Economic Growth

In recent decades, the potential contribution of agriculture to economic growth has been a subject of much controversy among development economists. While some contend that agricultural development is a pre-condition for industrialization, others
strongly disagree and argue for a different path. This study examines the contribution of Agriculture to Economic Growth in Nigeria Empolying the Ordinary Least Square Method (OLS).Results shows that the productivity in agricultural sector has not appreciably impacted positively on the economic growth in Nigeria.

The purpose of this study was to ascertain the effect of bank profitability on economic growth in Nigeria. However, in order to achieve the objectives of this study, we utilised four explanatory variables as proxies for bank profitability (credit to private sector, bank loans, bank return on assets and total assets to GDP) while real gross domestic product was used as a proxy for economic growth in Nigeria. The study covered a time period of 1995-2020 (26years). The descriptive statistics and regression analysis technique were adopted in carrying
out the study’s empirical analysis Based on the empirical analysis, the following findings were arrived at: firstly, the study ound that there is a positive and insignificant relationship credit to private sector and economic growth in Nigeria; second, the study found that bank loans have a significant effect on economic growth in Nigeria; third, bank return on assets have an insignificant effect on economic growth in Nigeria; and finally, total assets to GDP was found to have a positive and significant effect on economic growth in Nigeria. In view of the salient findings from this study, the following specific policy recommendations were put forth: banks in Nigeria should lend more to the private sector as doing so ensures they are lending to sectors that are likely to generate more income the loans granted which will culminate into a multiplier
effect of enhanced economic growth performance in the long run; the apex monetary authority in Nigeria (CBN) should ensure that banks are regulated to give out more proportion of their income as loans to individuals, private sector and public sector; banks should not leave customers’ deposits idle but should invest a large chunk of it on risk-free securities such as government bonds as well other risky securities with the adoption of effect risk management mechanism; and efforts should be made by banks to maintain continuous increase in their
assets which could be by diversifying, opening more branches, among others.

The African Development Bank came into existence asa result of the pressing necessity to create a financial organization that would support the growth of several African
economic sectors. Development banks were specially created to fill the gaps when the African government realized that commercial banks which served as the country’s central bank were unable to deliver financial development services. The African Development Bank (AfDB) was founded in 1964 by the Organization of African Unity, which was preceded by the African Union. AfDB comprises of different entities: The African Development Bank, the African Development Fund, and the Nigeria Trust Fund. The AfDB’s mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that contribute to the economic and social development of African countries. The AfDB was established in response to the need for more unity within the African continent after the end of the colonial period. A draft accord was submitted to top
African officials and then the conference of finance ministers on the establishment of the African development bank in Khartoum, Sudan from July 31 to August 4, 1963. The agreement was signed between 23 African governments on August 4, 1963, and came into force on September10, 1964. The inaugural meeting of the board of governors of the bank was held from November4 to 7, 1964, in Lagos, Nigeria. The banks headquarter opened Abidjan, Ivory Coast in March1965,and its operations commenced on July1, 1969.

The study was undertaken to examine the impact of Human capital development on economic growth in Nigeria from 1981 to 2021.The main objective of the study is to examine the impact of human capital development has on the growth dynamics of the Nigerian economy. The study adopted the autoregressive distributive lag (ARDL), unit root and co-integration using EVIEWS 9 toanalyse among the variables using time series data on government expenditure on education (GEE), government expenditure onhealth (GEH), population growth (POPGR) and government expenditure on social community services (GESCS) as proxies for human capital development, and gross domestic product (GDP) as proxy for economic growth. The results reveal that increases inhuman capital increases economic growth in Nigeria. and health sectors of the economy. The study recommend that the government and policy makers should increase its total expenditure on education, ensure sufficient budgetary allocation on health expenditure, and ensure a standard is set across all educational institutions in the country so that proper human capital required for any individual to become productive and economic growth is enhanced.

This study examines the impact of poverty on economic growth in Nigeria from 1981 to 2024. Despite periods of robust economic expansion, Nigeria continues to experience high and persistent poverty rates, reflecting the country’s enduring growth–poverty paradox. Using annual time-series data obtained from the World Bank, National Bureau of Statistics, and Central Bank of Nigeria, the study employs the Autoregressive Distributed Lag (ARDL) model and Error Correction Mechanism (ECM) to analyze both short-run and long-run relationships between poverty and growth, alongside other macroeconomic variables such as
unemployment, inflation, foreign direct investment, and government expenditure. The results reveal that poverty exerts a significant and negative impact on real GDP in both the short and long run, indicating that high poverty levels constrain Nigeria’s productive capacity and weaken economic performance. Granger causality tests further show a unidirectional causal relationship running from poverty to economic growth, implying that poverty significantly predicts variations in output, whereas growth alone does not substantially reduce poverty. The findings highlight that without inclusive policies targeting poverty reduction, economic growth in Nigeria will remain uneven and unsustainable. The study recommends enhanced social investment, employment generation, human capital development, and equitable income distribution as vital strategies to break the poverty–growth trap and promote broad-based economic progress.

