Abstract for Abujabafjournal

Abuja Baf research releases abstract for comment as follows

 

 

ECONOMETRIC APPLICATION OF AN EARLY WARNING MODEL ON BANK SUPERVISION IN NIGERIA.

 

 

Magaji S. PhD

Department of Economics, Faculty of Social Sciences

University of Abuja

P.M.B 117, Abuja, Nigeria. e-mail:drs.magaji@yahoo.com

Abdulkarim Muhammad

Department of Statistics, Faculty of Science

University of Abuja

P.M.B 117, Abuja, Nigeria.

Abstract

A combination of factor analytical framework, multiple discriminant analysis and logit model were used in this work which aimed at providing an Early warning model to assist Bank regulatory and supervisoy authorities in Nigeria.  This is with a view to reduce the risk and cost of bank failures in Nigeria.  The proposed early warning  model is not designed to be a replacement of the existing bank examination practices and personnel.  It also not intends to be a substitute for the human skills and judgement in dealing with  problems of bank supervision.  The realistic but limited objective of our model is to act as an aid in scheduling bank examination by the supervisory and regulatory authorities so that potential insolvent (problem) banks would be examined more frequently and more intensely than solvent (non-problem) banks.

DYSFUNCTIONAL STATE OF COMMERCIAL BANKS IN NIGERIA:  THE OLLUSION OF CORE BALUES

 

 

Otse A. Egwurube, B. Sc, M. Sc, CAN, ACM

Office of the Bursar, University of Abuja,

P.M.B 117, Abuja, Nigeria.

otseamos@yahoo.com

+2348052313476

Abstract

The commercial banks are unique financial institution in Nigeria given their strategic importance and state functions.  It is one institution that plays a major role in financing the nation’s economic activity particularly in the are of money creation and implementing monetary policies.  The increase level of interface between the commercial banks and the government has place even greater premiun on its usefulness to the economy.  The commercial banks are agants of development in any nation as their activities and product increases the value chain by its banks to be focused, having in mind national objectives and committed to it core values.  The paper assesses the evolving role of the commercial banks in Nigeria during the last two decade using available data to ascertain the state of their health as it relates to their functions and core values.  A simple tabular presentation and rational analysis of available data shows that the commercial banks have not significantly played the required of the regulatory authority to refocus the banking industry in Nigeria to ensure meaningful economic growth.

HISTORAICAL OVERVIEW OF THE INFLUENCE OF MICRO

CREDIT ON ENTERPRENAURSHIP DEVELOPEMNT AND

POVERTY ERADICATION

 

 

MAGAJI S. (Ph.D)

Department Ofeconomics

Univeresity of Abuja,

Awwal A. Muhammad

Department of History

University of Abuja

Yusuf Umar Dantama. (Ph.D)

Usmandanfodio University

Sokoto.

 

 

 

Abstract

This paper is a historical overview on the influence of micro credit on entrepreneurship development and poverty eradication. The paper is a direct attack on the notion that an investor cannot survive without capital. A review is made on how poor investors either mobilized credit from within themselves or get assistance from government or other interested institutions to set up business. The regions of the view include Asian countries, Latin America and Africa. It has been found that micro credits is  good entrepreneurship drive and can empower the borrowers especially through asset accumulation and gaining entrepreneurship skill. However, in the Nigerian context it has been suggested by the paper that the macro credit needs to be supplemented with entrepreneurship training by the lending agencies.

THE IMPACT OF GLOBAL ECONOMIC MELTDOUN ON                    CORPORATE INVESTMENT IN NIGERIA

Abdullahi Bashir M.

Department of Banking and Faineance,

University of Abuja, P. M. B. 117,

Abuja, F.C.T., Nigeria

Bash7th@yahoo.com

08065727548

Onuh Okpe Emanuel

Department of Accounting,

University of Abuja, P.M.B 117,

Abuja, F.C.T., Nigeria

Blueoreon@yahoo.com

08059129505

Abstract

The Global Economic Meltdown (GEM) that started in the USA has become a global economic crisis pervading the entire world. The aim of this study is to examine the impact of the GEM on corporate investment in Nigeria. To be able to do this, the descriptive statistical approach was used to provide explanation to achieve the objective. Data on the Nigerian capital market were extensively used with other information from secondary sources. It was discovered that the GEM has negative impact on corporate investment in Nigeria. This forms the basis for its import in corporate investment in the country. It was therefore recommended that government should, among other things, diversify the country’s mono-economy and improve infrastructure to cushion the effects of the GEM on corporate investment, now and in the future.

THE IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN NIGERIA.

 

 

Abubakar Sadiq Saleh                            

    Department of Banking and Finance,

 University of Abuja

      abubakar008@yahoo.co.uk

Kaka Abdullahi(Mrs)

                                        Department of Accounting,

                                                 University of Abuja

 

Abstract

Debt is borrowing that is either for the purpose of smoothening the consumption path in the face of transitory shocks or as a means of supplementing domestic savings in order to expand productive capacity and raise the long – run growth rate. The objective of this work is to link foreign borrowing with growth. Whether debt could be used as a development strategy especially among low-income countries is the question of interest in this research. By using a simple open macro-economic model and focusing on the external  balance of payment  of a developing economy with rigidities, this work derives an empirically testable condition to show the impact of foreign borrowing on growth, i.e. as factor of growth and its negative impact on growth or when acting as a burden on growth. It concluded that foreign debt could have negative relationship with growth if not managed prudently. It is recommended that for external debt to be of positive impact on growth there is the need for a comprehensive and effective debt management strategy.

AN EMPIRICAL ASSESSMENT OF COMMERCIAL BANKS PERFORMANCE IN POST-CONSOLIDATION EXERCISE IN NIGERIA

 

 

Kabiru Tukur Isa

Department of Banking & Finance

 University of Abuja Nigeria

                                    Email;ktukur@yahoo.com   08034482795

                                                       Sani Gurowa

                                                Department of Accounting

University of Abuja Nigeria

                                         Sgurowa67@yahoo.com  Tel:08057755394

                       

Abstract

The credit crisis and the transatlantic mortgage financial problem of 2008, have juxtaposed the effectiveness of bank consolidation exercise as a remedy for financial stability in the financial sector for sustainable development in Nigeria. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solution to bank failures. The paper attempts to examine the performances of commercial banks that participated in the consolidation exercise and macro-economic performance of the economy in a post-consolidation period. The paper also analyses published audited accounts of twenty (20) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Bank of Nigeria (CBN) is also utilized.

 We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for the purpose of analysis, we notice that the consolidation process   after years of operation has not significantly improved the overall performance of banks in Nigeria, and also has contributed marginally to the growth of the real sectors of the economy. The paper concludes that banking sector is becoming competitive and market forces driven and is creating an atmosphere where many banks simply cannot afford to have weak balance sheets and back bench corporate governance.

The paper posits further that consolidation of banks may not necessarily be a sufficient tool for financial sector stability for sustainable development in Nigeria and this confirms Megginson(2005) and Somoye(2006) postulations. We recommend that bank consolidation in the financial sector must be market driven and also should be all- encompassing with other sectors of the economy. The paper opined further that researchers, economists and policy makers and all stake holders should begin to develop new set of paradigms for financial markets stability in place of banking consolidation policy.

