Journal Articles

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Author: search.filters.author.Musa Abdullahi SakankoStart date: 2024

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    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.
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    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.
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    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
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    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.