Papers by Gbenga F Babarinde
DOAJ (DOAJ: Directory of Open Access Journals), Apr 1, 2021
The capital market is an engine room of economic growth but the extent to which financial deepeni... more The capital market is an engine room of economic growth but the extent to which financial deepening influences this institution (capital market) that spur economic advancement of the country is still blurred and subject to debate among researchers. Therefore, this study investigates the causal relationship and impact of three financial deepening indicators on stock market returns and liquidity in Nigeria for the period 1985-2018. The study adopts correlational research design and obtains secondary annual time series data from the Central Bank of Nigeria statistical bulletin. The two-stage least squares regression and pairwise Granger causality test are methods of data analysis used. Findings reveal that financial deepening indicators-the ratio of money supply to gross domestic product, and market capitalization as a ratio of Gross Domestic Product (market capitalization ratio) have positive significant effect on stock market liquidity while ratio of credit to private sector to Gross Domestic Product, though positive but is not significantly related with market liquidity in Nigeria. Empirical findings also reveal that, though, the three financial deepening indicators are positively signed with stock market returns, only market capitalization ratio is found to exert significant effect on the stock market returns in Nigeria. Moreover, stock market liquidity is found to granger-cause financial deepening while a bi-directional causality exists between stock market returns and stock market deepening. Using multivariate modelling approach, this study contributes to financial deepening-stock market nexus literature by emphasizing the positive impact of three different financial deepening indicators on stock market performance in terms of returns and liquidity. This study concludes that financial deepening is a catalyst to capital market performance in Nigeria and therefore recommends that Government of Nigeria should further deepen the financial sector and its synergistic effect on capital market.
Journal of Management, Economics, and Industrial Organization, 2018
The paper investigates the impact of exchange rate volatility pass-through on price inflation in ... more The paper investigates the impact of exchange rate volatility pass-through on price inflation in Nigeria. Annualised timeseries data ranging from 1981 to 2015 was used and due to adjustment and generation of data for other variables from the sourced data, the paper used 30 years annualised data for its estimation. Vector Error Correction Model (VECM) was used to estimate the relationship that exists between the stated key variables. VECM estimation shows that all the variables specified in the model are relevant in Granger causing inflation in the long-run. ECM at long-run indicates a correction of deviation in one period and this is statistically significant at the 1 per cent significance level. We found no short-run relationship between inflation and exchange rate volatility, likewise with government expenditure, import, foreign direct investment and trade openness. However, money supply exhibited a positive relationship with inflation in the short-run. Variance decomposition makes it evident that other salient variables/factor included in the model contribute to change in inflation more than exchange rate volatility. We recommend that federal government agencies in Nigeria especially the Central Bank of Nigeria (CBN)
Journal of Public Administration, Finance and Law
Fiscal stress is the difference between internally generated revenue and the total expenditure. W... more Fiscal stress is the difference between internally generated revenue and the total expenditure. Whether internally generated revenue, and capital expenditure of government explain the phenomenon of fiscal stress still remains a puzzle particularly in the Nigerian public sector. This study investigates the causal link between internally generated revenue, capital expenditure and fiscal stress in the Nigerian local government between 1993 and 2020. The Toda and Yamamoto Granger non-causality test was applied to the annual time series obtained from Central Bank of Nigeria's statistical bulletin and the results indicate that capital expenditure has significant effect on fiscal stress in the Nigerian local government, with a unidirectional causality running from capital expenditure to fiscal stress. However, there is no causal relationship between internally generated revenue and fiscal stress in the Nigerian local government in the study period. It is therefore concluded that capital expenditure is a determinant of fiscal stress in the Nigerian local government. There is therefore the need for the Nigerian local governments to properly harness its capital expenditure and resources towards boosting their revenue-generating capacity. In managing fiscal stress, particular attention should be paid to the capital expenditure incurred by the local government in Nigeria.
Copernican Journal of Finance & Accounting
The objective of this study was to examine the implications of financial inclusion on capital mar... more The objective of this study was to examine the implications of financial inclusion on capital market liquidity in Nigeria. Therefore, we applied Vector Autoregression (VAR) technique to the analysis of the quarterly time series data obtained from Central Bank of Nigeria’s statistical bulletin and World Development Indicators for the period, 2008Q1 to 2018Q4. Findings of this study reveal that deposit penetration, bank penetration and credit penetration have positive but non-significant impact on stock market turnover ratio in Nigeria. Furthermore, unlike deposit penetration which exerts negative and non-significant influence on the value of shares traded ratio; bank penetration and credit penetration have positive but non-significant impact on the value of shares traded ratio in Nigeria. The study posits that financial inclusion exerts no significant influence/implications on stock market liquidity in Nigeria with a very negligible variation in the latter (stock market liquidity) ex...
International journal of blockchains and cryptocurrencies, 2021
Indonesian Journal of Business and Economics, Jun 26, 2022
Mission, values, vision and objectives are considered essential in strategic planning and managem... more Mission, values, vision and objectives are considered essential in strategic planning and management activities of any organization, in that they function together to determine its strategic direction. The objective of this study is to identify, classify and analyse core value statements of financial institutions quoted on the Nigerian Stock Exchange. Based on simple random sampling and in line with the Godden (2004)’s sample size formula, a sample of 38 was selected out of a population of 52 financial institutions. The selected financial institutions have 209 core value statements, which were classified into seven value dimensions: commitment to customers, commitment to stakeholders, commitment to employees, commitment to diversity, commitment to integrity, entrepreneurship, and corporate social responsibility. Using both content and descriptive analyses, the study found that commitment to integrity (33.97%) and commitment to customers (23.92%) are two most popular out of the seven value dimensions. However, commitment to employees constitutes as low as 1.44% of the value dimensions. It is therefore recommended that financial institutions in Nigeria should increase their commitment to employees and practically institutionalize and integrate their core values in the heart of the employees rather than making it a mere statement in black and white.
