The study examines the effect of the businesses in nigeria on the economic development of the country. Globalization and nigerian economic development yusuf. It contributes to economic growth and development as well as a major employer to majority of the people of subsaharan africa including nigeria, especially those in the rural areas. People do hide under the cover of national interest to project and protect their own individual or group interest. National interest and national development the term national interest is characterized with inconsistency. Nigeria country profile growth and development economics. Below are the importances of taxation in nigeria economy. May 21, 2009 nigeria, which has long struggled with governance issues and poverty, is in need of a profound economic transformation.
Nigerias recent economic pol icy has favoured the development of clusters and use of special economic zones sez s to drive growth in several key sectors and their value chains. The contribution of oil sectors in nigeria justifier the huge investments being committed to sector by federal government. The erratic nature of the world oil prices has been a great influence on the trend of the nigerian economic development efforts. A mutual correlation exists between infrastructural development and economic growth in nigeria. The theoretical link between security a nd economic development in this work, two theories have been adopted to provide explanation to the concep t of security and. The paper empirically examined the contribution of vat to the development of the nigerian economy.
Gdp growth turned positive in 2017 as oil prices recovered and output stabilized. Ever since then, there has been accumulation of loans aimed at various development projects without obvious results as expected. In 1999, most people grossly underestimated the extent of social, political, and economic decay of the country. Nigerias longrun growth performance has been extremely poor. But, mismanagement of the economy, lack of public accountability, insensitivity of the leadership to the yearnings and aspirations of. Review of the economic recovery and growth plan ergp audience analysis members and governing body of the institute governed by the legislative act of 1965 the main accounting regulatory body in nigeria membership in excess of 30, 000. Challenges to economic growth in nigeria michael amati jose ardavin jeanette fershtman 14 may 2004. Nigeriagabon example, the civil war dummy cannot distinguish between the. Government expenditure and its implication for economic. Economic development through globalisation in nigeria. Review of the economic recovery and growth plan ergp. Nigeria abstract the small and medium scale enterprises smes dominate the real sector and play roles in the economic development of countries around the world.
A lot of literature exists on tax revenue and economic growth of nigeria adereti et al. Notwithstanding, nigeria is today identified as one of the 30 of the worlds most important economies and the 7 th fastest growing economy in the world during 2009 6. Cost of governance is captured by recurrent and capital administrative expenditures, while gross domestic product is used as a proxy for economic growth. This research work examines the link between taxation and economic development in nigeria for the period 1994 to 2012. The quest for economic growth and development compelled nigeria to acquire external debt.
Infrastructure development and economic growth nexus in nigeria. Natural gas option was considered the best alternative energy resource to other resources for optimizing income earning, indigent capacity building and the socioeconomic development of an over populated nigeria. The recession was driven by a large contraction in the oil sector. In addition to the global price of crude oil falling to a year low in january 2016 figure 1. This is with the desire to examine its ability to achieve the desired objectives in the. Falodun, omogiator and ezeaku 1997 observed that economic development is the attainment of ideals of modernization such as the rise in productivity, social and economic equity, improved institution and values. Nevertheless, the niger delta development commission nddc was created to coordinate economic and social development in the oilproducing region. Local government administration in nigeria and community. Umoh introduction this article overviews the growth and development of the nigerian economy from inde pendence to present times. Agriculture is an important sector in the developing world. However, shell is attempting to act more responsible by adjusting its position in order to have a more positive impact on economic development. The development partners are doing their best to support the government in addressing this dire situation. Foreign debt management and the development of nigeria. The nigeria economic report represents a new world bank product intended to be produced on a biannual basis.
Identifying impact of corruption on economic growth. Fiscalmonetary policy and economic growth in nigeria. Each report will provide an assessment of the current economic situation in the country and give special attention to selected topics of high policy relevance for nigeria. The correlation test shows that employment generation had positive correlation at 5% level of significance.
National interest and national development in nigeria. The economy of nigeria is a middleincome, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. Lots of economic challenges have faced nigeria overtime. With 356,759 square miles, it is one of the largest african nations. Structural change, fundamentals, and growth dani rodrik. Its population of around forty million makes nigeria the largest african unit. Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. Economic growth and development of nigeria economics essay. Nigerias ranking in the 20 human development index at 0. Leadership, policy making, and economic growth in african countries. Since 1999, we have succeeded in stabilizing the polity, consolidated the democratic governance structure.
Infrastructure development and economic growth nexus in. Globalization and nigerian economic development yusuf abdulraheem. Problems of economic development in nigeria and solutions. Feb 29, 2008 nevertheless, the niger delta development commission nddc was created to coordinate economic and social development in the oilproducing region. Leadership, policy making, and economic growth in african. Nigeria is now in a political mess, lots of killing, kidnapping and also. Diversification of nigeria economy through agricultural. This indicates that agriculture through employment generation tends to contribute to nigeria economic development. Relying on post paper placed special emphasis on the integration.
This is a drive to energies nigerias development programme in a sustainable and responsible manner, meeting immediate needs and providing high standard of. Foreign debt management and the development of nigeria economy. Development bank afdb, united states agency for international development usaid and the department for international development dfid. Economic development in nigeria 393 the country is big and diversified, and the present federal constitution reflects the history as well as the diversification of the country. The study was carried out at ilorin, capital city of kwara state, nigeria. The role of cooperative societies in economic development 1. In these studies, researchers used economic development and economic growth interchangeably. The uks focus and international leadership on economic development is a vital part of global britain harnessing the potential of new. Public disclosure authorized nigeria economic report.
