) was also positively associated with return on asset, although this association was not statistically significant (p>0.05). The relationship between short-term debt (STD) and ROA is positive but not statistically significant (p>0.05). There is no statistically significant relationship between firm size (FMS) and return on asset (ROA) (p>0.05). It was determined that the degree of profitability of the company under consideration will depend on management skill in managing the firm's capital structure. It was suggested, among other things, that bank management find a useful way to employ this capital structure in its operations because, as the study's findings demonstrate, its beneficial impact on the bank's performance is negligible.

Effect of Working Capital Management on the Profitability of listed Consumer Goods Companies in Nigeria

Ipevnor, J. I, Ipevnor, T. T, Ngutswen, C. T. — Mon, 14 Nov 2022 00:00:00 +0000

This study examined the effect of working capital on profitability of listed consumer goods companies in Nigeria. Using data obtained from the financial statement of audited annual reports and accounts of the five (5) consumer goods companies for the period of (2015–2020). The Hausman test for randomization of panel result indicated that fixed effect regression was preferred. The Wald coefficient restriction test further showed that fixed effect was better than pooled OLS for investigating the relationship in the model of the study. Regression results indicates that account payable (APP) has a negative effect on profitability proxied by return on asset (ROA) of listed consumer goods companies in Nigeria and the effect is statistically significant. Inventory turnover (INV) has a negative effect on return on asset (ROA) of listed consumer goods companies in Nigeria Exchange Group and the effect is statistically significant. Account receivable (ACR) has a positive effect on return on asset (ROA) of listed consumer goods companies in Nigeria and the effect is not statistically significant. Interest rate (INT) was positively signed but not statistically significant. It was concluded that that, working capital management proxies are determinants of profitability of listed consumer goods companies in Nigeria. It was recommended among others that the management of listed consumer goods companies should strive to reduce the accounts payable period to enhance profitability and create value for the shareholders. This could earn trade discount and confidence from suppliers.

Re-Examining the Impact of Public Health Expenditure on Longevity: The Critical Role of Human Capital

Hyembe, M. M, Haanongon, S. S. — Mon, 14 Nov 2022 00:00:00 +0000

This study examines the impact of public health expenditure on life expectancy controlling for human capital. The ADF nonstationarity test and the ADRL bound test for cointegration were applied on annual based time series data from 1981-2019. Both the F- and t-statistic of the bound test for cointegration indicated long run relationship among the variables considered in the model. From the regression results, the lagged value of LE is positive and significant in explaining current year changes in LE. The lagged values of PHE and GDP also had positive and significant coefficients revealing similar effects on LE in the short run. HC also reveal a positive and significant impact positively on LE in the current year. However, the contribution of the variables considered in the model to life expectancy is rather marginal or weak. The ECT_t-1 coefficient suggests that LE adjusts to long run equilibrium through the channels of lagged values of LE, PHE, GDP and HC at the speed of 5%. The coefficient is negative and statistically significant as required by economic theory. However, the ECT_t-1coefficient shows that the speed of adjustment to long run equilibrium due to short run distortions is quite slow. The study recommends measures to improve public health services coverage such as increased public health expenditure on health to the desired limit of 15% of the yearly budgets and enhanced human capital development

Analysis of the Effects of Government Expenditure on Employment Generation in Nigeria

Abimiku Alanu C., Dalis Dabwor T, Otalu John A. — Mon, 14 Nov 2022 00:00:00 +0000

Government spending pattern is not only projected to guarantee stabilization but also to spur economic growth and expand employment opportunities. Therefore, the study examines the impact of government expenditure on unemployment in Nigeria. The study made use of time series data from 1985 to 2020. The study also employed Autoregressive Distributed Lag for the analysis of data collected and some diagnostic tests were also carried out such as serial correlation, heteroscedasticity test and stability test. The study found out that government expenditure has a negative and insignificant impact on unemployment in Nigeria. Also, interest rate has a positive and insignificant effect on unemployment in Nigeria whereas, trade openness has a negative and significant impact on unemployment in Nigeria. The study therefore recommended that there should be proper monitoring of government expenditure in order to reduce unemployment in Nigeria and interest rate should be reduced to a digit figure so as to spur real sector and thereby increase job opportunity in Nigeria.

