This document summarizes a research paper that investigates the effect of international joint ventures on Nigeria's economic growth. It provides background on international joint ventures and how they can contribute to knowledge transfer and economic improvement. The paper examines sectors in Nigeria that have witnessed joint ventures, such as oil and gas, health, and construction. It identifies challenges that can hinder joint venture success and economic growth, such as inadequate funding and infrastructure issues. The study aims to determine if joint ventures have significantly impacted GDP and the contributions of key sectors to GDP growth. It will use statistical analysis to test hypotheses related to these questions.
A project report on "Effect of Covid-19 on Indian Economy" and the measures should be taken on boosting the economy......of 2020 version....based on the individual perception and lots of research taken through the official sites.....hope this will help u in doing your own study & research.......Thank u✨
Impact of Commercial Banking on Nigeria Industrial Sectorijtsrd
This study examines the impact of commercial banking on Nigeria industrial sector using secondary data covering the period of 1980 2018 that were obtained from the Central Bank of Nigeria. The model's estimates were estimated via multiple econometric model of the ordinary least square to determine the effect of commercial bank credit to industrial sector, inflation, infrastructure, exchange rate, interest rate, labour force and bank capital on industrial sector proxied by industrial output. The results show that commercial bank credits to industrial sector, infrastructure, inflation, labour and bank capital have a positive impact on industrial sector while exchange rate has a negative impact on industrial sector but conforms to the a priori expectation. The study also found out that only commercial bank credits to industrial sector and infrastructure were significant in explaining industrial sector growth while other variables used in the study were all found to be non significant in explaining the growth rate of the industrial sector. The study concludes that adequate commercial banks credit intermediation in the industrial sector and government expenditure on the needed infrastructure will enhance the sector performance. Onwuteaka, Ifeoma Cecilia PhD | Molokwu, Ifeoma Mirian | Aju Gregory. C. ""Impact of Commercial Banking on Nigeria Industrial Sector"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23140.pdf
Paper URL: https://www.ijtsrd.com/management/-/23140/impact-of-commercial-banking-on-nigeria-industrial-sector/onwuteaka-ifeoma-cecilia-phd
Sustainability of MSME Fund of Central Bank of NigeriaKamakhya Nr. Singh
This paper evaluates the status of the Micro, Small and Medium Sector Enterprises (MSME) Development fund in Nigeria. It also analyses a few of the key constraints impeding the development of MSMEs in Nigeria and the role that the MSME Development Fund (MDF), created by the Central Bank of Nigeria(CBN), is expected to play in removing the most critical constraint of lack of adequate funding for MSMEs in Nigeria. For the MDF to have long term impact, there is no gainsaying that the MDF needs to be sustainable for all the stakeholders.
The objective of this paper is to examine the sustainability of the fund, given the socio-economic and financial conditions of Nigeria. The study takes into account the perspectives of Federal Government of Nigeria, the CBN, Participating Financial Institutions (PFIs) lending to the MSME clients and the MSME clients themselves.
The paper, proffers policy recommendations that could help to improve the sustainability of the Fund, enhance the uptake of MDF by PFIs so that the benefit of funding reach the targeted sector more efficiently and that could help larger number of MSMEs, especially, micro-enterprises, derive benefit from the MDF.
Slide deck for the Public Lecture by Deshal de Mel on "What's wrong with the Sri Lankan Economy". #1 talk from a series of talks hosted by the Advocata Institute.
A project report on "Effect of Covid-19 on Indian Economy" and the measures should be taken on boosting the economy......of 2020 version....based on the individual perception and lots of research taken through the official sites.....hope this will help u in doing your own study & research.......Thank u✨
Impact of Commercial Banking on Nigeria Industrial Sectorijtsrd
This study examines the impact of commercial banking on Nigeria industrial sector using secondary data covering the period of 1980 2018 that were obtained from the Central Bank of Nigeria. The model's estimates were estimated via multiple econometric model of the ordinary least square to determine the effect of commercial bank credit to industrial sector, inflation, infrastructure, exchange rate, interest rate, labour force and bank capital on industrial sector proxied by industrial output. The results show that commercial bank credits to industrial sector, infrastructure, inflation, labour and bank capital have a positive impact on industrial sector while exchange rate has a negative impact on industrial sector but conforms to the a priori expectation. The study also found out that only commercial bank credits to industrial sector and infrastructure were significant in explaining industrial sector growth while other variables used in the study were all found to be non significant in explaining the growth rate of the industrial sector. The study concludes that adequate commercial banks credit intermediation in the industrial sector and government expenditure on the needed infrastructure will enhance the sector performance. Onwuteaka, Ifeoma Cecilia PhD | Molokwu, Ifeoma Mirian | Aju Gregory. C. ""Impact of Commercial Banking on Nigeria Industrial Sector"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23140.pdf
Paper URL: https://www.ijtsrd.com/management/-/23140/impact-of-commercial-banking-on-nigeria-industrial-sector/onwuteaka-ifeoma-cecilia-phd
Sustainability of MSME Fund of Central Bank of NigeriaKamakhya Nr. Singh
This paper evaluates the status of the Micro, Small and Medium Sector Enterprises (MSME) Development fund in Nigeria. It also analyses a few of the key constraints impeding the development of MSMEs in Nigeria and the role that the MSME Development Fund (MDF), created by the Central Bank of Nigeria(CBN), is expected to play in removing the most critical constraint of lack of adequate funding for MSMEs in Nigeria. For the MDF to have long term impact, there is no gainsaying that the MDF needs to be sustainable for all the stakeholders.
The objective of this paper is to examine the sustainability of the fund, given the socio-economic and financial conditions of Nigeria. The study takes into account the perspectives of Federal Government of Nigeria, the CBN, Participating Financial Institutions (PFIs) lending to the MSME clients and the MSME clients themselves.
The paper, proffers policy recommendations that could help to improve the sustainability of the Fund, enhance the uptake of MDF by PFIs so that the benefit of funding reach the targeted sector more efficiently and that could help larger number of MSMEs, especially, micro-enterprises, derive benefit from the MDF.
Slide deck for the Public Lecture by Deshal de Mel on "What's wrong with the Sri Lankan Economy". #1 talk from a series of talks hosted by the Advocata Institute.
The CPD IRBD 2019 Team would like to register its gratitude to Professor Rehman Sobhan, Chairman, CPD for his advice and guidance in preparing this report.
The Team gratefully acknowledges the valuable support provided by Ms Anisatul Fatema Yousuf, Director, Dialogue and Communication Division, CPD and her team in preparing this report. Contribution of the CPD Administration and Finance Division is also highly appreciated. Assistance of A H M Ashrafuzzaman, Deputy Director IT; Mr Hamidul Hoque Mondal, Senior Administrative Associate; Ms Tahsin Sadia, Executive Associate; Ms Nafisa Yasmin, Executive Associate are particularly appreciated.
Concerned officials belonging to a number of institutions have extended valuable support to the CPD IRBD Team members. In this connection, the Team would like to register its sincere thanks to Bangladesh Bank (BB), Bangladesh Bureau of Statistics (BBS), Bangladesh Investment Development Authority (BIDA), Dhaka Stock Exchange (DSE), Export Promotion Bureau (EPB), Ministry of Finance (MoF), National Board of Revenue (NBR), and Planning Commission.
The CPD IRBD 2019 Team alone remains responsible for the analyses, interpretations and conclusions presented in this report.
More Details of the event: https://bit.ly/2MIcu0L
The growth and development of any nation is highly dependent on the level of infrastructure. Infrastructural decay has taken a big toll on the economic development of most Sub- Saharan African nations. This paper investigated the effect infrastructural decay on the growth of the manufacturing sector in Sub- Saharan Africa with particular reference to the Nigerian situation. The data necessary for this study were obtained from secondary sources. The results of unit root suggest that all the variables in the model are stationary. The ordinary least square regression with a coefficient of 0.92 revealed a strong positive relationship between the variables of interest. A co-integration test was performed on these variables to determine the long-run relationship between the variables. The results of causality tests suggest that electricity supply, transport infrastructure and inflation rate (the explanatory variables) jointly explain changes in the manufacturing sector performance. The result also reveals a one-way causation running from interest rate to manufacturing sector performance. The Johansen cointegration result reveals the existence of a common trend among the variables of interest. Electricity decay was found to have the greatest negative impact on the manufacturing sector’s financial performance and output followed by inflation and transportation. The government is therefore enjoined to continue the reform programmes across the infrastructural segments of the economy.
This slidedeck attempts to answer the question by evaluating lockdown easing strategies applied by other nations and recommends adaptations for Bangladesh to employ such strategies.
Self Reliant India Need, Pre and Post Pandemic scenarioJyotsna Prasad
This is a research paper about How India was before the covid 19 pandemic and how it would be after this ends. Where India Should be utilising its finances and how it should be managed to achieve the best.
Sri Lanka’s State Enterprises have burdened the taxpayer and have delivered little returns. Advocata's inaugural publication looks at the state of the state enterprises and looks at how they can be reformed.
Impact of COVID-19 on Indian Economy: 28th November 2020Sam Ghosh
Indian economy entered a technical recession with two consecutive quarters of GDP contraction in Q2 of FY 2020-21. Results released by the National Statistical Office shows that the GDP of India during the H1 of FY 2020-21 contracted by 15.7% at Constant (2011-12) Prices and 13.3% at Current Prices. While quarterly GDP in Q2 FY 2020-21 in rupee terms improved from Q1 FY 2020-21 by 23% at Constant Prices and 24% at Current Prices, it is still 7.5% and 4% lower than Q2 of FY 2019-20 at Constant and Current Prices respectively. The contraction was caused by a drastic drop in private consumption (which contributes around 60% of Indian GDP) and a drop in gross fixed capital formation.
The policy repo rate has been reduced by 115 basis points from the beginning of 2020 to record low levels. Apart from that, RBI is injecting liquidity through various Open Market Operations and Long Term Repo Operations. Currency with the public increased by ~20% from the end of 2019 to the end of October 2020. We can safely say that the Indian economy is flushed with liquidity.
Consumer inflation remains above the policy range of 4%+2%, and with a GDP contraction, the Indian economy is dealing with stagflation.
