Some Nigerian banks have found it worthwhile to extend their branch expansions to some offshore l... more Some Nigerian banks have found it worthwhile to extend their branch expansions to some offshore locations. However, this move also made the Central Bank of Nigeria to issue a circular in 2008 to all Banks to ensure the viability of the offshore branches while protecting the shareholders' funds and interests. The study employed ex post facto research design, descriptive and empirical analysis methods. Analyses were based on published data on relevant performance index of the banks and operating indices of their offshore branches. Three banks were selected for the study from the seven banks that operated offshore branches. Data were extracted from the annual reports for 2009-2012 period. Empirical analysis was anchored on regression model. Profit before tax was treated as the performance index and, thus, entered the model as the explained variable while operating income, deposits, loans and advances, other assets and profit before tax of the offshore branches entered as the explanatory variables. The intercept of the model and the coefficients of the operating indices were estimated via the Least Squares (LS) techniques. The results revealed that banks recorded varying values in offshore operating indicators. Ghana proved to be a more lucrative location for banking business. Operating incomes and deposits did not significantly affect the profit before tax of the banks as evidenced by the p-values of the t-statistic of their coefficients (p-value = 0.1309 > 0.05 and p-value = 0.3311 > 0.05) respectively, and that loans and advances exerted negative but insignificant effect as shown by the p-value of 0.8594 which was less that the relevant level of 0.05. The aggregate effect of the operating indices was found to be significant. The operating indicators exhibited high strength (99%) in explaining variations in performance of the parent banks as evidenced by the very high R-Squared 0.99. Consequently, the study concluded that offshore banking possesses great potentials to determine and explain banks' performance. Recommendations, amongst others, were that Nigerian Banks currently operating offshore branches should deepen their banking business for optimal performance. The Central Bank of Nigeria should enhance its supervisory capacity with additional monitoring strategies. Introduction Many financial and non-financial institutions are highly desirous on going offshore to create and establish their business activities and economic presence in overseas economies so as to attain greater economies of scale and scope. In fact, recent innovations in the global financial and non-financial system and landscape has continued to prompt several banks in the developing and the developed economies to go offshore for reasons of diversification, effective portfolio management, to gain more expertise and experience and technological development.
The study examines the role of credit risk management in value creation process among commercial ... more The study examines the role of credit risk management in value creation process among commercial banks in Nigeria. The study reviews the concepts, theories, legal acts and standards relating to the credit risk management and then develops a conceptual model with four antecedents to credit risk. The study analyzes the impact of these antecedents such as antecedents are loan and advance loss provision, total loan and advances, nonperforming loan and total asset on accounting Return on Equity (ROE) and Return on Asset (ROA). The panel data come from 10 commercial banks listed on Nigeria Stock Exchange (NSE) between 2006 and 2010. The results reveal that credit risk management has significant effect on financial performance of commercial banks and further recommend that maintaining minimum level of non-performing loans vis-à-vis provision for loans and advances will enhance financial performance through its positive effect on return on equity.
Nigerian companies adopted the code of best practice on corporate governance in 2003, through whi... more Nigerian companies adopted the code of best practice on corporate governance in 2003, through which private and public firms are mandated to operate accordingly. Many companies have complied while some have failed to so. This study examined corporate governance practices eight years after (2010), given the instability in the political and economic environment under which they operated. The study also examined the relationship between corporate governance practices and firms' financial performance in the selected manufacturing companies in Lagos State, Nigeria. The study employed a comparative analysis to gauge the changes to corporate governance practice between the years 2003 to 2010 by manufacturing companies. The companies were selected based on availability of data from the stock exchange in terms of activities of trading and existence of reports on corporate governance in the companies' annual reports. The study used both descriptive statistics and econometrics method of analysis, using E-views 7 statistical software. The Panel data of the ten companies for the 8 years was used, employing ordinary least square (OLS) method of analysis. Consequently, the results of the descriptive statistics show that majority of the companies implemented the code of conduct that emphasizes appropriate composition of the board of directors and forecast of operations. Further analysis shows that there was positive relationship between the return of equity and legal compliance, though the relationship is weak given the value of R as 0.197. Also, there were weak relationships between return on equity (ROE) and board compliance as R =-0.4430 and proactive indicators R as-0.2345. These imply that while the companies obey the regulations in term of board composition, legal compliance and production projections, which are the major concerns of this study. Meanwhile, some other variables impacted more on ROE.
This study examines the impact of managing credit risk and profitability of banks in Lagos state.... more This study examines the impact of managing credit risk and profitability of banks in Lagos state. It also focused on the need for prompt, effective and efficient service to numerous customers. The research hypothesis was tested and analyzed in relation to adequate credit risk management and its significant effect on banks' profitability. It was also the aim of this research to evaluate how effective it is for a bank to manage its credit risk effectively to enhance profitability. In the course of this work, data was gotten through administering structured questionnaires which were answered by respondents. Correlation coefficient was used to decide whether or not credit risk management has an impact on profitability. It was then revealed through the analysis of data from the questionnaire that credit risk management operations plays a significant role in the profitability and performance of banks in Lagos State. Therefore, management need to be cautious in setting up a credit policy that might not negatively affects profitability and also they need to know how credit policy affects the operation of their banks to ensure judicious utilization of deposits.