Impact and Challenges of N-Power Scheme (2016-2018) in Ibadan North Local Government Area, Oyo State, Nigeria

Akeem Olalekan Ayub, Abdulrahman Ibrahim — Mon, 14 Nov 2022 00:00:00 +0000

Npower is an empowerment scheme implemented to address the prevalent youth unemployment and restiveness as well as to alleviate poverty. The study was conducted in Ibadan North Local Government of Oyo State to examine the impacts and challenges of the Npower scheme on the beneficiaries. The theoretical framework adopted for the study is Structural Functionalism. A total of 250 Npower beneficiaries were selected through purposive sampling technique; however, the analysis was based on 249 questionnaires retrieved and validated. Statistical Package for Social Sciences, version 25 was used in the analysis of data and presented in frequency tables and simple percentages. Findings revealed that the programme had a relative impact on the beneficiaries’ livelihoods, including the provision of easy access to basic daily needs, catering for relatives, and the ability to enrol for further studies. Findings revealed that delays in payments, and lack of continuity, among others, were challenges associated with the programme. Therefore, the study recommends continuity of the programme by successive governments and quick payments of monthly stipends, among other.

Tax Incentives and Investment Performance of Listed Non-Financial Companies in Nigeria

Gwa Patrick D, Tsegba Ioraver N, Zayol Patrick I — Mon, 14 Nov 2022 00:00:00 +0000

This study examined the relationship between investment allowance, tax exemption and investment performance of listed non-financial companies in Nigeria. The study adopted ex-post facto research design. The population comprised of 110 listed non-financial companies in Nigeria as at 31st December, 2020. The sample included twenty listed non-financial companies in Nigeria which were selected based on specified criteria. Data for the research work were sourced from the published financial statements of the sampled companies as well as from the Central Bank of Nigeria (CBN) annual bulletin including the World Bank Development Indicators Database. Based on the empirical results, tax exemption has a positive significant relationship with investment performance of listed non-financial companies in Nigeria. On the other hand, investment allowance shows a positive but insignificant relationship with investment performance of listed non-financial companies in Nigeria. The study concluded that tax incentives have a positive significant relationship with investment performance of listed non-financial companies in Nigeria. This result is supported by the agency theory. The study recommended that managers of the sampled companies should intensify their efforts in the area of gaining more tax exemptions from the relevant tax authorities. This is because increased exemptions from tax may cause significant improvement in the investment performance of listed non-financial companies in Nigeria. This would motivate companies to invest into products and services that are innovative and could lead to inventing new ideas and strategies that may lead to the creation of new and improved goods and services that will contribute towards solving the ever evolving and dynamic customer taste and preference.

Effect of Agency Costs on Financial Performance of Listed Companies in Nigeria

Awuhe, P. O, Tsegba, I. N, Aondoakaa, E.K. — Mon, 14 Nov 2022 00:00:00 +0000

This study investigated the effect of agency costs proxied by monitoring costs, bonding costs, and residual loss on financial performance as well as a comparative examination of listed financial and non-financial companies in Nigeria, using the ex-post facto research design. The study used a sample of 10 financial and 10 non-financial companies from a population of 157companies listed on the NGX from 2011 to 2020 using the filtering and random methods. Data were sourced from annual reports of the sampled companies and MachameRatios. Panel regression estimate was used for data analysis and findings show that monitoring costs and residual loss exert a significant positive effect, while bonding cost insignificantly and adversely affect the financial performance of listed financial companies, of listed financial companies in Nigeria. These results support the agency theory which calls for close monitoring of entrenched managers. The study further established that while significant differences exists in the effect of monitoring costs and residual loss on financial performance, a non-significant difference exist in the effect of bonding cost on financial performance of listed financial and non-financial companies in Nigeria. The study, therefore, recommended that companies in the financial sector should prioritize agency cost in the form of monitoring cost and residual loss as they exert significant effect on financial performance. The study also recommended that companies in the non-financial sector should prioritize agency cost in the form of bonding cost as it exerts significant influence on financial performance in the companies.

Impact of Taxation on Economic Growth of Nigeria from (1994 - 2022)

Ipevnor, J. M. (PhD), Dr. (Mrs.) Saka, Rose, Ogbaji, I. John — Mon, 14 Nov 2022 00:00:00 +0000

