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    Financial development and shadow economy in Africa: evidence from panel quantile regression
    (Emeraid insight, 2023-06) Onwuka, I. O; Emmanuel, A.
    "The study investigated the impact of financial development on shadow economy in Africa, using data for 41 African countries. The informal outputs, computed by Elgin et al. (2021), and the three financial development indicators were sourced from the World Bank and International Monetary Fund (IMF) respectively. The dynamic panel quantile regression technique was employed as it captures better the nature of the African economy and the heterogeneous nature of the shadow economies. The study shows that average FIA and FID in Africa is 0.074 and 0.160 respectively; suggesting that accessing credit from financial institution, as well as the coverage of credit and other financial services in Africa is low and could be accompanied with high degree of bottlenecks. The FIE on average is 0.520; suggesting that credits from financial institution in Africa are used for their intended purposes. However, financial development must be pursued alongside other macroeconomic goals, particularly urbanization.
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    Portfolio Management and Performance of Deposit Money Banks in Nigeria (1990–2020)
    (Elsevier Ltd, 2025) Fajinmi, C.; Onwuka, I. O.; Ayeni, E.
    There have been a renewed focus on portfolio management of deposit money banks since the global financial crisis of 2007–09. This renewed focus is based on the understanding that an efficient portfolio management reduces risks and loss associated with uncertainty of investment returns which may impact on the performance of banks. In this study, we investigated the connection between portfolio management and performance of deposit money banks in Nigeria. The study essentially sought to ascertain whether portfolio management has predictive value for the out-of-sample predictability of profitability of deposit money banks in Nigeria. The Markowitz portfolio theory underpin the study while time series data on deposit money banks’ liquidity, financial assets, foreign portfolio asset, deposit mix, and private sector concentration were utilized for the analysis. The time series spanned from 1990 to 2020 based on data availability. To increase the robustness of the result, the entire 24 DMBs were included in the study. The unit root test and bound cointegration test were employed to check times series behaviour of the variables. The Autoregressive Distributed Lag (ARDL) was used to estimate both the short-run and long-run dynamics and rapid correction to long-run equilibrium. Our findings reveal that portfolio management and its variants had significant effect on the profit after tax (PAT), return on investment (ROI), asset quality (ASQ), and capital adequacy (CA) of deposit money banks in Nigeria.
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    Impact of covid-19 pandemic on microfinance banks in Nigeria
    (Savings and Development, 2022) Onwuka, I. O.; Nwadibu, A.; Okwara, U. K.
    The outbreak of the novel coronavirus (COVID-19) has created existential challenges to the Nigerian economy especially the microcredit delivery system and microfinance institutions that serve the poor and vulnerable groups in the country. The study investigated the impact of Covid-19 pandemic and the government mandated lockdown on the activities of microfinance banks (MFBs) in Nigeria using the exploratory and content analytical technique. The study found that all the key performance indicators (KFIs) of MFBs have been negatively affected by the Covid-19 pandemic. In particular, the study found that the asset quality of MFBs has deteriorated with high level of portfolio at risk (PAR). The pandemic has also affected the capital adequacy of MFBs especially the state and unit MFBs due to increased and large provisioning for loan losses. In consequence, the shareholders’ funds for most of the state and unit MFBs have been seriously eroded and impaired by losses. Among others, the study recommended for an urgent regulatory forbearance and injection of liquidity in the sector by the Central Bank of Nigeria through a bail-out and to enlarge the CBN discount window to accommodate eligible MFBs to discount facilities that are hitherto only available to deposit money banks (DMBs).
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    Budget deficit, inflation and economic growth in Nigeria: an empirical analysis
    ("Academic Research Publishing Group", 2022) Onwuka, I. O.
