Bank Of Nigeria Research Articles

Minimum capital threshold and credit management strategies amongst microfinance banks in Nigeria

Minimum capital threshold and credit management strategies amongst microfinance banks in Nigeria

Examining the Nexus between Insecurity and Financial Inclusion: Evidence of Mobile Banking in Nigeria

The research aimed to explore the impact of insecurity on mobile banking usage, assessing its effects on accessibility and affordability in Nigeria. Specifically focused on the Niger Delta region, the study sought to uncover insights into the relationship between insecurity and financial inclusion, particularly within the context of mobile banking services.The study employed a descriptive cross-sectional design, utilizing purposive sampling to collect data from 311 mobile banking operators and users in Nigeria. A specialized questionnaire assessed how insecurity impacts mobile banking services in terms of usage, accessibility, and affordability. Data analysis involved employing ordinary least square model to test research hypotheses.The findings of the study revealed a significant negative relationship between insecurity and the usage, accessibility, and affordability of mobile banking in the Niger Delta region of Nigeria. The results indicated that as insecurity increases, there is a likelihood of a decrease in the usage and accessibility of mobile banking services. The study also highlighted the impact of insecurity on financial inclusion, particularly in the form of kidnapping, hostage-taking, violence, and other social vices, which have hampered the quality of financial products and the number of financially included individuals in the region.The study identified several gaps in the existing literature on insecurity and financial inclusion in Nigeria. It noted that previous studies often focused solely on financial inclusion, neglecting the influence of insecurity. Additionally, many studies were primarily theoretical and qualitative in nature, and some were found to have methodological and analytical limitations. Furthermore, the research highlighted that this study was the first of its kind to be conducted in the South-south region of Nigeria, indicating an existing gap in the understanding of insecurity and financial inclusion in this specific area.

Effect of Corporate Governance on Banking System Stability in Nigeria

The study focused on the effect of corporate governance (CG) on banking system stability in Nigeria. The purpose of this study was to assess the effect of corporate governance on banking system stability. Data used for this study were secondary data collected from the audited annual report of 13 listed deposit money banks in Nigerian for the period of eight (8) years, the data was analyzed using STATA 14 and hypotheses were tested using random effect regression with respect to the Breusch and Pagan Lagrangian multiplier test and Hausman specification test. From the random effect regression analysis table, the results show that board size, ratio of male- female, board committee, the number of board meeting have contributed insignificantly to our model while the overall hypothesis also show an insignificant effect on CG and banks’ stability. The study recommends that since the variables used in this study have no significant effect on the banking system stability, emphasis should be shifted from these variables to other corporate governance variables. The study also suggested that More research on the study variable should be undertaken in Nigeria, this would throw more weight on the importance of corporate governance in ensuring banking system stability on a larger scale by incorporating all the deposit money banks in Nigeria.

Utilization of Islamic Financial Instruments for Poverty Reduction and Sustainable Households in Nigeria

Predominant poverty has affected many households in Nigeria and little focus of attention is given to the utilization of Islamic financial instruments in addressing the challenges of poverty and sustainable household in the country. The study attempts to fill the gap in the existing literature concerning the utilization of Islamic financial instruments for poverty reduction and sustainable households in the country. Qualitative research method with an emphasis on critical content analysis was utilized. Materials or different sources were used whereby journals, online peer review, and library sources were considered for in-depth analysis of Islamic financial instruments for poverty reduction and sustainable households in attaining vision 2030 in the country. Adequate implementations of various Islamic financial instruments that would create room for inclusion through which low-income families or families in poverty would experience sustainable standard of living through an efficient Islamic financial instrument for their empowerment. Hence, it will expand the scope and understanding of Islamic financial instruments in the context of Nigeria. In so doing, there would be basis for restructuring the economic conditions of households experiencing an abject poverty by ensuring that their living conditions are improved for better. An emphasis on the judicious utilization of Islamic financial instruments especially towards sustainable households in the country is an integral part of expanding the understanding about the efficiency of Islamic financial instruments in the society. Central bank of Nigeria has issued a drafted framework for application of Islamic financial instruments and operation of Islamic banking system and less attention is given to the application of Islamic financial instruments in the country. This paper therefore has tried to provide explanation for the application of utilizing Islamic financial instruments for poverty reduction and sustainable households in the country.

