FACULTY OF ECONOMICS
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Item 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.Item 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).Item 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.Item Effect of Financial Sector Development on Poverty Alleviation - The Nigerian Experience (1986 – 2018)(Society for Science and Education (SSE), 2019-06-25) Onwuka, I. O.; Nwadiubu, A.The study examined the impact of financial sector development on investment in government treasury bills in Nigeria. Financial sector development was proxied by the ratio of money supply to GDP (M2/GDP); private sector credit to GDP (CPS/GDP) and lending interest rate while the dependent variable was measured by the outstanding treasury bills in money market. The study adopted the ex-post facto research design. The study adopted the multiple regression technique while the result of the regression coefficient was subjected to diagnostic tests. The result of the study showed that the level of intermediation and lending interest rate had significant effect on investment in treasury bills in Nigeria as a unit increase in interest rate resulted in 52 percent increase in treasury bills. Also a unit increase in lending rate of banks led to 11 percent increase in investment in treasury bills in Nigeria. Based on the results, the study recommended a systematic reduction in lending interest rates and increase in savings rate to stimulate high investment returns to savers and reduce the credit risk on lending.Item Asset structure and Profitability Nexus – Evidence from Commercial Banks in Nigeria(Society for Science and Education (SSE), 2019) Onwuka, I. O.; Nwadibu, A.This paper investigated the Impact of Capital Structure on Profitability of Commercial Banks in Nigeria, between 2005 and 2014. The study carried out Static Analysis of the Nexus between Capital Structure and Profitability of Commercial Banks in Nigeria, with focus on 10 selected Commercial Banks in Nigeria. The techniques of Pooled OLS Estimation, Fixed Effect Estimation (FEE) and Random Effect Estimation (REE) were employed in an attempt to arrive at the most consistent and efficient static estimation of the Panel Mode. The proxies of Debt Finance (DF), Equity Finance (EF) and Debt Equity Ratio (DER) for Capital Structure while Profit after Tax (PAT) is used as a measure of Bank Profitability. The result of the study showed that Debt Finance exert positive but insignificant influence on Commercial Bank’s Profitability, while the ratio of Debt-Equity influence on Commercial Banks’ Profitability was found to be negative for the period investigated. The study therefore recommend that Commercial Banks should be more levered as this significantly influence the level of Profitability, however they should adopt the right finance mix that is not extremely lopsided to obtain the right balance between Business and Financial Risk.Item Measuring corporate governance performance beyond the financial metrics: A study based on deposit money banks in Nigeria(John Wiley & Sons Inc., 2019) Onwuka, I. O.; Okoro, B. C.; Onodugo, V. A.Studies on corporate governance and firm performance have traditionally used financial metrics such as return on investment, return on assets, return on equity, profitable after tax, earnings per share, firm value (Tobin's q), and other quantifiable matrices. These performance measurement indicators, however, do not fully account for the social and environmental benefits derivable from corporate activities. This study differed from this approach by measuring corporate performance of deposit money banks in Nigeria using the sustainability reporting and triple bottom line (TBL) framework. Two TBL‐compliance metrics were developed that tracks the performanceof banks along the TBL parameters, which is more robust than the usual financial indicators. Six banks were selected for the study and were assigned scores based on their relative achievement in the adoption process of 17 identified metrics in the TBL framework. The results showed that Nigerian banks lacked behind in corporate governance performance based onTBL framework. On the aggregate, the level of spending on corporate social activities as a percentage of profit after tax was less than 1% for the 10‐year period reviewed (2013–2017). The study showed that all the sampled banks had put in place policy framework that is in tandem with the TBL template,but there is still a mix match between the policy enunciation and concrete investments needed to be fully TBL complaint. The study recommended that Nigerian banks should devote more resources towards meeting the increasing social, environmental,and ecological demands on them in line with global best practices.Item Tackling infrastructural gap in Nigeria: the pension fund option(Redfame Publishing, 2018) Onwuka, I. O.; Nwafor, M. C.The paper reviewed the prospect of using the hugely untapped pension funds to bridge infrastructural financing gap in Nigeria. Infrastructure financing is estimated to cost Nigeria a total investment of USD2.9 trillion over the next 30 years to bring it to the level that can be competitive and self-sustaining. This huge investment outlay is clearly beyond the yearly fiscal operations of government. However, there is a glimmer of hope by way of pension funds, which as at August, 2016, is in excess of N5.9 trillion. This phenomenal growth in pension funds presents a rare opportunity to bridge the nation's current infrastructure gap by leveraging part of the huge pension assets for developmental purposes. The authors argued that there is need to review the regulatory and institutional framework in pension funds administration to make way for a creative use of some of the pension funds to fund infrastructure-creating a veritable profitable investment outlay for the pension funds contributors and at the same time providing the needed funding for critical infrastructure financing in the country.Item Impact of Capital Market on Domestic Resource Mobilization for Economic Development in Nigeria (2000-2015)(International Organization of Scientific Research (IOSR Journals), 2016) Bertram, O. A.; Nwankwo, S.N.P.; Onwuka, I. O.The study investigated the impact of Nigerian capital market on domestic resource mobilization for economic development, using time series data from 2000 to 2015. The study employed secondary data obtained from the Central Bank of Nigeria Statistical Bulletin, the Nigerian Stock Exchange Fact Book and Securities and Exchange Commission database. To evaluate the impact of the independent variables on the dependent, the