Banking and Finance - Scholarly Publications

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    Competition for Bank Deposits In Nigeria.
    (Giordano Dell-Amore Foundation., 1984) Owualah, S.I.
    This paper is a follow-up on an earlier study by Professor o. Teriba in 1968 on the competition for bank deposits in Nigeria. Consequently it examines the changes in the competition for bank deposits following the enactment of a comprehensive Banking Act in 1969 which among others gave rise to the introduction of monetary policy circulars by the Central Bank of Nigeria. Other factors thought to impact competition for deposits include the growth in number and type of deposit-taking institutions, the entry of development finance institutions and the removal of the dichotomy between expatriate and indigenous commercial banks. The findings showed a steady growth in bank deposits in the face of such impediments to deposit mobilization like extreme rigidity in interest rates and banks' unfriendly attitude to small savers. The paper concludes that the observed growth is not necessarily the result of concerted efforts of banks to compete for deposits but rather the increasing sophistication in the banking habits of most Nigerians.
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    Open Access
    Scale Economies and Efficiency of Bank Operations:
    (Giordano Dell-Amore Foundation., 1986) Owualah, S.I.
    This paper which exploratory undertakes to find out whether economies of scale exist in the operations of Nigerian commercial banks and if so, whether size plays any significant part.To do this, a measure of size - total assets and other variables such as interest payments on time and savings deposits, salaries and wages were included in a regression equation. A major finding is the existence of traces of economies of scale and efficiency, at least in the technical sense, in the operations of larger commercial banks in Nigeria. However, Nigeria's commercial banks are yet to exhaust potential scale economies in their operations.
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    Providing Necessary Economic Infrastructures for Small Businesses:
    (Sage Publications, 1987) Owualah, S.I
    This paper asks what contemporary economies; what constitutes economic infrastructures for small firms; and whose responsibility it is to provide them and to what extent they have been or are being provided in many countries. It finds that government has a responsibility to provide relevant economic infrastructure but suggests there is doubt whether actual implementation should also be there direct responsibility. It suggests that less developed countries may have lost sight of their own comparative advantage in harnessing the potential of the small business sector and conclude that these countries can achieve no meaningful or balanced industrial and economic development without due consideration for their small business sector. The paper emphasizes that providing both hardware and software economic infrastructures for small business firms to play their roles effectively should be the responsibility of the government. This is because governments do through their policies obstruct the growth of these firms just as they can stimulate it.
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    Small Business Loan Decisions:
    (Sage Publications, 1998-07-29) Owualah, S.I.
    The paper reports the results of a survey of small business loan decision criteria in two countries at very different stages of development. Japan and Nigeria present striking contrasts, not only in terms of stages of their levels of economic development but also in socio-economic infrastructures enjoyed by their small businesses. On both counts Japan towers over Nigeria. Hence the perceptions of the banking institutions to small business lending in the former can be used to assess the perceptions of those in the latter. A major finding of this study is that although there is some degree of congruence on what banking institutions in both countries consider as critical in their small business loan decisions, the observed divergences in their perception may be the consequence of institutional or promotional support inequalities between them.
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    Banks and Consultants in Nigeria's Job Creation Program.
    (1999 Kluwer Academic Publisher,Netherlands., 1999) Owualah, S.I.
    Employment creation has become a central objective of policy in many countries. There is also growing unanimity that it can be better attained via a partnership of the private and public sectors. In order to provide the necessary background, the paper highlights extant evidence on the role of entrepreneurship in employment creation and some of the factors which may constrain it. The paper also evaluates the performance of private banks and management consultants in providing credit and management assistance in the job creation program for unemployed graduates in Nigeria. The evaluation is on the basis of the participants' ratings on some selected performance criteria. On the average, with only one exception, banks obtained better ratings than consultants on six performance criteria that are common to them but failed to meet the participants' expectations on four credit-related criteria
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    Banking Crisis, Reforms and Availability of Credit to Japanese Small and Medium Enterprises.
    (University of California, Press, U.S.A., 1999-08) Owualah, S.I.
    The paper examines the impact of the collapse of Japan's "bubble" economy in the early 1990s and the reforms on the availability of credit to Japan's SMEs especially in the Kansai region - Osaka, Kyoto and Kobe. The extent of the credit constraints faced by SMEs was discerned from the perceptions of their owners and managers via a structured questionnaire. The study found the problem of credit availability to affect SMEs' business performance in different industrial sectors in varying degrees with the most worse off being those in manufacturing. Thus availability, not the cost of credit became a primary concern for SMEs generally. The paper advises the thrust of policy actions should be in ensuring that the conflicts from the reforms do not further undermine access to funding by SMEs.