Institutional Quality, Monetary Policy and Banking System Stability in Nigeria

The study used a Generalized Method of Moments to examine the effect of six IQ indices (voice and accountability, rule of law, regulatory quality, government effectiveness, corruption control and political stability and absence of violence) and MP tools (monetary policy rate, loan-deposit ratio, lending rate, logarithm of broad money supply and banking system liquidity ratio) on the Z-Score, a proxy for banking system stability. The study found that, among the six MP indices, only corruption control index has a positive and significant effect on bank stability (coefficient = 0.245124, p = 0.0042). Also, out of five MP variables, only the loan-deposit ratio has a significantly positive effect on bank stability (coefficient = 0.0070482, p = 0.0072). The effect of the other IQ and MP indicators are not significant enough for inference purposes. We conclude that IQ affects banking system stability positively and significantly. We also found that MP affects the stability of the banking system positively and significantly. We recommend, among others, that authorities should continue to pursue zero corruption in institutions and that banks should be mandated to improve on the existing anti-corruption measures. Also the Central Bank of Nigeria should continue to maintain the range of loan-deposit ratio that has existed for many years. There is the need to re-appraise other IQ and MP variables with no significant positive effect on banking system stability in Nigeria.

Digitalisation, Banking Stability and Nigeria's Economic Growth Trajectory

The integration of digital technologies in banking operations has become a cornerstone of economic policy to promote financial stability and foster economic growth. This study examines the interplay between digitalisation and banking industry stability and economic growth in Nigeria. Annual time series data spanning 1981 to 2022, except for the digitalisation variable (web payment) which covers a shorter period, was collected from the Central Bank of Nigeria’s Statistical Bulletin. Using the Least Squares estimator to analyse the multiple regression model, the study found that digitalisation and financial deepening negatively impact economic growth due to digital prematurity and financial shallowness. However, bank stability and bank assets positively influence economic growth. The study concludes that although digitalisation and financial deepening have the potential to enhance growth, as seen in studies for other nations, Nigeria’s digital maturity level is too low to propel economic growth effectively. Nonetheless, stability in the Nigerian banking industry and bank assets contribute positively to the country’s economic growth trajectory. The study suggests that banks should invest more in digital transformation to foster economic growth. Additionally, banks should provide more credit to private sector and integrate the unbanked population into formal banking processes to enhance financial deepening, which is a key driver of growth in both aspiring and regional peer countries of Nigeria. Finally, banks should continue to build a strong asset base, not only for regulatory purposes but also to leverage large assets for valuation benefits, collateral for loans, risk exposure diversity, competitive advantage, and growth opportunities.

Suffering Together: Photos and Stories of Nsukka Residents During Nigeria's 2023 Currency Redesign Crisis

The Central Bank of Nigeria's (CBN) attempt to redesign the 200, 500, and 1000 naira notes by December 2022 led to a cash crunch and humanitarian crisis, exposing the federal government's shortsightedness and inherent weakness. Amidst the crisis that peaked between late January and February 2023, opportunities for social connections and shared experiences emerged. In this essay and visual archive, I explore the financial crisis phenomenon in Nsukka metropolis, Southeastern Nigeria, from a historical perspective, integrating personal insights, respondents' views, and archival sources. Analysis of observational notes, visual and textual data through the lens of Critical Theory reveals the importance of social connection and cultural ideology among Nsukka residents during a difficult time in Nigerian history. Photographic images of crowded bank scenes and remarks like "You are not the only person" evoke personal and public misery and frustration during the currency redesign crisis. The argument is that those in power can create complex situations like artificial scarcity of valuable commodities for questionable reasons, while the masses bear the brunt and enact and demonstrate servility in the process.

