Browsing by Author "Nurudeen Abu"

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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.
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: 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
How have COVID-19 Confirmed Cases and Deaths Affected Stock Markets? Evidence from Nigeria
(CONTEMPORARY ECONOMICS, 2021) Nurudeen Abu; Awadh Ahmed Mohammed Gamal; Musa Abdullahi Sakanko; Ana Mateen; David Joseph; Ben-Obi Onyewuchi Amaechi
This study assesses the effect of COVID-19 proxied by the number of confirmed cases of the infection and deaths on Nigeria’s stock market over the 23rd March to 11th September 2020 period using the autoregressive distributed lag (ARDL), canonical cointegrating regression (CCR), dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) techniques. The bounds test to cointegration result reveals that a long-run relationship exists between COVID-19 and Nigeria’s stock market (along with oil prices and exchange rate). The results of the various estimations demonstrate that COVID-19 (proxied by the number of confirmed cases of infection) has a negative and significant impact on stock market performance, while the number deaths has a positive and significant impact on the market in the long-run. In addition, oil prices and exchange rate have a significant and positive effect on stock market performance in the long-run. Similar results were found for sub-sectors including consumer goods and healthcare sub-sectors of the stock market. The study recommends policies to curb the spread of the virus.
Long-term Impact of FDI-Corruption Interaction on Domestic Investment in Nigeria
(Economic Alternatives, 2024) Nurudeen Abu; Ben Obi; Mohd Zaini Abd Karim; Awadh Ahmed Mohammed Gamal; Musa Abdullahi Sakanko; Joseph David
Over the past three decades, Nigeria has experienced unstable domestic investment and foreign direct investment inflows, and the country continues to face rising corruption and related problems. An ARDL technique has been adopted to explore the longterm FDI’s impact on domestic investment including evaluating if the FDI-domestic investment nexus is dependent on the control of corruption in Nigeria over this period. The bounds test result shows an evidence of a long-term relation amongst FDI, domestic investment and corruption control (including GDP per capita, lending rate, exchange rate and oil price). We find that increasing inward FDI reduces (crowd-out) domestic investment and greater corruption control (lowering corruption) leads to a higher domestic investment in Nigeria over the long-term. Also, the influence of FDI on domestic investment depends on (or varies with) the control of corruption. FDI crowd-in domestic investment at greater corruption control than at lesser corruption control in the long-term. Other significant long-term influencers of domestic investment are the exchange rate and oil price. Given these outcomes, the study offers some recommendations to boost domestic investment in Nigeria.
OIL PRICE AND PUBLIC EXPENDITURE RELATIONSHIP IN NIGERIA: DOES THE LEVEL OF CORRUPTION MATTER?
(Economic Studies, 2022) Nurudeen Abu; Joseph David; Musa Abdullahi Sakanko; Ben-Obi Onyewuchi Amaechi
We employ the non-linear autoregressive distributed lag (NARDL) approach to examine if the oil price and public expenditure relationship are dependent on the level of corruption using Nigeria’s quarterly data during the 1996-2019 period. The result of the NARDL-bounds test to co-integration demonstrates that there is a long-run relationship between the variables, and we found evidence of long-run asymmetry in this relationship. The estimation results indicate that both positive and negative shocks to oil price have a significant positive effect on public expenditure in the long run, and the impact of oil price on public expenditure depends on the level of corruption. In addition, the marginal effect of oil price on public expenditure varies at different levels of corruption. Other important factors that drive public expenditure in Nigeria, in the long run, include spending on internal security and debt service. Based on these outcomes, we proffer some policy recommendations
THE BEHAVIOUR OF TAX REVENUE AMID CORRUPTION IN NIGERIA: EVIDENCE FROM THE NON-LINEAR ARDL APPROACH
(Economic Studies, 2022) Nurudeen Abu; Mohd Zaini Abd Karim; Joseph David; Musa Abdullahi Sakanko; Onyewuchi Amaechi Ben-Obi; Awadh Ahmed Mohammed Gamal
One of Nigeria’s greatest challenges is the generation of adequate tax revenue to meet her rising expenditure, and the country has continued to contend with corruption, particularly in its public sector. We employ the non-linear autoregressive distributed lag (NARDL) technique to examine tax revenue behaviour amid corruption using Nigeria’s quarterly data over the 1999-2019 period. The result of the NARDL bounds test to cointegration demonstrates the presence of a long-run relationship between tax revenue and corruption along with income level, agriculture, inflation rate, foreign aid and female labour force participation. The results of estimation indicate the existence of asymmetry in tax revenue behaviour. We find evidence of a significant positive impact of negative changes in the control of corruption and a significant negative effect of positive changes in the control of corruption on tax revenue in the long run. Other long-run significant determinants of tax revenue in Nigeria include income level, foreign aid and female labour force participation. Based on these empirical outcomes, this study offers some recommendations.
THE ROLE OF GOVERNANCE ON WOMEN PARTICIPATION
(6A/540, Avas Vikas, Hanspuram, Kanpur-208 021, 2020) Nurudeen Abu; Musa Abdullahi Sakanko; Joseph David
Today women are fighting for employment, high representation in leadership, recognition, and equality at global, national, regional and local levels, while doing their best to bring up children to ensure that they are responsible citizens of the society. Good governance is very crucial in facilitating and promoting open, efficient and consistent participation of women at all levels of policy-making. It is on this note that this chapter highlights the role of governance on women’s participation. We argued that democracy and the rule of law cannot bring meaningful progress in any nation without the involvement of women because they tend to be less corrupt and sympathetic. The desire for a better economy and the quest for women’s participation in government and leadership have become increasingly dominant in the public and private domains. Despite efforts made by women to promote gender equality, very little has been achieved in terms of their participation in leadership and other spheres of life. In conclusion, the time has come to improve gender equality in decisionmaking, employment, among others, if any meaningful socio-economic and political progress is to be made.