Economics Commons^™

Funded Contributory Pension Scheme, Financial Deepening And Economic Growth: What Does The Evidence Say So Far About The Nigerian Economy?, Victor O. Asekunowo

Bullion

The 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's 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 Challenges Of Power Supply In Enhancing Integration Processes In Ecowas Member Countries, O. L. Akinboyo

Bullion

The 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's competitiveness and position it to maximize the …

Central Bank Of Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December 2010, Central Bank Of Nigeria

CBN Annual Report

2010 annual report reviews the operations of the Central Bank of Nigeria (CBN) and appraises the macroeconomic policies in 2010. the report is structured into two parts. Part 1 reviews the corporate operations of the bank, while the part 2 evaluates the performance of the economy against the challenges in both the thrust of monetary policy and other financial measures was to improve liquidity and enhance the efficiency and stability of the financial system without compromising the primary goal of monetary and price stability.

Central Bank Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December, 2009, Central Bank Of Nigeria

CBN Annual Report

The Central Bank of Nigeria (CBN) Annual Report and Statement of Accounts for the Year Ended 31st December, 2009 revealed that the country's Gross Domestic Product (GDP) grew by 6.7% YoY, compared to 6.0% in the previous year. This growth was driven by the non-oil sector, with the non-oil GDP growth rate of 8.3%. Within the non-oil sector, the agricultural sub-sector grew by 6.2%, while the whole-sector and retail sectors recorded growth rates of 11.5 and 10.5 per cent, respectively. The robust output recorded during the previous three years was driven by the government's optimism, which reflected in the oil …

How Much Do Trading Partners Matter For Economic Growth? By Vivek Arora And Athanasios Vamvakidis: A Review, D. J. Yilkudi

Economic and Financial Review

The paper is a review of the paper "How much do trading partners matter for economic growth? by Vivek Arora and Athanasios Vamvakidis". The paper empirically examined the extent to which a country's long-term economic growth was influenced by the economic fortune of its trading partners. The study used panel data for over 100 countries to see if trading partners' growth had a strong effect on domestic growth. A strong relationship was found between the economic growth of a country and the economic conditions of its trading partners.

Determinants Of Demand Pressure In Nigeria's Foreign Exchange Market: An Empirical Analysis, A. Englama,, H. T. Sanni, O.O. Duke, T.S. Ogunleye, F.U. Isma'il

Economic and Financial Review

This study investigates factors that influenced the demand pressure in the foreign exchange market prior to the recent reforms. We examined the theoretical issues and empirically measured the determinants of the demand pressure in Nigeria’s foreign exchange market. We adopted a simple ordinary least square (OLS) to estimate the impact of exogenous variable on the dependable variable. We found from the empirical results that brand pressure was prevalent during the past period. From the literature, demand pressure m s attributed to a number of factors which include, among others, the high incidence of currency substitution arising from speculative trading, liquidity …

Determinants Of Capital Flows In Nigeria And Challenges For Macroeconomic Stability, A. Englama, N. C. Oputa, G. K. Sanni, M. U. Yakub, O. Adesanya, Z. Sanni

Economic and Financial Review

Capital flows into developing countries in the 1960s through the 1980s were mainly in the form of overseas development assistant (ODS) to governments as well as private capital through domestic multinational bank. Nigeria, like unit developing countries, is characterized by a low' level of domestic savings and in order to attain a desirable level of investment that would guarantee sustainable development, the economy needs some foreign sayings to bridge the savings investment gap. These savings come in the form of 'new money’ or capital inflows which are expected to provide financial capital for economic activities. Foreign participation is directed associated …

Determination Of Interest Rate Saharan African Countries: A Analysis., A. O. Folawewo, E. A. Udeaja

Economic and Financial Review

A major indicator of banking sector efficiency is interest rate spreads (IRS), which have been found to be very high in African countries. This paper analysed the determinants of interest rate spreads in Sub-Saharan African (SSA) from a macro perspective, that is, using aggregate banking sector data, and focusing macroeconomic and market determinants. The study used ex-ante measure of spreads, that is, differences between interest rates on lending and deposit. Using annual data covering 33 countries, the result to obtained from the paper suggested that different market and macroeconomic policy variables played significant role in explaining variation in IRS in …