Oil Revenue, Institutional Quality and Economic Growth in Nigeria

This study examined the interaction of oil revenue and institutional quality on economic growth in Nigeria over the period of 1993 - 2022. The World Development Indicator (WDI) and the Central Bank of Nigeria (CBN) statistical bulletin were the sources of the annual time series data used in this study. Employing the Autoregressive Distributed Lag (ARDL) estimation technique, findings reveal that oil revenue impacts economic growth positively in the short-run but negatively in the long run, while institutional quality exhibits positive impact in both the short-run and long-run period. It was also discovered that the interaction of oil revenue and economic growth could enhance economic growth in Nigerian both in the short-run and long-run period. Access to clean fuels and technologies contributes positively to economic growth in both short-run and long-run period, while fiscal policy rating only has statistically significant positive association with economic growth in Nigeria over the observed period. This study therefore recommends the need to strengthen political institutions for effective utilization of oil revenue, and implementation of strategic diversification policies for the development of other sectors in the economy for economic prosperity in Nigeria.

Cloud accounting and the performance of deposit money banks in Nigeria

The current technological era of the 4th Industrial Revolution (4IR) and the realities of the COVID-19 pandemic brought about challenges and opportunities for DMBs; these challenges necessitated this study. The study examined empirically the relationship between cloud accounting and improved customer service delivery, which have effect in the financial performance of deposit money banks (DMBs). The study adopted cross-sectional survey research design. The structured Lickert scale questionnaire was raised from the objectives of the study and administered to the information technology and communication (ICT) unit of the sampled DMBs. The outcomes of the administered questionnaires were analyzed using the descriptive statistics and Spearman’s Rank Correlation Coefficient. Results show that cloud accounting has a significant positive relationship with financial performance of DMBs. In addition, Information Technology Trust has a positively significant moderating effect on the relationship between cloud accounting and financial performance DMBs. Also, the study revealed that Visualized Transaction Reporting and Self-service Transaction Reporting have significant positive relationship with productivity and profitability of DMBs. In conclusion, cloud accounting significantly moves in the same direction as financial performance. Hence, the study recommends that banks should do more investment in cloud accounting technologies for improve customer service delivery in their operations, which will in the end boost financial performance.

Effect of Liquidity and Profitability on Credit Risk Management of Listed Deposit Money Banks in Nigeria

Effect of Liquidity and Profitability on Credit Risk Management of Listed Deposit Money Banks in Nigeria

Deposit Money Bank Credit and Non-Oil Export in Nigeria

The non-oil sectors play a crucial role in driving in­dustrial transformation and generating foreign exchange for a nation. Therefore, the performance of this sector is influenced by the implementation of policies and programs, as well as the availability of credit facilities from deposit money banks (DMBs). This study examines the relationship between DMBs' credit and non-oil exports in Nigeria from 1986 to 2022. The data is analysed using the bounds test co-integration procedure of Autoregressive Distributed Lag (ARDL). The results indicate that there is a significant (Prob. < 0.05) positive relationship be­tween DMBs' credit and exchange rates. Furthermore, DMBs' lending rate and inflation rate demonstrate a significant nega­tive relationship, while gross fixed capital formation shows an inverse relationship with non-oil exports in Nigeria. The cau­sality test reveals no causality between bank credit to non-oil sectors, exchange rate, and the volume of non-oil exports in Ni­geria. However, there is a unidirectional causality between gross fixed capital formation, the lending rate of banks, the in­flation rate, and non-oil exports in Nigeria. Based on these find­ings, it is recommended that both the government and the monetary authorities make concerted efforts to stabilise the macroeconomic variables and promote growth-oriented programs meant to boost the aim of enhancing the production of locally produced goods in the non-oil sectors of Nigeria. Additionally, the Central Bank of Nigeria should consider re­ducing the bank rate, as this would directly impact other rates within the country.

