Bank Of Nigeria Research Articles

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

Merger, Acquisitions and Firm Value among Deposit Money Banks in Nigeria: A review of literature

Merger, Acquisitions and Firm Value among Deposit Money Banks in Nigeria: A review of literature

The Effect of Electronic Banking on the Performance of Deposit Money Banks Listed in Nigeria

Despite the relatively recent arrival of electronic commerce in Nigeria, its popularity is snowballing. Over the years, it has steadily risen, advancing rapidly throughout the spectrum of financial intermediation and markets. Having a high-speed telecommunications network or a computerized information system has undoubtedly allowed banks to deliver new products and services by using new channels. In this study, we aimed to determine whether electronic banking affects the performance of Nigeria’s deposit money banks. We examined the audited financial statements of 10 deposit money banks listed on the Nigerian Stock Exchange in 2011–2020 to extract secondary data. As well as journals, textbooks, and the CBN Bulletin, other public resources were used for the study. The findings revealed that e-banking had a positive and significant effect on the performance of listed Deposit Money Banks in Nigeria, as measured by Automated Teller Machines (ATMs), Point of Sales (POS), Internet Banking (IB), and Mobile Banking (MB), as measured by return on equity (ROE) and return on assets (ROA) (ROA). On the other hand, e-banking does not significantly affect Earnings per Share (EPS). The study recommends that for effectiveness in electronic banking, there should be rigorous campaigns and awareness for clients to patronize e-facilities. Banks should further invest in Information technology given the disruptive trend of emerging financial solutions in Fintech.

Liquidity and Profitability of Listed Deposit Money Banks in Nigeria

Liquidity and Profitability of Listed Deposit Money Banks in Nigeria

Contributions of Tax Revenue and Government Expenditure to Sustainable Development Goals in Nigeria

This study empirically examined the effect of tax revenue and government expenditure on sustainable development goals in Nigeria. The ex-post facto research design was adopted using time series data sourced from the Central Bank of Nigeria's statistical bulletin and World Bank database. The study covered 22 years from 2001 to 2021. Descriptive and inferential statistical tools were used in analyzing the data after carrying out unit root tests on the stationarity of the series to avoid obtaining invalid and unauthentic regression estimates. The Vector Error Correction Model (VECM) was applied in analyzing the relationship. The study found that Tax Revenue (TR) exhibited a negative and significant effect on sustainable development goals, while Government expenditure (GEXP) indicated a positive and significant effect on Sustainable Development Goals (SDGIS) in the long run. Furthermore, the study revealed that in the short-run Tax Revenue (TR) and Government expenditure (GEXP) both had a negative effect on the SDGIS in Nigeria. There is need for government to develop strategies to broaden the tax base and bring more entities into the tax net while ensuring equitable contribution. They should also align budget allocations with SDG priorities to ensure tax revenue is directed sustainable development projects. Hence the study recommended that government should channel its resources towards closing up infrastructural deficits while increasing productive units that would enhance the economy and ensure optimal utilization of tax revenue towards sustainable developments in Nigeria especially in the achievement of the Sustainable development goals.

Fiscal policy and inclusive growth in Nigeria

This study investigated the effect of fiscal policy on inclusive growth in Nigeria from 1985-2022. Secondary data on the human development index, the ratio of total tax revenue to GDP, total government expenditure, inequality, and government expenditure on infrastructure and education were sourced from the Central Bank of Nigeria (CBN) and the United Nations Development Programme (UNDP). The Autoregressive Distributed Lag (ARDL) technique was employed as the main analytical tool. The ARDL Bounds test showed that in the long run, government expenditure on infrastructure, and education, has a positive and insignificant relationship with inclusive growth (human development index) in Nigeria. Also, total government expenditure and the ratio of total tax revenue to GDP have a negative and insignificant relationship with inclusive growth (human development index) in Nigeria. Interestingly, inequality has a negative and significant relationship with inclusive growth (human development index) in Nigeria. In the short run, the ratio of total tax revenue to GDP and government expenditure on infrastructure has a negative and significant relationship with inclusive growth (human development index) in Nigeria. At the same time, government expenditure on education, total government expenditure, and inequality has a positive and significant relationship with inclusive growth (human development index) in Nigeria. These results highlight the vital role that responsible fiscal policy management plays in promoting sustainable development and inclusive growth. The study recommended a need to augment tax revenue, enhance capital investment, and address income inequality to bolster inclusive growth efforts in the country further.