On the fiscal front, total monthly receipts remained lower than the same period last year for the whole Q1 and Q2 (April - September) FY 2020-21. October receipts show signs of improvement. Fiscal expenditure on the other hand was maintained at the same levels of FY 2019-20 in FY 2020-21 till October. The fiscal deficit stood at 119.7% of the Budget Estimates as of October 2020 due to lower receipts.
Credit growth remains sluggish especially due to lower credit uptake by the industry. Credit demand for smaller companies was low from the beginning of fiscal 2020-21 which improved after August. Credit uptake by the large corporates dropped after July 2020.
Household savings increased dramatically from Rs.5.32 lakh crores in Q4 of FY 2019-20 to Rs. 8.16 lakh crores in Q1 of FY 2020-21 - a more than 50% increase. Most of the increase in household savings resulted from an aversion to liabilities. It signifies that the households turned conservative about their finances to deal with impending financial distress.
The unemployment rate shot-up in April and May 2020 above 20% and moderated to below 10% levels after June 2020. Employees' Provident Fund records show healthy job creation in September 2020.......
PUBLIC PRIVATE PARTNERSHIP AND ECONOMIC GROWTH WITH SPECIAL REFERENCE TO INDI...IAEME Publication
In this era of globalization, public private partnership acts as an instrument for meeting the ever increasing demands with the resources as well as meeting quality with accessibility. In an economy where there is a mix of daunting challenges and opportunities PPP would definitely lay a solid foundation for economic growth and development and would help India become a major player in the global economy. A couple of evidence shows that PPP has a far reaching significance for rapidly advancing countries. The reason is that the development in all spheres has become a prime agenda. PPP is an approach if the government adopts and implement would facilitate the improvement of public services in a situation where the public sectors are facing budgetary constraints and again there is a scope of private investments in varied sectors.
These are slides from an economics revision webinar on aspects of the Indian economy.
Population: 1.3 billion; Urbanization: 33%
Life expectancy: 68 years (average)
HDI ranking 131st/188
Per capita GNI (PPP) $5,663
% living on less than $1.90 a day (PPP) 21%
% of population under-nourished: 15%
Remittance inflow (net) +3.3% of GDP
Gini coefficient: 0.35
Palma Ratio: 1.5
Successful diversification into manufacturing
Globally competitive in many service industries
Determinants of Business Performance in the Nigerian Manufacturing Sectorijtsrd
This study examines the determinants of business performance in the Nigerias manufacturing sector. The study was necessitated by the perceived declining performance of the Nigeria manufacturing sector. Secondary data covering the period 1980 2018 were sourced from the Central Bank of Nigeria. The model's estimates were estimated via multiple econometric model of the ordinary least square to ascertain the effect of macroeconomic variable Financial intermediation, Infrastructure, Market size, Exchange rate, Interest rate and Inflation rate on the business performance in the Nigerias manufacturing sector. From the result of the OLS, it was observed that financial intermediation, infrastructure and market size have a positive impact on manufacturing sector while exchange rate, interest rate and inflation rate have a negative impact on manufacturing sector in Nigeria. From the regression analysis, the results also show that all the variables conform to the a priori expectation of the study. With the exception of infrastructure and inflation rate, all other variables are statically significant which indicates that financial intermediation, market size, exchange rate, interest rate are good determinants of business performance in the Nigerian manufacturing sector. The study recommends that the energy sector needs to be overhauled especially the EEDC to supply just the sufficient energy to drive the economy. Painstaking and well coordinated macro economic policies with special references to the price level and exchange rate regime need to be put in place to ameliorate the business sector among others. Nwakoby, Nkiru Peace Ph.D | Dibua, Emmanuel Chijioke PhD | Ezeanolue Uju Scholastica ""Determinants of Business Performance in the Nigerian Manufacturing Sector"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23141.pdf
Paper URL: https://www.ijtsrd.com/management/operations-management/23141/determinants-of-business-performance-in-the-nigerian-manufacturing-sector/nwakoby-nkiru-peace-phd
The Economic growth rate of Indian Economy can be accelerated from the present levels. It requires the co-operation from all segments of the Indian society.
Macroeconomic Variables and Manufacturing Sector Output in Nigeriaijtsrd
Management of macroencomic variables has been noted as instrumental to a well performing manufacturing sector. This study thus examined the effect of macroencomic variables on the manufacturing sector in Nigeria within a liberalised economic era of 1986 to 2018. The Autoregressive Distributive Lag model was employed for data analysis. The results revealed that macroeconomic variables has 93 significant short run policy effect but no significant long run effects on manufacturing sector output in Nigeria. The endogenous dynamics of manufacturing sector previous year outputs exerted a significance influence on the macroeconomic variables long run relationship effect on current year. The explanatory variables suggested that money supply M2 , interest rate INTR and credit to private sector CPS exerted positive effects on manufacturing sector output at short term trends. The study thus posits that macroeconomic variables have varying levels of effects on the manufacturing sectors of Nigerian economy. The monetary authority should employ the monetary policy stance in a pattern that increases money supply in order to boost investment in manufacturing sector which would eventual bring about improved output to Nigeria. Dr. Loretta Anayo Ozuah "Macroeconomic Variables and Manufacturing Sector Output in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38420.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38420/macroeconomic-variables-and-manufacturing-sector-output-in-nigeria/dr-loretta-anayo-ozuah
This study examined the impact of Bank credits to agricultural and manufacturing sectors on economic growth in Nigeria using annual time series data from 1970-2013. Using co-integration and error correction mechanism for the analysis, the study revealed that a long run relationship exists between Bank credits to agricultural and manufacturing sectors and economic growth. Given the error correction mechanism results, the study showed that Bank credits to agricultural sector exhibited an insignificant negative impact on economic growth while Bank credits to manufacturing sector exhibited a negative significant impact on economic growth in Nigeria. Based on these findings, the study recommends among others: Bank Credits to the Agricultural and Manufacturing Sectors should be properly monitored to ensure that funds meant for agricultural and manufacturing activities are not diverted for other purposes, Intending recipients of these Bank credits to the agricultural and manufacturing sectors should be made to undergo entrepreneurial training and how to pay back as at when due, so as to reduce the risks associated in giving out these Credits to the Agricultural and Manufacturing Sectors entrepreneurs.
Economic impact of COVID-19 lock down on small medium enterprise (smes) in la...SubmissionResearchpa
The effect of COVID-19 has negative consequence which has been an invisible enemy raging the entire world populace leading to a global economic crisis. Business across the globe are feeling the negative outcome of the COVID 19 pandemic threatening their ongoing economic daily activities. SMEs in Nigeria are not left out in the share of this negative pandemic, limiting their survival existence. The shutdown of economic activities has greatly affected SMEs in Nigeria. This has led to employees under SMEs lose their jobs. It was concluded that adequate measures needs to be taken by government to cushion the negative effect of COVID 19 in collapsing the existence of SMEs. by Aribisala, and Oluwadamilare Olufolarin 2020. Economic impact of COVID-19 lock down on small medium enterprise (smes) in lagos state. International Journal on Integrated Education. 3, 7 (Jul. 2020), 62-68. DOI:https://doi.org/10.31149/ijie.v3i7.490. https://journals.researchparks.org/index.php/IJIE/article/view/490/467 https://journals.researchparks.org/index.php/IJIE/article/view/490
The CPD IRBD 2019 Team would like to register its gratitude to Professor Rehman Sobhan, Chairman, CPD for his advice and guidance in preparing this report.
The Team gratefully acknowledges the valuable support provided by Ms Anisatul Fatema Yousuf, Director, Dialogue and Communication Division, CPD and her team in preparing this report. Contribution of the CPD Administration and Finance Division is also highly appreciated. Assistance of A H M Ashrafuzzaman, Deputy Director IT; Mr Hamidul Hoque Mondal, Senior Administrative Associate; Ms Tahsin Sadia, Executive Associate; Ms Nafisa Yasmin, Executive Associate are particularly appreciated.
Concerned officials belonging to a number of institutions have extended valuable support to the CPD IRBD Team members. In this connection, the Team would like to register its sincere thanks to Bangladesh Bank (BB), Bangladesh Bureau of Statistics (BBS), Bangladesh Investment Development Authority (BIDA), Dhaka Stock Exchange (DSE), Export Promotion Bureau (EPB), Ministry of Finance (MoF), National Board of Revenue (NBR), and Planning Commission.
The CPD IRBD 2019 Team alone remains responsible for the analyses, interpretations and conclusions presented in this report.
More Details of the event: https://bit.ly/2MIcu0L
The growth and development of any nation is highly dependent on the level of infrastructure. Infrastructural decay has taken a big toll on the economic development of most Sub- Saharan African nations. This paper investigated the effect infrastructural decay on the growth of the manufacturing sector in Sub- Saharan Africa with particular reference to the Nigerian situation. The data necessary for this study were obtained from secondary sources. The results of unit root suggest that all the variables in the model are stationary. The ordinary least square regression with a coefficient of 0.92 revealed a strong positive relationship between the variables of interest. A co-integration test was performed on these variables to determine the long-run relationship between the variables. The results of causality tests suggest that electricity supply, transport infrastructure and inflation rate (the explanatory variables) jointly explain changes in the manufacturing sector performance. The result also reveals a one-way causation running from interest rate to manufacturing sector performance. The Johansen cointegration result reveals the existence of a common trend among the variables of interest. Electricity decay was found to have the greatest negative impact on the manufacturing sector’s financial performance and output followed by inflation and transportation. The government is therefore enjoined to continue the reform programmes across the infrastructural segments of the economy.
This slidedeck attempts to answer the question by evaluating lockdown easing strategies applied by other nations and recommends adaptations for Bangladesh to employ such strategies.
Self Reliant India Need, Pre and Post Pandemic scenarioJyotsna Prasad
This is a research paper about How India was before the covid 19 pandemic and how it would be after this ends. Where India Should be utilising its finances and how it should be managed to achieve the best.
Sri Lanka’s State Enterprises have burdened the taxpayer and have delivered little returns. Advocata's inaugural publication looks at the state of the state enterprises and looks at how they can be reformed.
