RISK MANAGEMENT STRATEGIES FOR MICROFINANCE BANKS IN NIGERIA: A CREDIT RISK FOCUS

This study, Risk Management Strategies for Microfinance Banks in Nigeria with a Credit Risk Focus, explores the critical role of credit risk management in sustaining capital adequacy and promoting financial stability among Nigerian microfinance banks a sector fundamental to financial inclusion but often overlooked in mainstream banking research. Drawing on a comprehensive 19-year dataset (2005-2023), the study empirically investigates the effects of three key credit risk mitigation instruments: Loan Loss Reserves, Collateralization, and Credit Insurance. Using advanced econometric techniques, including cointegration analysis and the Vector Error Correction Model (VECM), the findings reveal that Loan Loss Reserves and Collateralization significantly influence capital adequacy in the short term, while Credit Insurance demonstrates both short-term and long-term effects, making it an essential tool for sustained financial stability. By focusing specifically on microfinance institutions rather than commercial banks, the study addresses a critical gap in the literature and regulatory discourse. The results highlight the importance of strengthening reserve provisioning frameworks, minimizing over-reliance on collateral through diversified credit risk assessments, and expanding the adoption of credit insurance to reduce default exposure and enhance solvency. Furthermore, the study emphasizes the integration of credit risk practices into broader institutional and regulatory mechanisms aimed at reinforcing both capital adequacy and the financial stability of the microfinance sector. The research contributes to theory by applying the Financial Stability Hypothesis within the microfinance context and offers actionable insights to policymakers and financial institutions seeking to build a more resilient, inclusive banking system

IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA

The study examined the impact of external debts on economic growth in Nigeria. Annual time-series from 2001 to 2022, sourced from Central Bank of Nigeria, Nigerian Exchange Group and Securities Exchange Commission, are adopted. The data was subjected to linear regression analysis which was used to estimate the parameters of the model. The findings revealed that external debts services, debts services costs, and exchange rate fluctuations all have a negative relationship with economic growth. This highlights that higher burdens of external debt servicing and greater exchange rate volatility are associated with reduced economic growth. Thus, the study recommends that government should implement robust debt management strategies that prioritize sustainable debt levels and efficient servicing, The government should introduce policies aimed at stabilizing exchange rates to reduce volatility. Moreso, they diversify the economy, especially by promoting sectors less susceptible to external shock, to reduce dependence on external factors that could exacerbate debt and exchange rate vulnerabilities

MICROFINANCE ACTIVITIES AND THEIR LONG-RUN IMPACT ON ECONOMIC GROWTH IN NIGERIA: EVIDENCE FROM ARDL ANALYSIS (1993-2023)

Microfinance has been globally recognized as a catalyst for economic growth, especially in developing economies such as Nigeria. Despite various efforts to improve access to finance, many low-income individuals and small enterprises remain excluded from the formal financial system. examines the effect of microfinance activities savings, lending, and investment on Nigeria's economic growth between 1993 and 2023, using secondary data from the Central Bank of Nigeria. The study employed the Autoregressive Distributed Lag (ARDL) model for the data analysis, the findings show that microfinance savings significantly boost GDP in the long run, while lending and investment exhibit statistically insignificant effects. Inflation and exchange rates negatively affect growth, while government expenditure has a significant positive influence. The study recommends strengthening savings mobilization, improving credit mechanisms, and implementing macroeconomic stabilization policies

EFFECT OF SUSTAINABILITY DISCLOSURE ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

