Browsing by Author "Olaolu, Dele"

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    EFFECT OF GOVERNMENT BORROWING ON ECONOMIC OUTPUT IN NIGERIA.
    (Department of Banking and Finance, Nasarawa State University Keffi, 2020-01-02) Olaolu, Dele; Vincent, Harrison S.; Kingsley, Nwaigwe O.
    This study examines the effect of government borrowing on economic output in Nigeria. Government borrowing was proxied by external debt(ED), Domestic debt (DD) and Total debt servicing (TDS) while Economic output was proxied by Gross Domestic Product (GDP). An ex­ post facto research design was employed for this study. Secondary data were collected from Central Bank of Nigeria Statistical Bulletin for twenty years period spanning through 2010 to 2019.Employing the econometric methodology of the Johansen Cointegration and Vector Error Correction Model (VECM), the study established a long run relationship among the variables. The Ordinary Least Square (OLS) result revealed that economic output is significantly influenced by external debt and Domestic debt while debt servicing does not significantly influenced economic output. It is recommended that Government and policy makers should carefully study the present state of the economy before deciding on measures through which deficit will be financed, maintain optimum level of external debt as it is one of the mechanisms for economic output and that all external debt should be effectively utilizedfor the purposef or which it was obtained. Debts should be contracted solely for economic reasons and not for social or political reasons. This is to avoid accumulation of debt stock overtime and prevent an obscuring of the motive behind debt servicing, hence investing this debt finance into capital investment that has the tendency to raise the overall output of the Nigeria economy.
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    Effect of Tax Revenue on Unemployment Rate in Nigeria
    (Department of Banking and Finance, Nasarawa State University Keffi, 2021-02-02) Peter, Enueshike; Olaolu, Dele; Nwala, Maureen Nneka
    Revenue generated from taxes is usually controversial, while some school of thought informed that taxes are revenue government spends on its citizens and should have a positive effect, others scholars believe that tax revenues withdraws income from the economy and thus the effect is negative. Some have concluded that the effect of tax revenue is insignificant. Therefore this study examined the effect of tax revenue on unemployment in Nigeria from the period between 1994 to 2020. Tax revenue was proxied by Corporate Taxes and Value Added Tax (VAT) and Customs and Excise Duties as independent variables and unemployment was proxied as the dependent variables. The study used Co-integration and Error Correction Model (ECM) to analysed the data. The finding show corporate taxes and Value Added Tax has a positive and significant effect on unemployment in Nigeria, while Customs and Excise Duties have a negative effect and significantly affect unemployment in Nigeria. The study recommends that government should reduce the rate of Corporate Tax on company from its current rate to 25 percent, as well as reduce VAT to 5 percent and CED payable on export duties on finished goods and import duties on raw materials. This would encourage investment, boast the profitability of manufacturing companies, minimize the tax burden on producer of finished goods, boost market competitiveness, increase tax compliance and create greater employment opportunities.