Impact of COVID-19 on Indian Economy: 28th November 2020Sam Ghosh
Indian economy entered a technical recession with two consecutive quarters of GDP contraction in Q2 of FY 2020-21. Results released by the National Statistical Office shows that the GDP of India during the H1 of FY 2020-21 contracted by 15.7% at Constant (2011-12) Prices and 13.3% at Current Prices. While quarterly GDP in Q2 FY 2020-21 in rupee terms improved from Q1 FY 2020-21 by 23% at Constant Prices and 24% at Current Prices, it is still 7.5% and 4% lower than Q2 of FY 2019-20 at Constant and Current Prices respectively. The contraction was caused by a drastic drop in private consumption (which contributes around 60% of Indian GDP) and a drop in gross fixed capital formation.
The policy repo rate has been reduced by 115 basis points from the beginning of 2020 to record low levels. Apart from that, RBI is injecting liquidity through various Open Market Operations and Long Term Repo Operations. Currency with the public increased by ~20% from the end of 2019 to the end of October 2020. We can safely say that the Indian economy is flushed with liquidity.
Consumer inflation remains above the policy range of 4%+2%, and with a GDP contraction, the Indian economy is dealing with stagflation.
On the fiscal front, total monthly receipts remained lower than the same period last year for the whole Q1 and Q2 (April - September) FY 2020-21. October receipts show signs of improvement. Fiscal expenditure on the other hand was maintained at the same levels of FY 2019-20 in FY 2020-21 till October. The fiscal deficit stood at 119.7% of the Budget Estimates as of October 2020 due to lower receipts.
Credit growth remains sluggish especially due to lower credit uptake by the industry. Credit demand for smaller companies was low from the beginning of fiscal 2020-21 which improved after August. Credit uptake by the large corporates dropped after July 2020.
Household savings increased dramatically from Rs.5.32 lakh crores in Q4 of FY 2019-20 to Rs. 8.16 lakh crores in Q1 of FY 2020-21 - a more than 50% increase. Most of the increase in household savings resulted from an aversion to liabilities. It signifies that the households turned conservative about their finances to deal with impending financial distress.
The unemployment rate shot-up in April and May 2020 above 20% and moderated to below 10% levels after June 2020. Employees' Provident Fund records show healthy job creation in September 2020.......
PUBLIC PRIVATE PARTNERSHIP AND ECONOMIC GROWTH WITH SPECIAL REFERENCE TO INDI...IAEME Publication
In this era of globalization, public private partnership acts as an instrument for meeting the ever increasing demands with the resources as well as meeting quality with accessibility. In an economy where there is a mix of daunting challenges and opportunities PPP would definitely lay a solid foundation for economic growth and development and would help India become a major player in the global economy. A couple of evidence shows that PPP has a far reaching significance for rapidly advancing countries. The reason is that the development in all spheres has become a prime agenda. PPP is an approach if the government adopts and implement would facilitate the improvement of public services in a situation where the public sectors are facing budgetary constraints and again there is a scope of private investments in varied sectors.
These are slides from an economics revision webinar on aspects of the Indian economy.
Population: 1.3 billion; Urbanization: 33%
Life expectancy: 68 years (average)
HDI ranking 131st/188
Per capita GNI (PPP) $5,663
% living on less than $1.90 a day (PPP) 21%
% of population under-nourished: 15%
Remittance inflow (net) +3.3% of GDP
Gini coefficient: 0.35
Palma Ratio: 1.5
Successful diversification into manufacturing
Globally competitive in many service industries
Determinants of Business Performance in the Nigerian Manufacturing Sectorijtsrd
This study examines the determinants of business performance in the Nigerias manufacturing sector. The study was necessitated by the perceived declining performance of the Nigeria manufacturing sector. Secondary data covering the period 1980 2018 were sourced from the Central Bank of Nigeria. The model's estimates were estimated via multiple econometric model of the ordinary least square to ascertain the effect of macroeconomic variable Financial intermediation, Infrastructure, Market size, Exchange rate, Interest rate and Inflation rate on the business performance in the Nigerias manufacturing sector. From the result of the OLS, it was observed that financial intermediation, infrastructure and market size have a positive impact on manufacturing sector while exchange rate, interest rate and inflation rate have a negative impact on manufacturing sector in Nigeria. From the regression analysis, the results also show that all the variables conform to the a priori expectation of the study. With the exception of infrastructure and inflation rate, all other variables are statically significant which indicates that financial intermediation, market size, exchange rate, interest rate are good determinants of business performance in the Nigerian manufacturing sector. The study recommends that the energy sector needs to be overhauled especially the EEDC to supply just the sufficient energy to drive the economy. Painstaking and well coordinated macro economic policies with special references to the price level and exchange rate regime need to be put in place to ameliorate the business sector among others. Nwakoby, Nkiru Peace Ph.D | Dibua, Emmanuel Chijioke PhD | Ezeanolue Uju Scholastica ""Determinants of Business Performance in the Nigerian Manufacturing Sector"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23141.pdf
Paper URL: https://www.ijtsrd.com/management/operations-management/23141/determinants-of-business-performance-in-the-nigerian-manufacturing-sector/nwakoby-nkiru-peace-phd
The Economic growth rate of Indian Economy can be accelerated from the present levels. It requires the co-operation from all segments of the Indian society.
Macroeconomic Variables and Manufacturing Sector Output in Nigeriaijtsrd
Management of macroencomic variables has been noted as instrumental to a well performing manufacturing sector. This study thus examined the effect of macroencomic variables on the manufacturing sector in Nigeria within a liberalised economic era of 1986 to 2018. The Autoregressive Distributive Lag model was employed for data analysis. The results revealed that macroeconomic variables has 93 significant short run policy effect but no significant long run effects on manufacturing sector output in Nigeria. The endogenous dynamics of manufacturing sector previous year outputs exerted a significance influence on the macroeconomic variables long run relationship effect on current year. The explanatory variables suggested that money supply M2 , interest rate INTR and credit to private sector CPS exerted positive effects on manufacturing sector output at short term trends. The study thus posits that macroeconomic variables have varying levels of effects on the manufacturing sectors of Nigerian economy. The monetary authority should employ the monetary policy stance in a pattern that increases money supply in order to boost investment in manufacturing sector which would eventual bring about improved output to Nigeria. Dr. Loretta Anayo Ozuah "Macroeconomic Variables and Manufacturing Sector Output in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38420.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38420/macroeconomic-variables-and-manufacturing-sector-output-in-nigeria/dr-loretta-anayo-ozuah
This study examined the impact of Bank credits to agricultural and manufacturing sectors on economic growth in Nigeria using annual time series data from 1970-2013. Using co-integration and error correction mechanism for the analysis, the study revealed that a long run relationship exists between Bank credits to agricultural and manufacturing sectors and economic growth. Given the error correction mechanism results, the study showed that Bank credits to agricultural sector exhibited an insignificant negative impact on economic growth while Bank credits to manufacturing sector exhibited a negative significant impact on economic growth in Nigeria. Based on these findings, the study recommends among others: Bank Credits to the Agricultural and Manufacturing Sectors should be properly monitored to ensure that funds meant for agricultural and manufacturing activities are not diverted for other purposes, Intending recipients of these Bank credits to the agricultural and manufacturing sectors should be made to undergo entrepreneurial training and how to pay back as at when due, so as to reduce the risks associated in giving out these Credits to the Agricultural and Manufacturing Sectors entrepreneurs.
Economic impact of COVID-19 lock down on small medium enterprise (smes) in la...SubmissionResearchpa
The effect of COVID-19 has negative consequence which has been an invisible enemy raging the entire world populace leading to a global economic crisis. Business across the globe are feeling the negative outcome of the COVID 19 pandemic threatening their ongoing economic daily activities. SMEs in Nigeria are not left out in the share of this negative pandemic, limiting their survival existence. The shutdown of economic activities has greatly affected SMEs in Nigeria. This has led to employees under SMEs lose their jobs. It was concluded that adequate measures needs to be taken by government to cushion the negative effect of COVID 19 in collapsing the existence of SMEs. by Aribisala, and Oluwadamilare Olufolarin 2020. Economic impact of COVID-19 lock down on small medium enterprise (smes) in lagos state. International Journal on Integrated Education. 3, 7 (Jul. 2020), 62-68. DOI:https://doi.org/10.31149/ijie.v3i7.490. https://journals.researchparks.org/index.php/IJIE/article/view/490/467 https://journals.researchparks.org/index.php/IJIE/article/view/490
DOES PUBLIC BORROWINGS CROWD OUT PRIVATE SECTOR CREDIT? EVIDENCE FROM NIGERIAAJHSSR Journal
ABSTRACT: The performance of the private sector in Nigeria has been declining,due to constrained financial
resources. Thisstudyemployed Autoregressive Distributed Lag Model (bounds) test to investigate the impact of
government borrowing on the availability of credit to the private sector in Nigeria, using quarterly data from the
period2000 to 2021.The findings from the study revealed that government borrowings crowds out private sector
credit in Nigeria.Therefore,the study recommended that, since the private sector is regarded as the engine of
growth in any economy, the government should uphold a fiscal policy framework and debt policy that will
continuously support the growth of the private sector in Nigeria. Government borrowings should be on need-basis
andshould embark on more capital projects that would create employment opportunities for the growing labour
force. This, in the short and long run would lead to increased economic growth.
KEYWORDS: Government, private sector, borrowings, fiscal deficit, expenditure, revenue,credit,economy, and
growth.
THE STATE OF STARTUP ECOSYSTEM - INDIA x JAPAN 2023Joshua Flannery
This document is the result of a research and analysis by Ms. Sakshi Sharma, overseen and supervised by Joshua Flannery, CEO, Innovation Dojo Japan LLC.
