This study focuses on the Nigerian industrial sector to examine the relevance of financial sector development on real sector productivity in the 21 st century. The model adapts the financial sector development measures used in King and Levine (1993) as predictors of industrial sector production output. Estimating the model with Ordinary Least Square (OLS) method, the study reveals that there is a strong linear relationship between the financial sector and real sector because the coefficient of multiple determinations is relatively high; thus suggesting that financial sector development is crucial for real sector productivity.

Relevance of Financial Sector Development on Real Sector Productivity: 21 st Century Evidence from Nigerian Industrial Sector

The developed countries’ institutional research undertaken on corporate social responsibilities (CSR) have shown a positive relationship between accessibility of financial related assets and CSR. Contentions that we classified as the Institutional Difference Hypothesis (IDH) drawn from the institutional writing, on the other hand, propose that institutional contrasts amid of developing and the developed economies are prone to result in diverse CSR propositions. Incorporating the rationale of IDH with understanding of knowledge from slack resource theory, we contend that there exists a negative relationship between fiscal resources accessibility and CSR investments for mining companies in Ghana, a sub-Saharan African developing economy. We utilize a well-protected data from the Ghana Investment Promotion Center (GIPC), Ghana Stock Exchange (GSE) and Ghana Chamber of mines (GCM) and find that Return on Ordinary Share, Return on Sales, and Net Profit were reliably connected with lower CSR disbursements. We highlight the ramifications of our discoveries for academics’ examination and corporate practitioners.

Corporate Social Responsibility: Institutional Behavior Differences in Extractive Industry

Purpose




Net energy importing countries (NEICs) pursue strategic policies to reduce the consumption of energy from conventional sources and increase that of renewable energy to attain energy security and sustainable development. However, net energy exporting countries (NEECs) rely substantially on the proceeds realised from oil and gas exports to mainly NEICs to finance government activities. This paper aims to investigate the effect of increased consumption of renewable energy in developed NEICs on the Nigeria’s oil and gas exports.




Design/methodology/approach




The study was undertaken by analysing macro-economic annual time-series data set (1980-2014) using autoregressive distributed lag (ARDL) bounds testing approach.




Findings




Both the short-run and the long-run results of the ARDL modelling reveal that renewable energy consumption in developed NEICs is affecting Nigeria’s oil and gas exports negatively, thereby causing significant decrease in the amounts of revenue being generated therefrom.




Research limitations/implications




Like most empirical studies, the conduct of this research has encountered some challenges. Thus, the use of rather small sample in terms of period covered (1980-2014), annual frequency of data and focus on one NEEC (Nigeria) are the key limitations of this paper. While the first two challenges were dealt with by using ARDL, future research can focus on other NEECs to extend the study.




Practical implications




The findings have several policy implications, including the need for Nigeria to focus on developing internal market trajectories to increase domestic utilisation of its conventional energy rather than depending on external markets. The results also suggest the need for public policymakers to develop a strategic plan that will effectively address the external economic threat arising from the influence of global energy transition.




Originality/value




To the best of the authors’ knowledge, this paper represents the first effort to empirically examine the effect of renewable energy consumption by developed NEICs on the Nigeria’s oil and gas exports. The paper contributes to the literature by providing insight into and documenting evidence that the world is taking transitioning to cleaner energy sources very seriously.

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The effect of transitioning to renewable energy consumption on the Nigerian oil and gas exports: An ARDL approach

With the continued manifestation and intensification of poverty, child and maternal mortality, unemployment, HIV/AIDS and other economic problems in Nigeria after the expiration of the deadline set for the realization of the Millennium Development Goals, the preoccupation of the existing scholarships have been channeled in interrogating the fundamental impediments to the actualization of these goals. Factors such as lack of human capacity, inadequate and unreliable data system, lack of finance, poor coordination of the policy framework, and among others, were identified by scholars as the bane of the MDGs framework in Nigeria. As the global community moves into the post-MDG era, the study examined the role and relevance of Political Science in advancing the objectives enshrined in the Sustainable Development Goals in Nigeria. Employing the basic propositions emanating from the Marxist theory of the Post-Colonial State, the study, beyond the conventional positions of scholars, argued that the non-adherence to the dictates of politics was implicated in the failure of Millennium Development Goals in Nigeria. Also, the study utilized the secondary method of data collection largely drawn from official publication, journal articles and books while we analyzed the data using the content analysis. In the light of the foregoing, we suggested for more inclusion of political scientists in the formulation and implementation of policy frameworks relating to SDG initiatives, on one hand, and the application of basic principles of good governance which remains the core of Political Science, on another hand, in order to address the development challenges that confronting the Nigerian state. DOI: 10.5901/mjss.2016.v7n5p319

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Political Science as Prospect for Achieving Sustainable Development Goals in Nigeria

A partial equilibrium model was used to estimate the impact of a free trade agreement within ECOWAS on imports by Nigeria, based on trade data prior to implementation in 2015. Estimated trade creation for agro-processed goods was just more than double that for agricultural products, which may point towards increased competition for domestic value-added industries that are targeted for support by Nigeria’s industrial policy for diversification. The welfare gains for Nigeria are positive, despite the tariff revenue loss. The results of the model are upper-bound estimates because Nigeria still applies non-tariff barriers. When comparing the model results with actual trade trends since 2015, it is found that the increase in trade indeed takes place in the year after the implementation of the zero rating, but this increase in intra-ECOWAS trade is not maintained. In subsequent years, the trade levels appear to revert to pre-agreement levels.

The ECOWAS free trade area: an ex ante and ex post analysis of the impact on Nigeria's imports.

Since the discovery of oil in commercial quantity in Nigeria in 1956 and the oil boom of 1970s, oil has dominated the economy of the country. Oil accounts for more than 90 percent of the country’s exports, 25 percent of the Gross Domestic Product (GDP), and 80 percent of government total revenues.  As a result, the economy of the country has been substantially unstable, a consequence of the heavy dependence on oil revenue, and the volatility in prices. The oil boom of the 1970s led to the neglect of agriculture and other non-oil tax revenue sectors, expansion of the public sector, and deterioration in financial discipline and accountability. In turn, oil-dependence exposed Nigeria to the vagaries associated with oil price volatility which threw the country’s public finance into disarray. Moreover, since oil revenue dominates Nigeria’s Federation Account, the sharing of oil rents govern intergovernmental fiscal relations in the country with an on-going tension between agitations by oil producing states for greater share of resources and demands for redistribution from other regions, particularly relatively less endowed ones. In this paper, the authors argue for a rethink in the current revenue sharing formula in Nigeria in favor of derivation. This will reduce ongoing tensions in the distribution of proceeds from oil between the federal government and states on one hand and between the federal government and oil producing states in Nigeria on the other hand. The authors argued for a rollback to the era when states/regions were accorded 50% retention of any proceeds accruing from their areas.  This will make every state/region in Nigeria to look inwards and explore other resources that abound in their areas and will also help to diversify the economy of Nigeria away from oil.

	Key words: Oil dependency, economic diversification, derivation formula, economic development.

S. N Udeh

Papers

Resolving Nigerias dependency on oil The derivation model