Analysis of Income Potentials of Blocks Making Industry in Zamfara State, Nigeria

The study is an analysis of the income potentials of blocks making industry in Zamfara state. The research employs the used primary sources of data, whereby the data was obtained from the responses of 100 blocks making industry entrepreneurs in the study area, who were selected with the aid of simple random sampling method. Descriptive and inferential statistics were employed for data analysis thus, multiple regression analysis using OLS model. The findings revealed that, blocks industry has potentials to generate income in the study area in other words, blocks making industry in Zamfara state has is an important tool for in terms of income generation, the study recommends among others that, in addition to the existing policy by government in supporting SMEs to get access to finance, more windows should be open by the Central bank of Nigeria, Bank of Industry and Commercial Banks to enable SMEs have more access to finance.

Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria

The untimely adoption of modern business practice through technological innovation has hindered service quality, customers’ satisfaction and the general growth of Micro finance banks in Nigeria. The study examined the effect of service innovation which consist of New Service Concept, New Service Process, and New Technology on customer satisfaction of selected micro finance banks in Ogun state Nigeria. The study adopted a cross- sectional survey research design with the aid of structured questionnaire which enabled the researcher to obtain firsthand information from the respondents. The population for this study is the customers of Micro Finance banks (MBF) in Ogun State in which (17) microfinance banks customers were conveniently selected for the survey. Due to the infinite nature of the population (MFBs Bank Customers) the study adopted a sample determination model by Cochran (1977) which is mainly used for an infinite population of this nature to arrive at the sample size of (384) respondents. The data collected was analysed using partial least square structural equation modeling (PLS-SEM 4.0). The findings of the study revealed that all the hypotheses (H1, H2, H3, and H4) are accepted, indicating that each of the independent variable dimensions has significant effect on the dependent variable. That’s new service concept has significant effect on customers satisfaction of MFBs. The study concluded that the three dimensions of service innovation, namely New Service Concept, New Service Process, and New Technology, had a positive and substantial influence on customer satisfaction among the selected micro finance banks in Nigeria. Therefore, the study recommended that the management of microfinance banks in Ogun state should constantly adopt service innovation dimensions to outperform competitors in order to increase their customer satisfactions.

Moderating Impact of Managerial Ownership on Intellectual Capital and Value of Listed Deposit Money Banks in Nigeria

This study examined the moderating impact of managerial ownership on intellectual capital and firm’s value of listed deposit money banks in Nigeria. Ex-post facto research design was adopted to define the structure and strategy of the study, while the target population was all the listed deposit money banks in Nigeria as at 31st December, 2022 which were 14 in number. Out of the 14 banks 11 were purposively chosen based on their complete annual reports and accounts over the period of the study (2012-2022). Panel regression analysis was adopted to analyze the collected data. Thus, the study found a direct positive impact of structural capital efficiency, and innovation capital efficiency on the value of the bank. However, human capital efficiency was found to have negative but significant impact on the value of the banks, while capital employed efficiency revealed positive but insignificant direct impact on the value of the selected banks. Furthermore, managerial ownership was found to have positive and significant moderating impact on structural capital efficiency, human capital efficiency and firms’ value, while managerial ownership revealed negative and insignificant moderating impact on innovation capital efficiency and the value of the banks. Therefore, the study concluded that managerial ownership have positive and significant moderating impact on intellectual capital and firms’ value of listed deposit money banks in Nigeria. This signifies that, increase in the number of equity share owns by managers and directors would improve banks investment in intellectual capital, hence enhance banks value. Therefore, this study recommends that; in order for listed deposit money banks in Nigeria to maximize firms’ value through intellectual capital efficiency, the banks should allow managers to acquire equity shares in the banks.

Empowering bank employees for improved job performance: An evaluation of emerging strategies

Orientation: Employee empowerment has received widespread attention in both academic and business literature. The idea is that an empowered employee is a productive worker; a productive worker is, in turn, a competitive asset to the organisation. However, the banking industry in many developing nations still falls short in employee empowerment.Research purpose: This study aims to analyse the robust strategies for empowering bank workers and their effects on job performance.Motivation for the study: The study was motivated by the fact that extant studies seem inconsistent in identifying the precise empowerment strategies capable of igniting better work performance in the banking industry.Research approach/design and method: The study adopted a cross-sectional survey design targeting 316 middle-level bank managers in the five biggest banks in Nigeria. Data were collected using the structured questionnaire and processed using the structural equation modelling in SmartPLS software.Main findings: Results showed that employee empowerment variables (employee input acknowledgment, mutual decision-making, joint resolution implementation, and sense of belonging climate) were positively related to improved job performance.Practical/managerial implications: The study has shown that improved employee performance can be achieved when the adopted empowerment strategy is a mix of employee input acknowledgment, mutual decision-making, joint resolution implementation, and a sense of belonging climate.Contribution/value-add: The study has addressed the existing gaps in the banking sector employee empowerment by highlighting four new strategies.