The paper was intended to find other reasons, based on investors' behavior that may impact on the... more The paper was intended to find other reasons, based on investors' behavior that may impact on the performance of the Nigerian stock market. The objectives were in threefold: to examine the extent of behavioral biases among stock market investors in Nigeria; to determine the level of returns in the period using the Nigerian Stock Exchange All share index; and to examine the effects of behavioral biases on stock market return in Nigeria. This study was motivated by the fundamental explanations given for the causes of the 2008 collapse of the Nigerian Stock Market. This paper adopted a primary data approach based on survey research design to investigate the effects of behavioral biases on stock market return in Nigeria. The paper also used secondary data from the Nigerian Stock Exchange and employed questionnaire as instrument and the technique of correlation with Pearson Product Moment Coefficient to analyze a survey of 110 randomly selected investors in Nigeria stock market. The study found strong evidence that behavioral biases existed but not very dominant in the Nigeria stock market because a weak negative relationship existed between behavioral biases and stock market returns in Nigeria. The paper concluded that being aware of behavioral biases in the Nigerian stock market was a crucial first step in ensuring that investment decisions were properly controlled to avoid any negative impacts on the individual investors and on the stock market; again, behavioral biases might be of relevant consideration in portfolio construction in order to moderate these biases.
Exchange rate reform (combined with trade policy reforms) under Nigeria's economic reform program... more Exchange rate reform (combined with trade policy reforms) under Nigeria's economic reform programme was anticipated to diversify the export base of the economy from oil to non-oil exports through competitiveness in the relative price of non-oil exports in addition to reducing imports, especially of consumer goods. This paper investigated the effect exchange rate regimes as had on non-oil export revenue. It specifically ascertained the effects of some macroeconomic variables (inflation, price index, gross domestic product (GDP), exchange rate and degree of openness) as had on non-oil export revenue in Nigeria as well as the performance of the non-oil export sector over the period 1986 to 2010.Using annual data from 1986 to 2010: The study employed a non-oil model proposed by Mehdi S.(2011), Augmented Dickey Fuller unit root test, Eagle-Granger approach to test co-integration in the long run, and error correction model to correct short run deviations. The study broke down data in three period's and discussed each periods result with the three periods combined and also compared these results with other similar works. The study discovered that exchange rate, degree of economic openness, GDP inflation rate and price index collectively accounts for 97.7 per cent variations in non-oil export variations. The study also discovered a one per cent increase in the naira exchange rate result to 0.4 per cent decrease in non-oil export revenue. It also discovered that GDP (2.34 per cent) accounts for the highest individual variations in non-oil export revenue. The study recommended an appropriate policy mix that encourages a conducive atmosphere for domestic and international production. Introduction One of the most dramatic events in Nigeria over the past two decades was the devaluation of the Nigerian naira with the adoption of a structural adjustment programme (SAP) in 1986 (Osuntogun; Edordu & Oramah 1993). A cardinal objective of the SAP was the restructuring of the production base of the economy with a positive bias for the production of non-oil exports. The foreign exchange reforms that facilitated a cumulative depreciation of the effective exchange rate were expected to increase the domestic prices of agricultural exports and therefore boost domestic production (Adubi & Okunmadewa, 1999). Significantly, this depreciation resulted in changes in the structure and volume of Nigeria's non-oil exports as empirically determined by many researchers (Oyejide, 1986; Ihimodu,
ABSTRACT The question of whether natural resource endowment in a country is necessary or sufficie... more ABSTRACT The question of whether natural resource endowment in a country is necessary or sufficient for economic growth has been an issue of debate since the contribution of Sach and warners (1995). Thus, this study examines the long-run impact of natural resource (oil) endowment on economic growth in Nigeria. The result indicates that the variables are inter-related, and that they have long-run relationship. We therefore proceed to estimate the long-run impact of oil resource endowment on economic growth using the fully modified ordinary least square (OLS), because the conventional OLS can yield results that are biased and inconsistent. The result showed that net oil export has a positive and significant impact on economic growth in Nigeria in the long-run. The implication of this is that even though it seems that a resource curse exists in Nigeria now, in the long-run, oil resource “curse” can be converted into resource “blessings”. However, when oil resource endowment is measured with oil export, it was observed that although the coefficient had positive relationship with economic growth, it was not statistically significant implying that there is neither a resource “curse” or “blessing” in Nigeria in the long-run. Overall, we conclude that that good governance is necessary to achieve economic growth in the long-run. KEYWORDS natural resources, economic growth, oil exporting countries.
ABSTRACT The use of Information Technology (IT) systems has changed the way banking operations ar... more ABSTRACT The use of Information Technology (IT) systems has changed the way banking operations are carried out all over the world, the volume and the speed of banking transaction has improved tremendously as a result of quantum growth in IT which has created business opportunities for the banks that have tapped into IT. This research aimed at finding out the extent to which Nigerian banks have implemented IT Systems and its effects on cost effectiveness, competitive advantage, service delivery and staff efficiency which were used as sub-dependent variables, individually and jointly. Questionnaire was used to elicit information for the research. The data gathered through the questionnaire was analyzed on Statistical Package for Social Sciences (SPSS) version 17. Linear Regression analysis was carried out to determine the effect of the independent variable on the dependent variables. The t, F and Durbin Watson statistic tests were also carried out to determine the individual significance, overall joint significance and goodness of fit of the model respectively. It was found from the research that IT adoption indeed has a positive significant effect on banks performance with a coefficient of 0.533, which simply means that 53.3% of the changes in performance are explained by IT use. The regression analysis of IT adoption of cost effectiveness, competitive advantage, service delivery and staff efficiency showed positive coefficients of 0.389, 0.397, 0.527 and 0.818 respectively. It was discovered during the course of the research that customers are either ignorant of IT services being offered by the banks or are too afraid to use them due to the associated risks. It was recommended that banks should create awareness of the availability of these services to their customers, mitigate risks of cyber frauds, increase their bandwidth to prevent network failures and that bank staff should engage in self development to be able to cope with ever changing technology. KEYWORDS Cost Effectiveness, Competitive Advantage, Service Delivery, Staff Efficiency.
