Property Rights Protection and Economic Growth in Nigeria: An Institution Economic Perspective

Abstract:

Objective- This study seeks to examine property rights protection in Nigeria and how it affects economic growth using an institution economic perspective. Approach- The variables of the study are real gross domestic product (RGDP), property rights (PR) protection and investment freedom (IF) of Nigeria within the scope of 1995 to 2021. Unit root test using both Philips Perron (PP) and Augmented Dickey Fuller (ADF), Johansen cointegration and post estimation tests were carried out. Results- Based on pre-estimation test results, the unrestricted vector autoregressive (UVAR) model was used. Estimation revealed that RGDP(-1) has a positive relationship with RGDP, both PR and IF have a negative relationship with RGDP. While RGDP(-1) is statistically significant, both PR and IF are not. Value Addition-The study blends the legal concept of property rights protection with economics, and recommends leveraging legal framework and technology to provide an online, easy, transparent and simplified process of registering and obtaining both tangible and intangible property ownership rights in Nigeria. It addressed the contemporary rights ownership tussle between farmers and herders in Nigeria. Again, several bottleneck factors both from states and local governments contributing to property rights usage obstruction and impediment to investment freedom were identified with viable solutions proffered.