NSUK Repository :: Browsing by Author "Udenwa, Theresa A"

Browsing by Author "Udenwa, Theresa A"

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Open Access
AGRICULTURAL FINANCING AND PORTFOLIO ANALYSIS: A FOCUS ON THE ROLE OF NIGERIAN COMMERCIAL BANKS
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2007-03-25) Udenwa, Theresa A
The paper examined the major forms of agriculture financing in Nigeria. Specifically, it identified these forms as treasury bills, treasury certificates, certificates of deposits, bankers’ unit funds, commercial papers and eligible development stocks. The discussions in this paper relied on portfolio theories which were developed over the years and have helped business scientists in analyzing the financial transactions of commercial banks. A portfolio from the investment point of view as explained in this paper is a composite set of ownership rights to financial assets in which the investor wishes to invest his funds. The implication here is that portfolio as securities held by or on behalf of an investor, includes among others, the holding of bills of exchange by banks or discount houses. The portfolio management service is therefore the management by a bank or financial institution of the quoted securities of a customer. This have been exhaustively examined under the stream of the safe keeping of securities, dealing with rights issues, the collection of dividends and the preparation of variations.
Open Access
AGRICULTURAL sector value chain as pathway to poverty reduction IN NIGERIA
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2017-03-27) Udenwa, Theresa A
A value chain involves a series of actors and activities necessary to bring a product from production to the final consumer. Agricultural value chain is important in a special way because if affects the level of food security, the extern to globalization of markets and agriculture in the rural economy, thereby paving way for poverty reduction. In tracing this linkage the study noted some of the constraints/risks involved in the chain which tend to inhibit this channel of poverty reduction. These include the quality of inputs, inclement weather, pests as well as challenges of security, pricing, marketing and financing. Notwithstanding these constraints, agricultural value chain remains a veritable tool for poverty reduction especially in a developing economy like Nigeria where a significant proportion of the population is engaged in agriculture. The country should therefore invest substantially in the agricultural value chain especially at (he rurally economy level so as to benefit from the abundant potentials available for purposes of poverty reduction
Open Access
AN ANALYSIS OF FOREIGN EXCHANGE RISK: THE NIGERIAN EXPERIENCE
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2003-12-12) Udenwa, Theresa A
This paper tries to analyse the various risks to which organizations and Nations are exposed to when they are involved in foreign exchange transactions, it notes that the risks range from Transaction exposure through Transaction and Economic exposures. While the exchange market hedge, money market hedge, balance sheet and also through leads and lags. The paper further addressed this issues of foreign exchange risks as it affects the Nigerian economic system. The paper concludes by noting that one of the basic risks unique to Multinational businesses is foreign exchange risks - the risk that a change in exchange rate will prove advantageous or disadvantageous to a business form and so the need for the firms to take adequate precautions against such risk.
Open Access
BANK FAILURES/DISTRESS AND THE NIGERIAN ECONOMY
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2004-07-23) Udenwa, Theresa A
In any economic system, the financial and particularly the banking industry occupy a unique position. This uniqueness arises from the financial sector’s strategic roles in the process of development and its vulnerability to crises and collapses. Following the introduction of the Structural Adjustment Programme (SAP) in Nigeria in 1986, and the subsequent deregulation of the financial sector in 1987, there was a phenomenal increase in the number of financial institution. Also the banking sector, during this time, was inundated with adverse economic forces, the resultant effect being the emergence of distress in the banking industry, a phenomenon that has seriously affected the growth and development of the economy. This outcome is expected since the problem and failures and distress have significantly hampered the ability of these financial institutions to provide the necessary funds for such growth and development. Bank failure or distress as it were, is not peculiar to Nigeria. It occurs in other economies of the world, although the magnitude of distress and its impact varies from one country to another.
Open Access
BANK FRAUDS IN NIGERIA AN ANATOMY OF INTERNAL CONTROL
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 1998-12-14) Udenwa, Theresa A
Banking fraud is an economic cankerworm that is fast eating deep into the fabrics of the banking sector of many economies including Nigeria. The adverse effects of this phenomenon can not be overemphasized because not only does it spell disaster for the banks and their customers but also for the entire economic system. In fact this ugly trend accounts for part of the high level of distress currently witnessed in the banking sector. An analysis of bank frauds in the Nigerian banking system shows that between 1989 and 1993, the level of frauds have been on the increase in both number and quantum. There is need, therefore, to examine the nature and causes of such frauds as to be able to recommend appropriate solutions and in the process establish the role of effective internal control. This is of importance not just to the Nigerian economy but to all those economies where banking fraud is prevalent.