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    Managing Nigeria's Foreign Reserve for Enhanced Macroeconomic Performance.
    (2007) Obademi, O.E
    This paper focuses on foreign reserve management and its impacts on the macroeconomic performance of the Nigerian economy and by extension the well being of Nigerians. The role of the Central Bank of Nigeria as the principal player or state organ in the use of monetary policy to achieve government's intentions of enhanced human welfare was looked into. Consequently macroeconomic variables like the inflation rate, intermediation spread, foreign exchange rate among others were discussed with the suggestion that it is expedient for the government to use part of the foreign reserve to fund fiscal deficits and undertake strict inflation targeting or flexible inflation targeting by relying on the use of foreign reserve to control exchange rate.
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    Achieving Maximum Economic Transformation Impact In Fragile States Through Aids And Debt Relief
    (2007) Obademi, O.E.
    This paper focuses on the peculiar features of fragile states and I have tried to put forward some approaches that can be adopted by development finance organisations and friendly countries at bailing out these states-from their predicament. With the growing awareness and acceptance of the notion that poverty anywhere is a threat to prosperity everywhere and prosperity anywhere should be shared everywhere it is , obvious that fragile states can not be left on their own without external assistance. A link between fragile states and the global economy was done with particular recourse to . debt relief. aids and fragility while drawing conclusions and making recommendation on the mix of approach to be adopted in giving aids and debt relief that will help achieve maximum economic transformation impact in fragile stales.
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    The Impact of Nigeria's External Debt on Economic Development.
    (Emerald Group Publishing Limited, 2008) Adegbite, E. O; Ayadi, F.S; Ayadi, O. F.
    Purpose – This paper aims to investigate the impact of huge external debt with its servicing requirements on economic growth of the Nigerian economy so as to make meaningful inference on the impact of the debt relief which was granted to the country in 2006. Design/methodology/approach – The neoclassical growth model which incorporates external sector, debt indicators and some macroeconomic variables was employed in this study. The paper investigates the linear and nonlinear effect of debt on growth and investment utilizing the ordinary least squares and the generalized least squares. Findings – Among other things, the negative impact of debt (and its servicing requirements) on growth is confirmed in Nigeria. In addition, external debt contributes positively to growth up to a point after which its contributions become negative reflecting the presence of nonlinearity in effects. Originality/value – Nigeria's external debt is analyzed in a new context utilizing a different but innovative model and econometric techniques. It is of tremendous value to researchers on related topic and an effective policy guide to policymakers in Nigeria and other countries with similar characteristics.
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    Tackling youth restiveness in the Niger Delta region of Nigeria through entrepreneurship.
    (2008) Owualah, S. I.; Obokoh, L.O.
    Purpose – This study aims to investigate the efficacy of entrepreneurship training in providing meaningful self‐employment for the restive youths in the Niger Delta region of Nigeria in order to channel their youthful energies into more productive economic activities instead of vandalism and hostage‐taking. Design/methodology/approach – Data obtained from a structured questionnaire on a random sample of 100 youths in Delta, Bayelsa and Rivers States was factor analysed with varimax rotation to identify the most critical factors likely to influence entrepreneurial career. Spearman's ρ was applied to ascertain the overall agreement among the respondents on state basis. Findings – Government, non‐governmental organisations (NGOs) and institutional financial support, personal traits, experience and tolerance for risks, role model influence and availability of infrastructure and personal financial resources were the factors rated important in influencing a career in entrepreneurship. Research limitations/implications – The small size of the sample and focus on a limited number of states in the Niger Delta region limit the generalisability of this study. Practical implications – Youths can be empowered through entrepreneurship taking advantage of its job creation potentials. Originality/value – This study provides state policy makers, oil companies and NGOs additional insights about the strategies to resolve a problem that is increasingly taking its toll on oil and gas exploration and production in the region.