Noble International Journal of Economics and Financial Research, 2022
Education is an eye-opener and as such expenditures on education either by government or private ... more Education is an eye-opener and as such expenditures on education either by government or private individuals are expected to expose people to new frontiers of knowledge and ability. In a digital era that we are, digital financial literacy is part and parcel of the package called education but the extent to which government expenditures on education have affected (improved or discouraged) the usage of digital financial services is a burning issue of concern to researchers, policy makers, educationists and the public at large. In this study, an attempt was made to examine the impact of government educational expenditure on the usage of digital financial services in Nigeria between 2009Q1 and 2019Q4. Using Vector Autoregression (VAR) technique and correlation test, this study establishes the existence of a positive and strong correlation between government educational expenditure and digital financial services in Nigeria but the impact of the former on the latter, though positive but was statistically insignificant in the period of the study. It is concluded that government educational expenditure in Nigeria has not made significant impact in promoting the usage of digital financial services in the country despite the positive association between the two. It is therefore recommended that Nigerian Government should see to the creation of a special educational fund for digital financial literacy. Digital financial literacy should also form part of the compulsory courses/subjects in all schools, colleges and universities just like the way entrepreneurship education is in Nigeria.
Türk turizm araştırmaları dergisi, Nov 28, 2022
It is expected that local government as the closest tier of government to the people should promo... more It is expected that local government as the closest tier of government to the people should promote grassroots development while at the same time contribute to national economic growth and development. The extent to which this is realized particularly in a developing country like Nigeria has not been given the empirical attention it deserves in past studies. Therefore, in this study, we examined the effect of local government finances (comprising total revenue, capital and recurrent expenditure) on economic growth in Nigeria for the period, 1993 to 2021. Dynamic Least Squares, Fully Modified Least Squares, Canonical Cointegrating Regression, and Granger causality techniques were applied to the annual time series data sourced from Central Bank of Nigeria's statistical bulletin. Empirical findings of this study confirm the existence of a long-run relationship between local government finances and economic growth in Nigeria. Furthermore, local governments' recurrent and capital expenditures were found to have positive but non-significant effect on economic growth unlike local governments' total revenue which has negative and non-significant effect on economic growth of Nigeria. This study found no causal relationship between local government finances and economic growth. However, there is a unidirectional causality running from revenue to recurrent expenditure at the local government level. Likewise, capital expenditure has a unidirectional causality with recurrent expenditure. It can therefore be concluded that local government finances have no significant effect on economic growth of Nigeria in the study period. This study recommends that local government finances should be reengineered towards growth-inducing projects, programmes and investments.
Proceedings of the 3rd Annual International Academic Conference of the Faculty of Management Science, Rivers State University, 2022
The oil and gas sector remains the mainstay of the Nigeria's economy considering its contribution... more The oil and gas sector remains the mainstay of the Nigeria's economy considering its contributions to the country's
economic growth. This notwithstanding, the role of oil revenue in the financial market, particularly in the money
market has not been empirically clarified by researchers most especially in an oil producing developing country such
as Nigeria. Thus, this study, using Vector Autoregression (VAR) approach, examined the role of oil revenue in money
market in Nigeria for the period 1981 to 2020. Empirical finding of this study is that oil revenue exerts positive
significant impact on money market in Nigeria. However, the impact of money market on oil revenue in Nigeria is
negative and statistically non-significant. Furthermore, the path of causality inferred from the VAR analysis is that
of a unidirectional running from oil revenue to money market in the period of this study. It can be concluded that
judicious use of oil revenue is a strong promoter of the growth of the Nigerian money market. There is therefore the
need for Nigerian government to earmark certain proportion of the country's oil revenue for investment in the money
market and for the development of financial infrastructure targeted at money market development.
This study tests the applicability of the law of demand in the Nigerian capital market by analyzi... more This study tests the applicability of the law of demand in the Nigerian capital market by analyzing annual time series data between 1985 and 2020. We specifically evaluated the nexus between price and quantity (unit) of securities demanded in the Nigerian stock market by applying Toda-Yamamoto Granger causality technique and Vector Autoregression (VAR) model. The study is based on ex-post facto research design. The annual time series data used in the study were obtained from Central Bank of Nigeria (2020)'s statistical bulletin. From the VAR analysis, we found that stock price exerts positive and significant effect on the quantity of securities traded in the Nigerian capital market. However, quantity of securities demanded is negatively signed but not a significant predictor of prices of securities demanded in the Nigerian capital market. Also found in this study is a unidirectional causality flow from price to quantity demanded in the Nigerian Stock Exchange. It can therefore be asserted that there is a short-run unidirectional causality flowing from price to quantity of securities traded in the Nigerian capital market. Going by the positive coefficient of price (26.91891), our finding is not in tandem with the law of demand which states that there is an inverse relationship between price and quantity demanded. Rather than inverse relationship, this study provides evidence of a direct (positive) association between price and quantity demanded in the Nigerian capital market. In other words, the higher the price, the more the quantity of securities demanded in the Nigerian capital market, suggesting a situation of abnormal demand.
The International Journal of Accounting and Business Society Vol. 30, No. 2 , 2022
Purpose: Past studies have focused on psychological and
macroeconomic factors as determinants of... more Purpose: Past studies have focused on psychological and
macroeconomic factors as determinants of investor sentiment, but
the outbreak of the 2019 novel coronavirus disease (COVID-19)
pandemic has brought the need to determine whether the pandemic
matter or not in shaping investors' sentiment. Hence, this research
aims to examine the role of COVID-19 in shaping investors'
sentiment in the Nigerian capital market.
