ABSTRACT

The study is an impact of Nigeria’s foreign policy under the administration of President Goodluck Jonathan. This work is necessitated on the premise that no state in modern times can avoid involvement in international affairs, and this involvement must be systematic and based on certain principles.  The objective of this work was to determine if Nigeria’s policy under the period in view had a significant impact on the Nigerian global image.

Data for this study was obtained from secondary sources; the expose facto research design was adopted while the qualitative descriptive method was adopted to analyze data. The concentric circle theory formed a framework of analysis… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

INTRODUCTION

Nigerian economy during the first decade after independence could reasonably be described as an agricultural economy because in the words Ogen (2003), agriculture-served as the engine of growth of the overall economy. During this period Nigeria was the world’s second-largest producer of cocoa, the largest exporter of palm kernel and largest producer and exporter of palm oil. According to Alkali (1997), Nigeria was also a leading exporter of other major commodities such as cotton, groundnut, rubber and hides, and skins.

Lawal (1997) observed that the agricultural sector contributed over 60% of the GDP in the 1960s and despite the reliance of Nigerian peasant farmers on traditional tools and indigenous farming methods, these farmers produced 70% of Nigeria’s exports and 95% of its food needs. However, the agricultural sector was relegated to the background when Nigeria became an oil-exporting country.

This relegation was attributed to inappropriate exchange rate policy which made the prices of agricultural output too low to give farmers. Examining the personality of the leader both at the theoretical and practical levels is therefore important to the understanding of Nigeria’s foreign policy.

This is largely due to the fact that critical historical analysis revealed that the country’s foreign policy is synonymous with the personality of the leader on board at any given time. However, it is important to accentuate that Nigeria’s foreign policy started at a moderate level since its independence in 1960. This may be largely due to smooth power relinquishing that occurred between Nigeria and the then colonial master (Britain).

The crux of the matter remains that, there was nothing in the pattern and traditions of Nigerian foreign policy from independence to the emergence of Sani Abacha as Head of state to suggest that the country would become a pariah state in the international system. Even the speech of the Prime Minister, Tafawa Balewa on Independence Day October 1, 1960, seemed to indicate that Nigeria was properly focused, and her mindset firmly directed at the goal of her foreign policy. He declared thus;

I have indeed very confidence that based on the happy experience of a successful partnership our future relations with the United Kingdom will be more cordial than ever, bound together as we shall be in the commonwealth by a common allegiance to her majesty Queen Elizabeth whom we proudly acclaim as Queen of Nigeria (hence) we are grateful to the British Officers who we have known, first as masters and then as leaders and finally as partners but always as friends (Balewa, 1960:26)… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Statement of the Problem

Relations between Nigeria and other state and non–state actors in international politics from 1999 onward were based on democratic principles. The tit-for-tat diplomacy of late Gen. Sani Abacha, de facto President of Nigeria from 1993 to 1998 had greatly damaged the image of Nigeria. The government was accused of human rights abuses and was repeatedly condemned by the U.S. State Department.

There was break in relationship with many countries with threats of economic sanctions from others. Apart from this, the government was characterized by an inconsistent foreign policy which made Nigeria scorn in the comity of nations… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Research Objectives

This study has both broad and specific objectives. The broad objective of this study is to evaluate Nigeria’s foreign policy under the administration of President Goodluck Jonathan 2011 to 2015. However, the specific objectives are as follows:

1. To determine if Nigeria’s Foreign Policy had any implication on Nigeria’s global image… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Significance of the Study

This study has theoretical and practical significance. Theoretically, it will add to already existing knowledge in the field of foreign relations and related fields. Practically;

1. It will be useful to scholars’ especially diplomatic historians, political scientists, economists, and international relations experts in their research. Diplomats like ambassadors, high commissioners, and staffers of foreign ministries will benefit from the work… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

REVIEW OF RELATED LITERATURE

This section is an examination of past works of other authors, analysts expressed in past projects and textbooks. This chapter has three basic sections. The first section of the chapter attempts a conceptual discourse of some terms that are central to this thesis. These include national interest, national roles, role conceptions, foreign policy and African policy.

The second section explores the secondary literature relevant to the study, discussing their central arguments and weighing the extent of contribution to the theme under focus, with the aim of identifying what gaps the study intends to fill.

Conceptual Clarifications:

The Concepts of “Nation” and “National”

Can one actually refer to the roles, interests, and general issues concerning Nigeria “national”, when technically, only a ”nation” can have such an attribute? Is Nigeria a nation? Traditionally, a nation is a group of people with a common heritage and homogenous socio-cultural elements who live in a social space or community.

Historical development and experience have changed or broadened the concept of a state, to mean a community of people with or without common heritage or homogenous cultures but who have gone beyond any forms of differences and resolved to live together as a sovereign people in a sovereign state.

It is for such a group that issues that affect them can be described as ‘national”, and whatever cause of nation-building can be called nationalism. The Unabridged Dictionary of 2006 has defined it more succinctly as” “a large body of people associated with a particular territory conscious of its unity to seek or possess a government… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

National Interest

National interest is a generally controversial concept in foreign policy analysis. Scholars do not agree on the fact that national interest has a universally accepted definition and contend with the view of whether there is anything that can be called “national” in view of the multitude of prevailing personal, class, group, sectional, and public interests in a state. This is because there is no definitive measure or a common plank for the streamlining of all these conflicting interests to “national” interest.