AN ECONOMETRIC INVESTIGATION OF THE IMPACT OF FEDERAL GOVERNMENT FUNCTIONAL EXPENDITURES ON ECONOMIC GROTH AND REAL SECTOR PERFORMANCE IN NIGERIA:  1970 – 2008

 

 

Okoroafor O. K. David

Departmnent of Economics, Faculty of Social Sciences

University of Abuja

 

 

ECONOMETRIC APPLICATION OF AN EARLY WARNING MODEL ON BANK SUPERVISION IN NIGERIA.

 

 

Magaji S. PhD

Department of Economics, Faculty of Social Sciences

University of Abuja

P.M.B 117, Abuja, Nigeria. e-mail:drs.magaji@yahoo.com

Abdulkarim Muhammad

Department of Statistics, Faculty of Science

University of Abuja

P.M.B 117, Abuja, Nigeria.

Abstract

A combination of factor analytical framework, multiple discriminant analysis and logit model were used in this work which aimed at providing an Early warning model to assist Bank regulatory and supervisoy authorities in Nigeria.  This is with a view to reduce the risk and cost of bank failures in Nigeria.  The proposed early warning  model is not designed to be a replacement of the existing bank examination practices and personnel.  It also not intends to be a substitute for the human skills and judgement in dealing with  problems of bank supervision.  The realistic but limited objective of our model is to act as an aid in scheduling bank examination by the supervisory and regulatory authorities so that potential insolvent (problem) banks would be examined more frequently and more intensely than solvent (non-problem) banks.

DYSFUNCTIONAL STATE OF COMMERCIAL BANKS IN NIGERIA:  THE OLLUSION OF CORE BALUES

 

 

Otse A. Egwurube, B. Sc, M. Sc, CAN, ACM

Office of the Bursar, University of Abuja,

P.M.B 117, Abuja, Nigeria.

otseamos@yahoo.com

+2348052313476

Abstract

The commercial banks are unique financial institution in Nigeria given their strategic importance and state functions.  It is one institution that plays a major role in financing the nation’s economic activity particularly in the are of money creation and implementing monetary policies.  The increase level of interface between the commercial banks and the government has place even greater premiun on its usefulness to the economy.  The commercial banks are agants of development in any nation as their activities and product increases the value chain by its banks to be focused, having in mind national objectives and committed to it core values.  The paper assesses the evolving role of the commercial banks in Nigeria during the last two decade using available data to ascertain the state of their health as it relates to their functions and core values.  A simple tabular presentation and rational analysis of available data shows that the commercial banks have not significantly played the required of the regulatory authority to refocus the banking industry in Nigeria to ensure meaningful economic growth.

HISTORAICAL OVERVIEW OF THE INFLUENCE OF MICRO

CREDIT ON ENTERPRENAURSHIP DEVELOPEMNT AND

POVERTY ERADICATION

 

 

MAGAJI S. (Ph.D)

Department Ofeconomics

Univeresity of Abuja,

Awwal A. Muhammad

Department of History

University of Abuja

Yusuf Umar Dantama. (Ph.D)

Usmandanfodio University

Sokoto.

 

 

 

Abstract

This paper is a historical overview on the influence of micro credit on entrepreneurship development and poverty eradication. The paper is a direct attack on the notion that an investor cannot survive without capital. A review is made on how poor investors either mobilized credit from within themselves or get assistance from government or other interested institutions to set up business. The regions of the view include Asian countries, Latin America and Africa. It has been found that micro credits is  good entrepreneurship drive and can empower the borrowers especially through asset accumulation and gaining entrepreneurship skill. However, in the Nigerian context it has been suggested by the paper that the macro credit needs to be supplemented with entrepreneurship training by the lending agencies.

THE IMPACT OF GLOBAL ECONOMIC MELTDOUN ON                    CORPORATE INVESTMENT IN NIGERIA

Abdullahi Bashir M.

Department of Banking and Faineance,

University of Abuja, P. M. B. 117,

Abuja, F.C.T., Nigeria

Bash7th@yahoo.com

08065727548

Onuh Okpe Emanuel

Department of Accounting,

University of Abuja, P.M.B 117,

Abuja, F.C.T., Nigeria

Blueoreon@yahoo.com

08059129505

Abstract

The Global Economic Meltdown (GEM) that started in the USA has become a global economic crisis pervading the entire world. The aim of this study is to examine the impact of the GEM on corporate investment in Nigeria. To be able to do this, the descriptive statistical approach was used to provide explanation to achieve the objective. Data on the Nigerian capital market were extensively used with other information from secondary sources. It was discovered that the GEM has negative impact on corporate investment in Nigeria. This forms the basis for its import in corporate investment in the country. It was therefore recommended that government should, among other things, diversify the country’s mono-economy and improve infrastructure to cushion the effects of the GEM on corporate investment, now and in the future.

THE IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN NIGERIA.

 

 

Abubakar Sadiq Saleh                            

    Department of Banking and Finance,

 University of Abuja

      abubakar008@yahoo.co.uk

Kaka Abdullahi(Mrs)

                                        Department of Accounting,

                                                 University of Abuja

 

Abstract

Debt is borrowing that is either for the purpose of smoothening the consumption path in the face of transitory shocks or as a means of supplementing domestic savings in order to expand productive capacity and raise the long – run growth rate. The objective of this work is to link foreign borrowing with growth. Whether debt could be used as a development strategy especially among low-income countries is the question of interest in this research. By using a simple open macro-economic model and focusing on the external  balance of payment  of a developing economy with rigidities, this work derives an empirically testable condition to show the impact of foreign borrowing on growth, i.e. as factor of growth and its negative impact on growth or when acting as a burden on growth. It concluded that foreign debt could have negative relationship with growth if not managed prudently. It is recommended that for external debt to be of positive impact on growth there is the need for a comprehensive and effective debt management strategy.

AN EMPIRICAL ASSESSMENT OF COMMERCIAL BANKS PERFORMANCE IN POST-CONSOLIDATION EXERCISE IN NIGERIA

 

 

Kabiru Tukur Isa

Department of Banking & Finance

 University of Abuja Nigeria

                                    Email;ktukur@yahoo.com   08034482795

                                                       Sani Gurowa

                                                Department of Accounting

University of Abuja Nigeria

                                         Sgurowa67@yahoo.com  Tel:08057755394

                       

Abstract

The credit crisis and the transatlantic mortgage financial problem of 2008, have juxtaposed the effectiveness of bank consolidation exercise as a remedy for financial stability in the financial sector for sustainable development in Nigeria. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solution to bank failures. The paper attempts to examine the performances of commercial banks that participated in the consolidation exercise and macro-economic performance of the economy in a post-consolidation period. The paper also analyses published audited accounts of twenty (20) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Bank of Nigeria (CBN) is also utilized.

 We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for the purpose of analysis, we notice that the consolidation process   after years of operation has not significantly improved the overall performance of banks in Nigeria, and also has contributed marginally to the growth of the real sectors of the economy. The paper concludes that banking sector is becoming competitive and market forces driven and is creating an atmosphere where many banks simply cannot afford to have weak balance sheets and back bench corporate governance.

The paper posits further that consolidation of banks may not necessarily be a sufficient tool for financial sector stability for sustainable development in Nigeria and this confirms Megginson(2005) and Somoye(2006) postulations. We recommend that bank consolidation in the financial sector must be market driven and also should be all- encompassing with other sectors of the economy. The paper opined further that researchers, economists and policy makers and all stake holders should begin to develop new set of paradigms for financial markets stability in place of banking consolidation policy.