    The taxonomy established by Wagner and Keynes on the effect of government expenditure on economic growth has continued to generate a series of empirical studies but so far no consensus has been achieved on the exact nexus between deficit financing and economic growth and when interacting with inflation variable. The study contributed to this debate by using the disaggregated Vector Autoregression (VAR) approach to investigate the impact of deficit financing on economic growth with inflation as an interaction variable. The study found, amongst others, that overall deficit financing had a positive and significant impact on economic growth when financed through external sources but had a deleterious effect when financed through domestic sources. This could be attributed to the crowding-out effect of the private sector when deficit financing is funded through the domestic loan market. The study also found that overall deficit financing is inflationary which also resulted in to decrease in real interest rates.
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    Does microcredit reach the poor and most vulnerable in era of pandemic? – evidence from Nigeria
    (FrancoAngeli Edizioni (Italy), 2021) Nwadiubu, A.; Onwuka, I. O.
    The study examined the impact of Covid-19 pandemic on households’ income and consumption – two economic measures used in measuring poverty. The study also assessed whether households especially those in rural areas are able to access microcredit because microcredit is a global recognised poverty alleviation strategy. It is widely recognized that access to micro-credit in developing countries empowers the poor (especially women) while supporting income-generating activities, encouraging the entrepreneurial spirit, and reducing vulnerability to shocks. The mixed method approach was adopted by the study. First, the study reviews the state of microcredit delivery in rural communities in Nigeria, identifies policy gaps in microcredit delivery and highlights the linkages between microcredit and poverty alleviation. Secondly, the study using a survey of selected rural communities, assessed whether households are able to access microcredit and other government palliatives put in place to mitigate the impact of the pandemic. The study found that majority of households could not access microcredit from formal microfinance institutions instead majority of the households’ resorted to informal institutions with attendant high cost of interest while government palliatives were non-existent in the communities surveyed. The study recommended that acknowledging the role of the informal actors in microcredit delivery is the critical first step towards framing a sustainable microcredit delivery policy in which both the formal and informal institutions are involved in microcredit delivery and governance.
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    Covid-19 and poverty assessment in Nigeria – the vulnerability approach
    (eGrove, 2021) Onwuka, I. O; Oroboghae, O. R
    Poverty alleviation has long been recognized as the implicit objective of national development in Nigeria. Indeed, successive governments in Nigeria has tinkered with different poverty alleviation measures since the early 1980s. Despite these concerted efforts by successive regimes in Nigeria, poverty has defied resolution. If any, poverty has been compounded by the current coronavirus pandemic, which has worsened the fate of the poor in Nigeria. Using analytical technique that is grounded on vulnerability theory, the study showed how the methodology of vulnerability can be applied to yield policy-relevant insights about the poverty dynamics in Nigeria and how the concept can be applied to predict the vulnerability of the poor in the country to the current coronavirus pandemic and future anthropogenic shocks.
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    COVID-19 and Corporate Governance Performance: Beyond the Financial Metrics
    (IntechOpen, 2021) Onwuka, I. O
    Corporate governance and, more broadly, the performance of corporate boards have traditionally been measured using financial metrics. These financial metrics such as Return on Investment (ROI), Return on Assets (ROA), Return on Equity (ROE), Earnings and Profitability Ratio (E and P) are ex post measure of organizations performance arising from corporate board activities. These financial metrics are largely one-dimensional measure of corporate performance and do not fully account for the other dimensions of organization responsibilities. The COVID-19 and the changing organizational dynamics have made the case for corporate board’s performance to be assessed beyond the usual financial metrics. In this study, we provide a framework that accounts for the various dimensions of organization activities: finance, social and environmental, the Triple-Bottom (TBL) approach. A TBL-compliance metric was constructed, which tracked the performance of selected manufacturing firms in Nigeria using a content analytical technique. The result showed that the majority of the firms performed remarkably well in areas of profitability and economic value creation but less satisfactorily inareas of social and environmental sustainability. On aggregate, the sampled firms committed less than 1% of their profit after tax on corporate social responsibility, while less than 5% of the sampled firms scored above average on the TBL-adoption matrix.