Taxes and Health Infrastructural Development in Nigeria

This study investigated the effect of taxes on health infrastructural development in Nigeria. The objectives of the study among others were to determine the effect of company income tax on health infrastructural development in Nigeria, evaluate the effect of petroleum profit tax on health infrastructural development in Nigeria. Four research questions and four hypotheses were formulated as a guide for the study. This study adopted ex post facto research design and secondary data were collected from the National Bureau of Statistics, Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN) and Federal Ministry of Finance. The study was for forty-one (41) years from 1982 to 2022. This study utilized descriptive statistics, unit root test and ordinary least square regression method of data analysis with the aid of E-View 12. The findings of the study were that company income tax is statistically positive and significant on health infrastructural development in Nigeria, customs and excises duties is statistically positive and significant on health infrastructural development in Nigeria, petroleum profit tax is statistically negative and significant on health infrastructural development on health infrastructural development in Nigeria is statistically negative and insignificant, and value added tax is statistically negative and insignificant on health infrastructural development in Nigeria. Hence, study concluded that the federally collected taxes influence health infrastructural development in Nigeria. From 1982 – 2022. Consequently, the study suggested amongst others that, government should intensify efforts at developing the level of health infrastructure in the country through optimal tax revenue mobilization because, the study affirmed that company income tax and customs and excise duties positively and significantly impact on health infrastructural development in Nigeria.

Taxes and Road Infrastructural Development in Nigeria

This study examined the taxes and road infrastructural development in Nigeria. The specific objectives of the study among others were to determine the relationship between of company income tax on road infrastructural development in Nigeria, ascertain the relationship between petroleum profit tax on road infrastructural development in Nigeria. Four research questions and four hypotheses were formulated as a guide for the study. This study adopted ex post facto research design. The population of the study was conducted on Federal Republic of Nigeria under the National Bureau of Statistics, Federal Inland Revenue Services, Central Bank of Nigeria (CBN) and Federal Ministry of Finance. The study period covered was forty-one (41) years spanning from 1982 to 2022. This study utilized Descriptive statistic, Unit Root Test and Ordinary Least Square Regression method with the aid of E-View 12. The findings of the study showed a positive and significant relationship between company income tax on road infrastructure in Nigeria; customs and excises duties positively and significantly affects road infrastructure in Nigeria; petroleum profit tax negatively and insignificantly affects road infrastructure in Nigeria and finally, value added tax negatively and insignificantly influence road infrastructure in Nigeria is statistically negative and insignificant. The study concluded that taxes such as company income tax, custom and excise duties affects road infrastructural development in Nigeria for the period spanning from 1982 – 2022. Therefore, the study suggested amongst other that, government should intensify efforts at developing the level of infrastructure in the country through tax payers’ revenue because, this study affirmed that company income tax and customs and excise duties positively and significantly affects road infrastructure in Nigeria

Green banking and profitability of banks in Nigeria: Opinions and attitudes

There is no doubt that global attention has shifted to environmental protection given the series of devastations that have occurred and the consequences of such devastations, now manifesting as global warming. People believe that the involvement of banks in this crusade will facilitate the realization of the goals of environmental protection. This study investigated respondents’ perceptions of green banking and the profitability of banks in Nigeria to ascertain how full implementation of green banking will enhance the profitability of banks in Nigeria. The study employed a cross-sectional survey of respondents from First Bank and Access Bank employees in Nigeria. The study performed structural equation modelling to analyse the research data. The results show that green banking will have a significant positive influence on the profitability of banks in Nigeria and that goodwill will mediate the relationship between green banking and profitability by enhancing the image of banks committed to green banking and thus making them attractive. The study makes contributions to practice and to theory.

Effect of audit quality on earnings management of listed deposit money banks in Nigeria

Effect of audit quality on earnings management of listed deposit money banks in Nigeria