AN ECONOMETRIC INVESTIGATION OF THE IMPACT OF FEDERAL GOVERNMENT FUNCTIONAL EXPENDITURES ON ECONOMIC GROTH AND REAL SECTOR PERFORMANCE IN NIGERIA:  1970 – 2008

 

 

Okoroafor O. K. David

Departmnent of Economics, Faculty of Social Sciences

University of Abuja

 

 

ECONOMETRIC APPLICATION OF AN EARLY WARNING MODEL ON BANK SUPERVISION IN NIGERIA.

 

 

Magaji S. PhD

Department of Economics, Faculty of Social Sciences

University of Abuja

P.M.B 117, Abuja, Nigeria. e-mail:drs.magaji@yahoo.com

Abdulkarim Muhammad

Department of Statistics, Faculty of Science

University of Abuja

P.M.B 117, Abuja, Nigeria.

Abstract

A combination of factor analytical framework, multiple discriminant analysis and logit model were used in this work which aimed at providing an Early warning model to assist Bank regulatory and supervisoy authorities in Nigeria.  This is with a view to reduce the risk and cost of bank failures in Nigeria.  The proposed early warning  model is not designed to be a replacement of the existing bank examination practices and personnel.  It also not intends to be a substitute for the human skills and judgement in dealing with  problems of bank supervision.  The realistic but limited objective of our model is to act as an aid in scheduling bank examination by the supervisory and regulatory authorities so that potential insolvent (problem) banks would be examined more frequently and more intensely than solvent (non-problem) banks.

DYSFUNCTIONAL STATE OF COMMERCIAL BANKS IN NIGERIA:  THE OLLUSION OF CORE BALUES

 

 

Otse A. Egwurube, B. Sc, M. Sc, CAN, ACM

Office of the Bursar, University of Abuja,

P.M.B 117, Abuja, Nigeria.

otseamos@yahoo.com

+2348052313476

Abstract

The commercial banks are unique financial institution in Nigeria given their strategic importance and state functions.  It is one institution that plays a major role in financing the nation’s economic activity particularly in the are of money creation and implementing monetary policies.  The increase level of interface between the commercial banks and the government has place even greater premiun on its usefulness to the economy.  The commercial banks are agants of development in any nation as their activities and product increases the value chain by its banks to be focused, having in mind national objectives and committed to it core values.  The paper assesses the evolving role of the commercial banks in Nigeria during the last two decade using available data to ascertain the state of their health as it relates to their functions and core values.  A simple tabular presentation and rational analysis of available data shows that the commercial banks have not significantly played the required of the regulatory authority to refocus the banking industry in Nigeria to ensure meaningful economic growth.

HISTORAICAL OVERVIEW OF THE INFLUENCE OF MICRO

CREDIT ON ENTERPRENAURSHIP DEVELOPEMNT AND

POVERTY ERADICATION

 

 

MAGAJI S. (Ph.D)

Department Ofeconomics

Univeresity of Abuja,

Awwal A. Muhammad

Department of History

University of Abuja

Yusuf Umar Dantama. (Ph.D)

Usmandanfodio University

Sokoto.

 

 

 

Abstract

This paper is a historical overview on the influence of micro credit on entrepreneurship development and poverty eradication. The paper is a direct attack on the notion that an investor cannot survive without capital. A review is made on how poor investors either mobilized credit from within themselves or get assistance from government or other interested institutions to set up business. The regions of the view include Asian countries, Latin America and Africa. It has been found that micro credits is  good entrepreneurship drive and can empower the borrowers especially through asset accumulation and gaining entrepreneurship skill. However, in the Nigerian context it has been suggested by the paper that the macro credit needs to be supplemented with entrepreneurship training by the lending agencies.

THE IMPACT OF GLOBAL ECONOMIC MELTDOUN ON                    CORPORATE INVESTMENT IN NIGERIA

Abdullahi Bashir M.

Department of Banking and Faineance,

University of Abuja, P. M. B. 117,

Abuja, F.C.T., Nigeria

Bash7th@yahoo.com

08065727548

Onuh Okpe Emanuel

Department of Accounting,

University of Abuja, P.M.B 117,

Abuja, F.C.T., Nigeria

Blueoreon@yahoo.com

08059129505

Abstract

The Global Economic Meltdown (GEM) that started in the USA has become a global economic crisis pervading the entire world. The aim of this study is to examine the impact of the GEM on corporate investment in Nigeria. To be able to do this, the descriptive statistical approach was used to provide explanation to achieve the objective. Data on the Nigerian capital market were extensively used with other information from secondary sources. It was discovered that the GEM has negative impact on corporate investment in Nigeria. This forms the basis for its import in corporate investment in the country. It was therefore recommended that government should, among other things, diversify the country’s mono-economy and improve infrastructure to cushion the effects of the GEM on corporate investment, now and in the future.

THE IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN NIGERIA.

 

 

Abubakar Sadiq Saleh                            

    Department of Banking and Finance,

 University of Abuja

      abubakar008@yahoo.co.uk

Kaka Abdullahi(Mrs)

                                        Department of Accounting,

                                                 University of Abuja

 

Abstract

Debt is borrowing that is either for the purpose of smoothening the consumption path in the face of transitory shocks or as a means of supplementing domestic savings in order to expand productive capacity and raise the long – run growth rate. The objective of this work is to link foreign borrowing with growth. Whether debt could be used as a development strategy especially among low-income countries is the question of interest in this research. By using a simple open macro-economic model and focusing on the external  balance of payment  of a developing economy with rigidities, this work derives an empirically testable condition to show the impact of foreign borrowing on growth, i.e. as factor of growth and its negative impact on growth or when acting as a burden on growth. It concluded that foreign debt could have negative relationship with growth if not managed prudently. It is recommended that for external debt to be of positive impact on growth there is the need for a comprehensive and effective debt management strategy.

AN EMPIRICAL ASSESSMENT OF COMMERCIAL BANKS PERFORMANCE IN POST-CONSOLIDATION EXERCISE IN NIGERIA

 

 

Kabiru Tukur Isa

Department of Banking & Finance

 University of Abuja Nigeria

                                    Email;ktukur@yahoo.com   08034482795

                                                       Sani Gurowa

                                                Department of Accounting

University of Abuja Nigeria

                                         Sgurowa67@yahoo.com  Tel:08057755394

                       

Abstract

The credit crisis and the transatlantic mortgage financial problem of 2008, have juxtaposed the effectiveness of bank consolidation exercise as a remedy for financial stability in the financial sector for sustainable development in Nigeria. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solution to bank failures. The paper attempts to examine the performances of commercial banks that participated in the consolidation exercise and macro-economic performance of the economy in a post-consolidation period. The paper also analyses published audited accounts of twenty (20) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Bank of Nigeria (CBN) is also utilized.

 We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for the purpose of analysis, we notice that the consolidation process   after years of operation has not significantly improved the overall performance of banks in Nigeria, and also has contributed marginally to the growth of the real sectors of the economy. The paper concludes that banking sector is becoming competitive and market forces driven and is creating an atmosphere where many banks simply cannot afford to have weak balance sheets and back bench corporate governance.

The paper posits further that consolidation of banks may not necessarily be a sufficient tool for financial sector stability for sustainable development in Nigeria and this confirms Megginson(2005) and Somoye(2006) postulations. We recommend that bank consolidation in the financial sector must be market driven and also should be all- encompassing with other sectors of the economy. The paper opined further that researchers, economists and policy makers and all stake holders should begin to develop new set of paradigms for financial markets stability in place of banking consolidation policy.