Enquiries: joshua@innovationdojo.com.au
www.innovationdojo.com.au
Effect of FDI Inflows on Real Sector Economy of Nigeriaijtsrd
The study have examined the effect of sectorial FDI to economic growth of Nigeria within 34 year period spanning 1987 to 2020. FDI was disaggregated into four variables being agriculture, construction, manufacturing, and oil and gas as the independent variable. Economic growth was the dependent variable. The data were obtained from CBN statistical bulletin and Annual reports. The repression analysed using the ARDL technique. The results showed that FDI to various sector of the economy has significant long run effect on economic growth of Nigeria. Furthermore, The short run dynamic results revealed that 1 FDI to agriculture has interjecting effect with positive effect in the first lag 1 and successive negative effects in lags 2 and 4 2 FDI to construction have a significant positive effect on economic growth 3 FDI to manufacturing sector has negative effect on economic growth and 4 FDI to oil and gas sector has positive effect on economic growth. The study posits that FDI inflows is a veritable driver to economic growth to developing economies like Nigeria. Among the recommendations of this study is that the government should encourage local investment into the agriculture and manufacturing to cushion the adverse impact of FDI to Nigeria growth. Ositadimma Victor Okpalla | Sylvia Chikodi Anaele | Ifeanyi Jude Ekwunife "Effect of FDI Inflows on Real Sector Economy of Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd51910.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/51910/effect-of-fdi-inflows-on-real-sector-economy-of-nigeria/ositadimma-victor-okpalla
The Impact of Trade and Debt on Nigeria Agribusiness Sector Output (1970-2010)IOSR Journals
This paper analyzed the impact of trade and debt on Nigeria agribusiness sector output from 1970-
2010. Trend analysis was used to examine the trend of agribusiness sector output, trade and debt. The study
employed OLS estimates and found that import, external debt and domestic debt had influence on the
agribusiness output but the OLS estimates was not the blue-best linear unbiased estimator, hence the need for
unit root analysis on the series. It was found that the series was stationary at second difference using the
Augmented Dickey-Fuller Test, with three cointegrating equations existing among the linear combinations using
Johansen’s Multivariate Cointegration Test. The error correction estimates indicates that the variables had no
short run and long run relationship between the Agribusiness sector output except for external debt that had a
long run relationship. Overall, external debt, domestic debt and export accounted for 70.4, 97.2, 85.9 and 74.9
percent of the variation in agribusiness sector output. Based on the findings it is recommended policy maker
should adequately consider the variables as they were found to have influence on the agribusiness sector.
global perspectives(mgmt-(8110)SEC-7(SEM-2019’FALL’)ASSIGNMENT.docxshericehewat
global perspectives(mgmt-(8110)SEC-7(SEM-2019’FALL’)
ASSIGNMENT-Research Essay
Research topic-EMERGING MARKET IN INDIA
Thesis statement - “My research paper will focus upon different aspects of Emerging market as well as its impact on Indian economy. “As proposed in essay proposal I will first focus on the concept of Emerging markets and how they are having an impact on global businesses.
· What is Emerging Market?
= After a proper research I figured that emerging markets concept reside in developing countries. Wherein these emerging or underdeveloped economies are making a shift from their traditional economies which was originally residing on resource based industries like agriculture, oil or export of raw materials. These economies are growing at a very fast pace to more productive capacities where they are attracting foreign capital and are rapidly industrializing. Critically, they are moving to free/ mixed economies and are becoming more integrated with the global economy with its increase in trade volume, increase in liquidity, equity market. Not only this, they are also focusing on improved infrastructure: as at present they do not have such robust infrastructure to support fast-paced growth. Some other general indicators are high growth rate, competitiveness, high ROI with high risk rate, unified currency and stocks, low-to-middle per capita income and are some social instability. (Sraders, 2018) (Chappelow, 2019) (Amadeo, 2019)
Some of the characteristics of emerging markets are given below: -
1)Low to middle average per capita Income-Emerging markets have low to middle average per capita income depicting low living standards and a lot of scope for improvement. Unemployment usually in these economies is more and more and more people are deployed on single task, thus, resulting in lower wages for the workforce.
2)High potential for growth-These economies has high potential for growth, their market requires lot of capital investment. These market owing to their scope for high growth attract more of foreign investment. These economies provide higher-than-average returns for investors.
3)High volatility- These economies are highly volatile, they are very much subjected and vulnerable to social, political and economical changes. As these economies are very much reliant on agriculture and resource based they can be severely impacted by natural disaster, external price shocks and domestic policy instability leading a groundwork for future development.
4)Currency Swings- Emerging markets face more volatile to currency swings in comparison to U.S dollar that’s because they do not have enough power to influence such movements. These fluctuations also result in commodities swing as of oil and food.
5)High growth rate associated with High risk- These economies owing to huge potential are growing fast and are rapidly industrializing resulting in higher growth rate even in comparison to some of the developed economies. For e.g.: -growth rate in ...
Government Capital Expenditure and Manufacturing Sector Output in Nigeriaijtsrd
The study explored the effect of government capital expenditure on manufacturing sector output in Nigeria using time series data from 1981 to 2018. The manufacturing sector output taken as the total volume of inflation adjusted value of output produced by all the manufacturing industries was the dependent variable. The government capital expenditure was disaggregated into four functional expenses as capital expenditures on the road, health, communication, and power electricity . The annual time series data employed were analysed for unit roots using the augmented Dickey Fuller ADF , and regression techniques based on the Autoregressive Distributive Lag ARDL to determine the relationships. The findings revealed that capital expenditure on road infrastructure has a short run positive significant effect on manufacturing sector output, but an insignificant adverse impact on manufacturing sector output in Nigeria capital expenditure on health has significant impacts on the manufacturing sector output in Nigeria driving at negative in the short run and then positive in the long run capital expenditure on telecommunication has a significant positive impact on manufacturing sector output in Nigeria both in the long run and short run whereas capital expenditure on the power supply has an insignificant negative effect in long and short periods. The study hence recommended increased expenditure on road, health, electricity and telecommunication to boost the manufacturing sector propensity for growth and productivity. Okpala, Osita Victor "Government Capital Expenditure and Manufacturing Sector Output in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-3 , April 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49683.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/49683/government-capital-expenditure-and-manufacturing-sector-output-in-nigeria/okpala-osita-victor
The Capital Market and Its Impact on Ndustrial Production in NigeriaIOSR Journals
The possession of industrial capabilities by an economy is considered an important potential for improved economic development. Indeed one of the distinguishing factors between developed and developing economies is the acquisition of industrial know-how. The emerging pattern of the institutional framework for the Nigeria which brought the capital market into existence has through the succeeding centuries continued to support the institution and justify its existence. The capital market is viewed as a major catalyst to industrial growth and indeed economic development. The benefit of appropriate industrial base for an economy lies in its combination of suitable technology management techniques and other resources in order to move the economy from a traditional and low level of production to a more automated and efficient system of mass processing and manufacture of goods and services. Unfortunately, the problem with industrial growth in Nigeria is largely due to the inability of firms to access long-term funds which the Nigerian capital marked should be providing. This unfortunately is stemmed from the fact that the Nigerian capital market has not been fully developed to adequately provide enough of such funds to the needy organizations. It was in line with the above that the study sought to determine the impact of the Nigerian capital market on the industrial sector component of the Nigerian gross domestic product, ascertain the impact of the Nigerian capital market on industrial loans issued by stock exchange and determine the impact of the Nigerian capital market on average capacity utilization rates of the Nigerian manufacturing sector. An ex-post facto research design was adopted using secondary data to determine the level of impact on the growth of the Nigerian industrial sector for the period 1990 – 2009. The ordinary least square (OLS) estimation technique was adopted using SPSS version 16.0) statistical computers software to evaluate the three objectives. The results showed (i) a positive significant impact of the market capitalization on industrial sector component of the gross domestic product and (ii) a positive significant impact of the market capitalization on average capacity utilization rates of the manufacturing sector. The result however showed (iii) a positive but non- significant impact of the annual market capitalization on industrial loans of the stock exchange. It was therefore concluded that every effort must be made by government and market operators to make the market viable and result oriented to further improve the economy
Economic Development Implications of the International Financial Institutions...AJHSSR Journal
ABSTRACT : Employment generation has remained central to the policy goal of economic development in
Nigeria. In view of this, an empirical investigation into the link between international financial institutions loans
and employment rate was carried out in this study. Specifically, the effects of loans from the International
Finance Corporation (IFC), International Development Association (IDA), Paris Club and African Development
Bank on employment rate were examined. The data for the variables were obtained from the United Nations
Development Programme Human Development Report, National Bureau of Statistics, World Development
Indicators and International Debt Statistics. The empirical investigation followed an ex post facto research
design with the application of descriptive statistics, unit root and cointegration tests as well as error correction
model and Granger causality tests as the data analysis techniques. The unit root test results revealed that all the
variables are stationary at first difference, which justifies the test for cointegration using the Johansen method. It
was found from the cointegration test results that long run relationship exists among the variables in the model.
The parsimonious ECM revealed that IDA and African Development Bank loans have a significant positive
effect on employment rate. This highlights the substantial role played these funding sources in generating
employment in Nigeria. On the contrary, International Finance Corporation and Paris Club do not have any
significant effect on employment rate. Owing to the findings, it is recommended that loans available to Nigeria
from the international development association should be channeled to investments in critical infrastructure and
agriculture development to generate employment and achieve economic development.
KEYWORDS: Employment generation, institutions loans, International Finance Corporation, IDA, Paris Club
and African Development Bank
Capital Inflows and Economic Growth A Comperative Studyiosrjce
This study examines the impact of capital inflows on economic growth of developing* economies; the
case of Nigeria Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the
huge inflows of foreign capita! in developing economies over the years have transmitted to real economic
growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while
Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The
casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to
estimate the model. The finding reveals that capital inflows have significant impact on the economic growth of
the three countries. In Nigeria and Ghana, foreign direct and portfolio investment and foreign borrowings have
significant and positive impact on economic growth. Workers' remittances significantly and positively related to
the economic growth of the three countries. The enabling environment should be created in the Developing
Countries to encourage more inflow of foreign investments and workers remittances while India specifically
should channel their foreign aids to productive ends. This will help in dosing the savings-investment gap and
encourage economic growth in these countries. The study signifies that capital inflows is indispensable in
dosing the savings-investment gap required for economic growth of developing countries.