It is incontestable that an efficient and effective microfinance system is essential for building... more It is incontestable that an efficient and effective microfinance system is essential for building a sustained economic growth. The success of these microfinance banks can only be achieved through the safety, soundness and stability of the banks coupled with the effective and efficient management of the sector.This paper examines the relationship and causality between microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria. Survey research design was adopted and data collected through financial statement of some selected microfinance bank operators within ogun state and the use of questionnaires to collect data from a sample of 20 entrepreneurs from each of the four zones in Ogun State which are Ijebu, Egba, Yewa and Remo zones. The impact of microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria was analyzed using the regression analysis method. The study revealed that there is no significant impact of microfinance bank operations on entrepreneurial development in Ogun State. It has been proved that the capitals of these banks are not adequate and there are high incidences of non-performing loans. The capital of these banks is low and because of this; some of these banks have actually gone down. If their capital are adequate and they are liquid to be able to meet obligations as at when due, then microfinance bank operations would enhance the future development of entrepreneurship assuming that the policy objectives are followed. It was also found out that there is no significant difference between entrepreneurs who use microfinance banks in terms of loan and advances and those who do not. This however was due to the fact that most of the entrepreneurs do not even have access to loans and advances in the microfinance banks.It was found out that majority of the entrepreneurs who are SME owners capitalized mostly on personal income and loans from family and friends and not from the microfinance bank institutions because they could not provide collateral assets requested for by these microfinance banks which negates what is in their policy and objectives.The study recommended that Government should find an avenue for creation of awareness on how entrepreneurs can benefit from loans and monitors the microfinance banks closely to ensure disbursement of loans and grants to entrepreneurs. Entrepreneurs should equally endeavor not to divert loans given to them by microfinance banks.
Abstract The paper reviewed the existing literature on financial management systems or practices ... more Abstract The paper reviewed the existing literature on financial management systems or practices that served as deterrent factors to sound financial performance in Nigerian Universities and beyond. The purpose was to determine the factors that negatively affect sound financial performance and to suggest possible solutions to address the problems. Several related papers depicting the influence of good financial management systems, financial practices such as budgeting, cost analysis, financial controls, and recruiting exercise on the financial performance of the universities were reviewed. Some of the problems discovered in the paper are the issue of perpetrating fraud activities and the issue of budgeting. The paper suggested setting up a policy to identify man-power need, recruitment of personnel based on merit and putting in place an efficient internal control system to detect and prevent the fraudulent acts. The recommendations also include the mandatory budget preparation and its thorough implementation. In conclusion, protecting the universities against financial misuse is one way to assure their sound financial performance. Key words: Financial control, Financial crisis, Financial performance, Forecasting
Following recent warnings by many organizations about impending food crisis in the world and the ... more Following recent warnings by many organizations about impending food crisis in the world and the challenges facing Nigeria in this regard, sequel to massive flooding of many of her farmlands in August 2012, this pilot study was undertaken to investigate the effects of buffer stock on food security. This derived from failure of most empirical studies on food security to address the physical aspect of the concept of 'accessibility' in food security preferring to investigate more on the economic aspect. A pilot survey of a garri processing centre within a village set – up in Oyo State was conducted on a balanced pair of thirty participants. Buffer stock levels were established for the participants using probability distribution obtained from past data on demand during lead time. Operations were observed for six market days (weeks) based on level of buffer stock kept and the number of markets traded. Data were analyzed using simple regression model while coefficient of correlation was obtained using Pearson Product Moment Correlation technique. The hypothesis was tested at 5% level of significance. It was found that participants who maintained buffer stock increased the number of markets in which they traded from one in the first week to four in the sixth week whereas the control group did not improve beyond one market. This implies that maintenance of buffer stock affects food security positively and could be used to sustain food security. Therefore, it was recommended that the use of buffer stock should be encouraged more in the distribution chain of food products in Nigeria for sustained food security.
Turkish Online Journal of Qualitative Inquiry, Sep 1, 2021
The ability of Nigerian Stock Exchange market in performing the role of price discovery for econo... more The ability of Nigerian Stock Exchange market in performing the role of price discovery for economic growth has not been very satisfactory owing to the problem of information asymmetry. This paper used panel regression model that incorporated stock market returns to examine the response of actual stock returns to market returns; and how abnormal and cumulative average returns were influenced by information asymmetry. The results showed significant positive response of actual stock return in the days before and after dividend announcement; but not significant, statistically on the day dividend announcement information arrived at the market. The average abnormal and cumulative returns provided empirical evidence, that investors leveraged on anticipated information contained in the dividend announcement in the of pricing shares on the Nigerian Stock Exchange (NSE). Therefore, the paper concluded that the Nigerian Stock Exchange market is not information efficient. Consequently, the paper emphasized the need for the NSE to strengthen collaborative efforts in conjunction with the Securities and Exchange Commission (SEC) as the mechanism to eliminate information asymmetry and, thus, checkmate abnormal returns to investors.