Methodology: In determining whether COVID-19 matters or not in
shaping investor's sentiment in the Nigerian capital market, this
study applied the Vector Error Correction Model (VECM) and Pearson
correlation techniques to the analysis of the weekly time series data
on covid-19 confirmed (positive), discharged and fatal cases and
their relationships as well as impacts on the stock (capital) market
investors' sentiment in Nigeria for the period 2nd March 2020 to 25th
October 2020.
Findings: This study confirms a weak positive relationship between
COVID-19 and investors' sentiment in the Nigerian stock market.
Furthermore, there is evidence that the discharged and fatal cases
of COVID-19 have long-run significant positive impacts on investors'
sentiment in Nigeria, unlike the positive case, which has a
significant negative impact. In the short-run, however, COVID-19 positive cases have positive while discharged and fatal cases have
negative non-significant effects on stock market investors' sentiment
in Nigeria.
Practical Implications: It is therefore concluded that COVID-19
cases are significant determinants of investors' sentiment in the
Nigerian stock market, such that the effects of the pandemic are
significant in shaping stock market investors' sentiment in the
country. It is high time the regulatory authorities and investment
community, particularly investors considered the long-run
implications of the current COVID-19 pandemic on their behavior
and decisions.
Originality/Value: This is one of the very few studies in Nigeria
that discount the influence of health pandemics such as COVID-19
on the behavior of investors in the stock market concerning
sentiments.
Journal of Business School, 2022
It is expected that local government as the closest tier of government to the people
should prom... more It is expected that local government as the closest tier of government to the people
should promote grassroots development while at the same time contribute to national
economic growth and development. The extent to which this is realized particularly in
a developing country like Nigeria has not been given the empirical attention it deserves
in past studies. Therefore, in this study, we examined the effect of local government
finances (comprising total revenue, capital and recurrent expenditure) on economic
growth in Nigeria for the period, 1993 to 2021. Dynamic Least Squares, Fully Modified
Least Squares, Canonical Cointegrating Regression, and Granger causality techniques
were applied to the annual time series data sourced from Central Bank of Nigeria’s
statistical bulletin. Empirical findings of this study confirm the existence of a long-run
relationship between local government finances and economic growth in Nigeria.
Furthermore, local governments’ recurrent and capital expenditures were found to have
positive but non-significant effect on economic growth unlike local governments’ total
revenue which has negative and non-significant effect on economic growth of Nigeria.
This study found no causal relationship between local government finances and
economic growth. However, there is a unidirectional causality running from revenue to
recurrent expenditure at the local government level. Likewise, capital expenditure has a
unidirectional causality with recurrent expenditure. It can therefore be concluded that
local government finances have no significant effect on economic growth of Nigeria in
the study period. This study recommends that local government finances should be re-
engineered towards growth-inducing projects, programmes and investments.
Keywords: Local government finances, capital expenditure, recurrent expenditure,
government revenue, economic growth.
IUT Journal of Advanced Research and Development, 2022
Capital market as a financial market for long term loanable funds for financing business, trade a... more Capital market as a financial market for long term loanable funds for financing business, trade and
investment, is expected to significantly influence trade not only at the domestic level but also at
international level. However, despite the involvement of Nigerians in international trade, there is a
perceived gap between capital market function of financial intermediation of loanable funds for use in
international trade and the growth rates of import, export and total external trade in Nigeria. Therefore,
in this currentstudy, we examined the Nigerian capital market performance and its implications on
external trade in Nigeria from 1982 to 2019using annual time series data obtained from Central Bank of
Nigeria’s statistical bulletin. The data were analysed using Autoregressive Distributed Lag (ARDL) and
Granger causality techniques. Three ARDL models were specified and estimated whereby three capital
market performance indicators, namely, stock market capitalization ratio (ratio of market capitalization
to gross domestic product);total value of shares traded ratio (total value of shares traded as a ratio of
gross domestic product); andstock market turnover ratio (total value of shares traded as a ratio of stock
market capitalisation); in company of exchange rate and gross domestic product as control variables;
were regressed against each of the growth rates of total export, total import and total external trade in
Nigeria. The study found a long-run relationship between capital market performance and external trade
in Nigeria. However, the Nigerian capital market performancedoes not have significant long-run effect on
total import, total export and total external trade in Nigeria. The Granger causality tests reveal that stock
market capitalization ratio has a unidirectional causality with total export growth rate in Nigeria, but
neither stock market turnover ratio nor the value of shares traded ratio has causal relationship with total
export growth rate in Nigeria. Moreover, this study established no evidence of causality between each of the three indicators of capital market performance with total export, total import and total external trade
in Nigeria. This further reveals lack of current capacity of the Nigerian capital market to spur external
trade growth in the country and hence the need for Nigerian government in partnership with the private
sector to further develop the Nigerian capital market.
