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The role of the Central Bank in the Nigeria financial system
No full textThe central bank is pivotal in the management of the national economy. lts role is not only to regulate and monitor the financial system, but also to ensure its development, prevent financial distress which could undermine confidence in the system as well as facilitate sustained growth. This paper presents an overview of the Nigerian financial system, the functions of the Central Bank of Nigeria (CBN). It examines the Bank\u27s monetary management, surveillance and promotional roles and the challenges for the CBN. The study concludes that, the enhanced operational autonomy of the CBN has provided a unique opportunity for the Bank to reposition itself for the challenges of the future. The merit in the instrument autonomy is that the Bank can now deal promptly and decisively with emerging challenges in the financial system without undue political pressure. ln the context of that autonomy, the CBN has taken steps
Macroeconomics/Structural policies and financial sector stability: The challenges
No full textThe financial system plays an important role in the process of economic growth and development of a country. A financial system consists of various institutions, markets, instruments and operators that interact within an economy to provide financial services. It plays the crucial roles of lubricating the payment mechanism, resource mobilisation and credit allocation. The Nigerian financial sector comprises the regulatory/supervisory authorities, deposit money banks, and other nonbank financial institutions. The objective of this paper is to examine the effect of macroeconomic/ structural policies on the financial sector, as well as the challenges of maintaining financial sector stability in Nigeria. The paper reviews the various sectoral policies that have been implemented in the Nigerian economy since the 1990s. Specifically, the paper examines how these policies have contributed to financial sector stability as well as the inherent challenges. The study concludes that, CBN has taken proactive steps to strengthen the financial sector through various regulatory, prudential and contingency measures, aimed at ensuring the soundness and stability of the sector. ln this regard, the Bank has designed measures to enhance the capital base of banks and promote professionalism in the financial services industry. lt also encouraged the adoption of international best practices, including the new Basle capital accord and uniform accounting standards. The need to further strengthen the regulatory and supervisory framework of the CBN became more compelling with the adoption of universal banking in 2001
The experience of bank examination in financial sector surveillance
No full textThe financial intermediation role of banks is very crucial to the efficiency and growth of every economy. The safety, stability and soundness of the banking system is therefore paramount to the regulatory authority of the financial system of any nation. Between 1929 and 1951. The Nigerian Banking system experienced a few banking crises due mainly to the absence of legal and regulatory framework for the operation of banking business in Nigeria. The bank examination function was established by the Central Bank of Nigeria, to monitor banks compliance with the regulatory and prudential requirements governing the conduct of banking business to ensure the overall safety, stability and soundness of the financial system. This paper examines the objectives of bank examination, the functions of bank examination department, types /areas of examination, examiners report and the experience so far on bank examination. The study concludes that, the tne concept of Bank Examination is premised on the imperative of ensuring that banks operate according to laid down rules encapsulated in frameworks that are intended to guarantee the overall safety, stability and soundness of the Nigerian Banking System. The regulatory authority\u27s conscious effort to foist a robust supervisory apparatus had ensured a fairly stable financial system, notwithstanding the isolated incidence of bank failures, which, in any case, is not peculiar to Nigeria
Foreign private investment in Nigeria - 2002
No full textThis report presents the results of the survey on foreign private investment in Nigeria in 2002. The survey covered 254 establishments that are either fully foreign owned or are in partnership with Nigerian agencies or enterprises doing business in Nigeria. The net flow of foreign investment into the Nigerian economy rose by 143 per cent from N3,377.0 million in 2001 to N8,206.8 million in 2002. The analyses of the survey returns are presented in eight parts
Rationale behind oil, gas, and electricity industries reforms: is there a consistency by Mohammad Mazraati et al. (22nd Annual North American Conference of the USAEE/IAEE, 2002) - a review
No full textThe paper investigated the main rationale behind the energy industry reforms. It also sought to examine the relationship between inter-industry reforms and ascertain the soundness of the rationale as well as their consistencies. The paper was structured into six sections opening with an introduction. Sections two, three and four reviewed reforms in the oil, electricity and gas industries, respectively. Section five discussed the performance against expectation while section six presented the concluding remarks