This study investigated loans default (problems loans) and returns on assets in Nigeria banks, em... more This study investigated loans default (problems loans) and returns on assets in Nigeria banks, employing the data of five banks for a period of five years (2010-2014), using the ordinary least squares (OLS) regression techniques to check the relationship between problem loans and returns on assets (ROA). The findings shows that a positive and significant relationship at 5% level of significance exist between problem loans and returns on assets, and a negative and significant relationship at 10% level of significance exists between loans and advances and returns on assets in Nigerian banks. A major suggestion is that banks in Nigeria should enhance their capacity in credit analysis and loan administration, while the regulatory authority should pay more attention to banksA¢â‚¬â„¢ compliance to relevant provisions of Bank and other Financial Institutions Act (1991) and prudential guidelines.Â
This study considered the influence of monetary policy on the financial performance of deposit mo... more This study considered the influence of monetary policy on the financial performance of deposit money banks in Nigeria. The study engaged the use of a time series data for 35 years, from the period 1984 to 2018; all deposit money banks as captured by the Central Bank of Nigeria Statistical Bulletin (2015) were considered. The effect of liquidity ratio, lending rate, loan to deposit ratio and cash reserve ratio were examined on the financial performance of deposit money banks measured by their net worth and total credits. The data was analyzed using descriptive and inferential statistics. Based on the result of stationarity test, the ordinary least square method and the Autoregressive Distributed Lag method were employed. A short run model of net worth and long run model for both the log of net worth and the log of total credits were estimated. The results revealed that the mean of net worth and total credits are 5455.27 and 79608.63 respectively. In the long run, monetary policy vari...
Following recent warnings by many organizations about impending food crisis in the world and the ... more Following recent warnings by many organizations about impending food crisis in the world and the challenges facing Nigeria in this regard, sequel to massive flooding of many of her farmlands in August 2012, this pilot study was undertaken to investigate the effects of buffer stock on food security. This derived from failure of most empirical studies on food security to address the physical aspect of the concept of 'accessibility' in food security preferring to investigate more on the economic aspect. A pilot survey of a garri processing centre within a village set – up in Oyo State was conducted on a balanced pair of thirty participants. Buffer stock levels were established for the participants using probability distribution obtained from past data on demand during lead time. Operations were observed for six market days (weeks) based on level of buffer stock kept and the number of markets traded. Data were analyzed using simple regression model while coefficient of correlati...
Exchange rate reform (combined with trade policy reforms) under Nigeria’s economic reform program... more Exchange rate reform (combined with trade policy reforms) under Nigeria’s economic reform programme was anticipated to diversify the export base of the economy from oil to non-oil exports through competitiveness in the relative price of non-oil exports in addition to reducing imports, especially of consumer goods. This paper investigated the effect exchange rate regimes as had on non-oil export revenue. It specifically ascertained the effects of some macroeconomic variables (inflation, price index, gross domestic product (GDP), exchange rate and degree of openness) as had on non-oil export revenue in Nigeria as well as the performance of the non-oil export sector over the period 1986 to 2010.Using annual data from 1986 to 2010: The study employed a non-oil model proposed by Mehdi S.(2011), Augmented Dickey Fuller unit root test, Eagle-Granger approach to test co-integration in the long run, and error correction model to correct short run deviations. The study broke down data in thre...
For effective and efficient utilization of resources and improved job performance, employees need... more For effective and efficient utilization of resources and improved job performance, employees need to be motivated. Purpose of this study was to investigate the place of motivation on employees’ performance in the Nigerian Banking Industry. The study was conducted in the area of Lagos Island, Nigeria and population consisted of 5 selected banks in that location. 80 questionnaires were distributed to the employees of selected banks, of which 67 were returned. The study used descriptive statistics such as mean and standard deviation to answer the first 2 research questions posed in the study. The Simple Linear Regression was used to test the effect between employee motivation and performance, which was research question three (3). Based on the finding, the study revealed that employees are “often” motivated with an average mean of 3.938 and an average standard deviation of 0.93383. Also, it was revealed that the status of performance of the firms involved is excellent with an average m...
Some Nigerian banks have found it worthwhile to extend their branch expansions to some offshore l... more Some Nigerian banks have found it worthwhile to extend their branch expansions to some offshore locations. However, this move also made the Central Bank of Nigeria to issue a circular in 2008 to all Banks to ensure the viability of the offshore branches while protecting the shareholders' funds and interests. The study employed ex post facto research design, descriptive and empirical analysis methods. Analyses were based on published data on relevant performance index of the banks and operating indices of their offshore branches. Three banks were selected for the study from the seven banks that operated offshore branches. Data were extracted from the annual reports for 2009-2012 period. Empirical analysis was anchored on regression model. Profit before tax was treated as the performance index and, thus, entered the model as the explained variable while operating income, deposits, loans and advances, other assets and profit before tax of the offshore branches entered as the explanatory variables. The intercept of the model and the coefficients of the operating indices were estimated via the Least Squares (LS) techniques. The results revealed that banks recorded varying values in offshore operating indicators. Ghana proved to be a more lucrative location for banking business. Operating incomes and deposits did not significantly affect the profit before tax of the banks as evidenced by the p-values of the t-statistic of their coefficients (p-value = 0.1309 > 0.05 and p-value = 0.3311 > 0.05) respectively, and that loans and advances exerted negative but insignificant effect as shown by the p-value of 0.8594 which was less that the relevant level of 0.05. The aggregate effect of the operating indices was found to be significant. The operating indicators exhibited high strength (99%) in explaining variations in performance of the parent banks as evidenced by the very high R-Squared 0.99. Consequently, the study concluded that offshore banking possesses great potentials to determine and explain banks' performance. Recommendations, amongst others, were that Nigerian Banks currently operating offshore branches should deepen their banking business for optimal performance. The Central Bank of Nigeria should enhance its supervisory capacity with additional monitoring strategies. Introduction Many financial and non-financial institutions are highly desirous on going offshore to create and establish their business activities and economic presence in overseas economies so as to attain greater economies of scale and scope. In fact, recent innovations in the global financial and non-financial system and landscape has continued to prompt several banks in the developing and the developed economies to go offshore for reasons of diversification, effective portfolio management, to gain more expertise and experience and technological development.