Manufacturing companies in Nigeria are increasingly expected to disclose their sustainability practices, but the financial benefits of doing so are still uncertain. This study explored how different aspects of sustainability reportingeconomic, environmental, and socialrelate to the financial performance of listed manufacturing firms, focusing on return on equity. Using a quantitative research method, the study collected secondary data from the audited annual reports of 10 manufacturing firms listed on the Nigerian Stock Exchange, covering the years 2020 to 2022. These firms were chosen based on their consistent publication of financial and sustainability reports during this period. The data were analyzed using multiple regression analysis to understand the effect of each sustainability component on profitability. The results of the study showed that economic and environmental disclosures were linked to lower financial performance, while social disclosures had no significant impact. However, when all three aspects were considered together, they showed a combined positive effect on profitability. This suggests that companies may hesitate to report sustainability information unless it clearly improves performance. The study recommends that firms adopt a complete and balanced approach to sustainability reporting, as it is more likely to gain support from stakeholders and contribute to long-term business success

EXAMINING THE VALUE RELEVANCE OF ACCOUNTING INFORMATION: EVIDENCE FROM NAIROBI STOCK EXCHANGE (NSE)

Prior studies indicate that with the transition of economy from industrial to a technology-driven service-oriented economy, the usefulness of accounting numbers, especially earnings, has reduced. This is shown by the obscurity of the link?between market stock prices in accounting figures, especially earnings. Based on his perspective, this study examines the extent of stock price movement explained by the change in key accounting metrics using companies listed on the Nairobi Securities Exchange. The sample comprises 56 listed companies across 23 sectors from 2016 to 2023. Using a panel data fixed effects regression, we examine the impacts of key accounting metrics on market share prices. We find that both?(lnEPS ? = 0.137; p < 0.05) and (lnDPS ? = 0.331; p < 0.01) have statistically significant positive relationships with share prices in the market (lnMSP). In contrast, lnOCF (? = 0.01, p <?0.1) and lnTA (? = 0.013, p < 0.1) have positive but insignificant impact effects. The R-squared of the model is 0.471, indicating that the four accounting variables explain 47.1 % of the movement in stock price. The findings align with the Dividend Signaling Theory and the Bird-in-Hand Theory. Additionally, the findings show the existence of a weak-form efficient market in the Nairobi Stock Exchange. Generally,?the study confirms the persistence of accounting information’s value relevance in equity investments in Kenya.&nbsp

MACROECONOMIC FUNDAMENTALS, INTERNATIONAL TRADE AND ECONOMIC GROWTH IN WEST AFRICA COUNTRIES

The study examined the impact of macroeconomic fundamentals, international trade and economic growth in West African countries. The study utilized secondary data obtained from the World Development Indicators. Static panel regression was adopted to analyze the data obtained for the study. The study revealed that inflation negatively impacts economic growth in West Africa. The study also revealed that trade openness significantly affects economic growth in West Africa. Finally, the study revealed that exports significantly affect economic growth in West Africa. The study concluded that macroeconomic fundamentals and international trade affect economic growth in West Africa. The study therefore recommended that the Government should encourage diversification of export products and target new international markets. Supporting value addition and improving product quality will help reduce dependence on a narrow range of exports and enhance resilience against external shocks

WORKING CAPITAL MANAGEMENT AND MANUFACTURING PERFORMANCE IN NIGERIA

Effective working capital is necessary for financial growth, sustainability, reliable liquidity and profitability of a firm. Management working capital involve the optimization of inventory, debtors and creditor to ensure profitability and liquidity of a firm. The paper aims to show how working capital management affect the performance of manufacturing firms in Nigeria during 2013 and 2022. For this, the paper tests two hypotheses: The first is that it assumes no significant relationship between working capital management and return on assets. The second assumes that working capital management does not significantly impact on return on equity of the companies in Nigeria. To evaluate this, we the study examines the relationship between working capital management variables, including stock turnover, debtor collection period, creditor collection period, and current ratio and performance indicators (return on assets and return on equity). The findings suggest that efficient management of these components enhances performance since stock turnover, debtor collection period, and creditor collection period are positively associated with financial performance. Because this has implication for future performance, the paper offers, amongst others that to enhance the profitability firms in Nigeria, there is the need to adopt more financial technologies can streamline working capital management processes, such as automating inventory and receivables tracking. Also, should be strategic extension of creditor collection periods without compromising supplier relationships to improve cash flow management. For instance, stricter credit control measures can be implemented to reduce the debtor collection period and can improve cash availability and profitability