Developmental Effect of the Rising Debt Level in Nigeriaijtsrd
Background Nigerian economy is bedeviled by dwindling economy, low per capita income, poor infrastructural development, high unemployment rates, inadequate basic amenities, falling growth rates of GDP and recently, rated the poverty headquarters of the world which calls for empirical investigation as a way forward to resuscitate the economy.Aim The study investigated the effect of debt level on the economic development of Nigeria from 1999 to 2021. Materials and Methods Two research questions were developed to guide the study. Also, two hypotheses were formulated for the study. Ex post facto research design was adopted. The study used time series data to analyse public debt level trends in Nigeria compared to GDP growth rate over twenty three 23 years, spanning from the year 1999 to 2021. Ordinary least square regression, unit root test, and Johansen co integration test were used to analyse the data collected from Central Bank of Nigeria Statistical Bulletin. Results The results of the study showed that domestic debt level significantly and positively affects the gross domestic product performance in Nigeria. Also, the study found that external debt level significantly and negatively influences the gross domestic product of Nigeria. Conclusion The study concludes that debt level domestic and external have significant effect on Nigerian gross domestic product.Recommendation It was recommended that the government should resort to domestic debts up to sustainable debt levels that do not crowd out development and social programmes to prevent issues with debt overhang, government borrowing from international markets should be utilized effectively and concessionary loans rather than commercial loans should be sought after. Tochukwu Akaegbobi | Okeke Onyekachi, N | Onyeogubalu Ogochukwu, N "Developmental Effect of the Rising Debt Level in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd57480.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/57480/developmental-effect-of-the-rising-debt-level-in-nigeria/tochukwu-akaegbobi
Content marketing and customer loyalty of new generation banks in abia and im...CharlesUgwuegbu
The study examined content marketing and customer loyalty in new generation banks in Abia and Imo States. It was done to evaluate the relationship between content marketing and customer loyalty of new generation banks. The study adopted the survey research design. The studied obtained data from both primary and secondary sources and employed the purposive sampling technique was adopted in the study The Cronbach Alpha Statistic was used to acquire a value of 0.70 as the instrument reliability ratio. The study employed the descriptive statistic and correlation analysis for Data Analysis and Hypothesis Testing. The researcher used SPSS Software for the analysis. The findings show that there is a strong significant relationship between content marketing and customer loyalty in the new generation banks. It was concluded that content marketing enhanced customer loyalty. The study recommended that the management of banks should not develop lukewarm attitudes to content marketing to avoid undesirable effects of such on patronage.
Provision of educational facilities and host communities restiveness sjbssCharlesUgwuegbu
This study evaluated Provision of Educational Facilities and Host Communities Restiveness focusing on Nigerian Breweries (NB) PLC Aba, Abia state and Nigerian Bottling Company (NBC) Limited Irete Owerri, Imo state. It has been observed that there has been conflicts and rancour between the host communities and these companies operating in their areas. These disturbances result in disruptions in the Companies’ production and marketing activities. This study, therefore, examined if there is a relationship between provisions of Educational Facilities as a (CSR) to the host communities and Community Restiveness (Reactions) as the attitude of the host community. If there is, to what extent? This study therefore examined one of the corporate social responsibilities (Provisions of Educational Facilities which includes tables, chairs, lockers, writing and reading materials, renovation of dilapidated school buildings and giving of scholarships.) and how the host community reacted (reduction/increase in restiveness which includes demonstrations, obstruction of productive activities by the host community with such provisions.) Based on a methodological approach, a convenience sample of 614 respondents was selected. The hypothesis was tested using correlation coefficients with the SPSS package. Findings show no much remarkable presence of provisions of educational facilities by the companies under study. The analysis shows that provisions of educational facilities have a negative relationship with the dependent variable and as such engaging in restiveness, is not a favourable approach to compel the companies to provide the needed educational facilities in the host communities. There were also indications that Social Responsibility activities by the companies were mostly unplanned, uncoordinated and unsatisfactory. Based on the findings, the study recommended that Corporate Social Responsibilities (CSR) be incorporated as part of the Company’s Strategic business policies. The study further recommended that government should promulgate and enforce laws which will make it compulsory for all business organizations to be socially responsible for the development of the communities where they operate.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Chapter 3 - Islamic Banking Products and Services.pptx
International joint venture
1. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 1
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
EFFECT OF INTERNATIONAL JOINT VENTURES ON THE GROWTH OF NIGERIA
ECONOMY
Ugwuegbu Charles, Agbwumba Adolphus, Onwudiwe Uju and Opara Darlington
Discipline: Business Management Imo State University Nigeria
Abstract:
Economic stagnation can be unlocked through International Joint Ventures especially when the
right model is formed and well implemented. The study investigated the effect of International Joint
Ventures (IJV) on the growth of the Nigeria economy specifically by investigating the contribution
of various sectors that have witnessed joint venture (industry, service, and construction) to the
growth of the GDP. The study went further to identify factors such as infrastructural decay,
inadequate funding, and insecurity as factors affecting the economic growth of the nation. The study
also looked at investment opportunities in the non-oil sector which can be harnessed through IJV.
In testing the hypothesis, the study used secondary data obtained from the statistical bulletin of the
Central bank of Nigeria (CBN) in investigating the effect of international Joint Ventures on the
economic growth of Nigeria. In order to find empirical evidence, the study adopted the T-Test
statistic and multiple regression analysis. The findings revealed that there exists a statistical
difference in the post IJV GDP and GDP. The regression analysis results also reviewed that two
sectors (industry & service) which have witnessed IJV have contributed significantly to the growth
of the economy while the construction sector contribution is insignificant. The study, therefore,
recommends that infrastructural decay should be paid attention to, for it is a factor that hinders
growth and attracts foreign direct investment. Also, the non-oil sectors have the potential for growth
which can be harnessed through JV.
Keywords: Joint Ventures, Growth, Nigeria Economy.
1.0 Introduction
1.1 Background of the study
The growth of a nation’s economy depends on the contribution of some strategic sectors like oil
& gas, construction, health, agriculture, food & beverages, etc. These sectors of the economy
2. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 2
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
contribute significantly to the GDP of any nation. According to Wikipedia, an international joint
venture (IJV) occurs when two businesses based in two or more countries form a partnership. A
company that wants to explore international trade without taking on the full responsibilities of
cross-border business transactions has the option of forming a joint venture with a foreign partner.
International investors (https://en.wikipedia.org/wiki/International_Joint_Venture) are entering into a
joint venture minimize the risk that comes with an outright acquisition of a business. IJVs aid
companies to form strategic alliances, which allow them to gain a competitive advantage through
access to a partner’s resources, including markets, technologies, capital, and people. International
joint ventures are viewed as a practical vehicle for knowledge transfer, such as technology transfer,
from multinational expertise to local companies, and such knowledge transfer can contribute to
the performance improvement of local companies and improve their economy. Within IJVs one or
more of the parties is located where the operations of the IJV take place and also involve a local
and foreign company (https://en.wikipedia.org/wiki/International_Joint_Venture).
A joint venture in Nigeria has been more pronounced in the upstream and downstream sector due
to the importance of the sector to the Nigeria economy. The quest for economic growth has led to
JV where the Nigeria government through NNPC entered into joint venture with International Oil
Companies (IOC) operating in the country. The parties are; Shell, Chevron, Mobil, Agip, ELF,
Texaco, etc. In the agreement, NNPC holds 55% equity share, ShellPetroleum Development
Company of Nigeria Limited (SPDC) holds (30%), ELF (10%) and AGIP (5%). For Chevron,
NNPC holds 60% and the remaining 40% goes to Chevron Nigeria Limited. Between Mobil and
NNPC is 40%:60%, for AGIP, NNPC holds 60%, AGIP 20%, and Philip Petroleum 20%. Between
ELF and NNPC is 40%:60%. For Texaco Petroleum Company of Nigeria unlimited, NNPC holds
60%, Texaco 20% and Chevron 20% (Business News, 2017).
The health sector also witnessed a joint venture between the FG and May & Baker (M&B) for the
production of Vaccines for mothers and children. In the agreement, FG through the Federal
Ministry of Health will hold 49% stake representing N1.2b equity contribution while M&B
contributes 1.3b as equity representing 51%. (Daily Trust, 2017). The JV will reduce the
3. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 3
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
importation of vaccines into the country which has significant benefits to the economy. In 2015,
FG entered into Joint Venture with China Railway Construction Corporation (CRCC) to construct
a rail line in Kano at the sum of $1.85 billion. The rail, with a total length of 74.3
(https://www.youtube.com/watch?v=R3L0Fk0wEuk) kilometers, is expected to travel at a speed of 100
kilometers per hour. It is believed when completed, will boost economic activities).
1.2 Statement of the Problem
Pitfalls associated with JVs include problems associated with sharing proprietary know-how.
Many firms fear a “Trojan Horse” situation in which a partner might gain access to necessary
technology and then exit the venture, setting itself up a competitor. Other problems include
improper fit between the joint venture parents or wrong choice of partner; strategic and cultural
mismatch; and lack of cooperation from one partner. Many challenges are rocking JV in Nigeria,
one of which is the inability of partners to honor the obligations in the contract. Before the new
implemented funding mechanism framework by FG through the NNPC with IOCs, poor funding
threatened NNPC joint venture. As at 2015, NNPC was unable to pay $5b (N100M) as cash call
to its joint partners (Shell, Chevron, Agip, ELF, Texaco, etc) due to falling in oil revenue (Business
News, 2017). The inability to settle its debt (Federal government) affected projects meant to ramp
up production from existing fields. The question that this study seeks to answer is; will the FG
through her agencies be able to honor and fulfill its responsibilities and roles in the various JV
entered into like that of May & Baker, CRCC, IOCs, etc? For it is when both parties play their
roles that its benefits (JV) will be felt in the economy. Another challenge is that the growth of the
Nigeria economy depends not on the oil sector alone but the non-oil sector, particularly
construction, hotels, telecommunications wholesale/retail trade, etc. Corruption and
mismanagement have hindered the growth of the non-oil sector because money gotten from the oil
sector has not been invested in the non-oil sector. These sectors are yet to draw the attention of
International Joint Venture. Economic growth of any nation also lies in the power sector. In 2009-
2013, Nigeria witnessed an exodus of many Multinational firms closed their plants and relocating
their production to nations that have a steady power supply.
4. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 4
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
The above problems have the potential of affecting the economic growth of Nigeria which this
seeks to investigate by looking at the effects of International Joint Ventures on the growth of
Nigeria Economy.
