Department of Finance

This study investigates the impact of foreign capital inflows on private sector development in Nigeria over the period 1990 to 2023. The analysis disaggregates foreign capital into four distinct components such as Foreign Portfolio Investment (FPI), Foreign Direct Investment (FDI), Foreign Aid (AID), and Remittances (REM), to examine their individual effects on domestic private sector credit as a proxy for private sector development. Utilizing the Robust Least Squares (RLS) estimation technique to address issues of model misspecification and data irregularities, the study finds that remittances exert a strong and statistically significant positive effect on private sector development, while FPI has a significant negative effect. In contrast, both FDI and foreign aid were found to have statistically insignificant impacts. The findings underscore the importance of capital quality and the domestic absorptive environment in determining the developmental impact of foreign inflows. The study concludes that while foreign capital remains essential for economic development, its effectiveness in enhancing the private sector depends critically on regulatory oversight, financial infrastructure, and macroeconomic stability. Policy recommendations include strengthening remittance channels, regulating speculative capital, and improving the investment climate for more productive FDI utilization.

The study examined the role of financial openness and foreign remittances inflows in capital market development in Sub-Saharan Africa over the period 1990 to 2023. The specific objectives of the study were to find out whether financial openness (FOPN), foreign remittances inflows, interest rate, exchange rate and inflation rate significantly affect capital market development in the Sub-Saharan Africa countries. Nigeria, Kenya and South Africa were used as sample++ size for the Sub-Saharan Africa capital markets. Using the panel fully modified least squares econometric technique, it was found that financial openness has a strong positive relationship
with capital market development in Sub Sahara Africa; foreign remittances inflows has a weak inverse relationship with capital market development, exchange rate has a weak positive effect on capital market development; and while interest rate and inflation rate has a strong negative relationship with capital market development in Sub-Sahara Africa countries. The study recommend among others that, governments and regulators should review current policy on foreign remittances with a view to repositioning it so that it will be able to attract more inflow of remittances and thereby impacting positively on the overall development Sub Sahara Africa capital markets. For instance, they should deliberately reduce the current high cost often associated with remittances inflow to the countries, and by so doing large portion of remittances
received into these countries can then be utilized for innovative financial products to constantly deepen and broaden the Sub Sahara Africa capital markets

This study investigates the impact of financial market frictions on stock market performance in South Africa over the period 1990 to 2024. Using annual time series data sourced from the South African Reserve Bank, Statistics South Africa, the Johannesburg Stock Exchange, and the World Bank, the study employs the Autoregressive Distributed Lag (ARDL) model to examine both short-run and long-run relationships between market capitalisation and key financial frictions: transaction costs, liquidity constraints, information asymmetry, and regulatory quality. The findings reveal that transaction costs have a statistically significant and positive effect on stock market performance in the short run, suggesting investor adjustment mechanisms, but no significant long-term effect. Li7quidity constraints negatively affect market performance in the short term but become insignificant over time, indicating temporary disruptions. Information asymmetry is found to significantly reduce market capitalisation in both timeframes, highlighting the importance of transparency and disclosure. Regulatory quality, however, shows no statistically significant impact, pointing to potential inefficiencies or limitations in the existing regulatory framework. The study concludes that financial frictions, particularly information asymmetry and liquidity constraints, remain critical barriers to optimal stock market performance in South Africa. It is recommended that policymakers streamline transaction cost structures, enhance market liquidity, strengthen disclosure and governance frameworks, and improve regulatory coherence to foster a more efficient and resilient capital market.

This study investigates the effect of interest rate fluctuations on the performance of deposit money banks in Nigeria over the period 1981 to 2023. Specifically, the study examines the impact of lending interest rate (LIR), deposit interest rate (DIR), and interest rate volatility (IRV) on bank performance, measured by aggregate return on assets (ROA). Time-series data sourced from relevant financial and institutional databases were analysed using the Robust Least Squares (RLS) estimation technique, which accounts for heteroskedasticity and specification errors. The findings reveal that lending interest rate has a statistically significant positive effect on bank performance, while interest rate volatility exerts a significant negative influence. In contrast, deposit interest rate does not significantly affect performance. Based on these findings, the study recommends the implementation of flexible but well-structured lending rate policies to support bank profitability, dynamic deposit pricing strategies to improve funding stability, and consistent monetary policy frameworks to minimise interest rate volatility and promote financial system resilience.

