Browsing by Author "Musa Abdullahi Sakanko"

Now showing 1 - 20 of 48

Advancing inclusive growth in Nigeria: the role of financial inclusion in poverty, inequality, household expenditure, and unemployment
(Indonesian Journal of Islamic Economics Research, 2020) Musa Abdullahi Sakanko; Joseph David; Aliyu Musari Onimisi
This study employs ARDL bounds testing technique to examine the effect of financial inclusion on inclusive growth in Nigeria, using quarterly data from 2007-2018. The empirical evidence reveals the presence of cointegration between financial inclusion indicators (account ownership, access to bank, ATM and credit, loans to SMEs and internet usage) and inclusive growth (poverty, household expenditure, employment, and per capita income). The results demonstrate that, while increase in account ownership, and access to bank and ATM raise poverty, and access to credit, loans to SMEs and internet usage reduces employment and per capita income in the long-run, it was also discovered that access to credit reduce poverty and increase household consumption, while account ownership and access to bank increases employment and per capita income in the long-run. In the short-run: lag of account ownership, access to ATM and credit, loan to SMEs and internet usage reduces poverty; lag of household expenditure, account ownership, and access to ATM and lag of internet usage increases household expenditure; lags of access to ATM and lags of internet usage (and account ownership and access to the bank) increases employment opportunities (and per capita income), and access to ATM and credit reduces employment and per capita income respectively.
An ARDL Bound Approach to the Nexus of Minimum Wage Increase and Economic Growth in Nigeria
(LAFIA JOURNAL OF ECONOMICS AND MANAGEMENT SCIENCES, 2022) Habiba Mohammed-Bello Umar; Musa Abdullahi Sakanko; Musa Salihu Ewugi; Abubakar Alhaji Sadiq
his study examined the impact of the national minimum wage on economic growth in Nigeria. The Autoregressive Distributed Lag (ARDL) model of econometric technique was employed to analyse the data, keeping GDP as the dependent variable and minimum wage as the independent variable. The study revealed that increment in minimum wage was positive and significant in both the long and short run to GDP, implying that an increase in minimum wage will raise the economic growth rate. Therefore, the three tiers of government and the private sector in Nigeria should implement and upgrade to the new National Minimum Wage of N30, 000 to improve the income and capacity of low-skilled employees to enhance their economic growth.
An Econometric Analysis of Causality between Poverty and Crises in Northern Nigeria
(SEISENSE Journal of Management, 2018) Musa Abdullahi Sakanko
The study focuses on the analysis of the causality between poverty and crises in northern Nigeria using the Granger causality test and the ARDL bound testing techniques. The study revealed the presence of causality running from poverty to crises and not the other way round as well as co-integration among the pairs. The long-run estimate thus showing poverty exhibiting a positive effect on crises which deviates from the negative relationship obtained in the short-run. The study thus recommends employing poverty reducing mechanism in the region coupled with the overhauling of the agricultural sector as most of the labor force in the region are unskilled which can be easily absorbed in the sector.
An Econometrics Analysis of the Determinants of Exchange Rate in Nigeria (1980 - 2016)
(European Journal of Business and Management, 2017) Musa Abdullahi Sakanko; Joseph David
The paper investigates the determinants of exchange rate in Nigeria using times series data ranging from 1980 to 2016 and employing the Vector Error Correction Mechanism (VECM) to separate the long-run determinants of exchange rate from its short-run determinants. The result from the dynamic model reveals that changes in domestic price level, interest rate differentials, trade openness, government purchases of tradable and non-tradable goods and capital inflow are the major long-run determinants of exchange rate in Nigeria while changes in the domestic price level, interest rate differentials and capital inflow are the major short-run determinants of exchange rate in Nigeria. The study recommended the actions of the monetary authorities towards the maintenance of relative low and stable price level, interest rate capable of attracting foreign investors and the design and implementation of trade policies which tend to increase the inflow of capital from abroad.
