Performance In Nigeria Research Articles

Internal Control and Firms’ Financial Performance in Nigeria: A Study of Selected Manufacturing Firms

This study was carried out for the purpose of understanding the impact of internal control on firm performance. This research wanted to prove that internal control played an important role on the performance of ten selected manufacturing firm in Nigeria. Internal control factors like board size, audit committee size, and board independence were investigated to see how they impact performance. Secondary data gotten from the ten manufacturing firms’ financial statement were analyzed using the panel data regression analysis. Although the fixed effect and the random effect regression were carried out, the Hausman test pointed to the fixed effect regression as significant, hence it was focused on. Findings from the fixed effect revealed that board size, audit committee size, and board independence were all significant in impacting firm performance measured by equity returns. The study therefore recommended among others that the Board of directors should be more diverse in the composition of board members as this would boost their independence.

Determinants of Value-Added Tax and Economic Performance in Nigeria

Determinants of Value-Added Tax and Economic Performance in Nigeria

Valuation of Project Managers to Enhance Project Performance in Nigeria’s Construction Industry

Construction project management is critical to the success of construction projects, with the performance of project managers (PMRs) playing a central role. Despite its importance, previous studies have highlighted the poor performance of construction organizations in Nigeria, such as project delays and cost overruns and the need for proper project management practices. However, the specific performance of PMRs in the Nigerian construction industry (NCI) has not been extensively studied. To address this issue, this study aims to identify the causes of underperformance among PMRs in the NCI by examining the tasks where PMRs underperform and the extent of this underperformance and its effect on motivational support from organizations. Data were collected through 206 questionnaires and 36 semi-structured interviews with organizations and project managers. Descriptive analysis was conducted to evaluate project management (PM) practices as well as the level of motivational support provided to PMRs. The analysis revealed that PMRs underperform in more than 60% of tasks but outperform in 20%. Underperformance refers to the tasks in which PMRs performed less than the expected contributions set by the organization, while outperformance describes tasks where PMRs exceeded the organization’s expectations. The analysis also revealed low motivational support of PMR. Correlation analysis was conducted to investigate whether motivational support influences PMR performance, and the results indicated a two-way causal relationship between underperformance and low motivational support. This study integrated a game theory model with regression analysis to show that (stay, support) is the dominant solution for project managers and organizations, provided the net contribution of support is positive. In this context, “stay” refers to PMRs continuing working with their current organization, while “support” refers to the motivational support provided by the organization to enhance the commitment and performance of the PMRs. However, current support levels may not be enough to cause PMRs to begin to outperform. In addition, regression analysis was conducted between the degree of underperformance and motivational factors, and we conducted a preliminary simulation by increasing these values of regression coefficients. The results indicated that while motivational support from organizations can improve PMRs performance, its effectiveness is limited. Factors such as corruption, political pressures, and organizational culture have a greater impact on performance. Addressing these factors may be more crucial for enhancing performance and project outcomes than focusing only on motivational support. Therefore, the Nigerian construction industry needs to implement institutional changes alongside motivational strategies to improve PMRs performance and project success.

Effect of Sectoral Foreign Exchange Utilization on Manufacturing Firms Performance in Nigeria

Effect of Sectoral Foreign Exchange Utilization on Manufacturing Firms Performance in Nigeria

CORRUPTION AND POLITICAL PARTY PERFORMANCE IN NIGERIA’S FOURTH REPUBLIC; FOCUS ON PEOPLES DEMOCRATIC PARTY

One of the perennial challenges facing the Nigerian polity is corruption and the political space was not left out in this regard. Despite the fact that political parties are the bedrock of democratic settings as they perform the functions of political recruitment, socialization, articulation as well as strengthening the competition in the political space, lack of ideology, corrupt practices and intra-party contradictions have hindered them from meeting their expectations. This paper interrogated the effects of corruption on political party performance in Nigeria’s Fourth Republic with much focus on the Peoples Democratic Party (PDP) and to proffer solutions on how the menace could be curbed to enhance the internal democracy and potential of the PDP to capture the state power. The paper adopted qualitative research method through the use of secondary data such as journals, textbooks and periodicals and also utilized the clientelism model as a framework of analysis. The study reveals that corruption has eaten deep into the fabric of all democratic institutions in the state including the political parties as the electoral processes have been monetized beyond reasonable doubt. The study, therefore, recommended among others that the democratic institutions in the state such as political parties and the electoral commission be strengthened so as to promote good governance, values ethics and national prosperity. Again, there should be focus on meritocracy in selecting the leadership of political parties and party candidates rather than emphasis on nepotism and relying on patron-client agreements where the patrons decide who and how leaders are elected. This will go along to establish a just, fair and an egalitarian society.

