This research work studies the gross
national income on consumption expenditure of the federal republic of Nigeria
from 1992 – 2011
It is aimed at fitting a prediction
equation for gross national income over consumption expenditure, gross national
income over time, to forecast the future national income and to test
significant difference between government and private final consumption
To achieve these, the methods of
analysis employed are regression and correlation analysis and student t – test
It was observed that there is a
strong positive relationship between gross national income and consumption
In conclusion, the research reveals
that there is an increase of gross national income over the years under study.
The student t – test reveal that the
total government consumption expenditure is different from that of private
Based on all these findings,
necessary recommendations were made.
Table of content
overview of central bank of Nigeria
of the study
and objectives of the research
of the study
of the research
and scope of econometrics
versus private expenditure
of data for the study
of the analysis used
2.5.3test of difference of two means
linear regression analysis
of difference of two means
conclusion and recommendations
1.0 1.0 Introduction
is a policy measures adopted in controlling inflation, employment and
increasing the national output which can be meaning if we tend our appeals to
This research work employs the method
of econometrics to evaluate the national output of the federal republic of
Econometrics is the application of
statistical methods for testing and quantification of hypothetical economic
relationship using data. It is with the aid of econometrics that we
discriminate between competing economic theories and put numerical clothing
onto the successful ones.
OVERVIEW OF CENTRAL BANK OF NIGERIA.
The central bank of Nigeria (CBN) was
established by the central bank act of 1958, although legal banking of CBN
recently rest mainly in the central bank of Nigeria degree no 24 of 20th
June, 1991, which supersedes the acts.
The promulgation of the degree marked
on important epoch because of the expanded powers conferred on the CBN to execute
its primary functions as well as a collecting and using all aspects of needed
The central bank of Nigeria (CBN), in
her process of executing this primary, functions returns, which are made to
include both operational and administrative statistics.
These are processed to provide the
balk of monetary statistics.
of the study
the role of finance in a developing
country such as ours cannot be over emphasized. This is because finance is one
of the major inhibiting factors in the transformation of our economy from the
developing one to a modern industrialized society.
This study is carried out to aid the
government in economic planning and to provide useful aids in judging
achievement in economic growth through national income statistics.
and objectives of the research.
1. To estimate the consumption
expenditure functions over gross national income for the purpose of prediction.
2. To estimate the relationship that
exists between consumption expenditure and gross national income.
3. Fitting a regression equation of
gross national income over years for the purpose of prediction.
4. To forecast the future consumptions
based on gross national income trend value.
5. To test if there is significant
differences in averages of government final consumption expenditure and private
of the study
the information used in this study is
extracted from the central bank of Nigeria (cbn) financial and economic review
of 1992 – 2011.
The study was to cover gross national
income and consumption expenditure meant of the federal republic of Nigeria.
Basically, econometrics methods of
analysis would be employed on the economic variables in evaluating their
performances based on the information collected.
Concepts and terms relating to
evaluation of research study are:-
This is the market value (total money
value) of all final goods and services produced in an economy as well as the
incomes generated by economic agents (buyers and sellers) over a period of time
usually a year.
It is the sum of current expenditure
on goods and services either by the private or government. Consumption is the
ultimate objective of economic activities to create utility so as to satisfy
The private sector constitutes the
largest component of national product. This is divided into three main
Namely; durable consumption
expenditure includes expenditures on administrative and internal security,
economic services, social and community services and transfer payments.
the method of data collection
employed in third study is purely secondary data collection.
All data were extracted from the CBN
financial and economic review from 1992 – 2011 via the CBN website.
of the research.
Unlike the primary data where
researcher knows the condition under which the data were collected and quite
aware of any limitation they may contains, the reverse is the case in a
secondary data. Users of secondary data cannot have through understanding of
the background as the original investigator and so he is unaware of any
Though the data that would be
presented by such a financial house as CBN could be said to be accurate. Such
data items and information is usually cumbersome and climsy for easy analysis.
Because their accuracy in estimation may be subjected to errors particularly
the cross national income
likely limitation may be when these data were collected and estimate from
source. Which is still a primary business of the data.