This study examined the impact of capital market fundamentals measured by (MCAP, ASI, TVT, and LE) on Nigeria's economic Growth, measured with Real Gross Domestic Product (RGDP). The study adopted time series data, specifically employing unit root
testing, ARDL bounds cointegration test, and Error Correction Model (ECM). The findings show that Listed Equities (LE) exert a statistically significant positive impact on Nigeria’s economic growth in the short run. In the long run, all the independent variables MCAP, This study examined the impact of capital market fundamentals measured by (MCAP, ASI, TVT, and LE) on Nigeria's economic Growth, measured with Real Gross Domestic Product (RGDP). The study adopted time series data, specifically employing unit root testing, ARDL bounds cointegration test, and Error Correction Model (ECM). The findings show that Listed Equities (LE) exert a statistically significant positive impact on Nigeria’s economic growth in the short run. In the long run, all the independent variables MCAP, ASI, TVT, and LE collectively exert a statistically significant impact on Nigeria’s economic growth, indicating the cumulative importance of the capital market over extended periods. Market Capitalization (MCAP) does not
have a statistically significant short-run impact on Nigeria’s economic growth. All Share Index (ASI) does not have a statistically significant short-run impact on Nigeria’s economic growth. Total Value of Transactions (TVT) does not have a statistically significant short-run impact on Nigeria’s economic growth. In line with findings and conclusions, the study recommends, among others, that the Nigerian Exchange Group Should Strengthen the performance of Listed Equities: The Nigerian Exchange and regulatory bodies should prioritize policies that encourage the listing of high-performing companies, enforce corporate governance standards, and attract both domestic and foreign investors. These measures will help sustain the short-run economic benefits of
equity trading. Also, the Nigerian Exchange Group Should Promote long-runcapital market development: The government should implement reforms aimed at deepening the capital market through enhanced infrastructure, transparent regulatory frameworks, and policies that reduce systemic risk and enhance investor confidence.

TVT, and LE) on Nigeria's economic Growth, measured with Real Gross Domestic Product (RGDP). The study adopted time series data, specifically employing unit root testing, ARDL bounds cointegration test, and Error Correction Model (ECM). The findings show that Listed Equities (LE) exert a statistically significant positive impact on Nigeria’s economic growth in the short run. In the long run, all the independent variables MCAP, This study examined the impact of capital market fundamentals measured by (MCAP, ASI, TVT, and LE) on Nigeria's economic Growth, measured with Real Gross Domestic Product (RGDP). The study adopted time series data, specifically employing unit root testing, ARDL bounds cointegration test, and Error Correction Model (ECM). The findings show that Listed Equities (LE) exert a statistically significant positive impact on Nigeria’s economic growth in the short run. In the long run, all the independent variables MCAP, ASI, TVT, and LE collectively exert a statistically significant impact on Nigeria’s economic growth, indicating the cumulative importance of the capital market over extended periods. Market Capitalization (MCAP) does not have a statistically significant short-run impact on Nigeria’s economic growth. All Share Index (ASI) does not have a statistically significant short-run impact on Nigeria’s economic growth. Total Value of Transactions (TVT) does not have a statistically significant short-run impact on Nigeria’s economic growth. In line with findings and conclusion, the study recommends among others that the Nigerian Exchange Group Should Strengthen the performance of Listed Equities: The Nigerian Exchange and regulatory bodies should prioritize policies that encourage the listing of high-performing, enforce corporate governance standards, and attract both domestic and foreign investors. These measures will help sustain the short-run economic benefits of equity trading. Also, The Nigerian Exchange Group Should Promote long-run capital market development: The government should implement reforms aimed at deepening the capital market through enhanced infrastructure, transparent regulatory frameworks, and policies that reduce systemic risk and enhance investor confidence.

