| 1 |
Author(s):
Epor Okaja Simon, Steve Ibenta, Henry Yua, Nwakoby Clement.
Page No : 1-21
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Domestic and Foreign Debt Dynamics and Nonlinear Effects on Private Investments in Nigeria: Evidence with Asymmetric ARDL and Causality
Abstract
The ultimate goal of the study was to determine the asymmetric and dynamic effects of public debt on private investment in Nigeria from 1990 to 2019. Because of the nature of data stationarity, the study then adopted the Nonlinear Autoregressive Distributed Lag (NARDL) modelling technique, which can produce both long-run and short-run parameter estimates of negative and positive decomposed values of domestic and foreign investment. The study used the Augmented Dickey-Fuller (ADF) test to ascertain the true order of integration for the study variables. The findings for the NARDL model showed a stable long-run cointegration among private investment, domestic debt, foreign debt, economic growth, inflation and real exchange rate for the study period. The results show an asymmetric relationship between domestic and foreign debts and private investments in the long run. The estimated results further show that private investment is a significant positive function of positive and negative changes in foreign debt, and a significant negative function of positive and negative changes in domestic debt in the long run, while there were significant instant positive s on impacts on domestic and foreign debt shocks in the short-run.
| 2 |
Author(s):
Yasin Abubakar (Ph.D), Umar Aminu Yandaki.
Page No : 22-32
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The 2022 Naira Redesign Programme in Nigeria: Implications on the Local Economy and Financial History
Abstract
To many Nigerians, the 2022 Currency Redesign Programme of the Central Bank of Nigeria (CBN) came through as disruptive and unnecessary. This is more so because the programme attempted to force Nigeria’s jump into a cashless economy, creating an artificial cash crunch, unprecedented in the country’s history. This paper offers an analysis of the nature of the 2022 currency redesign programme. It demonstrates the historical transformation of modern currency in Nigeria since the country’s independence in the year 1960, arguing that the 2022 Naira redesign is not unnecessary and also not as revolutionary as many Nigerians understood it to be. The paper, nonetheless, analyzes how the programme, which was meant to ensure effective currency management, paradoxically became devastating to the local economy within a very short time span. The paper is based on primary and secondary sources of historical data.
| 3 |
Author(s):
Nkechi C. Ojiagu, David Sunday Olajide.
Page No : 33-43
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Influence of Credit Administration on Financial Control Among Co-Operative Thrift and Credit Societies in Ekiti State, Nigeria
Abstract
This study investigated the influence of credit administration on financial control among Cooperative Thrift and Credit Society (CTCS) in Ekiti State, Nigeria. Specifically, the objectives are; to determine the extent to which creditworthiness influence the allocation of credit from cooperative thrift and credit societies in Ekiti State and to explore the extent to which credit selection risk influence usage of credit from cooperative thrift and credit societies in Ekiti State. Data used for the study were obtained using a structured questionnaire administered to 383 respondents who were members of the cooperative thrift and credit society in Ekiti north senatorial district, Ekiti State. A stratified sampling technique was employed in selecting the participating members from each of the local governments and data was analysed. Primary and Secondary data are used. To achieve the stated objectives, t-test and linear regression analyses were adopted to measure the effect of the variations of the independent variable (creditworthiness and credit selection) on the dependent variable (financial control of credit thrift cooperative society). Findings reveal that the t-calculated value of 2.3345 and the p-value of 0.020 implies that creditworthiness has a significant effect on the allocation of credit among Cooperative Thrift and Credit Societies in Ekiti, also with a t-value of 4.0469 and an associated p-value of 0.000. There is a significant influence of credit selection on the usage of funds from CTCS in Ekiti State. Thus, the study concluded that credit administration has a significant effect on financial control among Cooperative Thrift and Credit Society in Ekiti State, Nigeria. It is recommended that CTCS need to disburse credit or loans to members based on their needs and usage of the funds, especially for viable and worthwhile projects.
| 4 |
Author(s):
Kingsley Sweetwilliams, Lucky Onmonya, Kolawole Ebire.
