RISK MANAGEMENT AND BANK SECTOR PERFORMANCE

EVIDENCE FROM NIGERIA

FISCAL AND MONETARY POLICY EFFECT ON THE

NIGERIAN ECONOMY (1990-2019)

This study examined deposit money banks and the performance of small and medium scale enterprises in Nigeria (1990-2019). It observed that small and medium scale enterprises are very fundamental to the economic growth of any country as they have great potentials for the provision of employment, economic diversification, and improvement of our local technology, entrepreneurship development and links with large-scale enterprises. In spite of the fact that it is the driving force of a nation, never the less it has its own fair share of neglect as inadequate capital, inaccessible credit facilities are some of the problems confronting small scale enterprises. Methodologically, the researcher made use of secondary data such as textbooks, journals, government document etc. and subsequently analyzed the issues, deposit rate and loan to customers through the use of ordinary least square (OLS) technique. Thus the paper concludes that deposit rate (DR) has a negative coefficient -0.15298 which is insignificant with a p-value of 0.0111 and   Loan to customers (LC) was found to have a positive coefficient of 0.124471 which is significant with a p-value of 0.0291. The paper recommends amongst others that Deposit Money Banks should mobilize enough deposit and always make soft loans to Small and medium Scale Enterprises in order to enhance Economy Growth and Development in Nigeria.

Economic development, Small and Medium scale enterprises.

THE RELATIONSHIP BETWEEN AUDIT FIRM QUALITY AND BANK SECTOR PERFORMANCE IN NIGERIA

MONETARY POLICY INSTRUMENTS AND COMMERCIAL BANK LENDING

(1750-2019

This study examined the impact of monetary policy instruments on all commercial banks

operating in Nigeria in respect to lending from the time of independence to date. It reveals the

macroeconomic factors that influence the interest and inflation rate to aid the Nigerian

monetary authorities when manipulated properly to efficiently and effectively stimulate her

economic growth. The ex-post factor research design was used to which the desk survey

method of data collection was employed in conjunction with a few information taken,

existing in their raw form from their source. In the analysis, simple regression model was

used. Examining the effect of monetary policy instruments and commercial bank lending in

Nigeria, two variables were taken into consideration; the effects of monetary policy

instruments on commercial banks interest rate (CBINTR) and the effects of monetary policy

on inflation rate in the economy (CBINFLR). Base on the results from the hypotheses one

and two test done, the correlation coefficient(R) are 0.312 and 0.309 respectively. Test one

beta shows a positive correlation indicating that an increase in interest rate leads to increase

in aggregate savings. Beta for test two shows a negative correlation, indicating that an

increase in interest rate leads to a decrease in aggregate investment for the period of study.

Furthermore, the results also indicate that a monetary policy tightening of 1% will lead to a

fall of bank lending by 0.62% in the short-run. In addition, a 1% increase in bank size will

lead to a 0.81% rise in banks’ ability to lend.

This study is on agricultural financing and economic growth in Nigeria. The objective of this

study is to examine the impact of agricultural financing on economic growth in Nigeria for the

period of 1990 – 2018. A total of 28 years was used for this study. The researcher used

secondary data from Central bank of Nigeria (CBN) ANNUAL STATISTICAL BULLETIN

as the instrument for data collection. The data collected were presented in tables and analyzed

in the form of Time Series Data. Descriptive and Analytical survey research design was

adopted for this study. The researcher used ordinary least square (OLS) regression technique

to test hypothesis. In this study, the researcher rejects the null hypothesis (Ho), which states

that agricultural financing does not significantly impact on economic growth in Nigeria and

accept the alternate hypothesis (H1), which state that agricultural financing significantly impact

on economic growth in Nigeria. The study recommended the sustenance of government

policies that encourage consistent injection of funds into agriculture, it advocate that a sizeable

portion of commercial banks credit should be channeled to agricultural production and also the

interest rates should be reduced to make them affordable to Farmers.

