DEPARTMENT OF BANKING AND FINANCE

This study examined the determinants of income inequality in Nigeria for the period 1981 to 2023. For this purpose, four determinants of income inequality, namely government expenditure, access to credit, inflation rate and financial development were considered in this study using the ARDL bound testing procedure. The results showed that the four variables (government expenditure, access to credit, inflation rate and financial development) exert insignificant negative effect on income inequality in Nigeria in the short-run. We conclude that the selected variables are not key factors that influence income inequality in Nigeria within the studied period. To achieve more equitable distribution of income, the study recommends that implementation of policies that deepen the financial system and increase spending by .policy makers should focus on expenditure that affects the low income earners in order to reduce income inequality in Nigeria. Also, relaxing borrowing constraints is advocated so that the people with less income and small firms can make use of private credit, which helps them to increase their earning opportunities and creating additional employment for the local community. Furthermore, government should embark on expansionary fiscal and monetary policies to boost aggregate output as a measure to curb inflation and also implement policies that will deepen the financial system in Nigeria in order to improve income distribution and thus reduces inequality.

This study investigates the impact of financial innovation on the Nigerian banking industry, with a focus on its effects on customer satisfaction, retention, and patronage, as well as the challenges customers face when using innovative banking services. A total of 200 questionnaires were distributed among bank customers in Benin City, Edo State, of which 100 were completed and analyzed using SPSS version 20.0, employing both descriptive statistics and regression tests. The findings indicate that financial innovation significantly enhances customer satisfaction (B = 0.666, t = 16.821, p = .000) and influences customer patronage (B = 0.152, t = 2.815, p = .005), but has an insignificant impact on customer retention (B = 0.085, t = 1.223, p = .222). Moreover, the study reveals notable challenges including technical issues, security concerns, delays in transaction processing, and slow complaint resolution. Based on these results, it is recommended that banks continue to invest in user-friendly digital platforms, integrate personalized customer relationship management strategies to improve retention, employ targeted marketing to enhance patronage, and upgrade their IT infrastructure to address operational challenges.

This study investigates the impact of bank credit on economic growth in Nigeria applying the multivariate ordinary least square (OLS) technique using time series data from 1981 to 2020. Real gross domestic product (RGDP) is the dependent variable and proxy for economic growth while bank credit to the private sector (PSC) and aggregate bank credit (ABKC) were proxies for bank credit respectively. A major finding is that there is a significant negative relationship between bank private sector and economic growth while a significant positive relationship was found between aggregate bank credit and economic growth. Inflation rate and trade openness were found not to be a key factor that influence economic growth in Nigeria for the period studied. The study recommends that government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector. The Central Bank of Nigeria, through the use of its credit control instruments should regulate the interest rates to enable the private sector borrow at a moderate rate thereby enhancing investment, which in turn leads to economic growth. Also, the monetary authorities and other financial institutions should be strengthened in their regulatory frame work and capacity to maintain financial stability and banking sector reforms.

This research work deals with the Impacts of Payment System on Small and Medium Enterprises in Nigeria over the period of 1990-2020.The introductory aspect of the project talks about the background of the study and the analysis of the payment system on small and medium enterprises. Also the statements of the problem of a successful payment system are well explained. This study also attempted to provide an answer to the question raised under the problem the problem statement. It also talked about the objective of the study which is to test empirically the payment system as an important variable and more so of its impact on small and medium enterprises. The literature review talks about the opinion of various authors, that’s what their view is about payment system. Their view are based on the terminologies of payment system, the conceptual and theoretical framework in payment system were analyzed and the review of empirical studies. The essence of the Chapter Three is to provide information on the research method, which is the model specification, sources of data and estimation techniques as well as the justification for the choice of the estimation techniques, used in the analysis and presentation of the information and data collected. Chapter Four centers on data presentation, analysis, and interpretation of results. The objective of the analysis is to provide a detailed description on the empirical investigation of the relationship between Total Volume of Mobile Money transactions (VLMOB), Total Volume of ATM transactions (VLATM), Total Volume of POS transactions (VLPOS), Total Volume of WEB transactions (VLWEB), Commercial Banks Loans to Small Scale Enterprises (CBSME).The concluding aspect of this project is that best management cannot turn around ailing small and medium enterprises without a payment system: likewise small and medium scale enterprises cannot operate with unreliable payment system

The study investigated stock market synchronization and market volatility in Nigeria for a period of 11 years (2009 to 2019). The rationale for the present study is predicated on the fact that the stock market play a significant role in the economy of every country across the globe. The study employed the regression analysis techniques on variables such as all share index (ASI), treasury bill rate (TBR), broad money supply (M2), oil price (OP) and exchange rate (EXRT). The empirical results revealed that; treasury bill rate (TBR) has a negative in significant effect on all share index in Nigeria within the period of investigation; broad money supply has a positive insignificant effect on all share index in Nigeria; Oil price(OP)exert significant and favourable impact on all share index in Nigeria; and exchange rate has a negative significant impact on all share index in Nigeria. The study recommends among others that; the Nigerian monetary authority should ensure exchange rate stability so as to encourage rate capital inflows in the economy; to ensure effective expansionary monetary policy in the economy, the Central Bank of Nigeria should strengthen the financial system so that broad money supply in circulation can contribute significantly to the performance of the capital market; and appropriate monetary measures should be undertaken to ensure stock price synchronization in order to the performance of the stock market in Nigeria.

