The working paper series are intended to mirror the advancement of activities and projects of the Department of Economics, University of Ilorin, Nigeria.
The movement of people, goods and services is imperative in any society. This is because economic activities must go on for people to survive and to ensure the development of the society as well. Movement becomes easy if the roads are safe given the attitude of the road users towards road traffic regulations such as Highway Code awareness. This makes it significant to examine what determines Highway Code awareness in Nigeria. The objective of the study was to evaluate the determinants of Highway Code awareness among commercial motorcyclists in Kwara State. The study used primary data sourced through questionnaire randomly distributed to 1,178 commercial motorcyclists in Kwara State, Nigeria. Statistics show that 32.97 percent, 45.16 percent and 23.08 percent of the commercial cyclists were aware of Highway Codes in the State, Urban and rural areas respectively. The logistic regression results show that operation hours, mode of operation, education and earnings among others explain Highway Code awareness. The study concludes that there exists a low level compliance with Highway Code awareness among the commercial cyclists and earnings is a key determinant of Highway Code awareness. The traffic law enforcement agents need to sensitize and educate the road users on road traffic regulations in Nigeria given the low compliance levels with Highway Code awareness among the commercial cyclists observed in the study.
Roads are constructed to be used licensed drivers for safe arrival. Motorcycles constitute about a quarter of vehicles involved inn road crashes in Nigeria. This justified the need to investigate whether motorcyclists have valid driver license or not to operate on Nigerian roads. The study randomly sampled 1,178 commercial motorcyclists called Okada in Kwara State, Nigeria. Compliance model based on logistic regression was used for analysis. It was found that compliance with license holding stood at 32 percent for the State. Urban areas have 64.71% compliance rate while rural areas have 35.29%. These are indications of weak enforcement. Highway Code awareness was found to be one of the common and significant factors for the State, urban and rural logistic models. Using the State model, the odds of motorcyclists with knowledge of the existence of Highway Code having a valid driver license are 176.7 percent higher than those without the knowledge of its existence. Both theory and practical tests are usually not conducted before licenses are issued. There is the need for coordinated enforcement, instiitutional reform and monitoring in the licensing procedure and pseudo-formalization of union activities to include monitoring of compliance with safety rules by members.
Commercial motorcycle operation n Nigeria is a gap-filler and serves as a source of earnings for the operators in both rural and urban areas. This paper examines the determinants of earnings among commercial cyclists called okada in Kwara State, Nigeria. The data was derived from a structured questionnaire randomly administered to 1,197 okada riders in Kwara State. Mincerian equation was used as the tool for data analysis. It was found that okada operation provides employment for about eleven thousand people in the State; and serves as means of livelihood to their families. The mean daily earnings of the okada riders stood at US$11.31. Location, number of hours worked per day, license holding; passengers carried per day, and previous occupation were found to be significant and positive determinants of earnings. Licensed holders earn 27 percednt higher than illegal operators. It is therefore recommended that enforcement should be stepped up to get rid of illegal operators so that licensed operator could earn more.
This paper examines how the quest for rapid economic growth and development has equally generated negative environmental effects. That is, how externalities from farming, the transportation system, oil exploration and urbanization have resulted in environmental degradation in Nigeria. The paper then highlights some environmental problems that originate from working in the Nigeria ecosystem. Finally, the papers calls for appropriate polity instruments to regulate the processes of negative externalities resulting from man's activities in an attempt to pursue economic development in Nigeria.
The paradox of rising trend of unemployment in Nigeria amid increasing government expenditures and increasing GDP growth (at least since 2000) calls for empirical investigation. Therefore, this paper attempts to empirically examine the relationship between unemployment and government expenditure in Nigeria. Descriptive statistics and time series econometrics are used analyse the data obtained from CBN bulletins and NBS database. The descriptive statistics shows that the bulk of the unemployed are youths and people with not more than secondary education. Generally, unemployment is found to be trending upward and it is more chronic in the North-West, North-East and South-South geopolitical zones. The unit root tests show that almost all variables are integrated at order (1) while the Johansen cointegration test shows evidence of long run relationship. The final parsimonious Error Correction Model (ECM) result shows that both recurrent and capital government expenditure have no significant impact on unemployment in Nigeria. Instead, the shares of manufacturing and agricultural output in the GDP have significant impacts on the rate of unemployment. The former has negative impact while the later has a positive impact. This implies that fiscal policy cannot be an effective mechanism of reducing unemployment in Nigeria, rather an expansion of the country's manufacturing sector. We therefore, conclude that conducive environment shold be created for the manufacturing sector to thrive.
