Papers by Akaninyene Orok
Short-term financial health is essential for any business to stay stable, face economic challenge... more Short-term financial health is essential for any business to stay stable, face economic challenges, and pursue growth opportunities. This study examines the impact of liquidity management strategies, including the Loan to Deposit Ratio (LDR), Cash Reserve Ratio (CRR), liquid assets to ratio (LATR), and overall liquidity, on the financial performance of banks in Nigeria, as measured by Constant Return to Scale Efficiency. Secondary data from the Central Bank of Nigeria's bulletin were analyzed. The research uses Ordinary Least Squares (OLS) multiple regression analysis to estimate the model. Results indicate that CRSE is negatively related to LASFR but positively related to LR, LTDR, and CRR, highlighting implications for improving asset quality and policy development to decrease non-performing loans, as recommended for the Nigerian banking sector. The finding that an increase in CRR positively impacts banks' performance aligns with Liquidity Preference Theory. This suggests that, in our context, banks' liquidity management strategies respond to changes in CRR by adjusting their liquid assets, likely anticipating shifts in interbank lending rates. This proactive approach to liquidity management helps improve financial performance.
For the purpose of fostering economic expansion, enabling financial intermediation, assuring the ... more For the purpose of fostering economic expansion, enabling financial intermediation, assuring the efficient operation of markets, controlling risks, and preserving financial stability, banks' capacity to create and distribute liquidity is essential. This research assessed impact of liquidity creation on bank's performance. Using Ordinary Least Square model to analyse a time series of United Bank for Africa Plc from 2004-2021, findings reveals that the bank's ROA, ROE, and PBT had no significant correlation with the ratios of Cash and Due from Banks to Total Assets (CTTA), Impaired Loans to Gross Loans (ILTGL), Net Loans to Total Assets (NLTTA), or Loans Less Customer Deposits to Total Assets (CDTA). However, the bank's ROA, ROE, and PBT were significantly influenced by the Cost to Income ratio (COST) and Tier 1 Capital to Total Assets (T1TTA). It was suggested, among other things, that the phenomenon of Non-Performing Loans contributed to this outcome by lowering the performance of each bank's loan portfolio. Therefore, managers must devise measures to reduce non-performing loans. Banks should reduce the credit risk of their investments and maintain their liquidity primarily through their capital reserves (such as Tier 1 Capital).
This study examined monetary policy variables and their impact on the performance of selected man... more This study examined monetary policy variables and their impact on the performance of selected manufacturing firms in Nigeria. The objectives were to evaluate how money supply, the monetary policy rate, interest rate, and exchange rate influence manufacturing firm performance in Nigeria, using Dangote Group as a case study. The study used the ordinary least squares (OLS) multiple regression method to test and estimate relevant equations. The results showed a positive and significant relationship between money supply and Dangote Group's performance; the monetary policy rate also had a positive and significant effect on Dangote companies, while the interest rate had a significant negative effect on their performance. The study therefore recommended that monetary authorities should improve current macroeconomic variables, such as money supply and inflation, to enhance manufacturing sector performance. Additionally, it suggested that monetary authorities should continue adjusting the monetary policy rate to promote stability and improve the performance of Nigeria's manufacturing sector.
This study examines how Nigeria's economic growth is influenced by health financing. Its goals we... more This study examines how Nigeria's economic growth is influenced by health financing. Its goals were to determine the effect of government recurrent spending on health and economic growth in Nigeria, as well as the relationship between government capital expenditure and health spending. The study used time series data from 1990 to 2022 and adopted an ex post facto research design. Ordinary least squares (OLS) was used for data analysis. The conclusion was that there is no significant correlation between Nigeria's economic growth and government capital spending on health. Further analysis showed that Nigeria's economic growth and government recurrent health spending do not have a strong relationship. To promote sustainable economic growth, it is recommended that the government increase its budget allocation to the health sector. Additionally, the government should ensure timely payment of health workers' salaries, wages, and benefits, which can motivate them to work more efficiently and increase per capita income.