AN ECONOMETRIC INVESTIGATION OF THE IMPACT OF FEDERAL GOVERNMENT FUNCTIONAL EXPENDITURES ON ECONOMIC GROTH AND REAL SECTOR PERFORMANCE IN NIGERIA:  1970 – 2008

 

 

Okoroafor O. K. David

Departmnent of Economics, Faculty of Social Sciences

University of Abuja

 

 

ECONOMETRIC APPLICATION OF AN EARLY WARNING MODEL ON BANK SUPERVISION IN NIGERIA.

 

 

Magaji S. PhD

Department of Economics, Faculty of Social Sciences

University of Abuja

P.M.B 117, Abuja, Nigeria. e-mail:drs.magaji@yahoo.com

Abdulkarim Muhammad

Department of Statistics, Faculty of Science

University of Abuja

P.M.B 117, Abuja, Nigeria.

Abstract

A combination of factor analytical framework, multiple discriminant analysis and logit model were used in this work which aimed at providing an Early warning model to assist Bank regulatory and supervisoy authorities in Nigeria.  This is with a view to reduce the risk and cost of bank failures in Nigeria.  The proposed early warning  model is not designed to be a replacement of the existing bank examination practices and personnel.  It also not intends to be a substitute for the human skills and judgement in dealing with  problems of bank supervision.  The realistic but limited objective of our model is to act as an aid in scheduling bank examination by the supervisory and regulatory authorities so that potential insolvent (problem) banks would be examined more frequently and more intensely than solvent (non-problem) banks.

DYSFUNCTIONAL STATE OF COMMERCIAL BANKS IN NIGERIA:  THE OLLUSION OF CORE BALUES

 

 

Otse A. Egwurube, B. Sc, M. Sc, CAN, ACM

Office of the Bursar, University of Abuja,

P.M.B 117, Abuja, Nigeria.

otseamos@yahoo.com

+2348052313476

Abstract

The commercial banks are unique financial institution in Nigeria given their strategic importance and state functions.  It is one institution that plays a major role in financing the nation’s economic activity particularly in the are of money creation and implementing monetary policies.  The increase level of interface between the commercial banks and the government has place even greater premiun on its usefulness to the economy.  The commercial banks are agants of development in any nation as their activities and product increases the value chain by its banks to be focused, having in mind national objectives and committed to it core values.  The paper assesses the evolving role of the commercial banks in Nigeria during the last two decade using available data to ascertain the state of their health as it relates to their functions and core values.  A simple tabular presentation and rational analysis of available data shows that the commercial banks have not significantly played the required of the regulatory authority to refocus the banking industry in Nigeria to ensure meaningful economic growth.

HISTORAICAL OVERVIEW OF THE INFLUENCE OF MICRO

CREDIT ON ENTERPRENAURSHIP DEVELOPEMNT AND

POVERTY ERADICATION

 

 

MAGAJI S. (Ph.D)

Department Ofeconomics

Univeresity of Abuja,

Awwal A. Muhammad

Department of History

University of Abuja

Yusuf Umar Dantama. (Ph.D)

Usmandanfodio University

Sokoto.

 

 

 

Abstract

This paper is a historical overview on the influence of micro credit on entrepreneurship development and poverty eradication. The paper is a direct attack on the notion that an investor cannot survive without capital. A review is made on how poor investors either mobilized credit from within themselves or get assistance from government or other interested institutions to set up business. The regions of the view include Asian countries, Latin America and Africa. It has been found that micro credits is  good entrepreneurship drive and can empower the borrowers especially through asset accumulation and gaining entrepreneurship skill. However, in the Nigerian context it has been suggested by the paper that the macro credit needs to be supplemented with entrepreneurship training by the lending agencies.

THE IMPACT OF GLOBAL ECONOMIC MELTDOUN ON                    CORPORATE INVESTMENT IN NIGERIA

Abdullahi Bashir M.

Department of Banking and Faineance,

University of Abuja, P. M. B. 117,

Abuja, F.C.T., Nigeria

Bash7th@yahoo.com

08065727548

Onuh Okpe Emanuel

Department of Accounting,

University of Abuja, P.M.B 117,

Abuja, F.C.T., Nigeria

Blueoreon@yahoo.com

08059129505

Abstract

The Global Economic Meltdown (GEM) that started in the USA has become a global economic crisis pervading the entire world. The aim of this study is to examine the impact of the GEM on corporate investment in Nigeria. To be able to do this, the descriptive statistical approach was used to provide explanation to achieve the objective. Data on the Nigerian capital market were extensively used with other information from secondary sources. It was discovered that the GEM has negative impact on corporate investment in Nigeria. This forms the basis for its import in corporate investment in the country. It was therefore recommended that government should, among other things, diversify the country’s mono-economy and improve infrastructure to cushion the effects of the GEM on corporate investment, now and in the future.

THE IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN NIGERIA.

 

 

Abubakar Sadiq Saleh                            

    Department of Banking and Finance,

 University of Abuja

      abubakar008@yahoo.co.uk

Kaka Abdullahi(Mrs)

                                        Department of Accounting,

                                                 University of Abuja

 

Abstract

Debt is borrowing that is either for the purpose of smoothening the consumption path in the face of transitory shocks or as a means of supplementing domestic savings in order to expand productive capacity and raise the long – run growth rate. The objective of this work is to link foreign borrowing with growth. Whether debt could be used as a development strategy especially among low-income countries is the question of interest in this research. By using a simple open macro-economic model and focusing on the external  balance of payment  of a developing economy with rigidities, this work derives an empirically testable condition to show the impact of foreign borrowing on growth, i.e. as factor of growth and its negative impact on growth or when acting as a burden on growth. It concluded that foreign debt could have negative relationship with growth if not managed prudently. It is recommended that for external debt to be of positive impact on growth there is the need for a comprehensive and effective debt management strategy.

AN EMPIRICAL ASSESSMENT OF COMMERCIAL BANKS PERFORMANCE IN POST-CONSOLIDATION EXERCISE IN NIGERIA

 

 

Kabiru Tukur Isa

Department of Banking & Finance

 University of Abuja Nigeria

                                    Email;ktukur@yahoo.com   08034482795

                                                       Sani Gurowa

                                                Department of Accounting

University of Abuja Nigeria

                                         Sgurowa67@yahoo.com  Tel:08057755394

                       

Abstract

The credit crisis and the transatlantic mortgage financial problem of 2008, have juxtaposed the effectiveness of bank consolidation exercise as a remedy for financial stability in the financial sector for sustainable development in Nigeria. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solution to bank failures. The paper attempts to examine the performances of commercial banks that participated in the consolidation exercise and macro-economic performance of the economy in a post-consolidation period. The paper also analyses published audited accounts of twenty (20) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Bank of Nigeria (CBN) is also utilized.

 We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for the purpose of analysis, we notice that the consolidation process   after years of operation has not significantly improved the overall performance of banks in Nigeria, and also has contributed marginally to the growth of the real sectors of the economy. The paper concludes that banking sector is becoming competitive and market forces driven and is creating an atmosphere where many banks simply cannot afford to have weak balance sheets and back bench corporate governance.

The paper posits further that consolidation of banks may not necessarily be a sufficient tool for financial sector stability for sustainable development in Nigeria and this confirms Megginson(2005) and Somoye(2006) postulations. We recommend that bank consolidation in the financial sector must be market driven and also should be all- encompassing with other sectors of the economy. The paper opined further that researchers, economists and policy makers and all stake holders should begin to develop new set of paradigms for financial markets stability in place of banking consolidation policy.

