Shadow banking and micro-, small and medium scale enterprises: A municipal assessment in Nigeria

Shadow banking is usually considered as offering financial and financial-related support outside of the mainstream conventional financial system. The biggest issue facing micro-, small, and medium-sized businesses (MSMEs) in Nigeria is the inconveniences and challenges associated with obtaining funds or credit from conventional banks, which encourages remote business operations and small-scale expansion. Thus, shadow banking activity is still widespread among MSMEs in Nigeria. This study used MSMEs operating in the Marian and Watt markets to analyze the impact of shadow bank interest income, savings products, and loans on the performance of MSMEs. A systematic Likert scale questionnaire was given to a group of 160 people, with 157 questionnaires duly returned. The survey research design was adopted, while the SPSS software was used to analyze the data acquired. As such, shadow banking interest income has a non-significant positive impact (0.022%) on the performance of MSMEs in Calabar metropolis; shadow banking savings products have a negative but significant impact (–0.160%) on MSME performance in Calabar metropolis, while shadow banking loans have a positive and significant effect (0.194%) on micro-, small, and medium-scale firm performance in Calabar metropolis. The study concluded that shadow bank operators should ensure that their service costs are standardized and supplied at affordable rates to attract MSMEs to patronize them for more successful business operations

Inhibiting factors to tax revenue generation in Cross River State, Nigeria

This study examined the inhibiting factors to tax revenue generation in Cross River State, Nigeria. The specific objectives were to examine the effect of tax evasion and avoidance, lack of infrastructural facilities and experienced personnel on tax revenue generation in Cross River State. To achieve these objectives, a well structure questionnaire was development and administered on 169 sampled staff of Cross River State board of internal revenue. Out of these questionnaires 164 were duly completed and returned. These responses were coded and used for analyses with the help of the SPSS software The cross sectional survey design was adopted and the ordinary least squared multiple regression technique was used to analyze the data. From the analyses it was discovered that there is a negative correlation and insignificant relationship between lack of infrastructural facilities and government tax revenue in Cross River State; also, there is a negative and significant relationship between tax evasion and avoidance and government tax revenue in Cross River State, Nigeria and lastly, there is a positive and significant relationship between experienced personnel and government tax revenue in Cross River State, Nigeria. Based on these finding the study recommends that government should encourage tax payers’ morale through the provision of quality infrastructural facilities and other incentives to enhance its revenue generation. Also, Strategies to reduce tax evasion and avoidance should be formulated by strengthening the policy framework and operational guidelines of the Cross River State internal revenue service and adopting an evidence base government spending. Lastly, Cross River State internal revenue service should embark on adequate staff training and development on new methods of enhancing tax compliance within the state.Keywords: Tax Revenue Compliance, Tax Evasion and Avoidanc

EFFECT OF SELECTED MACROECONOMIC VARIABLES ON MONEY SUPPLY IN NIGERIA

With the large observed discrepancies between money supply target and outcome overtime in Nigeria despite the assertion that money supply growth is independently and exogenously determined by the central bank, this study principally centred on the effect of selected macroeconomic variables on money supply in Nigeria, using annual time series data from 1970-2011. The main objectives of the study were to ascertain how changes in selected macroeconomic variables affect money supply growth as well as testing the money supply endogeneity hypothesis in Nigeria. To achieve the above objectives, the study employs the Augmented Dickey Fuller (ADF) and Philip-perron (PP) unit root test, cointegration test, Granger causality test and Error correction mechanism (ECM) in testing and in the estimation of the relevant equations. The results of the cointegration tests showed that there is a long-run relationship among the macroeconomic variables in the model. The results of the short-run and the long-run estimates revealed that income (GDP), credit to the private sector (CPS), net foreign asset (NFA), government expenditure (GEXP), consumer price index (CPI), interest rate (IR) and exchange rate (EXCH), all have both short-run and long-run significant effect on money supply. Furthermore, the results of the granger causality test showed that money supply is endogenously determined in Nigeria; thereby supporting the post-Keynesian postulation that money supply is endogenous. This indicates that macroeconomic variables had greater influence in determining the rate of money growth in Nigeria. From the findings, it was recommended that in order to achieve a sustainable level of money supply growth that will be consistent with the projected growth rate of the economy, more credit should be allocated to the core private sector of the economy. To achieve this, there is need for the monetary authorities to make credit, cheaper via reduction in lending rate. It is also recommended that monetary authorities should incorporate proactive and strategic analysis of the feedback effect of movement of key macroeconomic variables on money supply growth in it formulation of monetary policy and money supply targeting in Nigeria. JEL: E51, E41, E62  Article visualizations