Impact of Customer Satisfaction on Organizational Performance in Nigeria's Brewery Industry

This study investigated how customer satisfaction influences the profitability of Nigeria's brewery industry. The objective is to establish the connection between customer satisfaction and organizational performance if any. Primary and secondary data were used for this study. The primary data was collected with the aid of questionnaires while the secondary data was compiled and gathered from the selected organization periodicals and journals. The population of the study included 84 staff of three (3) brewery companies in Lagos, Nigeria. The data collected was analyzed using descriptive and inferential statistical tools. The descriptive tools included tables and percentages while the inferential tools included regression analysis and analysis of variance (ANOVA). The findings from the study show the R2 values of 0.630 which revealed that customer satisfaction independently explains 63% of the variation in organizational performance in Nigeria’s brewery industry. The f-statistics of 3.838 of the organization revealed that the model is statistically significant at 0.05 significance level. The study findings also revealed that the satisfaction of customers leads to better organizational performance. It was recommended that brewery companies should invest more in product quality and prioritize customer service in order to improve customer satisfaction levels.

Evaluation of Trend of Foreign Exchange Reserve and Shipping Industry Trade Performance in Nigeria

This study focused on evaluation of the trend of Foreign Exchange Reserve (FX) and performance of shipping industry trade through examining the export and import trades within the periods 2011 to 2022. The objectives were to determine the correlation between trend values of FX with export and import shipping trades in Nigeria. Provisional data on Foreign Exchange Reserve, export and import trades from World Bank, CBN and Trend Economy were analyzed using spearman’s rank correlation coefficient analysis and it was observed that Foreign Exchange positively influences export and import shipping trades, however, the study infers that the impacts were not significant at 0.05 (2-tailed) Significance level. It concludes that the positive correlations between the data variables informs that decrease in FX influences decrease in export and import trade which also retar economic growth, development and reduced people’s standards of living in Nigeria. However, the reserve becomes the case. The study recommends immediate policy adjustment to hold and maintain strong Foreign Exchange which could boost country’s reserve for better performance of the shipping industry and other sectors of the economy.

Analysis of Financial Development and Trade Performance in Nigeria

Despite the importance of financial development-international trade nexus and its implication for growth, studies have yet to look at the impact of new financial development indicators developed by the International Monetary Fund on international trade performance in Nigeria. This is one of the few attempts made to examine the elasticity of trade to financial development, given the inconclusive findings that permeate the literature. Therefore, this paper investigates the effect of financial development on aggregate trade performance in Nigeria using annual data from 1980 to 2021. The empirical framework is based on the ARDL approach to cointegration and error correction model. The findings revealed that (i) The ARDL bound test revealed the existence of a long-run equilibrium association between the variables; (ii) We find that a unit improvement in financial development induces a 1.1%-1.2% increase in trade performance in the short-run short term and a 9.7% in the long-run; (iii) The results show that a 1% increase in the exchange rate (depreciation) leads to a 0.01% improvement in trade performance in the short-term. The findings have important policy implications. The paper concludes that financial development contributes to trade performance.

Politicization of Humanitarian Aid Allocations by Global Donors and Implications on Selected Non-Governmental Organisations’ Performance in Nigeria

Organisations that focus on humanitarian concerns usually rely on voluntary donations and largesse from multiple ends, without which their operations cannot be implemented. The premise of the paper was established on the fact that humanitarian aid is ultimately complemented by humanitarian funding, which is in itself reliant on donors from multiple ends. As a result of this, it has become difficult to divorce the political nature of the influence of donors’ interests in the allocation and focus of the humanitarian funding offered. This has resulted in a dilemma. The study focused on the issue of the politicization of humanitarian funding and how it affects the delivery of humanitarian aid in selected non-governmental organisations in Nigeria. Using a qualitative approach, 10 participants, working with different NGOs in Nigeria and occupying different positions, were recruited to derive data on the topic. Semi-structured interviews were utilised. The data obtained were analysed via thematic analysis to decode the data and derive recurrent themes from it. The results of the study showed that there is a consensus among the participants on the virtually inevitable role of politics in the acquisition and subsequent distribution of humanitarian funding to address issues related to conflicts and disasters among diverse communities across Nigeria. This often negates the principle of independence and autonomy that NGOs should work by where, in most cases, the acceptance of humanitarian funding from donors often leaves their hands tied. The study offered recommendations along the lines of creating mechanisms of transparency and accountability from both donors and recipient NGOs, having local NGOs seek support from their communities to be more involved in humanitarian missions, and heightened collaboration between humanitarian actors to make funding easier, more effective, and less politicized.

