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National Health Insurance Scheme (NHIS) implementation in Nigeria: issues, challenges and way forward
No full textThe paper discussed the National Health lnsurance Scheme (NHIS) adopted by Nigeria for improved access to healthcare, especially to the low income earners. The objective of the study is to review developments ln the implementation of the Nigerian NHIS and determine whether its achieving its objectives. Specifically, the study focused on key issues and challenges confronting the NHIS, with a bid to proffer appropriate recommendations towards sustainability, effectiveness and efficiency. The study adopted a descriptive qualitative analysis methodology and found limited coverage, religious and cultural limitations, in-extensive prescriptions, conflict of interests (NHIS and HMOs), low participants\u27 coverage, issues of mistrust, total government financing limitation as well as low budget allocation compared to need, as major issues confronting the achievement of quality healthcare delivery from the Scheme. lt proffered some recommendations which include: more private sector participation, governance right to HMOs on the Board of NHIS, creation of National Health lnsurance Fund and commencement of contribution from participants
Nigeria\u27s experience with monetary sterilisation (2000-2016).
No full textThis study attempts to estimate the extent of sterilisation undertaken by the Central Bank of Nigeria (CBN) during the period from 2000 to 2016. The approach used in this study involved construction of a monetary sterilisation index by measuring the rate of change in domestic asset (net) with respect to the change in foreign asset (net). The index expands the menu of available indicators which may be considered by monetary policy makers in in evaluating policy response to changing economic conditions. The paper after its introduction reviews the literature on monetary sterilization is aimed at ensuring that the balance sheet of the monetary authority is optimized to keep inflation under control. To measure the extent of CBN sterilization operations, the study adopted the methodology applied by Cavoli and Rajan (200s), Glick (2008) and Cardarelli et al. (2009) which seeks to evaluate the linear relationship between net domestic assets and net foreign assets. The study used monthly data on inflows from January 2000 to March 2016, sourced from the Central Bank of Nigeria Statistical database. The study found an inverse trend between the trend and both inflation and exchange rate of the Naira
The Impact of Trade on Economic Growth in ECOWAS Countries: evidence from panel data
No full textThe poor economic performance and growth of ECOWAS economies have become so challenging and this has necessitated research and discussions. Experts have argued that the relationship between trade and economic growth in the ECOWAS region is unclear and the question of whether trade promotes growth and development is controversial. In this paper, an attempt is made to analyse the impact of trade on economic growth both from a theoretical perspective and using econometric evidence from ECOWAS countries. In particular, an attempt is made to econometrically test the hypothesis of a positive relationship between trade and growth in ECOWAS countries during the 1990-2013 period. This is done using panel data regression analysis. Utilizing data for the 15 ECOWAS countries, a log-linear regression equation of per capita real GDP is fitted on exports, the exchange rate, investment, human capital, inflation and population growth. For completeness and to test the robustness of the econometric results, 4 estimators (pooled OLS, Fixed effects model, Random effects model, and dynamic panel regression model) were utilized. The dynamic panel data estimator is preferred as it is able to handle the problems arising from “endogeneity” or reverse causality. All the 4 estimated regression equations had high coefficients of determination and F-statistic. In all the equations, exports, exchange rate and investment were significant determinants of per capita real income growth. Exports were consistently positively related to growth, thus confirming the hypothesis of trade having a significant positive impact on economic growth in ECOWAS countries
MSME sector: the new paradigm for Nigeria\u27s economic development
No full textMSMEs play a major role in most economies, especially in developing countries. This paper examines the opportunity provided by FSS2020 to enhance development of the MSME sector in Nigeria. The paper begins by examining the concept of FSS2O2O strategy for the MSME sector with specific focus on the six (6) Strategic Objectives and three (3) Transformational Programs to drive the development of the sector. These strategic objectives and the respective initiatives have a high multiplier effect on the entire Nigeria financial system. The six objectives ore: Advocate and Work with the government to Drive SME development, 2. Promote Financial Reporting and Governance, 3 Collaborate with Quality Control Organizations to ensure Micro and SMEs output meet National & international Standards, 4. Collaborate on the Development of Financial Services, Products and Channels, 5. increase the Provision of Long Term low interest Financing and 6. Couple the enhancement of Access to finance with Business Development Support. FSS2O2O MSME sector achievements includes: passage of the Secured Transaction in Moveable Asset Bill into Law and assent by the President of the Federal Republic of Nigeria; Sponsoring of the SMEDAN Amendment Bill, initiation of Business Community Based Credit Model (B2CM); Enhanced collaboration with SMEDAN and other implementing institutions; advocacy for government support through MSME intervention Fund. The major setbacks of FSS2020 strategy include: perceived dominance of the program by CBN; poor funding of initiatives; lock of business management skills/capacity of stakeholders on NCR Software; lack of on integrated and inter-operable credit management software amongst financial institutions (finance providers); absence of corporate governance & business standards for MSME projects; Lock of Central identity database for MSMEs; low collaboration with the Financial Reporting Council (FRC) for the implementation of tailored IFRS for MSME and struggling engagement with NAFDAC, SON and others; security challenges which may hamper the development of clusters; stringent collateral asset quality requirements for SMEs ;Stringent registration requirements for new entrants to the