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    Non-Bank Financial Institutions In Nigeria:
    (2009-01) Ezike, J.F
    Given the general belief that financial development promotes growth and vice versa, we try in this study to verify the conclusion that among financial institutions the banking system pre-dominates during the early phases of development but later non-bank financial institutions gain in importance and eventually surpass the banking system. By means of comparative ratios and econometric estimation. we found confirmation of an accompanying growth in the financial sector as the economy grows. Though the study established a relative decline in the prominence of the banking institutions' assets relative to those of non-bank financial institutions, as the economy grows, non-bank financial institutions, asset have not advanced to the point of overtaking banking system assets, as theoretically predicted. This we observe may derive from among others, the distress in the financial system of the mid-to late J990s which negatively affected the growth and importance of non-bank financial institutions in Nigeria.
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    Budget Process And Procedures In Porous Developing Economies:Nigeria In Focus.
    (2009-06) Obademi, O.E; Sokefun, A. O.
    This paper focuses on the characteristic features of a typical porous developing like Nigeria in respect of inadequate institutional and legal/frameworks that can sufficiently support the preparation and implementation of a good budget .The experience in Nigeria is that budget implementation and performance often fall short of 50 percent delivery. This has made room for both official and un-official corruption .The paper looks at the economic growth pattern in Nigeria, the budget deficits over some years and the implications for poverty reduction and societal well-being. The popular Medium Term Expenditure Framework (MTEF),budgeting with special attention to activity based costing has been proposed and is being experimented. However in the light of inflation and the volatility cum instability of the sources of revenue for a country like Nigeria. the capacity of an MTEF budgeting approach to deliver the optimum expectation in terms of budget implementation and delivery may he undermined. The recommendation is that instead of the traditional minimum of a 3 year MTEF, a 2 year budget plan may perform better.
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    The Role of Universities and Colleges in Fostering Entrepreneurship in Nigeria.
    (2010) Owualah, S.I; Mojekwu, J.N.
    Following on previous studies on the role of entrepreneurship education on the likelihood of small business start-ups this study appraises the role and problems of universities and colleges in fostering entrepreneurship using a sample of students and faculty members in selected tertiary educational institutions in Nigeria. The study was conducted with 571 final year students and 52 past and present deans/heads of departments in the faculties/schools of business, engineering and science in 6 selected tertiary institutions. The results reveal the 5 factors likely to influence the offering of entrepreneurship courses as faculty resistance,competence and interest, availability of time, funding and location. There was generally strong agreement among the students that the academic curriculum plays only a moderate role in influencing them in seeking a career in entrepreneurship currently. Further research is needed using a sample drawn from a larger number of tertiary institutions. The findings are important for policy making in order to increase interest in entrepreneurship among prospective graduates and to ensure the long-term and sustained supply of entrepreneurs especially technical entrepreneurs.
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    Factors Influencing Entrepreneurial Career Aspirations of Students in Nigerian Tertiary Institutions.
    (2010) Owualah, S.I.; Mojekwu, J.N.
    The paper attempts to investigate the issues about which students in tertiary institutions in Nigeria are most concerned as influencing their entrepreneurial career aspirations and how their institutions have influenced them. Also it aims at determining whether students in engineering and science disciplines perceive themselves to be having the same concerns about entrepreneurship as their business management counterparts. Two structured questionnaires were administered; one for students in business, engineering and science faculties/schools and another for their deans and heads in six selected tertiary institutions. The most critical factors likely to influence entrepreneurial career among students as well as the teaching of entrepreneurship were identified and rank ordered in terms of importance.Spearman's rho was later applied to ascertain overall agreement on faculty/school basis. Mean scores were estimated determine the extent of each set of respondents' agreement or disagreement with the influence of courses offered on entrepreneurship career aspirations. Academic curriculum, intrinsic rewards, skill/training, government/institutional support, role model influence, funding, job availability, risk of unemployment and possession of business ideas were important factors analysed as likely to influence students' entrepreneurial career aspirations after graduation. The results of this study are important for policy making in order to increase interest in entrepreneurship among prospective graduates of Nigerian tertiary institutions and to ensure the longterm and sustained supply of entrepreneurs. Tertiary institutions have an important role to play in preparing their graduates to be prospective entrepreneurs instead of job seekers.
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    Universal Banking in Nigeria: Imperative or Irrelevant
    (Department of Banking and Finance, Faculty of Management Sciences, University of Benin, 2010-07) Osama, I.O; Abu, I.N
    The banking game the world over has changed over the years and 'universal banking' has been a major contributor to this change especially in the western world. Looking at the issue from an African perspective and Nigeria more specifically, we seethe need for a more robust financial and banking system which the central governing body, the Central Bank of Nigeria has over the last few years put measures in place to achieve this. The universal banking system happens to be one of such measures, though now reversed. Thus it is important to evaluate the usefulness of universal banking to the Nigerian banking system. We show from analysis of copies of questionnaire served to targeted groups of individuals that indeed,' universal banking' will broaden and deepen Nigeria's banking and financial system.