AN ECONOMETRIC INVESTIGATION OF THE IMPACT OF FEDERAL GOVERNMENT FUNCTIONAL EXPENDITURES ON ECONOMIC GROTH AND REAL SECTOR PERFORMANCE IN NIGERIA:  1970 – 2008

 

 

Okoroafor O. K. David

Departmnent of Economics, Faculty of Social Sciences

University of Abuja

 

 

ECONOMETRIC APPLICATION OF AN EARLY WARNING MODEL ON BANK SUPERVISION IN NIGERIA.

 

 

Magaji S. PhD

Department of Economics, Faculty of Social Sciences

University of Abuja

P.M.B 117, Abuja, Nigeria. e-mail:drs.magaji@yahoo.com

Abdulkarim Muhammad

Department of Statistics, Faculty of Science

University of Abuja

P.M.B 117, Abuja, Nigeria.

Abstract

A combination of factor analytical framework, multiple discriminant analysis and logit model were used in this work which aimed at providing an Early warning model to assist Bank regulatory and supervisoy authorities in Nigeria.  This is with a view to reduce the risk and cost of bank failures in Nigeria.  The proposed early warning  model is not designed to be a replacement of the existing bank examination practices and personnel.  It also not intends to be a substitute for the human skills and judgement in dealing with  problems of bank supervision.  The realistic but limited objective of our model is to act as an aid in scheduling bank examination by the supervisory and regulatory authorities so that potential insolvent (problem) banks would be examined more frequently and more intensely than solvent (non-problem) banks.

DYSFUNCTIONAL STATE OF COMMERCIAL BANKS IN NIGERIA:  THE OLLUSION OF CORE BALUES

 

 

Otse A. Egwurube, B. Sc, M. Sc, CAN, ACM

Office of the Bursar, University of Abuja,

P.M.B 117, Abuja, Nigeria.

otseamos@yahoo.com

+2348052313476

Abstract

The commercial banks are unique financial institution in Nigeria given their strategic importance and state functions.  It is one institution that plays a major role in financing the nation’s economic activity particularly in the are of money creation and implementing monetary policies.  The increase level of interface between the commercial banks and the government has place even greater premiun on its usefulness to the economy.  The commercial banks are agants of development in any nation as their activities and product increases the value chain by its banks to be focused, having in mind national objectives and committed to it core values.  The paper assesses the evolving role of the commercial banks in Nigeria during the last two decade using available data to ascertain the state of their health as it relates to their functions and core values.  A simple tabular presentation and rational analysis of available data shows that the commercial banks have not significantly played the required of the regulatory authority to refocus the banking industry in Nigeria to ensure meaningful economic growth.

HISTORAICAL OVERVIEW OF THE INFLUENCE OF MICRO

CREDIT ON ENTERPRENAURSHIP DEVELOPEMNT AND

POVERTY ERADICATION

 

 

MAGAJI S. (Ph.D)

Department Ofeconomics

Univeresity of Abuja,

Awwal A. Muhammad

Department of History

University of Abuja

Yusuf Umar Dantama. (Ph.D)

Usmandanfodio University

Sokoto.

 

 

 

Abstract

This paper is a historical overview on the influence of micro credit on entrepreneurship development and poverty eradication. The paper is a direct attack on the notion that an investor cannot survive without capital. A review is made on how poor investors either mobilized credit from within themselves or get assistance from government or other interested institutions to set up business. The regions of the view include Asian countries, Latin America and Africa. It has been found that micro credits is  good entrepreneurship drive and can empower the borrowers especially through asset accumulation and gaining entrepreneurship skill. However, in the Nigerian context it has been suggested by the paper that the macro credit needs to be supplemented with entrepreneurship training by the lending agencies.

THE IMPACT OF GLOBAL ECONOMIC MELTDOUN ON                    CORPORATE INVESTMENT IN NIGERIA

Abdullahi Bashir M.

Department of Banking and Faineance,

University of Abuja, P. M. B. 117,

Abuja, F.C.T., Nigeria

Bash7th@yahoo.com

08065727548

Onuh Okpe Emanuel

Department of Accounting,

University of Abuja, P.M.B 117,

Abuja, F.C.T., Nigeria

Blueoreon@yahoo.com

08059129505

Abstract

The Global Economic Meltdown (GEM) that started in the USA has become a global economic crisis pervading the entire world. The aim of this study is to examine the impact of the GEM on corporate investment in Nigeria. To be able to do this, the descriptive statistical approach was used to provide explanation to achieve the objective. Data on the Nigerian capital market were extensively used with other information from secondary sources. It was discovered that the GEM has negative impact on corporate investment in Nigeria. This forms the basis for its import in corporate investment in the country. It was therefore recommended that government should, among other things, diversify the country’s mono-economy and improve infrastructure to cushion the effects of the GEM on corporate investment, now and in the future.

THE IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN NIGERIA.

 

 

Abubakar Sadiq Saleh                            

    Department of Banking and Finance,

 University of Abuja

      abubakar008@yahoo.co.uk

Kaka Abdullahi(Mrs)

                                        Department of Accounting,

                                                 University of Abuja

 

Abstract

Debt is borrowing that is either for the purpose of smoothening the consumption path in the face of transitory shocks or as a means of supplementing domestic savings in order to expand productive capacity and raise the long – run growth rate. The objective of this work is to link foreign borrowing with growth. Whether debt could be used as a development strategy especially among low-income countries is the question of interest in this research. By using a simple open macro-economic model and focusing on the external  balance of payment  of a developing economy with rigidities, this work derives an empirically testable condition to show the impact of foreign borrowing on growth, i.e. as factor of growth and its negative impact on growth or when acting as a burden on growth. It concluded that foreign debt could have negative relationship with growth if not managed prudently. It is recommended that for external debt to be of positive impact on growth there is the need for a comprehensive and effective debt management strategy.

AN EMPIRICAL ASSESSMENT OF COMMERCIAL BANKS PERFORMANCE IN POST-CONSOLIDATION EXERCISE IN NIGERIA

 

 

Kabiru Tukur Isa

Department of Banking & Finance

 University of Abuja Nigeria

                                    Email;ktukur@yahoo.com   08034482795

                                                       Sani Gurowa

                                                Department of Accounting

University of Abuja Nigeria

                                         Sgurowa67@yahoo.com  Tel:08057755394

                       

Abstract

The credit crisis and the transatlantic mortgage financial problem of 2008, have juxtaposed the effectiveness of bank consolidation exercise as a remedy for financial stability in the financial sector for sustainable development in Nigeria. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solution to bank failures. The paper attempts to examine the performances of commercial banks that participated in the consolidation exercise and macro-economic performance of the economy in a post-consolidation period. The paper also analyses published audited accounts of twenty (20) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Bank of Nigeria (CBN) is also utilized.

 We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for the purpose of analysis, we notice that the consolidation process   after years of operation has not significantly improved the overall performance of banks in Nigeria, and also has contributed marginally to the growth of the real sectors of the economy. The paper concludes that banking sector is becoming competitive and market forces driven and is creating an atmosphere where many banks simply cannot afford to have weak balance sheets and back bench corporate governance.

The paper posits further that consolidation of banks may not necessarily be a sufficient tool for financial sector stability for sustainable development in Nigeria and this confirms Megginson(2005) and Somoye(2006) postulations. We recommend that bank consolidation in the financial sector must be market driven and also should be all- encompassing with other sectors of the economy. The paper opined further that researchers, economists and policy makers and all stake holders should begin to develop new set of paradigms for financial markets stability in place of banking consolidation policy.

