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Effects of Rice Trade Policies on Household Welfare in Nigeria
Published 2014Call Number: Loading…
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DETERMINANTS, PREVALENCE AND EFFECTS OF ELECTRICITY THEFT AMONG HOUSEHOLDS IN LAGOS STATE
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Page will reload when a filter is selected or excluded.- Electric power utility 1 results 1
- Electricity theft in Lagos State 1 results 1
- Household welfare 1 results 1
- Inconsistent trade policies have characterised Nigeria’s rice importation, leading to planning and decision-making challenges for producers and consumers, and with fluctuating consequences on welfare status. However, studies on Rice Trade Policy (RTP) have been carried out within the partial equilibrium framework which do not reveal the welfare effects on all sectors and households in the economy. For effective RTP, an understanding of the economy-wide welfare effects is necessary which is possible within a general equilibrium framework. The economy-wide welfare effects of RTPs on households in Nigeria were therefore investigated. Value of domestic production, inputs and intermediate products were obtained from Nigerian Institute for Social and Economic Research’s Input-Output (I-O) table. From the I-O, the economy was grouped into rice, Other Agriculture (OA), Oil and Mining (OM) and Manufacturing and Services (MS) sectors. Household incomes were collected from National Bureau of Statistics’ Nigerian Living Standards Survey (NLSS). From NLSS, households were classified into Rural North Household (RNH), Rural South Household (RSH), Urban North Household (UNH) and Urban South Household (USH). Value of imports and import charges, as measures of Import Tax (IT), were gathered from the Central Bank of Nigeria’s trade summary. All data were for year 2004. Two trade protection policy instruments: Import Ban (IB) and Eighty Percent Tariff Increase (EPTI); and two trade liberalisation policy instruments: Five Percent Tariff Reduction (FPTR) and Tariff Elimination (TE) were identified for simulation. Data were analysed using computable general equilibrium model and Hicksian measures of equivalent variation. Total output valued at ₦11,065 billion comprised MS (42.9%), OM (28.9%), OA (27.5%) and rice (0.7%). Household Income (HI) totaled ₦8,260 billion comprising USH (43.1%), UNH (32.8%), RSH (13.5%) and RNH (10.6%). The IT contributed 77.5% of government revenue. Rice output increased most by 3.1% under TE followed by 1.1% under FPTR. Least increase in rice output of 0.1% occurred under EPTI. Output decreased most in OA (21.7%), OM (0.01%) and MS (0.1%) under TE. However, output increased by 0.5% in OA and decreased least in OM and MS with 0.1% and 0.6% respectively under FPTR. Rural north household had the highest increase in HI of 0.3% under IB but recorded the highest decrease of 17.9% under TE. Least decrease in HI was recorded for RNH (0.1%), RSH (0.01%) and USH (0.2%) under FPTR whereas, UNH income increased by 0.1%. Import ban improved RNH welfare most by ₦2.3 billion while TE decreased it most by ₦115.0 billion. Social welfare loss occurred under all RTPs but was lowest (₦8.0 billion) under FPTR. Highest loss in welfare of ₦694.1 billion occurred under TE. Rural households benefitted under protectionist rice trade policies but the social welfare effect on the economy was negative. However, mild rice trade liberalisation of 5% tariff reduction would minimise Nigeria’s welfare loss from rice trade policies 1 results 1
- Rice trade and tariff 1 results 1
- Trade protection 1 results 1
- Unstable electricity supply 1 results 1
- Unstable electricity supply has been a major hindrance to economic development in Nigeria. Attainment of stable and reliable electricity supply requires three basic dimensions: technicalities, organisational structures and reduction of Electricity Theft (ET) to the barest minimum. Previous studies focussed more on the technical and organisational requirements with little attention paid to ET and its resultant effects particularly at household level. Therefore, this study was designed to examine the determinants of ET, its prevalence and effects among households in Lagos State, Nigeria. Becker’s Economic Theory of Criminal Behaviour served as the framework, while a survey design was adopted. A self-developed structured questionnaire focusing on determinants, prevalence and effects of ET was randomly administered to 580 household’s (area of franchise under Ikeja Electric Plc. (n = 330), and Eko Electricity Distribution Company (n= 250) electricity end-users in Lagos State. Bribery and Corruption (BC), Income Level (IL), Lack of Punishment of Earlier Offenders (LPEO), Running Micro-Business in Residential Apartments (RMBRA), Non Availability of Taskforce (NAT) to apprehend perpetrators, Frequency of Power Outages (FPO), Electricity Tariff (ELT) and Weak Enforcement of Anti-Electricity Theft laws (WEAET) were factors investigated as potential drivers of ET. Descriptive statistics were used to analyse prevalence and effects of ET, while Probit Regression estimation technique was used to identify its determinants among households at α0.05. The key drivers of ET were BC (β=0.063), IL (β= 0.060), LPEO (β=0.020), RMBRA (β=0.040), FPO (β=0.101), WEAET (β=0.104) and ELT (β=0.139). All the factors were positive and statistically significant. An important driver of ET, IL (β= 0.060), which was positive and statistically significant indicated that incidence of ET cuts across all income groups in Lagos State. The prevalence of electricity theft was (in two digits) 14.0% indicating excessive involvement of household electricity end-users in ET. The major effects of electricity theft included damage to electric power equipment (64.4%), difficulty in planning for service delivery (68.2%), increased expenses on self-power generation (51.6%), damage to household appliances (61.4%), epileptic electricity supply (72.4%), brown out (73.2%), poor revenue to the electricity distribution companies (82.0%) and further reduction in the quantity of electricity available for household use (72 .4%). The incidence of ET in Lagos State was widespread, cut across all income groups and had varied significant harmful effects on both the households’ electricity end-users and the electric power utilities. Strong determinants of Electricity Theft among households in Lagos State, Nigeria, were corruption, running micro business within residential apartments and weak enforcement of anti-electricity theft laws with severe consequences on the entire electric power value chain. Strengthening institutions for enforcement and application of anti-electricity theft laws is recommended to mitigate the problem. 1 results 1
- liberalisation policies 1 results 1
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