Innocent Okwanya | Federal University Lafia. Nasarawa State. Nigeria (original) (raw)
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The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nig... more The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nigeria literature. A major policy concern on fuel subsidy reform is its adverse effects on the poor. This paper evaluates the impact of fuel subsidy reforms on consumer price index (CPI) since 1986. The study uses the co-integration and error correction model (ECM) to establish the relationship between fuel subsidy removal and CPI using data of the pump price of premium motor spirit (PMS) and CPI from 1986 to 2014. The study found that although the change in the fuel price does have short term impact on CPI, the short run impact is 12 percent. Only 0.2 percent of this distortion in CPI caused by such change is corrected within a year. This implies that fuel subsidy reforms will not lower the real household income or increase poverty, but could have permanent impact on the economy. The study opined that gradual removal of fuel subsidy is found to have little impact on the price of retail goods. Fuel subsidy reforms should be embarked upon and the fiscal savings invested in ventures that will increase the income and welfare of poor households.
Finance is vital for inclusive growth. The financial market is the mother of all markets; hence f... more Finance is vital for inclusive growth. The financial market is the mother of all markets; hence financial inclusion is critical to achieving inclusive growth in the economy. The importance of financial inclusion arises from the problem of financial exclusion of nearly 3 billion people from the formal financial services across the world. This paper explores the level of financial inclusion and its potential impact on an inclusive growth of the Nigerian economy, using relevant inclusive growth indices and indicators. The results revealed that the depth of financial inclusive is shallow even among African economies and more-so with emerging economies. It therefore recommends amongst others, the deployment of enhanced mobile banking and internet services by financial institutes to improve access to bank accounts and other services as well as the active participation of educational institutes in furthering financial literacy.
The aim of this paper is to investigate the relationship between total energy consumption and pov... more The aim of this paper is to investigate the relationship between total energy consumption and poverty rate in Nigeria. To achieve this purpose the study employs ordinary least square regression analysis and the cointegration analysis to test for the long run relationship. The study also use the Granger Causality test to ascertain if energy consumption Granger cause poverty or otherwise. The empirical results show that a long run co-integrated relationship exists between total energy consumption and poverty rate in Nigeria. The long-run co-integrating regression result reveals that if total energy consumption is increased by one percent poverty rate will decrease by 0.33 percent. We also found a strong causal relation which runs from total energy consumption to poverty rate in Nigeria. These findings clearly indicate that energy consumption has a significant impact on poverty rate in Nigeria. The study recommends that there is need for the government to make energy available for the citizens so as to make them self-reliant-thus increasing employment opportunities, income level and reduce poverty rate in Nigeria.
The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nig... more The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nigeria literature. A major policy concern on fuel subsidy reform is its adverse effects on the poor. This paper evaluates the impact of fuel subsidy reforms on consumer price index (CPI) since 1986. The study uses the co-integration and error correction model (ECM) to establish the relationship between fuel subsidy removal and CPI using data of the pump price of premium motor spirit (PMS) and CPI from 1986 to 2014. The study found that although the change in the fuel price does have short term impact on CPI, the short run impact is 12 percent. Only 0.2 percent of this distortion in CPI caused by such change is corrected within a year. This implies that fuel subsidy reforms will not lower the real household income or increase poverty, but could have permanent impact on the economy. The study opined that gradual removal of fuel subsidy is found to have little impact on the price of retail goods. Fuel subsidy reforms should be embarked upon and the fiscal savings invested in ventures that will increase the income and welfare of poor households.
The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nig... more The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nigeria literature. A major policy concern on fuel subsidy reform is its adverse effects on the poor. This paper evaluates the impact of fuel subsidy reforms on consumer price index (CPI) since 1986. The study uses the co-integration and error correction model (ECM) to establish the relationship between fuel subsidy removal and CPI using data of the pump price of premium motor spirit (PMS) and CPI from 1986 to 2014. The study found that although the change in the fuel price does have short term impact on CPI, the short run impact is 12 percent. Only 0.2 percent of this distortion in CPI caused by such change is corrected within a year. This implies that fuel subsidy reforms will not lower the real household income or increase poverty, but could have permanent impact on the economy. The study opined that gradual removal of fuel subsidy is found to have little impact on the price of retail goods. Fuel subsidy reforms should be embarked upon and the fiscal savings invested in ventures that will increase the income and welfare of poor households.