MANAGERIAL EMOTIONAL INTELLIGENCE AND STRATEGIC MANAGEMENT ACCOUNTING PRACTICES OF PHARMACEUTICAL INDUSTRIAL GOODS COMPANIES IN KWARA STATE

In implementing strategic management accounting practices, insufficient attention to managers' emotional intelligence often leads to poorly aligned strategies and weakened organizational performance, especially in the pharmaceutical manufacturing sector where adaptability and collaboration are vital. Therefore, considering managers’ emotional intelligence is crucial for successful SMA implementation. This study investigated the influence of managerial emotional intelligence on strategic management accounting (SMA) practices in selected pharmaceutical industrial goods companies in Ilorin, Kwara State. The study used a survey research design and the population covered all the eight (8) pharmaceutical manufacturing firms in Ilorin metropolis, kwara state. All the pharmaceutical manufacturing firms in Ilorin metropolis were selected for the study, hence, a census study. Primary data used for the study were collected with the use of questionnaire administration to the cost accountants, management accountants, internal auditors, production managers, sales managers and finance directors of the studied firms. Data collected for the study were analyzed using both descriptive and inferential statistics ordered logistic regression. The findings of the study were: self-awareness has a positive significance impact on strategic management accounting practices, self-awareness, empathy, self-regulation and motivation have significance impact on SMA practices in the studied manufacturing firms, p-value greater than 0.001, while social skills does not have significance influence on SMA practices in the study with (?=0.78,p<0.007 ). Based on the findings, it is concluded that emotional intelligence as contingency factors has a substantial influence on the strategic management accounting practices in the selected firms. It is therefore recommended that enhancing emotional intelligence in managers, particularly through training in self-awareness, empathy, self-regulation, and motivation, can improve SMA practices and strategic decision-making. Furthermore, the pharmaceutical manufacturing firms should deeply seized the importance of integrating emotional intelligence development into managerial training programs to optimize SMA outcome

THE EFFECT OF CORRUPTION AND TERRORISM ON THE PERFORMANCE OF THE NIGERIAN EXCHANGE

Thirteen-year time-series data was used for this study from 2011 to 2023 sourced from Nigeria stock exchange, transparency international, and Economic and peace. Data was subjected to Autoregressive distributed lag regression analysis which was used to estimate the parameters of the model. The findings of the study indicate that corruption and terrorism have a negative effect on stock market performance in Nigeria. Based on the findings, the study concluded that corruption and terrorism have negative effect on the performance of the Nigerian Exchange. The study recommended that the federal government should intensify it efforts in the fight against terrorism and also increase effort in providing an enabling environment for businesses to strive and increase employment opportunities. This will reduce the number of citizens available for both financial and violent crime

DETERMINANTS OF TOKEN VALUATION IN BLOCKCHAIN ECOSYSTEMS: EVIDENCE FROM DYNAMIC PANEL ANALYSIS OF CROWDFUNDING AND NETWORK EFFECTS

This study investigates the determinants of token valuation in blockchain ecosystems, focusing on the roles of crowdfunding support and network centrality. Using a dynamic panel dataset of token projects from 2015 to 2023, we apply the Arellano-Bond Generalized Method of Moments (GMM) estimator to control for valuation persistence and address potential endogeneity. The analysis reveals that crowdfunding backing significantly increases token valuation, while network centrality exerts a positive but nonlinear effect. Additionally, ownership concentration negatively impacts valuation, whereas project age contributes positively. Robustness checks using a nonlinear specification and instrumental variable (2SLS) approach confirm these findings. The results underscore the importance of transparent crowdfunding, diversified network ties, and decentralized ownership structures in driving sustainable token performance. Policy recommendations include enhancing disclosure standards for token offerings, incentivizing decentralized governance, and supporting long-term ecosystem development to ensure healthier digital asset markets