No abstract

No abstract

The study investigated empirically the effect of banking sector reforms on the output of manufacturing sector in the Nigerian economy between 1970 and 2011 with a view to examining the extent of the impact of banking sector reforms on the manufacturing sector. The study employed annual secondary time series data from 1970-2011, sourced from the Central Bank of Nigeria's statistical bulletin and annual report and statement of accounts, National Bureau of Statistics final accounts and IMF International Financial Statistics (IFS) using the methodology of Cointegration analysis and Error Correction Mechanism (ECM). The empirical results showed that the effects of Bank assets, Lending rate, Exchange rate and real rate of interest on manufacturing output were positively significant but with very low impact. On the other hand, the financial deepening and interest rate spread negatively and significantly impacted on the output growth of manufacturing sector in Nigeria. Overall, the conclusion that emerged from the findings suggests that the effects of banking sector reforms on the output growth of manufacturing sector were significantly low in the Nigerian economy. However, the findings indicated that the impacts of the various banking reforms could vary widely on the economy depending on the time lags involved. Consequently, the policymakers must be prepared to initiate proper countercyclical banking reforms that will serve as buffer measures to lessen or abort the negative impacts of any banking reforms on the manufacturing output growth. Thus a flexible accommodating banking reform regime is advocated for Nigeria.

Purpose: While the relationships between energy or electricity consumption and economic growth are of great interest to economists, previous studies have not examined the dynamic effect of electricity production on industrial and agricultural output growth in Nigeria; this study attempts to fill the gap. This study thus investigates the dynamic effects of electricity production from renewable and non-renewable energy sources on industrial and agricultural output growth in Nigeria. Design/methodology/approach: This study disentangled electricity production by source - into renewable and non-renewable - and employed a Structural Vector Autoregressive (SVAR) and other time series econometrics analysis. Findings: This study found that electricity production from both sources has a slight impact on the growth of the Nigerian industrial and agricultural sectors. In addition, this study supports the existing claim that economic growth and energy are linked and thus disproves the neo-classical assumption of the neutrality hypothesis. Research limitations/implications: This study considers annual data for all the variables due to the available data frequency for electricity production. However, the study assesses the validity of the estimated SVAR, and the results show that the analysis is robust for this study. Originality/value: This study contributes to the existing empirical literature by disentangling electricity production into renewable and non-renewable- and then examine their impacts on the crucial sectors of the Nigerian economy. This study shows that electricity production from the two energy sources contributes marginally to the growth of the industrial and agricultural sectors in Nigeria. Therefore, among other policy prescriptions, the author recommends that acceleration of projects that focus on off-grid electricity production under the Nigerian Energy Support Program (NESP) could minimize the current challenges of electricity production and its impact on the economy.

No abstract