Effects Of Poverty On Risk Attitudes Of Farmers In Benue State Nigeria, G. C. Aye, O. Oji

Economic and Financial Review

The Nigerian agriculture is characterised by low productivity low fam incomes and low levels of

technological adoption and we inefficient production technique. This poor state of Nigerian agriculture is related to farmers' attitude towards risk in the adoption of production techniques, as well as risk in the production and socioeconomic environment, this study therefore sought to specifically to: determine the extent of poverty among farmers in the area; assess the risk attitude of the farmers and determine the effect of poverty variables on risk attitude of farmers. A multi-stage random sampling technique was used for selection of respondent. Data were …

The Dominant Channels Of Monetary Policy Transmission In Nigeria: An Empirical Investigation., Mbutor O. Mbutor

Economic and Financial Review

The paper aims at identifying the dominant channels of monetary policy transmission in Nigeria. The standard vector autoregressive methodology was adopted. The inferences from the study shows that the lending rate provides the strongest nexus for the propagation of monetary policy impulses in Nigeria.

Economic Liberalization And Job Creation In Nigeria, Olayinka Idowu Kareem

Economic and Financial Review

This study examines the concept of liberalization and effects of economic liberalization on job creation in Nigeria. It narrows globalization to economic liberalization and looks at its effect on job opportunities in Nigeria. It recommends that the government should undertake regulated/guided liberalization policies such that the dictate of the economy will not be left in the hands of oligopolists.

Corporate Governance Of Banks In Nigeria: Determinants Of Board Of Directors' Effectiveness., Ukpai Kama, Chuku Chuku

Economic and Financial Review

The paper seek to ascertain the characteristics that determine the effectiveness of the bank boards in carrying out its roles of monitoring and advisory. It suggests that empowering boards through incentive packages and enlarged responsibilities to monitor, sanction, reprimand would be a way forward for the Nigerian banking sector.

Central Bank Of Nigeria Annual Report And Statement Of Accounts For The Year Ended 31st December 2008., Central Bank Of Nigeria

CBN Annual Report

The Central Bank of Nigeria (CBN)'s 2008 report evaluates macroeconomic policies and outcomes, focusing on corporate operations and the economy's performance against domestic and external economic and financial developments. The CBN's monetary policy stance and banking and financial measures were deployed to ensure price stability and financial sector soundness. Despite the global economic downturn, the financial system remained relatively stable and overall macroeconomic performance was satisfactory. The formal financial system at end-December 2008 comprised the CBN, the Nigeria Deposit Insurance Corporation, the Securities and Exchange Commission, the National Insurance Commission, the National Pension Commission, and various banks. The banking sector …

Central Bank Communication And Monetary Policy: The Case Of Central Bank Of Nigeria, Egbuna N. E.

Bullion

The importance of concise communication in monetary policy making cannot be over emphasised . A g o o d communication of policy definitely strengthens the institutional independence of central banks and enhances the effectiveness of monetary policy. However, no one single method could fit all when it comes to designing good communication strategies because central banks face different constraints as they try to fine-tune their messages. With current reforms and financial liberalization, there is added impetus for increased communication between the Central Bank of Nigeria (CBN), market operators, stakeholders and the public in general. Monetary policy needs to be explained …

Electronic Banking In Nigeria: Problems And Prospects From The Consumer's Perspective, Agbada A.O

Bullion

This paper explores the adoption of electronic banking [e-banking] in Nigeria. It examines the problems and prospects of e-banking in Nigeria from the consumer's perspective. The research findings show that a number of problems ranging from human, operational and technical constraints hinder the maximum utilization of services provided through e-banking channels in Nigeria. However, the results from the study have also revealed that despite these problems, the rate of adoption of e-banking services in Nigeria is phenomenal as banks have recorded outstanding successes in some areas. Nigeria is a consuming nation and based on the experience from other sectors of …

