Department of Economics

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    Liquidity Management and Commercial Banks’ Profitability in Nigeria
    (Research Journal of Finance and Accounting, 2011) Olabode, Oluwayinka
    This study examined liquidity management and commercial banks’ profitability in Nigeria. The major aims of the study were to find empirical evidence of the degree to which effective liquidity management affects profitability in commercial banks and how commercial banks can enhance their liquidity and profitability positions. Considering the nature of the survey, quantitative methods of research were applied. In attempt to achieve the objectives of the study, several findings were made through the analysis of both the structured and unstructured questionnaire on the management of banks and the financial reports of the sampled banks. The data obtained from the Primary and Secondary sources were analyzed through collection, sorting and grouping of the data in tables of percentages and frequency distribution. We formulated a hypothesis, which were statistically tested through Pearson correlation data analysis. Findings from the testing of this hypothesis indicate that there is significant relationship between liquidity and profitability. That means profitability in commercial banks is significantly influenced by liquidity and vice versa. The study concluded that for the success of operations and survival, commercial banks should not compromise efficient and effective liquidity management and that both illiquidity and excess liquidity are "financial diseases" that can easily erode the profit base of a bank as they affect bank's attempt to attain high profitability-level. Finally the study recommends): The Central Bank should be encourage maintaining a flexible Minimum Monetary Policy [MPR] or discount rate so as to enable the commercial banks take advantage of the alternative measures of meeting the unexpected withdrawal demands, and reduce the tendency of maintaining excess idle cash at expense of profitability, the monetary authority should as a matter of urgency encourage and legitimate the use of credit cards and enforce cheque usage for huge amounts in the day to day business transaction, finally, interested researchers should dwell on the same area of this research extensively using a wider data and area of coverage
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    Health as a Component of Human Capital Formation: Does it Matter for the Growth of the Nigerian Economy?
    (Canadian Social Science, 2011) Dauda, Rasaki
    This paper tries to examine whether health as a component of human capital matters for the growth of the Nigerian economy. The study employs annual time series data from 1970 to 2009. The unit root test result indicates that all the variables except one were stationary at first difference, which also implies a I(1) while the result of the cointegration analysis reveals six cointegrating equations. Accordingly, the study employs the error correction mechanism which helps to determine the short run dynamics of the cointegrated variables towards their equilibrium. The results of the study show that health expenditure is positive and statistically significant but the coefficients of the second and third lags are negative and statistically significant. Infant mortality is significant and has negative coefficient. Life expectancy is positive and statistically significant at the first difference and difference of the second lag. The control variables such as gross fixed capital formation, education expenditure and labour force were all significant. The ECM variable is negative, less than one in absolute term and statistically significant with the coefficient of 40%, implying that the speed of adjustment or convergence to equilibrium is 40%. The model demonstrates a good fit. This is evident from the adjusted R2 of 97%, showing that the explanatory power of the model is strong with the independent variables explaining 97 percent of variation in gross domestic product. The Durbin-Watson statistic of 3.15 falls within the acceptable range of no autocorrelation. The main conclusion from the study is that health as a component of human capital formation matters for the growth of the Nigerian economy. The policy implication of the study is that the Nigerian government should in addition to increasing expenditure on health put in place mechanism to monitor how effectively such funds are utilized for the purposes for which they are meant. All efforts as a matter of fact should also be geared towards combating the menace of communicable diseases such as HIV/ AIDS, malaria and tuberculosis in order to improve the health status of the population, reduce infant mortality and improve life expectancy.