An Econometrics Validation of Malthusian Theory: Evidence in Nigeria
(Signifikan: Jurnal Ilmu Ekonomi, 2018) Musa Abdullahi Sakanko; Joseph David
Rising population is an asset, provided, the skills of the workforce are used to the maximum extent. If not appropriately channelized, it can be a liability for a nation. A skilled and hardworking population can emerge as a foundation for a country’s development. This study examines the validity of Malthusian Theory in Nigeria using time series data from 1960 to 2016, employs the ARDL bound test techniques. The result shows that in the long-run, population growth and food production move proportionately, while population growth poses a depleting effect on food production in the short-run, thus validating the incidence of Malthusian impact in Nigerian economy in the short-run. The researcher recommended the government should strategize plans, which will further intensify family planning and birth control measure, compulsory western education and revitalization of the agricultural sector
AN EVALUATION OF THE IMPACT OF THE INFORMAL SECTOR ON ECONOMIC GROWTH IN NIGERIA USING ERROR CORRECTION MODEL (ECM) 1985 - 2014
(Lapai International Journal of Administration, 2017) Musa Abdullahi Sakanko; Musa Salihu Ewugi
Nigeria with a population of over 160 million people has the highest numbers of workers in the informal sector in Africa. Informal sector therefore, plays a significant role in the Nigerian economy for it creates employment and reduces poverty. This study therefore, examines evolution of the impact of the informal sector on economic growth in Nigeria from 1985 to 2014, using Error Correction model (ECM) to analyze the data. The result reveals that informal sector has long-run and positive relationship with economic growth but statistically insignificant. Based on these findings, the study recommends fiscal regulation and employment policies to foster economic growth and development. And thereby, concludes that informal economy is a source of income but it is difficult to ascertain its contribution to economic growth and development of Nigeria in the short run.
ANALYSIS OF THE IMPACT OF FINANCIAL INCLUSION ON POVERTY REDUCTION IN MINNA NIGER STATE, NIGERIA
(Abuja Journal of Economics and Allied Field, 2018) Musa Abdullahi Sakanko; Audu Abdulkareem Usman; Musa Clement Lawal; Aliyu Musari Onimisi
Undoubtedly, financial inclusion has been considered as one of the ways of reducing poverty be-cause it favours mainly low-income groups by bringing a lot of welfare benefits to them through the basic services offered by financial institutions such as mobilization of savings, risk reduction, monitoring and advise, cost mitigation, reduction of information asymmetry, and allocation of funds to the most competent entrepreneurs to promote technological innovation and hence eco-nomic development. The study investigated the impact of Financial Inclusive on poverty reduction in Minna using logistics regression and the result revealed that formal ownership of the account, Financial adviser, teller point, and access to formal credit lead to an improvement in the welfare of people and statistically significant. Therefore, the study concludes that formal ownership of the account, financial adviser, teller point, and access to credit will help in the reduction of poverty in Minna Metropolis. Thus, recommend fiscal regulation, installation of teller or ATM point in stra-tegic places in both the rural and urban area, the establishment of customer advisory unit or de-partment in commercial banks, and checkmate of the commercial bank’s loan procedure by Central Bank of Nigeria,
ANALYSIS OF THE IMPACT OF TAX REVENUE ON THE ECONOMIC ACTIVITIES OF NIGER STATE
(KEBBI JOURNAL OF ECONOMICS AND SOCIAL SCIENCE (KJESS), 2019) Musa Abdullahi Sakanko; Umma Yahaya Sufiyanu; Joseph David
The relevance of tax revenue cannot be overemphasized especially with the recent declining on the federal allocation and diversion of most revenue to the rehabilitation of Northeast. Both the federal and state governments have been on their stand to diversify revenue bases available to them and attention is now being shift to other sectors and government parastatals that can yield revenue to the government. On this note, Availability and mobilization of revenue is the fundamental factor to which any economy is managed and run. The main objective of this study is to examine the impact of tax revenue on the economic activities of Niger state, employed a logistic regression model to analyze the primary data. The results revealed that tax revenue has a positive and statistical insignificance impact on the economic activities of the Niger state. Tax evasion, tax avoidance, illiterate, corruption, and tax collector habits, had a decline effect on tax revenue in Niger state and statistically significant. However, tax administrator and poor management have a positive effect on tax revenue but the former is statistically insignificant and later statistically significant. Thus, the study concludes that effective and efficient tax policy is a necessary component of an economic policy, for a state to sustain and strengthen its economic activities and compete favorably with the neighboring states. Therefore, recommends, the government to put more effort in revenue since tax revenue serves as a source of funding for government in undertaking infrastructural development. This could be achieved by improving efficiency in tax administration by strengthening, rewarding, modernizing collection and streamlines of tax exemptions.
