DEPARTMENT OF FINANCE

The study examined the effect of financial system development and gross capital formation in Nigeria, over a 15-year period, from 2009 to 2023. The specific objectives of the study were to examine the effect of financial openness on gross capital formation in Nigeria, the impact of financial deepening on gross capital formation in Nigeria., determine the influence of market capitalization on gross capital formation in Nigeria, assess the effect of value of stock traded on gross capital formation in Nigeria., and to evaluate the impact of insurance penetration on gross capital formation in Nigeria. To this end, the longitudinal research design was utilized in this study. The findings revealed that financial openness (FINOPEN) has a weak negative relationship with gross fixed capital formation (GFCF) in Nigeria both in the short run and in the long run, that
financial deepening (FNDEEP) is a significant determinant of gross fixed capital formation(GFCF)in Nigeria in the short run; but in the long run, it does not have any significant impact, that market capitalization (MACAP) has a weak positive ef ect on gross fixed capital formation (GFCF) intheshort run; but in the long run, it is a potent factor, that value of stock traded (VASTOC) does not have significant impact on gross fixed capital formation (GFCF) in Nigeria both in the short term
run and in the long run, that insurance penetration (INSPEN) has a significant negative relationship with gross fixed capital formation (GFCF) in the short run; but in the long run, it does not significantly affect gross fixed capital formation., and that in the short run, total insurance premium (TOPREM) is a significant factor in the determination of gross fixed capital formation(GFCF), but not in the long run. The study concludes that that, market capitalization (MACAP) is a
very potent financial system development variable for enhancing GFCF in Nigeria in the long run; while in the short run, deepening (FNDEEP), insurance penetration (INSPEN) and total insurance premium (TOPREM) are relevant factors to be considered in terms of improving the level of gross fixed capital formation (GFCF) in Nigeria.

This study examines the impact of capital structure on firm performance among oil and gas firms listed on the Nigerian Exchange Group (NGX) from 2014 to 2023. Given the capital-intensive nature of the industry, understanding the relationship between debt and equity financing is crucial for optimizing financial performance. The study employ sanex-post facto research design, relying on secondary data sourced from annual financial
reports, the NGX database, the Central Bank of Nigeria (CBN), and the National Bureau of Statistics (NBS).
A panel data regression model is used to assess the effect of key capital structure variables—debt-to-equity ratio, debt ratio, equity ratio, and long-term debt to assets ratio—on firm performance, measured through Return on Assets (ROA) and market
value. The study applies descriptive statistics, correlation analysis, and panel regression techniques, using the Hausman test to determine the appropriate model (Fixed Effects or Random Effects). Diagnostic tests are also conducted to ensure the validity and reliability of the regression results.
Findings from the study are expected to provide empirical evidence on how leverage influences financial performance, offering insights for corporate managers, investors, and policymakers in optimizing capital structure decisions. The study contributes to existing literature by incorporating Environmental, Social, and Governance (ESG) considerations, which have gained prominence in corporate financing decisions.

This study delves into the intricate relationship between monetary policy and commodity prices in Nigeria, with a focus on the period between 2000 and 2023. Utilizing a vector utoregression (VAR) model and impulse response functions, this research investigates the dynamic effects of monetary policy tools, including interest rates and money supply, on commodity prices. The findings reveal that monetary policy has a significant impact on commodity prices, with interest rates exhibiting a more pronounced effect. Specifically, an increase in interest rates leads to a decrease in commodity prices, while an expansion in money supply results in an increase in commodity prices. The study's outcomes have profound implications for policymakers, as they underscore the importance of carefully calibrating monetary policy to mitigate inflationary pressures and stabilize commodity prices. Ultimately, this research contributes to the existing literature by providing fresh insights into the monetary policy-commodity price nexus in Nigeria,
and offers valuable recommendations for policymakers seeking to promote economic stability and growth.

In this study, the main aim was to examine the influence of rate structure on the value of money in the Nigerian economy. Literature was reviewed with respect to the value of money and rate effect. The study utilized data from variables that examine rate effect on economic activities such as inflation rate, exchange rate, interest rate, monetary policy rate and lending rate. The focus of the study was the Nigerian economy. The study employed the ARMA Maximum Likelihood to estimate the data for empiricism and inferences. And also to estimate the hypothesized equation and the findings from the empirical investigation revealed Based on the results obtained from the study, the study concludes that in the Nigerian economy, the value of money is greatly impacted by two major variables of inflation rate and exchange rate. These variables are variables that affect the activities of the economy given that the economy is not a closed economy. The other variables greatly associated with the banking sector are not found to have significant effect on the value of money in the economy. The Study therefore recommends that the major rate to watch out for in the economy are the inflation rate and the exchange rate, that investors should use the inflation rate and exchange rate trend to determine the trends in their investment decision and finally, that policy makers should use as proximate target, the inflation rate and exchange rate in policy formulation whether it be fiscal policy or monetary policy.

