The Effect of Financial Reforms on Banking Performance in an Emerging Market: Nigerian Experience

The paper examines effect of financial reforms on banking performance in emerging market: Nigerian experience. The study covers between 1992 and 2011, because the last reform in banking sub-sector was in 2005 during Prof. Charles Soludo as CBN governor (Pre-Lamido era). Automated Statistical Package Technique (ASPT) was used to analyze the model and Ordinary Least Square method was adopted to analyze existing relationship of variables and their behaviors. The study reveals that the effect of financial reform on banking performance is mixed. It was discovered that financial reform is not a causal factor for effective banking performance and development; but there is need for strong capital account policy to regulate short- term capital flow and exchange rate volatility. In addition, the Central Bank of Nigeria (CBN) should ensure the stabilization of financial markets and banks in order to control and manage risk aversion among domestic and foreign investors in the economy. The paper further recommends non-stopping reforms in the financial sector so as to serve as check and balances, which would be used to manage and control economic distortion’s trend in the financial sector. Moreover, policymakers such as Monetary Policy Committee (MPC); regulatory government ministries, departments and agencies (MDAs) such as Ministry of Finance, CBN, Nigerian Deposit Insurance Corporation (NDIC), etc. should adopt economic policies that could strengthen and promote allocation of efficient resources to achieve efficient bank performance in Nigeria. Keywords: Financial reform, Banking, Deregulation, Financial markets, CBN, NDIC, Nigeria

Poverty, an African Epidemic: Empirical Evidence of Nigeria

This study examines poverty as an African epidemic, with an empirical evidence of Nigeria. Poverty unarguably remains a global phenomenon that is complex and multi-dimensional in nature. Poverty is an economic situation where a household income is inadequate to meet the minimum nutritional need for growth and long-term survival (World Bank, 1996). The primary source of data was adopted via questionnaire and oral interview. A simple correlation technique was adopted to address the significant relationship among the responses of the respondents gathered though the questionnaire to derive logical conclusion. The study concludes that the blame on poverty is placed on modes of designing and implementing developmental programmes, which are seen to have failed to take the basic needs of the poor into account and historical factors together with the existing social structures that have developed from them. The paper further discovered lots of disparities in people’s income, gender, health, education etc. The study however, recommends that government should articulate a bold vision and establish concrete targets for improving and saving the lives of those threatened by diseases and hunger by way of introducing grants to ‘senior citizens’ – old people, providing monthly allowance to them, ensuring support for children that are orphan, homeless, and even with disabilities etc., in all areas of life. The study further recommends that government in all levels should be identified with the importance of using critical statistical data to corroborate progress report in order to assist in monitoring and implementing poverty alleviation programmes initiated by federal government, and to meet the target of Financial System Strategy, FSS 2020 and Millennium Development Goal (MDGs) by 2015. Keywords: Poverty, Alleviation programmes, Nigeria, Sectorial approach, LAPO, United Nation Development Programme (UNDP), NAPEP

Volatility Transfer from Developed Countries to Emerging Markets: Evidence from Nigeria

In this paper, we examine the existence of volatility transfer from stock exchanges of 5 major developed economies of USA (NYSE), Canada (S&PTSX), France (CAC) Germany (DAX) and UK (FTSE) to the Nigerian Stock Exchange (NSE). To ascertain the relationship between these five bourses and the NSE, we employ the Ordinary Least Square Estimation (OLSE) technique. Moreover, we use the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to determine the existence or otherwise of volatility transfer from these five advanced bourses to the NSE. The results of this study confirm the existence of volatility transfer from the NYSE, S&PTSX, CAC, DAX and FTSE to the NSE from January 1st January 2006 to 15th March 2010. Following from this, it behooves on policy makers in Nigeria to pay particular attention to events in these bourses and in these economies and proactively take prompt actions when necessary. Keywords: Global Financial Crisis, Bourses, Contagion, GARCH, Meltdown, OLSE, Volatility Spillover, Volatility Transfer

Longitudinal Changes of Fixation Location and Stability Within 12 Months in Stargardt Disease: ProgStar Report No. 12

Purpose: To investigate the natural history of Stargardt disease (STGD1) using fixation location and fixation stability. // Design: Multicenter, international, prospective cohort study. // Methods: Fixation testing was performed using the Nidek MP-1 microperimeter as part of the prospective, multicenter, natural history study on the Progression of Stargardt disease (ProgStar). A total of 238 patients with ABCA4-related STGD1 were enrolled at baseline (bilateral enrollment in 86.6%) and underwent repeat testing at months 6 and 12. // Results: Outcome measures included the distance of the preferred retinal locus from the fovea (PRL) and the bivariate contour ellipse area (BCEA). After 12 months of follow-up, the change in the eccentricity of the PRL from the anatomic fovea was −0.0014 degrees (95% confidence interval [CI], −0.27 degrees, 0.27 degrees; P = .99). The deterioration in the stability of fixation as expressed by a larger BCEA encompassing 1 standard deviation of all fixation points was 1.21 degrees squared (deg2) (95% CI, −1.23 deg2, 3.65 deg2; P = .33). Eyes with increases and decreases in PRL eccentricity and/or BCEA values were observed. // Conclusions: Our observations point to the complexity of fixation parameters. The association of increasingly eccentric and unstable fixation with longer disease duration that is typically found in cross-sectional studies may be countered within individual patients by poorly understood processes like neuronal adaptation. Nevertheless, fixation parameters may serve as useful secondary outcome parameters in selected cases and for counseling patients to explain changes to their visual functionality

