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INCENTIVES IN NIGERIA’S FOOD MANUFACTURING
INDUSTRIES AND THEIR IMPACT ON
OUTPUT AND PRICES
By Ndubisi I. Nwokoma, Department of Economics, University of Lagos
ABSTRACT
Since the inception of the Nigerian government’s structural adjustment
reform programme in 1986, various incentives have been granted the
manufacturing sector as a means of lifting the sector from the prevalent
low level of performance and increasing its contribution to gross
domestic product. The purpose of this paper is to examine the impact of
these various government incentives on manufacturing output – with
specific focus on the food sub-sector. The extent to which this has
benefited the general populace through a reduction in factory-gate prices
and employment creation is also investigated. By studying the operating
profiles of selected food manufacturing companies quoted on the Nigerian
Stock Exchange, using the Pearson correlation analysis with relevant
output, employment and price index variables, it was found that the
benefits of these incentives do not appear to have been passed on to the
general public. It is thus recommended that benchmark performance
expectations be set for manufacturers as a pre-condition for granting the
sector incentives in subsequent dispensations.
INVESTMENT FOR POVERTY REDUCING EMPLOYMENT IN NIGERIA:
A Dynamic General Equilibrium Analysis
By A. Iwayemi and A. Adenikinju, Department of Economics & CEAR, University of Ibadan,
Ibadan
ABSTRACT
Widespread poverty and serious unemployment problems in the past
decade have called into question Nigeria’s development path in the postindependence
period. So far, progress towards faster poverty reduction
and employment generation has been at best marginal, despite the
numerous past and current policy initiatives, and creation of several
institutions. The main thrust of this paper is to provide an empirical
implementation of a modelling framework for exploring the design and
implementation issues associated with a pro-poor and pro-employment
development strategy. The paper considers four policy scenarios, viz, an
increase in government investment, an increase in labour demand, a rise
in foreign inflow and an increase in income transfer. Our findings suggest
that an increase in domestic investment, either through government or
foreign capital has a strong positive impact on growth and employment.
The four scenarios also yielded encouraging reductions in unemployment,
with the highest reduction occurring under foreign investment. The four
scenarios however, differ in terms of the distribution of benefits to the
various households. Given the need to protect the interests of the core
poor, the study recommends that government should introduce
mechanisms that will ensure that the growth dividends are more broadly
spread.
INADEQUACY OF INFRASTRUCTURAL SERVICES AND THE INCIDENCE OF POVERTY IN
NIGERIA:
A Case Study of Offa Town in Kwara State
By Gafar T. Ijaiya,Department of Economics,University of Ilorin, Ilorin
ABSTRACT
Using a multiple log-linear regression analysis, this paper
examines the effect of inadequate infrastructural facilities on the
rate of poverty in Offa town in Kwara State. The study was
carried out using a structured questionnaire served on 250
heads of households. The results showed 58 of them to be poor.
Inadequate water supply, drainage services, electricity power
supply, sanitation facilities, road networks and telecommunications
facilities were used as a proxy for poverty and
to determine their influence on the consumption-expenditure of
poor households. The results obtained showed that inadequate
infrastructural facilities are directly related to the rate of
poverty in Offa town, thus confirming our a priori expectations.
The paper suggests measures for improving infrastructural
services in the town to reduce poverty.
THE ECONOMY AND POLITICAL SUCCESSION IN NIGERIA
Fact or Fiction?
By Louis N. Chete and F.O.N. Roberts, Nigerian Institute of Social and Economic Research,
Ibadan
ABSTRACT
This paper reports a scholarly investigation of the connection between the
economy and changes in government in Nigeria. Economic failure has
inevitably put an end to some of Nigeria’s democratic experiments and
has provided a justification for the military to intervene, thereby
preventing civilian-to-civilian transition. In spite of the ample oil
resources, expansive agricultural lands and abundant human resources
Nigeria’s condition can be described as experiencing poverty in the midst
of plenty. There is an obvious contrast between the stupendous wealth of
the political elite derived from institutionalized predation and the
widespread poverty amongst the populace.
