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Full-Text Articles in Economics

Core Resources Of Corporate Strategy And Performance-Oriented Bank Management Practice: A Lesson For Nigeria, Andrew O. Agbada Mar 2013

Core Resources Of Corporate Strategy And Performance-Oriented Bank Management Practice: A Lesson For Nigeria, Andrew O. Agbada

Bullion

In the past three decades, the Nigerian banking industry has suffered from a host of vices namely miss-management, financial misappropriation, administrative recklessness, etcetera, reflecting incompetence on all levels of management and those have had dire consequences in the economy. In an attempt to re-position the industry on the path of performance, different governments in the past took various corrective steps to no avail. Thus this study seeks to explore the Core Resources of Corporate Strategy and Performance-oriented Bank Management best practice with a view to creating sustainable best practices in bank management in Nigeria. The findings from the study are …


The Role Of Financial Literacy And Consumer Protection In Fostering Financial Inclusion, Dutse Umma Mar 2013

The Role Of Financial Literacy And Consumer Protection In Fostering Financial Inclusion, Dutse Umma

Bullion

The objective of this paper is to establish the link on how financial consumer protection efforts and financial literacy initiatives help bring people on board the formal financial system. Among the key mandate of the Central Bank of Nigeria (CBN) is the promotion of a sound financial system, while a stable financial system cannot be easily captured in a few words, the attributes that could be demonstrated in a system that is described as financially stable will include public confidence and trust in the institutional framework. Financial stability, therefore, serves to instill confidence in users of financial services. It encourages …


Viable Agent Banking And Mobile Payment System In Nigeria, Fatokun Dipo Mar 2013

Viable Agent Banking And Mobile Payment System In Nigeria, Fatokun Dipo

Bullion

Agent banking and Mobile payments, especially in developing economies are rapidly evolving and having tremendous impact on the economies and lives of its citizenry. In addition to reducing costs, these new service offering channel help to encourage customers to use financial services more often, as locations are close by and in places where the customers are familiar with. In light of the afore-mentioned, the Central Bank of Nigeria noted the rapid growth of mobile telephony and the need to leverage existing business network infrastructure as a practical and well thought-out strategy for driving financial inclusion of the unbanked in Nigeria.


Analysis Of Crime Data Using Principal Component Analysis: A Case Study Of Katsina State, Shehu U. Gulumbe, Dikko H. .G., Bello Yusuf Dec 2012

Analysis Of Crime Data Using Principal Component Analysis: A Case Study Of Katsina State, Shehu U. Gulumbe, Dikko H. .G., Bello Yusuf

CBN Journal of Applied Statistics (JAS)

This paper analyses Katsina State crime data which consists of the averages of eight major crimes reported to the police for the period 2006 – 2008. The crimes consist of robbery, auto theft, house and store breakings, theft/stealing, grievous hurt and wounding, murder, rape, and assault. Correlation analysis and principal component analysis (PCA) were employed to explain the correlation between the crimes and to determine the distribution of the crimes over the local government areas of the state. The result has shown a significant correlation between robbery, theft and vehicle theft. While MSW local government area has the lowest crime …


An Assessment Of Monetary Policy Response To Capital Inflows In Nigeria1, Usman M. Okpanachi Dec 2012

An Assessment Of Monetary Policy Response To Capital Inflows In Nigeria1, Usman M. Okpanachi

CBN Journal of Applied Statistics (JAS)

Large and persistent capital inflows can be a double-edged sword. Accompanying its many attractions is the tendency to display a boom and bust pattern (volatility and reversals) in addition to the possibility of causing rapid exchange rate appreciation, inflation and loss of monetary policy independence. These downside risks create very strong impetus for some sort of policy response like sterilization, fiscal consolidation or controls. This study employs a simple analytical framework to estimate the intensity (and effectiveness) of monetary sterilization by the Central Bank of Nigeria (CBN) in response to increased capital inflows in recent years. The study finds evidence …


Inflation And Economic Growth In Nigeria: Detecting The Threshold Level, Sani I. Doguwa Dec 2012

Inflation And Economic Growth In Nigeria: Detecting The Threshold Level, Sani I. Doguwa

CBN Journal of Applied Statistics (JAS)

This paper re-examines the issue of the existence and the level of inflation threshold in the relationship between inflation and growth in Nigeria, using three different approaches that provide appropriate procedures for estimating the threshold level and inference. While Sarel’s (1996) approach provides a threshold point estimate of 9.9 per cent that was not well identified by the data, the technique of Khan and Senhadji (2001) identifies a 10.5 per cent inflation threshold as statistically significant to explain the inflation-growth nexus in Nigeria. Also, the approach of Drukker et al (2005) suggests a two threshold point model with 11.2 and …