This study empirically analyzed the effects of international trade on the economic growth of Nige... more This study empirically analyzed the effects of international trade on the economic growth of Nigeria from1981-2020 using the under Fully Modified Least Squares (FMOLS), Dynamic Least Squares (DOLS) and Canonical Cointegrating Regression (CCR) technique. Independent variables used such as, export trade (EXP), import trade (IMP), foreign exchange rate (EXH) and trade openness (TOP) were regressed on Real Gross Domestic Product (GDP) of Nigeria based on secondary data fetched from Central Bank of Nigeria's Statistical Bulletin 2020. The econometric diagnostics for existence of unit roots in the series was conducted using the Augmented Dickey-Fuller technique and the tests indicate that the variables were integrated in order of 1(1). The Johansen co-integration test was conducted in determining the cointegration among the variables in the various equations which affirmed the presence of long-run existence. The study revealed that export trade, import trade and exchange rates in the country had positive and insignificant relationship with economic growth, while trade openness has negative and significant effect on economic growth in Nigeria. The study recommends that the federal government should design the programmes and policies to promote local production and encourage importation of convinced necessary products for trade to have the anticipated impact on the growth of Nigeria's economy.
This paper examined the relationship between money and capital markets in Nigeria from 1981 to 20... more This paper examined the relationship between money and capital markets in Nigeria from 1981 to 2019. Thus, correlation and pairwise Granger causality analytical techniques were applied to the annual times series data obtained from the Central Bank of Nigeria’s statistical bulletin. Empirical findings indicate the existence of a strong positive correlation between money and capital markets in Nigeria. The study also established evidence of a long-run relationship between money and capital markets in Nigeria. Furthermore, there is a bidirectional causality between money and capital markets in Nigeria in the study period. The study concludes that there is a complementary (positive) causal relationship between money market and capital market in Nigeria. Therefore, the need to encourage the formulation and implementation of policies geared towards greater synergy between the two markets in Nigeria. Keywords— Capital market, Correlation, Granger causality, Money market, Stock market.
INTERNATIONAL "ARTEMİS" CONGRESS ON LIFE, SOCIAL, HEALTH, AND SPORTS SCIENCES SEPTEMBER 10-12, 2022 ONLINE & IN-PERSON PARTICIPATION IZMIR, TURKEY
International trade impacts a country in different areas but most previous studies focused on eco... more International trade impacts a country in different areas but most previous studies focused on economic
growth impact. A sectorial impact analysis of international trade is required particularly in the educational
sector which is considered as the bedrock of national growth and development. Therefore, this study
explores the relationship between international trade and public educational investment in Nigeria for
the period, 1981 to 2021 by applying Ordinary Least Squares (OLS) regression and pairwise Granger
causality test to the annual time series data obtained from Central Bank of Nigeria’s statistical bulletin. In
this study, government expenditure on education represents public educational investment while values
of export trade and import trade are proxies for international trade. Empirically established in this study
is the existence of a long-run relationship between international trade and public educational investment
in Nigeria. Furthermore, import and export trades positively and significantly affect public educational
investment with both export and import trades having unidirectional causal relationship with public
educational investment in Nigeria. It can therefore be concluded that international trade is a catalyst to
public educational investment in Nigeria. It is recommended that Government of Nigeria should compel
international business outfits in Nigeria to earmark certain proportion of their profits for special investment
in the educational sector in order to ultimately promote Nigeria’s human capital development.
Keywords: Export, Foreign Trade, Human Capital Development, International Trade, Import,
Nigeria, Public Educational Investment.
International Journal of Blockchains and Cryptocurrencies
2nd International Azerbaijan Congress on Life, Social, Health, and Art Sciences, 2022
Rural populace is usually disadvantaged in terms of infrastructural facilities including the loca... more Rural populace is usually disadvantaged in terms of infrastructural facilities including the location of
rural financial institutions and this do have implications on the standard of living of people in the locality.
The extent to which the operations of financial institutions impact living standard in the rural areas has
not been empirically clarified particularly in developing countries. Thus, in this study, loans and deposits
and rural financial institutions were investigated in terms of their effects on standard of living in Nigeria
for the period, 1982-2020, with reliance on annual secondary data obtained from World Bank’s world
development indicators and Central Bank of Nigeria’s statistical bulletin. Gross domestic product per
capita was regressed against deposits and loans of rural branches of commercial banks in Nigeria based
on Dynamic Ordinary Least Squares technique after some preliminary tests like Augmented Dickey-
Fuller unit root and Johansen cointegration tests. This study found that rural financial institutions’ loans
and deposits have long-run relationship with standard of living in Nigeria. Furthermore, the effect of
rural financial institutions’ deposits on living standard in Nigeria, was found to be negative and non-
significant. However, loans of rural commercial banks have positive and significant effect on standard
of living in Nigeria. The study concludes that credit channel is a means by which rural commercial
banks could promote standard of living in Nigeria. It is therefore recommended that Government of
Nigeria, should promote more rural banking as well as the empowerment of rural branches of financial
institutions in Nigeria. To this ends, special funds should be created and made available for disbursement
to rural populace through the rural branches of financial institutions in Nigeria.
Mission, values, vision and objectives are considered essential in strategic planning and
manage... more Mission, values, vision and objectives are considered essential in strategic planning and
management activities of any organization, in that they function together to determine its
strategic direction. The objective of this study is to identify, classify and analyse core value
statements of financial institutions quoted on the Nigerian Stock Exchange. Based on simple
random sampling and in line with the Godden (2004)’s sample size formula, a sample of 38 was
selected out of a population of 52 financial institutions. The selected financial institutions
have 209 core value statements, which were classified into seven value dimensions:
commitment to customers, commitment to stakeholders, commitment to employees,
commitment to diversity, commitment to integrity, entrepreneurship, and corporate social
responsibility. Using both content and descriptive analyses, the study found that commitment
to integrity (33.97%) and commitment to customers (23.92%) are two most popular out of the
seven value dimensions. However, commitment to employees constitutes as low as 1.44% of
the value dimensions. It is therefore recommended that financial institutions in Nigeria should
increase their commitment to employees and practically institutionalize and integrate their
core values in the heart of the employees rather than making it a mere statement in black and
white.