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    Impact of Prepayment Metering Arrangement on Electricity Consumption in Nigeria: Case Study of the Redemption Camp, Mowe, Ogun State and Osogbo Town, Osun State
    (2012) Olatokunbo, Oluwayemisi
    This study analyses the impact of prepayment metering arrangement in the Redeemed Christian Church of God, Redemption Camp, Mowe, and Osogbo in Osun State, between March and December 2011. The prepaid meter was introduced mainly to achieve projected energy saving, particularly for electric lighting. Studieshave shown a reduction in electricity consumption which is achieved with an increase in the tariff price of the electricity. This study investigates the comparative advantage of the prepaid system over the conventional billing method using primary data for the prepaid meter and billing/ conventional meter in order to understand the preference of Nigerian households as a whole. The stratified sampling method was used to sample the different categories of households while data collected were analysed using descriptive and econometric methods. Also, the descriptive approach was used to shed more light on the nature of consumer responses. The econometric estimate was obtained using an Ordinary Least Square Multiple Regressions to analyse the energy consumption patterns of the consumer. 63 64 Enagyrechnology andInfrastructureforDeyelopment In the analysis, behaviours of the households were captured to examine the efficiency of electricity usage. The results of the analysis indicate that the adoption of the prepaid meter mechanism along with a high tariff structure reduced electricity consumption in the household The study suggests, one, the need for Nigeria to accept prepaid meter as a means of conserving energy, and, two, to take another look at the tariff structure of the electricity sector.
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    Composition of Public Expenditure and Economic Growth in Nigeria
    (Scholarlink Research Institute Journals, 2012) Adewara, Sunday Olabisi
    We explore the relationship between the composition of public expenditure and economic growth in Nigeria. Government expenditure is expected to be means of reducing the negative impacts of market failure on the economy. However, allocations of public expenditure with lack of consideration for the urgent needs of the country may engender greater distortion in the economy which may be detrimental to growth. To this end, we have analyzed the relationship between public expenditure compositions from 1960 to 2008 on economic growth using the vector Autoregressive models (VAR). The finding shows that expenditure on education has failed to enhance economic growth due to the high rate of rent seeking in the country as well as the growing rate of unemployment. We also noted that expenditure on health and agriculture should be encourage due to their positive contributions to growth while further studies is necessary to identify empirically why public expenditure on water and education are negatively related with growth
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    The Scourge of HIV/AIDS Pandemic and Economic Performance: The Case of Nigeria
    (Global Journal of Human Social Science, 2012) Dauda, Rasaki
    The early 1980s marked the beginning of a new devastating chapter in the global epidemic history when the first case of HIV/AIDS was reported in the United States. In Nigeria, the case of the disease was first reported in 1986, and since then the pandemic has continued to spread, moving from a concentrated epidemic to a generalized one, with its concomitant effects on the economic performance of the country. This study analyzed the impact of the scourge of HIV/AIDS menace on the macroeconomic outcomes in Nigeria. Engle Granger Two-Stage Estimation Procedure was used to determine the long-run relationship between real GDP and the explanatory variables, which included HIV/AIDS. The time series data utilized covered the period 1990 to 2010. Two models were estimated. The first model made use of HIV prevalence while the second model adopted the log of number of persons living with HIV/AIDS in Nigeria. Having found that the variables were cointegrated, OLS estimations were conducted on both models. The result of model one showed that HIV prevalence has negative but statistically insignificant impact on real GDP. Model two’s result revealed that HIV/AIDS has negative and statistically significant impact on the growth of the economy of Nigeria in the long-run. A 100 percent increase in the number of persons living with the pandemic led to a 19 percent reduction in the level of real GDP. The adjusted R2 of 97 percent demonstrated a good fit and a strong explanatory power of the model. The conclusion drawn from the study based on the result of model two was that HIV/AIDS has significant and negative impact on the economic growth of Nigeria. The implication of this is that the macroeconomic impact of the disease in Nigeria will be noticeable and significant as the disease progresses. Therefore, substantial and sincere efforts should be geared towards combating it to avert its negative consequences on the growth of the nation’s economy, mortality and morbidity rates, average life expectance, health status of the population, level of poverty as well as development. In addition, the attainment of the millennium development goals (MGDs) in the country may remain a mirage if the spread of the disease is not halted
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    Billing Methods and Electricity Consumption: Tale of Two Nigerian Cities
    (Nigerian Journal of Economic and Social Studies, 2013) Olatokunbo, Oluwayemisi
    Prepaid meters are a relatively new innovation adopted by the Power Holding Company of Nigeria as part of its power supply programme for energy saving. It is a mechanism that changes the attitudes of users towards electricity usage. Studies have shown that a prepaid meter reduces electricity consumption. This study investigates the comparative advantage of the prepaid system over the conventional billing method using a survey technique to find out the preference of the households in Nigeria as a whole. Empirical evidence from the study shows that the adoption of the prepaid meter mechanism will reduce the electricity consumption of users. The study suggests the introduction and acceptance of the prepaid meter as a measure for the conservation of energy.