The study examines the role of credit risk management in value creation process among commercial ... more The study examines the role of credit risk management in value creation process among commercial banks in Nigeria. The study reviews the concepts, theories, legal acts and standards relating to the credit risk management and then develops a conceptual model with four antecedents to credit risk. The study analyzes the impact of these antecedents such as antecedents are loan and advance loss provision, total loan and advances, nonperforming loan and total asset on accounting Return on Equity (ROE) and Return on Asset (ROA). The panel data come from 10 commercial banks listed on Nigeria Stock Exchange (NSE) between 2006 and 2010. The results reveal that credit risk management has significant effect on financial performance of commercial banks and further recommend that maintaining minimum level of non-performing loans vis-à-vis provision for loans and advances will enhance financial performance through its positive effect on return on equity.
Nigerian companies adopted the code of best practice on corporate governance in 2003, through whi... more Nigerian companies adopted the code of best practice on corporate governance in 2003, through which private and public firms are mandated to operate accordingly. Many companies have complied while some have failed to so. This study examined corporate governance practices eight years after (2010), given the instability in the political and economic environment under which they operated. The study also examined the relationship between corporate governance practices and firms' financial performance in the selected manufacturing companies in Lagos State, Nigeria. The study employed a comparative analysis to gauge the changes to corporate governance practice between the years 2003 to 2010 by manufacturing companies. The companies were selected based on availability of data from the stock exchange in terms of activities of trading and existence of reports on corporate governance in the companies' annual reports. The study used both descriptive statistics and econometrics method of analysis, using E-views 7 statistical software. The Panel data of the ten companies for the 8 years was used, employing ordinary least square (OLS) method of analysis. Consequently, the results of the descriptive statistics show that majority of the companies implemented the code of conduct that emphasizes appropriate composition of the board of directors and forecast of operations. Further analysis shows that there was positive relationship between the return of equity and legal compliance, though the relationship is weak given the value of R as 0.197. Also, there were weak relationships between return on equity (ROE) and board compliance as R =-0.4430 and proactive indicators R as-0.2345. These imply that while the companies obey the regulations in term of board composition, legal compliance and production projections, which are the major concerns of this study. Meanwhile, some other variables impacted more on ROE.
This study examines the impact of managing credit risk and profitability of banks in Lagos state.... more This study examines the impact of managing credit risk and profitability of banks in Lagos state. It also focused on the need for prompt, effective and efficient service to numerous customers. The research hypothesis was tested and analyzed in relation to adequate credit risk management and its significant effect on banks' profitability. It was also the aim of this research to evaluate how effective it is for a bank to manage its credit risk effectively to enhance profitability. In the course of this work, data was gotten through administering structured questionnaires which were answered by respondents. Correlation coefficient was used to decide whether or not credit risk management has an impact on profitability. It was then revealed through the analysis of data from the questionnaire that credit risk management operations plays a significant role in the profitability and performance of banks in Lagos State. Therefore, management need to be cautious in setting up a credit policy that might not negatively affects profitability and also they need to know how credit policy affects the operation of their banks to ensure judicious utilization of deposits.
The paper was intended to find other reasons, based on investors' behavior that may impact on the... more The paper was intended to find other reasons, based on investors' behavior that may impact on the performance of the Nigerian stock market. The objectives were in threefold: to examine the extent of behavioral biases among stock market investors in Nigeria; to determine the level of returns in the period using the Nigerian Stock Exchange All share index; and to examine the effects of behavioral biases on stock market return in Nigeria. This study was motivated by the fundamental explanations given for the causes of the 2008 collapse of the Nigerian Stock Market. This paper adopted a primary data approach based on survey research design to investigate the effects of behavioral biases on stock market return in Nigeria. The paper also used secondary data from the Nigerian Stock Exchange and employed questionnaire as instrument and the technique of correlation with Pearson Product Moment Coefficient to analyze a survey of 110 randomly selected investors in Nigeria stock market. The study found strong evidence that behavioral biases existed but not very dominant in the Nigeria stock market because a weak negative relationship existed between behavioral biases and stock market returns in Nigeria. The paper concluded that being aware of behavioral biases in the Nigerian stock market was a crucial first step in ensuring that investment decisions were properly controlled to avoid any negative impacts on the individual investors and on the stock market; again, behavioral biases might be of relevant consideration in portfolio construction in order to moderate these biases.