Macro-Prudential Regulation And Effective Monetary Policy, Moses K. Tule Dec 2012

Macro-Prudential Regulation And Effective Monetary Policy, Moses K. Tule

Economic and Financial Review

This paper makes a bold attempt to examine some of the issues within the narrow context of monetary policy. Following the introduction, Section 2 examines some conceptual issues including the institutional framework for monetary and macro-prudential policy. Section 3 discusses the objectives and instruments of monetary and macro-prudential policy including indicators of systemic risk, while Section 4 examines at the interaction of macro-prudential with monetary policy and how this could be enhanced. In Section 5, the experiences of other countries with macro-prudential regulation are presented and lessons drawn for Nigeria. Section 6 concludes the paper and provides insights for an …


Welcome Address By Chizoba Mojekwu, Chizoba Mojekwu Dec 2012

Welcome Address By Chizoba Mojekwu, Chizoba Mojekwu

Economic and Financial Review

The welcome address delivered at the 2012 CBN Executive Seminar jointly organized by the Research and Human Resources Departments. This Seminar is carried out annually in pursuant to one of our core values as a learning organisation. The theme of the Seminar; “Macro-prudential Framework and Financial System Stability in Nigeria” was carefully selected to keep you abreast of the new approach to a risk-based supervision of the banking system.


Special Remarks By Sarah O. Alade, Sarah O. Alade Dec 2012

Special Remarks By Sarah O. Alade, Sarah O. Alade

Economic and Financial Review

Special Remarks by the Deputy Governor Economic Policy Directorate of the CBN at the opening ceremony of the annual in-house Executive Seminar (2012) on Macro-Prudential Framework and Financial System Stability in Nigeria, jointly organised by the Research and Human Resources Departments.


Macro-Financial Linkages: Implications Or Monetary And Financial System Stability, Frank Chikezie Dec 2012

Macro-Financial Linkages: Implications Or Monetary And Financial System Stability, Frank Chikezie

Economic and Financial Review

This paper is structured into two parts. Section I discuss the structure of the macroeconomy and the financial industry, and the interactions between monetary policy and the financial system. The section also showed how monetary policy could create the condition for financial stability. Section 2, on the other hand, discuss the implications of macro-financial linkages for monetary and financial system stability with emphasis on how the new credit risk transfer mechanism (securitisation and derivatives) had altered the nature of some macro-financial linkages, with considerable policy implications. The section concluded by referring to the new direction of macro-prudential regulation and the …


Design, Institutional Arrangement And Implementation Of Macro-Prudential Framework, Charles Akoroda Dec 2012

Design, Institutional Arrangement And Implementation Of Macro-Prudential Framework, Charles Akoroda

Economic and Financial Review

The paper says that a sound and well-functioning financial system is viewed as compromising three pillars that are necessary to support orderly financial development and sustained financial stability. It enumerates the three (3) pillars as including: Macro-prudential surveillance and financial stability analysis; Financial system supervision and regulation to help manage the risks and vulnerabilities protect market integrity and good governance of financial institutions'; and Financial system infrastructure including: legal infrastructure for finance; systemic liquidity infrastructure; and transparency, governance and information infrastructure.


Systemic Surveillance And Use Of Macro-Prudential Indicators, Ik Muo Dec 2012

Systemic Surveillance And Use Of Macro-Prudential Indicators, Ik Muo

Economic and Financial Review

This paper examines the practice of systemic surveillance through macro-prudential analyses and use of macro-prudential indicators. The rest of the paper is divided into 6 parts. Part 2 discusses macro-prudential (MP) surveillance; Part 3 covers the key methodologies and approaches while the MP indicators are x-rayed in Part 4. Part 5 reviews Nigerian experience with macro-prudential indicators (MPIs). Part 6 examines other issues in systemic surveillance and the paper is concluded in part 7.


