The Impact of Private Sector Investment on the Economic Growth of Nigeria
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To determine the relationship between private sector spending and GDP.
- To examine the impact of private sector investment on economic growth in Nigeria.
- To ascertain how supportive is private sector to Nigeria economy
CHAPTER TWO
REVIEW OF RELATED LITERATURE
CONCEPTUAL FRAMEWORK
In this section, the concept of investment, private sector and economic growth are explained. Private sector (privately owned part of the economy) is the part of the free market economy that is made up of companies and organizations that are not owned and managed by the government. The Central Bank of Lesotho (2009) defined the private sector as a basic organising principle for economic activity in a market–based economy where physical as well as financial capital is generally privately-owned and production decisions are made for private gain. Thus the private sector in this study is the business organisations that are owned by individuals for their own economic gains. In Keynesian terminology, investment refers to addition to capital equipment which enables increase in the production of capital goods (Jhingan, 2003). The term, investment, according to Ibenta (2005), may be defined as accumulation and commitment of fund in financial and real assets with the objective of obtaining income over time. He further posits that it is a commitment of resources made in the hope of realising benefits that are expected to occur over a reasonable long period of time in the future. Investment can also be referred to as the production of capital goods (Heim, 2008).Investment thus includes new plant and equipment, construction of public works like roads, dams, buildings, etc. Investment can be defined as the outlay of money for future use (Agu, 2015). On the bases of the above definitions, investment involves an outlay of fund with the expectation of future income. Investment can be divided into autonomous and induced investment. Autonomous investment is service based and not induced by demand as it is not influenced by immediate returns while induced investment is largely profit motivated. Autonomous investment is in the purview of the public sector and therefore propelled by the government. Thus investment is made by the public sector and the private sector. All government capital expenditures form public investment. Private sector investment include all investment made by the private sector, these include domestic investment, and foreign private investment. According to Adetiloye and Adeyemo(2012), real domestic investment is expenditure made to increase the total capital stock in the economy. This is done by acquiring further capital-producing assets and assets that can generate income within the domestic economy.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of private sector investment on the economic growth of Nigeria
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was on the impact of private sector investment on the economic growth of Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of private sector investment on the economic growth of Nigeria
Summary
This study was on the impact of private sector investment on the economic growth of Nigeria. Three objectives were raised which included: To determine the relationship between private sector spending and GDP, to examine the impact of private sector investment on economic growth in Nigeria and to ascertain how supportive is private sector to Nigeria economy. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Dangote group of company, Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made manager, HRMs, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
According to Andabai (2012) Nigeria like most African countries at independence relied heavily on public sector-led growth and presently, this arrangement is gradually changing with government embracing privatization of its public enterprises. That is why emphasis is now being laid on private sector-led development to move the new economic programmes to government forward. However, private sector growth in Nigeria for the past forty-four years has not been very significant despite remarkable increases in the number and variety of financial institutions presently in operation.
Recommendation
Government should concentrate on providing the necessary infrastructure and creating a conducive environment to enable private sector investment activities thrives
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