Evaluating Microfinance Banks’ Capacity to Purvey Credits to Micro and Small Enterprises (MSEs) in South-West, Nigeria: Adopting Financial Ratio Technique

We would like to appreciate all the microfinance banks (MFBs) whose financial statements were assessed in the study. Also Mr. Afolabi Kehinde Victor of Banking Supervision Department, CBN, Lagos, for providing us with additional data used in the study. Abstract Despite the review of Microfinance Banks (MFBs) regulatory and supervisory policy framework in the banking sub-sector in Nigeria, microfinance banks (MFBs) have not satisfied the intended purpose(s) for which it was created in 2005; such as provision of income, creation of employment opportunities and reduction of poverty among unbanked segment of the economy. This has further led to the premature death and untimely liquidation of micro and small businesses because many micro and small business owners found it difficult to access credits from MFBs. This problem has remained a major concern for stakeholders. In view of this, this paper intended to evaluate microfinance banks’ capacity to provide credits to Micro and Small Enterprises (MSEs) in South-West, Nigeria; using financial ratio technique for a period of ten (10) years (2007 – 2016). The study used secondary data that was collected via the financial statements of eight (8) microfinance banks in Lagos–West Senatorial District (5 MFBs) and Ogun Central Senatorial District (3 MFBs). The MFBs were selected through purposive sampling. Data gathered was analyzed via the use of Capital Adequacy Ratio (CAR). Findings showed mixed results as CAR values varied among the selected MFBs. The MFB with the highest CAR was valued at 203% while the lowest CAR valued at 21.2%. CAR benchmark set by Central Bank of Nigeria (CBN) for MFBs was 10%. This explained that the MFBs under consideration were financially strong to provide credits to MSEs’ operators. However, the paper recommended that MFBs should have access to Microfinance Development Funds (MDFs) to further strengthen their liquidity capacity in order to purvey more credits to micro and small entrepreneurs and regulatory authorities should review the current microfinance regulatory framework on a regular basis with global standard. Keywords: Microfinance Bank, Capital Adequacy, Micro and Small Enterprises, Credits, Financial Ratio Technique, Central Bank of Nigeria

Macular sensitivity measured with microperimetry in stargardt disease in the progression of atrophy secondary to stargardt disease (ProgStar) study report No. 7

IMPORTANCE: New outcome measures for treatment trials for Stargardt disease type 1 (STGD1) and other macular diseases are needed. Microperimetry allows mapping of light sensitivity of the macula and provides topographic information on visual function beyond visual acuity. OBJECTIVE: To measure and analyze retinal light sensitivity of the macula in STGD1 using fundus-controlled perimetry (microperimetry). DESIGN, SETTING, AND PARTICIPANTS: Thiswas a multicenter prospective cohort study. A total of 199 patients and 326 eyes with molecularly confirmed (ABCA4) STGD1 underwent testing with the Nidek MP-1 microperimeter as part of the multicenter, prospective Natural History of the Progression of Atrophy Secondary to Stargardt Disease (ProgStar) study. Sensitivity of 68 retinal loci was tested, and the mean sensitivity (MS) was determined; each point was categorized as "normal," "relative," or "deep" scotoma. MAIN OUTCOMES AND MEASURES: Mean sensitivity and the number of points with normal sensitivity, relative, or deep scotomas. RESULTS: Mean (SD) patient age was 34.2 (14.7) years, mean (SD) best-corrected visual acuity of all eyes was 47.8 (16.9) Early Treatment Diabetic Retinopathy Study letter score (approximately 20/100 Snellen equivalent), and mean MS of all eyes of all 68 points was 11.0 (5.0) dB. The median number of normal points per eye was 49 (mean [SD], 41.3 [20.8] ; range, 0-68); abnormal sensitivity and deep scotomas were more prevalent in the central macula. Mean sensitivity was lower in the fovea (mean [SD], 2.7 [4.4] dB) than in the inner (mean [SD], 6.8 [5.8] dB) and outer ring (mean [SD], 12.7 [5.3] dB). Overall MS per eye was 0.086 dB lower per year of additional age (95%CI, -0.13 to -0.041; P < .001) and 0.21 dB lower per additional year of duration of STGD1 (95%CI, -0.28 to -0.14; P < .001). Longer duration of STGD1 was associated with worse MS (β = -0.18; P < .001), with a lower number of normal test points (β = -0.71; P < .001), and with a higher number of deep scotoma points (β = -0.70; P < .001).We found 11 eyes with lowMS ( < 6 dB) but very good best-corrected visual acuity of at least 72 Early Treatment Diabetic Retinopathy Study letter score (20/40 Snellen equivalent). CONCLUSIONS AND RELEVANCE: We provide an extensive analysis of macular sensitivity parameters in STGD1 and demonstrate their association with demographic characteristics and vision. These data suggest microperimetry testing provides a more comprehensive assessment of retinal function and will be an important outcome measure in future clinical trials