LAFIA JOURNAL OF ECONOMICS AND MANAGEMENT SCIENCES

Macroeconomic Stability and Life Expectancy in Nigeria: A Dynamic Modelling Approach

2024-08-08T03:52:48+00:00

Macroeconomic stability and health status are crucial in developing nations, as they impact citizens’ purchasing power, consumption patterns, and income disparity. Inflation, unemployment, money supply, interest rates, and exchange rates can affect health, leading to economic stress and mental imbalance. In Nigeria, studies show a decrease in health status due to macroeconomic imbalances, deteriorating labour productivity, and healthcare accessibility. However, to juxtapose these threats, the study tests the hypothesis that macroeconomic stability does not have a significant effect on health status in Nigeria. It is on this that the study piques Nigeria’s health status from 1990-2021, focusing on macroeconomic stability and health outcomes using life expectancy, inflation, interest rates, exchange rates, and unemployment rates, sourcing its data from the 2022 World Development Indicators. The study showed that there exists a long-run equilibrium condition between macroeconomic stability and health status was maintained which enacts the appropriate choice of the Autoregressive Distributed Lag, with a response mechanism for short-run equilibrium of 9.2%. The study found that macroeconomic stability in Nigeria is not significantly impacted by inflation, interest, exchange rates, or unemployment rates. However, increased unemployment and depreciated exchange rates significantly impact health outcomes. The study suggests enhancing macroeconomic stability in Nigeria by lowering interest rates, facilitating trade to attract investors, and expanding the labour force for stable economic liberation.

Do Foreign Portfolio Investment Inflows have Stabilizing Effects on the Recipient Economy? Evidence from Nigeria

2024-08-08T03:52:48+00:00

In theory, Foreign Portfolio Investment (FPI) inflows can help stabilize the macroeconomy by increasing the host economy’s foreign exchange reserves, which, in turn, stabilizes the currency and prevents the inflation surge associated with exchange rate depreciation. Based on this theoretical reasoning, the Central Bank of Nigeria (CBN), in the last decade, has encouraged FPI inflows through monetary policy tightening and other incentives, including allowing foreign portfolio investors to hold Open Market Operations (OMO) bills as a means of supporting reserves accretion to stabilize the Naira in the face of declining crude oil receipts. However, FPI is easily reversed, especially when spooked by any threat to economic stability thereby generating instability in the recipient economy. Against this backdrop, this study investigates the impact of money market - based FPI inflows on macroeconomic instability in Nigeria using a five-variable Structural Vector Autoregressive (SVAR) model with quarterly data spanning from 2010Q1 to 2021Q4. The key finding of the study is that net money market-based FPI inflows destabilized the macroeconomic environment of Nigeria due to a significant reversal of the short-term FPI inflows. Accordingly, the study recommends that the CBN should improve on the conduct and efficiency of its policy response to the developments in the global monetary policy stance to forestall short-term FPI inflow reversal and macroeconomic instability.

Central Bank Independence and Inflation in Nigeria

2024-08-08T03:52:48+00:00

In this study, the nexus between Central Bank Independence (CBI) and inflation is examined for the Nigerian economy. Utilising data spanning 1980- 2012, due to data availability, and the Garriga CBI database developed from the Cukierman index, in a Dynamic Ordinary Least Squares and the Error Correction Mechanism, CBI was found to have a significantly negative impact on inflation in both long run and short run dynamic models respectively. Also, for robustness, the components of CBI such as personnel independence, political independence and financial independence were all significantly negative determinants of inflation in Nigeria in the long run. The long-run results further confirmed an inverse nexus between real per capita GDP, political freedom and inflation in Nigeria suggesting that pro-per capita income growth policies are necessarily not inflationary and that institutional quality reduces inflation in Nigeria. CBN reforms and financial depth were found to directly impact inflation in Nigeria. Since the enhancement of CBI dampens inflation in Nigeria, the laws establishing the CBN need to be reevaluated and strengthened to allow for its true independence so that it can perform its main objective of price stability.

