Lloyd Ahamefule Amaghionyeodiwe

Stock Market Development and Long-Run Growth in Nigeria

Abstract The study empirically assessed the relationship between stock market development and long-run economic growth in Nigeria for the period 1980 to 2000. The study used secondary data while four models of multiple regressions were specified. The regression results, which were obtained using the Ordinary Least Square (OLS), show that measures of stock market development statistically have no significant effect on economic growth in Nigeria during the period 1980 to 2000. The major implication of the findings is that if the Nigerian Stock Market is to significantly contribute to rapid economic growth, policies must be fashioned out to eliminate those factors that blur the effectiveness of the vehicle or transmission mechanism through which stock market activities influence economic growth. Based on the findings, it was recommended that there should be an improvement in the attractiveness of the market as a major source of raising capital. This will entail improvement in the physical infrastructure, more efficient share transfer and delivering system and provision of adequate and timely information on the market. Also, there should be improvement in the institutional regulation, environment and legal framework such that a balance is maintained between the soundness and safety of the market. And finally, there is the need to internationalize the stock market to improve the flow of savings. This willgive the market the advantages of risk diversification, improve information flow and encourage corporate control through investment in equity.

Government health care spending and the poor: evidence from Nigeria

Purpose - The purpose of this paper is to examine whether or not government health care spending reduces the poor-rich differences in health status. Specifically, it aims to assess the health status of the poor Design/methodology/approach - Regression analysis was carried out using the Ordinary Least Square method of estimation while secondary data was used. Findings - It was found that despite the increase in most components of health care spending in Nigeria, the health status of the average Nigerian and the condition of health infrastructure has not improved appreciably. Also, the poor have significantly worse health status than the non-poor and they (the poor) are more strongly affected by public spending on health care relative to the non-poor. Thus, the difference in impact of spending between the poor and the non-poor could be substantial. Originality/value - This study provides information that will help reposition policies on government spending, especially on health care, so as to enhance and improve the heath status of the poor in Nigeria, thereby reducing the poor-rich differences in health status.

Fuel Subsidy Reform and Environmental Quality in Nigeria

The study examines the existence of a long run effect of fuel subsidy reform on environmental quality in Nigeria for the period of 1970-2012 using the Johansen and the Engle–Granger two step co-integration procedure techniques. The study developed a three case scenarios including: (i) A case of subsidy payment, (ii) a case of effective subsidy and, (iii) a case of no subsidy payment. Findings from the study supported evidence of a long run sustainable equilibrium model. Also, our estimation results showed that the first and the last case scenario do not significantly influence environmental quality. This implies that subsidy payment in Nigeria does not enhance access and consumption of liquid fuel. On the other hand, the interaction of sound regulatory framework with subsidy payment (the case of effective subsidy) significantly exerts a responsive influence on environmental quality.

ENERGY CONSUMPTION AND GDP IN THE OECD COUNTRIES: A CAUSALITY ANALYSIS

Abstract This study investigated the nature or direction of causality between GDP, electricity consumption and total energy consumption in the OECD. Secondary data was used while both the ordinary least square (OLS) and generalized method of moments (GMM) estimators were employed to test for causality in our model. Our result found the presence of a bi-directional causality between energy consumption and GDP for the total energy demand model and between electricity consumption and GDP for the electricity demand model. By implication, the bi-directional causality in our estimated models suggest that both energy consumption and GDP are important factors in economic development in the OECD. Thus, if misguided policy measures are made to reduce energy consumption it could have a detrimental effect on GDP which will slow down economic growth. A recommendation is for policy makers to concentrate on encouraging energy efficiency as a way to reduce energy and electricity consumption.

Myths regarding contraception in Southwest Nigeria.

Sir: We read with interest the recent article by Habib et al. regarding the use of single-dose azithromycin to treat uncomplicated gonorrhoea. This study supported the use of 1g azithromycin based on a high rate of cure, with a failure rate of only 1.2% (two patients, one with an azithromycin-resistant strain of Neisseria gonorrhoeae). We have concerns regarding the recommendation for routine use of azithromycin to treat gonorrhoea. The 2003 Gonococcal Resistance to Antimicrobials Surveillance Programme (GRASP) revealed three cases of azithromycin-resistant N. gonorrhoeae in the 45 samples from our clinic (unpublished data) – a rate of 6.7%. In the GRASP 2002 study, the overall rate of azithromycin resistance was 0.4%, though the majority (67%) were from London. Although the frequency of azithromycinresistant strains is relatively low compared with resistance to penicillins and fluoroquinolones, there is a risk that the rate of azithromycin resistance will continue to increase if this drug is routinely used as a first-line treatment – the steep increase in ciprofloxacin-resistant strains (1.8% in 2000, 3.1% in 2001 and 9.8% in 2002) is a good example. The authors suggest that azithromycin is a good first-line therapy, but emerging resistance refutes this. The update of BASHH guidelines for the management of gonorrhoea (recently circulated in draft form) recommend intra-muscular (i.m.) ceftriaxone, oral cefixime or i.m. spectinomycin (all single-dose regimens) as first-line therapy for uncomplicated anogenital gonorrhoea. Alternative regimens, depending on sensitivity testing and/or local patterns of antimicrobial resistance, are oral ciprofloxacin, oral ofloxacin, oral ampicillin plus probenecid or other cephalosporins, again, all as a single dose. The guidelines acknowledge the efficacy of a 2g dose of azithromycin but, due to the high levels of gastrointestinal side effects and the emergence of azithromycin-resistant isolates, it is not recommended as a treatment for gonorrhoea. There is little evidence to support the use of a 1g dose. Habib et al.’s recommendations are based on results from gonorrhoea cases between January 2000 and June 2001. GRASP isolates in 2000 were not tested for azithromycin resistance; the rates reported in 2001 were 3.5% in the South-East and 0.9% in the NorthWest. The 2003 GRASP data have not yet been published, but with the marked increase in azithromycin-resistant isolates from our clinic one must consider the possibility of increases in other parts of the UK.

Twin Deficit in Nigeria: A Re-Examination

This study re-examines the long run relationship between the budget and current account deficits in an oil-dependent open economy like Nigeria using a multivariate Granger causality test within the VECM framework. This result confirmed the existence of a long run relationship between the budget and current account deficit in Nigeria, thus supporting the Mudell-Fleming theory and refuting the Ricardian Equivalence Hypothesis (REH). The causality result indicates no causality between budget deficit and current account while the current account deficit causes budget account deficit. This implies that reduction in the current account deficits will help reduce the “twin deficit” dilemma.