PROBLEMS OF VERTICAL INTEGRATION AMONG FISH FARMERS AND WAY FORWARD IN RIVERS STATE, NIGERIA

This study examines the impact of private investment on economic performance in Nigeria using time series data from 1980 -2018. Multiple regression and co-integration methods are employed to analyze the data. The objectives of this study is to, among other things, examine the casual relationship between private investment and economic growth in Nigeria and to investigate the impact of private domestic investment on economic performance in Nigeria. Being a time series data, the first step is to test for the stationarity of the data by using Phillips Perron-Fuller unit root test. Ordinary least square (OLS) and Auto regressive distributed lag (ARDL) technique is used to estimate the models. The results of the unit root test show that some variables; Labour Force Participation rate (LPR), Private Domestic This study assessed problems of vertical integration among fish farmers in Rivers State, Nigeria. The paper looked at distribution of respondents’ socio-economic characteristics and problems of vertical integration among fish farmers in the study area. Data for the study was collected from 37 vertically integrated fish farmers that exist in the State. To analyze the data, collected descriptive statistics and Likert-type rating scale was used. The study revealed that the vertically integrated fish farmers were mostly within the range of 41-45 years, married having household size of 6-10 persons. The study revealed that the vertically integrated fish farmers were experienced, learned, and majored only as fish culture farmers. However, farmers complained of large capital required for starting, irregular electricity, sinking of local feed produced, poor drying of fish, and stressful activities of feed production, fingerling hatching and processing of fish. It was suggested that fish culture farmers should be provided with credit at low interest rate, up-to date knowledge in fish culture and extension services to enhance productivity.

Currency devaluation and capital market performance in Nigeria

The research study delves into investigating the effects of currency devaluation on capital market performance in Nigeria using time series data from 1989 to 2021. Currency devaluation was captured using purchasing power parity and exchange rate of Nigeria domestic currency, while capital market was captured using total market capitalization of the Nigerian stock exchange with all variable serving as explanatory variables to Nigeria’s gross domestic product. Also the research employs the use of Johansen co-integration test to assess the long run relationship between all variables that are stationary at first order. Also granger causality test was adopted to determine the direction of causality between variables. The study found that exchange rate and purchasing power parity has a significant negative effect on total market capitalization in the long run. In addition, all independent variables granger cause each other as well as dependent variables. The study recommends that government should implement monetary policies that will increase the tempo of free financial flow into the capital market that will in turn stimulate economic growth and also recommended for further studies.

A Re-examination of Housing Investment Performance in Nigeria

Arising from the lack of a holistic performance analysis of housing investment in Nigeria, this paper re-examines the return-risk performance of residential property assets by focusing on the tier 1 property markets of Lagos, Abuja, and Port Harcourt. Data on the rental and capital values of residential property assets, comprising bungalows, blocks of flats, and detached houses, from 1999 to 2022 were obtained from estate surveying and valuation firms in the three locations. Mean return and standard deviation were employed to analyse return and risk profiles. Variations in return and risk profiles were further examined using a four-year sub-period analysis. The return-risk ratio was also employed to measure the attractiveness of the investment. The downside risk measure of the Sortino ratio was utilised to determine the risk-adjusted performance of the residential property assets. The results revealed that, on mean return and return-risk tradeoff bases, bungalow investments had superior performance compared with other property types across the geographic areas. When aggregated, residential property assets in Port Harcourt experienced superior return-risk performance relative to other locations. On sub-period analysis, the study established variations in the performance of the residential property assets across time periods and locations. On the risk-adjusted performance measure, it was found that bungalows in Lagos had the highest risk-adjusted performance. Detached house investments across the three locations were also found to exhibit low downside risk-adjusted performance. The study concluded that investors could gain high and attractive returns when making bungalow housing investment decisions with a huge potential for downside risk-proof returns. Moreover, investors could further expand this potential by concentrating more housing investment activities in Port Harcourt, as returns in this location are insulated from downside risk. However, investors should be cautious when investing in detached house assets across the three locations, as returns from this asset might be susceptible to downside risk.