1.3 Objective of the Study
The general objective of this study is to investigate the effects of International Joint Ventures on
the growth of Nigeria Economy. The specific objectives are to:
a) Investigate if there exists any significant difference in the GDP in the Pre & Post era of
International Joint Ventures.
b) Investigate the contribution of the industrial sector to the GDP.
c) To examine the contribution of the service sector to the GDP.
d) Analyze the contribution of the construction section to the GDP.
1.4 Research Questions
a) Does there exist any significant difference in the GDP in the Pre & Post era of International
Joint Ventures?
b) To what extent does the industry sector contribute to the GDP?
c) Does the service sector significantly contribute to the GDP?
d) To what extent does the construction sector contribute to the GDP?
1.5 Research Hypotheses
The null hypotheses are stated thus:
H01: There is no significant difference in the GDP in the Pre & Post era of International Joint
Ventures
H02: The industry sector does not significantly contribute to the growth of the GDP
H03: There is no significant contribution of the service sector to the growth of the GDP
H04: The construction’s sector contribution to the GDP is statistically insignificant.
5. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 5
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
2.0 Literature Review
2.1 The concept of International Joint Ventures and Economic Growth
International Joint Ventures (IJVs) aid companies to form strategic alliances, which allow them to
gain a competitive advantage through access to a partner’s resources, including markets,
technologies, capital, and people. International joint ventures are viewed as a practical vehicle for
knowledge transfer, such as technology transfer, from multinational expertise to local companies,
and such knowledge transfer can contribute to the performance improvement of local companies
(https://en.wikipedia.org/wiki/International_Joint_Venture) and improve their economy. Within IJVs
one or more of the parties is located where the operations of the IJV take place and also involve a
local and foreign company. IJV occurs when two businesses based in two or more countries form
a partnership. A company that wants to explore international trade without taking on the full
responsibilities of cross-border business transactions has the option of forming a joint venture with
a foreign partner (https://en.wikipedia.org/wiki/International_Joint_Venture).
In order to ascertain the effect of International Joint Ventures to the Growth of Nigeria Economy,
the study formed a conceptual model represented in Figure 1
The independent variable is International Joint Venture; the predictive variables are sectors of the
economy that has witnessed International Joint Ventures while the Gross Domestic Product
represents the dependent variable of economic growth.
6. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 6
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Independent variables Predictive Dependent variable
Joint Ventures Variables Economic Growth
Conceptual Model for the study
2.1 Nigeria Economic Growth
Between 2006 and 2016, Nigeria’s GDP grew at an average rate of 5.7 percent per year, as volatile
oil prices drove growth to a high of 8 percent in 2006 and a low of -1.5 percent in 2016 (world
bank report, 2017). While Nigeria’s economy has performed much better in recent years than it
did during previous boom-bust oil-price cycles, such as in the late 1970s or mid-1980s, oil prices
continue to dominate the country’s growth pattern (https://www.vizonresearch.com/reports#!).
The shock of oil price in mid-2014 challenged the government in building an institutional and
policy framework capable of managing the volatility of the oil sector and supporting the sustained
growth of the non-oil economy. After contracting for five consecutive quarters, the economy has
returned to growth in the second quarter of 2017. With a renewed focus on economic
diversification, promoting growth in the private sector and driving job growth, GDP grew by 0.6
percent (year-on-year) in the second quarter of 2017, driven by recovering oil production and some
recovery in non-oil industries, too, and modest growth in agriculture
(https://www.vizonresearch.com/reports#!).
Construction
sector
Industry
sector
Service
sector
GDP
IJV
7. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 7
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Economic growth is expected to have remained positive in the second half of 2017 according to
analyst, averaging about 1.0 percent for 2017; driven by the continued recovery of oil production,
sustained growth in agriculture, and the positive impact on investment and other private sector
activities from the improved availability of foreign exchange to support imports. As the
government begins to implement the structural reforms outlined in its Economic Recovery and
Growth Plan 2017–2020, growth can be expected to strengthen further in the medium term,
reaching about 2.8 percent by 2019 (https://www.vizonresearch.com/reports#!).
Below is a chart of trend of gross domestic product of Nigeria at market prices estimated by the
International Monetary Fund with figures in USD billions
Year Gross domestic
product
US dollar
exchange
Inflation index
(2000=100)
Per capita
income
(as % of USA)
1980 *58 1 Naira 1.30 7%
1985 *82 3 Naira 3.20 5%
1990 *118 9 Naira 8.10 2.5%
1995 *155 50 Naira 56 3%
2000 170 100 Naira 100 3.5%
2005 291 130 Naira 207 4%
2010 392 150 Naira 108 5%
2012 451 158 Naira 121 7%
2014 972 180 Naira 10 11%
2015 1,089 220 Naira 10 10%
2016 1,093 280 Naira 17 10%
2017 1,125 360 Naira 5 (est)
Source: Oladimeji, Muse, & Yusuff (2013).
8. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 8
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Below is also a chart of trend of the global ranking of the Nigerian economy, in comparison with
other countries of the world, derived from the historical List of countries by GDP
Year 200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
Rankin
g
52 47 38 37 34 31 31 30 23 20 21 22 23
Source: https://en.wikipedia.org/wiki/Economy_of_Nigeria
Based on the above trend, one can conclude that the economy of Nigeria is healthy which can be
attributed to many factors like diversification of the economy to the non-oil sector, initiation of
sustainable government policies, public-private partnership (PPP), restoration of peace in the oil
region, etc
0
200
400
600
800
1000
1200
1980 1985 1990 1995 2000 2005 2010 2012 2014 2015 2016 2017
Trend of GDP
GDP Exchange Rate Column1
9. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 9
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
2.3 Factors affecting Economic Growth in Nigeria
Even though Nigeria is blessed with abundant natural resource, her economic prosperity has been
threatened by corruption, mismanagement of public fund, nepotism, etc. The much-celebrated
growth in the GDP would have been much higher than what we have now. Also by ranking, Nigeria
would have been among the first 10th
best economy in the world, if only her resource were
judiciously utilized. The significant factors that have been hindering economic growth in Nigeria
are:
I. Infrastructural Decay:
Nigeria’s underdeveloped infrastructure is often cited as one of the major impediments to
economic development, and successive governments have vowed to rectify the situation. China
first became heavily involved in infrastructure improvements through the previously mentioned
oil-for-infrastructure deals during the Obasanjo era. These projects were canceled by late president
Yarada as a result of lack of transparency in the contracts. Infrastructural decay can also be seen
in the transportation sector like the port, railway, and road sector. A sound legal framework and
reforms are needed to allow Public and Private Partnerships (PPPs) to move forward in the rail
and roads sector. Of the 50,000 miles of roads, only slightly more than 10,000 miles are paved,
and many of these paved roads are in poor shape. Only five of Nigeria's twenty-two airports—
Lagos, Kano, Port Harcourt, Enugu, and Abuja—currently receive international flights (Bolaji,
2017).
10. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 10
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
II. Poor Funding of Investments
Reduced funding of capital projects has affected the growth of the economy. Before the new
implemented IJV model between the NNPC and IOCs, there were frequent delays in the payment
of cash calls to the joint venture operators which discouraged investment by the oil companies.
Insufficiency of funds has also constrained adequate equipment maintenance and efficient refinery
operations by the NNPC. The Federal Government’s delays in the payment of cash calls for its JV
operations in the upstream sub-sector, focusing more on maintenance rather than growth
(Gbadebo, 2008).
III. Communal Disturbances in the Oil Sector
There had been frequent communal disturbances which disrupt crude production as oil
communities’ clamor for a higher stake in oil operations. Accorddding to Gbadebo (2008),
smuggling and diversion of petroleum products. There are reported cases of massive smuggling of
petroleum products across the borders in the quest for foreign exchange and to take undue
advantage of the lower domestic prices vis-а-vis neighboring countries prices.
IV. Fraudulent Practices in the Award of Contracts
Fraudulent practices among politicians have hindered growth in the Nigeria economy. An example
was the cancellation of oil-for-infrastructure contracts signed by Obasanjo by late President
UmaruYar’Adua in 2007, the award of contracts to companies that are linked to politicians,
diversion of public funds to personal use, etc. These practices have hindered economic growth in
the Nigeria economy.
11. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 11
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
2.4 International Joint Venture and Economic Growth in Nigeria
JV is indeed a strategic vehicle that propels economic growth of a developed or developing state.
More especially in developing nations that lack the technical know-how, workforce, capital and
technology needed to explore natural resources in some strategic sector of their economy. One of
the objectives of JV by FG particularly in the oil & gas and maritime industries is to encourage
technology and knowledge transfer. JV in Nigeria can be traced back to OPEC's 1968 resolution
calling on its member countries to participate actively with the foreign companies in the
exploitation of their nations’ strategic resource. In recognition of this, the Nigeria government
through the nations’ oil company NNPC entered into joint venture agreements with the existing
multinational oil companies such as SHELL, AGIP, MOBIL, ELF, CHEVRON (formerly GULF
oil) and the new ones such as TEXACO Overseas and others by acquiring 35% equity interest in
them in 1973, and by 1974 it came to 60% (Ogbonna, 2000). The above marked the birth of joint
venture agreement arrangements in the Nigeria oil sector between government's agent NNPC and
multinational oil companies. The need for a joint venture between two parties says a host country
and a multinational oil firm is to reduce the risk of investing in a foreign country and also to
enhance performance through the cross-pollination of ideas concerning the management of the
enterprise.
Odularu (2008) carried out a study on crude oil and the Nigerian economic performance. The study
analyses the relationship between the crude oil sector and the Nigerian economic performance.
The Ordinary Least Square regression method used for the study, reveals that crude oil
consumption and export have contributed to the improvement of the Nigerian economy. However,
one of the recommendations of the study was that the government should implement policies that
would encourage the private sector to participate actively in the crude oil sector.
Also in another empirical study of Ogbonna (2000) on Joint Venture in the Nigeria Oil Industry,
reviewed that effective management of joint ventures has enhanced performance in the Nigeria oil
sector, enhanced technology application (or Transfer and reduced associated investment risks for
multinationals in the industry. It is concluded that the joint venture strategy still offers unique
opportunities to Nigeria's quest for sustained economic growth and petroleum technology transfer
12. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 12
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
to her nationals despite the criticism that multinational oil firms are not meeting the developmental
needs of host countries.