Regulation And Supervision Of Financial Institutions - The Nigerian Experience, Samuel A. Oni Dec 2012

Regulation And Supervision Of Financial Institutions - The Nigerian Experience, Samuel A. Oni

Economic and Financial Review

This paper focuses on the Nigerian experience, with regulation and supervision of financial institutions and is structured into nine sections. Following the introduction, section two discusses the reasons for FIs regulation and supervision, while section three dwells on the meaning and general principles of banking regulation. Section four Nigeria, while section five addresses the structure, organisation and methodology of FIs supervision with particular reference to the Central Bank of Nigeria (CBN). Section six highlights CBN's experience in the regulation and supervision of FIs. In section seven the recent CBN initiatives at strengthening the regulatory architecture are presented. Section eight highlights …


Leadership And Corporate Governance: Challenges For Bank Regulators, Lucy Surhyel Newman Dec 2012

Leadership And Corporate Governance: Challenges For Bank Regulators, Lucy Surhyel Newman

Economic and Financial Review

Given likely challenges to obtaining legislative approvals on acceptable behaviour as foundational to good corporate governance practices, this paper recognizes the attendant challenges for bank regulators and recommends measures that Nigerian bank regulators can explore in enhancing their effectiveness in advocating for and where necessary, enforcing good corporate governance practices, based on universally defined pillars and elements of corporate governance.


Financial System Stability Framework: The Emerging Economies Experience, Mudasiru A. Adegbite Dec 2012

Financial System Stability Framework: The Emerging Economies Experience, Mudasiru A. Adegbite

Economic and Financial Review

The objective of this paper is to review the macro-prudential framework, its tools and its nexus with financial stability. The experience of the emerging market economies in designing macro prudential framework would be highlighted. The remaining sections of the paper are divided into six. Following this introduction, section 2 contrasts macroprudential policy issues against micro-prudential issues. Section 3 discusses macroprudential framework in different jurisdictions. particularly in the emerging market economies vis-a-vis developed economies. Section 4 discusses the experience of some emerging economies in the implementation of macro-prudential policies. While section 5 reviews major benefits of macro-prudential policy analysis. Section 6 …


On Numerical Solution For Optimal Allocation Of Investment Funds In Portfolio Selection Problem, Yahaya Abubakar Dec 2012

On Numerical Solution For Optimal Allocation Of Investment Funds In Portfolio Selection Problem, Yahaya Abubakar

CBN Journal of Applied Statistics (JAS)

In this article, we present a procedure for obtaining an optimal solution to the Markowitz’s mean-variance portfolio selection problem based on the analytical solution developed in a previous research that lead to the emergence of an important model known as the Black Model. The procedure is well presented, illustrated and validated by a numerical example from real stocks dataset obtainable from a popular European stock market.


On The Development Of Residential Property Price Indices For Nigeria, Olowofeso E. Olorunsola, Abiodun S. Bada, Mohammed A. Bamanga Dec 2012

On The Development Of Residential Property Price Indices For Nigeria, Olowofeso E. Olorunsola, Abiodun S. Bada, Mohammed A. Bamanga

CBN Journal of Applied Statistics (JAS)

This work focuses on the development of house price indices for Nigeria, and the estimates of the Nigerian Residential Property Price Indices on housing characteristics are presented. Four main methods of index construction were considered, these are hedonic regression, repeat-sales, stratification and central price tendency methods. It was discovered that econometric methods like hedonic and repeat sales were constraints in constructing residential property price indices for Nigeria by the nature of the data available. Hence, the central price tendency and the sale-based stratification methods which are internationally used measures were applied to the available zonal-level dataset from a survey of …


Understanding The Dynamics Of Inflation Volatility In Nigeria: A Garch Perspective, Babatunde S. Omotosho, Sani I. Doguwa Dec 2012

Understanding The Dynamics Of Inflation Volatility In Nigeria: A Garch Perspective, Babatunde S. Omotosho, Sani I. Doguwa

CBN Journal of Applied Statistics (JAS)

The estimation of inflation volatility is important to Central Banks as it guides their policy initiatives for achieving and maintaining price stability. This paper employs three models from the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) family with a view to providing a parsimonious approximation to the dynamics of Nigeria’s inflation volatility between 1996 and 2011. Of the competing models, the asymmetric TGARCH (1,1) provides an appropriate paradigm for explaining the dynamics of headline and core CPI volatilities in Nigeria, while the symmetric GARCH (1,1) was found to be adequate for food CPI. The results are quite revealing. Firstly, model outcomes indicate …


Quality Statistics In Banking Reforms For National Transformation, Sarah O. Alade Dec 2012

Quality Statistics In Banking Reforms For National Transformation, Sarah O. Alade

CBN Journal of Applied Statistics (JAS)