Calabar Journal of Finance and Banking, 2024
This study focused on the influence of debt overhang and dual gap theory on human development in ... more This study focused on the influence of debt overhang and dual gap theory on human development in West Africa. To enhance its efficacy and promote human development in Ghana and Nigeria, it aimed to assess the significance of the external debt burden and propose solutions. Employing an ex-post facto research design, several macroeconomic and human development variables were utilized to achieve the study's objectives. Two ECOWAS countries were selected to constitute the study's population and sample size. The data were aggregated, analyzed, and tested using countryspecific descriptive statistics and ARDL analysis procedures. The analysis revealed that the foreign debt burden had a significant, though negative, impact on Ghana's human development index, while the external debt service payment to gross domestic product was not significant. Furthermore, the external debt service payment to gross domestic product and external debt burden both non-significantly and adversely affected the human development index in Nigeria. This suggests that education, health, and per capita income-all components of the Human Development Index (HDI)-decline as the share of revenue allocated to debt servicing increases. This also occurs as additional debts are incurred, especially beyond the capacity of most West African Monetary Zone member economies. Based on these findings, the study recommended that to reduce Ghana's reliance on external debt funding, the country's economy should consider the external debt thresholds while formulating its external debt management policy. To address the resulting fiscal imbalance, domestically generated revenue-especially tax revenue-should be revitalized and increased to significantly minimize tax evasion and avoidance. The Nigerian government should also seek loans with favorable terms and conditions following a thorough assessment rather than solely based on need, to reduce the cost of debt and alleviate the negative effects of external debt and associated payment obligations. A robust capital market will lower the borrowing rate from external sources.
Calabar Journal of Finance and Banking , 2023
This empirical work was conducted to determine the extent to which the money market influences th... more This empirical work was conducted to determine the extent to which the money market influences the development of the Nigerian economy, covering the period from 1986 to 2019. The impact of Treasury bills, commercial paper, certificates of deposit, and banker's acceptances issued within this timeframe was evaluated in relation to economic development in Nigeria. The study relied on secondary data, which underwent preliminary testing for multicollinearity to ensure the stability of the variables and the model. Data analysis was conducted using the OLS technique. The results revealed that commercial paper, Treasury bills, and certificates of deposit significantly influenced Nigeria's economic development, while banker's acceptances had a negative but insignificant impact. It was recommended that banker's acceptances as a money market instrument should be strengthened to contribute positively to economic growth. Financial regulators should implement policies to enhance stakeholders' understanding of money market operations and to prevent malpractices.
Social Science Research Network, Sep 1, 2017
The study portrayed the impact of Agricultural credit Guarantee scheme fund (ACGSF) on Agricultur... more The study portrayed the impact of Agricultural credit Guarantee scheme fund (ACGSF) on Agricultural Sector Development in Nigeria. Specific objectives were to ascertain the relationship between the ACGSF and the output of the crop sector in Nigeria, to examine the relationship between ACGSF and the output of the livestock sector in Nigeria, and to determine the relationship between ACGSF and the output of the fishery sector in Nigeria measured by respective gross domestic product (GDP). Secondary data were sourced from Central Bank of Nigeria Publications and Statistical Bulletin. Multiple linear regression of ordinary least square (OLS) model was adopted to establish the relationship between dependent and independent variables. Findings revealed a positive and significant relationship between ACGSF and the agricultural sector development evaluated by the sustained rise in its contribution to GDP. The study also revealed that the scheme had given more funds and impacted more on the crop sector over the livestock and fishery sector. The study recommends among others that the scheme should be sustained and the government should invest more in Agricultural development, and measures should be put in place by the management of the scheme to reduce default in payment arising from borrowers.