AN ECONOMETRIC INVESTIGATION OF THE IMPACT OF FEDERAL GOVERNMENT FUNCTIONAL EXPENDITURES ON ECONOMIC GROTH AND REAL SECTOR PERFORMANCE IN NIGERIA:  1970 – 2008

 

 

Okoroafor O. K. David

Departmnent of Economics, Faculty of Social Sciences

University of Abuja

AN EXPLORATORY ANALYSIS OF THE NECESSITY OF MARKETING PROMOTION IN INDUSTRIAL SECTORS: FINANCIAL SERVICES SECTOR IN PERSPECTIVE.

 

 

DR. PETER MAIDOKI

DEPARTMENT OF PUBLIC ADMINISTRATION,

UNIVERSITY OF ABUJA.

 

DR. OYADIRAN PHILLIP  .A.

DEPARTMENT OF PUBLIC ADMINISTRATION,

UNIVERSITY OF ABUJA.

E-mail: philloy2000@yahoo.com    Tel: 08055247905

 

 

Abstract

Promotion is certainly one of the most talk about areas of marketing even in financial services sector. Whether it is deliberately planned or subconsciously done, the objectives are the same or at least similar everywhere and at anytime. The most important dual roles of promotion is firstly, to sell the organization’s product or services and secondly to sell the organization itself. This is because an organization whether small or big has an image, which must continuously be maintained and protected. Any organization whether, body corporate, union– corporate, small private and public companies, philanthropic or charitable organizations have one form of social responsibility or the other to the community within which they operate. The string that binds and enhances the interests of both parties is promotion. This operates in various forms of complex communication process. Promotion can therefore be said to have positive correlation with better living standards through better information and better knowledge. Incidentally, in Nigeria there is now a noticeable understanding of the relevance of promotion. The problem of inadequate promotional infrastructures including skilled manpower is a fact that generates argument, because promotional performance becomes difficult to measure or understand at such level. The paper used both primary data and exploratory approach and quality theory as its methodology and theoretical framework respectively. The findings from the respondents and tested hypotheses revealed that promotion enhances customers’ patronage and serves as an effective competitive weapon. It also indicated that promotion develops strong financial sectors’ image and efficient services. The major recommendation of the study among others is that companies and financial services sector must understand their communication responsibilities and embark on effective planning because promotions like many other activities or the organization should not be an accidental thing or its use restricted to a crisis situation. It must be deliberate and planned. Promotional objectives must be set so that they can serve as control for performance, measurement and evaluation.  It is hoped that the findings and recommendations in this study will lighten the tempo of industries generally and banking and financial sectors in particular, into developing a new approach and attention to promotion.

 

CAPITAL MARKET AND THE ECONOMY: EVIDENCE FROM NIGERIA

(1980-2008)

 

 

Mohammed Nuruddeen Isa

Department Of Economics, University of Abuja

Mobil Line: 08023583138

Email: isa_kn@yahoo.com

 

Hassan, Anthony Emmanuel

Department Of Economics, University Of Abuja

Mobil Line: 08054333701

Email: hassanemma2006@yahoo.com

 

Abstract

This paper considered capital market and the economy with the intent of finding out the effect of the development of the former on the latter. We employed the ordinary least square methodology and analysed the time series used for possible unit root while we also conducted causality and co integration tests. The study was over the period 1980 to 2008 for the Nigeria economy. We found that market capitalization as a ratio of real GDP had positive and significant influence on economic growth. Also, domestic debt can be a veritable source of funds to finance productive investment which will in turn promote growth in the economy. In addition, money supply did actually impact positively on the capital market but this could not reflect on the economy by way of growth; it has rather possibly created instability in the economy by fueling inflation. Exchange rate, interest rate and portfolio investment all impacted negatively on the capital market and consequently on the economy. We concluded that capital market development is crucial for growth in the Nigeria economy and that both reinforce each other. We therefore recommend that there be appropriate supply of money to the economy to maintain growth and price stability since money supply affects the money market in terms of availability and cost of funds. In addition, there is the need to put in place policies that will deepen the financial system, particularly the capital market, as it remains the only provider of funds needed for productive investment that can bring about growth and improved welfare for the populace. The government should also evaluate its domestic debt policy and ensure that the private sector is given the required impetus to thrive.

EXCHANGE RATE DEPRECIATION AND EXPORTS NEXUS: THE CASE OF NIGERIA

Obida Gobna Wafure

Department of Economics, University of Abuja,

P.M.B 117, Abuja, Nigeria.  Email- gobna2007@yahoo.com

Tel- +2348033808931

Abu, Nurudeen

Department of Economics, University of Abuja,

P.M.B 117, Abuja, Nigeria.    

Email- nibnabu@yahoo.com

Tel- +2348055945723

 

 

Abstract

The paper investigates the relationship between exchange rate depreciation and exports in Nigeria using the Error Correction and Granger Causality techniques. The results showed that causation runs from depreciation to exports. The results also revealed that exchange rate depreciation is statistically significant in stimulating exports in Nigeria. Thus, we recommend the following among others. Firstly, government should accommodate some depreciation of the domestic currency in order to raise exports. Secondly, government should develop the nation’s infrastructure (power supply, roads, etc,), and increase the funding of the Exports Processing Zone Authorities. In addition, government should eliminate barriers to exports in the form reduced excise and export duties, lower corporate profits tax for exporters, encourage quality, packaging and branding of export goods. 

Keywords: Exchange rate depreciation, exports, granger causality, error correction.

AN EVALUATION OF PROMOTIONAL MIX STRATEGIES FOR BANKING SERVICES IN NIGERIA

 

Bello Ayuba

Department of Business Administration

University of Abuja

Gwagwalada

Garba Bala Bello, Phd

Department of Business Administration

Bayero University, Kano

 

 

Abstract

Promotion is an important element of the marketing mix which is carried out regularly in order to achieve marketing communication objectives so as to remain competitive within the environment. For any promotion to be effective and result oriented, it has to be carefully planned and properly implemented. It is in realization of this that the study was conducted to evaluate the promotional mix strategies for banking services in Nigeria. The main objective is to gain a better understanding of promotion mix strategies for banking services in Nigeria with a view to determine how the promotional mix strategies of commercial banking service firms can best be described and to assess the extent to which external factors can influence the choice of promotional strategy for banking services in Nigeria. In order to achieve our objectives, we have conducted a study of some bank‘s promotion strategies in Nigeria (the mainstream banks referred to as universal banks). The methodological approach for data collection includes the use of both interviews and documentations. The findings of the study reveal that the blend of Advertising and Personal Selling has proved to be the most effective promotional mix strategy for banking services in Nigeria. The study also shows that the external factors influencing the choice of promotion strategy are technology orientation of the industry, cultural aspects, competitiveness of the market, and economic factors. Adaptation of the promotion strategy is performed to a great extent, due to customers’ different preferences and expectations, as well as location of the service firm. Among the major recommendation of the study is the need for commercial banks in Nigeria to try and improve on their marketing via the internet in order to get access to more customer information that will help in building a strong customer bond.

ELECTRONIC BANKING, CORRUPTION IN THE PRIVATE SECTOR AND ANTI-CORRUPTION LEGISLATION: A CRITICAL ASSESSMENT OF THE NIGERIAN EXPERIMENT.