The role of equipment investment in Nigeria\u27s growth process
No full textThis paper examines empirically the role of equipment investment in Nigeria\u27s growth process. A growth accounting equation was utilized to analysed the contribution of private capital stock to growth. A Granger-causality test was also employed to explore the relationship between components of domestic fixed investment, productivity growth, labour force growth and economic growth. In addition, regression analysis was employed to complement the other methods. The first conclusion is that for sustainable growth, private capital stock growth need to rise to a level of 9 percent, for fixed investment- GDP ratio to oncrease by 18 percent. In the second approach, the result do support the view that there is a strong connection between equipment investment and economic growth, there was causal links between equipment investment and economic growth, there was causal links between equipment investment and productivity growth; and GDP growth and labour force growth in one direction as well. The third approach reveals that equipment investment and other components of fixed investment are positively related to growth, however, aggregate fixed investment has a negative impact on output growth. This unexpected result was due to high GDP volatility in Nigeria. The general conclusion is that equipment investment, as well as other components of investments are necessary for growth process in Nigeria. Therefore, government should increase budgetary allocations to equipment production sectors and increase foreign exchange allocation for importation of fixed assets or capital
Infrastructure development strategy In Africa under NEPAD: imperatives for success
No full textThis paper summarizes some of the achievement in the infrastructure development strategy in Africa under the New Partnership for African\u27s Development (NEPAD) under the imperatives for success are proposed
Foreign Private Investment in Nigeria 2001
No full textThe netflow of foreign investment into the Nigerian economy rose by 0.9
per cent from N3,347.0 million in 2000 to N3,376.4 million in 2001.
Companies of United Kingdom origin accounted/or the bulk of the flow in the
review period. The cumulative level of foreign direct investment in the country,
mainly in Mining and Quarrying as well as Manufacturing and Processing
sub-sectors was N160,882.2 million. The proportion of paid-up capital plus
reserves in total investment in the Manufacturing and processing sub-sectors
was 91 per cent in the review period. The value of total stock of fixed assets in
the review period was N300,340. 7 million, indicating an increase of 0.8 per
cent over the _figure in the preceding year. Further analysis showed that, the
current reserves for depreciation of fixed assets rose from N 1,444.6 million in
2000 to N1,458.8 million in 2001
Legislative-Executive Relations and the Budgetary Process in Nigeria: an evaluation of the 1999 Constitution.
No full textSince the transition to civilian rule in May 29, 1999, the country has witnessed conflicts between the legislature and the executive over budget matters. These conflicts are not only restricted to the federal level but also a common phenomenon at the state government level. This paper discussed the poor relationship over the budget matters and made suggestions on how to improve the process. The paper surveyed the literature on the legal framework of the budgetary process in several countries. Thereafter, the paper examined the legal framework for the budgetary process in Nigeria as well as the issues involved. The paper concluded that the 1999 constitution grants extensive powers to the legislature over budgetary matters such as unlimited powers of amendment of the draft budget, auditing and monitoring and unlimited time frame for the approval of the budget. Finally, the paper suggested that the powers though necessary for the purpose of checks and balances, however, should be exercised with caution
Determinants of commercial bank interest rate spread in a liberalized financial system: empirical evidence from Nigeria (1989-2000)
No full textThis paper provided empirical evidence on the determinants of interest rate spread in a liberalized financial system for the period 1989-2000, using selected banks in Nigeria. Ex-ante interest rate spread equations were estimated using bank balance sheet and income statement as well as macroeconomic data. The results showed that macroeconomic and monetary policy/financial regulation factors were more important determinants of commercial banks\u27 interest spread than bank level factors, Inflation rate, GDP, .financial deepening, cash reserve requirement, risk premium, treasure bill rate, loan asset quality, liquidity risk and non interest expenses were the most important.factors that affected commercial banks\u27 interest rate spread during the period. The study also provided evidence on the quantitative impact of changes in the independent variables on interest rate spread