Digitalization and Financial Inclusion in Sub-Saharan African Countries

2024-08-08T03:52:48+00:00

Financial inclusion (FI) has gained increased academic and policymaker attention in recent years, however, the effect of digitalization on financial inclusion has not sufficiently been undertaken. Hence, this study examined digitalization's effect on financial inclusion, using Sub-Saharan African countries data, covering the period 2005- 2021. To conduct this study, a panel dataset covering Sub-Saharan African countries was used. Principal Component Analysis (PCA) was used in computing the indicators of the financial index from its sub-indices of access, usage and quality indicators, while the System Generalised Methods of Moments (SysGMM) was used to confirm the effect of digitalization on financial inclusion in Sub-Saharan Africa. The results revealed that there was a long-run significant positive effect of digitalization on consumers’ financial inclusion in SSA. The results also revealed that the coefficient of per capita GDP was significant and positive in the short run but becomes insignificant in the long run. Consequently, digitalization will have a positive effect on consumers’ financial inclusion in SSA countries in the long run, provided good policy implementation are put in place which will culminate in the democratization of financial services, and increased social welfare and economic growth. Also, it will enable the government in reaching the poor people residing in remote areas, and digital literacy will be enhanced. Policy makers and digital financial service providers of the SSA countries can leverage the study’s findings to improve the frontier of financial inclusion in their countries.

Investigating Ethical Consumption among Nigeria Universities Undergraduates

2024-08-08T03:52:48+00:00

This paper investigates ethical consumption behaviour among Nigerian university undergraduates. The specific objectives of this study are to ascertain the extent of gender differences in ethical consumption behaviour and to establish the influence of ethical consumption levers on youth ethical consumption behaviour. Two hypotheses were tested in this study. In this study, the survey research design method was adopted. The population of study are the entire university undergraduates in Bayelsa state while the accessible population are undergraduates from two universities in Bayelsa state. Four hundred copies of a structured questionnaire were conveniently administered to undergraduate students in their respective universities. From the 400 copies administered, 375 were properly filled and found useful. With the aid of SPSS 25, the collated data were analyzed with mean and standard deviation while the formulated hypotheses were tested with inferential statistics t-test, one-way analysis of variance, multiple linear regression and Pearson Correlation coefficient. All the tests were executed at a 5 % level of significance. The result shows a significant difference between male and female in their consumption practices as well as all the levers of ethical consumption except government policies and regulations positively influence ethical consumption. This paper concludes that the gender of a consumer greatly accounts for ethical consumption behaviour prevalent in a society just as there are several factors that influence ethical consumption behaviour. This paper recommends that marketing managers should be conscious of modern consumers' rights in their ethical campaigns while government agencies should be decisive in enforcing ethical standards.

Assessing the Technical Efficiency of Electricity Distribution Companies in Nigeria: The Bootstrapped Data Envelopment Analysis (BDEA) Approach

2024-08-08T03:52:48+00:00

The privatization and support of government for the Nigerian Electricity Distribution Companies (DisCos), were aimed at improving their performance in terms of availability and reliability of electricity supply. This, however, appears to be unrealistic, raising doubts on the technical efficiency of the sector. It is on the basis of this, therefore, that this study assessed the technical efficiency (TE) of Nigerian DisCos and their drivers. Data on the 11 DisCos were obtained from 2014-2021 and analysed by applying the bootstrap technique to the Data Envelopment Analysis (DEA) in order to resolve the stochastic challenge associated with the previous studies, which might be bias hence giving misleading results. The analysis was done in two stages. At stage one, the TE scores were obtained under both constant and variable returns to scale technology assumptions while at stage two, the impact of the environmental factors were measured on TE scores using truncated regression method. The results showed that, on average, DisCos are both technically and scale inefficient. Among others, the second stage result showed that customer metering has significantly negative impact on DisCos’ efficiency while DisCos located in the north are about 4.9% more likely to be inefficient compared to their southern counterparts. However, customer density and subsidy were insignificant. As a consequence, the following recommendations are made: that massive investments be made in technology to automate processes and reduce the operational costs, hence boost technical efficiency. Also, that government halts its subsidy payment pending its proper impact assessment.