Hence, some view national interests as the interests of the political or ruling class because they may have been constitutionally or traditionally empowered by their leadership position to decide for the rest having been given the general will by the people through popular or dubious election (Rosati, 2006), or by forceful submission in the case of military dictatorship… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

HISTORICAL REVIEW OF NIGERIA’S FOREIGN POLICY

Nigeria’s image crisis has a historical foundation and dynamics (Ajayi, 2005:50). This section becomes relevant as it explores Nigeria’simage since 1960 in order to identify the highlights and turning points in Nigeria’simage and foreign policy.

First Republic

Tafawa Balewa, through his pioneering foreign policy anchored on Afrocentricism, was able to lay the foundation for Nigeria’sroles and influences in international politics which; ultimately helped to give a credible image for the country in the comity of nations (Ajayi, 2005). The expulsion of apartheid South Africa, breaking of ties with France and participation in the Non-aligned movement rang positive bells towards Nigeria’s image abroad (Folarin, 2013:21).

Second Republic

The expelling of illegal aliens from Nigeria, in the guise of national interest, was an action that was indeed inimical to the country’s development. Over two to three million illegal immigrants were given fourteen days to leave the country. This action alone created a bad image for Nigeria abroad (Lukpata, 2013:65).

Thus, Shagari’s administration was described as inhumane, callous, and irresponsible. It did incalculable damage to Nigeria’sreputation and standing among the Great Powers and the developing world…. (Scroll down for the link to get the Complete Chapter One to Five Project Material)

FEATURES OF NIGERIA’S FOREIGN POLICY UNDER PRESIDENT GOOD LUCK

• Positive Impacts of Nigeria’s Foreign Policy under President Good luck Jonathan.

For every objective or goal, it is imperative to define means and plans intended for the achievement of the specified objective. In the same vein, Akinterinwa (2014) averred that “strategy and technique may be likened to two inseparable sides of a foreign policy coin” (p. 255). He further explained that “…a technique…is a method adopted to achieve a specific objective”, while “a strategy, on the other hand, is generally considered as a long-term plan, comprising various integral components and designed to ensure the achievement of a broad set of goals” (p. 255).

This is not to say that techniques and strategies are mutually exclusive. In fact, Akinterinwa (2014) opines that some of the listed foreign policy objectives in the Nigerian constitution can be regarded both as strategies and techniques… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

• Challenges in implementing Nigeria’s Foreign policy’s administration.

Foreign Direct Investment into Nigeria in 2011, when Jonathan took office, increased from $6.5 billion in the previous year to $8.9 billion (Umejei, 2014). However, the figure has since been plummeting. In 2012 and 2013, FDI was $7 billion and $5.5 billion respectively (Umejei, 2014).

The Jonathan administration observed that “lack of continuity, consistency, and commitment (3Cs) to agreed policies, programs and projects…” is the reason why growth and development of the Nigerian economy do not correspond with “the overall welfare of Nigerian citizens, rising unemployment, inequality and poverty” (Akinterinwa, 2014, p. 275).

We know the administration has not changed its policies between 2011 and now, but perhaps its level of commitment has diminished, and it is not consistent in its efforts. Contributing to the decline of investments is the situation of insecurity and instability in the country. Attempts to mobilize the diaspora community to either return to Nigeria or make investments in the economy have come to naught… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

Summary

The findings of the study show that:

1. Internal challenges were responsible for dampening Nigeria’s attainment of positive international image and national transformation. Some of these challenges include leadership crisis, corruption, insurgency, irregular power supply, low quality public service delivery, and rating of the nation’s educational institutions amongst others… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Conclusion

This study gathered that Nigeria’s Foreign Policy’s administration had no significant role in boosting the global image of Nigeria. Therefore, it was concluded that the foreign policies established by Goodluck Jonathan’s administration had a near negative impact and implication on the global image of Nigeria as clearly stated before.

Recommendations

Based on the findings from the data collected, the following recommendations have been made:

1. A major reorganization of the Foreign Service such that positions of the Ambassadors and other key positions will no longer be politicized. Only career diplomats and practitioners who understand the nuances of international relations and global politics should be appointed into those sensitive positions and offices… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Bibliography

Books

Adeniran, Tunde (2008) “Foreign Policy, External Image and International Relations” in Sam Oyovbaire (ed.) Governance and Politics in Nigeria: The IBB and OBJ Years. Ibadan: Spectrum Books Ltd. (Economic Policies)

Agbu O (2009) Nigerian Foreign Policy Under President Umaru Musa Yar’adua: Challenges and prospects. The Nigerian Institute of International affairs (NIIA), Lagos. (Economic Policies)

Akinterinwa B. A (2004) Concentricism in Nigeria’s Foreign Policy. Vantage Publishers Limited, Ibadan. (Economic Policies)

Chibundu V. N (2003) Foreign Policy with Particular Reference to Nigeria (1960- 2002). Spectrum books Ltd, Ibadan. (Economic Policies)

Journals

Ajaebili C (2011) The Option of Economic Diplomacy in Nigeria’s Foreign Policy. International Journal of Humanities and Social Science 1: 277-280. (Economic Policies) (Economic Policies) (Economic Policies)

Chidozie F, Ibietan J, Ujara E (2014) Foreign Policy, International Image and National Transformation: A Historical Perspective. International Journal of Innovative Social Sciences and Humanities Research 2: 49-58. (Economic Policies) (Economic Policies)

Chukwuemeka E, Bartholomew U, Ugwu J (2012) Curbing Corruption in Nigeria: The imperatives of Good Leadership. Singaporean Journal of Business Economics and Management Studies 1: 61-81. (Economic Policies) (Economic Policies)