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    Tackling Poverty in Era of Covid-19 Pandemic: The Contributory Pension Option
    (Academic Journals, 2021-11) Onwuka, I. O
    In December 2019, news broke out that a novel coronavirus has hit the city of Wuhan, China. It was reported that the SARS-CoV2 virus is responsible for the Covid-19 pandemic. The coronavirus pandemic has impacted severely on the country. As expected, the pandemic has worsened the fate of the poor and most vulnerable households in Nigeria. To cushion the impact, the federal government of Nigeria (FGN) has instituted various palliative measures including cash grants of N5,000 (US$14) monthly to approximately 1 million vulnerable households. However, a review of these measures shows that they are grossly inadequate and incapable of any meaningful impact on the suffering of the masses. The government is clearly hamstrung in this regard due to huge shortfalls in revenue as a result of the pandemic. To this end, the study reviewed the contributory pension scheme in Nigeria and recommended that government should leverage on the pension fund which is currently in excess of ₦7 trillion. The study argued that government should amend the extant regulatory framework for recovery of pension contribution to enable the contributors to access up to 30% of their contributions to help cushion the effect of the coronavirus pandemic. These withdrawals will be restored through increased accretion to the funds by government and private sector employers when normalcy returns to the country. This will help to alleviate the sufferings of over 9 million Nigerians who are currently enrolled on the pension scheme.
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    Microcredit and poverty alleviation in Nigeria in COVID-19 pandemic
    (Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP), 2021) Onwuka, I. O.
    Microcredit is a financial service whose importance is often understated. When lack of access to microcredit is exacerbated by a public health emergency such as the COVID-19 pandemic, its real significance as an essential service in poverty alleviation becomes more apparent. The outbreak and spread of the novel coronavirus (COVID-19) has led to dramatic transformations of every sector of the Nigerian society including microcredit delivery system, where formal and informal actors co-exist often in an uneasy relationship. Unfortunately, strategies for inclusive microcredit delivery before and during the COVID-19 pandemic are lacking in Nigeria, fuelling the further exclusion of informal sector in microcredit governance and policy process in Nigeria. The paper reviews the state of the COVID-19 pandemic in Nigeria and identifies policy gaps in microcredit delivery and governance mechanism. The study also highlights the linkages between COVID-19 and microcredit in poverty alleviation with a view to catalyzing increased and inclusive access to microcredit and sustainability policy in Nigeria. It is argued that acknowledging the role of microcredit in informal economy and poverty alleviation is the critical first step towards framing a sustainable microcredit policy in which primary stakeholders are involved.
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    African Continental Free Trade Area Agreement - Does the Facts Support the Benefits for Nigeria?
    (Canadian Center of Science and Education, 2020) Onwuka, I. O.; Oroboghae, O. R
    Hesitantly, but finally, Nigeria joined the African Continental Free Trade Area (AfCFTA) with the Nigerian President, Mohammadu Buhari, signing the protocol at the African Union Summit in Niamey on July 7, 2019 based on perceived benefits. This study interrogated the purported benefits for Nigeria using standard trade costs between Nigeria and peer countries in Africa. Using a content analytical framework on a dataset by World Development Indicators and World Integrated Trade Solutions, the study found that average tariff rate in Nigeria is very high when compared to that of her major trading rivals in Africa like Ghana, Egypt and South Africa. Furthermore, the study found Nigeria in a comparative disadvantaged position on the ease of doing business in the same setting. Also, Nigeria’s major export commodity is crude oil and lubricants which has little or no market in the continent. Besides, trade-related infrastructure, especially roads and maritime corridors, in Nigeria is poor even by African standards. With these structural problems, ipso facto, Nigeria may not benefit maximally and comparatively in the enlarged continental market envisioned by the AfCFTA agreement. The study therefore, recommended that Nigerian government should continue to maintain the present cautious approach and refrain from making further commitments on the AfCFTA deal. In the meantime, the country should embark on massive infrastructural and trade-related development, improve the ease of doing business and diversify the economy in order to be in vintage position to exploit the potential opportunities offered by the AfCFTA in the medium-to-long term horizon.