Apex Bank Research Articles

Effect of Bank Credit to the Private Sector on the Performance of Manufacturing Sector in Nigeria

The study investigated the effect of bank credit to the private sector on the performance of manufacturing sector in Nigeria, from 1981 – 2021. The objective of the study is to determine the effect of bank credit to the private sector (CPS) on the manufacturing output in Nigeria. To carry out the study, data were sourced from the Central Bank of Nigeria statistical bulletin and National Bureau of Statistics for various years. The dependent variable for the study was manufacturing output while the proxies for exploratory variable include; credit to the private sector (CPS); interest and exchange rates. For analysis and estimation, Autoregressive Distributed Lag (ARDL) method was adopted. Augmented Dicker Fuller (ADF) tests for stationarity showed that the variables were integrated at first level while ARDL Bound tests established a cointegration relationship of the variables. The result of the study revealed that credit to the private sector (CPS), interest rate; and exchange rate (independent variables) on the aggregate accounted for 93.9% of the total variations on manufacturing output (dependent variable) in Nigeria during the study period while 6.1% was due to stochastic error. The result further found out exchange rate had a positive coefficient value and a significant impact on manufacturing output in Nigeria during the period of study while other explanatory variables that include credit to the private sector and interest rate were statistically insignificant on manufacturing GDP during the study period. On the basis of the findings, the researcher recommends that Central bank of Nigeria as an apex bank should apart from using both direct and indirect controls should strengthen the use of moral suasion to encourage banks not to relent in granting the sector as the government endeavours to diversify the revenue sources of the economy. Secondly, government and Central Bank of Nigeria (the apex regulatory body of banks) should take bold steps and use all necessary economic and financial policies and regulations to make lending a single digit interest rate in Nigeria especially in a critical sector like agriculture.

Exchange Rate Dynamics and Agricultural Sector Performance Nexus: The Nigerian Experience

The main objective of the study is to investigate the impact of exchange rate dynamics on agricultural sector performance in Nigeria. The study employed time series data obtained from the Central Bank of Nigeria statistical bulletin, World Development Indicators and National Bureau of Statistics. Agricultural sector performance was disaggregated into the overall agricultural, crop, livestock and fishery output. Autoregressive Distributive Lag (ARDL) and Generalized Autoregressive Conditional heteroskedasticity (GARCH) estimation techniques were used to establish the long run relationship among the variables, and the responsiveness of overall agricultural output, crop, livestock and fishery production to changes in exchange rate. It was revealed that long run relationship exists among the variables in all the estimated models. The result of the Error Correction Mechanism (ECM) within the framework of the ARDL shows that exchange rate has significant impact on agricultural sector performance. The GARCH results revealed that the responsiveness of aggregate agricultural output, crop, livestock and fishery production to changes in exchange rate is negative and statistically significant. This study concludes that the government must consciously direct policy actions towards the agricultural sector to achieve its full potentials in order to place the Nigerian economy on the path of self- sufficiency in agricultural production. The study recommends that; the government should implement appropriate exchange rate policy that will ensure sufficient crop production for both domestic consumption and exports. The movement in the market determined exchange rate should be strictly monitored by the apex bank, in order to ensure that the deregulation in exchange rate is not counterproductive through distortionary prices on agricultural production.

MONEY MARKET INSTRUMENTS AND ECONOMIC GROWTH IN NIGERIA

<p>This paper examined the effect of money market instruments on economic growth in Nigeria from 1980 to 2020. To achieve the above objective, secondary data on real gross domestic product, treasury bills, commercial papers, bankers’ acceptances and monetary policy rate were sourced from the statistical bulletin of Nigeria’s apex bank. The Error Correction Mechanism (ECM) was used as the main analytical tool. The result revealed that all the instruments of money market – treasury bills, commercial papers and bankers’ acceptances have positive effect on economic growth in Nigeria during the period of study. This means that money market instruments – treasury bills, commercial papers and bankers acceptances enhanced economic growth in Nigeria during the period of study. However, only bankers’ acceptances significantly (meaningfully) influenced economic growth in Nigeria during the period of study. What this suggests is that though treasury bills and commercial papers have contributed to economic growth in Nigeria from 1980 to 2020, but their contribution is very low to trigger a meaningful increase in economic growth. At the same time, Monetary Policy Rate has negative and insignificant relationship with economic growth in Nigeria during the period considered in this study. The study concluded that money market instruments - treasury bills, commercial papers and bankers’ acceptances have impacted on economic growth in Nigeria. Therefore, recommended that government should put in place policies that will increase the operations of money market in Nigeria in order to make short-term securities and loans available for investment. Deposit money banks and other operators in the money market should be encouraged to possess sufficient approved securities for trading in the money market. Government should ensure easy and effective communication between the operators in the money market. At the same time, there should be a downward review of the cost of raising funds in the Nigerian money market so as to enhance competitiveness and improve the attractiveness of the market as one of the major sources of raising funds for investment which in turn will increase economic growth in Nigeria.</p><p><strong>JEL</strong>: E44; G14</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0214/a.php" alt="Hit counter" /></p>

