This study investigates the relationship between Nigeria's external debt and economic growth, between 1975 and 2006. The choice of period was guided by data availability and the the escalation of Nigeria's external debt. Econometric evidence revealed stationarity of the variables at their first difference while the Johansen cointegration approach also confirms the existence of one cointegrating relationship at the 1 percent and 5 percent level of significance. In addition, error correction estimates revealed that external debt has negative relationship with economic growth in Nigeria. For example, a one per cent increase in external debt resulted in a decrease of 0.027 per cent in Gross Domestic Product, while a 1 per cent increase in total debt service resulted to 0.034 per cent (decrease) in Gross Domestic Product. These relationships were both found to be significant at the ten per cent level. In addition, the pairwise Granger Causality test revealed that uni-directional causality exists between external debt service payment and economic growth at the 10 percent level of significance. Also, external debt was found to granger cause external debt service payment at the 1 percent level of significance. Statistical interdependence was however found between external debt and economic growth. In order to ameliorate the negative influence of external debt on economic growth, debt accumulation for projects must be matched with the timing of repayment. Nigeria must be concerned about the absorptive capacity. Consideration about low debt to GDP, low debt service/GDP capacity ratios should guide future debt negotiations. Finally the portfolio of debt must be diversified in terms of sources and types to avoid harmful concentration and a reoccurrence to the past.

The study examines

This study examined the effect of monetary policy on the performance of the Manufacturing sector in Nigeria. The explanatory variables are monetary policy rate, Treasury bills rate, Cash reserve requirement and money supply; while the dependent variable is the Manufacturing (MANU) sector output. The study adopted an ex-post facto research design and used secondary data obtained from the CBN Statistical Bulletin. The study covered a period of 32 years (1986 to 2017). The data were subjected to Augmented Dicker Fuller stationarity test to determine the best suitable econometric tool of analyses. The Autoregressive Distributive Lag (ARDL) was used for the model estimation. The results indicate that: monetary policy tools have significant effect on the manufacturing sector output in Nigeria in the short run only. The study thus concludes that monetary policy tools may not be a long run policy instrument for the growth of the manufacturing sector output in Nigeria but rather short run instruments. This study recommended that money supply and treasury bills can be used in the short run as policy instruments to maintain macroeconomic stability in Nigeria with reference to the manufacturing sector.

No abstract

No abstract