Empirical assessment of the effects of cashless policy on financial inclusion in the Nigerian emerging economy

The present study examined the effects of cashless policy on financial inclusion in the Nigerian emerging economy. The necessary data were collected from the Central Bank of Nigeria Economic Reports as well as Statistical Bulletin and the ordinary least squares method was applied to analyze the data. The findings reveal that the cashless policy maintained a non-significant relationship with financial inclusion both in urban and rural areas of Nigeria. The findings show that the cashless policy had a significant effect on increasing customers’ deposits in commercial banks of Nigeria. Volume of Automated Teller Machine (ATMVL) maintains a positive and significant effect on financial inclusion indicators in urban center compared with the rural areas. Volume of Point of Sales (POSVL) shows more significant and positive influence on financial inclusion in urban area than the rural area. However, Web Based Technique (WBTVL) reveals a non-significant effect on financial inclusion both in urban and rural centers. The study therefore recommends that more branches of commercial banks and ATM centers/outlets should be opened in rural urban centers with efficient network systems and security in order to enhance banking penetration and by extension effectiveness of the financial inclusion and poverty reductions

Executive Remuneration and the Financial Performance of Quoted Firms: The Nigerian Experience

This study examined executive remuneration and firms’ performance in Nigeria. Specifically, the study seeks to ascertain the nexus between executive remuneration, firm size and board size variables and the performance of quoted companies. The population of the study consists of all the quoted firms as at 31st December, 2014. A sample of sixty (60) companies excluding non- financial firms was selected for the period 2013 and 2014. Summary statistics such as descriptive, correlation and granger causality tests were used. Inferential statistics, using panel Generalized Least Square (EGLS) with fixed effect was used for the purpose of empirical validations. This was after the application of diagnostic test to enhance the study. The study ascertained that executive remuneration has a relationship with firm performance, but negatively impacted on it; though was not statistically significant. Firm size was ascertained not to have significant positive relationship with firms’ performance; though it has a causality relationship with the performance of the firms. Board size was found to negatively affect the performance of firms and is statistically not significant. Premised on this, the study suggests that executive remuneration of quote firms should be pegged constantly in a flexible manner. This will enable shareholders known the causality relationship between what is paid to the executive and how that influence performance

E- Banking in Nigeria: Issues and Challenges

The aim of this study was to assess issues and challenges of e-banking in Nigeria. The specific objectives were to ascertain the effect of e-banking on workers, job security in Nigeria banking industry, examine the relationship between e- banking and quality of service delivery of commercial banks in Nigeria, evaluate the relationship between e-banking and security of financial transactions and to find out if e-banking influences customers satisfaction in the Nigerian banking industry. The survey and descriptive research design were adopted in the methodology of the study. The population consists of all the customers and staff of three selected banks branches in the Benin metropolis. A sample of three hundred respondents was selected using the convenience random sampling techniques. The study employs primary data using questionnaires as the research instrument. The data analysis was carried out using summary statistics and ordinary least square regression analysis. The study findings indicate that employees’ job security has a positive relationship with E-banking and significantly influence E-banking in Nigeria; customers’ satisfaction was ascertained to have a positive relationship with e-banking and also influence e-banking penetration in Nigeria; security of financial transactions was found to have a positive relationship with e-banking, it however had inverse significant impact on e-banking; services delivery has a positive relationship with e-banking. It is therefore recommended that for effective e-banking penetration, investors education and marketing of e-banking products should be the key strategy banks should use to attract more customers towards embracing e-banking and increasing security for e-banking products, reduction of charges on e-banking products and increasing more ATM outlets in Nigeria as part of measures towards enhancing quality services delivery and promotion of e-banking as this will further enhance the recent need for financial inclusion as part of the monetary policy of the Central Bank of Nigeria. Keywords: E-banking, job security, service delivery, customers’ satisfaction and security of e-banking financial transactions

Stock market development and economic growth of Brazil, Russia, India, China and South African (BRICS) Nations: An empirical research