Exploratory Moderation of Human Resource Practices and Cultural Diversity on Organizational Effectiveness: A Study of Federal Polytechnic Ede

2024-08-08T03:52:48+00:00

This study examines the complex influences of Human Resource practices in moderating cultural diversity and its relationship with organizational effectiveness. Data from respondents who were randomly chosen from the whole Federal Polytechnic Ede, Osun State workforce was used in a descriptive survey research design. Specifically, a simple random sampling technique was employed in selecting 100 employees of the Federal Polytechnic Ede to determine how human resource practices and cultural diversity influence the success and effectiveness of organizations. A structured questionnaire was used as the main instrument of data collection for the study. Regression analysis was employed to analyse the data collected through the administration of a questionnaire to the respondents. The findings revealed that cultural diversity and organizational effectiveness are significantly positively correlated across a range of performance parameters and that the interaction of cultural diversity and human resource practices contributes significantly to increasing the effectiveness of an organization, which aids its growth potential and productivity. Culturally diverse organizations typically exhibit higher levels of innovation, employee engagement, and enhanced problem-solving skills. The study concludes that by leveraging the combined strengths of effective HR practices and a culturally diverse workforce, organizations can foster a more dynamic, innovative, and effective environment. As a result, the study recommends that managers in organizations should continuously focus on developing and implementing HR practices that promote inclusivity and diversity and adjust strategies as needed to ensure alignment with organizational goals and objectives.

Impact of Food Security on Economic Growth in Nigeria

2024-08-08T03:52:48+00:00

This study looked at the macroeconomic impact of food security on Nigerian economic growth from 1990 to 2023, using data from the National Bureau of Statistics (NBS). The dependent variable was Economic Growth proxied by Gross Domestic Product (GDP), while the independent variable was food security represented by food availability (food production index), food accessibility (price of petroleum), food utilization (calories consumed), and inflation rate (control variable). The study used Ordinary Least Square (OLS) as the methodology of the study. The empirical results showed that apart from food availability (FAV), which was negatively signed, and contradicted the apriori expectation but was statistically significant, food accessibility (FAA), food utilization (FUT), and inflation (IFL) had positive effects on economic growth and are statistically significance. The results showed that food accessibility (FAA) was positive, confirmed the apriori expectation and significantly impacted economic growth in Nigeria. The result equally revealed that food utilization (FUT) was positive, confirmed the apriori expectation and have a significant impact on economic growth in the Country. Similarly, the inflation rate (IFL) was found to be positive, confirmed the apriori expectation, and had a significant impact on economic growth in Nigeria during the period of study. Food security has a positive impact on economic growth and suggests that food availability, food accessibility, food utilization, and a stable inflation rate must combine to achieve economic growth. The study recommends policies that encourage food consumption, production of efficient local food products, and massive investments in rural infrastructure should be encouraged.

Effect of Brand Storytelling on Customer Retention in Non-Alcoholic Beverage Industry in Delta State, Nigeria

2024-08-08T03:52:48+00:00

The study explored the effect of brand storytelling on customer retention in non-alcoholic beverage industry in Delta state, Nigeria. This study used a cross-sectional survey research approach. The study focused on customers of non-alcoholic beverage companies in Delta state. The Cochran formula was used to calculate the sample size of 384. The study used the judgmental sampling technique. The researchers designed a structured questionnaire to collect data directly from customers. The test-retest reliability method was employed to determine the instrument's reliability. The data collected for the study were nalysed using frequencies, percentages, correlation and multiple regression analysis to arrive at a conclusion. Findings showed that the dimensions of brand storytelling explained 46% of the variations in customer retention. Genuine brand stories, brand emotional connection and consistent brand narrative has significant positive effect on customer retention. The study concluded that brand storytelling has a significant positive effect on customer retention in Delta state non-alcoholic beverage industry. The study recommended amongst others that firms should regularly review and update their narrative to align with volving consumer preferences and market trends while maintaining the core essence of the brand. This consistency not only reinforces the brand identity but also helps consumers easily recognize and remember the non-alcoholic beverages in a competitive market.

Effect of Cash Flow on Financial Performance of Selected Multipurpose Cooperative Societies in Abuja, FCT-Nigeria

2024-08-08T03:52:49+00:00

This study investigated the effect of cash flow on the financial performance of Multipurpose Cooperative Societies (MPCS) in Abuja, the Federal Capital Territory; specifically, the study examined the effect of cash flow on performance as it relates to assets (ROA) of MPCS and to examine the extent to which cash flow affect performance in relation to return on equity (ROE) of MPCS. The Ex–post facto research design was adopted. This study made use of secondary data covering a period of 5 years i.e. 2017 –2021, which were obtained from the financial statements of the selected MPCS. Panel regression spanning through 5 years was estimated using diverse techniques including; descriptive statistics, correlation analysis, multiple regression, standard deviation and random panel regression model. Data analyses were done using E-view 9.0 Findings of the study showed that cash flow has a positive and significant effect on ROA of selected MPCS. Cash flow has a positive and
significant effect on ROE of selected MPCS, and so contributes significantly to the performance in terms of ROE of selected MPCS.