The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nig... more The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nigeria literature. A major policy concern on fuel subsidy reform is its adverse effects on the poor. This paper evaluates the impact of fuel subsidy reforms on consumer price index (CPI) since 1986. The study uses the co-integration and error correction model (ECM) to establish the relationship between fuel subsidy removal and CPI using data of the pump price of premium motor spirit (PMS) and CPI from 1986 to 2014. The study found that although the change in the fuel price does have short term impact on CPI, the short run impact is 12 percent. Only 0.2 percent of this distortion in CPI caused by such change is corrected within a year. This implies that fuel subsidy reforms will not lower the real household income or increase poverty, but could have permanent impact on the economy. The study opined that gradual removal of fuel subsidy is found to have little impact on the price of retail goods. Fuel subsidy reforms should be embarked upon and the fiscal savings invested in ventures that will increase the income and welfare of poor households.
Finance is vital for inclusive growth. The financial market is the mother of all markets; hence f... more Finance is vital for inclusive growth. The financial market is the mother of all markets; hence financial inclusion is critical to achieving inclusive growth in the economy. The importance of financial inclusion arises from the problem of financial exclusion of nearly 3 billion people from the formal financial services across the world. This paper explores the level of financial inclusion and its potential impact on an inclusive growth of the Nigerian economy, using relevant inclusive growth indices and indicators. The results revealed that the depth of financial inclusive is shallow even among African economies and more-so with emerging economies. It therefore recommends amongst others, the deployment of enhanced mobile banking and internet services by financial institutes to improve access to bank accounts and other services as well as the active participation of educational institutes in furthering financial literacy.
The aim of this paper is to investigate the relationship between total energy consumption and pov... more The aim of this paper is to investigate the relationship between total energy consumption and poverty rate in Nigeria. To achieve this purpose the study employs ordinary least square regression analysis and the cointegration analysis to test for the long run relationship. The study also use the Granger Causality test to ascertain if energy consumption Granger cause poverty or otherwise. The empirical results show that a long run co-integrated relationship exists between total energy consumption and poverty rate in Nigeria. The long-run co-integrating regression result reveals that if total energy consumption is increased by one percent poverty rate will decrease by 0.33 percent. We also found a strong causal relation which runs from total energy consumption to poverty rate in Nigeria. These findings clearly indicate that energy consumption has a significant impact on poverty rate in Nigeria. The study recommends that there is need for the government to make energy available for the citizens so as to make them self-reliant-thus increasing employment opportunities, income level and reduce poverty rate in Nigeria.
The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nig... more The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nigeria literature. A major policy concern on fuel subsidy reform is its adverse effects on the poor. This paper evaluates the impact of fuel subsidy reforms on consumer price index (CPI) since 1986. The study uses the co-integration and error correction model (ECM) to establish the relationship between fuel subsidy removal and CPI using data of the pump price of premium motor spirit (PMS) and CPI from 1986 to 2014. The study found that although the change in the fuel price does have short term impact on CPI, the short run impact is 12 percent. Only 0.2 percent of this distortion in CPI caused by such change is corrected within a year. This implies that fuel subsidy reforms will not lower the real household income or increase poverty, but could have permanent impact on the economy. The study opined that gradual removal of fuel subsidy is found to have little impact on the price of retail goods. Fuel subsidy reforms should be embarked upon and the fiscal savings invested in ventures that will increase the income and welfare of poor households.
The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nig... more The partial removal of fuel subsidy in Nigeria in 2012 has generated a lot of argument in the Nigeria literature. A major policy concern on fuel subsidy reform is its adverse effects on the poor. This paper evaluates the impact of fuel subsidy reforms on consumer price index (CPI) since 1986. The study uses the co-integration and error correction model (ECM) to establish the relationship between fuel subsidy removal and CPI using data of the pump price of premium motor spirit (PMS) and CPI from 1986 to 2014. The study found that although the change in the fuel price does have short term impact on CPI, the short run impact is 12 percent. Only 0.2 percent of this distortion in CPI caused by such change is corrected within a year. This implies that fuel subsidy reforms will not lower the real household income or increase poverty, but could have permanent impact on the economy. The study opined that gradual removal of fuel subsidy is found to have little impact on the price of retail goods. Fuel subsidy reforms should be embarked upon and the fiscal savings invested in ventures that will increase the income and welfare of poor households.