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Fiscal operations and the efficacy of monetary management in Nigeria
No full textThis paper underscores the need for predictable fiscal operations at all levels of government as a means of ensuring effective and efficient monetary management in the Nigeria federation. Following the introduction, section two discusses conceptual issues and the review of literature, section three discusses government\u27s fiscal operations and challenges to monetary management, while section four examines fiscal reform and its impact on monetary management. Section five contains suggestion on the way forward and some concluding remarks
The challenges of power supply in enhancing integration processes in ECOWAS member countries
No full textThe birth of the Economic Community of West African States (ECOWAS) in 1975 as an instrument for fostering regional development and unity was also due to the limited economic coherence within the sub-region. This prompted their leaders to embrace regional integration as a central element of their development strategy. There has been increased awareness among these countries that progressive integration holds great potential for minimizing the costs of market fragmentation and thus, represents a precondition for integrating the region into the global economy. Cooperation and integration is also necessary to improve West Africa\u27s competitiveness and position it to maximize the benefits of globalization. Enhancing the region\u27s access to global markets will inevitably dovetail into sustaining economic and social growth. Power and energy are indispensable for sustainable development. Reliable power supply is an absolute prerequisite to economic growth; jobs creation; enhancement of value-added economic activities and support of income-earning activities not only in the urban but especially in rural areas, thus improving living standards. Integration is one of the most promising and cost-effective options for the Economic Community of West African States (ECOWAS) to further the development of its energy sector, in order to gain the environmental, social and economic benefits accruing from a more efficient use of resources. It was in realization of the above that ECOWAS leaders in November 1999 conceived the idea of West African Power Pool (WAPP) and the West African Gas Pipeline (WAGP) aimed at integrating power and energy supply to the region. However, as sound and well conceived this line of reasoning might be, the region still suffers from inadequate power
No full textThis paper explores the hypotheses that stock market development promotes economic growth in Nigeria and attempts to confirm its validity or otherwise using quarterly data from 1990:1 to 2009:4 for Nigeria by employing vector error correction model (VECM) technique on the commonly used stock market development indicators, From the result, the model for the total value of shares traded ration (vr) has the best if followed by the market capitalization ration (mcr) model while the model for the turnover ratio (tr) lagged behind. The results mcr and vr are analysed in this paper, as they performed better than the model for it
Welcome Address at the 2010 CBN Executive Seminar
No full textThis is the welcome address presented at the 2010 Executive Seminar, with the theme Banking Sector Reforms and the Real Sector Developments in Nigeri
An overview of financial sector reforms and intermediation in Nigeria
No full textFinancial systems all over the world play very important roles in the development and growth of the economy. However, the effectiveness and efficiency of the system as well as its scope and capacity varies quite considerably among economies. This is partly because of the varied levels of ,development. More developed financial systems tend to be associated with the more developed economies. This paper advocates the speedy adoption of international financial reporting standard for all Nigerian banks (currently in the pipeline). This reform, while by no means a cure-all for problems of bank transparency, would nonetheless be a significant step forward, if properly implemented. Apart from benefits of higher quality financial information for potential customers, creditors, and portfolio investors, it would also facilitate more effective banking supervision, and make Nigerian banks more attractive for acquisition by larger domestic and foreign banks. Finally, this paper advocates the speedy adoption of international financial reporting standard for all Nigerian banks (currently in the pipeline). This reform, while by no means a cure-all for problems of bank transparency, would nonetheless be a significant step forward, if properly implemented. Apart from benefits of higher quality financial information for potential customers, creditors, and portfolio investors, it would also facilitate more effective banking supervision, and make Nigerian banks more attractive for acquisition by larger domestic and foreign banks. There is also the need to establish more credit bureaus, to allow for the provision of information on borrowers\u27 credit history, to address the problem of adverse selection and moral hazards, discussed in the literature
Reforming the Nigerian Banking Sector: Some emerging issues.
No full textWhen the ongoing reforms of banking in Nigeria commenced, there were several arguments against the seeming harshness of the measures. As the revelations increased, the argument became the manner the revelations were made. All these pointed to the capacity of humans to resist change. lt was generally accepted that things went terribly wrong and some drastic steps needed to be taken. This paper examines existing and emerging financial reforms in the Nigeria banking sector. The outcome of the greed-induced crisis was not peculiar to Nigeria, as banks failed all around the world as their capital was eroded. There are obvious /lessons to be learned from these developments, perhaps most important of all is that framework and institutional capacity for handling financial crisis needed to be developed and systematically strengthened
The performance of Nigerian stock exchange sectoral indices: January 2009 December 2010
No full textThe paper reviews the performance of the sectoral indices during the first twenty-four months of their existence, i.e., between their inception in January 2009 and December 2010. The authors seek to examine not only the raw performance of the indices but also their risk-adjusted performance. The results of the analysis will facilitate the allocation of capital by institutional as well as individual investors in the Nigerian equity market. The rest of the paper is organized as follows. Section 2 discusses the transformation of the indices and their correlation. In section 3, we examine the nominal performance of the sectoral indices while section 4 discusses their risk-adjusted performance. Section 5 concludes the paper. The paper concluded that since the dataset largely covered the peak periods of the global financial and economic crises which had an adverse impact on stock performance globally (the NSE ASI dropped by 33.8 per cent in 2009, having dropped by 45.8 per cent in 2008), this study can be extended to cover periods after the global financial and economic crises. This paper could form a basis for performance analyses in the post-crises period
Is the Stock Market a Leading Indicator of Economic Activity in Nigeria?
No full textIn an effort to address the lacuna in leading indicator studies of African economies and Nigeria in particular, this paper examines the causal relationships among stock market prices, real GDP and the index of industrial production in Nigeria, using quarterly data from 1984Q1 to 2008Q4. Granger causality tests indicate bidirectional causality between stock prices and GDP but no causality between stock prices and industrial production or between GDP and industrial production. Stock prices and GDP are found to be cointegrated, leading to the estimation of vector error correction models. Out-of-sample forecasts constructed with AR(1), ARIMA, structural ARIMA, and VEC models indicate that stock prices contain information that can be used to improve the accuracy of GDP forecasts and enhance the conduct of macroeconomic policy in Nigeria
The role of economic community of West African States (ECOWAS) in promoting borderless trade in West Africa.
No full textThe Economic Community of West African States (ECOWAS) is a regional group of fifteen countries, founded in 1975. Its mission is to promote economic integration in all fields of economic activities, particularly industry, transport, telecommunications, energy, agriculture, natural resources, commerce, monetary and financial questions, social and cultural matters . This paper examines the role of CBN economy and monetary policies on the heels of borderless trade amongst the ECOWAS State. ECOWAS aims to promote peace, co-operation and integration in economic, social and cultural activity, ultimately leading to the establishment of an economic and monetary union through the total integration of the national economies of member states
Analysis of Revenue Generation as A Tool for Socio-Economic and Infrastructural Development in Nigeria
No full textThe paper analyses the federal government revenue vis-àvis the provision of socio-economic Volume 34, No. 4 October - December 2010 and infrastructural development in Nigeria from 1970 2008, the centerpiece, which is improved productivity and standard of living. To this end, the paper is divided into five sections. Following this introductory section, section two explains the concept of government revenue and infrastructural development as well as theoretical and empirical literature. In section three, we examine the sources and structure of government revenue. Section four focuses on the trend in government revenue and expenditure and the state of some infrastructure in Nigeria. It also discusses challenges of revenue generation and utilization for socioeconomic and infrastructural development, while recommendation was discussed in section five