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    Can Non-Oil Exports boost Agriculture Sector Performance in Nigeria? A Tale for Oil Independency
    (2013) Adeleke, Oluwayemisi Kadijat
    The study examines the effect of non-oil export on the agricultural sector performance in Nigerian economy using empirical evidence and modern research analysis. The bulk of non- oil export of Nigeria comes from agriculture and pre-processed products. Hence, non-oil export from perspective of efficiency-seeking indicates that non-oil export always aim at taking advantage of poor-efficient production condition and boost the productive edge of resources. There is a general believe that non-oil exports commodities has nothing to do with sectoral growth in Nigeria, this role is therefore the major focus of this study. Modern econometric analysis is used to validate if there is any relationship between non-oil export and sectoral performance, we also conducted unit root test to detect the risk of non stationarity of any of the variables involve in the model specified. Having tested for unit root, the paper also considers cointegration test and a parsimonious result of the least square estimate is presented. Lastly, a causality analysis of the relevant variables was undertaken in order to verify the relevance of non-oil export on growth in Nigeria. Interestingly, non-oil export commodities fail to enhance growth of the economy in recent findings, while agriculture, openness and exports promote growth in both the short and long run in our dear country
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    The Impact of Selected Economic Indicators on Crime in Nigeria
    (Redeemer's University Journal of Management and Social Sciences, 2013) Olatokunbo, Oluwayemisi
    The study was designed to analyse the effects of socio economic determinants of crime in Nigeria by estimating the impact of poverty, unemployment and internal security on crime series from 1981 — 2006. The co — integration and parsimonious error correction model was used to examine the short and long run relationship between the variables. Also Granger causality tests was undertaken to determine the direction of causality between crime and the variables. The analysis provided evidence of a long run relationship among crime, poverty, unemployment and internal security/ and a unidirectional causality existed between crime and poverty and internal security, there seemed to be no causal relationship between crime and unemployment. The study recommended implementation/ monitoring of the existing programmes/ policies geared towards reducing poverty and unemployment while also increasing protective services.
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    A Comparative Study of Consumers' Billing Methods and Electricity Consumption in Ogun and Osun State, Nigeria
    (Redeemer's University Journal of Management and Social Sciences, 2013) Olatokunbo, Oluwayemisi
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    Nigeria Ailing Industries and the Capital Structure Theory: A Need for Concern
    (Australian Journal of Business and Management Research, 2013-01-11) Ajeigbe, Omowumi Monisola
    It is necessary to identify that what are factors contribute to the firms’ capital structure composition in its operation. Hence the present study was undertaken with the objective of finding out the relationship between capital structure determinants and ailing manufacturing firms of the listed companies in Nigeria. Using a multiple regression analysis, ailing manufacturing companies in Nigeria stock exchange market was examined for the period of 2005-2010. The final sample consists of 14 manufacturing companies. In this study, dependent variable that is, leverage level of the companies, is measured by long-term debt ratio, short term debt ratio and total debt ratio. Capital structure determinants (independent variables) are measured by capital intensity, tangibility, profitability, firm size and non- debt tax shield. Findings showed that the direction of the explanatory variables such as tangibility, profitability, firm size and non-debt tax shields with total debt largely consistent with the explanations of trade-off theory and prove past empirical findings also
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    Aids-Orphanhood and Human Capital Development in Nigeria
    (Department of Sociology and Social Work, Faculty of Social Sciences, University of Oradea., 2013-07) Dauda, Rasaki