There is growing emphasis on the role of institutions and governance on
explaining Africa’s economic growth. However, it is not clear which of the
institutions matter most. Therefore ,the objective of this paper is to answer two
separate questions: (i) Do institutions really matter in Sub-Saharan Africa?, (ii) If
institutions matter, which of them matters most? Arellano and Bond first difference
and Blundell-Bond System Generalized Method of Moment (GMM) estimators
were used to estimate the specified models. Our results show that, institutions
really matter for Sub-Saharan Africa’s economic performance, among which
regulatory quality appeared to be the most important. Thus the economic
performance of the region could be enhanced by improving regulatory quality.
Road traffic offences and their negative consequences are rampant in Nigeria. A number of institutions have been put in place to check this menace, but it persists. This paper therefore examined the relationship between traffic offences and traffic institutions. An inspection game of enforcement of road traffic rules is constructed using a simple two-person game between road traffice police and road users. The results show that there was no pure strategy Nash equilibrium. However, the mixe energy Nash equilibrium showed that the probability of obeying traffic rules increased as the cost of monitoring decreased, while it declined with increase in the cost of monitoring. Also, as the cost of breaking rules increased relative to gains of breaking them, the probability of breaking rules reduced. It was thus recommended that the cost of breaking rules be increased by either increasing the fines or increasing the probability of punishing road traffic offenders.
The informal transport sector most especially the commercial motorcyle taxi business popularly referred to as "Okada" in Nigeria serves as a source of livelihood for both the rural and urban poor. This is because the formal and the private organised sectors could not generate enough employment given the economic crisis in the country. This paper evaluates Job creation among commercial cyclists in Kwara State, Nigeria. The primary data used in the study were derived fromt the structured Questionnaire administered to 1,197 "Okada" riders in Kwara State across the rural-urban divide. And that secondary data were sourced from Kwara State Board of Internal Revenue, Central Motor Registry Unit Ilorin. A Job creation and Job destruction model was used as tool for data analysis. The mean age of "Okada" operators was computed at 32 years; the average household size was estimated at 4; the mean daily earnings stand at 11.31 US dollars (N1,696.56) and the average daily savings was 3.5 US dollars (N527). Commercial cyclists who operate on full-time constitute 62.19 percent of the sampled operators while 37.81 percent of the "Okada" riders are employed on part-time basis. Results from the study show further that the Job creation rates across the 16 local government areas in Kwara State, Nigeriaare positive. This implies that "Okada" business generates employment for both the rural and urban poor. About 11,972 registered cyclists are currently employed in commercial motorcycle business in Kwara State, Nigeria. The government should assist the informal transport sub-sector through the provision of favourable operational environment in order to increase its employment creation capacity.
An empirical analysis of the rate of poverty and the decomposition of poverty status in the urban informal sector of Kwara State was carried out using a set of household data generated by the use of a structured questionnaire. The study used consumption-expenditure per adult equivalent and the P-alpha class poverty measure to determine the rate of poverty. The result of the analysis indicates that the rate of poverty was high with 63 percent of the operators’ consumption-expenditure per adult equivalent falling below the poverty line of N9,837.66 per month. The poverty gap index was 0.43 and the severity of poverty index stood at 0.28. By decomposition, operators in the sector that are male, those not married, those with less than four children, those with tertiary education, those that did not belong to any trade association and those engaged in transport business are poorer in the sector. The consequences include the inability to participate in development decisions that affect their lives and their lack of power and voice to change things in their favour. Sufficient funds by financial institutions and government to help expand their businesses, public investment in infrastructural facilities, especially in electricity supply and self-help/communal assistance and the tenets of social capital were suggested as remedies.
Factors of production would remain idle and cannot produce anything if there is no entrepreneur to organise them for productive enterprise. It is the calculated effort of entrepreneurs that create value in society by producing products and services. Entrepreneurial activities create jobs and wealth for both the entrepreneurs and their employees. Thus, developing entrepreneurial activities for mass of people will go a long way in solving many socio-economic problems. However, the success of entrepreneurial activities depends on a number of factors called entrepreneurial environment. Therefore, this paper examined the characteristics of Nigeria entrepreneurial environment and compare it with other African countries, and various policies issues that stimulate entrepreneurial activities in the country. Selected indicators in the World enterprise survey data were used. The data show that entrepreneurship activities in Nigeria is relatively lower than South Africa, Kenya, Ghana and Egypt. Nigerian government at different times introduced policies and programmmes to stimulate entrepreneurship activities in the country. However, these policies and programmes could not yield desired result. It is therefore recommended that more important and radical efforts should be taken by government to improve the entrepreneurial environment in order to encourage more entrepreneurs to get involved in entrepreneurship.