Journal of Economics and Development Studies

The Effects of Macroeconomic Variables on Lagos State Economy: As Lagos Economy Goes, So Goes the Economy of Nigeria?
G. Solomon Osho, Onyekachukwu Adishi

Abstract
The Lagos state population was estimated about 17.5 million in 2017 and projected to increase to approximately 300 million in 25 years. While Lagos generates about10% of the Nigeria’s GDP, the city is currently facing economy decline due to fluctuations in major macroeconomic index, particularly in the global oil prices. Nigeria has experienced fluctuation in oil revenue; in 2014 a barrel was $112 and averaged about $50 as of 2017; consequently, their daily crude output is about 2.5 MBPD. The Nigerian National Bureau of Statistics reported that in the first quarter of 2016, the economy had shrunk by 0.4%, causing the nation to lose about $30 million of daily revenues. Therefore, the principal aim of this research study is to attempt to examine the effects of major macroeconomic variables on the economy of Lagos state. Specifically, it will discuss how these major economic measures have inhibited the economic growth of major sectors of the economy of Lagos state. The finding indicates that the volatility in interest rate is a major determinant in gross regional domestic product. As real interest rate increases the GRDP fall, inhibiting urban economy growth in Lagos state. Therefore, some international financial institutions often introduced numerous financial initiates for the borrowing regional economy with little or no supervision of the proposed program-initiates.

Full Text: PDF     DOI: 10.15640/jeds.v7n1a1