Published Works

Akinterinwa, B. (2014). Nigeria’s Foreign Policy Strategies and Techniques. In J. Ayoade, A. Akinsanya, & O. Ojo; The Jonathan Presidency (pp. 255-287). Lanham, Maryland: University Press of America. (Economic Policies) (Economic Policies)(Economic Policies)

Akinboye, S. O. (2013). Beautiful Abroad But Ugly At Home: Issues and Contradictions in Nigeria’s foreign Policy. Lagos: University Press. Pp. 42-48. (Economic Policies) (Economic Policies)(Economic Policies)

Alao A (2011) Nigeria and the Global Powers: Continuity and change in policy and Perceptions, South African Foreign Policy and African Drivers Programme. Occasional Paper Series (SAIIA) No 96. (Economic Policies) (Economic Policies)(Economic Policies)(Economic Policies)(Economic Policies)

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ABSTRACT

With the advent of the third millennium, the pace of globalization has continued to accelerate. One important economic consequence of globalization for developing countries has been the massive and unprecedented inflows of foreign direct investment during the final decades of the last 20th century.

Indeed, during the last decades of the last century; private capital flows wrested primacy of place from public flows; seizing the pre-eminent position as the source of foreign investment and development finance for developing countries… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

INTRODUCTION

Background of the Study

The progressiveness or retardedness of any economy of the world is anchored on the attainment of sustainable economic growth and development which invariably and undoubtedly depends greatly on the level of foreign investment inflows. Foreign direct investment inflows are the main engine of growth in most newly industrialized economics (NIES) of the world.

At the turn of the present century, privates foreign capital mostly flowed in the form of indirect investments from Europe to underdeveloped countries. Such capital flowed to low-income countries in the 1920s in the form of direct investment mainly into production for export, very little of it went to manufacturing for the home market. But since the Second World War, over half the private investment has been foreign direct investment but has been concentrated mainly in the copper’s electric, energy, etc. Only a small percentage has gone to manufacturing and distribution.

The indispensability of foreign Direct investment to the growth and development of both the developing and developed countries cannot be overemphasized indeed, the massive and unprecedented inflow of foreign direct investment in the last decades of the 20th century is an important economic consequence of globalization and liberation during the period, the penetration, breaking and dismantling of barriers to trade, capital flows across national frontiers have been ubiquitous.

Hence, the growing integration of markets and financial institutions coupled with increased economic integration has indeed been the magnet for foreign direct investment. According to GIWA (1997) in Obardan’s (2004) investment to a depressed economy is just like a blood transfusion to an anemic patient. As Giwa further stressed without investment, Income generation will be the decline as old assets and industries wear out not replaced or renewed.

Investment therefore in every economy can be classified into domestic savings of households, retained profits of business firms, and budget surplus of government and foreign direct investment that is financed from external sources… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Statement of the Research Problem

In spite of the myriad of incentives created by the government over the years, the performance of a foreign direct investment in Nigeria has not been encouraging in terms of the in-flow rate. The crux of this is to find out the main impact of FDI on Nigeria economy. The statement of the research problem for this study, therefore, arises from questions such as what is foreign direct investment flows; what is the nature of foreign direct investment; what are the available strategies and measures to promote foreign direct investment in Nigeria… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Research Objective

The key objectives behind this our study is to:

• Find the relationship between foreign direct investment and Nigeria’s economic growth.
• Find the impediments of foreign direct investment… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Significance of the Study

The importance of knowing the major impacts of foreign direct investment in Nigeria cannot be over-emphasized. In this study, it is very important as it would enable policymaker, to examine to what extent certain explanatory variables explained what happens to foreign direct investment in Nigeria and henceforth policymakers will have the foresight to better cushion the unpleasant effects of fluctuations in foreign direct investment inflows in Nigeria… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

LITERATURE REVIEW

Introduction

This chapter reviews materials written by scholars that are directly and indirectly related to the problem under study. It reviewed journals, thesis, and articles. The reviewed followed the following order; theoretical framework, the impact of FDI on Economic Growth in Nigeria, some stylized facts about FDI in Nigeria, sectoral analysis of FDI inflow in Nigeria, graphical analysis of FDI inflow to Nigeria, empirical literature and the summary of the chapter.

Concept of Foreign Direct Investment in Nigeria

An agreed framework definition of foreign direct investment (FDI) exists in the literature. That is, FDI is an investment made to acquire a lasting management interest (normally 10% of voting stock) in a business enterprise operating in a country other than that of the investor defined according to residency (World Bank, 1996).

Such investments may take the form of either “greenfield” investment (also called “mortar and brick” investment) or merger and acquisition (M&A), which entails the acquisition of existing interest rather than new investment. In corporate governance, ownership of at least 10% of the ordinary shares of voting stock is the criterion for the existence of a direct investment relationship.

Ownership of less than 10% is recorded as portfolio investment. FDI comprises not only a merger and acquisition and new investment but also reinvested earnings and loans and similar capital transfer between parent companies and their affiliates. Countries could be both hosts to FDI projects in their own country and a participant in investment projects in other counties. A country’s inward FDI position is made up of the hosted FDI projects, while outward FDI comprises those investment projects owned abroad.

One of the most salient features of today’s globalization drive is the conscious encouragement of cross-border investments, especially by transnational corporations and firms (TNCs). Many countries and continents (especially developing) now see attracting FDI as an important element in their strategy for economic development. This is most probably because FDI is seen as an amalgamation of capital, technology, marketing, and management… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Theoretical Framework

Renewed research interest in FDI stems from the change of perspectives among policymakers from “hostility” to “conscious encouragement”, especially among developing countries. FDI had, until recently, been seen as “parasitic” and retarding the development of domestic industries for export promotion.

