Foreign Exchange Risk Management and Business Performance of Selected Manufacturing Companies in Nigeria (Published)
In Nigeria’s manufacturing sector, the perpetual fluctuations in the naira’s value, combined with the country’s heavy reliance on imported goods such as raw materials, equipment, and technological advancements, have catapulted foreign exchange risk to the forefront of concerns. This research delves into the impact of mitigating foreign exchange risk on the success of a group of Nigerian manufacturing companies, with a particular emphasis on three critical aspects: the effects of exchange rate changes on international transactions, financial statements, and the broader economy. The study’s objective was to uncover how these factors interplay with financial performance, operational efficiency, and competitiveness. To achieve this, the research employed a retrospective design, gathering data from the audited financial statements of 15 manufacturing firms listed on the Nigerian Exchange Group between 2020 and 2024. Supplemental data was sourced from the Central Bank of Nigeria and the National Bureau of Statistics, providing a comprehensive dataset. The analysis utilized panel regression, with the Hausman test serving as a guide to determine the most suitable model. The results revealed a significant correlation between adept foreign exchange risk management and enhanced business outcomes. Notabll, strategic management of transaction and economic exposure yielded substantial benefits for firm performance, whereas managing translation exposure had a pronounced positive effect on operational efficiency. Ultimately, the study affirms that proactive management of foreign exchange risk is pivotal in enabling firms to navigate economic turbulence while maintaining profitability, cost control, and a competitive edge. In light of these findings, the research advises manufacturing companies to establish robust treasury management practices, leverage available risk-mitigation tools, and prioritize accurate exchange rate forecasting to minimize the adverse effects of currency volatility.
Keywords: Business Performance, Manufacturing Companies, Nigeria, Risk Management, economic exposure, foreign exchange risk, hedging, transaction exposure, translation exposure
Corporate Governance Mechanism and Financial Performance of Selected Commercial Banks in Nigeria (Published)
This paper investigates the effects of corporate governance mechanisms on selected Nigerian banks’ financial performance from 2018 to 2024, focusing on the impact of board structure, audit committee effectiveness, risk management practices, and governance disclosure on profitability, asset quality, and credit risk management. A mixed-methods research design is adopted for this study, complementing quantitative analysis of financial statements and governance reports with insights from regulatory filings and corporate disclosures. Results show that all governance mechanisms are significant, yet distinct, drivers of financial performance, with risk management practices emerging as the most crucial determinant. Boards with diverse expertise, combined with active audit committees, robust risk frameworks, and transparent reporting by firms, go hand in hand with profitability and reduction of non-performing loans. Based on these findings, this study supports theoretical hypotheses within Agency, Stakeholder, Resource-Dependence Theories while extending the previous literature on the role of board diversity, qualitative audit committee engagement, and disclosure as a source of strategic value. This suggests an integrated approach to governance as an important lesson in teasing out how to prosper in Nigeria’s sometimes hostile banking environment, providing lessons that will be useful in practice for bank management seeking to build stronger institutional performance and resilience, regulators, and other policy actors.
Keywords: Bank Profitability, Board Structure, Corporate Governance, Financial Performance, Risk Management, audit committee effectiveness, governance disclosure
Insurance and Post-Covid-19 Development of Small and Medium Enterprises (SMEs) In Abuja, Nigeria (Published)
The study examines the effect of insurance on the development of small and medium enterprises in the post covid-19 era. The study was carried out in Abuja, Nigeria. A descriptive design was used to determine and describe the factors affecting risk management by SMEs and the related insurance policies to mitigate risk. A simple random sampling technique was employed to select 252 SMEs as a sample size for the study. Data were analyzed with the aid of descriptive and inferential statistics. The study reveals that most of the SMEs do not have insurance policies for their businesses, and the level of information on insurance is very low. Furthermore, the finding shows that COVID-19 was a major risk SMEs are battling with, while non-response, non- payment of claims and delay claim payment are the major factors preventing SMEs from adopting insurance as a risk management strategy. Subsequently, it was recommended that the insurance industry should organize seminars, workshops, and conferences in conjunction with SMEDAN and MAN on insurance literacy, in all Areas for SME operators/ managers.
Keywords: COVID-19, Development, Insurance, Risk Management, SMEs
Electronic-based Governance System Risk Management in Serang District (Published)
This study examines the risk management of electronic-based government systems in Serang District by examining empirically the implementation. The data collection technique used is Library Research on secondary data. Literature study was conducted to obtain secondary data in examining in depth the object of study. Data analysis was carried out using the content analysis approach. The results of the research on the Implementation of Electronic-Based Government System Risk Management began with the preparation and establishment of an Electronic-Based Government System Risk Management framework that is integrated with work processes in Regional Work Units. The framework for Electronic-Based Governance System Risk Management includes principles, leadership and commitment, the Electronic-Based Governance System Risk Management process, and the governance of Electronic-Based Governance System Risk Management and adapted to the conditions of each work unit within the Serang Regency Government. Based on the research results, it can be concluded that the participation of all parties, both internal employees of the State Civil Apparatus and other stakeholders, is very much needed. Good coordination and collaboration with all elements including the system that has been running in the Regional Government of Serang Regency is the key to the successful implementation of Electronic-Based Governance System Risk Management.
Keywords: E-Governance, E-government, Risk Management, digital service
Risk Management, Risk Concentration and the Performance of Deposit Money Banks in Nigeria (Published)
This study investigated the effect of risk management and risk concentration on the performance of Deposit Money banks in Nigeria for the period 1997 to 2016. The study adopted credit risk, liquidity risk and capital adequacy risk as proxies for risk management/concentration, and return on assets as the measure for performance of Deposit Money banks. Secondary data was collected from the annual financial statements of listed banks and the Nigerian Stock Exchange fact book. The study employed multiple regression technique based on the E-views 7 software for analysis of data. The results of the analysis indicated that credit risk and liquidity risk had positive and significant effect on return on asset, while capital adequacy risk had negative and insignificant effect on return on asset. The study concluded that risk management/concentration affected the performance of banks in Nigeria. Based on the findings, the study recommended that the management of banks should establish sound lending policies, adequate credit administration procedure, and effective and efficient machinery to monitor the lending function in line with established guidelines. Also, the character and financial statement of the borrower must be properly scrutinized and a careful evaluation of the customer’s credit worthiness be carried out before extending loan facilities to potential borrowers.
Keywords: Credit, Liquidity, Performance, Returns on Assets, Risk Management, capital adequacy
Corporate Governance and Its Role in Mitigating Risks in Stock Brokerage Firms in Nairobi, Kenya (Review Completed - Accepted)
The success or failure of any organization rests on its leadership. In the 21st century, corporate governance is becoming a matter of enormous public attention and concern. With regard to policy and regulatory changes that have taken place in the stock market in Kenya, more emphasis has been put on the need to improve corporate governance and strategic leadership practices of stock brokerage firms.The study adopted a descriptive design. A sample size of 64 managers from finance and operations departments was selected randomly in each organization involved in this study. Primary data was collected using questionnaires and analyzed using mean, standard deviation and coefficient of variation. The major findings were that all the brokerage firms have boards of directors. However, majority of board members did not have adequate skills, knowledge or experience in strategic leadership, stock brokerage finance and risk management.
The study concluded that corporate governance and strategic leadership practices were not being applied optimally to mitigate risks in the firms under study. This explained why several companies in the stock market had either collapsed or were experiencing financial distress
Keywords: Corporate Governance, Risk Management, Strategic leadership