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Economic cost of electricity outages: evidence from a sample study of industrial and commercial firms in the Lagos area of Nigeria.
No full textThe purpose of this study is to estimate some of the measurable costs of electricity outages from a sample of industrial and commercial firms in the Lagos area. To achieve this objective, over 100 firms were surveyed. Analysis of the survey returns showed that firms in the area sustained substantial economic costs, consisting of adaptive costs (investments and operating costs on own generations), operating losses (raw and processed materials), equipment losses and unproduced output. Most of the firms indicated that NEPA\u27s tariff was expensive. They also recommended among other things, private sector participation in the electricity industry and privatization of the National Electric Power Authority (NEPA) in order to improve electricity supply and distribution in Nigeria. Policy issues arising from the study include urgent need for government policy on private sector participation in the electricity industry; privatisation of NEPA; granting of tax incentives to firms for investment on own generation so as to dampen cost-push inflation; the granting of legal rights to manufacturers to claim for certain losses resulting from electricity failure, while electricity firms should be allowed to enforce laws infringing on electricity supply, transmission and distribution, and the need to standardise generating sizes and regulate generating models to ensure maintainability and easier access to spare parts
The role of The Central Bank of Nigeria in monetary and banking policy measures.
No full textThe objective of this paper is to examine the various monetary and banking policy measures which the CBN had applied both in the past and now in carrying out its functions and the role banking legislation plays in this regard. To this end, the paper is organised in four parts. Part I examines the legal and macroeconomic environment in which the Bank discharges its responsibilities. Part II reviews the measures taken by the CBN over the years in performing its functions while Part llI identifies the problems which constrains CBN\u27s performance, the external influences which cause or aggravate these problems and the role which banking legislation could play in resolving them. Part IV provides the summary and conclusion
Modern techniques of Bank administration
No full textThis paper examines the basic theories and concepts underlying bank management. The paper noted that portfolio management, especially the funds management aspect, represented the core of sound bank planning and financial control. The paper identified principal methods of assets and liability management including liquidity and asset management, forecasting, resource allocation, foreign exchange management and gap management were discussed. The twin concepts of overall bank liquidity and balance sheet interest rate sensitivity management are also highlighted. The paper further observed that that portfolio management in banks being an intricate matter usually requires the setting up of management committees to take charge of the bank\u27s asset and liability arrangement
Foreign exchange market in Nigeria
No full textThe paper carried out an appraisal, reviewed the benefits and problems and highlighted the prospects of foreign exchange market(FEM). The foreign exchange market(FEM) became institutionalized in Nigeria following protracted economic declines. The 1970\u27s were generally regarded as an era of oil boom in Nigeria, when oil revenue enhanced economic development. The economy became heavily dependent on crude petroleum exports as the main source of foreign exchange earnings and government revenue. In a continuous effort to revamp the economy, the government introduced the Structural Adjustment Programme (SAP) in 1986 as a short-term measure to last till 1988. The core component of the SAP was what was known initially as Second-Tire Foreign Exchange Market (SFEM) which was later transformed to the Foreign Exchange Market (FEM)
Central Bank of Nigeria Statistical Bulletin, June 1992
No full textThis volume data on various aspects of Nigeria\u27s economy, including debt and banking sub-sector, central banking, financial markets, non-bank financial institutions, system clearinghouse activities, merchant and commercial banking, and public finance statistics for the year 1999. The data on financial institutions is based on the consolidation of commercial and merchant banks\u27 first and second schedule statutory returns, computation of liquidity ratio, cash reserve ratio, loan/deposit ratio, proportion of loans to rural borrowers and small-scale enterprises, aggregate and sectoral distribution of credits, and the structure of licensed banks loans and advances. The data on financial markets is based on the consolidation of new issues, subscription of treasury securities and noney market assets outstanding, computation and conglomeration of data on Nigerian Stock Exchange (NSE) transactions, brokerage firms, ownership of government development stocks, and other issues relating to capital markets. The public sector indicators are the revenue and expenditure of the Federal Government. Agricultural crops are defined in terms of staples and other cash crops, while electricity generation and consumption are converted to tonnes. Consumer price indices (CPIs) measure changes in retail prices paid by consumers. The Balance of Payment (BOP) is a systematic record of economic transactions between residents and non-residents, including the provision and receipt of real resources goods, services, and income. The foreign exchange rate management in Nigeria has evolved from an officially pegged exchange rate system to a market-determined system. International trade takes place between the residents of a country, the reporting economy, and the rest of the world, usually divided into three sections: the Current Account, the Capital Account, and the Reserve