The study examined the effect of business combination on banking sector performance in Nigeria. Purposive sampling technique was adopted as sampling procedure for selecting three Deposit Money Banks (UBA, Access Bank and FCMB) that successfully implemented Merger and Acquisition Strategy in the Financial Services Sector of the Nigeria economy. Secondary Data spanning a period of 20 years (1975-2015) were collected from the published annual financials of the banks. Descriptive statistics involving the test of differences in two means (pre and post mergers periods) and multivariate Analysis of variance (MANOVA) were employed in analysis of the data. Results shows that merger and acquisition strategy impacted positively on performance of the selected Deposit money Banks in Nigeria with improved performance in gross earnings (pre total value6.05, post total value, 405.29); profit after tax (PAT) values (Pre total values 2.1 post total values 65.91). Earnings Per Share(E.P.S) values (pre-total values 23.03, Post-total values, 141.12).More so the calculated ANOVA values (F-statistic) for test of hypothesis were 32.83, 17.31 and 29.14 as against 3.60 critical value meaning post-merger performance were better than the pre-merger period. It was concluded that merger and acquisition strategy is good for Nigerian Banks. It was recommended that Banks with poor corporate governance issues and weak Capital structure should embrace mergers and acquisition and that the CBN should strengthen it monitoring and oversight functions to enhance operational efficiency of Deposit money Banks in Nigeria.

LOAN RECOVERY STRATEGIES AND BANK PROFITABILITY IN NIGERIA

CREDIT RISK MANAGEMENT AND BANKING SECTOR PERFORMANCE IN NIGERIA.

This study investigated the impact of credit risk management on the performance of deposit money banks in Nigeria. Ex-post facto research design was adopted using dataset for the period 2015–2019 collated from the annual reports and financial statement of the selected deposit money banks. Three hypotheses were proposed and tested using ordinary least square regression model. Capital adequacy, Liquidity ratio & non-performing loan were used as proxy for credit risk management, while return on asset was used as proxy for performance. The finding reveals that capital adequacy & liquidity ratio had a positive impact on Return on Asset of Deposit money banks, while non performing loan had a negative impact on Return on Asset.

The study recommends amongs others that bank managers need to put more efforts to control the non-performing loan by critically evaluating borrowers’ ability to pay back. The regulator should strengthen its monitoring capacity in this regard.

OKEKE IFEOMA QUEENETH

OIL PRICE SHOCK AND ECONOMIC GROWTH IN NIGERIA

1988 – 2020

This study emprically examines Oil Price Shock and Economic Growth In Nigeria 1988 – 2020. The objectives of the study were to examine the relationship between exchange rate volatility and the economy growth in Nigeria, to examine the link between trade openness and the economy growth in Nigeria and to evaluate the impact of inflation rate on the and the economy growth in Nigeria. This study plays an important role in shaping, designing and implementing policies and at the same time would help the government to think about new and better ways of doing things and provides new understanding and discoveries that would benefit our society. The study adopted theory of refineries, simple finance model theory, theory of transaction cost and the price theory.The study uses predominantly secondary data sourced from the Central Bank of Nigeria Statistical Bulletin (2020) and World Bank Data (Online). The variables of concern are exchange rate volatility, trade openness, inflation rate and GDP in Nigeria. The research designs adopted in this study is the ex-post-facto and longitudinal research design, which is very applicable in the management and social sciences. The main statistical tool employed in this research is “Ordinary Least Square Technique” with the aid of E-Views 8.0 econometric computer software statistical tool which helps us to estimate the value of the dependent variables, when we are given the value of one or more independent variables. The study recommended that, Nigeria, like many countries, depends a lot on energy so when prices of oil increases, the usage of energy becomes costly. The country saves less as much would be needed to purchase the same amount of oil. Also, the country suffers from budget deficit and the Nigeria naira continues to depreciate against the US Dollar as a result of oil prices increase. The research recommends that the country should have enough reserves to store oil when the price is relatively low. Also, the country can hedge the price of oil that the country demands in order to reduce the risk associated with increase in oil price. The study also found that inflation does cause exchange rate depreciation. In this case, the study recommends that the existing inflation targeting should be extensive in order to help control the negative effect it has on exchange rate.

This study investigates the relationship between credit risk management and Banking sector performance by using the aforementioned method of Ordinary Least Square and multiple regression analysis from the period of 1990-2019. The key variables used in this Analysis are Conditional credit risk management is proxies value at risk, loan to deposit ratio, value at risk and liquidity ratio.