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    Impact of Workers' Remittances on Financial Development in Nigeria.
    (Canadian Center of Science and Education., 2011-10) Oke, B.O
    In this study we examine the nexus between remittances and financial development (FINDEV) in Nigeria from 1977 to 2009. Towards achieving the objective of this study, we employ both the ordinary least square estimation (OLSE) technique and the Generalized Method of Moments (GMM) estimator. Moreover, key diagnostic tests are carried out in order to ascertain model adequacy. We also use two indicators of FINDEV, namely: the ratio of money supply to GDP (m2/gdp) and the ratio of private credit to GDP (cps/gdp). The results generally indicate that remittances positively and significantly influence financial development in Nigeria, with the exception of the cps/gdp measure of FINDEV in the GMM estimation where the coefficient is insignificant. This implies that remittances augment liquid liabilities more than loanable funds in Nigeria, as remittances are likely used more for consumption purposes than for productive ventures in the country. Since remittances provide foreign exchange that is vital to both the internal and the external sectors of the economy, they should be encouraged via appropriate policy formulation and implementation. Financial intermediaries and institutions operating in Nigerian should also intensify the mobilization of remittances with the aim of making them important sources of loanable funds in the country.
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    The Role and Sustainability of Microfinance Banks in Reducing Poverty and Development of Entrepreneurship in Urban and Rural Areas in Nigeria
    (Sciedu Press, 2012) Abu, I.N; Ezike, J.E
    The achievement of good economic growth is anchored around an environment of well focused policies aimed at poverty eradication through the empowerment of the people by availing them of access to factors of production,particularly credit. The study examines the role of Micro-finance banks in reducing poverty and the development of entrepreneurship. Data were collected through structured questionnaires and administered to entrepreneurs (small scale enterprises) and micro-finance banks within the Lagos State area. The study identified high rate of loan default among the SMEs, which poses serious consequences for microfinance banks. It was also established that the challenges facing microfinance banks include, among others, the documentation of credit process, wrong information, identity of the loan applicant, and unstable economic situation in the country.
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    An Empirical Analysis of the Impact of Public Debt on Economic Growth:
    (2012) Obademi, O.E
    This paper focuses on the impact of public debt on economic growth using Nigeria as a case study. An analysis of the long-run relationship and impact of debt from the perspective of the value impact and proportional impact was done. The value impact variables used herein include the external debt value, domestic debt value, total debt value and budget deficit figures. The proportional impact variables are ratios of the value impact to the gross domestic product (GDP). An augmented Cobb Douglas model was used and subsequently a dynamic version of the functional relationship was estimated using Co- integration technique to capture the long-run impact of debt variables on economic growth. The result showed that the joint impact of debt on economic growth is negative and quite significant in the long-run though in the short-run the impact of borrowed funds and coefficient of budget deficit is positive. In the study, the speed at which the short-run equation converges to equilibrium in the long-run as shown by the Error Correction Mechanism coefficient was found to be slow. The conclusion from this study is that though in the short-run the impact of borrowed fund on the Nigerian economy was positive, the impact of debt in the long-run depressed economic growth as a result of incompetent debt management. Key words: Public debt; Economic growth
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    Deregulation and Privatisation of the Upstream and Downstream Oil and Gas Industry in Nigeria: Curse or Blessing?
    (Sciedu Press, 2012) Abu, I.N; Chidi, O.C
    The purpose of this study is to examine the perception of Nigerians on the deregulation and privatisation moves of the government in the oil and gas industry in Nigeria. The oil and gas industry is strategic to national development and growth in Nigeria. Oil and gas constitute about 90% of Nigeria’s foreign exchange earnings and 83% of its GDP. This study adopted the survey research design. It was found that the deregulation and privatisation of the oil and gas industry will usher in sustainable national development and will be a blessing rather than a curse for the citizenry. 77.8% of the respondents believe that the deregulation and privatisation of the oil and gas industry will be a blessing to Nigerians and 80.6% of the respondents do not believe that the deregulation and privatisation of the oil and gas industry will be a curse to Nigerians. The authors recommend that strategic sectors such as oil and gas as well as the power sector should be deregulated and privatised for sustainable national development.