BRICS connotes five main emerging national economies: Brazil, Russia, India, China and South Africa are particularly distinguished as nations experiencing expanded market opportunities and countries discovered to be at stages of newly advanced economic development. This paper assesses the stock market development and economic growth in these BRICS nations. In doing this, quarterly time series data from 1994 to 2014 was sourced from World Bank Indicators. The Panel Generalized method based on the fixed effect estimation was employed to determine how stock market development affects the economic growth of BRICS. Diagnostic tests were conducted to ascertain the robustness and stability of the regression results after carrying out the unit root calculations. The findings reveal that stock market development exerts significant impact on the economic growth. The study further reveals that there was a positive correlation between stock market development indicators and BRICS’s economic growth. It is therefore proposed that the weaknesses of each of the BRICS member countries should be taken as policy focus and strategies necessary to strengthen them should be swiftly applied by their respective governments

E-Banking in Nigeria: Issues and Challenges

The aim of this study was to assess issues and challenges of e-banking in Nigeria. The specific objectives were to ascertain the effect of e-banking on workers, job security in Nigeria banking industry, examine the relationship between e- banking and quality of service delivery of commercial banks in Nigeria, evaluate the relationship between e-banking and security of financial transactions and to find out if e-banking influences customers satisfaction in the Nigerian banking industry. The survey and descriptive research design were adopted in the methodology of the study. The population consists of all the customers and staff of three selected banks branches in the Benin metropolis. A sample of three hundred respondents was selected using the convenience random sampling techniques. The study employs primary data using questionnaires as the research instrument. The data analysis was carried out using summary statistics and ordinary least square regression analysis. The study findings indicate that employees’ job security has a positive relationship with E-banking and significantly influence E-banking in Nigeria; customers’ satisfaction was ascertained to have a positive relationship with e-banking and also influence e-banking penetration in Nigeria; security of financial transactions was found to have a positive relationship with e-banking, it however had inverse significant impact on e-banking; services delivery has a positive relationship with e-banking. It is therefore recommended that for effective ebanking penetration, investors education and marketing of e-banking products should be the key strategy banks should use to attract more customers towards embracing e-banking and increasing security for e-banking products, reduction of charges on e-banking products and increasing more ATM outlets in Nigeria as part of measures towards enhancing quality services delivery and promotion of e-banking as this will further enhance the recent need for financial inclusion as part of the monetary policy of the Central Bank of Nigeria

Empirical Assessment on Financial Regulations and Banking Sector Performance

This study examines financial regulation and banking sector performance in Nigeria. Specifically, the study determines the impact of reforms on banking sector performance and also assesses the nexus between capital adequacy and banking sector performance. Time series data for the period 1993 to 2014 was used. As an analytical tool, the study uses unit root test to determine the stationary state of the variables. We also employed the Johansson co-integration and error correction model (ECM) statistical techniques to establish both short-run and long-run dynamic relationships between the endogenous and exogenous variables. The empirical findings indicate that financial regulation significantly impacts the banking sector performance while financial regulation has both short-run and long-run dynamic relationships with the banking sector performance in Nigeria. It was found that the four-period lag of capital adequacy negatively affects banking sector performance and is not statistically significant. The paper suggests that the Central Bank of Nigeria (CBN) should continually make public the impacts that the various financial regulations and reforms have on the performance of Nigerian banks. Majority of the policies on financial regulation by the apex bank (CBN) need to be long-run which can enable confidence of stakeholders, shareholders and the general public in the Nigerian banking industry when critically evaluated

Empirical assessment of frauds on banks’ liquidity: evidence from Nigeria

The study examined the effects of frauds on the liquidity position of banks in the Nigerian banking sector using time series data for the period 1994 to 2015. The study used unit root test to determine the stationary state of the variables. It also employed the Johansson co-integration and error correction model (ECM) statistical techniques to establish both short-run and long-run dynamic relationships between the endogenous and exogenous variables. The findings revealed that total number of fraud cases, actual amount involved in the fraud and the loss associated with it negatively affect banks liquidity position in the long- run, though the effect is not as strong as in the short run. The paper concluded that fraud is a key variable that depletes the banks’ ability to meet up with short term obligation as well as impinge on the ability to effectively maximize the wealth of the shareholders. The study therefore suggested that the services of the forensic accountants should be given utmost priority by banks and all concerned stakeholders so as to constantly and effectively monitor the internal control system, report levels of frauds, as well as come up with a model to fight the effect of frauds on banks’ operation. The CBN and other law enforcement agencies should come up with stiffer penalties for any perpetrator of frauds of any nature and categories in the banking sector. This will help to create sanity and serve as deterrent to the other would be perpetrators of frauds. Another peculiar aspect that should be empirically examined is banks’ staff involvement in frauds and forgeries and how they impact on the banking sector operations and liquidity position.Keywords: Liquidity, number of fraud cases, actual loss, amount involved in fraud case