The findings from the regression analysis indicate a positive and significant relationship between liquidity ratio and performance while Loan-to- Deposit Ratio were negatively related to performance albeit, significantly respectively in the short-run. This suggests an effective implementation of the liquidity ratio benchmark as there is absolute conformity with theoretical postulations; also, its significance can be attributed to the efficient utilization of available liquidity in order to minimize the impact of increased benchmark on banks. While the positive short-run relationship between liquidity ratio and banks performance is in tandem with theoretical assertions, as higher quantum of liquid assets translates to better capacity to transact and increase banks performance, beside the relative impact of barren assets in the short-run is negligible.

The implications of these findings are factual. The loan-to-deposit ratio relationship with Performance implies that if the ratio is quite high, the bank may not have less sufficient liquidity to cover any unforeseen fund requirements leading to risk exposures.

This research work examined the effect of deposit money Bank Credit on Agriculture and Agricultural Output in Nigeria using Macroeconomic variables (agricultural loan (term loan) and bank overdraft). The broad objective of the study is to determine the impact of agricultural output in Nigeria. The specific objectives were: to determine the impact of bank overdraft on agricultural output in Nigeria and also to determine bank loan and agricultural output in Nigeria The methodology adopted for the study was auto regressive distributed lag model.  Data were sourced from CBN statistical bulletin between 1989 to 2019.  After the regression, the result shows that firstly: agricultural loan has a positive significant effect on agricultural output in Nigeria also bank overdraft has a positive and significant effect on agricultural output, Based on the findings above, the researcher made the following suggestions: These institutions should not restrict funding to the manufacturing and other sectors but should institute monitored grants to farmers and encourage them to apply for loans through the governments many schemes and collaborations.

Government should take deliberate effort through the existing deposit money bank institutions to increase funding in agriculture to increase food production in the country.

This study investigated the impact of foreign direct investment and industrial sector performance on economic growth in Nigeria using annual data from 1981 – 2019. The study explores dynamics amongst the variables within the Vector Error Correction Model (VECM). The Augmented Dickey Fuller (ADF) and Philip Perron’s (PP) test reveals that all variables contained a unit root and were integrated of order one I(1).  The Johansen Cointegration test result reveals the presence of a long-run relationship between FDI, Industrial Sector Output and RGDP. Furthermore, VECM estimate shows that FDI and industrial sector output had a slight significant positive impact on RGDP. The study concludes that Nigeria is yet to fully reap the benefit of FDI since its contribution to RGDP is still very low at the moment, whilst the contribution of the industrial sector in the country has not be vibrant enough to spur economic growth. The study therefore recommends among other things that social and economic infrastructure be improved as this will help lessen the burden of industrialist and eventually lower the cost of doing business and in turn attract FDI inflow into Nigeria.

STOCK MARKET OPERATIONS AND ECONOMIC GROWTH:

EVIDENCE FROM NIGERIA

This paper critically evaluates the impact of the Stock Market Operations (SMO) on economic

growth. The study is quasi-experimental adopting survey research design, while using secondary

data collected from the Nigerian stock exchange fact books and the central bank of Nigeria (CBN)

from statistical bulletins (various years) in explaining the influence of the NSE on economic

growth. The population of the study comprised of all businesses in Nigerian stock exchange as at

31st December, 2020 and the entire transactions was used as sample since the data from the listed

companies is fairly manageable. To determine the direct causal relationship between the various

variables of the study, the ordinary least square (OLS) technique was used for analysis purpose.

Multiple regression technique was used through the use of E-views version 8.0. The study revealed

that the all-share index (ASI), market capitalization and value of transaction have significant effect

on the gross domestic product (GDP) in Nigeria. The paper therefore recommends that investors

should be encouraged with necessary incentives so as to increase the volume and value of equities

being traded upon in the Nigeria’s stock exchange, thus widening the coast of investment

opportunities as well as increasing productivity.

ELECTRONIC BANKING AND PERFORMANCE OF DEPOSIT MONEY   BANKS IN NIGERIA

FINANCIAL LEVERAGE AND THE PERFORMANCE OF CEMENT MANUFACTURING COMPANIES IN NIGERIA

OKAFOR C. BONIFACE

HUMAN RESOURCE DEVELOPMENT AND DEPOSIT MONEY BAN KS PERFORMANCE IN YENAGOA, BAYELSA STATE

FEDERALLY COLLECTED REVENUE AND GOVERNMENT EXPENDITURE IN NIGERIA

32.