This study sought to assess the significance of dividend policy and suggest measures that could e... more This study sought to assess the significance of dividend policy and suggest measures that could enhance its effectiveness on firms' performance in Nigeria. To achieve the objective, some financial and performance indicators were evaluated. The ex-post facto research design was adopted and the data were collated, analyzed and tested using the descriptive statistics and the panel data analysis techniques. Analysis revealed that without the moderating variable (corporate governance index), dividend payout ratio was statistically insignificant both in the short run and long run periods. This implies that without the moderating variable, the relationship between dividend payout ratio and firm performance is a matter of chance. While, with the moderating effect, dividend payout ratio became statistically significant in the short run as well as in the long run indicating that existence of a relationship between dividend payout and firm performance is not caused by chance. Also, without the moderating variable, dividend per share was statistically insignificant in both the short and long run periods. The investigation concluded that amongst the various dividend policy options considered, dividend payout ratio is the most critical dividend policy measure that determines the performance of a firm both in the short and long run periods. The study recommended among others that listed firms that are willing to maximize shareholders wealth and firms value should consistently increase their dividend payout ratio as this signals that the firm is financially healthy.
Journal of banking and financial dynamics, 2018
This study focused on the effect of interest rate policy on the growth of the Nigerian economy. I... more This study focused on the effect of interest rate policy on the growth of the Nigerian economy. It sought to assess the significance of interest rate, and to suggest measures that could enhance economic growth in Nigeria. To achieve the objective of the research, some macroeconomic indicators in the Nigerian economy, using an ex-post facto research design were applied. The data were analyzed using the Ordinary Least Square (OLS) method. From the examination, it was uncovered that there was a huge connection between financing cost and GDP in Nigeria. It was additionally found that there was a huge connection between rate for currency exchange and total national output in Nigeria. Inflation was likewise found to significantly affect total national output in Nigeria. In light of these discoveries, it is suggested that the Central Bank of Nigeria (CBN) ought to structure policy framework on the rate of interest that will dependably support and encourage culture of savings in the real sector. This can be accomplished by expanding the rate accruing to savings from foreign and local investors. Additionally, aggregate economic output should be seen as the bane of government policy thrust, through bringing down of rate charged to lending and expanding rate to savings, as this improves financial development.
Optimizing Bank Performance through Loan Recovery in Nigeria: A Comprehensive Analysis of Loan Recovery Strategies of Ecobank Plc
Journal of Business Strategy Finance and Management
Banks have significant difficulties in recovering debt, especially when consumers are no longer a... more Banks have significant difficulties in recovering debt, especially when consumers are no longer available following loan disbursement. This study carefully examines the effects of debt management and recovery on bank performance, paying particular attention to the applicability of the credit theory of money. The study's main goals are to thoroughly comprehend the various debt recovery strategies used in Nigeria's banking industry and investigate the connections between outstanding debt, recovered funds, loan client retention, and bank performance. To evaluate the given hypotheses and determine the relationships between these variables, the Chi-Square test was used. The data show that outstanding debt has a considerable influence on bank performance, supporting the credit theory of money. Additionally, a positive correlation between bank performance and loan client retention is discovered and the study finds a link between bank profitability and client relationships. The deve...
This study empirically examined the effect of external debt on economic growth in Nigeria under t... more This study empirically examined the effect of external debt on economic growth in Nigeria under the period of 37 years (1981-2017). The study specifically examined the influence of external debt, external debt service payment and exchange rate on economic growth proxy as real gross domestic product. The study employed least square econometric technique to ascertain the relationship between external debt variables and economic growth in Nigeria. The study found that external debt and external debt service payment have negative effect on economic growth while exchange rate has positive effect on economic growth in Nigeria. The coefficient of multiple determinations (R) showed that approximately 77% of variations in economic growth are explained by the explanatory variables (EXTD, EXTDS and EXR) while the remaining 23% is accounted by factors not specified in the model. However, The Durbin Watson correlation test indicated that there is positive autocorrelation in the model which impli...