Five Decades Of Agricultural Policies In Nigeria: What Roles Has Statistics Played?, Akinboyo O. I

Bullion

All over the country and internationally, the publications of the Central Bank of Nigeria (CBN) such as the Annual Report and Statement of Accounts, the Statistical Bulletin, Economic and Financial Review, the Bullion and Nigeria: Major Economic and Banking Indicators and those of the National Bureau of Statistics (NBS) have become a veritable source of data and reference materials on Nigeria. Without basic i n f o r m a t i o n o n e c o n o m i c developments, it would be very difficult for policy makers to assess economic performances. The f o …

Risk Exposure And Management In Cross-Border Banking., Sheriffdeen A. Tella

Economic and Financial Review

The title of this paper connotes the fact that risk-based supervision and inflation targeting are mutually inclusive policies that have to be carried out simultaneously. This is not true. The two frameworks can be adopted at the same time but they do not need to go pari passu. To that extent the paper can be regarded as two-in-one. In this connection, the two frameworks are treated separately but within the context of a single paper. We looked at their challenges and prospects in monetary policy formulation and implementation in the Nigerian economy. The rest of this paper is divided into …

Asset Price Movement And Derivatives: Implications For Risk-Based Supervision And Effective Monetary Policy., Biodun Adedipe

Economic and Financial Review

The consideration of asset price movements and monetary policy has attracted a lot of attention in the last few decades, as asset prices moved upwards significantly and there arose the general perception that there are bubbles in those prices. The argument revolves around the role that monetary policy can play in this whether it can be used to prick the bubble before it is due for natural burst, or it can be designed and implemented in such manner as to prevent bubbles to grow in the first place.

Nigerian Stock Market Reflection Of The Global Finance Crisis: An Evaluation, Sere- Ejembi A. A.

Bullion

With its roots in banking, the sub-prime mortgage crisis that commenced in the United States in 2007 soon resonated in other sectors of its financial system, and the economy, at large. It spread quickly to the developed economies in Europe, including the United Kingdom, and Asia. In the case of the Nigerian stock market, following initial relative insulation, the speed of contagion and response was comparatively slower. However, the effects began to manifest in the first quarter of 2008. The objective of this paper, therefore, is to review the global financial crisis, in the context of its recent effects on …

Investing Africa's External Reserves In Africa: Issues, Challenges And Prospects, Onwioduokit A. E.

Bullion

The paper underlined the challenges and opportunities for managing Africa's external reserves by Africans after identifying several pre-conditions for an African currency to emerge as international currency and noted that these conditions have not yet crystallized in Africa. Although African external reserves have grown over time the benefits of such growth in terms of facilitation of domestic financial markets and even the earning are not commensurate with the reserves growth rate. The non-convertibility of African currencies, volatile macroeconomic and sometimes volatile political environment coupled with the shallowness of the domestic markets are the main challenges that are faced by the …

Special Remarks At The Seminar On: "Financial Sector Developments: Challenges For Risk Based Supervision And Effective Monetary Policy Implementation, C. N. Mordi O.

Economic and Financial Review

This is the Special remarks.at the opening ceremony of the 16th edition of the annual in-house Executive Policy Seminar organized by the Research Department, in collaboration with the Human Resources Department. As usual, the seminar is aimed at availing the Executives of the Bank the opportunity of brainstorming on contemporary economic issues in the economy and the globe at large. In this respect, the theme of this year's Seminar "Financial Sector Development: Challenges for Risk-Based Supervision and Effectiveness of Monetary Policy Implementation" could not have come at a more opportune time, given the current financial meltdown ravaging global markets. This …

The Concepts And Practice Of Risk-Based Supervision., J. A. Afolabi

Economic and Financial Review

This paper seeks to examine the concept and practice of Risk-Based Supervision (RBS). For ease of discussion, the paper has been segmented into five sections. After the introduction, sections 2 and 3 examine the Conceptual Issues in Risk-Based Supervision and Country Experiences. Section 4 looks at the framework of RBS in Nigeria while section 5 concludes the paper.