Exchange rate reform (combined with trade policy reforms) under Nigeria's economic reform program... more Exchange rate reform (combined with trade policy reforms) under Nigeria's economic reform programme was anticipated to diversify the export base of the economy from oil to non-oil exports through competitiveness in the relative price of non-oil exports in addition to reducing imports, especially of consumer goods. This paper investigated the effect exchange rate regimes as had on non-oil export revenue. It specifically ascertained the effects of some macroeconomic variables (inflation, price index, gross domestic product (GDP), exchange rate and degree of openness) as had on non-oil export revenue in Nigeria as well as the performance of the non-oil export sector over the period 1986 to 2010.Using annual data from 1986 to 2010: The study employed a non-oil model proposed by Mehdi S.(2011), Augmented Dickey Fuller unit root test, Eagle-Granger approach to test co-integration in the long run, and error correction model to correct short run deviations. The study broke down data in three period's and discussed each periods result with the three periods combined and also compared these results with other similar works. The study discovered that exchange rate, degree of economic openness, GDP inflation rate and price index collectively accounts for 97.7 per cent variations in non-oil export variations. The study also discovered a one per cent increase in the naira exchange rate result to 0.4 per cent decrease in non-oil export revenue. It also discovered that GDP (2.34 per cent) accounts for the highest individual variations in non-oil export revenue. The study recommended an appropriate policy mix that encourages a conducive atmosphere for domestic and international production. Introduction One of the most dramatic events in Nigeria over the past two decades was the devaluation of the Nigerian naira with the adoption of a structural adjustment programme (SAP) in 1986 (Osuntogun; Edordu & Oramah 1993). A cardinal objective of the SAP was the restructuring of the production base of the economy with a positive bias for the production of non-oil exports. The foreign exchange reforms that facilitated a cumulative depreciation of the effective exchange rate were expected to increase the domestic prices of agricultural exports and therefore boost domestic production (Adubi & Okunmadewa, 1999). Significantly, this depreciation resulted in changes in the structure and volume of Nigeria's non-oil exports as empirically determined by many researchers (Oyejide, 1986; Ihimodu,
ABSTRACT The question of whether natural resource endowment in a country is necessary or sufficie... more ABSTRACT The question of whether natural resource endowment in a country is necessary or sufficient for economic growth has been an issue of debate since the contribution of Sach and warners (1995). Thus, this study examines the long-run impact of natural resource (oil) endowment on economic growth in Nigeria. The result indicates that the variables are inter-related, and that they have long-run relationship. We therefore proceed to estimate the long-run impact of oil resource endowment on economic growth using the fully modified ordinary least square (OLS), because the conventional OLS can yield results that are biased and inconsistent. The result showed that net oil export has a positive and significant impact on economic growth in Nigeria in the long-run. The implication of this is that even though it seems that a resource curse exists in Nigeria now, in the long-run, oil resource “curse” can be converted into resource “blessings”. However, when oil resource endowment is measured with oil export, it was observed that although the coefficient had positive relationship with economic growth, it was not statistically significant implying that there is neither a resource “curse” or “blessing” in Nigeria in the long-run. Overall, we conclude that that good governance is necessary to achieve economic growth in the long-run. KEYWORDS natural resources, economic growth, oil exporting countries.
ABSTRACT The use of Information Technology (IT) systems has changed the way banking operations ar... more ABSTRACT The use of Information Technology (IT) systems has changed the way banking operations are carried out all over the world, the volume and the speed of banking transaction has improved tremendously as a result of quantum growth in IT which has created business opportunities for the banks that have tapped into IT. This research aimed at finding out the extent to which Nigerian banks have implemented IT Systems and its effects on cost effectiveness, competitive advantage, service delivery and staff efficiency which were used as sub-dependent variables, individually and jointly. Questionnaire was used to elicit information for the research. The data gathered through the questionnaire was analyzed on Statistical Package for Social Sciences (SPSS) version 17. Linear Regression analysis was carried out to determine the effect of the independent variable on the dependent variables. The t, F and Durbin Watson statistic tests were also carried out to determine the individual significance, overall joint significance and goodness of fit of the model respectively. It was found from the research that IT adoption indeed has a positive significant effect on banks performance with a coefficient of 0.533, which simply means that 53.3% of the changes in performance are explained by IT use. The regression analysis of IT adoption of cost effectiveness, competitive advantage, service delivery and staff efficiency showed positive coefficients of 0.389, 0.397, 0.527 and 0.818 respectively. It was discovered during the course of the research that customers are either ignorant of IT services being offered by the banks or are too afraid to use them due to the associated risks. It was recommended that banks should create awareness of the availability of these services to their customers, mitigate risks of cyber frauds, increase their bandwidth to prevent network failures and that bank staff should engage in self development to be able to cope with ever changing technology. KEYWORDS Cost Effectiveness, Competitive Advantage, Service Delivery, Staff Efficiency.