Appraisal of the Determinants of Energy Use in LAPAI Local Government
(Pakistan Journal of Humanities and Social Sciences, 2018) Musa Abdullahi Sakanko; Joseph David; Abdullahi Yakubu
The paper investigates the determinants of energy use in Lapai Local government area of Niger state, Nigeria using a cross-sectional data randomly collected from 117 respondents in the Lapai. Employing the descriptive statistics and Multinomial Logistics regression model to capture the characteristics of the respondents and the determining factors of energy use in Lapai respective. The empirical result obtained revealed that people use more of the traditional energy sources (firewood and charcoal) because of its availability and affordability. Income level, family size, educational status, and occupational status are the major determinants of the use of the modern energy sources relative to traditional energy sources. The study thus recommends The Government through ministry of power and environment should come up with suitable policies that will shift the attention of using biomass energy source to modern energy source, Government and environmental agencies should introduce safe and sufficient energy source in other to reduce burden on the use of biomass in the country so as to reduce the level of pollution and erosion. The actions of the local government authorities towards the improvement in the availability and access to modern energy source so a s to reduce the use of traditional energy sources as well as improvement in the income level and access to education of individuals in the local government.
ASSESSMENT OF LENDING INTEREST RATE ON THE GROWTH OF MANUFACTURING SECTOR IN NIGERIA: 1986 - 2015
(Sokoto Journal of Management Studies, 2017) Musa Abdullahi Sakanko; Abdullahi Maria
Over the years Nigeria Economy has been on growing path with the largest GDP in Africa. But the contribution of manufacturing sector is little due to some lingering challenges such as poor and decayed infrastructure, corruption, insecurity, government policies, and high interest rate. This study examines effect of lending interest rate on the growth of manufacturing sector in Nigeria from 1986 - 2015 using Autoregressive Distributive Lag Model (ARDL). The result illustrate negative and significant relationship between lending interest rate and the growth of manufacturing sector in Nigeria. Based on this findings, the researcher recommends that central Bank of Nigeria (CBN) should maintain the monetary policy rate at a level low than the current 11 percent enough to bring down the rate at which deposit money banks lend to their client and fixed decay infrastructure to economic growth and development.
ASSESSMENT OF SHORT RUN AND LONG RUN DETERMINANTS OF EXCHANGE RATE IN NIGERIA 1980 TO 2015
(Sokoto Journal of the Social Sciences, 2018) Musa Abdullahi Sakanko; Mohammed Yelwa
This study is based on the investigation of the determinants of exchange rate in Nigeria using time series data from 1980 to 2015 and employed Autoregressive Distributed Lagged Model (ARDL) and Error Correction Mechanism (ECM) to capture both the short-run and long run determinants of exchange rate in Nigeria. The results revealed that the past value of interest rate, current inflation rate and current government expenditure causes the Nigeria exchange rate to appreciate, hence, they have a negative relationship with the exchange rate while past value of exchange rate, current value of interest rate, past value of trade openness, past value of government expenditure and current value of foreign direct investment causes depreciation of the Nigeria exchange rate due to their positive relationship with the exchange rate. The author recommend that the monetary authority should employ strategies that will prevent the rise in the interest rate differentials and previous value of exchange rate as well increase the inflation rate by employing the expansionary monetary policy. In addition government should increase their consumption expenditure and reduce the openness of the Nigeria economy by employing trade barriers which will lead to appreciation of the Nigeria exchange rate. As such, the government should discourage the inflow of capital from foreign countries as they cause the Nigeria exchange rate to depreciate.
Do Tax Policies in Nigeria Have Similar Implications for the Manufacturing Sector Output?
(Etikonomi, 2022) Musa Abdullahi Sakanko; Jeremiah Nshe Manomi; Abubakar Ijoko; Usman Abdulkareem Audu
The study examines whether tax policies in Nigeria have similar implications on the manufacturing sector’s output during the 1994Q1-2020Q4 period using the ARDL bounds testing approach. The bounds testing result suggests the presence of cointegration between tax policies and the manufacturing sector output. Further, the estimation results demonstrate that company income tax (CIT) and import tax are positively related to manufacturing sector output. In contrast, value-added tax (VAT) has a negative effect on the manufacturing sector output, both in the short- and longterm. In addition, the results of the Granger causality test indicate a unidirectional causal relationship running from tax policies to the manufacturing sector output and not vice versa. Thus, policies and measures are recommended to prioritize the CIT and import tax, review the assortment in the VAT, and ensure accountability and transparency in the tax system.