Alternative Securities Market (ASeM); non-cooperation of the State and Local Governments (low interest, low funding); inadequate alignment of State Councils on MSMEs with National Council on MSMEs (only 14 of the 36 States have keyed in into this initiative); lack of access to funds by MSMEs; lock of o regulatory framework for accreditation of business development services providers; low level of financial literacy and awareness among others. Some measure recommended to mitigate these challenges include: intervention meetings amongst key stakeholders; enhance collaboration between CBN and other stakeholders in the area of funding projects, engagement of State Governor f or the implementation of SPV for SME production and development; increase advocacy; provision of integrated and interoperable credit management software amongst financial institutions; collaboration of SMEDAN; enhancing financial innovation & Access (EFlnA) on Access to finance and enhanced financial literacy advocacy. The paper concludes by highlighting the FSS2O2O designs a new credit model for MSMEs in Nigeria and FSS202O supports SMEDAN Amendment Bill to strengthen MSMES operations in Nigeria
Determinants of Nigeria\u27s External Sector Competitiveness
No full textThe study investigated the determinants of Nigeria\u27s external competitiveness, with a view to providing sound policy prescriptions on ways to improve competitiveness. The study employed an Autoregressive Distributed Lag (ARDL) model, using monthly data spanning 2008 to 2016 to determine the short- and long-run relationships among some selected macroeconomic variables. These included real effective exchange rate, exports, productivity, crude oil price, capital flow and consumer price index. The results from the short-run analysis revealed that productivity, proxied by government expenditure, and crude oil price were found to be the major determinants of external sector competitiveness in Nigeria, while CPI was significant in the long-run. However, Nigeria\u27s exports and capital flows were not significant determinants of external competitiveness. The policy implication is that since the country has no control over crude oil price, the need to ensure prudence in government spending becomes imperative to boost productivity and trade. Also, the need to restructure government expenditure profile from recurrent to capital to guarantee infrastructural development is undisputable. This is because increased capital expenditure would enhance foreign investor confidence
FSS 2020: human capital development report
No full textThis paper explores the FSS2020 Human Capital Development strategy which aims to chart a strategic direction for evolving and developing the required quality human capital that would drive the achievement of the FSS2020 vision, toking into cognizance prevailing local trends and the experiences of global benchmark countries. The paper highlights the vision, mission and objectives of the strategy followed by identifying human capacity development sector challenges. Some critical planned interventions to address the challenges, sector weaknesses and sector threats are next discussed. The paper further highlights relevant stakeholders to implement the interventions and achievements of the HCD sector. Finally, the benefits of the HCD sector concludes the paper
Improving Accuracy with Forecast Combination: the case of inflation and currency in circulation in Nigeria
No full textThis study shows how the application of forecast combination improves the accuracy of forecasts of economic variables. Using data from January 2009 to December 2014 on the Nigerian inflation rate, and forecasts of currency in circulation (see Ikoku, (2014)) as examples, we find that by combining forecasts of both variables using the regressionbased method, the mean absolute percent errors of the combined forecasts were lower than the forecast errors from the individual models of the variables
Issues in reputation and its management
No full textln the corporate world, reputation is seen as a major element of an organisation\u27s provenance alongside and included in financial performance and innovation. Reputation has been, and will continue to play a very important role in the life of corporate bodies. Organisations, be it commercial, governmental or even non-profit will always need good reputation to maintain their corporate stability, stay competitive and also prosper. Good reputation is pivotal to acceptance and approval by organisations\u27 diverse stakeholders, even when such organisations are operating in an adverse ethical environments (sometimes self-created), and would desire to sustain a positive reputation where possible
An Application of Asymmetric GARCH Models on Volatility of Banks Equity in Nigeria’s Stock Market
No full textThis paper examines the volatility of banks equity weekly returns for six banks (coded B1 to B6) using GARCH models. Results reveal the presence of ARCH effect in B2 and B3 equity returns. In addition, the estimated models could not find evidence of leverage effect. On evaluating the estimated models using standard criteria, EGARCH (1, 1) and CGARCH (1, 1) model in Student’s t-distribution are adjudged the best volatility models for B2 and B3 respectively. The study recommends that in modelling stock market volatility, variants of GARCH models and alternative error distribution should be considered for robustness of results. We also recommend for adequate regulatory effort by the CBN over commercial banks operations that will enhance efficiency of their stocks performance and reduce volatility aimed at boosting investors’ confidence in the banking sector
Modelling Inflation Rate Volatility in Nigeria with Structural Breaks
No full textThis study compares the performance of GARCH-Type models in modelling inflation volatility in Nigeria covering the period 1995M01 to 2016M10. In the paper, we provide two main innovations: (i) we analyze inflation rate of two pronounced consumer prices indices namely headline and core consumer price indices using the Augmented DickeyFuller break point test which allow for structural breaks in the data series; and (ii) the method is modified to include both symmetric and asymmetric volatility models. The empirical examination observes evidence of volatility persistence in the consumer price indices, but only headline is consistent with leverage effects. Thus, applying one-modelfits-all approach as well as discarding the role of structural breaks for inflation rate volatility in Nigeria will yield misleading and invalid policy prescriptions