Open AccessLiquid Liabilities and Growth Finance Nexus: Implications for Nigeria’s Energy Sector
Author(s) -
Hafis Bello,
Evans Osabuohien,
Folorunso Sunday Ayadi,
Jeremiah O. Ejemeyovwi
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/665/1/012043
Subject(s) - liability , nexus (standard) , finance , investment (military) , economics , stock market , business , economic sector , financial system , economy , paleontology , horse , politics , computer science , political science , law , biology , embedded system
Liquid liabilities are required for the development of key sectors that drive the Nigerian economy by ensuring that credits are made available for investment purposes. However, controversies concerning the effectiveness of investments in fostering economic growth in Nigeria exist. These studies focus on the relationship amid liquid liabilities and finance for growth in Nigeria, with specific insight and implications for Nigeria’s energy sector. In achieving its objective, the study utilizes data from secondary sources from the annual CBN (1980-2018). This study finds that gross domestic savings significantly drive finance for growth in the long-run compared to stock market development and Remittance inflows. The findings imply that to finance growth efficiently in the Nigerian economy, attention should be paid to liquid liability development policies such as driving gross domestic savings by all stakeholders and attention should be paid to the Nigerian energy sector as it possesses the potential to both be a source of liquid liability and a viable investment option.