Solid Mineral Production and Environmental Pollution

The study empirically diagnosed the effects solid minerals production had on environmental pollution in Nigeria. Covering a data period of 1986 to 2022, the study utilized mining and quarrying, metal ores and coal production as forms of solid mineral production while carbon (CO2) emission is employed as proxy for environmental pollution. Yearly time series information from the Nigeria’s Apex Bank’s statistical bulletin and the Development Indicators’ data base of the World Bank were gathered on the variables, and were examined by applying the analytical processes of the Autoregressive Distributive Lag econometric technique. The resultant outcomes of the study established that except mining and quarrying that was integrated at level, CO2 emission, metal ores and coal production were stable at first differencing. Particularly, the dynamic study confirmed that mining and quarrying, metal ores and coal production activities exerted positively substantial effects on carbon emission in Nigeria in the short run and long run. Premised on the results, it is concluded that solid mineral production substantially contributes to environmental pollution in Nigeria. The study recommended among others that government should ensure implementation of the mineral development plan in order to ensure environment friendly solid mineral production processes.

Public Health Expenditure and Infant Mortality Rate in Nigeria

This study investigated the effect of public health expenditure on infant mortality rate in Nigeria from 2002 to 2021. To achieve the above objective, this study utilized data on infant mortality rate, total government expenditure on health and migration of doctors and nurses trained in Nigeria - doctors and nurses trained in Nigeria but working in other countries from OECD Health Statistics, 2021, WHO, UNICEF, UNFPA, World Bank Group, the United Nations Population Division and Statistical Bulletin of Nigeria’s apex bank. The study employed an Autoregressive Distributed Lag (ARDL) Bounds testing procedure for data analyses. The results revealed that in the long run, total government expenditure on health, as well as migration of doctors and nurses trained in Nigeria - doctors and nurses trained in Nigeria but working in other countries have negative and insignificant relationship with infant mortality rate in Nigeria. However, in the short run, total government expenditure on health, as well as migration of doctors and nurses trained in Nigeria - doctors and nurses trained in Nigeria but working in other countries have positive and significant relationship with infant mortality rate in Nigeria. What this means is that though there has been expenditures on health sector in Nigeria by the government from 2002 to 2021, but the expenditures are low and couldn’t reduce infant mortality rate to a near-zero level in Nigeria. Also, in the short-term, the movement of doctors and nurses from Nigeria to others countries of the world, exacerbated infant mortality rate in Nigeria during the period of study. Based on the forgoing, it is recommended here that government should spend at least 15% of its annual budget on health sector as agreed by African leaders at Abuja in 2015. Government should also reduce the exodus of Nigerian doctors to other countries of the world. This, the government may be able to achieve by increasing budgetary allocation to healthcare sector, enhance doctors’ remuneration, ensure a better work environment with modern healthcare facilities together with general enhancements in basic life facilities including housing, health insurance, security, constant power supply and good roads.

Fiscal and Monetary Measures in Achieving Green Ecology: Evidence from Nigeria

Abstract Research background In light of the apparent density of the carbon output in the ecosystems of emerging regions, the United Nations has established a manual that puts an emphasis on carbon taxes as one of the quick fixes to environmental uncleanness in evolving states. Purpose The purpose of this research is to look into the impact of monetary and fiscal policy measures on reducing carbon emissions in the ecosystems of Nigeria. Research methodology The study employs the Autoregressive Distributed Lag (ARDL) co-integration technique or the bound co-integration technique to confirm the existence of long and short term nexus and the influence of selected financial instruments on pollutant reduction. The study spans 1991 to 2021 and relies on World Bank Development Indicators data on inflation and CO2 discharges in millions of metric tons. The statistics on tax earnings is derived from the Central Tax Authority in billions of national currency, but the figures on the state’s outlay and broad money supply are generated from the database of the Apex Bank in the country. Result According to the analysis, financial instruments are not yet being directed toward reducing air pollution and environmental devastation in the country. Further investigation reveals that tax revenue gathering is positively irrelevant, but CO2 has a strong positive effect on its reduction at lag 1, implying that a more eco-friendly financial strategy is required to combat environmental hazards in Nigeria. Novelty A Green financial system is a big issue of contention in the global public discussion about rising temperatures. Presently, there are few studies on the management of pollution using financial instruments in emerging regions. This study will serve as one of the leading investigations to align with the United Nations goal to restore our biodiversity through green fiscal and monetary policies. The study strongly suggests that the Nigerian government should pursue green fiscal and monetary mechanisms that include: issuance of green bonds; potential and cost-effective green payment plans, carbon taxation, and ecologically responsible national budgets and investment opportunities.