MONETARY POLICY AND ECONOMIC GROWTH IN NIGERIA (1999-2019)

The study examined the impact of monetary policy on economic growth in Nigeria for the period 1999-2019. Secondary data were collected from the Central Bank of Nigeria Statistical Bulletin. The study used Gross Domestic Product as proxy for economic growth and employed as the dependent variable; whereas, money supply, cash reserve ratio, interest rate and exchange rate respectively were used as the explanatory variables to measure monetary policy. The study employed ex-post facto research design. Hypotheses formulated were tested using Ordinary Least Square (OLS) techniques. Unit root test was conducted and all the estimating variables were stationary at first difference. They all however became stationary after second differencing. Empirical findings from this study indicate that Cash reserve ratio and Interest rate have significant influence on Gross Domestic Product while money supply was not significant. The coefficient of determination indicated that about 43% of the variations in gross domestic product can be explained by changes in monetary policy variables. The study concluded that too much borrowing from the government has contributed to the poor performance of Nigeria economy and as such slows the development of the economy due. The study recommended that the government should reduce the level of their external borrowing. The government should increase its external investment in other countries so as to boost it cash reserve. The government should reduce it interest rate on borrowing so as to give investors more opportunity to access fund from the bank.

CAPITAL MARKET OPERATIONS AND ECONOMIC GROWTH IN NIGERIA

This study examined the effect of interest rate on deposit money bank’s performance in Nigeria

from 2009-2019. Literature in the subject area was widely consulted. The study considered

deposit rate, lending rate, and treasury bill rate as the explanatory variables as well as adopted

the return on assets and earning per share of deposit money banks in Nigeria predictive and or

dependent variable. The Autoregressive Distributed Lag (ARDL) technique was employed to

model the behaviour of the variables, as the Augmented Dickey Fuller (ADF) and Phillip Perron

(PP) tests revealed that all variables were stationary at first difference. The Bounds Test to

cointegration confirms the existence of a long-run relationship, as the long and short-run

estimates suggests that deposit rate, lending rate and treasury bill rate have a positive effect on

deposit money banks return on assets. Furthermore, the study concludes that the disequilibrium

correction term from the ARDL analytical technique suggests that a tendency for output

targeting in the banking sector exist although at a slow speed. Our findings indicated that a

change in bank’s lending rate, deposit rate and treasury bill rate will trigger a corresponding

change in the return on assets of deposit money bank’s in Nigeria. These findings throw insights

to the fact that the enormous fluctuations in the banking sector has not been able to trigger an

improvement on its performance. Furthermore, the disequilibrium correction term (-0.53) from

the short-run dynamics of the ARDL model suggests that a tendency for output targeting in the

sector exist, although at a slow speed. We therefore recommend amongst others that Banks

should increase and properly monitor its various rates associated to its activities so as ensure it

variations are mitigated and relatively stable furthermore, the government and the monetary

authorities should formulate and implement policies that will encourage stability in the rates of

interest associated to banking facilities.

44.

This study examined the effect of financial ratio analysis on deposit money banks performance (profit) in Nigeria. The study adopts a descriptive research design using a cross-sectional panel data of five (5) years (2015 to 2019) to examine the influence of liquidity ratio (quick ratio), leverage ratio (debt to equity ratio), and time interest and earned ratio(TIE) on the  financial performance (ROA) of deposit money bank quoted on the Nigeria stock exchange. The study adopts panel data ordinary least square regression covariance analysis and regression  analysis. The finding of the study indicates insignificant positive  influence of quick ratio (QR) on financial performance (ROA) of deposit money bank quoted on the Nigeria stock exchange. The study therefore recommends that deposit money bank in Nigeria  should mobilize more deposit in order to enhance their lending capability and should formulate comprehensive and realistic financial plans to boost financial performance instead of relying on financial leverage and payment of dividend.

Generally, the study concludes that there is a significant between financial ratio analysis and profitability of deposit money bank in Nigeria. The board of directors can play an important role in improving financial ratio analysis and the profitability of the firm.