 

 

Eke, Chukwuemeka Ifegwu

Department of Economics Faculty of Social Sciences

University of Abuja PMB 117 Abuja, Nigeria.

ekeemeka@gmail.com; telecomclinic2005@yahoo.com

cell:                  +234-803-788-9103

+234-704-221-1914

Fixed line:       +234-709-820-3490

Eze, Millicent Adanne

Department of Economics Faculty of Social Sciences

University of Abuja PMB 117, Abuja, Nigeria.

ezemilicent@yahoo.com

cell:      +234-805-790-0810

            +234-704-264-6011

Abstract

The study was conducted to assess the impact of corruption in the private sector on electronic banking systems in Nigeria. It went further to x-ray the country’s numerous anti-corruption legislation and outlined the way forward. It was the submission of Obi (2005); Nwanne (2005); Boma (2004); Adesoyeju (2004); Iboma (2006); and Olesin (2006) that electronic banking was ushered into the Nigerian economy in the mid-nineties. However, the high rate of online fraud related activities involving Nigerians have contributed to the recent rejection of electronic payment cards originating from Nigerians banks (Obi, 2005) Nigerian card holders had their cards rejected by foreign merchants because of their country of origin (Olesin, 2006). Our submission is that the system is being characterized by weakness or near absence of functional institutions that can create and as well nurture the capacity for fostering a fraud free society. Therefore, the driving force behind the reforms must be assessed in the context that they have the capacity to provide the necessary institutional framework for this goal.

PERFORMANCE – BASED MANAGEMENT (PBM) IN ETHIOPIAN

CIVIL SERVICE: CHALLENGES AND POLICY OPTIONS FOR IMPROVEMENT

 

 

 

James A. Ojobo,  Ph.D

Department of Public Administration

University of Abuja P.M.B 117, Abuja, Nigeria

Tel: 08051002029, 08068319132

E-Mail: drjaojobo@yahoo.com

            jamojobo@yahoo.com

 

 

Abstract

This study identifies the existing conceptual and implementation problems of the Performance-Based Management (PBM) system in Ethiopia. Implementing PBM in the civil service appears to be a global problem, where Ethiopia is not an exception. Part of the problem lies in the origin of the concept that revolves on the private sector (industry), which has relatively measurable products. The other side of the problem emanates from the seemingly controversial purposes of PBM that incorporates accountability and development concerns. A survey method supported with qualitative data analysis technique was employed. Interview was conducted with senior officials from the Ministry of Capacity Building and the Federal Civil Service Commission.  The researcher also observed the activities of the Ethiopian Management Institute (EMI) and the Ethiopian Civil Service College (ECSC).  A brief discussion was also made with some of the experts in these institutes.  Accordingly, absence of matured performance culture, leadership competence and commitment, and difficulty of preparing objective performance indicators were found to be the major challenges of the PBM system.  Finally, this paper recommends that more focus should be placed on addressing organizational challenges (performance culture and leadership commitment) than technical challenges, emphasize on developmental purpose of PBM, attention to institutionalization of research-based PBM, and integrate the performance measurement at employee, team and organizational levels

 

A CRITICAL APPRAISAL OF BUSINESS ENVIRONMENT AND

PROJECTIONS IN THE MANUFACTURING SECTOR

 

 

Oladele O. Aluko

Department Of Economics, University Of Abuja.

Alukooladele@Yahoo.Co.Uk.

Areo Olawale Oyeyemi.

Department Of Economics, University Of Abuja.

Olawaleareo@Yahoo.Com  

Abubakar S. Saleh

Department Of Banking And Finance, University Of Abuja

 

 

Abstract

The Nigeria manufacturing sector is characterized by low productivity and lack of a well established, dynamic and result oriented business environment. This study was therefore, conducted to analyze the business environment in Nigeria in the year 2009/10 and to make possible projections for year 2011/12. The study employed logit regression model to examine the relationship between the Business Environment and some important determinants of business conditions. The study revealed that interest rate affordability, fairness of excise duties and condition of labour relations had immense impact in the Business environment. It was therefore concluded that government should consolidate and maintain efforts geared towards achieving a better business environment for the manufacturing sector. This paper also recommended that fiscal policies incentives such as import duty rebate, credit facilities, and excise duty exemption should be offered to manufacturing enterprises.

 

 

AN EMPIRICAL ANALYSIS OF THE MONEY SUPPLY PROCESS IN GHANA:

1983-2006

 

 

Aliyu Rafindadi Sanusi

Department of Economics, Ahmadu Bello University, Zaria

Email: aliyurafindadiz@yahoo.com

Mobile: 07065656101

 

Abstract

This paper examines the major drivers of the asset counterpart of the observed money supply in Ghana since the adoption of the Economic Recovery Programmes in Ghana. Using the traditional money multiplier approach, the relative contributions of fiscal financing and capital inflows to the money supply process were examined. It is found that until the mid nineties, fiscal deficit financing was the major driver of the money supply process. In the later years, however, changes in the Net Foreign Assets of the Bank of Ghana, driven largely by foreign aid and remittances inflows, appear to be the major cause of monetary expansion. Until 2003 when discipline improved, government borrowing was also the major component and source of changes in the net domestic assets of the BoG. This, we argue, implies the use of foreign exchange market intervention could be an effective way of controlling money supply.  

Keywords:  Money Supply Process, Capital flows, Money Multiplier, Ghana

JEL Classification codes: E51, E52, E58, F35

AN EMPIRICAL ANALYSIS OF THE MONEY SUPPLY PROCESS IN GHANA: 1983-2006

 

Aliyu Rafindadi Sanusi

Department of Economics, Ahmadu Bello University, Zaria

Email: aliyurafindadiz@yahoo.com

Mobile: 07065656101

 

 

Abstract

This paper examines the major drivers of the asset counterpart of the observed money supply in Ghana since the adoption of the Economic Recovery Programmes in Ghana. Using the traditional money multiplier approach, the relative contributions of fiscal financing and capital inflows to the money supply process were examined. It is found that until the mid nineties, fiscal deficit financing was the major driver of the money supply process. In the later years, however, changes in the Net Foreign Assets of the Bank of Ghana, driven largely by foreign aid and remittances inflows, appear to be the major cause of monetary expansion. Until 2003 when discipline improved, government borrowing was also the major component and source of changes in the net domestic assets of the BoG. This, the paper argues, implies that the use of foreign exchange market intervention could be an effective way of controlling money supply.  

Keywords:  Money Supply Process, Capital flows, Money Multiplier, Ghana

JEL Classification codes: E51, E52, E58, F35

AN ASSESSMENT OF NIGERIA’S AGRICULTURAL PRODUCTION & EXPORT TRADE FOR THE PAST DECADE. Policy Implications for the Vision 202020.

 

 

Gana Usman

Department of Economics

University of Abuja.

234-805-328-2321

Abstract

This paper set out to assess Nigeria’s agricultural production and export trade for the past decade and outline salient strategies that if implemented would position the economy on the path to achieving the nation’s 202020 vision. It is the opinion of the paper that in order to reduce the country’s vulnerability in exports, the government must pursue aggressive expansionist agricultural FTAs with countries in the north. Intensive negotiations must be scheduled with many developed and developing countries, such as Australia, China, India, Japan, New Zealand, the United States, and a number of countries in the Middle East and South America. As one of African Union (AU’s) founding members, Nigeria has alot of links with other countries around the globe. It is recommended that Nigeria should adjust its trade negotiation strategy by pushing for a whole package deal instead of pushing for immediate tariff cuts for some selected items before completing the entire agreement Therefore, restructuring and adjustment processes in the agricultural sector, especially for the empowerment of the farmers, are of the essence in order to keep pace with the rapid changes brought about by globalization, such as increased trade, and gain more bilateral trade benefits for society at large. The Nigerian government also needs to pay greater attention to improving the effectiveness and competitiveness of private businesses to enable them to benefit from freer trade. In addition, in efforts to develop its agricultural sector, Nigeria has to be aware of the need for proper and fair distribution of benefits to each domestic sector involved. In addition, several aspects must be significantly enhanced: the bargaining power of farmers, especially small-scale ones, the development of productivity and increased competitiveness in international markets.