This paper outlines the important role of statistics in aiding proper planning and achievement of sustainable economic development. The paper elaborates the importance of investing in quality and reliable statistics for policy design and implementation and stresses the vital role statistical information play in effective operation in both private and public sector in every economy. The role of quality, reliable and timely information to a well-functioning financial system and as a guide to monetary policy making is illustrated in the paper. The paper credits accurate statistical information to the success of the Nigerian banking sector reform. However, it suggests that …


Survey Of Foreign Assets And Liabilities In Nigeria 2011 Report, Mohammed M, Tumala, Ajibola I. Olufemi, Babatunde S. Omotosho, Oladipupo A. Baruwa Dec 2012

Survey Of Foreign Assets And Liabilities In Nigeria 2011 Report, Mohammed M, Tumala, Ajibola I. Olufemi, Babatunde S. Omotosho, Oladipupo A. Baruwa

CBN Journal of Applied Statistics (JAS)

No abstract provided.


Keynote Address By Sanusi L. Sanusi, Sanusi Lamido Sanusi Dec 2012

Keynote Address By Sanusi L. Sanusi, Sanusi Lamido Sanusi

Economic and Financial Review

Keynote address by the Central Bank of Nigeria Governor Sanusi Lamido Sanusi at the 2012 Executive Seminar jointly organized by the Research and Human Resource Departments of the CBN titled "Macro-Prudential Framework and Financial System Stability in Nigeria".


Banking Regulation And Risk Management: An Assessment Of The Basel Market Risk Framework, Emmanuel M. Abolo Dec 2012

Banking Regulation And Risk Management: An Assessment Of The Basel Market Risk Framework, Emmanuel M. Abolo

Economic and Financial Review

The article covers instruments and requirements of bank regulation, bank regulation and risk management, Basel I Capital Accord, Basel II Capital Accord, Basel III Capital Accord, Basel Accord and market risk framework, the proposed changes of the Basel III Accord, Basel Accord and Market Risk Framework. The author concludes by saying that the Basel Framework lays emphasis on the relevance of risk management and tries to link the minimum capital requirements of internationally active banks with the amount of tail risk in their trading books.


Macro-Prudential Policies And Financial Stability: A Theoretical Background, Yusuf B. Duniya Dec 2012

Macro-Prudential Policies And Financial Stability: A Theoretical Background, Yusuf B. Duniya

Economic and Financial Review

The paper is organized as follows: section two and three contains conceptual issues and theoretical perspectives, respectively, while section four looked at complementarity and differences between macro-prudential and micro-prudential regulation. Thereafter, section five reviewed objectives and rationale for macro-prudential regulation vis-Ã -vis its institutional framework and scope. Section six looked at instruments of macro-prudential regulation and the implication of the new Basel III, while section seven focused on institutional and governance structure as key elements of macro-prudential regulation. The paper further gave a general insight on how macro-prudential policy framework should be structured in section eight and later concluded in …


Does Government Spending Undermine Monetary Policy In Nigeria?, Emmanuel T. Adamgbe, Peter D. Golit, Izuchukwu I. Okafor Sep 2012

Does Government Spending Undermine Monetary Policy In Nigeria?, Emmanuel T. Adamgbe, Peter D. Golit, Izuchukwu I. Okafor

Economic and Financial Review

In Nigeria, anecdotal evidence suggest that the fiscal/operations of government, especially disbursements from the Federation Account to the three-tiers of government, had over the years created liquidity challenges requiring aggressive monetary management. Against the background, this paper addresses two questions: (i) Does government spending have significant spill-over effects on inflation in Nigeria? (ii) Does government, spending induce a concomitant response by the CBN? ln addition, unlike the sparse literature in Nigeria on these two issues, which essentially relies on constant parameter model we use of time-varying parameter vector autoregressive (TVP-VAR) model with stochastic volatility. Applying this framework allows us not …


Asset Prices, Credit Growth And Monetary Policy In Nigeria, Kama Ukpai, Dinchi J. Yilkudi, Hannah Ukeje Sep 2012

Asset Prices, Credit Growth And Monetary Policy In Nigeria, Kama Ukpai, Dinchi J. Yilkudi, Hannah Ukeje

Economic and Financial Review

This paper contributes to the debate on the monetary policy transmission mechanism in Nigeria. The paper explores the impact of monetary policy on credit growth, and whether these credit developments are capable of influencing asset prices (stock prices) in the Nigerian economy. Using the VAR model spanning annual data from 1986 to 2012, the impulse response functions revealed that the relationship between asset prices, captured by the All-Share Index, and monetary policy, is not direct, but operates mainly through the response of inflation to key monetary aggregate. A positive shock to money supply growth would raise credit and inflation which …