It is incontestable that an efficient and effective microfinance system is essential for building... more It is incontestable that an efficient and effective microfinance system is essential for building a sustained economic growth. The success of these microfinance banks can only be achieved through the safety, soundness and stability of the banks coupled with the effective and efficient management of the sector.This paper examines the relationship and causality between microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria. Survey research design was adopted and data collected through financial statement of some selected microfinance bank operators within ogun state and the use of questionnaires to collect data from a sample of 20 entrepreneurs from each of the four zones in Ogun State which are Ijebu, Egba, Yewa and Remo zones. The impact of microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria was analyzed using the regression analysis method. The study revealed that there is no significant impact of microfinance bank operations on entrepreneurial development in Ogun State. It has been proved that the capitals of these banks are not adequate and there are high incidences of non-performing loans. The capital of these banks is low and because of this; some of these banks have actually gone down. If their capital are adequate and they are liquid to be able to meet obligations as at when due, then microfinance bank operations would enhance the future development of entrepreneurship assuming that the policy objectives are followed. It was also found out that there is no significant difference between entrepreneurs who use microfinance banks in terms of loan and advances and those who do not. This however was due to the fact that most of the entrepreneurs do not even have access to loans and advances in the microfinance banks.It was found out that majority of the entrepreneurs who are SME owners capitalized mostly on personal income and loans from family and friends and not from the microfinance bank institutions because they could not provide collateral assets requested for by these microfinance banks which negates what is in their policy and objectives.The study recommended that Government should find an avenue for creation of awareness on how entrepreneurs can benefit from loans and monitors the microfinance banks closely to ensure disbursement of loans and grants to entrepreneurs. Entrepreneurs should equally endeavor not to divert loans given to them by microfinance banks.
Abstract The paper reviewed the existing literature on financial management systems or practices ... more Abstract The paper reviewed the existing literature on financial management systems or practices that served as deterrent factors to sound financial performance in Nigerian Universities and beyond. The purpose was to determine the factors that negatively affect sound financial performance and to suggest possible solutions to address the problems. Several related papers depicting the influence of good financial management systems, financial practices such as budgeting, cost analysis, financial controls, and recruiting exercise on the financial performance of the universities were reviewed. Some of the problems discovered in the paper are the issue of perpetrating fraud activities and the issue of budgeting. The paper suggested setting up a policy to identify man-power need, recruitment of personnel based on merit and putting in place an efficient internal control system to detect and prevent the fraudulent acts. The recommendations also include the mandatory budget preparation and its thorough implementation. In conclusion, protecting the universities against financial misuse is one way to assure their sound financial performance. Key words: Financial control, Financial crisis, Financial performance, Forecasting
Following recent warnings by many organizations about impending food crisis in the world and the ... more Following recent warnings by many organizations about impending food crisis in the world and the challenges facing Nigeria in this regard, sequel to massive flooding of many of her farmlands in August 2012, this pilot study was undertaken to investigate the effects of buffer stock on food security. This derived from failure of most empirical studies on food security to address the physical aspect of the concept of 'accessibility' in food security preferring to investigate more on the economic aspect. A pilot survey of a garri processing centre within a village set – up in Oyo State was conducted on a balanced pair of thirty participants. Buffer stock levels were established for the participants using probability distribution obtained from past data on demand during lead time. Operations were observed for six market days (weeks) based on level of buffer stock kept and the number of markets traded. Data were analyzed using simple regression model while coefficient of correlation was obtained using Pearson Product Moment Correlation technique. The hypothesis was tested at 5% level of significance. It was found that participants who maintained buffer stock increased the number of markets in which they traded from one in the first week to four in the sixth week whereas the control group did not improve beyond one market. This implies that maintenance of buffer stock affects food security positively and could be used to sustain food security. Therefore, it was recommended that the use of buffer stock should be encouraged more in the distribution chain of food products in Nigeria for sustained food security.
Turkish Online Journal of Qualitative Inquiry, Sep 1, 2021
The ability of Nigerian Stock Exchange market in performing the role of price discovery for econo... more The ability of Nigerian Stock Exchange market in performing the role of price discovery for economic growth has not been very satisfactory owing to the problem of information asymmetry. This paper used panel regression model that incorporated stock market returns to examine the response of actual stock returns to market returns; and how abnormal and cumulative average returns were influenced by information asymmetry. The results showed significant positive response of actual stock return in the days before and after dividend announcement; but not significant, statistically on the day dividend announcement information arrived at the market. The average abnormal and cumulative returns provided empirical evidence, that investors leveraged on anticipated information contained in the dividend announcement in the of pricing shares on the Nigerian Stock Exchange (NSE). Therefore, the paper concluded that the Nigerian Stock Exchange market is not information efficient. Consequently, the paper emphasized the need for the NSE to strengthen collaborative efforts in conjunction with the Securities and Exchange Commission (SEC) as the mechanism to eliminate information asymmetry and, thus, checkmate abnormal returns to investors.
This study investigated loans default (problems loans) and returns on assets in Nigeria banks, em... more This study investigated loans default (problems loans) and returns on assets in Nigeria banks, employing the data of five banks for a period of five years (2010-2014), using the ordinary least squares (OLS) regression techniques to check the relationship between problem loans and returns on assets (ROA). The findings shows that a positive and significant relationship at 5% level of significance exist between problem loans and returns on assets, and a negative and significant relationship at 10% level of significance exists between loans and advances and returns on assets in Nigerian banks. A major suggestion is that banks in Nigeria should enhance their capacity in credit analysis and loan administration, while the regulatory authority should pay more attention to banksA¢â‚¬â„¢ compliance to relevant provisions of Bank and other Financial Institutions Act (1991) and prudential guidelines.Â
This study considered the influence of monetary policy on the financial performance of deposit mo... more This study considered the influence of monetary policy on the financial performance of deposit money banks in Nigeria. The study engaged the use of a time series data for 35 years, from the period 1984 to 2018; all deposit money banks as captured by the Central Bank of Nigeria Statistical Bulletin (2015) were considered. The effect of liquidity ratio, lending rate, loan to deposit ratio and cash reserve ratio were examined on the financial performance of deposit money banks measured by their net worth and total credits. The data was analyzed using descriptive and inferential statistics. Based on the result of stationarity test, the ordinary least square method and the Autoregressive Distributed Lag method were employed. A short run model of net worth and long run model for both the log of net worth and the log of total credits were estimated. The results revealed that the mean of net worth and total credits are 5455.27 and 79608.63 respectively. In the long run, monetary policy vari...