However, Bende-Nabende and Ford (1998) submit that the wide externalities in respect of the technology transfer, the development of human capital, and the opening up of the economy to international forces, among other factors, have served to change the former image. Caves (1996) observe that the rationale for increased efforts to attract more FDI stems from the belief that FDI has several positive effects… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

FOREIGN DIRECT INVESTMENTS AND DEVELOPMENT: PROPONENTS AND ANTI-PROPONENTS

PROPONENTS — Most analysts believe that national and foreign private-sector enterprises is permitted to operate in a competitive market condition will offer developing countries the best prospects for speedy national economic growth. These analysts, however, do not view multinational capital as a panacea to developing countries. Amongst the proponents of foreign direct investments are Peter Drucker, Harry Johnson, Gerald Mier, Sanjaja Hall, Paul Stricter, Carlos, F, Ludiak, l.A, Manle, .F, Author Nwankwo and many more… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

ANTI-PROPONENTS — some analysts (known as the dependence school) are strongly opposed to pro foreign direct investment perspectives. Their arguments are based on a series of studies and research carried out. Such analysts include Dos Santos, Ronald Multer, Cardoso, Euzo Falleto, Dr. Fashola, and many others… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Impact of FDI on Economic Growth in Nigeria

There have been some studies on investment and growth in Nigeria with varying results and submissions. For example, Odozi (1995) reports on the factors affecting FDI flow into Nigeria in both the pre and post-Structural Adjustment Programme (SAP) eras and found that the macro policies in place before the SAP were discouraging foreign investors. This policy environment led to the proliferation and growth of parallel markets and sustained capital flight.

Ogiogio (1995) reports negative contributions of public investment to GDP growth in Nigeria for reasons of distortions. Aluko (1961), Brown (1962), and Obinna (1983) report positive linkages between FDI and economic growth in Nigeria. Endozien (1968) discusses the linkage effects were lower than the Chenery-Watanabe average (Chenery and Watanabe, 1958). Oseghale and Amonkhienan (1987) found that FDI is positively associated with GDP, concluding that a greater inflow of FDI will spell better economic performance for the country… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

RESEARCH METHODOLOGY

Introduction

In this chapter, the researcher attempts to present the method of study analysis in order to extend the empirical evidence in the case of Nigeria. The chapter defines the variables of the study and outlines the sources of data collection and analysis.

Research Design

Research design according to (Onwumere, 2005) is a kind of blueprint that guides the researcher in the investigation; a format that the researcher employs in order to systematically apply the scientific method in the investigation of the problem. Also,  (Asika,  2006),  describes research design as the structuring of investigation aimed at identifying variables and their relationship to one another… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

Population and Sample Size

The population of the study is the entire  Nigerian economy and the data will be drawn from 2015 to 2018.

Specification of Models

The study is largely quantitative and builds on existing research studies and methodologies. In this study, the researcher used some methods to test the hypothesis on the various relationships between Foreign Direct Investment and economic growth. The statistical methods used are the Ordinary Least Squares Method (OLS), Unit root test, the Co-integration test, and the Granger causality test. These methods are used in order to avoid a number of challenges and issues that normally crop up when qualitative methods are used especially in econometric studies. These include the issue of subjectivity and bias of responses and the inability to incorporate such biases in econometric models.

• ORDINARY LEAST SQUARES METHOD

The ordinary least squares method is one of the most popular and widely used methods for regression analysis.  The method was developed by Carl Friedrich Gauss   (1821)   and has subsequently evolved to become the Classical   Linear Regression Model (CLRM).  It is mainly used to establish whether one variable is dependent on another or a combination of other variables.  It entails establishing the coefficient(s) of regression for a sample and then making inferences on the population. The linear regression equation for this model is: (Scroll down for the link to get the Complete Chapter One to Five Project Material)

RESEARCH FINDINGS AND DISCUSSION

• Unit Root Test

It is suggested that when dealing with time-series data, a number of econometric issues can influence the estimation of the parameter using OLS. Regressing a time series variable on another time series variable using Ordinary Least Square (OLS) estimation can obtain a very high R2, although there is no meaningful relationship between the variables (Gujarati, 2018).

This situation reflects the problem of spurious regression between totally unrelated variables generated by a   non- stationary process. Therefore, it is recommended that a stationarity (unit root) test be carried out to test for the order of integration. For this study, the unit root test that was employed is the   Augmented   Dickey-Fuller   (ADF)   test and it was performed with EViews software… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

CONCLUSION AND RECOMMENDATIONS

This chapter summarizes the various research findings that were made from the study and supports them with the objectives of this research. Conclusions and recommendations were therefore made based on these findings.

• Conclusion

As one of the empirical studies on the analysis of Foreign  Direct Investment and economic growth in Nigeria, this study has made an attempt to understanding the relationship and interaction between them. The proxy for economic growth used in this study was the gross domestic product. It focused on the period 2015 to 2018 and used time-series data obtained from the  CBN,  World  Bank, and Federal  Office of Statistics.    Some statistical methods;    Ordinary    Least    Squares,    Unit root, Cointegration, and the Granger causality test were used to test for correlation and direction of causality… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

• Recommendations

Based on the foregoing findings and conclusions emanating from this study, the following recommendations were made:

• There is a need for domestic actions that involve actions to be taken by policymakers in the country. These include image building (re-branding Nigeria), domestic regulatory reforms, and marketing of investment
• Image building: Improving the currently bad image of the country is the key to reversing the dismal FDI trend of the country and Africa at large. This requires an increase in Political stability, Macroeconomic stability, and the protection of property rights as well as the rule of law… (Scroll down for the link to get the Complete Chapter One to Five Project Material)

REFERENCES

Ahmed A.       (1993) Strategies for foreign investment in Nigeria. A central Bank perspective Economic and Financial Review volume 26.