Indonesian Journal Of Business And Economics
This study examines the impact and nexus between cases of coronavirus disease (COVID-19) and the ... more This study examines the impact and nexus between cases of coronavirus disease (COVID-19) and the returns of seven classes of collective investment schemes (CIS) in Nigeria (bond funds, equity-based funds, fixed income funds, ethical funds, money market funds, mixed funds and real estate funds) within the first 52 weeks of the outbreak of the pandemic in Nigeria, 27th February, 2020 to 26th February, 2021 using Auto-regressive Distributed Lag and Pearson correlation techniques. Empirical findings suggest that COVID-19 cases and returns of collective investment schemes in Nigeria are cointegrated while COVID-19 cases are negatively correlated with the returns from bonds funds, equity based funds and money market funds as against the positive correlation between COVID-19 cases and returns from ethical, fixed income and real estate funds. Furthermore, COVID-19 confirmed cases are negatively related with returns from mixed fund as against the fund’s returns’ positive correlation with COV...
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Papers by Gbenga F Babarinde
economic growth. This notwithstanding, the role of oil revenue in the financial market, particularly in the money
market has not been empirically clarified by researchers most especially in an oil producing developing country such
as Nigeria. Thus, this study, using Vector Autoregression (VAR) approach, examined the role of oil revenue in money
market in Nigeria for the period 1981 to 2020. Empirical finding of this study is that oil revenue exerts positive
significant impact on money market in Nigeria. However, the impact of money market on oil revenue in Nigeria is
negative and statistically non-significant. Furthermore, the path of causality inferred from the VAR analysis is that
of a unidirectional running from oil revenue to money market in the period of this study. It can be concluded that
judicious use of oil revenue is a strong promoter of the growth of the Nigerian money market. There is therefore the
need for Nigerian government to earmark certain proportion of the country's oil revenue for investment in the money
market and for the development of financial infrastructure targeted at money market development.
macroeconomic factors as determinants of investor sentiment, but
the outbreak of the 2019 novel coronavirus disease (COVID-19)
pandemic has brought the need to determine whether the pandemic
matter or not in shaping investors' sentiment. Hence, this research
aims to examine the role of COVID-19 in shaping investors'
sentiment in the Nigerian capital market.
Methodology: In determining whether COVID-19 matters or not in
shaping investor's sentiment in the Nigerian capital market, this
study applied the Vector Error Correction Model (VECM) and Pearson
correlation techniques to the analysis of the weekly time series data
on covid-19 confirmed (positive), discharged and fatal cases and
their relationships as well as impacts on the stock (capital) market
investors' sentiment in Nigeria for the period 2nd March 2020 to 25th
October 2020.
Findings: This study confirms a weak positive relationship between
COVID-19 and investors' sentiment in the Nigerian stock market.
Furthermore, there is evidence that the discharged and fatal cases
of COVID-19 have long-run significant positive impacts on investors'
sentiment in Nigeria, unlike the positive case, which has a
significant negative impact. In the short-run, however, COVID-19 positive cases have positive while discharged and fatal cases have
negative non-significant effects on stock market investors' sentiment
in Nigeria.
Practical Implications: It is therefore concluded that COVID-19
cases are significant determinants of investors' sentiment in the
Nigerian stock market, such that the effects of the pandemic are
significant in shaping stock market investors' sentiment in the
country. It is high time the regulatory authorities and investment
community, particularly investors considered the long-run
implications of the current COVID-19 pandemic on their behavior
and decisions.
Originality/Value: This is one of the very few studies in Nigeria
that discount the influence of health pandemics such as COVID-19
on the behavior of investors in the stock market concerning
sentiments.
should promote grassroots development while at the same time contribute to national
economic growth and development. The extent to which this is realized particularly in
a developing country like Nigeria has not been given the empirical attention it deserves
in past studies. Therefore, in this study, we examined the effect of local government
finances (comprising total revenue, capital and recurrent expenditure) on economic
growth in Nigeria for the period, 1993 to 2021. Dynamic Least Squares, Fully Modified
Least Squares, Canonical Cointegrating Regression, and Granger causality techniques
were applied to the annual time series data sourced from Central Bank of Nigeria’s
statistical bulletin. Empirical findings of this study confirm the existence of a long-run
relationship between local government finances and economic growth in Nigeria.
Furthermore, local governments’ recurrent and capital expenditures were found to have
positive but non-significant effect on economic growth unlike local governments’ total
revenue which has negative and non-significant effect on economic growth of Nigeria.
This study found no causal relationship between local government finances and
economic growth. However, there is a unidirectional causality running from revenue to
recurrent expenditure at the local government level. Likewise, capital expenditure has a
unidirectional causality with recurrent expenditure. It can therefore be concluded that
local government finances have no significant effect on economic growth of Nigeria in
the study period. This study recommends that local government finances should be re-
engineered towards growth-inducing projects, programmes and investments.
