Economic Development And Capital Growth In Nigeria – The Role Of World Bank Assisted Loans
Dr John Okey Onoh
Department of Banking & Finance, Abia State University, Uturu, Nigeria.
Gbalam Peter Eze Ph.D
Department of Finance & Accountancy, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria
Abstract
This work was focused on the study of impact of World Bank loans on Nigerian economic growth using a correlational analysis. The problem of study was that the many scholars such as Stackey (2014) insist that Nigeria has not utilized its World Bank loans to serve the maximum capacity of the country’s economic potentials. The objectives of the study include using World Bank loans to match economic growth. The methodology used in testing the three hypotheses was simple regression where the LogWBL was used as determinants in varying the magnitude and direction of FDI, GNE and GFCF as percentages to GDP. The findings indicated that for all the hypotheses considered, there were positive but significant effects on the dependent variables hence the the decision to reject the null hypotheses. In conclusion, the econometric evidence in chapter four suggests that the effect of the independent variable on these macro-economic measures of growth in the economy depends on the consistency or otherwise of monetary and fiscal policies pursuing them. In this instance economic goal congruence is the focal point between the overall efficiency in utilizing these loans so the greater the efficiency in utilizing these resources, the greater the impact on the economic variables hence economic growth. However, it is recommended that if the economy of Nigeria wants to experience real growth, then world bank loans should be appropriated to areas of need such as infrastructural development, education. In addition these loans are better priotized in locations where the comparative advantage is in the hands of a segment which can wield its resources most effectively. Nigeria being a diverse society with the largest (and still expanding) population in Africa has potentials in Agriculture, Commerce, Manufacturing etc. But rudderless economic policies over the years, corruption and political brigandry has to be minimized if not stopped in it’s entirety.