Implications Of Financial Intermediation Cost On Economic Growth In Nigeria (Published)
There is a growing concern as to whether the cost of financial intermediation is having commensurate beneficial implication on economic growth in Nigeria. The main objective of this study is to determine the implications of cost of financial intermediation on economic growth in Nigeria. The study made use of ordinary least square regression analysis. Results for ADF unit root tests show that all variables under consideration are I(1). The co-integration test also indicates long run relationship between cost of financial intermediation and economic growth in Nigeria. The study shows that total loan (TL) has significantly impacted on economic growth in Nigeria, that interest rate has significantly impacted positive on the growth of Nigerian economy and that the level of total deposit over the years has impacted negatively on economic growth in Nigeria. The policy implication is that improper management of financial intermediation cost may have caused several macroeconomic consequences in Nigerian economy and the framework for demonstrating its consequence in the real sector of economy. Hence, the issue of how total loan, interest rate and total deposit linked to the level of economic growth is of a great concern in Nigerian economic performance. We therefore recommend that Nigerian government should ensure that proper control and regulation should be guided the activities of the financial intermediations cost in order to achieve a sound financial system
Keywords: Cost, Economic, Financial, Growth, Intermediation, Nigeria
NIGERIAN: AN ENTREPRENEURIAL REALITY AND FOUNDATION FOR NATIONAL ECONOMIC DEVELOPMENT (Published)
Nigeria, as an innovation or creative response, was the criterion of British entrepreneurship. Its objective was to obtain essential raw materials and slave labour urgently required for the resuscitation and survival of the British industrial system and farm plantations in Europe. These British entrepreneurs on national assignment came in contact with numerous desolate, isolated and marginal settlements locked up in wild forests or desert. Creative response was applied to this hopeless situation that had at least two essentials: (1) The said settlements could practically never be understood ‘ex ante’ as Nigeria, and (2) This creative response shaped the whole course of the said subsequent settlements and their long-run outcome as the nation-state of Nigeria. Nigeria offered Nigerians a strong base in large population, increased landmass, abundant natural resources etc and enviable opportunity to improve themselves through servicing and understudy. The colonial officers. Secondly, a fundamental national unity was rooted in the Nigeria’s Independence of 1960. This empowered Nigerians to cluster and face common challenges and opportunities and to network and jointly attain national objective. Instead, our tribal focus defined Nigeria as a warfront with constitutional protection rackets, institutionalizing corruption and incompetence. Unemployment and poverty became the twin faces of the economy. Our intangible wealth constitutes a negative 71 percent for Nigeria unlike Ghana with positive 80percent. The low literacy level is responsible for the low national human capital in Nigeria. This paper strongly recommends free compulsory and universal education at all levels including adult literacy programme for all Nigerians. This worked in all developed nations. The country’s manufacturing sector was compelled to depend on the importation of minerals that Nigeria has in abundance consequently, infrastructure at mine sites deteriorated due to neglect. Today it is empowering China with a literacy rate of 87.3 percent.
Keywords: Entrepreneurial Reality, National Economic Development, Nigeria
Effect Of 2004 Banking Reforms on Loan Financing Of Small and Medium Scale Industries in Nigeria (Published)
The paper assesses effect of 2004 banking reforms on loan financing of the SMEs in Nigeria. A sample size of 500 was randomly chosen and Chi square test provided analysis on the survey data, and Cronbach’s alpha, Split-half test and Guttman’s lambda provided the analysis for testing the reliability. The paper concludes that there is no significant effect of 2004 banking reform on loan financing of SME in Nigeria. This signifies that there are some constraints which restricted access to loans from the banks for SMEs in Nigeria. The paper recommends that Central Bank of Nigeria, CBN, and Nigerian government should provide general procedures for accessing the loans so as to remove unnecessary constraints from banks.
Keywords: Bank Reforms, Loan Financing, Nigeria, SME
Effect of 2004 Banking Reforms On Loan Financing Of Small and Medium Scale Industries in Nigeria (Published)
The paper assesses effect of 2004 banking reforms on loan financing of the SMEs in Nigeria. A sample size of 500 was randomly chosen and Chi square test provided analysis on the survey data, and Cronbach’s alpha, Split-half test and Guttman’s lambda provided the analysis for testing the reliability. The paper concludes that there is no significant effect of 2004 banking reform on loan financing of SME in Nigeria. This signifies that there are some constraints which restricted access to loans from the banks for SMEs in Nigeria. The paper recommends that Central Bank of Nigeria, CBN, and Nigerian government should provide general procedures for accessing the loans so as to remove unnecessary constraints from banks.
Keywords: Bank Reforms, Loan Financing, Nigeria, SME