AGRICULTURAL SECTOR REFORMS AND THE NIGERIAN ECONOMY: AN IMPACT ANALYSIS

Okoroafor  O.K David

Department of Economics, University of Abuja, Abuja

08069809121; 08055905494

okoroaforo@yahoo.com

.

Duru Innocent .U

Department of Economics, University of Abuja, Abuja.

08065347908  iud3x@yahoo.com

Abstract

Many governments intervene directly in agricultural reforms through its various agencies. A quantitative assessment of the impact of the policy changes on the desired objective is important as it helps inform and shape the policy debate on the reform alternatives and increase transparency and effectiveness of government policy. This paper examined the impact of agricultural sector reforms on the Nigerian economy from 1970 to 2008 using an Ordinary Least Square methodology. The result indicates that average annual rainfall exerts a positive but not significant influence on economic growth. That agricultural credit guarantee scheme fund in Nigeria induces the nation’s economic growth through investment in agricultural production. Also, capital expenditure on agriculture has a positive and significant relation with economic growth suggesting that the more capital expenditure in the agricultural sector that the country embarks on, the more output it will bring about. Inflation has a negative and insignificant relationship with real GDP growth. The study suggests that there is the need to put in place appropriate policies and strategies that will ensure the maintenance of stable prices as this has been shown to be a very important factor influencing the lending rate for agriculture.

AN EMPERICAL REVIEW OF THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES EQUITY INVESTMENT SCHEME (SMEEIS) IN NIGERIA

 

 

 

Otse Amos Egwurube

Office of The Bursar, University of Abuja, Abuja Fct

E-Mail: Otseamos@Yahoo.Com, 08052313476

Tukur, Kabiru Isa

Banking And Finance, University Of Abuja, Abuja

 

 

Abstract

The Small and Medium Enterprises Equity Investment Scheme is a voluntary initiative of the Banker’s Committees in responds to the Federal Government quest to improve Small and Medium Enterprises. This is intended to stimulate economic growth and development, develop local technology and generate employment. The study examines an empirical assessment of the performance of the Small and Medium Enterprises Equity Investment Scheme from 2003 to 2009 and to ascertain the level of achievement in terms of the required growth. The adequacy and weaknesses of the scheme have been thoroughly examined and concludes that the scheme needs a continuous review to be relevant and attract the desired economic development. The study will make use of descriptive method of analysis for this purpose.

FUTURE OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA: THE STRATEGIC ROLES OF THE UNIVERSAL BANKS TOWARDS ECONOMIC GROWTH FROM

 

 

 

Otse Amos Egwurube

Office of The Bursar, University of Abuja, Abuja

E-Mail: Otseamos@Yahoo.Com       

Tel: 08052313476

 

 

Abstract

The importance of the micro, small and medium enterprises sector to the economy of the states cannot be over emphasized. Large-scale sizes grew out of micro, small and medium enterprises. However, in Nigeria they contribute only about 10 – 15 percent of the Gross Domestic Product (International Journal of Economic and Development Issues, 2006). This project will focus on the role of financial institutions to the development of Small and Medium Enterprises as it relate to output expansion; and some the factors militating against it meaningful contribution to  Gross Domestic Product. The problem of the development of Small and Medium Enterprises is not in creativity but area funding. The future of Small and Medium Enterprises in Nigeria may basically depend greatly on the roles played by the Nigerian Financial System especially universal banks. This study will use a simple regression method and ratio analysis to explain the relationship between the variable and examine the efficiency of the universal banking sector.

ISLAMIC BANKING IN NIGERIA: OPPORTUNITIES, CHALLENGES AND ACCEPTABILITY.

 

 

 

Yekeen O. Abdul-Maliq

Department of Banking and Finance, University of Abuja.

GSM: 08037770262

Email: yomaliq5@yahoo.com

 

 

 

 

Abstract

 

This paper examines the opportunities, challenges and possible level of acceptability of the introduction of Islamic banking into Nigeria against the backgrounds that although Islamic banking has been allowed in Nigeria since 1991, and that a pioneer Islamic bank raised equity fund from the Nigerian capital market in 2006 but Nigeria is yet to have an operating Islamic bank. The research which uses the opinion survey method reveals that not only are Nigerians aware of the concepts, principles and tenets of Islamic banking, many including non-Muslims are very receptive to it and eager to see one take off. The research however, reveals well seated reservations and pessimism not only from non-Muslims but also from Muslims. The research reveals that the most important challenge Islamic banking will face in Nigeria is people’s perception about the average Nigerian Muslim, especially at leadership levels, as to how well or otherwise they have conducted themselves, politically, socially and most importantly financially. Otherwise, the research reveals that Nigeria has the potentials, position and good-will (internal and external) to operate Islamic banking (and in fact Islamic finance) to the overall benefit of Nigerians (Muslims and non-Muslims) and mankind as a whole. The researcher therefore recommends that (a) regulator and would-be operators should engage in public awareness creation (b) prospective shareholders and depositors should be made to understand that not only is Islamic banking not for only Moslems but also that all and sundry stand to benefit from it and (c) that a gradual in-roading tactics should be adopted rather than the regulators forcing an Islamic bank on the people.

Key words: Haram, Islamic Banking, Riba, Shari’a, Semanticisation.

ISLAMIC BANKING IN NIGERIA: OPPORTUNITIES, CHALLENGES AND ACCEPTABILITY.

 

 

 

Yekeen O. Abdul-Maliq

Department of Banking and Finance, University of Abuja.

GSM: 08037770262

Email: yomaliq5@yahoo.com

Abstract

This paper examines the opportunities, challenges and possible level of acceptability of the introduction of Islamic banking into Nigeria against the backgrounds that although Islamic banking has been allowed in Nigeria since 1991, and that a pioneer Islamic bank raised equity fund from the Nigerian capital market in 2006 but Nigeria is yet to have an operating Islamic bank. The research which uses the opinion survey method reveals that not only are Nigerians aware of the concepts, principles and tenets of Islamic banking, many including non-Muslims are very receptive to it and eager to see one take off. The research however, reveals well seated reservations and pessimism not only from non-Muslims but also from Muslims. The research reveals that the most important challenge Islamic banking will face in Nigeria is people’s perception about the average Nigerian Muslim, especially at leadership levels, as to how well or otherwise they have conducted themselves, politically, socially and most importantly financially. Otherwise, the research reveals that Nigeria has the potentials, position and good-will (internal and external) to operate Islamic banking (and in fact Islamic finance) to the overall benefit of Nigerians (Muslims and non-Muslims) and mankind as a whole. The researcher therefore recommends that (a) regulator and would-be operators should engage in public awareness creation (b) prospective shareholders and depositors should be made to understand that not only is Islamic banking not for only Moslems but also that all and sundry stand to benefit from it and (c) that a gradual in-roading tactics should be adopted rather than the regulators forcing an Islamic bank on the people.

Key words: Haram, Islamic Banking, Riba, Shari’a, Semanticisation.

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