Supervising Cross-Border Banks: Matters Arising., Kim Norris

Economic and Financial Review

An essential element of banking supervision is that supervisors supervise their banking groups on a consolidated basis, adequately monitoring and, as appropriate, applying prudential norms to all aspects of the business conducted by each group worldwide. This paper examines supervision of banking groups on a consolidated basis which goes beyond accounting consolidation. It simply implies that there is a group-wide approach to supervision whereby all risks taken on by each banking group are taken into account wherever they are booked (i.e. in the bank or in a subsidiary; in Nigeria or elsewhere).

Implementation Of Basel Ii: Any Role For International Financial Institutions?, C. E. Nwandikom

Economic and Financial Review

This paper examines the three pillars of Basel II which provide a broad and coherent framework for linking regulatory capital to risk, for improving internal risk measurement and management and for enhancing supervisory and market discipline at large, complex and internationally-active banks.

How Relevant Is Risk-Based Supervision For Pension Funds: The Regulators Perspective., Musa A. Ibrahim

Economic and Financial Review

Over the past two decades, privately managed pension systems have expanded greatly to play a central role in the provision of retirement income worldwide. The design and operation of these systems vary extensively, but the basic reason for their adoption remains unique across the board: countries need to provide affordable and sustainable income for their retired citizens. Achieving this objective becomes a challenging task in the face of the uncertainties created by globalization and rapid integration of financial markets. The utilization of risk-based methods originates primarily in the supervision of banks. In recent years, it has increasingly been extended to …

Overview Of Financial Sector Developments In Nigeria., S. N. Ibeabuchi

Economic and Financial Review

The objective of this paper is to review the various developments (reforms) in the Nigerian financial sector since 1986, including the recent banking industry consolidation.

The Challenges Of Good Corporate Governance For Effective Risk-Based Banking Supervision., Chris C. Itsede

Economic and Financial Review

Corporate governance has changed tremendously over the past two decades. These changes have been driven by new laws, regulations, guidelines and rising investor and public expectations. In the past, many boards were under the thumb of their chief executive officers (CEOs); this is no longer the case. Today, boards generally strive to govern their companies by benchmarking a set of best practices which have emerged and codified in corporate governance laws, stock exchange listing rules and company annual reports. Many individual directors are willing to accept these additional responsibilities. In this paper, the importance and principles of Corporate Governance is …

Monetary Policy, Risk-Based Supervision And Financial Sector Developments: International Experience., Ayodele Odusola

Economic and Financial Review

This paper describes an efficient banking supervision as essential to a virile and stable financial system and also fostering the linkage between the financial sector and the aggregate economy as well as to reduce the likelihood and magnitude of a financial crisis. Recent development across the globe has shown that dynamic diagnostic instruments are required for identifying and managing risks, vulnerabilities and development priorities in the financial sector. The need to address the unfolding complexity of supervising the banking system in the context of a globalized world underscores the introduction of the joint IMF-World Bank Financial Sector Assessment Program (FSAP) …

The Implementation Of Basie Ii: Issues, Challenges And Implications For Nigeria., O. K. Ibedu

Economic and Financial Review

The significant development of Basle II throughout the world has meant that financial institutions and insurance companies must manage and measure risk in new ways. This paper is intended to provide the participants at the Executive Seminar with a firm foundation of the state of Basle II Accord principles and provide the tools and techniques to grapple with its implementation. This paper is divided into eight parts. Following this introduction, Part 2 discusses the necessity for a capital accord, the emergence of Basle I and the Basle II Accord. Part 3 discusses in brief the concept of Risk Management and …

The Imperatives Of Developing Risk Management Framework For Individual Risk Elements In Nigerian Banks., Emmanuel M. Abolo

Economic and Financial Review

This paper states that for a bank to be successful over the long term, it has to effectively manage its opportunities, threats and uncertainties. The point of risk management is not to eliminate it. That would eliminate reward. The point is to manage it. That is, choose where to place bets and where to avoid betting altogether.