This study looks at how taxes affect Nigeria's economic development. A time series dataset from 1996 to 2021 was estimated using a short run Autoregressive Distributed Lag [ARDL(2,1,0,0,0)]. The dataset was collected from FIRS. The... more
This study looks at how taxes affect Nigeria's economic development. A time series dataset from 1996 to 2021 was estimated using a short run Autoregressive Distributed Lag [ARDL(2,1,0,0,0)]. The dataset was collected from FIRS. The impacts of Value Added Tax (VAT), Company Income Tax (CIT), Personal Income Tax (PIT), and Petroleum Profit Tax (PPT) on Nigeria's Gross Domestic Product were particularly examined in this study. The findings showed that while personal income tax and value added tax have a short-term negative impact on economic growth, corporation income had a considerable beneficial impact on Nigeria's economic expansion. In addition, petroleum profit tax has positive but insignificant effect on economic growth in the long run. Therefore, striking the right balance between tax rates, economic incentives and compliance is crucial. The Laffer curve theory provides valuable insights into finding the optimal tax rate that maximizes revenue. This can be done balancing the incentives for economic activity against the burden of taxation, finding the optimal rate varies depending on various economic factors and the taxpayer behaviour. The study suggests that offering targeted tax incentive for investments, innovation, and entrepreneurship. These incentives can include tax breaks for specific sectors, research and development activities, and job creation initiatives.
Research Interests:
This study aims to understand the link between the economic situation in Nigeria and the uprising of mental health issues. To achieve this objective, existing qualitative literature on economic situations and mental health was examined.... more
This study aims to understand the link between the economic situation in Nigeria and the uprising of mental health issues. To achieve this objective, existing qualitative literature on economic situations and mental health was examined. In this paper, economic crisis and mental health as a concept will be discussed with a focus on depression, anxiety, and suicide. Previous studies reveal that effects of economic crisis include joblessness, increased workload, debts, and reduced wages which may be significant stressors with a deleterious effect on mental health. Based on the review, the following themes were identified: unemployment and its impact on mental health, debts, and their effect on mental health, and the study recommended that massive investment be made in Mental Health Services and policies that foster economic growth, employment creation and entrepreneurship should be implemented.
Research Interests:
This study explores the effect of government expenditure on Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. A short run Autogressive Distributed Lag [ARDL(2,1,0,0,)] was estimated with data from Central Bank of Nigeria ranging... more
This study explores the effect of government expenditure on Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. A short run Autogressive Distributed Lag [ARDL(2,1,0,0,)] was estimated with data from Central Bank of Nigeria ranging from 1981 to 2021. The results reveal that government expenditure has no significant effect on MSMEs growth (p > 0.05); MSMEs growth predicted on its lags (1 and 2) is significant but unstable (p < 0.05%); inflation rate adversely affect MSMEs (p < 0.05%); and credit to private section has positive significant effect on MSMEs. This study recommends the review of the linkages between government spending designed to enhance MSMEs and the target beneficiaries. Government spending towards skills development and technology adoption among current and potential players in the MSMEs subsector should be encouraged. The effects of government, through both monetary and fiscal policies, to stabilize prices of goods and services should be intensified. In addition, the Central Bank of Nigeria should consider reducing the Monetary Policy Rate (MPR) or establish a special vehicle financial organization for granting investment fund to MSMEs at a reduced cost with friendly documentation requirements.
Research Interests:
This study looks at how taxes affect Nigeria's economic development. A time series dataset from 1996 to 2021 was estimated using a short run Autoregressive Distributed Lag [ARDL(2,1,0,0,0)]. The dataset was collected from FIRS. The... more
This study looks at how taxes affect Nigeria's economic development. A time series dataset from 1996 to 2021 was estimated using a short run Autoregressive Distributed Lag [ARDL(2,1,0,0,0)]. The dataset was collected from FIRS. The impacts of Value Added Tax (VAT), Company Income Tax (CIT), Personal Income Tax (PIT), and Petroleum Profit Tax (PPT) on Nigeria's Gross Domestic Product were particularly examined in this study. The findings showed that while personal income tax and value added tax have a short-term negative impact on economic growth, corporation income had a considerable beneficial impact on Nigeria's economic expansion. In addition, petroleum profit tax has positive but insignificant effect on economic growth in the long run. Therefore, striking the right balance between tax rates, economic incentives and compliance is crucial. The Laffer curve theory provides valuable insights into finding the optimal tax rate that maximizes revenue. This can be done balancing the incentives for economic activity against the burden of taxation, finding the optimal rate varies depending on various economic factors and the taxpayer behaviour. The study suggests that offering targeted tax incentive for investments, innovation, and entrepreneurship. These incentives can include tax breaks for specific sectors, research and development activities, and job creation initiatives.