This study explores the relationship between foreign capital outflows and economicgrowthin Nigeria, with a particular focus on how factors such as Foreign Direct Investment (FDI),Foreign Portfolio Investment (FPI), interest rates, inflation rates, foreign remittances, andother forms of development assistance contribute to or are impacted by capital outflows. Theresearch investigates the interactions between these factors and their effects on keyaspectsofeconomic performance, including investment levels, employment rates, andindustrialproductivity. By analyzing historical data, the study reveals that foreign capital outflowsdriven by factors such as fluctuating interest rates, inflation, and weak policyframeworksnegatively affect Nigeria's long-term economic growth. Additionally, the role of foreignremittances and development assistance is examined, suggesting that while theyoffersomeeconomic relief, they are insufficient to counterbalance the broader challenges posedbycapital flight. Based on these findings, the study provides policy recommendations aimedatcurbing capital outflows, improving the investment climate, and leveraging FDI, FPI, andremittances to foster more stable and sustainable economic growth in Nigeria.

This study examines the impact of alternative financial channels on the financial performance of Nigerian banks, with a focus on mobile banking, AutomatedTellerMachine (ATM) services, Point of Sale (POS) services, and internet banking. ReturnonAssets (ROA) was employed as the primary measure of bank financial performance. Datawere collected from a sample of 70 deposit money banks and analyzed using descriptivestatistics, correlation analysis, diagnostic tests, and regression analysis. The descriptiveanalysis revealed significant variations in ROA and the adoption of alternative bankingchannels across banks. Correlation and regression results indicated that mobile bankinghas a significant negative ef ect on bank performance, while ATM, POS, andinternet banking services did not exhibit a statistically significant impact on ROA. Conversely, bank size and market share were found to positively and significantly influence financial performance, highlighting the importance of scale and competitive positioning. Thestudyconcludes that although technology-driven financial channels enhance service deliveryand market accessibility, their direct contribution to profitability is contingent oncost management and strategic implementation. The study recommends that banks optimizemobile banking operations, strategically deploy ATM and POS infrastructure, leveragebank size for ef iciency gains, and adopt measures to expand market share to enhanceprofitability. The findings contribute to the understanding of how digital bankinginnovations af ect financial performance in emerging markets such as Nigeria.a

This empirical study investigated the impact of non-bank financial institutions on economic development in Nigeria from 2003 to 2022. Specifically, the research aimed to determine the impact of Primary Mortgage Institutions Total Assets and Economic Development in Nigeria; the impact of Finance Companies Total Assets and Economic Development in Nigeria, and the impact of inflation rate on GDP per capita of Nigerians. Secondary data on gross domestic product (GDP), Primary Mortgage Institutions Total Assets (PMITA), Finance Companies Total Assets (FCTA) and Insurance Companies Total Assets (ICTA) were sourced from CBN Statistical Bulletins and statistical Directory of the National Insurance Commission from the period of 2003 to 2022. The methodology adopted was Auto Regressive Distributed Lag (ARDL) model. The findings reveal that there is a significant relationship between Primary Mortgage Institutions Total Assets and economic development in Nigeria; also, that there is a significant relationship between Finance Companies Total Assets and economic development. And finally, a significant relationship between Insurance Companies Total Assets and economic development in Nigeria. The study recommended that; the government should establish a conducive environment, potentially through tax holidays and concessions, to foster the swift growth of the Non-Bank Financial industry; there should be restructuring and consolidations implemented in the insurance industry; and finally, Nigerian Primary Mortgage Institutions (PMIs) should assume a more robust role to augment housing delivery.

The study empirically examined the impact of financial technology on performance of deposit money banks in Nigeria over the period 2009Q1 to 2024Q4. The specific objectives of the study were to find out whether automated teller machine (ATM), point of sales terminal (POS), internet banking (INTB) and mobile banking (MOB) have significant relationship with deposit money banks performance. The fully modified least squares method was used for the analysis of data, and the results obtained revealed that automated teller machine (ATM) had significant negative relationship with deposit money banks performance;
point of sales terminal (POS) had a weak negative relationship with DMBP; internet banking (INTB) had a significant positive impact on performance, and while mobile banking (MOB) has a weak positive relationship with deposit money banks performance in Nigeria. The study conclude that in the determination of deposit money banks performance in Nigeria, ATM, POS and
INTB are relevant financial technology factors to be considered because of their critical role in ensuring high level of performance of deposit money banks in Nigeria. The study recommends among others that, management should continue to ensure that more ATM stands or points where customers can easily withdraw money, especially those who in-hard-to reach areas should be provided. Regular and routine servicing and monitoring of these ATM machines must be carried out. These will go a long way to enhance overall banks’ performance in the country.