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Factors, Preventions and Correction Methods for Non-Response in Sample Surveys
No full textMissing survey data occur because of unit and item non-response. This is practically independent of the method of data collection. As a result of the bias that non-response sometimes introduces in survey estimates, identifying factors that promote it, and taking measures of prevention and correction methods are clearly necessary. The standard method to compensate for unit non-response is by weighting adjustment, while item non-responses are handled by some form of imputation. This paper reviews factors that give rise to nonresponse and the corresponding methods used for its prevention and control. It also discusses their properties
Addressing the Problem of Non-response and Response Bias
No full textSurvey planners and analysts in Nigeria have devoted much more attention to sampling errors at the expense of nonsampling errors (non-response and response errors). Sampling error is the degree to which the sample estimate differs from the average value of the characteristic due to chance. The present discussion will be centered on non-sampling error, which may present serious deficiencies in the statistics and render the survey useless. According to Platek and Gray (1986), “Non-response has been generally recognized as important measure of the quality of data since it affects the estimates by introducing a possible bias in the estimates and an increase in sampling variance because of reduced sample.” They continued by saying that “in a practical way, the size of non-response may indicate the operational problems and provide an insight into the reliability of survey data.” There is need therefore to study the nature and effect of non-response in the surveys conducted in the country
Banking reforms for effective monetary policy transmissions.
No full textThis paper evaluates the effects of the recent banking sector in Nigeria on monetary policy transmission. The remainder of this paper is structured as follows: section two dwells on the transmission mechanism of monetary policy; section three examines the features of the banking sector that affect the conduct of monetary policy; section four presents banking sector reforms in Nigeria while section five examines the impact of the reforms on monetary policy. Section six presents the challenges while section seven concludes the paper
Funded contributory pension scheme, financial deepening and economic growth: what does the evidence say so far about the Nigerian economy?
No full textThe fully funded defined contributory benefit pension system was introduced in Nigeria in July, 2004 to replace the old fiscally unsustainable defined benefit (Pay-As-You-Go) pension system. The new pension scheme, coming at the heels of earlier reforms in Nigeria\u27s financial sector, could be deemed to serve as a further boost towards savings mobilisation, increased financial instruments acquisition and economic growth. After a survey of relevant literature was conducted, secondary data on relevant macroeconomic indices in the Nigerian economy were collected. The data were descriptively analysed. The results showed that TDS (total domestic savings) increased during the post-pension reform period and the increased TDS was not GDP growth induced. Some measures of financial deepening such as DCP/GDP (domestic credit to the private sector as a share of GDP), TBD/GDP (total bank deposits divided by GDP) and CIM (contract intensive money) did not improve appreciably during this period which hints at poor intermediation in Nigeria\u27s banking sector. However, the DCP/GDP + SMC/GDP (the domestic credit to the private sector as a share of GDP plus stock market capitalisation as a share of GDP) measure showed a remarkable improvement during this period due largely to the performance of the SMC/GDP measure. This suggests that the Nigerian capital market achieved some measure of deepening during the post-pension reform period. It is therefore the recommendations of this paper that despite the increased TDS which may have been contributory pension funds derived, efforts must still be intensified to increase the participation rate of the scheme by including states\u27 employees and the informal sector workers in the scheme. The poor performances of DCP/GDP, TBD/GDP and CIM measures must be reversed through a rigorous enforcement of banking regulations and the Nigerian judiciary must be truly reformed such that it can be enabled to enforce contract laws and protect private property rights. In order to further deepen the Nigerian capital market, PenCom must be made to relax the stringent portfolio diversification guidelines that the PFAs are required to comply with. This must be quickly followed by the internationalisation of the Nigerian capital market
The political economy of currency re-denomination by countries.