The impact of various IJV (International Joint Venture) in Nigeria to the growth of the economy
can be analyzed via the contribution of each sector to the economy especially the sectors that have
witnessed IJV like the Industry (Oil and Gas, manufacturing), service (health, transportation, ie
railway) power, etc.
Sectorial contribution to the economy (%)
Sector 2010 2011 2012 2013 2014 2015 2016
Agriculture 23.89 22.28 22.05 21.01 20.23 20.85 21.20
Industry
Oil
Manufacturing
22.03
15.38
6.55
24.81
17.52
7.19
23.67
15.77
7.79
22.01
12.86
9.04
20.66
10.79
9.75
16.01
6.36
9.53
14.16
5.28
8.77
Construction 2.87 3.02 3.05 3.34 3.58 3.68 3.55
Trade 16.46 16.39 16.5 17.12 17.63 19.15 20.37
Service 34.72 33.47 34.70 36.59 37.88 40.29 40.70
Source: NBS (2016)
13. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 13
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Source: NBC, 2016
The above chart shows that the service sector is the highest contributor to the economy, but
unfortunately, the sector is yet to be harnessed to the fullness. It was last year that the railway sub-
sector of the service industry witnessed the presence of the FG that entered into a partnership with
the Chinese government. Looking at the industry sector (oil & gas, manufacturing, and mining)
which account for the highest revenue to the government has not been stable due to the fluctuations
in the global market. The oil & gas sub-sector alone account for 89% of the whole industry while
the manufacturing sub-sector accounts for 8% with the remaining 1% goes to the mining sub-
sector.
The JV between FG and IOC in Nigeria have contributed to the Nigerian economy through the
energy they produce, revenues they generate and employment opportunities they provide for the
country. In 2016, Shell-operated ventures in Nigeria produced an average of 572,000 barrels of oil
equivalent per day (b/d), with 369,000 b/d from the Shell Petroleum Development Company of
Nigeria Limited operated Joint Venture (SPDC JV) and 203,000 b/d from the Shell Nigeria
Exploration and Production Company Limited (SNEPCo). Shell Nigeria Gas Limited (SNG)
0
5
10
15
20
25
30
35
40
45
Agriculture Industry Construction Trade Service
Contribution of each sector to the Economy
2010 2011 2012 2013 2014 2015 2016
14. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 14
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
supplies natural gas to about 90 industrial customers in Ogun, Rivers and Abia States (Udeme,
2018). The gas is used for power generation and processing by industries for the manufacture of
domestic products ranging from household consumables, to household utensils and hardware.
Among its customers are four compressed natural gas (CNG) companies that make the gas
available to other companies outside the SNG pipeline network. The SPDC JV is the primary
supplier of gas to Nigeria Liquefied Natural Gas Company Limited (NLNG) (Shell share, 25.6%).
The SPDC JV Afam VI power plant, which has a 650-megawatt generating capability, supplied
approximately 12% of the nation’s grid-connected electricity in 2016 and since its commissioning
in 2008 has delivered 24.16 million Megawatt-hour (MWh) of electricity into the Nigerian grid
(Udeme, 2018).
The inability of FG to settle its cash calls arrears in the JV entered with IOCs over the years, has
accumulated to $7 billion as of December 2016. Given that, the Federal Government through the
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has been engaging the
multinationals and other partners on how to settle the debts through crude oil lifting and how to
embrace the IJV model. In order to harness the benefits that accrue from IJV, a new model of IJV
was formed which witnessed a new financing agreement. NNPC with Chevron and Shell entered
into a new financing agreement worth at least $780 million to boost crude production and reserves
(Nigerian Tribune, 2017). NNPC said a joint venture agreement with Chevron Nigeria Limited
would see the development of proven and probable reserves of 211 million barrels at the joint
Sonam project (Reuters, 2017).
“The project is expected to begin to bear fruits in (the) next three and six months,” NNPC said in
a statement, adding it was targeting production of 39,000 barrels per day of liquids and 283
million standard cubic feet of gas per day”( Reuters, 2017)
It also said a joint venture with Shell Petroleum Development Company would lead to the
development of a project comprising of 156 development activities across 12 oil mining (Reuters,
2017) licenses in the Niger Delta oil hub.
15. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 15
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Still, on the impact of IJV to the growth of the Nigeria economy, NNPC entered into PPP (public-
private partnership) with China State Construction Engineering Corporation (CSCEC) in a bid to
generate employment and reduce Nigeria’s dependence on imported refined petroleum products.
In May 2010, NN PC and the (CSCEC) signed a USD 23 billion Memorandum of Understanding
for the construction of three refineries and a fuel complex, financed by Sinosure and China Exim
Bank. Under the terms of the first refinery deal, worth USD 8 billion, CSCEC agreed to cover 80
% of the costs, with NN PC putting up the remaining20 % and the Lagos State government
providing land and infrastructure. The Chinese company would build and run the refinery as a
majority owner, repaying the loan with the proceeds from the construction contract as well as the
revenue from the refinery. The oil refinery was set to be located in the Lekki Free Trade Zone in
Lagos State and is expected to produce 300 000 barrels of oil a day and 500 000 metric tonnes of
liquefied petroleum gas each year (PS news, 2010.).
Also, China Ocean Shipping Group Company (COSCO), the largest shipping company in China,
established its West Africa hub in Nigeria’s economic capital, Lagos. In November 2010, a
Chinese joint venture between China Merchants and the China- Africa Development Fund paid
USD 154 million for a 47.5 % stake in the Tin-Can Container Terminal at Lagos Port. Nigeria’s
second largest container terminal, Tin-Can has three berths, with a capacity to handle 360 000
standard 20-foot containers per year (PS news, 2010.). In the same year 2010, Power Holding
Company of Nigeria (PHCN) contracted Chinese companies Sinohydro Corporation and Harbin
Electricity Corporation to rehabilitate the Kainji hydropower station in Rivers State. The project,
funded by a loan from the World Bank, will cost USD 82 million and is expected to add 340
megawatts to Nigeria’s electricity generating capacity. In a bid to improve the sector, FG on Nov
12, 2017, signed an agreement with three Joint Venture (JV) partners to begin the processes of
executing 3,050 Mega Watts (MW) Mambilla hydroelectric power plant in Taraba. The JV
companies are China Gezhouba Group Corporation (CGGC), Sinohydro Corporation Ltd and
CGOC Group Ltd. The contract is valued at 5.792 billion dollars (about (N1.140 trillion).
The pharmaceutical sub-sector of the manufacturing industry in 2017 also IJV between the FG
through the Ministry of health and May & Baker Nigeria. It was a journey that started since 2003
16. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 16
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
when May & Baker approached President Obasanjo led the government to restore the dying
Federal Government owned vaccine production laboratory (VCL) Yaba, Lagos which stopped
production since 1991. The Federal Executive Council (FEC), on May 31, 2017, ratified a joint
venture agreement (JVA) between the Federal Government of Nigeria and May & Baker Nigeria
PLC for local production of vaccines. The decision will benefit all Nigerian citizens and residents,
especially children and mothers, ultimately ensuring the sustainable availability of routine
immunization vaccines in the country. In the JV, the government will own 49 percent of the joint
venture while May & Baker will own 51 percent of the joint venture company, Biovaccines Nigeria
Ltd. The government will contribute N1.2 billion, M&B is expected to contribute N1.3 billion as
its equity contribution. All the above IJV and PPP are meant to reposition the economy through
employment opportunities, strengthen the various sectors that rely on power, increase FG
reserve/revenue, increase exports and reduce imports, etc.
2.5 Joint Venture & Investment Opportunities in the non-oil Sector
Apart from the oil & gas sector that has been a focus of IJV, opportunities for JV lies more in the
non-oil sector such as the agricultural sector which contributes significantly to the economy. Also,
sectors like service, trade, etc have great potential for growth which can be harnessed fully through
IJV and PPP (Public Private Partnership). Below is the analysis of selected sectors with their
growth prospects which can be harnessed through IJV.
A. The Transportation Sector
Aviation sub-sector
There exist growth prospect in the aviation sub-sector. IJV can be entered among firms to the
establishment of an Aircraft Engine Workshop - A workshop that can effect A, B, C, & D checks
on various grades of aircraft used in the Country and the West African sub-region; establishment
of a modern aircraft training facility; development/construction of airport terminals, etc.
17. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 17
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
(a) Maritime Sub-sector
In the maritime sub-sector, Foreign Shipping Companies can engage in the provision of Liner
Services through a joint sailing agreement with Nigerian shipping companies; Ship Acquisition
and Ship Building Fund/Lifting of Crude Oil and Gas can be established through JV among
companies or between the FG and foreign investors. There could be JV in Training /Technical
Assistance; Tanker Trade - a joint venture with Nigerians in the exportation of Nigerian crude oil.
More importantly is the Proposed Nigerian Maritime Consultancy Centre – JV could cover the
following:
a) Marine engineering spare parts supplies;
b) Ships and Port management;
c) Ships, Ports and boat supplies;
d) Seaports, oil terminals, and ship communication equipment;
e) Seaports and ships educational material;
B. Manufacturing and Industry
Despite government efforts to diversify the economy, the manufacturing sector remains relatively
weak. As in many oil-rich countries facing the challenge of averting the “resource curse,” the
manufacturing industry in Nigeria has declined as the country shifted attention to oil production.
From 2010-2016, the contribution (all in %) of oil and gas is (15.38, 17.52, 12.28, 10.79, 6.36 and
5.28) while the manufacturing is (6.55, 7.19, 7.79, 9.04, 9.75, 9.53, and 8.77), (CBN, 2017). The
data shows that the manufacturing sector needs and urgent attention by the FG through. A central
ax of the government’s development programme is to reverse this trend and use manufacturing as
a tool for job creation and poverty reduction. Hong Kong and Taiwanese investors started
manufacturing auto parts and textiles in Nigeria in the late 1960s and early 1970s. The industries
subsequently collapsed due to decreased cotton production, inadequate infrastructure and
18. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 18
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
increased competition from imported products, particularly from China. Lee Enterprises is one
Hong Kong manufacturer that has managed to survive and even expand. The company produces
plastics, steel, ceramic tiles and leather hides at its extensive complex of factories near Kano. Lee
Enterprises employs a large Chinese and Nigerian workforce, and some have estimated it as being
a multi-billion-dollar operation. Another well-known Hong Kong manufacturer, Wepco, produces
roofing sheets and furniture. The FG can revamp the sector by encouraging JV through PPP (Public
Private Partnership).