Open Access
CAPITAL MARKET FINANCING FOR SMEs: PATHWAY TO INCLUSIVE GROWTH IN NIGERIA
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2015-10-19) Udenwa, Theresa A; Uwaleke, Uchenna
Nigeria emerged the largest economy in Africa following the rebasing of its Cross Domestic Product (GDP) in 2013 and in the last few years has recorded impressive growth rates relative to peer developing economies. However, this growth, largely buoyed by oil revenue, is not inclusive as it has not translated to improved standard of living for a majority of the citizens. Small and Medium Enterprises (SMEs) can play a key role in achieving inclusive growth through their contributions to job creation and poverty reduction. The survival and growth of SMEs is however a function of adequate and stable access to finance. Based on a review of available literature in the broad area of alternative financing for inclusive growth, this paper identifies the challenges of existing money market financing of SMEs in Nigeria. It asserts that the capital market has tremendous potential to drive inclusive growth by providing investors with the opportunity for wealth creation through venture capitalism. If SMEs are incentivized to list on the Stock Exchange and more individuals invest in stocks, the nation's wealth will be more broadly distributed when stocks or other financial assets rise in value.
Open Access
CASH CONVERSION CYCLE AND VALUE OF LISTED AGRICULTURAL FIRMS IN NIGERIA
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2021-03-18) John, Toro Gimba; Udenwa, Theresa A; Nwala, Maureen Nneka
Cash conversion cycle is a vital component of the firm that requires proper planning and management which involves decisions about different aspects of cash investment, maintenance of certain level of inventories and managing of account receivable and payable. The study examines the effect of cash conversion cycle on firm value of listed agricultural firms in Nigeria. Payable payment period, receivable collection period and inventory turnover were used to proxy cash conversion cycle; while firm value is proxied with Tobin's Q. The study concentrated on the period from 2010 to 2019. Secondary data was used in other to collect the secondary source of data from the individual financial reports of the listed agricultural sectors. The sample adopted four (4) listed agricultural firms out the five (5) in Nigeria due to the unavailability of data. The study employed regression model to estimate the relationship between cash conversion cycle and firm value. The result shows that payable period has a significant effect on the firm value. The study recommends that the management should seek to delay longer period of account payable. Therefore, the Agricultural companies in Nigeria should try and maintain an adequate period of settling their suppliers in order to avoid negative effect on the company's value. Also, a mechanism should be put in place that will enable debtors settle their accounts on time so as to have a balanced receivable collection period. Finally, the agricultural firms should also seek knowledge on the use of stock optimization techniques so as to be able to determine right quantities of stocks to hold.
Open Access
Challenges and Prospects of Active Participation of Microfinance Equity Investors in the Governance of Microfinance Institutions (Mils)
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2015-08-11) Udenwa, Theresa A
Equity financing is of growing importance to the microfinance sector and social investors that provide equityface challenging situations and decisions as they participate in the governance of such microfinance institutions but there is no doubt that these social investors have expanding opportunities to play active governance roles. This study explored the extent to which investors are currently capitalizing on this opportunity. It also offers practical insights into emerging good practices and reflects on how to address reported gaps.
Open Access
CHALLENGES AND PROSPECTS OF THE NIGERIAN SOVEREIGN WEALTH FUND
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2011-09-16) Udenwa, Theresa A; Uwaleke, Uchenna
Following the passage of the Nigerian Sovereign Investment Authority (NSIA) bill by the National Assembly, Nigeria is set to join the league of countries operating the Sovereign Wealth Fund Beginning with a look at the conceptual issues surrounding a Sovereign Wealth Fund and the rationale for its creation, this paper x-rays the challenges and prospects therein based on existing literature. It notes that the operation of Sovereign Wealth Funds in many countries has been criticized for lack of transparency and political interference. Nevertheless, its successful implementation holds a lot of promise for a mono-product economy such as Nigeria in terms of ensuring macro-economic stability.