It is by far the most significant source of revenue for modern government hence recently calls for increase in taxation. The role of cooperative societies in economic development. The economic reforms and prudent policies have contributed to the consolidation of. An examination of policy issues and economic reforms to aid the development process is also presented. Subsaharan africa region fdi indicators south east asia 35 no. Nigeria has the appropriate credentials for greatness. Infrastructure affects rural development through many channels, such as improved agricultural productivity, increased rural nonfarm employment, and rural migration into urban sectors. However, the results emanating from these studies have been inconclusive. Overview of the nigerian economy economic and social environment since 2003, the government of nigeria has sustained farreaching economic reforms at the federal level, particularly in public finance management, and the financial sector. Mar 27, 2016 for taxation to make the desired impact on the economic development of nigeria as the major source of government revenue. The national economic empowerment and development strategy needs is the response to the development challenges of nigeria. This act regulates the personal income tax throughout the federation. The term economic development refers to the improvement in the general standard of living of the people of the society. Economic liberalization policies have been widely acknowledged in development finance literature as a critical factor in economic performance.
Some researchers estimated the effect of tax revenue on the economic development of nigeria using gross domestic product gdp. In a situation such as this, national interest does have a negative contribution to national development. The purpose of this study is to examine the human resources development of nigeria as the road map for vision 20. There have been several studies that have investigated the relationship that exist between infrastructure development and economic growth. It is a strong force for economic development in the country from the precolonial, colonial and postcolonial eras. The main problem is that our citizens and leaders have always failed to make things right.
Cost of governance on economic development in nigeria. This study assessed the impact of entrepreneurship on economic development in nigeria. The nigerian perspective is because the bulk of revenue needed for development purposes is derived from oil. Pdf effect of business on economic development in nigeria. Pdf infrastructure and economic development in nigeria. Nigeria s goal under the national economic empowerment development strategy needs program is to reduce inflation to the single digits. Effects of nonoil export on the economic development of.
Nigerias long term aspiration is to be among the top 20 economies in the world by the. This paper investigates the efficacy of nigeria s development policies in improving the standard of living of the people by adopting the basic needs approach bna to development. The roles of value added tax in the economic growth of nigeria. According to adeoye 2006, the debate on the effectiveness of fiscal policy as a. The roles of value added tax in the economic growth of. This study, carried out between february and april 2007, specifically addresses the prospects of developing an industrial mining sector in nigeria. Nigeria entered recession in 2016 as a result of lower oil prices and production, exacerbated by militant attacks on oil and gas infrastructure in the niger delta region, coupled with detrimental economic policies, including foreign exchange restrictions. Economic transformation and developmental governance in. Students work in groups to identify the differences in development and the issues and challenges this brings for nigeria. The paper posits that for over 160 years now cooperatives have been an effective way for people to exert control over their economic livelihoods as they play an increasingly important role in facilitating job creation, economic growth and social development.
The paper canvassed the need for synergy and collaborative approach to community development and reform initiatives anchored on theory to practice policy inclination. Abstract the study aims at investigating the impact of cost of governance on economic development in nigeria. The major challenges for the attainment of vision 20. Economic development nigeria product, growth, economic. Nigeria has a population of 3 million, a landmass of 923,768km2, a bountiful endowment in arable land, solid minerals and petroleumgas resources. The aim was to increase the revenue base of government and make funds available for developmental purposes that will accelerate economic growth. Overview of the nigerian economy african development bank. Crude oil export has continued to account for over 80% of the total federal government revenue, while the remaining 20% is contributed by nonoil. Also, most of the typically scanty empirical attempts have been, in the main, conducted at the crosscountry levels, thus, making it quite difficult to extrapolating to countryspecific cases.
Economic developmentdeveloping countriescase studies. This study concluded that the resultant effects of external debt on economic development in nigeria are negative and significant. Value added tax vat was introduced by the federal government of nigeria in 1993 to replace sales tax. It is ranked as the 27thlargest economy in the world in terms of nominal gdp, and the 22ndlargest in terms of purchasing power parity. On the other hand, the imf has not adapted to nigeria but obliges the country to adapt to the institutions demands hindering economic development. An overview of the nigerian economic growth and development. Nigerian economy providing food and employment for the populace, raw materials for the nascent industrial sector, and generating the bulk of government. However, the role of infrastructure has not been paid enough. Industrial development and growth in nigeria brookings institution. Nigeria, which has long struggled with governance issues and poverty, is in need of a profound economic transformation. Development strategy for nigeria moses akpobasah at a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. It investigates how the value added tax introduced in the country in may 1993 and other types of. The paper is a descriptive survey, which involves the collection of data for the purpose of describing the role of cooperative societies in economic development.
Dec 07, 2019 nigeria entered recession in 2016 as a result of lower oil prices and production, exacerbated by militant attacks on oil and gas infrastructure in the niger delta region, coupled with detrimental economic policies, including foreign exchange restrictions. There is the urgent need to put nigeria into a rapid economic growth to achieve its vision 20. An endless search for appropria te development strategy iheanacho, e. International journal of economic development research and investment, vol. Data analysis shows that access to external finances strongly influence the economic development process of nigeria and other nations.
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