C. Agricultural Sector
Nigeria’s agricultural sector employs nearly 70 percent of the population and its contributions to
the GDP from 2010-2016 according CBN, 2016 are 23.89%, 22.28%, 22.05%, 21.01%, 20.23%,
20.85% and 21.20%. Nigeria possesses an abundance of arable land and a favorable climate for
the production of nuts, fruits, and grains. The vast majority of farming in Nigeria is subsistence-
based, utilizing manual labor and relatively little agricultural machinery (Bolaji, 2017). The
capacity of the agricultural sector can be improved through JV in providing the machinery for
mechanized farming; seed improvement and fertilize production/supply.
3.0 Research Methodology
3.1 Data source and period of the study
3.1.1 Secondary data
The study used secondary sources of data, which were collected from the CBN database called
Statistical Bulletin that contains information about the Nigeria Economy. The study compares the
performance of the economy before most IJV & PPP and the after-effects of that agreement on the
economic growth of the nation. Data on economic growth for seventeen years (2005-2016) years
were analyzed. That is years before most IJV& PPP (2005-2010) and years after the IJV (2011-
2016). Apart from the oil sector that has witnessed IJV throughout the decade, other sectors that
this study seeks to analyze their effects on the economic growth of Nigeria are;
19. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 19
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
D. Manufacturing sub-sector (specifically the pharmaceutical between FG vs. May and Baker,
2017),
E. The service industry (specifically the railway sub-sector of Transportation sector between
FG and China Railway Construction Corporation (CRCC, 2015)
F. The service industry (specifically the power sub-sector between PHCN vs. Chinese
companies Sinohydro Corporation and Harbin Electricity Corporation, 2010, and FG vs.
China Gezhouba Group Corporation (CGGC), Sinohydro Corporation Ltd and CGOC Ltd,
2017)
G. The water sub-sector (between China Merchants and the China-Africa Development Fund,
2010)
H. Oil sub-sector (building of oil refinery between the NNPC vs. China State Construction
Engineering Corporation in 2010, and the newly implemented IJV model between the
NNPC and IOCs, 2017)
3.2 Method of Analysis
In testing the hypothesis
H01: There is no significant difference in the GDP in the Pre & Post era of International Joint
Ventures
H02: The industry sector does not significantly contribute to the growth of the GDP
H03: There is no significant contribution of the service sector to the growth of the GDP
H04: The construction’s sector contribution to the GDP is statistically insignificant.
Two statistical tools were used.
The first is T-Test statistic employed in comparing the performance of the economy before and
after various IJs. The second is the multiple regression analysis in estimating the contribution each
of the sector to the total economy.
20. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 20
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Analysis of the Growth of the Economy
T-Test Statistic:
H01: There is no significant difference in the GDP in the Pre & Post era of International Joint
Ventures
Table 1. Paired Samples Statistics
Mean N Std. Deviation Std. Error Mean
Pair 1 PRE GDP IJV 3.6997E4 6 11579.74408 4727.41072
POSTGDP IJV 8.3244E4 6 14414.24135 5884.58939
Table 2. Paired Samples Correlations
N Correlation Sig.
Pair 1 PRE GDP IJV & POST
GDP IJV
6 .983 .000
Table 3. Paired Differences
Mean Std 95% Confidence Interval
Error Mean of the Difference T DF Sig.
Lower Upper
PRE-IJV GDP -4.62469E4 1508.58641 -50124.85148 - 42368.96185 -30.656 5 .000
POST-IJV GDP
P-values at 5% statistical significance
Table 1, 2, & 3 represents the results of a Paired Sample Test of the difference of means of the
performances of the economy before and after various international joint ventures (IJVs) were
entered. Looking at the mean of comparison, the mean of the post IJV GDP is significantly higher
the mean of the GDP in the pre-era. Furthermore, the significant value is 0.000 at T (30.656). This
p-value is less than the 0.05 level of significance. It, therefore, shows that the means of the values
for the two periods significantly difference. Hence, we reject the null hypothesis which state that
H01: There is no significant difference on the GDP in the Pre & Post era of International Joint
21. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 21
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Ventures and accept the alternative hypothesis (H2) and therefore concluded that IJV has a
significant influence on the economy, using the GDP as a yardstick.
The regression equation
GDP = α + β1industry + β2service + β3construction + e
GDP= Dependent variable/response variable used to represent the economic growth.
IJV= independent variable which is represented by the predictor variables such as the industry
sector, service sector, and construction. These predictor variables are the sectors were IJVs have
been seen and felt.
Table 4. Model Summary
Model R R Square
Adjusted R
Square
Std. The error
of the Estimate
1 1.000a
.999 .999 994.73791
a. Predictors: (Constant), CONSTRUCTION, INDUSTRY,
SERVICES
Table 5. ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 8.118E9 3 2.706E9 2.735E3 .000a
Residual 7916028.050 8 989503.506
Total 8.126E9 11
a. Predictors: (Constant), CONSTRUCTION, INDUSTRY, SERVICES
b. Dependent Variable: Total Nominal GDP
22. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 22
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Table 6. Coefficients
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig.B Std. Error Beta
1 (Constant) 2117.091 2214.843 .956 .367
INDUSTRY 1.226 .168 .223 7.273 .000
SERVICES 2.442 .480 1.036 5.087 .001
CONSTRUCTION -5.400 5.288 -.228 -1.021 .337
a. Dependent Variable: Total Nominal GDP
From the Coefficients table,
It can be observed from the statistically tested that two sectors (industry & service) contributed
significantly to the growth of the economy. While the construction sector has not contributed
significantly to the growth of the economy. The p-values of industry and service are less than the
0.05 level of significance. The result is statistically significant at 5% respectively hence we reject
the null hypotheses of 2 & 3 which states that H02: The industry sector does not significantly
contribute to the growth of the GDP and H03: There is no significant contribution of the service
sector to the growth of the GDP. We, therefore, reject the null and accept the alternative hypotheses
and conclude that the various IJVs witnessed in the two sectors have significantly contributed to
the growth of the Nigeria economy. The study also accepted the null hypothesis 4 which state
theH04: The construction’s sector contribution to the GDP is statistically insignificant based on the
fact the P-value of 0.337 is greater than 0.05 level of significant and concluded that the IJVs
witnessed in this sector has significant not contributed to the economic growth of Nigeria.
4. Conclusion and Recommendations
International Joint Venture can be a strategic vehicle that can transform the Nigeria economy if
the right model is formed and implemented. The growth of the Nigeria economy can be assured
through IJV if the parties to the agreement fulfill their statutory obligations. The benefits of IJV to
23. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 23
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
a growing economy like Nigeria, transfer enormous skills, knowledge, technology, employment
opportunities, etc. However, factors such as corruption, mismanagement of public funds,
infrastructural decay, inadequate funding of JV among others have been identified as strategic
issues affecting the growth of the Nigeria economy.
The study also identified areas in IJV were investment opportunities exist such the aviation sector,
agricultural sector, maritime sector, and manufacturing sector. From the statistically tested data, it
was observed that IJVs witnessed in two sectors (industry and service) has significantly accelerated
the economy while in the construction industry, such joint venture has not yielded expected results
which be. As a result of some problems identified in this study.
The study, therefore, makes the following recommendations:
a. The government should pay more attention to the infrastructural development of the nation
(power, roads, railways, etc.) because it is a factor that hinders growth and attracts foreign
direct investment.
b. The non-oil sectors have the potential for growth which can be harnessed through JV.
c. Transparency should be shown in the award of contracts.
d. The government should endeavor to fund various joint ventures entered by her agencies
as to foster economic growth.
e. The government should also create an enabling environment for the non-oil sector to strive
thereby adding to the growth of the economy.
References
Bolaji Samuel (2017). Market Overview: What you need to know before
Exporting to Nigeria. https://brandspurng.com/2017/11/22/market-overview-what-
you-need-to-know-before-...
Central Bank of Nigeria (2016). The Changing Structure of the Nigerian economy and
Implications for Development. (Abuja: CBN)
Gbadebo Olusegun Odularu (2008). Crude oil and the Nigerian Economic Performance.
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.531.822&rep=rep1...
24. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 24
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
Kate Okoh (2010). Strategic Assets and Organizational Rent. Strategic Management Trip law
Journal. 14 (1), p33-46.
Odularu (2008), Crude oil and Nigerian economic performance. The Journal of Political
Economy, Vol. 64, No. 5, pp. 425-434.
Ogbonna, Joint Venture in the Nigeria oil Industry:“Development of Crude Oil Production in
Nigeria, and the Federal Government Control measures” (paper presented to the Institute
of Petroleum, London, 2000).
Oladimeji Moruff Sanjo, Muse Sulaimon Adigun, & Yusuff Modupe Ololade (2013).
An Analysis of Globalization on some Macro Economic Variables in Nigeria.
Global journal of Commerce and Management Perspective.
https://www.longdom.org/articles/an-analysis-of-globalization-on-some-macro-
econ...
Reuters (2017). Nigeria's state oil company signs deals with Chevron, Shell.
Udeme Akpan (2018). SNG provides gas to 90 industrial customers in Ogun, Rivers,
Abia states – Report. https://www.vanguardngr.com/2018/01/sng-provides-
gas-90-industrial-customers-ogu...
World Bank report (2009): United Nations Conference on Trade and development investment
Policy Review of Nigeria.
Website
https://finance.yahoo.com/news/nigerias-state-oil-company-signs-deals-chevron-sh...
https://www.vizonresearch.com/reports#!
https://en.wikipedia.org/wiki/International_Joint_Venture
https://en.wikipedia.org/wiki/Economy_of_Nigeria
Www.Shell.ng
25. Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 1 Jan, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ugwuegbu Charles: International Joint Venture & Growth of Nigeria Economy, 2019
pg. 25
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com