Development Finance Institutions in Nigeria: Structure, Roles and Assessment

The efficient channelling of funds and allocation of financial resources are roles expected to be undertaken in the financial system to facilitate productive growth in the real sector of the economy. There have been overlapping roles in the Nigerian financial system and this has resulted to inefficient intermediation and under-development of vibrant sectors of the economy. Thus, necessitated the emergence of development financial institutions to render services to the large un-catered economics agents (especially in the rural areas) by the universal banks. The institutions are expected to offer specialized and micro financial services, offer relative cheap and accessible financing options, provide long-term finance for infrastructure development, industrial growth, agriculture, small and medium enterprises (SME) development and provide financial products for certain sections of the people. However, this paper evaluates the roles and structure of the development financial institutions in Nigeria and also assesses their performance over time.Development Finance Institutions, Financial Institutions, Financial Intermediation, Real Sectors, Financial Services, Financial Products, Small and Medium Scale Enterprises, Nigeria

Does Macroeconomic Indicators exert shock on the Nigerian Capital Market?

This study examines the long-run and short-run effect of macroeconomic variables on the Nigerian capital market between 1984 and 2007. The properties of the time series variables are examined using the Augmented Dickey-Fuller (ADF) test and most of the variables have a unit root at level. The Augmented Engle-Granger Cointegration test revealed that macroeconomic variables exert significant long-run effect on stock market performance in Nigeria. Also, the employed Error Correction Model (ECM) showed that macroeconomic variables exert significant short-term shock on stock prices as a result of the stochastic error term mechanisms. However, the empirical analysis showed that the NSE all share index is more responsive to changes in exchange rate, inflation rate, money supply and real output. While, all the incorporated variables which serve as proxies for external shock and other macroeconomic indicators have simultaneous significant impact on the Nigerian capital market both in the short and long-run.Economic Shock; Macroeconomic Variables; Capital Market; Unit root and Cointegration.

Monetary Policy and Share Pricing Business in Nigeria

The anatomy of Nigerian financial system is composed of the money and capital markets. Monetary policy is a framework used by the apex bank to regulate the flow of loanable funds in the economy, though the pricing of equity used by private investors to raise capital from the economy is carried out at the capital market end of the system. As earlier empirical studies have shown the relationship between monetary policy and stock market, this study provide a precise insight in the mechanism of interaction that co-exist between monetary policy and share pricing in Nigeria. The study identified money supply and interest rate (credit creation) as the main channels through which monetary policy influence sharing pricing in an open economy like Nigeria.Monetary Policy, Share Pricing, Monetary instruments, Money supply, Equity/capital market, money market, financial system, IPO pricing, Nigeria

Analysis of inflation and its determinants in Nigeria

The study critically analyzed the dynamic and simultaneous inter-relationship between inflation and its determinants in Nigeria between 1970 and 2007. The time series variables properties were examined using the Augmented Dickey Fuller (ADF) unit root test and the result reveals that inflation rate, growth rate of real output and money supply, and real share of Fiscal deficit are stationary at levels, while other incorporated variables in the empirical analysis- real share of Import, Exchange rate and Interest rate-are stationary at first difference. The long-run and short-run mechanism of interaction between inflation and its determinants were examined usig the Augmented Engle-Granger (AEG) cointegration test and Error Correction Mechanism (ECM) model respectively.Inflation, determinants, unit root, cointegration, error correction model, Nigeria economy

Capital Flight and Investment Dynamics in Nigeria: A Time Series Analysis (1970-2006)

This study critically examines the implications of capital flight on investment growth in Nigeria between 1970 and 2006, because of the consequential effect it has on economic growth. The time series data properties incorporated were examined using the Augmented Dickey-Fuller (ADF) unit root test and the results revealed that Investment, capital flight, interest rate and exchange rate were stationary at levels excluding exchange rate found to be integrated at first difference. The Augmented Engle-Granger (AEG) co-integration test employed to investigate the dynamic relationship between capital flight and investment level in Nigeria, revealed that there exist long-run interaction. Though, capital flight was found to exert positive but insignificant effect on investment growth during the review period. While, the short-run dynamic interaction as a result of the structural instability in the long-run was captured by the Error Correction Mechanism (ECM) model which was found inestimable due to the high collinearity existing among the incorporated variables. Policy recommendations were proffered base on the research findings.Capital flight, Investment behaviour, Long-run, Stationarity, ECM, Cointegration, Nigeria

The status of Fusarium mycotoxins in Sub-Saharan Africa : a review of emerging trends and post-harvest mitigation strategies towards food control