The Impact of the 2023 Cashless Policy on Live Music Performance in Nigeria: A Study of Selected Popular Musicians and Audience

The Impact of the 2023 Cashless Policy on Live Music Performance in Nigeria: A Study of Selected Popular Musicians and Audience

The Moderating Effect of Vertical Agency Crisis on the Relationship Between Corporate Governance and Financial Performance in Nigeria

This study examines the moderating effect of vertical agency crises on the relationship between corporate governance mechanism and financial performance in Nigeria covering 2013 to 2022. To achieve this purpose, this study used precise proxies for the dependent, independent and moderator variables of interest. Based on a descriptive and ex-post facto research design, this study analyzed a set of panel data sourced from annual financial reports of eighteen (18) consumer goods firms drawn from a population of twenty-five (25) listed consumer goods firms in Nigeria. Mixed effect multi-level regression analysis estimator together with moderated regression analysis technique were employed to test the hypotheses after meeting necessary conditions for obtaining non-spurious least square regression estimates. The findings show that board ownership has a statistically significant relationship with financial performance, but board size, board independence and board gender diversity have insignificant relationship. Further, the findings from this study reveals among others that vertical agency crises have an insignificant moderating effect on the relationship between board independence and financial performance, the moderating effect is significantly positive in relation to board gender diversity for listed consumer goods firms in Nigeria . But for the variable of board size and board ownership, the moderating effect of vertical agency crises was seen to be statistically insignificant. Therefore, on the bases of the findings, this study suggests that managers should focus on mitigating vertical agency crises while concurrently strengthening board independence.

Stock Market Liquidity and Stock Market Performance in Nigeria: Evidence from the Nigerian Exchange Limited

Insufficient liquidity can become a significant obstacle to stock trading and impede the smooth operation and performance of the stock market. This motivated the study to investigate the effect of stock market liquidity on stock market performance in Nigeria. The research design employed was ex post facto, while stratified sampling technique was used to select top 30 actively traded and most liquid companies tagged NGX-30 for this study. Data were sourced secondarily from SEC Statistical Bulletin, CBN Statistical Bulletin and www.investing.com. The Vector Error Correction (VEC) System Equation Regression was employed as the estimation technique. The results revealed that liquidity depth, liquidity breadth, and liquidity immediacy have significant positive effects on stock market performance as shown by ? = 0.2019, 8.5594, 3.3268; p-value = 0.0329, 0.0052, 0.0467 respectively. Also, interest rate, inflation rate and exchange rate have varied significant effects on stock market performance as shown by ? = -0.0023, -1.1738, 0.03432; p-value = 0.0634, 0.0346, 0.0778 respectively. Therefore, the study concluded that stock liquid significantly affects stock market performance. Thus, the study recommended that the Security and Exchange Commission (SEC) should implement policies that encourage the participation of more traders to increase the number of actively traded stocks; support measures that improve the depth of the market by promoting transparency and fairness; improve the infrastructure for trade execution to enhance liquidity immediacy; and develop mechanisms to promptly identify and mitigate market risks.

Impact of Auditing on Deposit Money Banks' Performance in Nigeria: A Study of Selected Institutions

Impact of Auditing on Deposit Money Banks' Performance in Nigeria: A Study of Selected Institutions

Board Structure and Financial Performance of Manufacturing Companies in Nigeria

This study examines the impact of board structure on corporate financial performance in Nigeria. It investigates the Diversity of boards of directors in Nigerian firms and analyses whether board structure has an impact on financial performance, as measured by return on equity (ROE) and return on capital employed (ROCE). Based on the extensive literature, four board characteristics (board Diversity, board size, board ownership and CEO duality) have been identified as possibly having an impact on corporate financial performance and these characteristics are set as the independent variables. The Ordinary Least Squares (OLS) regression was used to estimate the relationship between corporate performance measures and the independent variables. Findings from the study show that there is strong positive association between board size and corporate financial performance. Evidence also exists that there is a positive association between outside directors sitting on the board and corporate financial performance. However, a negative association was observed between directors’ stockholding and firm financial performance measures. In addition, the study reveals a negative association between ROE and CEO duality, while a strong positive association was observed between ROCE and CEO duality. The study suggests that large board size should be encouraged and the Diversity of outside directors as members of the board should be sustained and improved upon to enhance corporate financial performance.

