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The role of the media in communicating developments in foreign exchange management in Nigeria
No full textThe branch of journalism that tracks, record, analyses and interprets the economic changes that took place in a society is Financial Journalism. it is said to be a subject of unprecedented circumstance because financial and business stories nowadays move at a digital driven speed. the interpretation and presentation of the up to day activities in the financial world comes with high level of research and cooperate understanding. the Nigeria economy is heavily dependent on import and this records can be presented to the public through the media
Fiscal Decentralization, Economic Growth and Human Resource Development in Nigeria: Autoregressive Distributed Lag (ARDL) Approach
No full textThere is a widespread belief that fiscal decentralization is an effective tool for increasing the efficiency of public expenditures. Decentralization is expected to boost accountability and transparency in the provision of public goods for the well-being of the society. However, countervailing views maintain that little or no impact has been created at the periphery in terms of improving the welfare of the people in Nigeria. The main objective of this paper was to investigate how the decentralized system of expenditure impacted on human resource development in Nigeria. Using ARDL/Bounds Testing approach and data for the period 1980 to 2012, the study found that expenditure decentralization exerted negative effect on human resource development. The pattern and nature of expenditure decentralization in Nigeria, in the long-run, seemed to support inefficient application of resources with increased cost of governance rather than ensuring cost effectiveness in the provision of public services. The study recommends that transparency and accountability at all levels of government is required to make fiscal decentralization supportive of economic growth and human resource development
Interest rate elasticity of private sector credit in Nigeria
No full textThis study estimated the interest rate elasticity of private sector credit in Nigeria using the Vector Error Correction mechanism. The variables specified included real private sector credit. real GDP. Prime and maximum lending rates, exchange rate, 9)-day Treasury bill rate, inflation rate and all share index of the Nigerian Stock Exchange. The data utilised covered the period: 1998 Q1 to 2013 Q4. Granger causality tests were performed, and the co-integration analysis of the Johansen system-wide procedure was employed. The results indicated thot private sector credit was fairly interest inelastic in terms of both maximum and prime lending rates. The estimated interest rote elasticity for prime borrowers was -0.27 per cent implying that a one per cent increase in the prime lending rate would lead to 0.27 per cent drop in private sector credit growth. The short-run vector error correction mode! estimates shows that approximately 1.8 per cent of disequilibrium is corrected each quarter by changes in the private sector credit, Given the inelastic nature of private sector credit with respect for all measures of interest! rate, but high elasticities with respect! to income and inflation indices, the efforts of monetary authorities should be directed of ensuring the availability of credit, maintaining price stability and de-risking the business environment in collaboration with the fiscal authority
Nonlinear Adjustments between Exchange Rates and External Reserves in Nigeria: A Threshold Cointegration Analysis
No full textThis study investigates the long run relationship between exchange rate and external reserves in Nigeria during 1990Q1 – 2012Q4. We confirm the existence of threshold cointegration between the variables in Nigeria, as against linear cointegration. Consequently, a two-regime threshold vector error correction model (TVECM) is estimated via maximum likelihood procedure. Model results indicate that cointegration between the variables occurs only when the equilibrium error exceeds an estimated threshold parameter of 0.52. Having partitioned the TVECM into two regimes based on the obtained threshold, we find that the error correction coefficients of the exchange rate in the two regimes are not significant, implying that exchange rates do not respond to equilibrium error during the estimation period. On the other hand, external reserves adjust to correct past divergence, albeit only when the equilibrium error exceeds the threshold parameter. Overall, external reserves adjust to maintain long run equilibrium while exchange rates do not, which seems to align with the monetary authority’s action of deploying external reserves to maintain exchange rate stability in the country
Moving Average Stratification Algorithm for Strata Boundary Determination in Skewed Populations