Adelegan, J.O. (2000). “Foreign direct investment and economic growth in Nigeria: A seemingly unrelated model”. African Review of Money, Finance and Banking, Supplementary issue of “Savings and Development” 2000. pp.5–25. Milan, Italy.

Aitken, B., G.H. Hansen, and A. Harrison. (1997). “Spillovers, foreign investment and export behavior”. Journal of International Economics, 43: 103–32.

Aitken, B., A.E. Harrison, and R. Lipsey. (1999). “Do domestic firms benefit from the foreign direct investment?” American Economic Review, 89: 605–18.

Ajayi S. I.        (1992)    An Economic Analysis of Capital flight from Nigeria: World Bank Working Paper Series No 993.

Akinlo, A.E. (2004). “Foreign direct investment and growth in Nigeria: An empirical investigation”. Journal of Policy Modelling, 26: 627–39.

Aluko, S.A. (1961). “Financing economic development in Nigeria”. The Nigerian Journal of Economic and Social Studies, 3(1): 39–67.

Anyanwu, J.C. (1998). “An econometric investigation of determinants of foreign direct investment in Nigeria”. In Investment in the Growth Process: Proceedings of the Nigerian Economic Society Conference 1998, pp. 219–40. Ibadan, Nigeria.

Aremu, J.A. (1997). “Foreign direct investment and performance”. Paper delivered at a workshop on Foreign Investment Policy and Practice organized by the Nigerian Institute of Advanced Legal Studies, Lagos on 24 March.

Ariyo, A. (1998). “Investment and Nigeria’s economic growth”. In Investment in the Growth Process Proceedings of Nigerian Economic Society Annual Conference 1998, pp. 389–415. Ibadan, Nigeria.

Asiedu, E. (2001). “On the determinants of foreign direct investment to developing countries: Is Africa different?” World Development, 30(1): 107–19.

Asiedu, E. (2003) “Capital controls and foreign direct investment”. World Development, 32(3): 479–90.

Asiedu, E. (2005). Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institution, and Political Instability. UNU/WIDER Research Paper 2005/24. World Institute for Development Economics Research, Helsinki.

Arthur, Nwankwo (1981) Can Nigeria survive the 4^th dimension publication.  Enugu.

Ayanwale, A.B., and A.S. Bamire. (2001). The Influence of FDI on Firm-Level Productivity of Nigeria’s Agro/Agro-Allied Sector. Final Report Presented to the African Economic Research Consortium, Nairobi.

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ABSTRACT

This study aimed to investigate the impact of Naira redesign on abduction in Nigeria. Some objectives served as the foundation for this investigation. The study used a descriptive and explanatory design, with questionnaires and library research being used to collect data. Primary and secondary data sources were employed, and the data was analysed using the chi square statistical technique at the 5% level of significance, with results given in frequency tables and percentages. The study’s findings revealed that Naira redesign had a major influence on reducing kidnappings in Nigeria.

ABSTRACT

The project investigates the psychological impact of Endars protests on youths. The project’s goal was to investigate the psychological effect of endsars protest on adolescents, identify the elements that influence the psychological effect of endsars protest on youths, and determine if the psychological effect of endsars protest on youths is gender-specific. The sample size was calculated by selecting 134 respondents from the total population. Structured questionnaires were distributed at random to residents of Bwari local government area, Abuja metropolis, Federal Capital Territory, Nigeria. The study’s findings revealed that the majority of respondents believe that endsars protest has a significant psychological effect on youth, that there are factors that influence the psychological effect of endsars protest on youths, and that the psychological effect of endsars protest is gender-based.

Chapter one

Introduction

Income and expenditures are the foundation of any healthy business or economy, because the national economy is a direct reflection of its citizens’ economies. The concept of expenditure and income in Nigeria must be properly understood. We are all aware that in a growing country like ours, there is a need for a specific study of how Nigerians spend their income in relation to their poverty level, given that the vast majority of Nigerians live below the poverty line of less than one dollar per day (Okonkwo 2007). Aside from this, it is important to understand the general Nigerian population’s spending patterns, particularly their saving habits. The definition of income and expenditures spans several sectors and types of transactions, as different professional disciplines interpret them in ways that are relevant to their unique conditions. Understanding the various categories, particularly expenditures, allows businesses, economies, and households to record financial data more precisely, which helps to reduce poverty in Nigeria.

Income is defined differently based on the specific field of company. General income is defined as cash or an equivalent derived from wages or salaries, land or building rent or interest, dividends, or investment profit (Mohammed 2005).

Economists and statisticians define revenue as the most money a person can spend in a particular period without becoming worse off.

In economic terms, income is the true driver of the economy, whether at the personal or national level, because buyer demand for goods and services can only exist if they have money to spend.

Expenditure is defined as cash or currency equivalents paid in exchange for goods and services. An expense can also be a charge against available revenue, such as an invoice that is awaiting payment.

Revenue spending pays for products and services that the family consumes in a short period of time, typically one year or less.

A capital expenditure occurs when a family or nation spends money on fixed assets such as machinery or massive equipment that will endure more than a year.

Businesses, individuals, and governments all want to keep costs as low as possible while maintaining revenue. This entails accurately recording and regulating revenue and expenses.