Transmission Of Exchange Rate Shocks Into Domestic Pries Does It Exist For Nigeria, Toyin S. Ogunleye, Nkenchor N. Lgue, Adebola A. Aremu Sep 2012

Transmission Of Exchange Rate Shocks Into Domestic Pries Does It Exist For Nigeria, Toyin S. Ogunleye, Nkenchor N. Lgue, Adebola A. Aremu

Economic and Financial Review

The study re-examined the transmission of exchange shock into domestic prices in Nigeria. The non-recursive Structural VAR methodology was employed to examine long-run pass-through of exchange rate to domestic inflation. It found from the result of the lRFs that exchange rate pass-through to domestic prices in Nigeria do exist; and is incomplete. The results further shows that the response of core inflation to shocks in nominal exchange rate was more pronounced and persistent over time than the headline inflation. Using FEVD, the study found that exchange rate and supply constraints are key drivers of domestic prices in Nigeria. The study …


Threshold Effect Of Inflation On Economic Growth In Nigeria, Sani Bawa, Abdullahi S. Ismaila Jul 2012

Threshold Effect Of Inflation On Economic Growth In Nigeria, Sani Bawa, Abdullahi S. Ismaila

CBN Journal of Applied Statistics (JAS)

It is widely believed that price stability promote long-term economic growth, whereas high inflation is inimical to growth. This paper utilized a quarterly time series data for the period 1981 – 2009 to estimate a threshold level of inflation for Nigeria. Using a threshold regression model developed by Khan and Senhadji (2001), the study estimated a threshold inflation level of 13 per cent for Nigeria. Below the threshold level, inflation has a mild effect on economic activities, while above it, the magnitude of the negative effect of inflation on growth was high. The negative and significant relationship between inflation and …


Testing The Weak-Form Efficiency Market Hypothesis: Evidence From Nigerian Stock Market, Gimba K. Victor Jul 2012

Testing The Weak-Form Efficiency Market Hypothesis: Evidence From Nigerian Stock Market, Gimba K. Victor

CBN Journal of Applied Statistics (JAS)

In recent years, the Nigerian Stock Exchange (NSE) has witnessed an unprecedented growth in market capitalization, membership, value and volume traded. By December 2007, the All Share Index has grown massively over 57,990.2 from 1113.4 in January 1993. This rising interest in investment opportunities in the NSE raises questions about its efficiency. This paper tests the Weak-form Efficient Market Hypothesis of the NSE by hypothesizing Normal distribution and Random walk of the return series. Daily and weekly All Share Index and five most traded and oldest bank stocks of the NSE are examined from January 2007 to December 2009 for …


Simple Sequential Procedure For Modeling Of Item Non-Response In Econometric Analysis: Application To Cv Survey Data, William M. Fonta, Elias T. Ayuk, Eme H. Ichoku Jul 2012

Simple Sequential Procedure For Modeling Of Item Non-Response In Econometric Analysis: Application To Cv Survey Data, William M. Fonta, Elias T. Ayuk, Eme H. Ichoku

CBN Journal of Applied Statistics (JAS)

Item non-response occurs when respondents fail to provide answers to some or all of the questions posed during survey interviews. The standard procedure is to exclude such responses from the econometric analysis. This may be appropriate if the sample included does not differ significantly from those excluded in the analysis. If this is not the case, the econometric analyst faces a sample selection bias problem. The aim of this paper is to provide further evidence using a simple sequential procedure to deal with the problem when using non-randomly selected samples in social science research. The procedure entails different levels of …


Reactions Of Stock Market To Monetary Policy Shocks During The Global Financial Crisis: The Nigerian Case, Aliyu Shehu U.R. Jul 2012

Reactions Of Stock Market To Monetary Policy Shocks During The Global Financial Crisis: The Nigerian Case, Aliyu Shehu U.R.

CBN Journal of Applied Statistics (JAS)

This paper seeks to assess the reactions of Nigeria’s stock market to monetary policy innovations during the period of global financial crisis on the basis of monthly data over the period January, 2007 to August, 2011. In particular, stock market return was regressed against major monetary policy instruments; money stock (M1, and M2) and monetary policy rate (MPR). The theoretical basis for the paper stems from the works of new classical macroeconomics and rational expectation hypothesis (REH). Lucas (1972) postulated that only the unanticipated monetary shock influences real economic activity. Using the GARCH by developed Engle and Bollerslev (1986) and …