No full textIn the view of the Bank, redenomination policy for Nigeria was not to translate to revaluation, as market forces were to continue to determine the prices, including interest rates and exchange rates, with the expectation that inflation will be low while exchange rate will appreciate. The objective of this paper is to articulate the reasons and conditions under which countries embark on currency redenomination exercises, and how successful these exercises had been over the years. The paper is descriptive with presentation based on literature reviews. Under the redenomination programme, banknotes were to be issued in denominations of new 50k (old N50), new N1 (old N100), new N2 (old N200), new N5 (old N500), new N10 (old N1000); that is dropping two zeros, while a new N20 would have b e e n t h e h i g h e s t c u r r e n c y denomination in Nigeria. Although the Government explained that the suspension was without prejudice, most analysts argued that the redenomination exercise was within the mandate of the CBN. The paper articulated the reasons and conditions under which countries embark on currency redenomination exercises. It found out that the explanations on currency redenomination exercises rest on both political and economic factors such as national/peoples\u27 identity, credibility of national currency, domestic/international developments, nations\u27 sense of pride, monetary sovereignty and psychological effects. Others include inflation level, macroeconomic and fiscal reforms, regional and sub regional economic interests, government\u27s time horizon, the governing party\u27s ideology, the fractionalization of the government and the legislature, and the degree of social heterogeneity of the particular country
The Central Bank of Nigeria, the liquidity and the sectoral credit allocation
No full textThis article describes the ways in which the CBN has supplied liquidity since 2009. The first is traditional: The CBN supplies liquidity by providing credit through Open Market Operations (OMO) and by lending to depository institutions at the so-called discount window. The second is by enhancing the liquidity of the banks through the Standing Lending Facility (SLF) window. The article notes that the CBN since after banking consolidation exercise in 2005 has departed from its long standing tradition of minimizing its effect on the allocation of credit by supplying liquidity to institutions that it believed to be most in need; at the same time; it neutralized the effects of these actions on the total supply of liquidity in the financial market. This article also discusses the CBN\u27s reasons for reallocating credit to the sector that will most impact the real sector of the economy for growth and employment this time rather than simply increasing the total supply of financial market liquidity. This is because monetary policies have price effects and their output effect cannot be established in a direct firm manner if CBN do not reach out with credit allocation to the sectors that give fillip to growth. The article is divided into 5 sections: Section 1 being the introduction, while section 2 discusses “What is Liquidity” concept and definitions. Section 3 will look at the CBN as a supplier of market liquidity and how CBN has allocated credit to the sectors that impact on the real sector. Section 4 will compare the conventional monetary policy versus unconventional monetary policy while section 5 concludes the article
Financial liberalisation and financial fragility in Nigeria
No full textThis paper conducts an empirical evaluation of the impact of financial liberalisation on financial fragility in Nigeria. The results show that liberalisation has exerted a significant negative effect on financial fragility in both the short run and long run
An overview of the current banking sector reforms and the real sector of the Nigerian economy
No full textThis paper seeks to examine the developments in the banking industry and the real sector of the Nigerian economy since the fourth phase of the reforms which began in 2004. Specifically, the paper reviews the reform programmes and how they have impacted on the flow of credit to the real sector. With the realization that the sector is facing challenges well beyond the realm of finance, other constraints would be identified and, thereafter, policy interventions recommended with a view to making the banking sector reforms more effective
Global Economic Crisis: The need for African government interventions for rapid economic recovery and stability
No full textThe paper reappraises the various measures taken by African governments to curtail the effects of the global economic meltdown. This is with a view to re-emphasizing the need for strong interventions by African governments. The paper is organized into five sections. Aside from the introduction, section two reviews the genesis of the global economic crisis, while section three briefly discusses the impact of the global economic meltdown with greater emphasis on African economies. The global responses as well as African forms of interventions since the global shock are presented in section four of the paper. The summary, recommendations and conclusion are contained in section five
Islamic banking in Nigeria: Issues and prospects
No full textThis paper analyzes the challenging issues and highlight the prospects of Islamic banking in Nigeria. Following this introduction is section two which discusses the evolution of Islamic banking including the basic principles as well as the products/services offered by the system. Section three reviews Islamic banking practices in Nigeria. Section four analyzes the challenging issues and highlights the prospects of practicing Islamic banking in Nigeria. Section five concludes the paper and proffers policy recommendations