ordinary least square (OLS) method of estimation was employed. Augmented Dickey Fuller (ADF) test was used to identify the order of integration. Economic growth was proxied by Gross Domestic Product (GDP) while the capital market variables considered include: Market Capitalization (MCAP), Total New Issues (TNI) and value of transactions (VLT). Applying Johansen and Juselius co-integration test, the result showed that there was at most one co-integrating equation in the model, implying that there is a long run relationship between the variables in the model. The causality test results suggest bidirectional causation between the GDP and the value of transactions (VLT) and to the GDP but not vice-versa. Using two-tailed test, the F-statistics is significant at 5 percent level of significance. Furthermore, there was no evidence of reverse causation from GDP to market capitalization and there was no evidence of independence causation between the GDP and total new issues (TNI). The study showed that the major problem with domestic resource mobilization in Nigeria have been that not enough savings are being generated to facilitate the required investment. Also, the type of savings available does not easily make financial intermediation possible. The Nigerian stock market has been constrained by policies that tend to make the exchange look like a mechanism by which government raise loan finance rather than an instrument for mobilizing industrial finance. It is recommended therefore that the regulatory authority should appraise and modify the restrictive policies that constrained resource mobilization capacity of the Nigerian capital marketItem Mobile banking or m-banking is becoming a prominent feature in banking operations in Nigeria with more and more banks adopting this technology in order to provide the growing population of their customers with fast, accessible, reliable and quality services. The technology of mobile banking has emerged as a possible powerful provider of bundle of banking services. The mobile banking system involves the use of a mobile device (e.g. phone) to pay for goods or services either at the point of sale or conduct of banking transactions anywhere and anytime. The study evaluated the attitude of bank customers towards the adoption of M-banking services and challenges of mobile phone in conducting banking transactions in Nigeria with analytical focus on Enugu State. The survey research approach was adopted and data were collected from 200 respondents that include bank staff and customers of selected banks in Enugu metropolis. The analysis of data was conducted using descriptive statistical technique. The study revealed that the level of adoption of mobile banking in Enugu State is still low among the middle aged respondents compared to the aged. A massive awareness program to publicize the purpose and benefits derivable from the use of mobile banking should be encouraged. This, it is hoped, will boost the level of adoption of mobile banking services because of the convenience and accessibility offered by this banking platform.(Seahi Publications, 2016) Agu, B. O.; Nwankwo S. P. N.; Onwuka, I. O.Mobile banking or m-banking is becoming a prominent feature in banking operations in Nigeria with more and more banks adopting this technology in order to provide the growing population of their customers with fast, accessible, reliable and quality services. The technology of mobile banking has emerged as a possible powerful provider of bundle of banking services. The mobile banking system involves the use of a mobile device (e.g. phone) to pay for goods or services either at the point of sale or conduct of banking transactions anywhere and anytime. The study evaluated the attitude of bank customers towards the adoption of M-banking services and challenges of mobile phone in conducting banking transactions in Nigeria with analytical focus on Enugu State. The survey research approach was adopted and data were collected from 200 respondents that include bank staff and customers of selected banks in Enugu metropolis. The analysis of data was conducted using descriptive statistical technique. The study revealed that the level of adoption of mobile banking in Enugu State is still low among the middle aged respondents compared to the aged. A massive awareness program to publicize the purpose and benefits derivable from the use of mobile banking should be encouraged. This, it is hoped, will boost the level of adoption of mobile banking services because of the convenience and accessibility offered by this banking platform.Item Combating money laundering and terrorist financing - the Nigerian experience(Seahi Publications, 2016) Agu, B. O.; Nwankwo, S. N. P.; Onwuka, I. O.Money Laundering and Terrorist financing have become a serious problem facing the social, economic and political roots of Nigeria. Money Laundering is a process by which large amounts of illegally obtained money from drug trafficking, terrorist activity or other serious crimes, is given the appearance of having originated from a legitimate source. Terrorist financing is defined to include both legitimate and illegitimate money characterized by concealment of the origin or intended criminal use of the funds. The techniques used to launder money are essentially the same as those used to conceal the sources of, and uses for, terrorist financing. The activities of money launderers and terrorists are highly secretive and do not lend themselves to statistical analysis. These ugly monsters called terrorism and money laundering have adverse impact on the economy and political stability of a country and hence such an activity must be curbed with all seriousness. This paper discussed the concepts, significance and the impact of terrorist financing and money laundering in Nigerian economy. The paper observes that developing countries such as Nigeria and other member states of the ECOWAS and African Union AU face certain challenges in fully implementing the Financial Action Taskforce (FATF) recommendations because of lack of capacity and lack of financial resources amongst other reasons. Nations of the world must join hands and resources together in adopting measures aimed at dismantling syndicates engaged in money laundering by resorting to aggressive enforcement of anti-money laundering/ combating financing terrorism (AML/CFT) laws. It is, therefore, important that Nigeria establishes relationships with the international community so as to enhance intelligence gathering and sharing, law enforcement cooperation, economic sanctions, and in turn disrupt the flow of terrorist funding.