Fusarium fungi are common plant pathogens causing several plant diseases. The presence of these molds in plants exposes crops to toxic secondary metabolites called Fusarium mycotoxins. The most studied Fusarium mycotoxins include fumonisins, zearalenone, and trichothecenes. Studies have highlighted the economic impact of mycotoxins produced by Fusarium. These arrays of toxins have been implicated as the causal agents of wide varieties of toxic health effects in humans and animals ranging from acute to chronic. Global surveillance of Fusarium mycotoxins has recorded significant progress in its control; however, little attention has been paid to Fusarium mycotoxins in sub-Saharan Africa, thus translating to limited occurrence data. In addition, legislative regulation is virtually non-existent. The emergence of modified Fusarium mycotoxins, which may contribute to additional toxic effects, worsens an already precarious situation. This review highlights the status of Fusarium mycotoxins in sub-Saharan Africa, the possible food processing mitigation strategies, as well as future perspectives

Is Monetary Policy a Growth Stimulant in Nigeria? A Vector Autoregressive Approach

This paper critically examines the dynamic interaction between monetary policy tools in stimulating economic growth, as well as stabilizing the economy from external shocks in Nigeria. The paper considered key monetary time series variables and real growth of output in formulating Vector Autoregressive (VAR) models which showed interdependence interaction between the period of 1970 and 2007. The time series properties of the selected variables are examined using the Augmented Dickey-Fuller unit root test and the results revealed that only growth of real output and broad money supply are stationary at levels, while saving, lending and exchange rates were found stationary at first difference. The long-run dynamic interaction was established through the Johansen’s Trace and Maximum Eigenvalue tests. The pair-wise Granger-Causality test conducted showed that the growth rate of real output is not a leading indicator for any monetary variables. Other innovation accounting tests were also carried out like impulse responses function to test for the response of growth in real output to innovation shock on monetary variables. Also, the forecast error variance decomposition (FEVD) is used to decompose the monetary shock on the growth rate of real output in Nigeria. Proper policy recommendations were proffered based on the results emanated from the econometric analyses.Monetary policy, Monetary Instruments, Economic growth, VAR, Impulse shock response, Variance decomposition

The rise of peri-urban aquaculture in Nigeria

The paper traced aquacultural development in Nigeria to the colonial period in 1950s with fish farming in tilapias during which more than 200 small scale subsistence level ponds were built with some growth continuing in the rural areas. There was a bloom in farming of catfishes in 2000. The interest shown by private fish farmers has been identified as a propelling factor for aquacultural development in Nigeria. The development of private fish hatcheries has been another factor leading to the growth of aquaculture. The paper noted that social capital and its development either directly or indirectly can be identified as contributing to the success of the sectors. The increasing profit from aquaculture has led to fish farmers increasing beyond 5000 tonnes in 2009. The paper highlighted the numerous advantages which led to the expansion of the industry in Nigerian villages

Exchange rate volatility in Nigeria: Consistency, persistency & severity analyses

The adoption of the International Monetary Fund (IMF) Structural Adjustment Programme (SAP) in 1986 resulted in the transition from fixed exchange rate regime to floating exchange rate regime in Nigeria. Ever since, the exchange rate of naira vis-à-vis the U.S dollar has attained varying rates all through different time horizons. On this basis, this study examines the consistency, persistency, and severity (degree) of volatility in exchange rate of Nigerian currency (naira) vis-a-vis the United State dollar using monthly time series data from 1986 to 2008. The standard Purchasing Power Parity (PPP) model was used to analyze the long-run consistency of the naira exchange rate while the time series properties of the data was examined using the ADF and PP approach, the stationary process, and order of the incorporated series. The ARCH and GARCH models were used to examine the degree or severity of volatility based on the first difference, standard deviation and coefficient of deviation estimated volatility series for the nominal and real exchange rate of naira vis-a-vis the U.S dollar. The result indicated the presence of overshooting volatility shocks. The econometric analyses further revealed that the nominal and real exchange rates of naira vis-a-viz the U.S dollar are not with the traditional longrun PPP model. All the incorporated measures of volatility indicated presence and persistency of volatility in the nominal and real exchange rate for naira vis-à-vis U.S dollar in Nigeria. This however proves the ineffectiveness of monetary policy in stabilizing exchange rate and therefore, calls for the need of more tightened measures especially in controlling the high demand for foreign currency

Effects of spices on the chemical properties of hot-smoked catfish (Clarias gariepinus)

Effect of spices on the chemical properties of hot-smoked catfish (C.gariepinus) was examined. The experimental design was complete randomized design (CRD) with the treatments been the variously spiced hot-smoked catfish (garlic, ginger, garlic-ginger homogenate spiced and the control without spices). Proximate and mineral content analyses were carried out using standard experimental procedures. There exist significant differences (p<0.05) in the percentage moisture and crude protein content with smoked catfish without spices having the highest moisture content with mean value 6.18 ~c 0.13 and 79.44 ~c 0.13 respectively which could be as a result of the increase in the fibre content of the spiced fish products which is a function of fibre content of the spices applied to the fish products. Similar trend was also observed for the lipid and ash contents the fish products. There exist significant differences (p<0.05) in the mineral content preseent in the various fish products with the exception of magnesium. The products are rich in calcium and other minerals with garlic-ginger homogenate spiced product having the highest level of calcium (0.980 ~c 0.02)