Does Financial Inclusion Reduce Poverty in Niger State: Evidence from Logistic Regression Technique
(Organizations and Markets in Emerging Economies, 2022-01-01) Nurudeen Abu; Musa Abdullahi Sakanko; Joseph David; Awadh Ahmed Mohammed Gamal; Ben Obi
This study employs the logistic regression method to examine the effect of financial inclusion on the level of poverty in Niger State of Nigeria based on cross-sectional data randomly collected from 624 respondents across 224 towns and villages in 12 local government areas (LGAs) of the state. The estimation results illustrate that financial inclusion (proxied by bank account ownership, including access to bank, credit, and mobile phone) is significantly and negatively related to the level of poverty. This empirical outcome is further validated by the results of the Probit regression technique which show a significant negative relationship between financial inclusion and poverty in the state. Based on these empirical findings, the study recommends policies which include broadening bank coverage, softening credit requirements, and enhancement of people’s access to mobile phone and internet services in rural areas of Niger state.
Does the mode of financing the budget deficit matter for inflation in Nigeria
(African Journal of Economic and Management Studies, 2025) Musa Abdullahi Sakanko; Kanang Amos Akims; Stephen Salawu Gana
Purpose The motivation for this study is to determine whether inflation in Nigeria is driven by the Central Bank’s direct advances and Treasury bills/bonds as modes of financing the budget deficit. Hence, it examines whether the method of deficit financing significantly impacts inflation in Nigeria. Design/methodology/approach Based on the nature of the study and the availability of data in Nigeria, this study employs the ARDL bound test estimation technique to analyse annual time-series data from 1981 to 2021. Findings The ARDL bounds test approach to co-integration revealed a long-run co-integrating relationship between Central Bank advances, Treasury bills/bonds, and inflation in Nigeria. Furthermore, the ARDL results provide evidence of a negative and significant relationship between bonds and inflation in both the short and long run. In contrast, Central Bank advances exhibit a statistically significant direct effect on inflation in the short run and an indirect effect in the long run. Research limitations/implications The study focuses solely on Nigeria, limiting the applicability of the findings to other nations with differing economic structures or fiscal policies. Secondly, while the ARDL bounds testing approach is appropriate for the research context, it may not capture complex nonlinear relationships or structural breaks within the dataset. Lastly, the exclusion of additional potential determinants of inflation, such as external shocks, geopolitical factors, or exchange rate dynamics, could restrict the comprehensiveness of the analysis. Practical implications This study provides empirical evidence supporting the view that, to achieve lower inflation in Nigeria, policymakers should prioritize using bonds to finance the deficit budget, as they have been shown to have a short-and long-term deflationary effect on the economy. Originality/value The novelty of this study lies in categorizing deficit budget financing (Central Bank advances and Treasury bills) and identifying which has the greatest impact on inflation in Nigeria.
Effect of COVID-19 Pandemic on the Nigerian economy
(Poona College of Arts, Science and Commerce, 2020) Nurudeen Abu; Musa Abdullahi Sakanko
This study employs the ARDL estimation method to investigate the impact of COVID-19 pandemic on Nigeria’s stock market using daily data from 23rd March to 29th May 2020. The results of the bounds test to cointegration indicate that a long-run relationship exist between the COVID-19 outbreak and stock market performance. The estimation results demonstrate that COVID-19 (proxied by the number of confirmed cases of infection, the number of deaths and lockdown) has a negative impact on stock market performance in the long-run and the short-run. The results of the stability test reveal that the relationship between COVID-19 pandemic and stock market is stable over the long-run. The study recommends policies to reduce the spread of the virus to lessen its negative impact on the stock market in Nigeria.