Keywords: Local government finances, capital expenditure, recurrent expenditure,
government revenue, economic growth.
investment, is expected to significantly influence trade not only at the domestic level but also at
international level. However, despite the involvement of Nigerians in international trade, there is a
perceived gap between capital market function of financial intermediation of loanable funds for use in
international trade and the growth rates of import, export and total external trade in Nigeria. Therefore,
in this currentstudy, we examined the Nigerian capital market performance and its implications on
external trade in Nigeria from 1982 to 2019using annual time series data obtained from Central Bank of
Nigeria’s statistical bulletin. The data were analysed using Autoregressive Distributed Lag (ARDL) and
Granger causality techniques. Three ARDL models were specified and estimated whereby three capital
market performance indicators, namely, stock market capitalization ratio (ratio of market capitalization
to gross domestic product);total value of shares traded ratio (total value of shares traded as a ratio of
gross domestic product); andstock market turnover ratio (total value of shares traded as a ratio of stock
market capitalisation); in company of exchange rate and gross domestic product as control variables;
were regressed against each of the growth rates of total export, total import and total external trade in
Nigeria. The study found a long-run relationship between capital market performance and external trade
in Nigeria. However, the Nigerian capital market performancedoes not have significant long-run effect on
total import, total export and total external trade in Nigeria. The Granger causality tests reveal that stock
market capitalization ratio has a unidirectional causality with total export growth rate in Nigeria, but
neither stock market turnover ratio nor the value of shares traded ratio has causal relationship with total
export growth rate in Nigeria. Moreover, this study established no evidence of causality between each of the three indicators of capital market performance with total export, total import and total external trade
in Nigeria. This further reveals lack of current capacity of the Nigerian capital market to spur external
trade growth in the country and hence the need for Nigerian government in partnership with the private
sector to further develop the Nigerian capital market.
growth impact. A sectorial impact analysis of international trade is required particularly in the educational
sector which is considered as the bedrock of national growth and development. Therefore, this study
explores the relationship between international trade and public educational investment in Nigeria for
the period, 1981 to 2021 by applying Ordinary Least Squares (OLS) regression and pairwise Granger
causality test to the annual time series data obtained from Central Bank of Nigeria’s statistical bulletin. In
this study, government expenditure on education represents public educational investment while values
of export trade and import trade are proxies for international trade. Empirically established in this study
is the existence of a long-run relationship between international trade and public educational investment
in Nigeria. Furthermore, import and export trades positively and significantly affect public educational
investment with both export and import trades having unidirectional causal relationship with public
educational investment in Nigeria. It can therefore be concluded that international trade is a catalyst to
public educational investment in Nigeria. It is recommended that Government of Nigeria should compel
international business outfits in Nigeria to earmark certain proportion of their profits for special investment
in the educational sector in order to ultimately promote Nigeria’s human capital development.
Keywords: Export, Foreign Trade, Human Capital Development, International Trade, Import,
Nigeria, Public Educational Investment.
rural financial institutions and this do have implications on the standard of living of people in the locality.
The extent to which the operations of financial institutions impact living standard in the rural areas has
not been empirically clarified particularly in developing countries. Thus, in this study, loans and deposits
and rural financial institutions were investigated in terms of their effects on standard of living in Nigeria
for the period, 1982-2020, with reliance on annual secondary data obtained from World Bank’s world
development indicators and Central Bank of Nigeria’s statistical bulletin. Gross domestic product per
capita was regressed against deposits and loans of rural branches of commercial banks in Nigeria based
on Dynamic Ordinary Least Squares technique after some preliminary tests like Augmented Dickey-
Fuller unit root and Johansen cointegration tests. This study found that rural financial institutions’ loans
and deposits have long-run relationship with standard of living in Nigeria. Furthermore, the effect of
rural financial institutions’ deposits on living standard in Nigeria, was found to be negative and non-
significant. However, loans of rural commercial banks have positive and significant effect on standard
of living in Nigeria. The study concludes that credit channel is a means by which rural commercial
banks could promote standard of living in Nigeria. It is therefore recommended that Government of
Nigeria, should promote more rural banking as well as the empowerment of rural branches of financial
institutions in Nigeria. To this ends, special funds should be created and made available for disbursement
to rural populace through the rural branches of financial institutions in Nigeria.
management activities of any organization, in that they function together to determine its
strategic direction. The objective of this study is to identify, classify and analyse core value
statements of financial institutions quoted on the Nigerian Stock Exchange. Based on simple
random sampling and in line with the Godden (2004)’s sample size formula, a sample of 38 was
selected out of a population of 52 financial institutions. The selected financial institutions
have 209 core value statements, which were classified into seven value dimensions:
commitment to customers, commitment to stakeholders, commitment to employees,
commitment to diversity, commitment to integrity, entrepreneurship, and corporate social
responsibility. Using both content and descriptive analyses, the study found that commitment
to integrity (33.97%) and commitment to customers (23.92%) are two most popular out of the
seven value dimensions. However, commitment to employees constitutes as low as 1.44% of
the value dimensions. It is therefore recommended that financial institutions in Nigeria should
increase their commitment to employees and practically institutionalize and integrate their
core values in the heart of the employees rather than making it a mere statement in black and
white.
economic growth. This notwithstanding, the role of oil revenue in the financial market, particularly in the money
market has not been empirically clarified by researchers most especially in an oil producing developing country such
as Nigeria. Thus, this study, using Vector Autoregression (VAR) approach, examined the role of oil revenue in money
market in Nigeria for the period 1981 to 2020. Empirical finding of this study is that oil revenue exerts positive
significant impact on money market in Nigeria. However, the impact of money market on oil revenue in Nigeria is
negative and statistically non-significant. Furthermore, the path of causality inferred from the VAR analysis is that
of a unidirectional running from oil revenue to money market in the period of this study. It can be concluded that
judicious use of oil revenue is a strong promoter of the growth of the Nigerian money market. There is therefore the
need for Nigerian government to earmark certain proportion of the country's oil revenue for investment in the money
market and for the development of financial infrastructure targeted at money market development.
macroeconomic factors as determinants of investor sentiment, but
the outbreak of the 2019 novel coronavirus disease (COVID-19)
pandemic has brought the need to determine whether the pandemic
matter or not in shaping investors' sentiment. Hence, this research
aims to examine the role of COVID-19 in shaping investors'
sentiment in the Nigerian capital market.