Impact Of Agricultural Loans by Deposit Money Banks on Agricultural Output In Nigeria

This study examines the impact of agricultural loan by deposit money bank credit on agricultural output in FCT Abuja, Nigeria. The study employed the Demand-following theory to explain the relationship between agricultural loan applicant access to deposit money bank credit and agricultural output. A sample of 295 (5 Agricultural loan desk officer from the five selected banks and 200 agricultural loan applicants) respondents were sampled using Multistage Cluster sampling technique. Data were analysed using descriptive statistic (mean Score) and logit regression analysis for inferential statistics. The results show that agricultural loan applicants' access to bank credit for deposits has a large direct impact on Nigerian agriculture. Based on the outcome of data analysis, the study recommends that the Apex bank should direct the deposit money banks to make credits available for agricultural loan applicants and upsurge the agricultural credits monetary base to farmers. This can be done by expanding and encouraging more farmers and also increasing the sum allotted to individual/cooperative units.

Corporate social responsibility and performance among rural banks in Ghana: the moderating role of governance structures

PurposeThis paper evaluates the effect of corporate social responsibility (CSR) on the performance of rural banks, as well as the moderating influence of effective governance on the surmised nexus.Design/methodology/approachAnnual data for 122 Ghanaian rural banks from ARB Apex Bank, World Development Indicator (WDI) and World Governance Indicator (WGI) for the period 2014–2020 were compiled for analysis. A two-stage system generalized method of moments (GMM) estimator was used in examining the relationships under study.FindingsThe findings suggest that CSR has a significant negative effect on return on assets (ROA), return on equity (ROE) and stability (Z-score). On the other hand, further results showed that CSR positively influences net interest margin (NIM). Again, the results suggest that government effectiveness exerts a positive moderating influence on the effect of CSR on performance from all four measurement criteria (ROA, ROE, NIM and Z-score) in the Ghanaian rural banking sector.Originality/valueThe study focuses on the rural banking sector in the Ghanaian economy, compared to related studies that examine the subject matter for commercial banks. The moderating influence of governance structures is also assessed on the relationships to guide policy on rural banking.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0116.

Cashless policy and Naira redesign of the Central Bank of Nigeria (CBN): a review

Compared to other nations of the world particularly developed countries, the Nigerian economy is dominated by the use of cash in carrying out transactions. This necessitated the formulation and implementation of cashless policy in 2012 and naira redesign in 2023 to conform to global best practices in currency management since the introduction of cashless systems where transactions are carried out without the use of cash is gaining global attention. This study was conducted to review some of the pros and cons of the cashless policy and naira redesign by the Central Bank of Nigeria. The empirical information gathered are from research works by some analysts across the country, press briefings by the Apex Bank, Government Ministries, Agencies and Departments (MDAs), Presidency, newspaper reviews, etc. Findings from the study showed that the policy was well conceived considering the various opportunities that come with it. Notably, the fact that it reduced the number of unbanked population to an extent, increased employment generation through the influx of mobile banking operators and Point of Sale (POS) agents. However, it was generally opined that the policy implementation timeline was ill-advised. Due to the attendant consequences of the policy which made life somewhat unbearable for most citizens during the period, it was recommended that there be synergy between the three tiers of government (Executive, Legislature and Judiciary) while prioritizing stakeholders’ engagement and public awareness.