Page No : 44-54
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Corporate Tax and Financial Performance: Evidence from Listed Consumer Goods Firms in Nigeria
Abstract
The study examined the effect of corporate tax on the financial performance of Nigerian listed consumer goods companies from 2011 to 2021. A sample of sixteen (16) consumer goods firms was used for the study. Secondary data source was generated from the annual reports of the selected firms. The random effect panel regression results revealed that company income tax negatively affects financial performance. The study also revealed that education tax has a significant positive effect on financial performance. While Value Added Tax (VAT) has a significant negative effect on financial performance. In conclusion, corporate tax has a statistically significant effect on the financial performance of consumer goods firms in Nigeria. Based on these findings, the study recommends that to leave enough net income in the hands of the listed consumer goods companies, the federal government should offer more tax exemptions that will lower company income tax payments.
| 5 |
Author(s):
Dr. Marshal Iwedi, Dr. Mark Bekweri Edeh, Dr. Anderson Emmanuel Oriakpono.
Page No : 55-70
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Capital Regulatory Policy and Non Performing Loans of Commercial Banks in Nigeria
Abstract
An efficient and sound financial system is crucial to enhancing sustainable economic growth in any country, as it provides a balance between those who have funds to invest and those in need of these funds. The creation of credit is a source of revenue for banks just as it makes up the majority of bank’s assets. This is however a very risky outcome, as there is the risk of insolvency if less return is earned from its credit portfolio. The interest gotten from risk assets contributes significantly to interest income of banks, and about 85% of banks total income, thus exposing banking business to credit risk. When banks are exposed to high credit risk, it could lead to loans becoming non-performing and putting banks at high risk. Thus, regulatory policies are established to enable banks and other financial institutions have enough protection when carrying out their functions. In lieu of these, this study is carried out to examine the effect of capital regulatory policies on non-performing loans of commercial banks in Nigeria. Data on a sample of 15 commercial banks quoted on the Nigerian Exchange Group as at 31st December 2021 were analyzed using the panel regression models. The results showed a positive and significant effect between capital regulatory policies and non-performing loans of commercial banks. The study also showed that banks in Nigeria were able to survive high rate of non-performing loans because they were able to take the policies set out by the regulatory bodies into consideration. Based on the findings, the study advised the need for commercial banks to strictly adhere to the capital regulatory policies of government to be able to operate efficiently and effectively in a harsh economy like Nigeria.
| 6 |
Author(s):
Zira Sharon Dia, Adejumo Oluwasegun Agbailu.
Page No : 71-91
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The Regime Examination of Nigeria Exchange Rate Volatility: Evidence from Markov Regime Switching Autoregressive Approach
Abstract
Inarguably, the escalation in dollar rates and the price instability in the Nigerian economy underwent significant structural and institutional changes. In assessing the importance of understanding exchange rates, it becomes imperative to build reliable models for predicting the volatility of exchange rates of home currency. Hence, this study aims to model the Nigerian exchange rate volatility using the Markov regime-switching model. The study analyses the Nigerian exchange rate returns in two and three distinct regimes by employing the Markov regime-switching autoregressive (MS-AR) model with data from 2nd January 2018 to 7th September 2020. Four MS-AR candidate models were estimated for the exchange rate series. Based on the least AIC value, MS(3)-AR(2) was returned as the most parsimonious model among the four candidate models. The MS(3)-AR(2) analysis established a high probability that the returns system remains in the liquidation and awareness states. It implied that only unconventional or severe events could switch the series from regime 2 (liquidation phase) and regime 3 (awareness). While there is a low probability that the system will stay in an imbalanced regime implies high switching of regime 1. Furthermore, an average duration period of 2 days, six days and five days were estimated for the imbalance, liquidation and awareness regimes, respectively. Thus, the findings, i.e. imbalance and liquidation regimes’ identification and their average durations, show that the Naira in the foreign exchange market is not favourable for investors to trade. The study recommends that the Nigerian government should direct more efforts towards improving the performance of the Naira in the foreign exchange market to make the market more favourable for investors. Specifically, the CBN should develop new strategies towards tackling the behaviour of the Nigerian exchange rate when in a liquidation state.
| 7 |
Author(s):
Okechukwu Theresa Ijeoma (Rev. Sr), Ugwu James Ike (Ph.D, CNA).