Open Access
COMMUNITY BANKING IN NIGERIA: PROBLEMS AND PROSPECTS
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2002-12-17) Udenwa, Theresa A
The community banking scheme is an innovative banking institution that took off in Nigeria in 1990. It is meant to be a tool for the financial and economic emancipation of rural communities and groups like community development associations, co-operative societies, farmers’ groups and trade groups who hitherto had been finding it very difficult gaining access to credit facilities through the orthodox banking institution. Recent, as it is, there are currently more community banks in the country than any financial institution all spread throughout the states of the federation. But their operations have not been hitch-free as they have been encountering some problems. This paper, therefore, is an x-ray of the community banking scheme in Nigeria with a view to determining their problems and prospects for the future.
Open Access
CONTEMPORARY ISSUES IN ECONOMIC AND FINANCIAL ANALYSTS
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2000-12-13) Udenwa, Theresa A
The theory of demand seeks to establish the relationship between the quantity demanded of a commodity and its price. It offers an explanation for variations in demand and the downward sloping nature of a normal demand curve. There are two basic approaches to the explanation of individual consumer behaviour. One of which is the cardinal utility approach simply referred to as the utility approach while the other is the ordinal utility approach otherwise called the indifference curve, approach. Both approaches are useful in that they provide an explanation for the normal downward sloping demand curve in addition each approach yields valuable but different insights into consumer behaviour. But whereas the cardinal approach puts precise values on alternatives available to the consumer, the indifference curve method ranks the alternatives from low to high with no precise values being placed on the magnitude of the intervals between them. Thus whereas the cardinal or utility approach ranks utility derived from commodities in terms of utils the ordinal approach ranks them in terms of one being preferred against the other without giving the exact magnitude of the preference.
Open Access
EFFECT OF BUDGET DEFICIT AND PUBLIC DEBT SERVICING ON DOMESTIC DEBT STOCK IN NIGERIA
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2019-03-18) Saleh, Atiku Dambatta; Udenwa, Theresa A
This study examines the effect of budget deficit and public debt servicing on domestic debt stock in Nigeria. An ex-post facto research design was employed for this study. Secondary data were collected from Central Bank of Nigeria Statistical Bulletin for thirty eight year period spanning through 1981 to 2018. Employing the econometric methodology of the Johansen Cointegration and Vector Error Correction Model, the study established long run relationships among the variables. The Ordinary Least Square result shows that budget deficit has no significant effect on domestic debt stock in Nigeria, while domestic debt servicing have significant effect on domestic debt stock in Nigeria. The study recommends that the Debt Management Office should take urgent steps towards restructuring part of the short term domestic debt to long term through outright redemption of portion of short term domestic debt when they mature. Also, to reduce the possibility of crowding-out the private sector, the Federal Government should encourage private sector participation in developmental projects through the issuance of Federal Government guarantee.
Open Access
EFFECT OF INTEREST RATE AND MONEY SUPPLY ON STOCK MARKET LIQUIDITY IN NIGERIA
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2002-05-12) Fawale, Busayo Ayinla; Udenwa, Theresa A; Olaolu, Emmanuel Oladele
The effects of interest rate and money supply on stock exchange provide important implications for risk management practices, financial securities valuation and government policy towards financial markets. This study investigates the effects of interest rate and money supply on stock market liquidity in Nigeria for the period 1985-2020. The study proxy market liquidity with stock market return, employed ex post facto research design, secondaiy data were extracted from Central Bank of Nigeria Statistical Bulletin and Nigerian Stock Exchange Reports and Unit root tests were carried out which re\>ealed variables to be stationary at first difference. The Johansen co-integration was applied to examine the co-movement of the variables but these were not cointegrated, hence, the need to employ Vector Auto regression estimation technique with Variance Decomposition and Impulse Response Function to analyse the data. Findings suggest that interest rate has a significant negative effect on stock market liquidity while money supply has significant positive effect on stock market liquidity in Nigeria. The study concludes that shock from interest rate reduces stock market liquidity while shock from money supply increases stock market liquidity. However, shock from money supply has more expansionary power on stock market liquidity in Nigeria. This study recommends that the Central Bank of Nigeria should reduce the interest rates in order to stimulate the stock market liquidity in Nigeria. Also, the Central Bank of Nigeria should control money supply and explore other measures such as contractionary open market operation to mop-up excess liquidity where and when necessary.