THE OIL PALM (Elaeis guineensis) ENTERPRISE FINANCING UNDER AGRICULTURAL CREDIT GUARANTEE SCHEME IN NIGERIA

The limited engagement of financial institutions in providing loans and advances to oil palm enterprises under the Agricultural Credit Guarantee Scheme (ACGS) has impeded the sustainable development of these enterprises. This study examined the trends in ACGS loan guarantees, repayments, and outreach to oil palm beneficiaries in Nigeria from 1981 to 2022. The analysis utilized time series data sourced from the Central Bank of Nigeria's statistical bulletin. Both exponential and quadratic trend equations were estimated using the Ordinary Least Squares (OLS) method. The findings indicated a positive exponential growth rate for the value of guaranteed loans (25.05%), repaid loans (15.20%), and the number of beneficiaries (7.37%) over the specified period. The quadratic trend equations suggested stagnation in growth rates over time for both guaranteed loans and repayments by beneficiaries. Furthermore, the quadratic analysis indicated a significant deceleration in growth over a double time period, suggesting that the growth occurred at a diminishing rate. It is recommended that the volume of ACGS loans allocated to the oil palm sector be increased in accordance with the prevailing inflation rate, and that the selection of beneficiaries be refined to ensure that only genuine applicants are identified.

AN APPRAISAL OF THE REGULATION OF DIGITAL BANKS IN NIGERIA

The advent of the computer age saw industries across the world hopping on the Information and Communications Technology train in a bid to survive. The financial industry is no exception, having since incorporated Information and Communications Technology in its operations. Traditional financial institutions like banks now utilize technology to render financial services to their customers. Aside the traditional banks, a new class of banks called digital banks has emerged in recent times in Nigeria, examples include Kuda, Aladdin, and VBank. These banks operate without a physical banking hall and render their services digitally. Although digital banks were not originally included in Nigerian laws, these banks now have the backing of the principal legislation regulating banks in Nigeria: the Banks and Other Financial Institutions Act 2020, hence solidifying their place in the Nigerian financial sector. With the aim of evaluating the effectiveness of the extant legal framework for digital banks in Nigeria, this paper explored the evolution of banking in Nigeria, the emergence of digital banks, the pros and cons of such banks as well as the existing legal framework for digital banks in Nigeria. The research methodology adopted is the doctrinal research methodology and primary sources like statutes, guidelines and case laws as well as secondary sources like textbooks and journals were utilized. The paper found that the existing legal framework for digital banks in Nigeria is fragmented and does not sufficiently address the uniqueness of these banks. It recommended the development of a comprehensive legal framework for digital banks in Nigeria, which incorporates a licensing regime solely for digital banks.

Fraud and Performance of Listed Deposit Money Banks in Nigeria: Exploring the Combined Effects of Fraud Triangle and Fraud Diamond Theories

The rate of increase in fraud cases and the attendant decline in performance of the Deposit Money Banks listed in Nigeria demand urgent examination into the phenomena. In order to appreciate the probable nexus between fraud and performance of Deposit Money Bank in Nigeria, this scholarly work demonstrated the influence of fraud on the performance Deposit Money Bank in Nigeria. In doing this, the study used correlational and expo facto research design, utilizing secondary data pooled out from the Nigerian Deposit Insurance Commission (NDIC) and published financial reporting of the DMBs. The study targeted all the 29 DMBs (comprising of, 5 Merchant Banks and 2 Non-Interest Banks and 22 Commercial Banks) as at 2019 as published by NDIC for ten years period of (2010-2019). Multiple regression methods was deployed to calculate approximately the model of the work. Results from the study demonstrated that fraud triangle and diamond theories (measured by expected loss from loss from fraud, number of fraud cases and staff participation in deception scheme) have negative and significant effect on performance (measured by ROA) of DMBs in Nigeria. Flowing from the result, this scholarly work has suggested that DMBs have a duty to put in place effective and efficient internal control procedures and establishment of workable fraud unit or department that is saddled with the responsibility of detecting and scrutinizing operational activities that may possibly be prone to fraud. In this way, bank assets would be safe-guarded and, consequently enhanced performance.

Human Resource Costs and Corporate Financial Performance of Listed Deposit Money Banks in Nigeria

Human Resource Costs and Corporate Financial Performance of Listed Deposit Money Banks in Nigeria

The Link between Corporate Board and Financial Performance: Evidence From Money Deposit Banks in Nigeria

The Link between Corporate Board and Financial Performance: Evidence From Money Deposit Banks in Nigeria