External Debt and Manufacturing Sector’s Performance in MINT Countries: Evidence from Dynamic Heterogeneous Panel Estimation Techniques
(Journal of the Knowledge Economy, 2024) Nurudeen Abu; Joseph David; Musa Abdullahi Sakanko
The study assesses external debt’s impact on MINT countries’ (Mexico, Indonesia, Nigeria, and Turkiye) manufacturing sector’s performance during the 1980–2021 period, using dynamic heterogeneous panel methods (i.e. dynamic fixed effects, mean group, and pooled mean group estimators). The findings portray the presence of long-term relation between external debt and manufacturing performance (alongside external debt service, inflation rate, population size, exchange rate, FDI, and agricultural output) based on the Kao’s residual cointegration test. The empirical outcomes portray a dampening impact of external debt on manufacturing sector’s performance during the short and long term. Moreover, external debt servicing, FDI, population size, and inflation rate promote the sector’s performance, but exchange rate (depreciation) hurts manufacturing performance. Furthermore, the Dumitrescu- Hurlin heterogeneous panel causality test portrays a one-way causality from external debt servicing (and exchange rate) to manufacturing sector’s performance and a two-way causality between manufacturing sector and population (and FDI and agricultural output). Thus, policies aimed at lowering external debt, lessening exchange rate variability and inflation rate, and boosting inward FDI are recommended to promote the sector’s performance
Financial inclusion and Poverty reduction
(Aryan Digital Press, 2020) Nurudeen Abu; Musa Abdullahi Sakanko
Over time, it has been argued that economic growth is a powerful instrument for poverty reduction, the improvement of the standard of living and quality of life in developing countries. However, in recent times, increasing economic growth has not been influencing poverty reduction significantly and among other precarious development indicators, especially in developing countries. And with the growing number of extreme poverty resulting from lack of out-of-pocket among low-income households, this had prompted the principle of financial inclusion to become globally accepted due to poverty reduction role play in society. It is on this note that this chapter reviews the importance of financial inclusion on poverty reduction, the effect of financial exclusion on poor, financial education and how financial institutions can enhance financial inclusion to perform better poverty eradication roles. Thus, it concludes that financial inclusion provides a low-income household with affordable financial credit to jumpstart business which generates income to improve the living standard thus reducing poverty. It gives the household an opportunity to create values and use them to provide basic needs such as education, health, and nutrition. It also provides standby finance for health spending in case of health shocks through insurance and health savings accounts.
Financial inclusion and underground economy nexus in West Africa: evidence from dynamic heterogeneous panel techniques
(Economic Change and Restructuring, 2024) Musa Abdullahi Sakanko; Joseph David; Nurudeen Abu; Awadh Ahmed Mohammed Gamal
Dynamic Fixed Effects, Mean Group, and Pooled Mean Group estimators to explore the underground economy (UE) and financial inclusion (FI) relation for ten West African nations during the 2004–2021 period. Applying Pedroni cointegration test, the results present evidence of a long-term relation between UE and FI (alongside corruption, inflation rate, money supply, agricultural output, and trade). The results of panel estimation portray a long-term significant positive influence of FI on UE, but a short-term significant negative relation between FI and UE. In addition, corruption, money supply, and international trade have a long-term significant negative influence on UE, while inflation supports long-term expansion of UE. Also, a short-term significant negative relation exists between inflation (and trade) and UE, while a short-term significant positive relation is found between money supply and UE. The results of Dumitrescu–Hurlin causality test signal a one-way causality from FI to UE. Therefore, policies geared toward enhancing FI, reducing corruption and money supply, and improving international trade are recommended to reduce UE.
Financial inclusion and women participation in gainful employment: an empirical analysis of Nigeria
(Indonesian Journal of Islamic Economics Research, 2020) Musa Abdullahi Sakanko
The paper examines the effect of financial inclusion on women participation in gainful employment in Nigeria for the period 1980 – 2018, employing the ARDL method. Both in the short run and long-run, the results indicated a positive relationship between financial inclusion and women’s participation in gainful employment. Thus, the paper recommends that the government ensure that financial inclusion barriers are reduced or removed. Reducing or removing will increase women’s participation in economic activities since financial inclusion measures are adjudged as convenient, safe, and prompt. Measures that will enhance private deposit and expansion of more commercial’s banks branch in rural areas to improve women’s access to financial services that discourage the use of informal financial services should be encouraged.
Financial Inclusion: A Panacea for National Development in Nigeria
(Faculty of Social Sciences, Federal University of Lafia, 2019) Musa Abdullahi Sakanko; Nurudeen Abu
Development is a key factor in every society, although, the understanding of the concept differs from society to society. That is, each society has ways of developing itself passing through the necessary developmental stages. The success of these stages is a function of many key policies, programmes, and initiatives. The study employed the Autoregressive Distributed Lag (ARDL) bounds testing technique to empirically examine the effect of financial inclusion on national development in Nigeria from 1980 to 2018. The empirical result indicates the existence of Co-integration (long-run) relationship between national development (proxy by Human Development Index-HDI) and financial inclusion (measured by access to financial institutions, access to ATM facilities, access to credit, and the credit to the private sector). In addition, the result demonstrates the presence of statistically significant positive impact of access a bank, ATM facilities, and credit on national development, as well as the existence of significant negative impact of credit to the prive sector on national development in the long run. Equally, in the short run, it was discovered that, while access to the bank in the current and previous year, and the access to ATM facilities in the past year impact on national development positively. In essence, while these entails the tendency of improved level of financial inclusion enhancing national development, policy makers are therefore recommended to put in place strategies which will further enhance the level of financial inclusion in the country