Open Access
Effect of Public Debts on Private-Sector Investment in Nigeria
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2021-03-18) Osuoha, Rophina Chionyeka; Udenwa, Theresa A; Nwala, M. Nneka
This study empirically analyzed the effect of Public Debt and Private-Sector Investment in Nigeria (1986-2017). This study employed secondary data in the analysis. The study used the ordinary least square method (OLS) and Error Correction Model (ECM) tools of analysis in the investigation of the impact and relationship among the economic variables. The Ordinary Least Squares (OLS) and the Error Correction Models show that there is a strong relationship between Private Investment (PIVN)in Nigeria and Public Debt in Nigeria. Public Debt in Nigeria has a negative effect on the economy both in the short run and long rim especially the Public Domestic Debt in Nigeria and Public External Debts in Nigeria. This is because the more government borrows from both the domestic and the external the more it crowds out investment especially the domestic debt crowds out private investment through lack of access to funds. The ECM result revealed that Public Debt Service in Nigeria has a positive effect on Private Investment (PIVN)in Nigeria, this is because when the government pays back loans or debts, it increases access to funds by the private investors thereby increasing the level of private investment in the country. Therefore, the study recommends that government should design a mechanism for effective and efficient Public Debt Service Management in Nigeria to increase access to funds by private investors and thereby increasing and enhancing Private Investment (PIVN) in Nigeria.
Open Access
EFFECT OF SELECTED MACROECONOMIC FACTORS ON STOCK MARKET CAPITALIZATION IN NIGERIA: A NON-LINEAR APPROACH
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2021-03-15) Ene, Josephine; Nwala, Maureen Nneka; Udenwa, Theresa A
This paper investigated the interaction between selected macroeconomic factors (exchange rate, money supply and trade openness) and stock market capitalization using the non-linear autoregressive distributed lag (NARDL) model and the Error Correction Model (ECM) for the period 2000 to 2019. The secondary data used were extracted from CBN statistical bulletin 2019 and Nigeria bureau of statistics reports. The findings revealed that only exchange rate and money supply had a long-run effect on market capitalization. The findings also revealed that at 10% significance level all the factors asymmetrically affected market capitalization in Nigeria. It is recommended that the asymmetric relationship between macroeconomic factors and stock market capitalization should be taken into consideration while making investment or policy decisions in Nigeria.
Open Access
EFFECT OF SELECTED MACROECONOMIC VARIABLES ON STOCK MARKET LIQUIDITY IN NIGERIA
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2002-05-09) Fawale, Busayo Ayinla; Amana, Samuel Abu; Udenwa, Theresa A
This study examines the effect of selected macroeconomic variables on stock market liquidity in Nigeria for the periods of 1985 to 2020 using Autoregressive Distributed Lag technique to analyse the data. The study employs ex post facto research design with the use of time series secondaiy data. The study proxy stock market liquidity with stock market turnover while the selected macroeconomic variables are exchange rate, Gross Domestic Product growth rate and inflation rate. The study tests for stationarity of the time series secondary data with Augmented Dickey Fuller Test and the result of the results of the test suggest that all the data are stationary at first difference, except inflation rate that was stationary at level. The study found that exchange rate has a negative significant effect on stock market liquidity in Nigeria, while GDP growth rate has no significant effect on stock market liquidity in Nigeria. The result likewise shows that inflation rate has a positive significant effect on stock market liquidity in Nigeria. Based on findings, the study conclude that macroeconomic variables have significant effect on stock market liquidity in Nigeria. The study recommends that Government should put in place measures that will encourage appreciation of Naira to ensure that the exchange rate is stabilized. Also, Government should aim to take the leap to improve economic growth. Lastly, Investors should invest in stocks when the inflation rate is on the rise because stocks are still a good hedge against inflation over the long term.