The challenges of the new banking legislations
No full textThis paper examines Nigeria\u27s new banking legislations. The new banking laws together with deposit insurance system, established in 1988, and the new regulations embodies in the prudential guidelines and the accounting standards for banks, both introduced in 1990, constitute and essential foundation for managing and promoting a dynamic and sound financial sector. The new regulatory environment places emphasis on the need for institutions to strengthen and build up capital, improve the quality of assets and maintain high lending and investment standards. The paper is in three parts. Part I reviews some of the major trends in the financial industry with emphasis on the evolving structure of banking and the efforts and the factors underlying the changes. Part 2 highlights the major changes embodied in the decrees while Part 3 summaries and concludes the paper
The role and nature of research in a financial environment
No full textThe paper examines the role and nature of research in a financial environment. It explains the types of integrated approach to research that should be encouraged and developed in a financial sector. The paper also analyzed the central bank approach and discussed how it involves central bank management. The major issues and problems in the baking industry highlighted were the problems of implementing measures of deregulation, macro-economic instability and distress in the financial sector
The role of central banks in capital market development: the Nigerian experience.
No full textCentral banks, especially in Third World countries, play a major role in the growth and development process. Although the structures, functions and powers of central bank vary from country to country, depending on the economic, political, social and other environmental realities prevailing in society, the primary role of any central bank is the promotion of monetary stability and a sound financial system. In performing this role, a central bank necessarily undertakes some functions which include the issue of legal tender currency, maintenance of the value of the national currency, enhancement of funds mobilization, facilitation of competitive efficiency among banks and other financial institutions within the system and promotion of active money and capital, the Central Bank of Nigeria has not been an exception. This paper examines the Bank\u27s role in capital market development in Nigeria. In what follows, a background to the establishment of the CBN and the Nigerian Capital Market is given. The experience of other countries about measures to activate the capital market is examined, while the role of the CBN in capital market development is discussed. A brief review of the Nigerian Capital Market vis-a-vis other emerging markets is given. The paper ends with a contemplation on future challenges and some concluding remarks
Interest rates behaviour under a programme of financial reform: the Nigerian case
No full textThis paper is an attempt to investigate the determinants of interest rates in Nigeria since the introduction of the deregulatory measures in 1987. Both the external and domestic factors were taken into account since Nigeria cannot be regarded as a closed economy. The major finding of the paper is that the most important factor affecting nominal lending rate in Nigeria is the persistent exchange rate depreciation. The identified channel of causation is the demand for money, especially for transactions purposes, which increases as the exchange rate depreciates, putting pressure on domestic liquidity. Institutional factors also explain a significant proportion of the variations in interest rates. The Fisher effect does not appear to be a major factor in interest rate determination as the expected inflation rate variable was not statistically significant
The role of regulatory bodies in capital market development: the Nigerian experience.
No full textThis paper examined the need for capital market regulation which is motivated by the desire to protect the investing public from malpractices, instil confidence in the system and ensure financial market and economic stability which are pivotal to economic growth and development. History has shown that inadequate or absence of regulation is detrimental to the capital market as it encourages sharp practices by participants. Regulatory agencies are therefore necessary to police activities in the market with the aim of preventing or minimizing abuses which might mar investors’ confidence, the market\u27s integrity and stability. As financial markets get liberalized, market participants are more likely to abuse the system hence new and sometimes stiffer regulations are usually introduced to prevent likely abuses, and keep the market in check