Reducing Financial Exclusion and Enhancing Contribution of Non-Interest (Islamic) Banks in Nigeria

Reducing Financial Exclusion and Enhancing Contribution of Non-Interest (Islamic) Banks in Nigeria

Impacts of Corporate Structural Changes on Performance of Banks and Non-Bank Financial Institutions in Nigeria, 2005-2019

This study investigated the impacts of corporate structural changes on performance of banks and non-bank financial institutions in Nigeria covering a period of 15 years (2005-2019). The capital structural change was captured with absolute change in debt equity ratio, total debt ratio, long-term debt ratio short-term debt ratio while the performance was measured with dividend per share and gross earnings. The study adopted ex-post facto research design which provides empirical solutions to research problems by using already existing data. The secondary data was extracted from the published financial report of the sampled firms. Population of the study included all the 14 quoted Deposit Money Banks (DMBs) and 25 Insurance Companies in operation in Nigeria. The sample size of the study is delimited to 10 quoted DMBs and 10 Insurance firms in Nigeria and this was achieved through random sampling technique. The collected data were analyzed using quantitative econometric techniques such as descriptive analysis, correlation analysis and panel regression analysis. It was discovered that when the model was controlled with firm size and asset tangibility, absolute changes in total debt ratio, absolute changes in long term debt ratio and absolute changes in short term debt ratio have a positive but insignificant effect on gross earnings of deposit money banks and insurance companies in Nigeria. Also, it was disclosed that there is a significant effect of absolute changes in the components of capital structure on dividend per share.

Relationship Marketing and Customers’ Satisfaction of Selected Deposit Money Banks in Nigeria

This study examined the influence of relationship marketing on customer satisfaction among selected deposit money banks in Nigeria. The research design used was a survey. The population of the study consisted of all customers of the top five performing deposit money banks from six states in southwest Nigeria. A stratified random sampling technique was employed to determine the sample size. Cochran's formula was utilized to determine the overall sample size, resulting in a total of three hundred and eighty-four (384) participants. Data were obtained through self-administered questionnaire of three hundred and eighty-four (384), while three hundred and twenty-one (321) copies of questionnaire were adequately filled, returned and used for the research. Inferential statistics used was linear regression and Statistic Package for Social Science (SPSS) version 23 was used for data analysis. The result revealed that commitment is 0.732 with t = 6.948 and (p = 0.000 < 0.05); empathy is 0.696 with t = 15.901 and (p = 0.000 < 0.05. The study concluded that relationship marketing variables have a positive and significant influence on customer satisfaction. The study recommended that bank employees should improve the level of commitment among their customers and treat them with outstanding service in order to boost customer’s satisfaction. Also, bank staff members should improve the working atmosphere for the customers’ conveniences; attend quickly to customers whenever issues arise with their account, and show empathetic ability in order to satisfy the customers.

The democratization of digital currency in Nigeria: A sentiment analysis of eNaira app usability

Globally, Central Bank Digital Currency (CBDC) is receiving a lot of attention in digital currency deliberations since it is at the top of the agenda of almost every central bank today. Although there is a growing body of literature on CBDCs, user perspectives on their usage and adoption in the literature are very sparse. This study set out to analyze factors impacting the actual usage of CBDC through sentiment analysis of eNaira, the first CBDC to be issued in Africa by the Central Bank of Nigeria (CBN). The research relies on the 214 data points extracted from eNaira App users’ comments from Google Play and App Store from 2020 to 2021. It framed its analysis based on theories of moral sentiments and appraisal theory of emotion. This research shows that eNaira users faced multiple challenges; however, CBN's responses to these challenges are minimal. The results highlighted the need to include public sentiments in policy formulation; the Nigerian government's ban on cryptocurrency trading negatively impacted the uptake of the eNaira due to mistrust. This research study contributes theoretically to appraisal theory and the theory of moral sentiment by explaining the evolution and public sentiments towards adopting the novel eNaira in Nigeria.