Open Access
ETHICAL ISSUES IN THE NIGERIAN BANKING SECTOR
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2017-10-04) Udenwa, Theresa A
The banking sector is considered to be one that is guided by strong ethical principles. However, the reported cases cf distress in the banking sector in Nigeria suggest otherwise This paper examines ethical challenges and unethical practices in the sector using exploratory approach. It identifies some of the unethical practices in the sector to indude: money laundering earring manipulation, employees’ fraudulent practices, forcing cf employees to meet unrealistic bigfi deposit mobilization targets, speculative banking andfinancing cf political campaigns. The unethical practices tend to erode the confidence cf investors, customers and the public at a large as the banks are seen as lacking integrity in their quest to report hinder earring. Banks that engage in unethical practices are very likdy to lose customers and their share cf the market Therefore, the banking sector in Nigeria musterrhrace strong ethical culture supportive cf strong internal controls to mitigate the lead cf frauds and unwholesome practices for a transparent and effective financial intermediation role
Open Access
EXTERNAL DEBT AND ECONOMIC DEVELOPMENT: THE NIGERIAN EXPERIENCE
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2006-09-17) Udenwa, Theresa A
The paper examined external debt implications on economic development drawing from the Nigerian experience. It discusses the nature of borrowed capital and its impact on economic development. The examination revealed that because of poor management external loans tend to constraint the rapid economic development of the Third World Countries taking the loans. The paper highlighted the burdens associated with this, and suggested means of effective use of the loans.
Open Access
FOREIGN EXCHANGE MANAGEMENT: THE NIGERIAN EXPERIENCE
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 1995-12-19) Udenwa, Theresa A
Foreign exchange could be defined as the monetary asset used for the settlement of current international transactions and for financing imbalances in a country's external payments. It could arise from foreign currency receipts from the export of goods and services, inflow of foreign capital such as loans and investments or from grants, aids and gifts which represent unilateral transfers. The interdependence of Nations in terms of international trade has grown so much that, perhaps, no country can lay absolute claim on self-sufficiency in its resource requirements or on a perfectly balanced supply of resources. Also since resources (including foreign currency) are scarce, the need for management of such resources becomes inevitable. Foreign exchange earnings from international trade transactions are vital for the economic development of most nations especially the less developed countries since such earnings can induce increased factor supplies and promote the development of technical-know-how which should enhance domestic capital formation and economic growth. Consequently the role of foreign exchange has become a critical element in the development planning process of less developed countries, it, therefore, becomes necessary that for a country to optimise the advantages of foreign exchange earnings, it has to have a sound foreign exchange management strategy.
Open Access
IMPACT OF BANK PROXIMITY AND ACCESSIBILITY ON ECONOMIC GROWTH IN NIGERIA
(Department of Banking and Finance, Faculty Of Administration Nasarawa State University, Keffi., 2021-06-23) Busari, Rashidat Ayanbanke; Udenwa, Theresa A; Abubakar, Halimatu Sa'adiya
This study empirically examined the impact bank proximity and accessibility on the economic grouth of Nigeria within the period 1986 to 2019. The specific objectives are to assess the impact of bank proximity on economic growth in Nigeria and investigate the impact of bank accessibility on economic grozvth in Nigeria.Also, the study adopted the ex post facto research design and employed the Autoregressive Distributed Lagged (ARDL) and the Error Correction Model (ECM) were used to establish the short-run and long-run effect of financial inclusion determinants on economic growth in Nigeria. EGRN is Economic Growth in Nigeria which serves as the dependent variable, Wltile ACS is Bank Accessibility and PROX is Bank Proximity in Nigeria serves as the independent variables. Findings revealed established that all the variables have a positive impact on economic growth in Nigeria both in the long run and short run. However, the probability of the ARDL result showed that Bank Accessibility in Nigeria (ACE) zvas insignificant in explaining the variation in economic grozvth in Nigeria, zvhile the ECM revealed that Bank Proximity in Nigeria (PROX) grozvth in Nigeria. This study recommended that financial authorities should put a mechanism in place bank branches and increase the number of bank branches per certain statistically significant zvas in explaining the variation in the economic that zvill enable banks to open more number of population and ATMs provision for maximum formal financial services to the rural population on short team basis since bank proximity has a significant impact on economic gin the short run.