The study ascertained the impact of taxation on economic growth of Nigeria from (2001 - 2012) based on availability of data. To achieve the objective of the study, relevant secondary data were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin, Federal Inland Revenue Service (FIRS). The data collected were analyzed using relevant econometric models such as Augmented Dickey Fuller Test, Johansen Co-integration test and error correction model. The result indicates that value added tax (VAT) has a positive and significant effect on gross domestic product (GDP) [β₁ = 3.770208, S(b₁) = 0.33084, t₁ = 11.3960]. Company income tax (CIT) has a negative effect on gross domestic product (GDP) and the effect is statistically significant [β₂ = -0.849829, S(b₂) = 0.20206, t₂ = -4.20579]. petroleum profit tax (PPT) has a positive and significant effect on gross domestic product [β₃ = 0.516294, S(b₃) = 0.12858, t₃ = 4.01538] and is in line with our a priori expectation. education tax (EDT) indicate that education tax has a positive effect on gross domestic product [β₄ = 0.131208, S(b₄) = 0.27384, t₄ = 0.47914], and the effect is not statistically significant. The error-correction parameters E_t-1has the expected negative sign. The negative sign (-0.771387) of the error term implies that the system corrected its previous disequilibrium period due to negative shocks in one period at an adjustment speed of 77.14 percent annually. It was concluded that the value-added tax, the petroleum profit tax, and the education tax all have a beneficial impact on economic growth over the long term. It was recommended among others that to experience a positive and significant effect of company income tax on economic growth, the tax regulations and processes should be simplified and streamlined to make compliance easier for companies. Complex tax laws and procedures often discourage businesses and hinder economic growth.

THE IMPULSE RESPONSE OF AGRICULTURAL PERFORMANCE TO CLIMATE VARIABILITY AND ENERGY CONSUMPTION IN NIGERIA.

Achiuior, T. B. — Mon, 14 Nov 2022 00:00:00 +0000

The study employs Ordinary Least Squares (OLS) equations and Annual time series data from 1960 to 2017 were obtained from the Central Bank of Nigeria’s Statistics Bulletin 2017. Having carried out the necessary pre- and post-diagnostic tests, the results reveal that, at period five (5) of shocks in annual rainfall (CLM) in Nigeria, 57,137,222 response of agricultural output to innovations in CLM is noted. That is to say, 57,137,222 response of agricultural output to innovations in CLM is noted in period five (5) aftershocks. At the same stated period of shocks in Carbon Dioxide (CO₂), Nitric Oxide (N₂O), Methane (CH₄) and Chlorofluorocarbons (CFCs) in Nigeria, respective responses of agricultural output to innovations in these energy-enhanced atmospheric gases stands at: 159,543.4%, 2,378,401%, -4,526,529%, 2,296,124%. This same trend of responses repeat itself in period ten (10), clearly separating CFCs and CLM as having the dominant influence on the Nigeria’s agriculture. This reveals to the minds that, the Nigeria’s agriculture is highly sensitive to energy use (especially fossil fuel resources that enhances the emission of chlorofluorocarbons) and climate (i.e., annual rainfall).

CLIMATE CHANGE, FORCED MIGRATION AND BANDITRY IN CONTEMPORARY AFRICA: PATHWAYS, GOVERNANCE GAPS AND POLICY RESPONSES

Achiuior, T. B., Ngongho, B. A. — Mon, 14 Nov 2022 00:00:00 +0000

Climate change is intensifying environmental pressures on livelihoods across parts of Africa, where rain-fed agriculture, pastoralism, fisheries and other climate-sensitive activities support large populations. Drought, irregular rainfall, floods, heat stress and land degradation can reduce household income, undermine food security and contribute to mobility. In settings where public institutions are weak, land and water access is contested, livelihoods are insecure and armed actors operate with limited accountability, these pressures may interact with displacement and violent insecurity. This article examines the pathways connecting climate change, forced migration and banditry in contemporary Africa, with particular attention to the Sahel and Nigeria. It adopts a conceptual, narrative-review approach, synthesising pre-2022 climate assessments, migration research and scholarship on climate-conflict relationships. The analysis distinguishes environmental stress as a risk multiplier from direct explanations of criminal violence: climate change does not automatically produce migration, banditry or armed conflict. Outcomes depend on exposure, livelihood sensitivity, adaptive capacity, mobility options, political marginalisation, land governance, security provision and the political economy of violence. The article argues that treating mobile pastoralists or displaced people as inherently criminal is analytically inaccurate and can aggravate exclusion. Effective responses should combine climate adaptation, livelihood protection, negotiated land and water governance, accountable security, support for displaced communities, youth employment and cross-border cooperation. Long-term mitigation is also necessary, but emissions reduction alone cannot address immediate insecurity. The article concludes that climate-sensitive peacebuilding requires integrated policies that address both environmental vulnerability and the institutions that shape access to resources, protection and economic opportunity.