MONETARY POLICY AND MISERY INDEX IN NIGERIA

<p>This study investigated the influence of monetary policy on the misery index in Nigeria. The data for the study were collected from the numerical bulletin of Nigeria’s apex bank spanning 1985 to 2019. The misery index was measured by the sum of unemployment, inflation, and lending rates minus the percentage change in Real Gross Domestic Product per capita. The Augmented Dickey-Fuller test and Autoregressive Distributed Lag - ARDL model were the main tools of analysis. The outcome of the unit root test indicated that the variables were stationary at order zero and one, which fulfilled the requirement to employ the ARDL Bounds testing method. The ARDL Bounds test revealed the presence of long-run association among the variables. The results revealed that monetary policy rate and exchange rate have a significant relationship with the misery index in Nigeria during the period of study. However, there is no significant relationship between the broad money supply and the misery index in Nigeria during the period of study. The study concluded that though monetary policy has the potential of reducing the misery index in Nigeria but it has not been well managed to reduce the misery index in Nigeria during the period of study. That is, monetary policy has not been effective in reducing the misery index in Nigeria during the period of study. Based on these findings, the study recommended that monetary authority should adopt the monetarists’ ‘monetary rule’ whereby the money supply is increased at a rate equal to the potential annual growth rate of the Gross Domestic Product. The monetary authority should also evaluate her interest rate policies to stimulate investment, increase output of goods and services, employment opportunities and reduce the poverty and misery index in the country. That is, make the financial sector to be strong to provide credit at lower interest rates which in turn will increase investment, output of goods and services, employment opportunities and reduce the poverty and misery index in Nigeria. The authority should maintain a managed floating exchange rate system to redress the problem of exchange rate variation in order to reduce the misery index in Nigeria.</p><p><strong>JEL:</strong> E42; E50; E52</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0021/a.php" alt="Hit counter" /></p>

Growth and Performance of Primary Cooperative Agricultural and Rural Development Banks in District Patiala

Cooperative banking or cooperative credit societies have a very important role to play in the Indian financial system and especially in the sphere of rural finance. The first LDB was started at Jhang in Punjab in 1920. The Punjab State Co-operative agricultural and rural development bank is an Apex Bank and Primary Co-operative agricultural and rural development banks are playing a key role in meeting credit requirement of rural population at Taluka level as its member Banks. There are 89 beside two others Primary Co-operative agricultural and rural development banks in Punjab as on 31st march 2013. The present study make an attempt to evaluate the growth and performance of primary co-operative agricultural and rural development banks in District Patiala on the basis of Share Capital, Loans and Advances, Borrowings, Owned Funds and profits/ losses, Non Performing Assets and membership by applying Statistical tools Mean, Standard Deviation, Coefficient of Variation and Compounded Annual Growth Rate over the period of eight years (2005-2006 to 2012-2013). The study revealed that although overall performance of the Bank during the study period is good, but advancement of loans and advancement be improved and heed must be given to profits because growth rate of net profit is less.

INDIRECT TAX AND INCLUSIVE GROWTH IN NIGERIA

<p>This study carefully investigated the effect of indirect tax on inclusive growth in Nigeria from 1994-2019. To achieve the above objective, secondary data on the human development index, value-added tax, as well as customs and excise duties were sourced from the statistical bulletin of Nigeria’s apex bank. Co-integration and ECM techniques were used as the main analytical tools. The regression result revealed that value-added tax has a positive and insignificant relationship with inclusive growth (human development index) in Nigeria during the period of study. At the same time, customs and excise duties have a negative and significant relationship with inclusive growth (human development index) in Nigeria during the studied period. Based on the findings, the study recommended that revenue from the various forms of indirect tax – value-added tax and customs and excise duties should be invested in social and community services - health, education, etc., economic services - agriculture, construction, transport and communication among others that will help the various sectors of the economy to function very well thereby improving the quality of life of people as measured by human development index. Government should boost indirect tax revenue. To achieve this, the government should identify and eradicate all administrative loopholes for indirect tax revenue to contribute meaningfully to the improvement of the quality of life of the inhabitants of Nigeria.</p><p> </p><p><strong>JEL</strong>: H20; H21; H71</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0026/a.php" alt="Hit counter" /></p>

Determinants of choice of credit source among clients of microfinance systems in the Upper West Region of Ghana

Microfinance institutions must understand what influences their clients’ choice of credit source in order to design and provide adequate and appropriate credit facilities to their clients. This paper explores the determinants of the choice of credit source among beneficiaries of microfinance systems in the Upper West Region of Ghana. An interview guide and a questionnaire were used to collect data. The study employed the multinomial probit model to analyse the data. The study revealed that gender, arable crop farming, household size, dependency ratio, access to microfinance information, repayment period, group size, interest rate, distance, loan amount, borrowing experience, household assets, and household members employed were the main determinants of the choice of credit source among beneficiaries. The study recommends that the Bank of Ghana, through the Apex Bank, standardise repayment periods and procedures such that banks compete on innovative methods of sourcing borrowers, which could result in efficiency in the lending industry.