This study examined impact of information and communication technology (ICT) on Banks efficiency in Nigeria. The empirical model for this study is formulated based on relevant reviewed literatures, theoretical postulations and significant observed variables selected from highly methodological studies. The research design employed in this study is ex-post facto. This study is based on Nigeria as such the population of the study covers Access Bank, Zenith Bank, First Bank, GTBank, and UBA across 15 years (2008–2023). The key metrics include Return on Assets (ROA), Number of ATMs, Mobile Banking Transactions, and POS Transactions. The sampled size is more than 5 percent of the population (Five deposit money banks in Nigeria). The estimation procedures adopted in this study are in the following steps: Descriptive statistic of the series in the ,Augmented Dickey-Fuller (ADF) statistic unit root test to test for Stationary, Auto Regressive Distributive Lag (ARDL) model to test for long run relationship among the variables of interest, CUSUM Test to test for Model Stability, and Breusch-Godfrey Serial Correlation LM Test to check the presence of serial correlation among the variables. The regression results revealed that ATM Operations: Significantly and positively affect bank efficiency, highlighting their role in enhancing financial performance. Mobile Banking (Market Transactions): Exhibits a significant negative relationship with bank efficiency, suggesting potential implementation challenges or inefficiencies in mobile banking services. POS Operations: Shows a mixed impact on bank efficiency, with a significant negative effect in some models, indicating that while POS transactions increase convenience, they may also introduce operational inefficiencies. Based on the findings, the research therefore recommended that; Enhance ATM Services: Banks should continue to invest in ATM infrastructure, ensuring widespread availability and operational reliability to sustain and improve bank efficiency. Optimize Mobile Banking Platforms: Address the challenges associated with mobile banking by improving user experience, security features, and infrastructure to harness its potential for enhancing bank efficiency. Refine POS Operations: Evaluate and streamline POS transaction processes to reduce associated costs and inefficiencies. Training and support for merchants using POS systems should be enhanced to ensure smoother operations. Continuous Monitoring and Evaluation: Banks should implement robust monitoring systems to continuously evaluate the performance of electronic banking services, making necessary adjustments to optimize efficiency

This study examined the relationship between macroeconomic variables and stock market returns in Nigeria. Using a quantitative approach, the research analyzed how key economic indicators such as interest rates, inflation rates, exchange rates, GDP growth, and unemployment rates influenced the performance of the Nigerian stock market over the period from 1999 to 2024. The study employed secondary data sourced from the Central Bank of Nigeria and the Nigerian Exchange Group, utilizing econometric models, particularly the Ordinary Least Square (OLS) regression, to establish relationships between the variables. The findings revealed significant impacts of interest rates, inflation, and exchange rates on stock market returns, while GDP growth and unemployment rates exhibited a moderate correlation. The study highlighted the complex interplay of these macroeconomic variables and the vulnerability of the stock market to economic shocks. The results provided valuable insights for policymakers, investors, and researchers, suggesting that effective management of these macroeconomic factors was crucial for stabilizing the Nigerian stock market and fostering sustainable economic growth. Recommendations included monetary policy adjustments, fiscal reforms, and targeted strategies to address inflation and unemployment, which could enhance investor confidence and improve stock market performance.

This study empirically investigated the impact of fiscal policy on economic development in Nigeria, covering the period from 2005 to 2022. Driven by the persistent challenge of low growth and high poverty rates despite resource wealth, the research specifically assessed the influence of Government Expenditure, Taxation (Non-Oil Revenue), and Public Debt on key indicators like GDP growth and Non- Oil Sector Contribution. Utilizing an ex-post facto design and applying time series econometrics, including the Error Correction Model (ECM), the study confirmed a long-run relationship among the variables. Findings revealed that while Government Expenditure had a positive and significant effect on GDP growth, both Taxation and Public Debt posed challenges: non-oil revenue was insignificant in driving diversification, and public debt had a significant negative long-run impact on development. The study concludes that the effectiveness of Nigeria's fiscal policy is currently undermined by an ineffective tax regime and an unsustainable debt burden. The key recommendation is for the government to implement urgent and holistic tax reforms alongside a strict debt management strategy to redirect resources toward productive capital investment and achieve sustainable economic development.

The study investigated the debt-equity mix and performance of deposit money banks in Nigeria. Panel data analysis technique was adopted using both preliminary analysis and multiple least square regressions to estimate the relationship between the dependent and independent variables. A sample of five deposit money banks from the Nigerian stock exchange was selected between the period of 2010-2017 based on available data. Based on the analysis carried out the study recommends amongst others that management should try as much as possible to finance their operations using equity and reduce their debt uptake in order to improve their performance.