Contributory Pension Fund Assets and Economic Performance of Nigeria
Frontiers in Management Science, Oct 1, 2022
This study examined contributory pension fund assets on economic performance of Nigeria, specific... more This study examined contributory pension fund assets on economic performance of Nigeria, specifically, to determine the impact of pension fund assets on the real capital market capitalization in Nigeria. The proxies for measuring pension fund assets included ordinary shares, government securities, corporate debt securities, money market instruments, real estate property and other securities. To achieve the stated objectives, the study adopted the exploratory research design and employed the ordinary least square (OLS) estimation technique within the modelling framework of autoregressive distributive lag (ARDL) analytical methods in testing and in the estimation of the relevant equations. The findings from the analyses revealed that the relationship between pension fund assets and real capital market capitalization in Nigeria was found to be positive and significant in the long run as well as in the short-run. In conclusion, contributory pension fund asset has effective and efficient capacity in boosting economic performance (capital market capitalization) in Nigeria. Based on the findings from this study, there should be more investment of pension fund in ordinary shares, government securities, money market instruments and other forms of assets in order to boost credit to core private sector in Nigeria.
This study focused on diaspora remittances and its effect on economic growth in Nigeria. It sough... more This study focused on diaspora remittances and its effect on economic growth in Nigeria. It sought to assess the signification of diaspora remittances, and to suggest measures that could enhance its effectiveness and economic growth in Nigeria. To achieve the objective of the research, some macroeconomic indicators in the Nigerian economy were evaluated using an ex-post facto research design. The data were collected, analyzed and tested using the Ordinary Least Square (OLS) multiple. From the analysis, it was revealed that there was a significant relationship between total remittances and gross domestic product in Nigeria. Furthermore, workers remittance was found to have an insignificant effect on gross domestic product in Nigeria. Based on the findings, the study recommended that total remittance distribution should always be backed by predictable, sound, and proportionate regulatory framework, in order to stimulate the participation of reputable international financial organizations via risk management practices and good governance. Also, the government of Nigeria should work towards creating a conducive environment that will attract international remittances. Thus, the establishment of migrant office in the Federal and State Ministry of Foreign Affairs, with branches nationwide , will be a good step in the right direction in boosting workers remittance.
Law and Economy, Nov 1, 2022
The study examined the effect of lease financing on the performance of quoted consumer goods comp... more The study examined the effect of lease financing on the performance of quoted consumer goods companies in Nigeria for the period-2009 to 2018. Specifically, the study assesses the effect of finance or capital lease, leveraged lease and the moderating effect of firm size on lease financing and performance of consumer goods companies. It also employed historical research design in investigating cause and effect relationship among the variables. Using Desk Survey Method, data were collated from Annual Reports and Accounts of the companies. The Ordinary Least Square (OLS) Multiple Regression Technique, as well as descriptive statistics, was employed in the analysis of data. Pre-tests such as Panel Unit Root test and Johansen/Fisher combined co-integration were adopted to check the presence of non-stationary and long-run relationship respectively. Vector Auto Regressive Lag and Panel Vector Error Correction Model were also employed to address the issue of short-run and long-run dynamics. Estimated results showed that finance lease had a significant positive effect on the performance of quoted consumer goods companies in Nigeria. Leveraged lease and firm size exerted a significant negative effect on the performance of quoted consumer goods companies in Nigeria. Based on the results, it was recommended amongst other things that the amount of debt used in the firm capital mix should be proportionate to the size of the firm in terms of its assets and capacity to produce consumer goods. Also, firms should reduce the use of finance or capital lease as a financing option given the overall negative effect of lease financing on the performance of consumer goods companies in Nigeria; and rather adopt the use of operating lease which has an overall significant positive effect, especially in the short run.