1.1 Statement of General Problem

In general, Nigerians have struggled with spending without a source of income. This problem has caused more harm than good to our economy as a whole because when expenditures are made without regard for income or amount generated, it contributes to Nigeria’s poverty rate.

Nigeria, as a developing country, has received criticism for having a high level of poverty, with about half of its population surviving on less than one US dollar per day. It is claimed that Nigerians spend extravagantly; if this is true, the cause for our decreasing economy is not far-fetched.

1.2. GOALS AND OBJECTIVES OF THE STUDY

This study will look at potential areas where Nigerians might be educated to enhance their level of savings. The following are the primary aims and objectives of this research project:

1. To educate Nigerians on the relationship between their expenditures and income in order to improve their savings habits.

2. Recommending ways to improve Nigeria’s overall economy.

3. Identifying the key causes of Nigerians’ excessive expenditures.

4. Calculating the effect of income received on expenditure.

1.3. The significance of the study

The primary goal of this study is to determine the major causes of Nigerians’ excessive expenditures. Another important aspect of this study is to determine whether there is a statistically significant relationship between expenditures and income in regard to poverty levels.

Another important relevance of this study is to evaluate whether there is a link between Nigeria’s economy and how Nigerians spend in relation to their income.

Based on the previous research and discussions, it is clear that there is sufficient justification to conduct a study on these aspects.

So that we may offer strategies for improving the economy, helping Nigerians save more, and finally understanding the causes of excessive spending in Nigeria.

1.4 Scope and Limitations of the Study

The goal of the study, as stated in the topic, is to determine the relationship between Nigerians’ expenditures and income in relation to their poverty levels.

Another goal of this research is to compare Nigerians’ income to their expenditures. The study comprehensively examines how and what Nigerians spend the majority of their income on.

LIMITATIONS

It is vital to discuss some of the limitations of this research. The main limitation is the difficulty of acquiring appropriate information. The school library contains pertinent books on the subject of study.

There was a difficulty with the data acquired because the researcher had to go about collecting these questionnaires from respondents. Following this issue is the combination of academic work and study.

There were a few occurrences of missing data in these questionnaires. Despite the limitations mentioned above, it is hoped that this research would be valuable to Nigerians who wish to improve their saving habits, as well as those who want to understand the relationship between expenditures, income, and poverty levels.

1.5 Definition of Terms

Expenditure is the act of spending or using money.

Expense is the money spent on anything.

Income is the money earned by a person, a region, a country, or other entity through effort, investment, time, or company.

1.6. RESEARCH HYPOTHESIS

The research hypotheses are listed below:

Hypothesis 1.

H0: There is no substantial correlation between income and expenditure.

H1: There is a strong link between income and expenditure.

Level of significance: 0.05.

If the p-value is less than the level of significance, reject the null hypothesis. Accept H0 if otherwise.

Hypothesis 2.

H0: There is no meaningful link between income and expenditure on the poverty line.

H1: There is a considerable link between income and expenditure on the poverty line.

The level of significance (α) is 0.05.

The decision rule is to reject H0 if the p-value is below the level of significance (α), and accept H0 otherwise.

Chapter one

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Over time, government expenditure, often known as government spending, has been acknowledged as a crucial tool in enhancing a country’s residents’ level of living.

Various spending on recurring and capital projects, such as school construction, the supply of decent and inexpensive health care, the payment of salaries/casual wages, the provision of good roads, power, and clean water, all influence standard of living (Morris, 1987).

Increased investment on these infrastructures tends to improve a country’s level of living. For example, governmental efforts to reduce mortality may necessitate more public investment, as may educational programs aimed at increasing primary completion rates.

However, what matters is not only how much money was spent, but also how effectively it was spent. A few countries show an inconsistent relationship between changes in public spending and outcomes.

Thailand, for example, has raised public spending on primary education more than Peru, but primary school completion rates have fallen in Thailand while increasing in Peru.

Similarly, a study of Malaysia in the late 1990s revealed minimal correlation between public spending on doctors and infant mortality, while the construction of public schools in Indonesia in the 1970s had no substantial positive impact on school enrolments.

After controlling for national wealth, the cross-country relationship between public spending and outcomes is found to be both statistically and substantively poor. The message is not that public funding cannot be successful; rather, it requires dedication and suitable policies, supported by effective public spending, to achieve these objectives.

Public spending is not always effective in providing quality services and reaching the intended recipients, who are frequently the poor, which contributes to the spending-outcomes gap. Another cause of such a weak link is the interplay between the private and public sectors.

Increasing public provision may simply push out, in part or whole, equally effective services provided by non-governmental organisations. Unless resources are provided to support services that benefit the poor, public funds spent on these services will not yield the best results.

If more public funds are spent on services, and more of that money is spent on services used by the poor, the spending pattern will influence the effectiveness of the spending. For example, wages and salaries for teachers account for 75% of recurring public education expenditure.

There is no doubt that teachers’ play a significant part in the schooling process and given;them proper incentives is important; nonetheless, spending on other vital input(such as textbooks) is equally important.

Spending too much money on one input will reduce the quality of learning. To overcome this, governments must address not only the technical or administrative issues of how much to spend on one input vs another, but also the institutional and political factors that influence these decisions (Son, 2009).

1.2 Statement of the Problem

Most poor Nigerians do not receive an equitable proportion of government spending on public services such as health and education. Benefit incidence analysis of public expenditure provides a more complete picture of who benefits from government expenditures.