Corporate mortality modeling refers to the process of predicting the likelihood of a company in a specific sector going out of business or experiencing financial distress. In the manufacturing sector, understanding and accurately predicting corporate mortality is highly important due to the complex and volatile nature of the industry. This work focuses on the analysis of corporate mortality in the manufacturing sector. The manufacturing sector plays a vital role in the global economy, employing a significant number of individuals and contributing to GDP. However, it also faces numerous challenges, such as intense competition, technological advancements, changing consumer demands, and economic fluctuations. The objective of this study is to develop a robust corporate mortality model specifically designed for the manufacturing sector. The model will incorporate various financial and non-financial factors that may influence the likelihood of a company going out of business. Financial factors such as profitability, liquidity, leverage, and solvency will be considered, along with non-financial factors such as industry dynamics, management quality, and market conditions. Data will be collected from a sample of manufacturing companies over a specific period of observation. This data will be used to build a predictive model using advanced statistical techniques such as logistic regression, survival analysis, and machine learning algorithms. The model will be validated using historical data and tested for its predictive accuracy. The results of this study will provide valuable insights into the factors that contribute to corporate mortality

This study examines the relationship between dividend policy and the financial performance of deposit money banks in Nigeria. Dividend policy remains a critical financial decision that influences investors’ confidence and the overall valuation of firms, particularly in the banking sector. The study adopts an ex-post facto research design and utilizes secondary data obtained from the annual reports and financial statements of selected deposit money banks listed on the Nigerian Exchange Group over a specified period.Key variables considered include dividend payout ratio, dividend yield, and retention ratio as proxies for dividend policy, while financial performance is measured using indicators such as return on assets (ROA), return on equity (ROE), and earnings per share (EPS). The data are analyzed using descriptive statistics, correlation analysis, and multiple regression techniques to determine the nature and strength of the relationship between dividend policy and bank performance. The findings reveal that dividend payout has a significant positive effect on the financial performance of deposit money banks, suggesting that consistent dividend payments enhance investor confidence and market value. However, retention ratio shows a mixed effect, indicating the need for banks to strike a balance between profit distribution and reinvestment for growth. The study concludes that an optimal dividend policy is essential for improving the financial performance and sustainability of deposit money banks in Nigeria. It recommends that bank management should adopt a stable and well-structured dividend policy that aligns with profitability, liquidity position, and long-term growth objectives

The relevant goal of this study was to empirically examine the relationship betweencredit risk management and financial performance of deposit money banks in Nigeriafor a period of 9 years (2009 to 2017). The rationale for the study was basedontherealization that credit risk is one of the most sensitive exposures facing the financial performance of any deposit money banks in the world today. Failure to ef ectivelymitigate its adverse ef ect, will spell doom for the banks. Descriptive statistics andcorrelation coef icient were used to examine the background characteristics of thevariables. The panel data analysis econometric technique was employed for the mainanalysis of the study. The findings from the empirical analysis, on the basis of the fixed ef ect indicatethat nonperforming loans and bank size have significant negative impact on the banks’ financial performance in Nigeria. While capital adequacy, loan loss provisionandliquidity ratio does not have significant impact on banks ’financial performanceinNigeria. The study recommends among others that; management needs to be cautious insetting up a credit policy that can be strongly linked with profitability in the banks. Management also needs to know how credit policy af ects the operation of theirbanks to ensure judicious utilization of deposits and maximization of profit. Impropercredit risk management reduces the bank profitability, af ects the quality of its assetsand increase loan losses and non-performing loans which may eventually leadtofinancial distress. Also, management should not solely concentrate on the profit maximization concept but should also adopt measures that will ensure ef ectiveliquidity management. These measures will help to minimize or avoid cases of excessive variation in banks ’ liquidity position..

This research delves into the realm of credit risk modeling within the life insurance sector. It setout with several objectives, including identifying effective methods for modeling credit risktailored to life insurance companies, evaluating the repercussions of credit risks on these insurers, investigating the advantages of extending credit to them, exploring the connection betweencreditpractices and the performance of insurers, and gauging the accessibility of credit facilities forinsurers. To conduct this investigation, a combination of descriptive and explanatory research designs wasemployed. Data collection encompassed the use of questionnaires and library research. Theprimary data sources consisted of responses gathered from 32 employees at AfricanAllianceInsurance Plc in Benin. Data analysis hinged on the chi-square statistical tool with a significancelevel set at 5%. The findings, displayed through frequency tables and percentages, unveiledthatinsurance companies grapple with substantial credit risks that have adverse effects ontheiroperations. Consequently, the study recommends that the Nigerian government and relevant stakeholdersshould collaborate to establish a credit model for insurance facilities that carries lower levelsof risk, in alignment with the insights derived from this research..

The study looks at the impact of consumer attitudes on insurance sales contracts in Benin Metropolis, Edo State, Nigeria. A structured questionnaire was sent across eight departments of the University of Benin's Faculty of Management Sciences in Benin City to collect primary data. Of the 110 questionnaires distributed, 100 were returned. We employed percentage analysis for demographic data, descriptive statistics for average responses to questions, and the Ordinary Least Squares (OLS) regression method to determine the impact of customer attitudes and other variables consider on insurance contract sales. The finding reveals that consumers’ attitude, employment and income have significant effect on insurance contract sales in Benin metropolis at 1%and5%level respectively (except for income). Thus, the study concludes that consumers’ attitudes affect insurance contract sales in Benin metropolis of Edo state, Nigeria.