DSpace Collection: These are publications by academic staff and postgraduate students of Banking and Finance programme

External borrowing and Nigeria's economic growth (1981-2014)

2017-01-01T00:00:00Z

Title: External borrowing and Nigeria's economic growth (1981-2014) Authors: Shafe, F.A. Abstract: The study examined the impact of external borrowing on Nigeria's economic growth within a span of 1981-2014. The objectives of this work were specified to determine the relationship between external borrowing and economic growth and examine the impact of external borrowing on economic growth in Nigeria. Secondary data for the period 1981- 2014 was used which was collected form CBN statistical bulletin and the Debt Management Office (DMO) quarterly report. This study was guided by the dual gap theory. Regression analysis, Augmented Dickey-fuller (ADF), Johansen Co-integration and Vector Error Correction Mechanism were employed in the cause of this study. Also a test for causality between external borrowing and economic growth using Granger Causality test was carried out at 5% level of significance. The Augmented Dickey-fuller test (ADF)showed that the variable were stationary and reliable for forecast. The choice of OLS is most appropriate for the study in terms of goodness of fit and significance of regression coefficients. The study found that there is significant long run relationship between external borrowing and economic growth in Nigeria for the period under study at 5 per cent level of significance. Granger causality tests showed that there is a bidirectional causal relationship between external borrowing and economic growth in Nigeria. It was concluded that external borrowing negatively affects economic growth and this relationship is statistically insignificant. It indicates that external borrowing amount slows down economic growth. The reason behind this is that as the debt servicing of external borrowing has to be paid in foreign currency and the value of Naira has been increasingly weal compared to what it was obtained from the creditor countries currency. This indicates that there is need of effective external borrowing management and the borrowed fund should be utilized in such a manner that it adds value to the Nigeria's economy. In view of this, in order to experience higher rates of economic growth, it is recommended that the government of Nigeria strengthens restriction on increasing budget deficits.

Effects of foreign direct investment in telecommunications sector on economic growth in Nigeria (1985-2015)

2017-01-01T00:00:00Z

Title: Effects of foreign direct investment in telecommunications sector on economic growth in Nigeria (1985-2015) Authors: Ajala, F.A. Abstract: The study examined the Effects of Foreign Direct Investment in Telecommunications Sector on Economic Growth in Nigeria. It also examined the trends of FDI inflow to the telecom sector in Nigeria, evaluate the trends of the overall share of telecom sector in Nigeria Gross Domestic Product, the differences between FDI in the telecom sector in Nigeria before and within Global System for Mobile communication period, determine the impact of FDI inflow in telecom sector on economic growth and the relationship between the share of telecom sector in total Gross Domestic Product. Data was obtained from Central Bank Statistical Bulletin and National Bureau of Statistics for the period of 1985-2015.Time series analysis was done on the data collected with the aid of E-views version 9.0. Test of hypotheses were done with Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) was used to determine whether or not the data was stationary. The Johansen Co-integration test was then used to test for co-integration. Additionally, paired T-Test was used to analyse the differences between Foreign Direct Investment in Nigeria between 1985 to 1999 (pre –GSM era) and 2001 to 2015 (GSM era). Based on the findings of this study, the empirical results of Foreign Direct Investment in telecommunication sector has no significant effect on contribution of telecom to GDP in Nigeria with co-efficient of 0.15988; P- 0-043; F-statistics 7.011, Adjusted R-square value 0.720 and Durbin Watson 2.189 respectively. The relationship between contributions of the telecom sector to economic growth was positive and insignificant with the co-efficient of GDPtel (0.0327; 0.071). The study has helped to achieve the objective that introduction of Foreign Direct Investment in telecommunication sector revealed positive result of 0.14687 and statistically insignificant at 5%.

Effect of financial risk management on the performance of deposit money banks in Lagos State

2018-01-01T00:00:00Z

Title: Effect of financial risk management on the performance of deposit money banks in Lagos State Authors: Ajetunmobi, T. O. Abstract: This study examined the effect of Risk Management on Deposit Money Bank in Lagos State. By evaluating the different types of Risks and how it affect banks performance and the relationship that exist between risk and financial performance in the Deposit Money Banks (DMBs) in Nigeria. The study employed both primary and secondary source of data collection. The primary data was obtained through the use of pre-tested structured questionnaire distributed to 300 respondents while the secondary data was extracted from the audited financial statement of the 10 sampled Deposit Money Banks in Lagos State over a period of 6 years (2012-2017). The data collected were analysed using Descriptive Statistic such as Pearson product-moment coefficient correlation, Hausman test, and linear regression analysis technique. The result revealed that credit risk is statistically significant at (r=0.038)(p<0.01%) on Deposit Money Banks (DMB’s) it also shows that liquidity and Market risk are not statistically significant at (r=0.11)(p>0.01%). It also showed the distinctive core and non-core risk that affect the performance of DMB’s in Lagos State. Furthermore the analysis of these responses from the questionnaire observed that all the risk specified in the questionnaire were identified as core risk and they affect the performance of DMB’s in Lagos State. The regression analysis carried out showed that risk management has a significant effect on financial performance proxied by Return on Assets (ROA) and a non-significant effect on Return on Equity (ROE). The study concluded that all risk are core and important to the performance of DMB’s in Lagos State. Recommendations where further made that risk management in DMB’s should be merged with the enterprise Risk Management (ERM), so there can be a joint coordination of all the risk affecting Deposit Money Bank in Lagos State. It was therefore concluded that financial risk management should be one of the vital concerns in the banking industry in order to achieve effective productivity and also improve financial performance.