Methodology: In determining whether COVID-19 matters or not in
shaping investor's sentiment in the Nigerian capital market, this
study applied the Vector Error Correction Model (VECM) and Pearson
correlation techniques to the analysis of the weekly time series data
on covid-19 confirmed (positive), discharged and fatal cases and
their relationships as well as impacts on the stock (capital) market
investors' sentiment in Nigeria for the period 2nd March 2020 to 25th
October 2020.
Findings: This study confirms a weak positive relationship between
COVID-19 and investors' sentiment in the Nigerian stock market.
Furthermore, there is evidence that the discharged and fatal cases
of COVID-19 have long-run significant positive impacts on investors'
sentiment in Nigeria, unlike the positive case, which has a
significant negative impact. In the short-run, however, COVID-19 positive cases have positive while discharged and fatal cases have
negative non-significant effects on stock market investors' sentiment
in Nigeria.
Practical Implications: It is therefore concluded that COVID-19
cases are significant determinants of investors' sentiment in the
Nigerian stock market, such that the effects of the pandemic are
significant in shaping stock market investors' sentiment in the
country. It is high time the regulatory authorities and investment
community, particularly investors considered the long-run
implications of the current COVID-19 pandemic on their behavior
and decisions.
Originality/Value: This is one of the very few studies in Nigeria
that discount the influence of health pandemics such as COVID-19
on the behavior of investors in the stock market concerning
sentiments.
should promote grassroots development while at the same time contribute to national
economic growth and development. The extent to which this is realized particularly in
a developing country like Nigeria has not been given the empirical attention it deserves
in past studies. Therefore, in this study, we examined the effect of local government
finances (comprising total revenue, capital and recurrent expenditure) on economic
growth in Nigeria for the period, 1993 to 2021. Dynamic Least Squares, Fully Modified
Least Squares, Canonical Cointegrating Regression, and Granger causality techniques
were applied to the annual time series data sourced from Central Bank of Nigeria’s
statistical bulletin. Empirical findings of this study confirm the existence of a long-run
relationship between local government finances and economic growth in Nigeria.
Furthermore, local governments’ recurrent and capital expenditures were found to have
positive but non-significant effect on economic growth unlike local governments’ total
revenue which has negative and non-significant effect on economic growth of Nigeria.
This study found no causal relationship between local government finances and
economic growth. However, there is a unidirectional causality running from revenue to
recurrent expenditure at the local government level. Likewise, capital expenditure has a
unidirectional causality with recurrent expenditure. It can therefore be concluded that
local government finances have no significant effect on economic growth of Nigeria in
the study period. This study recommends that local government finances should be re-
engineered towards growth-inducing projects, programmes and investments.
Keywords: Local government finances, capital expenditure, recurrent expenditure,
government revenue, economic growth.
investment, is expected to significantly influence trade not only at the domestic level but also at
international level. However, despite the involvement of Nigerians in international trade, there is a
perceived gap between capital market function of financial intermediation of loanable funds for use in
international trade and the growth rates of import, export and total external trade in Nigeria. Therefore,
in this currentstudy, we examined the Nigerian capital market performance and its implications on
external trade in Nigeria from 1982 to 2019using annual time series data obtained from Central Bank of
Nigeria’s statistical bulletin. The data were analysed using Autoregressive Distributed Lag (ARDL) and
Granger causality techniques. Three ARDL models were specified and estimated whereby three capital
market performance indicators, namely, stock market capitalization ratio (ratio of market capitalization
to gross domestic product);total value of shares traded ratio (total value of shares traded as a ratio of
gross domestic product); andstock market turnover ratio (total value of shares traded as a ratio of stock
market capitalisation); in company of exchange rate and gross domestic product as control variables;
were regressed against each of the growth rates of total export, total import and total external trade in
Nigeria. The study found a long-run relationship between capital market performance and external trade
in Nigeria. However, the Nigerian capital market performancedoes not have significant long-run effect on
total import, total export and total external trade in Nigeria. The Granger causality tests reveal that stock
market capitalization ratio has a unidirectional causality with total export growth rate in Nigeria, but
neither stock market turnover ratio nor the value of shares traded ratio has causal relationship with total
export growth rate in Nigeria. Moreover, this study established no evidence of causality between each of the three indicators of capital market performance with total export, total import and total external trade
in Nigeria. This further reveals lack of current capacity of the Nigerian capital market to spur external
trade growth in the country and hence the need for Nigerian government in partnership with the private
sector to further develop the Nigerian capital market.
growth impact. A sectorial impact analysis of international trade is required particularly in the educational
sector which is considered as the bedrock of national growth and development. Therefore, this study
explores the relationship between international trade and public educational investment in Nigeria for
the period, 1981 to 2021 by applying Ordinary Least Squares (OLS) regression and pairwise Granger
causality test to the annual time series data obtained from Central Bank of Nigeria’s statistical bulletin. In
this study, government expenditure on education represents public educational investment while values
of export trade and import trade are proxies for international trade. Empirically established in this study
is the existence of a long-run relationship between international trade and public educational investment
in Nigeria. Furthermore, import and export trades positively and significantly affect public educational
investment with both export and import trades having unidirectional causal relationship with public
educational investment in Nigeria. It can therefore be concluded that international trade is a catalyst to
public educational investment in Nigeria. It is recommended that Government of Nigeria should compel
international business outfits in Nigeria to earmark certain proportion of their profits for special investment
in the educational sector in order to ultimately promote Nigeria’s human capital development.
Keywords: Export, Foreign Trade, Human Capital Development, International Trade, Import,
Nigeria, Public Educational Investment.
rural financial institutions and this do have implications on the standard of living of people in the locality.