Revisiting the Nexus Between Financial Development and Capital Formation in Selected Sub-Saharan African Countries

2024-08-08T03:52:49+00:00

This study revisits the connection between financial development and capital formation in selected Sub-Saharan African (SSA) countries spanning from 1990 to 2022. The study utilises the Augmented Mean Group (AMG) method to accommodate country-specific heterogeneity and cross-sectional dependence tests. Additionally, it incorporates the Dumitrescu-Hurlin causality test to assess causal relationships. The findings signify that credit to the private sector positively impacts capital formation, while bank efficiency and broad money supply exhibit negative effects. GDP per capita emerges as a critical factor for enhancing capital formation. Also, the study suggests that both private sector credit and GDP can serve as predictors of future capital formation in SSA nations. Additionally, the study identifies that both credit to the private sector and GDP Granger-cause capital formation in SSA countries. These findings suggest that policymakers should focus on improving financial development to boost capital formation in the region. This can be achieved by enhancing regulatory frameworks for transparency and investors’ confidence, improving access to credit through strong banking systems, promoting financial literacy programs, encouraging innovation in financial services, and developing capital markets for alternative financing options. This study provides up-to-date insights into the effects of financial sector development on capital formation in SSA. The reliability and applicability of its findings are enhanced by the inclusion of cross-sectional dependence and consideration of country-specific trends.

Effect of Working Capital Management on the Performance of Quoted Manufacturing Companies in Nigeria

2024-08-08T03:52:49+00:00

The expectation placed on the role of manufacturing firms in the economy has turned out to be a mirage, especially in recent times. Many of the manufacturing companies have folded up while the few surviving ones are performing far below installed capacity due to the operational challenges in Nigeria. Thus, this study examined the effect of working capital management on the performance of quoted manufacturing companies in Nigeria. The specific objectives of this study were the inventory turnover period and account receivable period. The study employed the causal research design with the population of 69 quoted manufacturing companies in Nigeria. A sample size of 26 quoted manufacturing firms was selected using a judgmental sampling technique for companies that have required data for 2011-2021 period of study. Panel data regression analysis which comprises the time series and cross-section data was used. The findings revealed that the inventory turnover period has a positive and insignificant effect on the performance of quoted manufacturing companies in Nigeria, while the account receivable period has a negative and insignificant effect on the
performance of quoted manufacturing companies in Nigeria. The study concluded that the owners/managers of these companies did not properly manage their working capital components effectively as improvement in this area will enhance the increase in performance. This study therefore recommends among others that manufacturing firms formulate and implement effective inventory management systems that maximize inventory turnover period and be mindful of the time lag between credit sales and collection of receivables in order to improve their financial performance.

Age Factor in Recruitment Process and Organizational Performance of Nigeria Police Force, Taraba State Command

2024-08-08T03:52:49+00:00

Lately, age consideration in employment has become a nightmare for most Nigerian graduates in their early thirties, as many employers of labour are now more than ever before, putting priority on an applicant’s age during the recruitment process. This practice has gradually turned young Nigerians into perpetual liars as they falsify their age at every job advert, to suit the employer’s requirement. Hence, it has become pertinent for human resource experts and administrators to find out if the employers’ actions are motivated by scientific proof or mere assumption that one person can perform a particular job better than another due to difference in age. To achieve this objective therefore, a survey design was adopted by utilizing primary sources of data, specifically, 386 copies of questionnaires were distributed, collected, and analyzed using a bar chart depicting the frequency of occurrence in order to compare between variables used in interpreting the responses gathered from the Nigeria Police Force, Taraba State Command. The result revealed that ageism in the employment process
operates powerfully at a subconscious level with the use of words like old or aged, in eliciting bias on different applicants on the basis of their age, without any scientifically proven benefit of such practice on organizational performance. Therefore, the study concluded that, ageism is not completely scientific and may be unprofessional for organization to fully deploy it in the recruitment process hence, employers should abolish the age factor in the recruitment process by
embracing age diversity in order to achieve timely and unprecedented results.