Page No : 92-111
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Effect of Corporate Sustainability on Firms’ Performance in Nigeria (2011 – 2020)
Abstract
This study examined the effect of corporate sustainability on firms’ performance in Nigeria covering the period ten years ranging from 2011 to 2020. It was necessitated by the cost implication of Corporate Sustainability on Firms’ performance in Nigeria. Specifically, the objectives of the study are to examine the effect of economic, environmental and social sustainability on the profit for the year of the selected firms in Nigeria. This study adopts ex-post facto research design as the researcher made use of past data in the form of secondary data to investigate the effect of corporate sustainability on performance of firms. Four (4) major high sustainability firms were purposively selected based on the complete availability of data for the period under review and their greatest effect on environment in Nigeria namely; Julius Berger Nigeria Plc., Conoil Plc., Nigeria Breweries Plc. and Dangote Cement Plc. The study used secondary data extracted from the annual reports of the selected firms. Panel data regression method was used to estimate the parameters of the model. The major findings of the study were that economic, environmental and social sustainability have probability values of 0.184406, -0.124495 and 0.064896 respectively which implies that they have non significant impact on profit for the year of selected firms in Nigeria. It is therefore the recommendation of this study that firms should be intentional and strategic in incorporating sustainability measures in their business activities.
| 8 |
Author(s):
Glory Sunday Etim, William Smart Inyang, Edim Eka James, Geraldine Banku Mbu-Ogar.
Page No : 112-125
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Marketing Information System (MKIS) and Optimization of Banking Service Delivery
Abstract
This study examined marketing information system and optimization of banking service delivery. It sought to assess the influence of internal records, marketing intelligence and marketing research on banking service delivery. The study adopted cross-sectional survey research design. The sampling technique used was total population sampling which enabled the collection of primary data from 282 marketing and managerial personnel of commercial banks through an adapted structured questionnaire. Instrument validity was confirmed through content validity while Cronbach’s alpha reliability method was used for reliability testing. Multiple linear regression was adopted to test the hypotheses developed for the study. Consequently, the findings revealed that internal records, marketing intelligence and marketing research had significant positive influences on banking service delivery, with varying magnitudes of influence. Hence, the study concluded that marketing information system has a significant positive influence on the optimization of banking service delivery. Therefore, the study presented practical implications for the banking industry and research suggestions for future researchers.
| 9 |
Author(s):
Kingsley Nze Ashibogwu (Ph.D).
Page No : 126-136
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Internal Audit Function and Financial Statement of Insurance Companies in Nigeria
Abstract
The survival of any firm is predicated on the efficient functioning of the internal audit constituted by management for safeguarding of the company’s assets. It has been argued that several instances of doctored financial statements of quoted firms in Nigeria abound leading to scandals with dire consequences on investors’ confidence. The study examines the relationship existing between internal audit function and the financial performance of insurance companies in Nigeria. The study made a return on assets as a function of audit committee size, audit committee independence, audit committee financial expertise and firm size. The data culled from the financial statements of selected firms, National Insurance Commission Facts Books and the Nigerian Stock Exchange covers the period 2011-2020. Multiple regression techniques were used to explore the contemporaneous dynamics. The study finds evidence of a significant positive impact of audit committee size, audit committee independence and audit committee financial expertise on financial performance, contrary to the significant negative impact of firm size. Therefore, the paper recommended that the various elements of audit committee characteristics, which include audit committee size, independence, and financial expertise, should be strengthened to enhance financial performance in the insurance sector.
