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Public Sector Financial Dynamics in Nigeria: An Outlook to Year 2032

Rex Oforitse Aruofor, Ph.D, Daniel Risiagbon Ogbeide, Ph.D

Abstract

Prudent financial management is sine qua non to optimum growth and development of any nation. Over the past years, studies have revealed that the poor development and sluggish growth of the Nigerian economy is due to mismanagement. The purpose of financial management in an economy is to facilitate the efficient allocation of resources, mobilize revenue into productive investments, and maintain overall economic stability and growth. The main sources of finance of the Nigerian economy include oil and non-oil revenue, domestic and external debts, money supply and government expenditure. These revenue sources are managed through recurrent and capital budget allocations to productive sectors and sub-sectors of the Nigerian economy with a view to maximize the wealth of the nation in order to achieve overall growth and development. This study is an attempt to expose the dynamics of financial management in Nigeria at the macro level with a view to determine how well these objectives are being realized. The Total Differential Modeling Approach (ecostatometrics) and Markov Chains Analysis were applied to reveal the transition matrix of Financial Dynamics in Nigeria and forecast the outlook to year 2032. The result indicates that in Nigeria, financial management does not promote technological development and advancement and that investment in Education leaves much more to be desired. Government should intentionally transform the economic landscape of the country, poised for growth and development. Key Words: Public Sector, Finance, Revenue, Debt, Expenditure, Total differential systems modeling approach, Markov Chains Analysis and Nigerian economy.

Keywords

Public SectorFinanceRevenueDebtExpenditureTotal differential systems modeling approachMarkov Chains Analysis and Nigerian economy.

References

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