Is There Prospect for Second Demographic Dividend in Nigeria?

Abstract

This study assessed the prospect for second demographic dividend in Nigeria using time series secondary data spanning the period between 1970 and 2015. Employing Autoregressive Distributed Lag Model (ARDL) and TYDL Approach to Granger causality tests, the paper found the existence of cointegration among the variables. Furthermore, the results obtained revealed the existence of causality running from economic support ratio to household savings. Equally, the results found showed the existence of causality running from household savings to private investment. However, the null hypothesis that private investment does not granger cause economic growth is accepted. These results, thus, implied that although second dividend is under way in Nigeria but the dividend is not an automatic phenomenon. An optimal utilization of the dividend requires an integrated policy framework, appropriate policies, job creation and sustenance of the war on corruption.

Keywords: Demographic Transition; Demographic Dividend; Economic Growth.