Econometrics Analysis Of Gross National Income On Consumption Expenditure Of Federal Republic Of Nigeria

1.0 Econometric is a policy measures adopted in controlling inflation, employment and increasing the national output which can be meaning if we tend our appeals to empirical investigation.

This research work employs the method of econometrics to evaluate the national output of the federal republic of Nigeria.

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.

1.1 HISTORICAL 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 statistics.

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. 

1.2 significance 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.

1.3 aims 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 consumption expenditure.