No full textMoving Average Stratification (MAS) is a new competing and simple algorithm for strata boundary determination in Stratified Sampling. It eliminates arbitrary choice of class interval associated with cumulative square root of frequency method (Dalenius and Hodges Rule (DHR) 1959) and the inherent geometric gaps created within strata by Geometric Stratification (GMS) of Gunning & Horgan (2004). It competes favorably well with DHR and GMS in terms of its precision, simplicity and speeds and therefore recommended for use in strata boundaries determination especially in skewed populations
Measuring the depth of liquidity and efficiency of the Nigerian capital market
No full textThe study developed a spectrum of indicative measures of capital market liquidity using Nigerian monthly stock market indices for the period January 2000 — June 2014. If identified four broad measures of liquidity common in the literature transaction cost, volume price and market impact measures. Based on these three sub-measures of market efficiency coefficient, variance ratio, turnover ratio and illiquidity index were developed based on data availability and other market factors specific to the Nigerian environment. The study examined the impact of capital market liquidity on asset price returns. using a vector auto regression [VAR] model which showed that the Nigerian capital market was illiquid during the review period. While the result indicated the existence of a Jong-run relationship between stock market returns and liquidity. evidence from both the short-run and long-run causality indicated unidirectional relationship between stock market returns and turnover ratio, with no feedback effect. The generalised impulse response function indicated that response of market liquidity to asset price returns is stronger than the response of asset price returns to market liquidity. The result is consistent with the behaviour of an illiquid market
Measuring Respondent Burden in Nigeria: A Case Study of Central Bank of Nigeria Enterprise Surveys
No full textThis paper uses diffusion indices, percentages and reported time spent to measure the respondent burden in survey of foreign assets and liabilities (SOFAL) and business expectations survey (BES). The results show that respondents found it easy but time consuming to complete the SOFAL questionnaire with an average of 24 hours spent in collecting information and over 2 hours to fill the questionnaire. In contrast, respondents found it much easier and quicker to complete the BES questionnaire, spending an average of 47 minutes to collect relevant information from their records and another 36 minutes to complete the questionnaire. The paper identified problems of documentation, cumbersomeness of the survey instruments and lack of motivation of the respondents as main issues of concern
The Relationships of Inflationary Trend, Agricultural Productivity and Economic Growth in Nigeria
No full textThis study investigates the links existing between inflationary trend, agricultural productivity and economic growth in Nigeria using time series data spanning from 1970 to 2011. The results of the analyses indicate a unidirectional causality from inflationary trend to agricultural productivity, unidirectional causality from agricultural productivity to economic growth with no causality between inflationary trend and economic growth. Based on these findings, it is recommended that the Central Bank of Nigeria should pay more attention to the trend of inflation and pursue policies that will ensure single digit inflation
Rethinking sovereign wealth fund in a global perspective - lessons for Nigeria
No full textThe study explores the the global rise in the operation of sovereign wealth funds in a number of commodity and non commodity exporting counties has been of tremendous magnitude. The fact that, most, if not all the oil exporting countries of the world today have SWF clearly confirms the many benefits of having a sovereign wealth fund. Section two of the paper provides a brief review of literature. Section three discusses the rationale for SWFs with some stylized facts. The impact of SWFs on the economy is discussed in section four, section five discusses the significance of SWFs while, an overview of other countries\u27 SWFs is discussed in section six and section seven concludes the paper
The Balance Sheet Channel of Monetary Policy Transmission: Evidence from Nigeria
No full textThis paper assesses the existence of a balance sheet channel of monetary policy transmission in Nigeria by examining whether variation in the official interest rate, with respect to the 2007- 2008 global financial crisis, feeds through to the deposit money banks (DMBs) balance sheets, and ultimately reflects in output and prices. Using quarterly macroeconomic data and stock from 2002 to 2012, the study employs an ordinary least squares (OLS) and autoregressive (VAR) framework to investigate the linkages between policy, DMB balance sheet, output and price. The results reveal the existence of a balance sheet channel in Nigeria with a significant impact of DMBs balance sheet composition on output growth and price. However, output and price did not react homogeneously to changes in monetary policy variations due to the global financial crisis