International Journal of Scientific Engineering and Science Volume 4, Issue 1, pp. 52-57, 2020. ISSN (Online): 2456-7361, 2020
This study focused on diaspora remittances and its effect on economic growth in Nigeria. It sough... more This study focused on diaspora remittances and its effect on economic growth in Nigeria. It sought to assess the signification of diaspora remittances, and to suggest measures that could enhance its effectiveness and economic growth in Nigeria. To achieve the objective of the research, some macroeconomic indicators in the Nigerian economy were evaluated using an ex-post facto research design. The data were collected, analyzed and tested using the Ordinary Least Square (OLS) multiple. From the analysis, it was revealed that there was a significant relationship between total remittances and gross domestic product in Nigeria. Furthermore, workers remittance was found to have an insignificant effect on gross domestic product in Nigeria. Based on the findings, the study recommended that total remittance distribution should always be backed by predictable, sound, and proportionate regulatory framework, in order to stimulate the participation of reputable international financial organizations via risk management practices and good governance. Also, the government of Nigeria should work towards creating a conducive environment that will attract international remittances. Thus, the establishment of migrant office in the Federal and State Ministry of Foreign Affairs, with branches nationwide , will be a good step in the right direction in boosting workers remittance.
Paradigm Academic Press Frontiers in Management Science ISSN 2788-8592 OCT. 2022 VOL.1 NO.2, 2022
This study examined contributory pension fund assets on economic performance of Nigeria, specific... more This study examined contributory pension fund assets on economic performance of Nigeria, specifically, to determine the impact of pension fund assets on the real capital market capitalization in Nigeria. The proxies for measuring pension fund assets included ordinary shares, government securities, corporate debt securities, money market instruments, real estate property and other securities. To achieve the stated objectives, the study adopted the exploratory research design and employed the ordinary least square (OLS) estimation technique within the modelling framework of autoregressive distributive lag (ARDL) analytical methods in testing and in the estimation of the relevant equations. The findings from the analyses revealed that the relationship between pension fund assets and real capital market capitalization in Nigeria was found to be positive and significant in the long run as well as in the short-run. In conclusion, contributory pension fund asset has effective and efficient capacity in boosting economic performance (capital market capitalization) in Nigeria. Based on the findings from this study, there should be more investment of pension fund in ordinary shares, government securities, money market instruments and other forms of assets in order to boost credit to core private sector in Nigeria.
Paradigm Academic Press Frontiers in Management Science ISSN 2788-8592 . VOL.1 NO.3, 2022
This study examines export-import misalignment and gross fixed capital formation in Nigeria. Thre... more This study examines export-import misalignment and gross fixed capital formation in Nigeria. Three variables are used and myriad of control variables, spanning the period of 1981-2020. The model was tested with several econometrics and statistical instruments. The results from the findings indicates that, export-import misalignment has a negative and an insignificant impact on gross fixed capital formation, however, export and import impact gross fixed capital formation differently. There was a 30.3% threshold evidence as indicated in the F-statistics value in the model. We recommend that, the federal government of Nigeria should reprioritize her needs. They should spend more on capital expenditures as against the current trend of 68:32% allocations to recurrent and capital expenditures respectively. Efforts must be made to mobilize the desired level of gross national savings that could be big enough to attract foreign direct investments as FDI will help to complement our domestic savings. Government should work on her potentially exportable commodities. The proceeds should be utilized in the importation of needed technical tools and components. Basic infrastructures like good roads, electricity supply and security must be seen to be adequate. This will help to reduce the drudgeries currently being faced by manufacturers. Efforts should be geared towards a reduction in exchange rate distortion, volatility and general mismanagement. Policy formulators in Nigeria need to enact some investor friendly policies that will encourage, promote and attract more capital inflows (Be it official or private inflows) and provide a conducive and enabling environment for gross fixed capital formation to thrive. There is need to play down on speculative businesses and to invest into the real sectors of the economy. There is also the need to reduce the level of capital flight out of country. Inflows should be tied to specific, relevant and purposeful projects. This will help to create employment opportunities in the long run. Prudence and proper accountability should be the watchword in the management of accruals from official capital inflows and transfers. Production of petroleum products need be increased: Since the wealth of the nation is hinged on this mono-product. Lastly, macroeconomic projections should guide the overall level of expenditure etc.
