Foreign Direct Investment and Economic Development in Nigeria

This study examined the Foreign Direct Investment (FDI) trends and their influence on the Nigerian Economy over the time frame of 1986 to 2018. Secondary data were sourced from the Central Bank of Nigeria statistical bulletin of various issues and CBN annual reports. This study utilized the Error Correction Model Granger Causality and other diagnostic tests in capturing the long-run and short-run dynamics of the variables used in the model. The result revealed the existence of a positive and significant long-run relationship between Foreign direct investment on the human development index proxy for Economic development. Due to the influence of foreign direct investment, the study recommends that the government should foster its appropriation of capital and recurrent expenditure towards improving the productive dominance of the nation, and eliminate room for insecurity and political turmoil

FINANCIAL DEEPENING AND COMMERCIAL BANKS PERFORMNCE: EVIDENCE FROM NIGERIA

The work was aimed at determining the financial deepening impact on commercial bank performance in Nigeria. Financial deepening was decomposed into credit allocation to private sector as a ratio of GDP, money supply as a ratio of gross domestic product and total loan to deposit ratio while net interest margin was used as proxy for commercial bank performance. Data was sourced from the CBN statistical bulletin and the world bank data base from 2000 to 2022. The Augmented Dickey Fuller unit root test was used in determining stationarity of the data which were not stationary after first differencing hence giving room for the application of the ARDL bond test to determine the short and long run relationship between the implicated variables while the Granger causality test was used to determine the causality between financial deepening and commercial bank performance. The results revealed nonexistence of short run relation but existence of long run relationship was observed while a unidirectional relation between credit allocated to private sector ratio to GDP and net interest margin why no causality was recorded between other variables studied. The work recommends need for commercial banks to improve on their financial deepening activities so as to broaden their financial services operations and more so, policy makers should step in and ensure commercial banking broaden their financial deepening to accommodate individuals and the business world entirely

Foreign Capital Inflow and Human Development Index in Nigeria

This study examined the foreign capital inflow trends and their influence on the Nigerian economy over the time frame of 1986 to 2018. Secondary data were sourced from the Central Bank of Nigeria statistical bulletin of various issues and CBN annual reports. In analyzing the long-run and short-run dynamic relationship between the human development index and selected foreign capital inflow indicator (Foreign portfolio investment), this current study utilized Johensen’s cointegration test, Error Correction Model, Granger Causality and other diagnostic tests in capturing the long-run and short-run dynamics of the variables used in the model. The result revealed the existence of a positive and insignificant long-run relationship between Foreign portfolio investment and the human development index. They concluded that since the employed variable shows great causal relevance, it can be finally estimated that if the right steps are taken, the nation could plunge itself into fostered performance by taking the right capital inflow measures. The study therefore recommended that the government should endeavor to mop the leakages in accrued FPI, to foster the influence of this resource on the nation and reverse its insignificant influence and Policy makers and financial institutions should strive to polish the capital inflows system as it greatly predicts the movement of Human Development Index through proper regulation of the foreign inflows and ensuring strict monitoring of illicit activities in the form of cybercrime

FINANCIAL DEEPENING AND COMMERCIAL BANKS PERFORMNCE: EVIDENCE FROM NIGERIA

The work was aimed at determining the financial deepening impact on commercial bank performance in Nigeria. Financial deepening was decomposed into credit allocation to private sector as a ratio of GDP, money supply as a ratio of gross domestic product and total loan to deposit ratio while net interest margin was used as proxy for commercial bank performance. Data was sourced from the CBN statistical bulletin and the world bank data base from 2000 to 2022. The Augmented Dickey Fuller unit root test was used in determining stationarity of the data which were not stationary after first differencing hence giving room for the application of the ARDL bond test to determine the short and long run relationship between the implicated variables while the Granger causality test was used to determine the causality between financial deepening and commercial bank performance. The results revealed nonexistence of short run relation but existence of long run relationship was observed while a unidirectional relation between credit allocated to private sector ratio to GDP and net interest margin why no causality was recorded between other variables studied. The work recommends need for commercial banks to improve on their financial deepening activities so as to broaden their financial services operations and more so, policy makers should step in and ensure commercial banking broaden their financial deepening to accommodate individuals and the business world entirely