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

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

DIFFERENTIAL CADMIUM ACCUMULATION IN DURUM WHEAT: ROLE OF LOW MOLECULAR WEIGHT ORGANIC ACIDS

Pairs of isolines of durum wheat (Triticum turgidum var durum) differ in the amount of cadmium translocated to aboveground tissues; in the field, the high isolines have twice the cadmium in leaves and grain when compared to the low isolines. The hypothesis that differential cadmium translocation is associated with differential production of organic acids was tested by measuring cadmium in tissues, cadmium partitioning within the root, and organic acids in tissues and root exudates. When grown in soil, no differences between high and low isolines were found. When grown in hydroponics, no differences in one pair (W9261-BG) were found. In the other pair (W9260-BC), the low isoline had half the cadmium in its shoot, increased cadmium in the root symplast and increased concentrations of fumaric, malic, oxalic and succinic acids compared to the high isoline. This suggests that reduced translocation to aboveground tissues was associated with increased chelation of cadmium in the root

Hydrological Assessment Of Water Resources And Environmental Impact On An Urban Lake: A Case Study Of Eleyele Lake Catchment, Ibadan, Nigeria

Previous assessment of the effect of land use changes on water quality of Eleyele lake Ibadan, Nigeria revealed that pollutants are being washed by rainfall runoff into the lake which indicated the need for further study. In this study, Universal Soil Loss Equation (USLE) was used to estimate the quantity of soil that is being lost into the lake using parameters derived from an earlier study.  The result revealed that 2080 kg of soil is being washed into the lake annually. Tests to determine the water quality of the two streams that flow into the lake and, the outflow were done. The results showed that between 6 and 95% of the pollutants washed into the lake were retained or converted to sediments which may cause it to eutrophicate in the future. To compute water accounting for the lake watershed, precipitation over the area was calculated, discharge measurements on the two rivers that empty into the lake and outflow from the lake were done, and also, the evaporation/evapotranspiration were determined. The results showed that 59% of the gross inflow was available for potable water supply while 30.3% of the total outflow was uncommitted. Evapotranspiration (including lake surface evaporation), municipal/industrial and total outflow were 1.0, 59 and 31% respectively. Management plan and useful recommendations have been suggested to improve the reliability of the lake. &nbsp

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

Resource Management, Quality and Profitability of Sachet Water in Nigeria

The paper examined the resource input and management of sachet pure water production and its profitability. The research design was both survey and analytical. The research used statistical process control to measure the current quality of the product (or process variability) and assess all resource inputs in the water factory of the Polytechnic Ibadan. All the inputs were quantified in monetary terms including depreciation and the indispensable waste. Profitability of the sachet water production in the academic environment were analysed on the basis of per kilogram of the poly-film, a piece of parking nylon, man-hour of human and facilities resources, packaging, distribution, transportation, fueling etc using Gross/Net Operating Profit to Net Revenue Ratio and Return on Capital respectively. Necessary consideration was given to NAFDAC requirements and regulatory framework with respect to hygienity of the product and the working environment, dressing codes, cleanliness, storage, water processing by competent and qualified personnel and using the correct machines. The result revealed that there was significant relationship between quality and profitability in sachet water production. It found out that the production process is in control since none of the samples fell outside the upper and lower control limits of 50.90 and 50.07 of the mean and 2.3674 and 0.2926 for the range respectively and after when the samples were subjected to all quality characteristics and measurements. The result also revealed that the factory was able to break-even and make profit in the first financial year of the factory operations. Marginal profit was recorded outside the depreciation of some infrastructures. The operating environment dense with students’ population not-withstanding, the factory recorded higher profit during the dry season which is peculiar to tropical region than in rainy season.The outcome of this research suggests that packaged (sachet) water business is a viable one if all resources are well managed, especially in an academic community of this type. A gross profit of N4,587,530($20,852) was earned in the 2014 financial year with net operating income of N1,342,754= ($6,103).  It will also add value to the quality of training given to Polytechnic graduates on the platform of Entrepreneurship Development as well as good source of internally generated revenue. The institution water factory is a litmus for all untreated and contaminated pure water factories within the environment and yardstick for NAFDAC re-assessment, validation of licenses and or prohibitions. Keywords: Resource Management; Quality; Profitability; Packaged Pure Water (Sachet), Production Process Analysis

Infrastructural Financing in Nigeria: Growth Implications

This study critically analyzes the effects of infrastructural financing on economic growth in Nigeria between 1970 and 2010. The time frame is selected based on data availability and to cover major structural economic eras in Nigeria since a decade after independence.  The empirical model employed for this study is adopted from the work of Cullison (1993) and later modified. The econometric model incorporates components of government infrastructural spending based on functions. The ordinary least square (OLS) method is used to estimate the empirical model. The result of analysis revealed that that government community service infrastructure spending, private infrastructure investment, broad money supply, and total population, exert positive influence on economic growth. While, government economic service infrastructural spending and total domestic and external debt exerts negative effects on economic growth in Nigeria. On the basis of the significant F-statistic result the null hypothesis “infrastructural investment has significant effect on economic growth in Nigeria”. Policy recommendations are proffered based on the empirical findings. Keywords: Infrastructure Financing, Public Investment, Public Private Partnership (PPP), Economic Growth, Nigeri

Dynamics of Monetary Policy and Output Nexus in Nigeria

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. Keywords: Monetary policy, Monetary Instruments, Economic growth, VAR, Impulse shock response, Variance decompositio

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

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. Keywords: Development Finance Institutions, Financial Institutions, Financial Intermediation, Real Sectors, Financial Services, Financial Products, Small and Medium Scale Enterprises, Nigeri