International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Environmental Factors and Business Operations in Nigeria
UDU, Ama Aka

The paper sets out to establish the nexus between business operations (BO) and the economic environment in Nigeria from 1981 – 2013. Extant literature relating to inflation rate, interest rate, Unemployment rate, exchange rate as the independent variables and business operations as the dependent variable were reviewed. The ordinary least square method of analysis as well as appropriate statistical and econometrics tests of significance were used to analyse the longitudinal data 1981-2013 collected from the Central Bank of Nigeria ( CBN) statistical bulletin2013 and world bank database. The results show that one percent rise in inflation rate reduces the output of BO by NGN0.000463bn or NGN463,000,but as interest rates increase, the contribution of BO to the overall output of goods and services improves and so does unemployment rate. The implication is that the economy grows at a declining rate and does not encourage middle economic status. It is necessary, therefore, that the government should have a rethink on its tacit financial support to business organizations if the current trend of uncompetitive economic environment must be reversed.

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