Research Interests:
Abstract This study examines the relationship between population growth and economic growth in Nigeria from 1981 to 2021 using the ARDL model. The results reveal that population growth has a positive impact on economic growth, but... more
Abstract
This study examines the relationship between population
growth and economic growth in Nigeria from 1981 to 2021
using the ARDL model. The results reveal that population
growth has a positive impact on economic growth, but this
effect is statistically insignificant. This suggests that while a
larger population can potentially contribute to economic
expansion by providing a larger labor force and market, it
does not significantly drive economic growth. Moreover, the
research shows that the labor force participation rate also
positively influences economic growth but lacks statistical
significance. This implies that an active workforce is
beneficial but not a dominant factor in driving economic
growth. Conversely, the study finds a significant and
negative correlation between the unemployment rate and
economic growth, highlighting the detrimental impact of
high unemployment on the economy. Based on these
findings, policymakers are advised to prioritize labor market
policies that target unemployment reduction and promote job
creation. Additionally, monitoring and managing population
growth trends through family planning programs are
essential for sustainable economic development.
Diversifying the economy beyond natural resources,
investing in education and vocational training, and focusing
on infrastructure development are further recommended
strategies to foster economic growth in Nigeria. In summary,
while population growth plays a role, addressing
unemployment and labor market dynamics is crucial for long-term economic sustainability.
This study examines the relationship between population
growth and economic growth in Nigeria from 1981 to 2021
using the ARDL model. The results reveal that population
growth has a positive impact on economic growth, but this
effect is statistically insignificant. This suggests that while a
larger population can potentially contribute to economic
expansion by providing a larger labor force and market, it
does not significantly drive economic growth. Moreover, the
research shows that the labor force participation rate also
positively influences economic growth but lacks statistical
significance. This implies that an active workforce is
beneficial but not a dominant factor in driving economic
growth. Conversely, the study finds a significant and
negative correlation between the unemployment rate and
economic growth, highlighting the detrimental impact of
high unemployment on the economy. Based on these
findings, policymakers are advised to prioritize labor market
policies that target unemployment reduction and promote job
creation. Additionally, monitoring and managing population
growth trends through family planning programs are
essential for sustainable economic development.
Diversifying the economy beyond natural resources,
investing in education and vocational training, and focusing
on infrastructure development are further recommended
strategies to foster economic growth in Nigeria. In summary,
while population growth plays a role, addressing
unemployment and labor market dynamics is crucial for long-term economic sustainability.
Research Interests:
There have been growing concerns about the persistent rise in the size of the informal sector given the troubles and difficulties it presents the government in keeping an actual record of all economic activities in the state. This study... more
There have been growing concerns about the persistent rise in the size of the informal sector given the troubles and difficulties it presents the government in keeping an actual record of all economic activities in the state. This study investigated the reason behind this continuous rise and how this continuous rise has affected the management of informal activities in Ikwo Local Government. Adopting the Binary Logistics Regression (BLR) model, the study analysed a cross sectional dataset obtained from 200 informal sector operators. Based on the result of the empirical findings, the study discovered that government policies was a major factor that pushed individuals into the informal sector and that the persistent rise in the size informal sector was a strong factor that have made managing the sector difficult for the government. Therefore, the study established that if the government can reduce its tax rates, cut down a bit on the bureaucratic protocols in the formal sector, many informal operators will be encouraged to operate in the formal sector and thus contribute maximally to the overall economy of the state.
Research Interests:
This paper employs an ARDL model to examine the economic impact of transportation infrastructure investment in Nigeria using time series data from 1980 to 2021. By analysing the relationships among variables like transportation... more
This paper employs an ARDL model to examine the economic impact of transportation infrastructure investment in Nigeria using time series data from 1980 to 2021. By analysing the relationships among variables like transportation investment, economic growth (measured by real GDP), employment rate, government transport spending, and foreign direct investment (FDI), the study evaluates both short-term and long-term effects. The findings reveal a consistent and positive correlation between transportation infrastructure investment and economic growth. This influence persists over time, indicating the enduring impact of such investment on the economy. The study identifies the employment rate, government transport spending, and FDI as crucial determinants of Nigeria's economic growth. These factors also serve as pathways through which transportation investment bolsters economic development. In conclusion, the research highlights the pivotal role of transportation infrastructure investment in driving economic growth in Nigeria. Policymakers are urged to prioritise sustained investment in this sector to stimulate growth, job creation, and overall prosperity. The study underscores the significance of transportation infrastructure in Nigeria's developmental journey and underscores the need for strategic planning and continued support in this area.