Following recent warnings by many organizations about impending food crisis in the world and the ... more Following recent warnings by many organizations about impending food crisis in the world and the challenges facing Nigeria in this regard, sequel to massive flooding of many of her farmlands in August 2012, this pilot study was undertaken to investigate the effects of buffer stock on food security. This derived from failure of most empirical studies on food security to address the physical aspect of the concept of 'accessibility' in food security preferring to investigate more on the economic aspect. A pilot survey of a garri processing centre within a village set – up in Oyo State was conducted on a balanced pair of thirty participants. Buffer stock levels were established for the participants using probability distribution obtained from past data on demand during lead time. Operations were observed for six market days (weeks) based on level of buffer stock kept and the number of markets traded. Data were analyzed using simple regression model while coefficient of correlati...
Exchange rate reform (combined with trade policy reforms) under Nigeria’s economic reform program... more Exchange rate reform (combined with trade policy reforms) under Nigeria’s economic reform programme was anticipated to diversify the export base of the economy from oil to non-oil exports through competitiveness in the relative price of non-oil exports in addition to reducing imports, especially of consumer goods. This paper investigated the effect exchange rate regimes as had on non-oil export revenue. It specifically ascertained the effects of some macroeconomic variables (inflation, price index, gross domestic product (GDP), exchange rate and degree of openness) as had on non-oil export revenue in Nigeria as well as the performance of the non-oil export sector over the period 1986 to 2010.Using annual data from 1986 to 2010: The study employed a non-oil model proposed by Mehdi S.(2011), Augmented Dickey Fuller unit root test, Eagle-Granger approach to test co-integration in the long run, and error correction model to correct short run deviations. The study broke down data in thre...
For effective and efficient utilization of resources and improved job performance, employees need... more For effective and efficient utilization of resources and improved job performance, employees need to be motivated. Purpose of this study was to investigate the place of motivation on employees’ performance in the Nigerian Banking Industry. The study was conducted in the area of Lagos Island, Nigeria and population consisted of 5 selected banks in that location. 80 questionnaires were distributed to the employees of selected banks, of which 67 were returned. The study used descriptive statistics such as mean and standard deviation to answer the first 2 research questions posed in the study. The Simple Linear Regression was used to test the effect between employee motivation and performance, which was research question three (3). Based on the finding, the study revealed that employees are “often” motivated with an average mean of 3.938 and an average standard deviation of 0.93383. Also, it was revealed that the status of performance of the firms involved is excellent with an average m...
It is incontestable that an efficient and effective microfinance system is essential for building... more It is incontestable that an efficient and effective microfinance system is essential for building a sustained economic growth. The success of these microfinance banks can only be achieved through the safety, soundness and stability of the banks coupled with the effective and efficient management of the sector.This paper examines the relationship and causality between microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria. Survey research design was adopted and data collected through financial statement of some selected microfinance bank operators within ogun state and the use of questionnaires to collect data from a sample of 20 entrepreneurs from each of the four zones in Ogun State which are Ijebu, Egba, Yewa and Remo zones. The impact of microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria was analyzed using the regression analysis method. The study revealed that there is no significant impact of microfinance bank oper...
This article examines the economic integration caused by globalization and effect of capital mark... more This article examines the economic integration caused by globalization and effect of capital market in Nigeria context. It establishes the type of relationship and level of significance of globalization and capital market on the economic development. Globalization concept is framed as import plus export divided by growth ratio. The capital market was determined in terms of proxy (by GDP) by price index. The growth ratio assessed the level of development using econometric model. The results suggest that sound economic reform and financial policies are necessary to achieve sustainable development in Nigeria. However, there is need to increase exports, reduce imports and control exchange rate for Nigeria to achieve sustainable economic development.
Olanrewaju Adewole Adediran, Kolawole Samuel Adeyemo, Samson Alalade examine the economic integra... more Olanrewaju Adewole Adediran, Kolawole Samuel Adeyemo, Samson Alalade examine the economic integration caused by globalization and effect of the capital market in Nigeria context. It establishes the type of relationship and level of significance of globalization and capital market on the economic development. Globalization concept is framed as import plus export divided by growth ratio. The capital market was determined in terms of proxy (by GDP) by the price index. The growth ratio assessed the level of development using econometric model. The results suggest that sound economic reform and financial policies are necessary to achieve sustainable development in Nigeria. However, there is need to increase exports, reduce imports and control exchange rate for Nigeria to achieve sustainable economic development. Journal of Governance and Regulation / Volume 4, Issue 1, 2015
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KEYWORDS natural resources, economic growth, oil exporting countries.
KEYWORDS Cost Effectiveness, Competitive Advantage, Service Delivery, Staff Efficiency.
KEYWORDS natural resources, economic growth, oil exporting countries.
KEYWORDS Cost Effectiveness, Competitive Advantage, Service Delivery, Staff Efficiency.