    This study employs the descriptive method of analysis and growth rate to determine the effect of high number of AIDS Orphans on human capital development in Nigeria. The available facts reviewed and the result of the analysis revealed that the growth rate of the number of orphans, occasioned by the pandemic, has continued to be positive since 1990 till date. AIDS Orphans as a percentage of children within the 0 and 14 has been on the increase, from 0.03%, in 1990, to 2.1%, in 2000, and has extended further to 3.78%, in 2009. Enrolment figures, as well as the rates of school dropouts among the orphans and vulnerable children, clearly indicate that the negative impact of increase in AIDS Orphans on human capital would be substantial if this trend remains unchecked. Therefore, it is imperative for governments at all levels to set better policy measures to support these orphans. Such measures could focus on free and compulsory education, shelter, clothing, medical services and food. Communities, which provide safety nets for the children should be empowered and encouraged with proper financial assistance. In addition, there’s a clear need for specific legislation against the growing trend of all forms of exploitations and child-abuse, particularly on girls
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    Human Capital and Manufacturing Productivity in Nigeria
    (Redeemer’s University Journal of Management and Social Sciences, 2014) Dauda, Rasaki
    This study examined the impact of human capital on manufacturing productivity in Nigeria. It employed the time series data, covering the period 1981-2012. The time series properties of the variables were examined using the Phillips-Perron (PP) tests for unit roots and co-integration analysis. Thereafter, error correction estimation technique was applied to achieve the objective of the study. The findings were mixed. Health expenditure had positive and significant impact on manufacturing productivity while education expenditure affected manufacturing productivity negatively and significantly. A percentage rise in health and education expenditures led to approximately 0.02% increase and 0.01% decline in manufacturing productivity respectively,. The coefficient of error correction variable was rightly signed and statistically significant. The speed of convergence to equilibrium was 46%. The adjusted R-squared stood at 88% an indication of a strong explanatory power of the model. The policy implication of the study is that government should increase expenditure on health facilities while expenditure on education should be strictly monitored.
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    The Shape of Environmental Kuznets Curve in the Analysis of Environmental Quality
    (Redeemer’s University Journal of Management and Social Studies, 2015) Dauda, Rasaki
    Studies on Environmental Kuznets Curve (EKC) which attempt to investigate the relationship between environmental degradation (pollution/pollutants like CO2 emissions) and income per capita employ CO2 emissions as proxy for Environmental Quality(EQ). They, however, fail to capture the inverse relationship that exists between EQ and CO2 emissions. The present paper examines the implications of using CO2 emissions as a measure of EQ in the analysis of EKC shape. Theoretical expositions reveal that with EQ as regress and or EQ on the vertical axis of the growth-emission relationship, the hypothesized inverted-U EKC will transform into U-shaped Environmental Quality Kuznets Curve (EQKC) with similar pollution-income effects. Using CO2 emission as a proxy for EQ in the quadratic model of dynamic Ordinary Least Square (OLS) technique and employing relevant dataset of Nigeria over the period 1971-2013, this study discovered a U-shaped EKC and the alternative inverted-U shaped EQKC, in contrast to the hypothesized shapes. These findings confirm the existence of lower EQ in Nigeria particularly in the 21st century. The study therefore recommends the formulation and implementation of economic and environmental policies capable of reducing pollution emissions, particularly in the transport, power, and oil and gas sectors of the country.
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    Population Dynamics and Economic Outcomes in West Africa
    (2015-12) Dauda, Rasaki
    In recent times, there appears to have been a resurgence in research investigating the effects of population dynamics on economic outcomes in different regions of the world. This has further been inspired by the performance of some Asian economies, where the demographic transition has been observed to play a prominent role. Most African countries are beginning to experience declining fertility and mortality rates. This is expected to enhance economic outcomes. It is against this backdrop that the present study attempts to examine the effect of population dynamics (declining fertility and mortality, growth of population and labour force) on economic growth in West Africa over the period 1970 to 2011. A panel data modelling approach was employed, using fixed effects and random effects estimation techniques. The findings revealed that the demographic transition is beginning to yield positive and significant effects on growth in the region, while some negative effect through mortality remains. Specifically, growth rates of fertility, labour force and population enhanced economic growth, while infant mortality growth lowered the level of output in West Africa. To maximize the gains from the demographic transition, the study recommends, among other things, increased investment in education and training of the younger population to enhance their productivity
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