Voluntary Disclosures and market value of deposit money banks in Nigeria

Companies all over the world are now realizing that the disclosure of only mandatory information does not give a complete measurement of firm’s value. Thus, the disclosure of mandatory and voluntary information together gives a balanced view of the companies’ performance and value over time. The main objective of this study was to examine the effect of voluntary disclosures on firms’ value taking samples from deposit money banks listed on the floor of the Nigeria Exchange Group from 2012-2021. The independent variable of the study being voluntary disclosure was proxied by social donations & gifting disclosure (SODD) and eemployee’s health and safety disclosure (EHSD) while the dependent variable being firms’ market value was proxied by Tobin’s Q. Furthermore, in line with related extant literature, the study controlled the model goodness of fit by employing the variable of return on equity (ROE). The research design adopted for this study was ex post facto, purposive sampling technique was employed and secondary source of data used was obtained from the studied companies’ annual report and Nigeria Exchange Group fact book. Dummy Least Square Variable regression was adopted to analyze and test the two hypotheses formulated for the study. The findings of the study revealed that social donation and gifting disclosure has a positive significant effect on the market value of deposit money banks while employee health and safety disclosure has an insignificant negative effect on market value of listed deposit money banks in Nigeria. Thus, based on these findings, it was concluded that social donations and gifting disclosure has a significant effect while employee health and safety disclosure has insignificant effect on market value of listed deposit money banks in Nigeria. value. It was therefore recommended among others that the apex bank should set sector specific benchmarks against which individual banks should compare their voluntary disclosure practices and make improvements when the need arises.

The Assessment of Leadership Styles and their Effect on organizational performance including use of English

The study assessed the main effects of leadership styles on organizational performance and use of English to communicate at the Apex Banks located in Kenema in Kenema District; Pendembu and Koindu in the Kailahun District. The study specifically sought to determine the impact of Laissez Fair, Transitional and Transformational leadership styles on organizational performance at the Apex Bank. A descriptive survey research based on perception of middle and senior managers in three community banks, namely Apex Banks in Kenema, Pendembu and Koindu. A well-structured research questionnaire was distributed completed and collected after one week. The completed questionnaires was checked for plausibility, integrity and completeness. Two independent variables were used namely, yes or no based on the objectives of the study. To discover the leadership styles that influence organizational performance, a distinction was clearly made between the Transformational Leadership factors and organizational performance rating which seemed to be very low. Thus, the study showed that the Laissez-Fair Leadership Style is high in organizational performance. Based on the findings, therefore, the study recommended that the Laissez-Fair Leadership Ltyle should be discarded by becoming more involved in guiding subordinates, public managers should formulate and implement effective reward and recognition systems. Also, managers should strive to become role models to their subordinates; inspire subordinates by providing meaningful challenges to work; stimulate subordinates’ efforts to become more innovative and creative; and pay greater attention to each individual’s need for achievement and growth.

A Study on Performance of the Karnataka State Cooperative Agriculture & Rural Development Bank Ltd., Bangalore in women development cell to promote entrepreneurship

The Karnataka State Co-operative Agriculture and Rural Development Bank Limited is the apex bank of all the primary co-operative agriculture and rural development banks in the state. All the PCARD Banks in the state are affiliated to it. The KSCARD Bank provides financial accommodation to the PCARD Banks for their lending operations. In order to quick sanction and disbursement of loans and supervision over the PCARD Banks the KSCARD Bank has opened district level branches. Bank has established Women Development Cell to promote entrepreneurship among women in 2005. The Bank is identifying women borrowers in the rural areas by assigning suitable projects to motivate their self-confidence to lead independent life. Progress made in financing women entrepreneurs women.