Comparative analysis of hub and spoke seaport performance in Nigeria: Case of Apapa Port and Tin Can Island Port

Purpose: The primary aim of this study is to evaluate and compare the operational performance of two major seaports in Lagos, Nigeria – Apapa Port and Tin Can Island Port – using specific port performance indicators. Methodology: The study employs the Cobb-Douglas production function and the Ordinary Least Squares (OLS) method to analyse data sourced from the Nigeria Ports Authority's operational bulletin records. The analysis was conducted using E-view software version 10.0. Results: The findings indicate that cargo throughput, used as the dependent variable, has a strong positive linear relationship with ship traffic, berth occupancy, turnaround time, and the number of employees. The R2 value is 85.89% for Apapa Port and 98.79% for Tin Can Island Port, suggesting that Tin Can Island Port is more productive. Theoretical Contribution: This study contributes to the field of maritime transport and logistics by providing empirical evidence on the efficiency and productivity of Nigerian seaports. It highlights the importance of modern infrastructure and effective port operations in enhancing seaport performance. Practical Implications: The study recommends that the Nigerian government should focus on reducing port congestion, improving road conditions leading to the ports, and streamlining port documentation processes. These measures are essential for enhancing the operational efficiency of Nigerian seaports.

Monetary policy transmission tools and private sector performance – the Nigerian experience

Credit to private sector is considered vital for the stimulation of domestic investment, job creation, economic growth, and general improvement in the standard of living of the people. This is because the economic activity in the private sector significantly complements governments’ efforts in attaining macroeconomic objectives, globally. However, as laudable as the benefits of credit to private sector has been in catalyzing private sector performance in developed economies, the situation in most transitioning economies, particularly, Nigeria has been far from satisfying. Several studies in academic literature have identified political instability, poor institutional framework, absence of fiscal transparency, macroeconomic factors and frequent policy changes as having significant constraining influences on credit availability in Nigeria with plausible recommendations to private sector performance. However, the absence of noticeable improvement over the years, and its accompanying growth-retarding multiplier effects on domestic investment and productivity in Nigeria has instigated more concentrated studies on the direct impact of monetary policy framework in the determination of the performance of private sector through credit availability. Therefore, this study empirically evaluates the impact of key monetary policy toolkits on the availability of private sector credits and performance in Nigeria. To this end, annual time series secondary data from 1993 to 2023 were sourced from National Bureau of Statistics and Central Bank of Nigeria Statistical Bulletins for various years within the study period. The study adopts Autoregressive Distributed Lag (ARDL) estimation technique after carrying out pre-diagnostic tests such as ADF unit root test and Bound Cointegration test. Our result reveals that money aggregates (MAG) is positive and significant in explaining variations in private sector credit and performance. Further results reveal that monetary policy rate (MPR), open market operations (OMO) and inflation rate (INR) impacted negatively on the performance of private sector in Nigeria within the study period. Therefore, the study concludes that the performance of the private sector in Nigeria will improve with increased credit availability, which is positively influenced by systematic increase in money aggregates and efficiently expanded monetary policy framework. The study recommends adoption of a harmonious blend of a more relaxed monetary policy framework with purposeful compliant-based regulation that will free up liquidity for increased private sector credits and performance. Keywords: Credit to Private Sector, Monetary Policy Rate, Open Market Operations and Money Aggregates.

Monetary Policy, Digitalisation and Banking Industry Performance in Nigeria

In the evolving financial landscape of Nigeria, the interplay between monetary policy and digitalization significantly influences the performance metrics of banks. This study explores the multifaceted impact of these two critical factors on the Nigerian banking sector. Monetary policy, orchestrated by the Central Bank of Nigeria, regulates the economy's money supply, affecting banks' lending behaviors and liquidity. Digitalization, on the other hand, offers a transformative potential for banks to enhance operational efficiency, customer experience, and service delivery through technological advancements. The study examines how money supply, lending rate and digitalization (proxied by mobile cell subscription) affect banks’ financial performance, focusing on bank credit and liquid assets, while controlling for inflation and exchange rate variables. It also examines the interaction between digitalization and monetary policy variables on bank performance. Employing an interactive multiple regression model, the study analyzes time series data from 1996 to 2022 sourced from the World Bank. Findings indicate that while stringent monetary policies can constrain bank performance by tightening credit and reducing liquidity, digitalization provides an opportunity for banks to counteract these effects through enhanced efficiency. However, the successful integration of digital technologies is contingent upon adequate investment, regulatory support, and strategic alignment with the banks’ core objectives. The study concludes that Nigerian banks must adeptly manage monetary policy fluctuations and leverage digitalization to sustain and enhance performance. These insights could guide policy formulation and strategic decision-making within the banking industry.