Paradigm Academic Press Law and Economy ISSN 2788-7049 VOL.1 NO.3, 2022
This study sought to assess the significance of dividend policy and suggest measures that could e... more This study sought to assess the significance of dividend policy and suggest measures that could enhance its effectiveness on firms' performance in Nigeria. To achieve the objective, some financial and performance indicators were evaluated. The ex-post facto research design was adopted and the data were collated, analyzed and tested using the descriptive statistics and the panel data analysis techniques. Analysis revealed that without the moderating variable (corporate governance index), dividend payout ratio was statistically insignificant both in the short run and long run periods. This implies that without the moderating variable, the relationship between dividend payout ratio and firm performance is a matter of chance. While, with the moderating effect, dividend payout ratio became statistically significant in the short run as well as in the long run indicating that existence of a relationship between dividend payout and firm performance is not caused by chance. Also, without the moderating variable, dividend per share was statistically insignificant in both the short and long run periods. The investigation concluded that amongst the various dividend policy options considered, dividend payout ratio is the most critical dividend policy measure that determines the performance of a firm both in the short and long run periods. The study recommended among others that listed firms that are willing to maximize shareholders wealth and firms value should consistently increase their dividend payout ratio as this signals that the firm is financially healthy.
Law and Economy, 2022
The study examined the effect of lease financing on the performance of quoted consumer goods comp... more The study examined the effect of lease financing on the performance of quoted consumer goods companies in Nigeria for the period-2009 to 2018. Specifically, the study assesses the effect of finance or capital lease, leveraged lease and the moderating effect of firm size on lease financing and performance of consumer goods companies. It also employed historical research design in investigating cause and effect relationship among the variables. Using Desk Survey Method, data were collated from Annual Reports and Accounts of the companies. The Ordinary Least Square (OLS) Multiple Regression Technique, as well as descriptive statistics, was employed in the analysis of data. Pre-tests such as Panel Unit Root test and Johansen/Fisher combined co-integration were adopted to check the presence of non-stationary and long-run relationship respectively. Vector Auto Regressive Lag and Panel Vector Error Correction Model were also employed to address the issue of short-run and long-run dynamics. Estimated results showed that finance lease had a significant positive effect on the performance of quoted consumer goods companies in Nigeria. Leveraged lease and firm size exerted a significant negative effect on the performance of quoted consumer goods companies in Nigeria. Based on the results, it was recommended amongst other things that the amount of debt used in the firm capital mix should be proportionate to the size of the firm in terms of its assets and capacity to produce consumer goods. Also, firms should reduce the use of finance or capital lease as a financing option given the overall negative effect of lease financing on the performance of consumer goods companies in Nigeria; and rather adopt the use of operating lease which has an overall significant positive effect, especially in the short run.
This study sought to assess the significance of dividend policy and suggest measures that could e... more This study sought to assess the significance of dividend policy and suggest measures that could enhance its effectiveness on firms' performance in Nigeria. To achieve the objective, some financial and performance indicators were evaluated. The ex-post facto research design was adopted and the data were collated, analyzed and tested using the descriptive statistics and the panel data analysis techniques. Analysis revealed that without the moderating variable (corporate governance index), dividend payout ratio was statistically insignificant both in the short run and long run periods. This implies that without the moderating variable, the relationship between dividend payout ratio and firm performance is a matter of chance. While, with the moderating effect, dividend payout ratio became statistically significant in the short run as well as in the long run indicating that existence of a relationship between dividend payout and firm performance is not caused by chance. Also, without the moderating variable, dividend per share was statistically insignificant in both the short and long run periods. The investigation concluded that amongst the various dividend policy options considered, dividend payout ratio is the most critical dividend policy measure that determines the performance of a firm both in the short and long run periods. The study recommended among others that listed firms that are willing to maximize shareholders wealth and firms value should consistently increase their dividend payout ratio as this signals that the firm is financially healthy.
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Papers by Akaninyene Orok