Evidence strongly implies that the poorest fifth of the population receives less than a fifth of education and health expenditures, whereas the richest fifth receives more: 46% of education spending, and the lowest receive only 11% (Filmer 2003). Similarly, in some developing countries, such as India, the richest eight receive three times the lowest eight’s health-care subsidies.

One reason for this imbalance is because expenditure is biassed towards services mostly used by the wealthy; another reason is that, while channelling public money towards services used by the poor is beneficial, such programs may not reach the intended users.

1.3 RESEARCH QUESTIONS

The research questions designed to steer the project are:

Does government spending have a substantial impact on the standard of living in Nigeria?

Has government expenditure helped to raise the standard of living of its citizens?

Has the government’s spending on education and health care had a major impact on Nigerians’ living standards?

1.4 Research Objectives

The primary goal of the research is to investigate the impact of government spending on the standard of living. The specific aims of the study are:

The purpose of this study is to look at how government spending affects the Nigerian level of living.

To examine whether increased government spending has improved Nigerians’ level of living.

The purpose of this study is to determine whether government spending on education and health care has had a major impact on the Nigerian level of living.

1.5 Research Hypothesis

Ho: There is no significant association between government spending and the standard of living in Nigeria.

Hi: There is a strong link between government spending and standard of living.

Ho: Increased government spending has no substantial impact on Nigerians’ standard of living.

Hi: Increased government spending has a substantial impact on Nigerians’ living standards.

Ho: Government expenditure on education and health care has no substantial impact on Nigeria’s standard of living.

Hi: The government’s expenditure on education and health care has a substantial impact on Nigeria’s standard of living.

1.6 Significance of the Study

The study looks at how government spending affects the standard of living in Nigeria. Many studies have been conducted on government spending and its impact on Nigeria’s economy, but the researcher is attempting to add a new dimension to it by breaking down the variables into a specific economic indicator-standard of life.

The study will emphasise the varied effects of government spending on the standard of life and overall well-being of Nigerians. Various government bodies directly responsible for the country’s planning and budgeting will find the study valuable for monetary control in the economy.

The study would also be valuable for student researchers who wish to undertake research on government expenditures and how they effect Nigeria’s level of living.

Because there has not been enough research in this area, the researcher believes it is appropriate to investigate and offer possible policies that may be beneficial.

1.7 SCOPE OF THE STUDY

This research examines the impact of government spending on the Nigerian economy’s level of life over a 30-year period. A comprehensive overview of government capital and existing project expenditures serves as the project’s foundation.

The study will include a variety of economic variables from 1982 to 2012, including GDP, standard of living, inflation, and government expenditure.

1.8 Limitations of the Study

Time was a crucial barrier in the study. Combining academic work and research was tough for the researcher, therefore gathering data to do the research was challenging.

1.9 Definition of Terms

Capital expenditure refers to investment on permanent assets such as roads, schools, hospitals, buildings, plants, and machinery, the benefits of which are long-term.

Capital stock refers to the total worth of an economy’s fiscal capital, which includes both inventories and equipment.

Capital: Human-created resources (machines and equipment) utilised to manufacture goods and services.

Classical economics refers to macroeconomic generalisations accepted by most economists prior to the 1930s that led to the conclusion that a capitalistic economy would fully utilise its resources.

Current expenditure includes wages and salaries, supply and services, rent, pensions, interest payments, and social security payments. These are typically classified as consumable items, with the benefits spent within a single fiscal year.

A dependent variable is one that varies in response to a change in one or more other (independent) variables.

Direct relationship: A relationship between variables that change in the same way.

Economic growth refers to an increase in real output or real output per capita.

Economic growth refers to an increase in an economic indicator that often persists over time. The variable in question could be either real or nominal GDP.

Economic model: A simplified image of reality that depicts an economic condition.

Economic policy: A plan of action designed to solve or prevent a problem.

Economic resources include land, labour, capital, and entrepreneurs, all of which are utilised to produce commodities and services.

An expanding economy is one in which net domestic investment exceeds zero.

Fiscal policy is the use of taxes and government spending to shape the economy.

Government expenditure refers to the expenses incurred by the government for its own maintenance, as well as for the benefit of society and the economy in general.

Government spending: Spending by the government at whatever level. It includes spending on real products and services purchased from third-party suppliers; spending on employment in state services such as administration, defence, and education; spending on pension transfer payments; spending on community services; and spending on economic services.

Gross Domestic Product (GDP): The monetary value of products and services produced in an economy over a period of time, regardless of population.

Growth model: This is a simple approach for stimulating some parts of the actual economy.

Growth rate: The proportionate or percentage rate of rise of any economic variable during a given time period, often a year.

An independent variable is one that causes a change in another variable.

Industrially Advanced Countries (IACs) are countries such as the United States, Canada, Germany, Japan, and Western Europe that have created market economies based on substantial inventories of technologically advanced capital goods and a skilled labour force.

The International Monetary Fund (IMF) is an international organisation of states that was established after World War II to lend foreign currency to countries with temporary payment deficits and to administer adjustable pegs.

Investment is defined as spending on capital goods and adding to inventories.

Keynesian economics: The macroeconomic generalization which lead to the conclusion that a capitalistic economy does not always employ resources completely.

Labour productivity: Total output divided by the quantity of labour employed to produce the output.

Market failure is a label used to describe the belief that the market does not provide a solution to all economic problems.

Market forces are the forces of supply and demand that determine the market’s equilibrium quantity and price.

Monetarism is a macroeconomic perspective that holds that variations in aggregate output and price level fluctuations are primarily caused by changes in the money supply.