This study examines the impact of four key taxes Corporate Income Tax (CIT), Value- Added Tax (VAT), Personal Income Tax (PIT), and Petroleum Profit Tax (PPT) on
economic growth in Nigeria, using Gross Domestic Product (GDP) as the proxy for
economic performance over the period 2010 to 2023. The study employs an ex-post factor research design, utilizing panel data techniques to analyze the relationship between
taxation and GDP. The findings indicate that all four tax components have a significant
positive relationship with GDP, suggesting that effective tax policies and their implementation play a crucial role in driving economic growth. The study reveals that while CIT encourages investment in strategic sectors, VAT contributes to the diversification of revenue streams, PIT supports public service funding, and PPT remains vital due to Nigeria's oil dependency. However, the results also emphasize the need for efficient tax administration, periodic reviews of tax rates, and investments in infrastructure and public services to foster sustainable growth. Based on these findings, the study recommends strengthening tax collection mechanisms, broadening the tax base, reducing reliance on oil revenues, and improving public awareness of the role of taxation in national development. These measures are critical to enhancing Nigeria's economic resilience and achieving long-term sustainable growth.

This study investigates the impact of bank credit on economic growth in Nigeria applying the multivariate ordinary least square (OLS) technique using time series data from 1981 to 2020. Real gross domestic product (RGDP) is the dependent variable and proxy for economic growth while bank credit to the private sector (PSC) and aggregate bank credit (ABKC) were proxies for bank credit respectively. A major finding is that there is a significant negative relationship between bank private sector and economic growth while a significant positive relationship was found between aggregate bank credit and economic growth. Inflation rate and trade openness were found not to be a key factor that influence economic growth in Nigeria for the period studied. The study recommends that government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector. The Central Bank of Nigeria, through the use of its credit control instruments should regulate the interest rates to enable the private sector borrow at a moderate rate thereby enhancing investment, which in turn leads to economic growth. Also, the monetary authorities and other financial institutions should be strengthened in their regulatory frame work and capacity to maintain financial stability and banking sector reforms.

This study investigates the determinants of unemployment in Nigeria using the Autoregressive Distributed Lag (ARDL) model and data from 1999 to 2023. The empirical findings reveal that in the short run, population growth and real GDP have a significant
negative impact on unemployment while inflation and government expenditure exhibit a positive and significant effect on unemployment. In the long run, population growth continues to have a significant negative impact on unemployment, inflation remains positively related to unemployment, government expenditure maintains a positive relationship with unemployment
while real GDP has a negative effect on unemployment, underscoring the importance of sustained economic growth in fostering employment. Based on these findings, the study recommends policies aimed at tackling unemployment. Specifically, inflation control measures should be implemented to stabilize prices and support employment-friendly macroeconomic conditions and government expenditure should be efficiently allocated to high-impact sectors such as education, vocational training, and technology-driven industries to maximize job creation.

This study investigates the impact of foreign direct investment (FDI) on economic growth in Nigeria from 1981 to 2023, employing the Autoregressive Distributed Lag (ARDL) modeling approach. The study incorporates GDP growth rate as the dependent variable and FDI, interest rate, exchange rate, and inflation rate as explanatory variables. Descriptive statistics reveal moderate variability among the variables, while correlation analysis indicates a positive association between GDP growth and FDI, and a negative relationship with inflation. Unit root tests confirm that all variables are stationary at first difference, satisfying the preconditions for ARDL estimation. The ARDL bounds test results establish the existence of a long-run equilibrium relationship among the variables. Short-run dynamics show that FDI has both positive and negative effects on GDP growth across lags, suggesting that the impact of investment inflows is time-dependent. Exchange rate depreciation exerts a significant negative influence on economic growth, while inflation exhibits mixed effects depending on lag structure. The long-run estimates reveal that FDI, interest rate, exchange rate, and inflation have negative but statistically insignificant impacts on GDP growth, implying limited long-term contribution to growth within the study period. Diagnostic tests confirm the absence of heteroskedasticity and autocorrelation, validating the robustness of the model. The study concludes that FDI, though influential in the short run, does not significantly drive long-term growth unless supported by stable macroeconomic conditions. It recommends that policymakers enhance the investment climate, ensure exchange rate stability, and implement consistent macroeconomic policies to attract productive FDI and sustain economic growth in Nigeria.

This study empirically examined the impact of health on human capital development and it’s effect on economic growth in Nigeria for the sample period of 1980-2020. The Augmented Dickey Fuller unit root test was employed to test for the order of integration of the series, further the autoregressive distributed tag model was employed to estimate the long run relationship between the variables. Results showed that contrary to a priori expectation, human capital index and life expectancy had negative relationship with economic growth. The study therefore recommends that proper and effectively managed health policies should be put in place so that human capital would be healthy enough to assimilate skills and know how and this would translate to more economic growth for Nigeria.