The extent to which the operations of financial institutions impact living standard in the rural areas has
not been empirically clarified particularly in developing countries. Thus, in this study, loans and deposits
and rural financial institutions were investigated in terms of their effects on standard of living in Nigeria
for the period, 1982-2020, with reliance on annual secondary data obtained from World Bank’s world
development indicators and Central Bank of Nigeria’s statistical bulletin. Gross domestic product per
capita was regressed against deposits and loans of rural branches of commercial banks in Nigeria based
on Dynamic Ordinary Least Squares technique after some preliminary tests like Augmented Dickey-
Fuller unit root and Johansen cointegration tests. This study found that rural financial institutions’ loans
and deposits have long-run relationship with standard of living in Nigeria. Furthermore, the effect of
rural financial institutions’ deposits on living standard in Nigeria, was found to be negative and non-
significant. However, loans of rural commercial banks have positive and significant effect on standard
of living in Nigeria. The study concludes that credit channel is a means by which rural commercial
banks could promote standard of living in Nigeria. It is therefore recommended that Government of
Nigeria, should promote more rural banking as well as the empowerment of rural branches of financial
institutions in Nigeria. To this ends, special funds should be created and made available for disbursement
to rural populace through the rural branches of financial institutions in Nigeria.
management activities of any organization, in that they function together to determine its
strategic direction. The objective of this study is to identify, classify and analyse core value
statements of financial institutions quoted on the Nigerian Stock Exchange. Based on simple
random sampling and in line with the Godden (2004)’s sample size formula, a sample of 38 was
selected out of a population of 52 financial institutions. The selected financial institutions
have 209 core value statements, which were classified into seven value dimensions:
commitment to customers, commitment to stakeholders, commitment to employees,
commitment to diversity, commitment to integrity, entrepreneurship, and corporate social
responsibility. Using both content and descriptive analyses, the study found that commitment
to integrity (33.97%) and commitment to customers (23.92%) are two most popular out of the
seven value dimensions. However, commitment to employees constitutes as low as 1.44% of
the value dimensions. It is therefore recommended that financial institutions in Nigeria should
increase their commitment to employees and practically institutionalize and integrate their
core values in the heart of the employees rather than making it a mere statement in black and
white.
that covered one year period from 27th Feb, 2020 to 26th Jan, 2021 were sourced from the Nigeria
Centre for Disease Control, World Health Organisation and World Bank indicator websites. The E-views
statistical involved Autoregressive Distributed Lag technique. This study reveals the existence of a long
run relationship between COVID-19 events and Oil price in Nigeria. Therefore, this study concludes
that COVID-19 recoveries are a strong predictor of the concert of the oil price and positive cases and
fatalities have a non-significant relationship with the concert of the oil price in Nigeria. Hence, given
the predictable glide into COVID 19, necessary arrangements need to be taken to facilitate recovery and
provision to boost expansion of the economy from oil dependence with effort on the major contributing
sectors to moderate variability in the economy growth. Government should involve consistent and
coordinated emergency response to adverse effects of the virus and related disturbances to other
economic activities such as domestic trade and services which account for the bulk of gross domestic
product growth rate in Nigeria
money banks in Nigeria. The study aims to evaluate the impact of each of cashless policy instruments
(Point-of-Sales (POS), Automated Teller Machine (ATM), Electronic Funds Transfer (NEFT), and
webpayment (WEBPAY) on average liquidity ratio of all deposit money banks in Nigeria during 2012Q1
and 2020Q4. The time series data on cashless policy and banks liquidity were obtained from Central
Bank of Nigeria (CBN)’s statistical bulletin and Nigeria Deposit Insurance Corporation (NDIC)’s annual
reports respectively. The data were analysed using Pearson correlation test and Vector autoregression
techniques. Empirical finding from Pearson correlation test reveals that transaction values of ATM and
POS have negative significant relationship with liquidity ratio of deposit money banks in Nigeria unlike
WEBPAY and NEFT transactions which have non-significant correlation with banks liquidity in Nigeria.
Further evidence from VAR analysis is that unlike ATM transaction which has negative non-significant
impact, other cashless policy channels (NEFT, POS, and WEBPAY transactions) have positive non-
significant impact on banks’ liquidity in Nigeria. The study concludes that cashless does not have
significant impact on the liquidity of deposit money banks in Nigeria. It is therefore recommended that
intensive efforts should be made by the Nigerian government to ensure higher adoption of the various
channels of cashless policy to ensure the intended significant impact the policy is deemed to attain in
the country
using the under Fully Modified Least Squares (FMOLS), Dynamic Least Squares (DOLS) and Canonical
Cointegrating Regression (CCR) technique. Independent variables used such as, export trade (EXP), import trade
(IMP), foreign exchange rate (EXH) and trade openness (TOP) were regressed on Real Gross Domestic Product
(GDP) of Nigeria based on secondary data fetched from Central Bank of Nigeria’s Statistical Bulletin 2020. The
econometric diagnostics for existence of unit roots in the series was conducted using the Augmented Dickey-Fuller
technique and the tests indicate that the variables were integrated in order of 1(1). The Johansen co-integration test
was conducted in determining the cointegration among the variables in the various equations which affirmed the
presence of long-run existence. The study revealed that export trade, import trade and exchange rates in the country
had positive and insignificant relationship with economic growth, while trade openness has negative and significant
effect on economic growth in Nigeria. The study recommends that the federal government should design the
programmes and policies to promote local production and encourage importation of convinced necessary products
for trade to have the anticipated impact on the growth of Nigeria’s economy.