Neo-classical economics is the hypothesis that, while unplanned price level changes might produce macroeconomic instability in the short term, the economy remains stable at full employment levels of domestic output in the long run due to price and wage flexibility.

Nominal GDP: GDP at current base prices minus indirect taxes, net of subsidies.

Poverty is defined as the inability to meet basic consumer needs.

The price level is the weighted average of the prices paid for an economy’s final commodities and services.

Interest rates are the prices paid for using money or capital.

Transfer expenditures include pension, subsidy, loan interest, disaster relief, and other expenses. Transfers are defined as the redistribution of resources between individuals in society, with the resources passing through the public sector as an intermediary.

CHAPTER ONE

INTRODUCTION

The importance of economic policy as a tool for economic stabilisation by governments in various economies throughout the world cannot be overstated. Some of these policy measures may have an overall economic impact (e.g., the budget and inflation), while others may have specific consequences, such as a consumption tax on consumer goods (Killick, 1981; Black, Calitz, Steenekamp, & Ajam, 2000).

Policymakers throughout the world use a variety of strategies, either separately or in combination, to stabilise the boom-bust cyclical fluctuations of economic activity. The two most frequent macroeconomic management policies are fiscal and monetary policies.

The Central Bank implements monetary policy by adjusting the money supply and interest rates. The government of that economy manages fiscal policy by adjustments in government expenditure and taxes (Liborio, 2011; Hussain, Wijeweera, & Hoang, 2012).

Despite the fact that monetary and fiscal policies are conducted by separate institutions, they are far from autonomous. In reality, a change in one may affect the effectiveness of the other, and hence the total effects of any policy change.

Since the 1980s, economists have generally agreed that monetary policy is a more effective stabilisation tool than fiscal policy (Mishkin, 2004; Mankiw, 2005; and Bullard, 2012); however, the recent global financial crisis of 2007 has renewed much interest in fiscal stimulus.

In recent years, policymakers have been pushed to take unusual measures to stabilise the national economy. While monetary officials use quantitative easing (the purchase of financial assets to decrease long-term interest rates

hence boosting the money supply), fiscal authorities increase government spending and lower taxes to stimulate employment and output (Liborio, 2011).

The global economic crisis, which lasted until 2009, had a considerable negative impact on the real economic operations of many developing countries. For example, Nigeria’s real GDP growth rate fell from 7.6% in 2006 to 6.0% at the start of the crisis in 2008.

The global crisis had a far-reaching impact, with negative consequences in Nigeria’s agriculture, industrial, and wholesale sub-sectors (CBN, 2009). Similar patterns were noticed in various countries around the world.

To ensure that their economies are insulated or protected from the potential negative effects of such snowballing, many countries, particularly developing countries, have used domestic macroeconomic policy to re-engineer their economies and provide some policy palliatives that can aid in economic stabilisation.

Nigeria, in particular, responded to the global economic crisis by implementing both monetary and fiscal stimulants as proactive steps to save the economy from spiralling into severe economic misery. The government’s policy actions focused on three broad fronts: monetary policy, fiscal policy, and trade policy.

The Nigerian government and other policymakers have extensively employed fiscal and monetary policies to promote output, particularly the tools of government expenditure, money supply, and monetary policy rate (MPR).

To understand the policy basis of these fluctuations in output performance across time, we must look back to Nigeria’s fiscal and monetary policy.

Chapter one

INTRODUCTION

1.1 Background of the Study

Education is a foundation on which the potentials of society’s members are harnessed for self-fulfilment and social growth all over the world. This may explain why, in the twenty-first century, various countries have linked their political ideology, social investment programs, population, and economic strategies to formal education systems.

Education is portrayed as a powerful tool for sociocultural, economic, and technological growth in both the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs).

Education is a powerful tool in the struggle against poverty, disease, and ignorance (Nwanna-Nzewunwa, 2010). According to Alam and Nasir (2016), education has a direct impact on economic involvement, child mobility, fertility, and individual health. Education does more than help people realise their full intellectual potential.

Instead, it promotes their emotional, moral, social, psychological, and physical growth (Diene, 2012). Education’s goals include more than just developing reading and numeracy skills.

It provides people with skills for lifelong learning that extend beyond specialised expertise and jobs. It equips members of society (men and women, boys and girls) with the necessary abilities to handle present and future local and global social concerns.

As a result, according to Okeke (2016), the school provides a space for children to socialise informally and participate in a variety of social situations while being supervised by professionals.

According to Ogbondah (2016), education is the process of cultural transmission or socialisation that prepares a person for adulthood in society.

As society evolves and becomes more complicated, education is continually tailored to fit people’s current and future needs. As a result, the National Policy on Education asserts that education maximises an individual’s creative potential and capacities for personal fulfilment and societal advancement.

Education is a crucial component of national development and the most effective means of developing the entire individual. In this paper, women are defined as females who are mature enough to manage their own finances, responsible enough to contribute to self-reliance, development, and creativity, and capable of becoming agents of social, economic, and cultural change, thereby contributing to national and sustainable development.

Sustainability is a practice that ensures that natural and human resources are appropriately used, allowing the productive cycle to continue indefinitely.

Sustainable development is defined as the process of developing a wide range of opportunities so that individuals can reach their potential goals and aspirations without diminishing natural resources for future generations.

According to the Brundtland Report, as cited by the International Institute for Sustainable Development (IISD, 2013), sustainable development is defined as development that fulfils present needs while preserving future generations’ ability to meet their own needs.

The government, businesses, individuals, groups, civil society, and citizens all play essential roles in a country’s development.