One of the main reasons for this lack of development has been the
quality of the leadership. Using an eclectic framework which draws
insights from the interaction between politics and economics, economic
trends during two democratic republics were studied, leading to some
understanding of the extent to which economic influences can either be
conducive to successful political democratic transitions or can abort
them.
PERCEPTIONS AND CHARACTERIZATION OF POVERTY
IN NIGERIA:
The People’s Assessment
By Edet Joshua Udoh, Department of Agricultural Economics/Extension, University of Uyo, Uyo
and Bolarin Titus Omonona, Department of Agricultural Economics, University of Ibadan, Ibadan
ABSTRACT
The multidimensional nature of poverty makes it very difficult to capture
using the conventional single income or consumption-based indicator.
People’s perceptions, generated through participatory open-ended
research, are imperative for a cumulative in-depth understanding of
poverty. This paper focuses on poverty in Nigeria, using information
derived from two separate nationwide poverty assessment studies.
The dynamic and stark nature of poverty shows that poverty differs
markedly with social groups and geographical context. Apart from the
material expression of poverty, people also understand it in terms of a
range of non-material qualities such as social exclusion, powerlessness,
lack of hope and dignity, etc. Furthermore, the people identified a
complex and overlapping cause-impact paradigm for poverty, which has
resulted in pervasive vulnerability, risk and insecurity. However, in order
to overcome poverty, the people adopt and employ a range of strategies
that are not only restricted to cushioning poverty shocks or stress, but
have become livelihood strategies for them. There is therefore a need for
these livelihood strategies/coping mechanisms to be sustained and
strengthened by government. This would involve strengthening and
developing programmes that the people consider suitable and
encouraging income diversification, employment generation, social
security and good health. In a nutshell, understanding poverty ought to
begin with the perception of the people about poverty and its impact on
their lives.
DETERMINANTS OF DEFORESTATION AND AGRICULTURAL LAND EXPANSION IN NIGERIA
By A.S. Oyekale and A.O. Falusi, Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria
ABSTRACT
This study provides an empirical analysis of the major forces responsible
for deforestation and agricultural land expansion in Nigeria. Secondary
data for 1961-2000 were used. The descriptive analysis shows that
forestland areas have declined over the years, while agricultural land has
increased. Deforestation and agricultural land expansion rates are 1.94
and 6.13 per cent respectively. A two stage least square analysis (2SLS)
revealed that the structural parameters of growth rates of tuber yield,
other land areas, permanent cropland, gross domestic product (GDP),
fuel wood production, and the structural adjustment policy (SAP) had
significant impact on deforestation (p < 0.10). The growth rates of tuber
yield, other land, GDP, livestock population, human population, fuel
wood production and forestland also had significant effects on
agricultural land expansion (p< 0.10). Deforestation will decline if tuber
yield and GDP increase, while agricultural land expansion will result if
deforestation persists. The enforcement of regulations guiding the cutting
of forests, skill development for increased income generation, and the
development of agricultural research for increased crop yield and
environmental resource conservation will go a long way in combating
deforestation.
MODELLING THE EQUILIBRIUM REAL EXCHANGE
RATE IN CAMEROON: 1970-19961
By F.M. Baye and S.A. Khan, Faculty of Economics and Management, University of Yaounde II, Cameroon
ABSTRACT
Although Cameroon does not use her nominal exchange rate (NER) as a
policy instrument, it may still influence her real exchange rate via other
macroeconomic variables. In this context, this study examines the
determinants of the real exchange rate (RER), the path of equilibrium
RER and the degree of its misalignment in Cameroon. The results indicate
that the RER in Cameroon is mainly influenced by variables such as the
terms of trade, trade policy, government consumption, long-term foreign
debt, domestic credit and unsustainable macroeconomic policies. The
RER was found to be near equilibrium in some periods and misaligned in
other periods, experiencing both periods of overvaluation and
undervaluation. This study points out the importance of monitoring the
RER in order to better enhance the global competitiveness of the
economy. RER management in Cameroon requires the manipulation of
the identified variables. The indication is that, although Cameroon cannot
influence the RER through the nominal exchange rate, she could manage
it through other macroeconomic variables.
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