Analyzing the Impact of Microfinance Banks Credit Variables on Micro, Small Enterprises Growth Indicators in South-West, Nigeria

Despite several reforms both in the banking and informal sectors; it is sad that there have been dwindling development in both sectors. In view of this, this study analyzed the impact of Microfinance Banks (MFBs) credit variables on Micro Small Enterprises (MSEs) growth indicators in South-West, Nigeria. Sampled MFBs, MSEs and some South-West States were purposively selected. Secondary data was extracted from financial statements of eight selected MFBs from 2007-2016 (10years). Relationship between MFBs variables and MSEs’ growth was analyzed using Correlation matrix, while extent at which MFBs variables influenced MSEs growth was analyzed using panel regression. Results showed the relationship between MFBs credit variables and MSEs’ growth with an average ‘r’ at 68.56% (p<0.05); and the extent at which MFBs credit variables influenced MSEs growth (p<0.05) such as  profit, total asset, number of employee growth and sales with R2 were 61.4%, 58.3%, 48.1% and 52.1%, respectively. The study concluded that MFBs credit variables influenced MSEs growth. It was recommended that MFBs should moderately increase loan size in order to improve MSEs’ business operations. Keywords: Microfinance Banks, Micro Small Enterprises, Credit Variables, Growth indicators, South-West, Nigeria DOI: 10.7176/RJFA/11-12-06 Publication date:June 30th 2020

Forensic accounting and fraudulent practices in the Nigerian public sector

The broad objective of this study was to examine forensic accounting and fraudulent practices in the Nigerian public sector. The specific objective was to find out if there exists a significant relationship between forensic accounting and fraudulent practices in Nigerian public sector. The study employed the survey descriptive research design. The study population consisted of all public institutions in Edo State, Nigeria. However, ten (10) government establishments, both Federal and State owned, were randomly selected. Structured four-scale Likert-type questionnaire was used as the research instrument to elicit responses from the respondents who were mainly internal auditors, chief accountants, executive directors and directors of the selected institutions. The data were analyzed using frequency counts and simple percentages method. Findings made indicated that there is a significant relationship between forensic accounting and reduction of fraudulent practices in the Nigerian public sector; and the prevalence of fraudulent practices in the Nigerian public sector has brought set back to the economy, untold hardship to the citizens and shame to the country in general before the international communities. It is therefore recommended that government and regulatory authorities need to ensure the provision of standards and guidelines to regulate forensic activities and above all, Nigerians should embrace integrity, objectivity, fairness and accountability in their day-to-day activities particularly in the public sector.Keywords: Forensic accounting, fraudulent practices, frauds, forensic accountant

Empirical Assessment of Manufacturing Companies Efficiency in Nigeria:Data Envelopment Analysis (DEA) Approach

This study dwells on data envelopment analysis and industry analysis. The study analyzed the technical efficiency of twenty (20) selected manufacturing companies for the period 2015 to 2016 using input and output oriented data envelopment analysis (DEA) approach. Findings arising from the study indicate that 35% of the quoted sampled manufacturing firms in Nigeria were scale efficient while 65% were scale inefficient in the period observed. Thirty percent (30%) of the manufacturing companies on the basis of constant return to scale (CRS) were technically efficient while 70% of them were technically inefficient in the period observed. Forty percent (40%) of the companies in terms of variable return to scale (VRS) were technically efficient while 60% were not technically efficient in the context of variable return to scale. The study concluded that manufacturing firms in Nigeria are not optimally performing with input and output mix of variables. It is therefore recommended that there is need for them to scale down cost of production through appropriate strategic decisions. Keywords: Technical efficiency, data envelopment analysis, firm performanc