Dynamic Linkage(s) between Financial Innovation and Efficiency of Deposit Money Banks in Nigeria

The emergence of new technologies, changing customer expectations, and regulatory imperatives, among others, have driven the financial industry into an era where "digital innovations" thrive, culminating in the emergence and growth of innovative products such as agency banking, mobile/internet banking, mobile money, unstructured supplementary service data (USSD), just to name a few. There is increased customers' reliance on e-channels. This has further established the need for banks to engage in financial innovation for relevance, competitiveness, efficiency and growth. This study, therefore, examines the dynamic linkage(s) between financial innovation and the efficiency of deposit money banks (DMBs) in Nigeria. The population of the study comprises the 13 listed DMBs in Nigeria as of 31 December 2021, and these serve as the sample size. The period covered is 48 months -2016 and 2019. Data were collected from the bank's annual reports and Apex bank's statistical bulletin. Descriptive statistics, correlation and autoregressive distributed lag (ARDL) cointegration techniques were used for data analyses. The efficiency of DMBs was estimated using data envelopment analysis (DEA). Findings reveal that financial innovation has forward and backwards dynamic linkages with the efficiency of DMBs in Nigeria.

EFFECT OF COMMERCIAL BANKS’ CREDIT ALLOCATED TO AGRICULTURAL SECTOR ON ECONOMIC GROWTH IN NIGERIA

The empirical literatures on the effect of commercial banks’ credit allocated to agricultural sector on economic growth in Nigeria are mixed. The objective of this paper is to evaluate the effect of commercial banks’ credit allocated to agricultural sector on economic growth in Nigeria from 2014q1 to 2020q4 using error correction model (ECM). The results of the investigation revealed that commercial banks’ credit allocated to agricultural sector had a significant positive effect on economic growth in Nigeria. A 1% increase in commercial banks’ credit allocated to agricultural sector led to 23.37% increase in real GDP in Nigeria. The commercial banks’ credit allocated to other sectors did not spur economic growth in Nigeria. The agricultural sector is the backbone of Nigerian economy. The apex bank should ensure that the commercial banks are efficient in the allocation of resources. The Central Bank of Nigeria should direct the commercial banks to allocate the highest percentage of their credit to agricultural sector in order to achieve a sustainable agri-food system and economic growth in Nigeria.
 Keywords: Institutions and Economic Growth, Error Correction Model, Nigeria.
 JEL Classification: E51, O43, Q14, C24

Impact of naira redesign and monetary policy on Nigeria economy

Naira redesign is typically carried out to prevent naira counterfeiting and control the amount of money in circulation lowering inflation and is also a good monetary policy. The sole aim of this study is to examine the effects of monetary policy and the redesign of the Naira on the Nigerian economy. The secondary data used was taken from World Bank publications published between 1970 and 2021. While accounting for inflation, the regression model demonstrates a significant relationship between GDP and monetary policy. The model also demonstrates that the exchange rate and interest rate coefficients have a positive and significant impact on Nigeria's GDP, whereas the inflation rate coefficient has a negative and significant impact. The unit root test was also used, and the results demonstrate that all of the variables are ordered-one integrated. According to the Johansen cointegration analysis, the GDP, exchange rate, interest rate, and inflation have a long-term relationship. This demonstrates unequivocally that monetary policy, when properly applied by the federal government via the central bank of Nigeria, has a positive significant impact on the Nigerian economy. To prevent Naira notes counterfeiting, remove about 80% of Naira currency outside of commercial banks, and also to mitigate the inflation rate that has essentially driven Nigeria into recession, the government should strictly implement the Naira redesign decision from time to time through the Nigeria apex bank. This will positively affect the Nigerian economy.

An Investigation of Weak Form Efficiency in the Nigerian Capital Market

The study investigated if the Nigerian stock market (NSM) is weak and inefficient from1990 and 2019. To properly capture the studied periods, they were clustered, the data used to conduct this research is monthly All Share Index (ASI) source from the apex bank Bulletin, 2019. The specific objectives investigated include: (1) presence of normal distribution, (2) the randomness or stock market returns’ independence so as to forecast future market returns. Various tests conducted includes: descriptive statistics, Kolmogorov-Smirnov Test, runs test, unit root test, and simple regression. The results are as follows: (1) the NSM is highly risky;(2) The NSM returns is not normally distributed in the period between 1990 and 1997; 1998 and 2004; 2005 and 2015, and in the whole periods (1990 to 2019) though was normally distributed between 2011 and 2014 (3) the NSM seems to be inefficient from 1990 to 1997, 1998 to 2004, 2005 to 2015 and in the whole periods (1990 to 2019); (4) the market fashioned after the random walk from 2016 to 2019 suggesting that investor were able to forecast the market returns efficiently in these periods; and(5) previous stock market return has 15% positive relationship, and 0.23 0.23% predictive power. Thus, concludes that the NSM was only become in the weak and inefficient from 2016 up to 2019. As such, the study submits that information security fundamentals should be provided by issuers as at when due for security valuation at no cost.