Benjamin Ighodalo Ehikioya

This study examines the effect of regulatory capital requirements on bank performance in Nigeria. The study utilises panel data from the audited annual reports and accounts of 13 deposit money banks, the Central Bank of Nigeria and the Nigerian Exchange Group to investigate whether stronger capitalisation improves accounting and market-based performance. This was cross-validated with data from the World Development Indicators (WDI) from the World Bank. Market data required to compute Tobin’s Q, including market capitalisation and share prices, were gathered from the Nigerian Exchange Group (NGX). The study employs two-way fixed effects with Driscoll–Kraay standard errors and the fixed-effects–Two-Stage Least Squares (FE-2SLS) techniques to analyse panel data from 2007 to 2024 and address unobserved heterogeneity, cross-sectional dependence and endogeneity between capital and performance. Banks’ performance was measured using return on assets and Tobin’s Q, which are accounting-based and market-based performance measures. The results indicate that capital adequacy, which explains prudential requirements, significantly enhances bank performance. The FE-2SLS estimates provide consistent evidence, strengthening confidence in the relationship between capital and profitability. The study confirms that while non-performing loans and inflation negatively affect profitability, liquidity, bank size, board independence and GDP growth improve bank performance. These findings are consistent across both accounting and market-based performance measures and conclude that stronger capital can enhance bank profitability. Thus, regulators should continue to execute policies that ensure capital adequacy translates into financial performance. In addition, policymakers and bank managers should strengthen governance structures and enhance risk management strategies to improve banks’ asset quality for long-term financial performance.

One essential factor that drives the financial system is the stability of the banking industry, particularly in developing economies like Nigeria, where macroeconomic volatility and credit risk remain prevalent. To ensure the banking system continually supports the economy, this study examines the impact of capital adequacy on the stability of deposit money banks in Nigeria. In this study, Fixed Effects and Dynamic Ordinary Least Squares are employed to analyse panel data from 11 Nigerian banks from 2014 to 2023. The results indicate that the capital adequacy ratio, liquidity ratio, and bank size have a positive and significant impact on banking stability in Nigeria. The result indicates a persistent level of bank resilience, underscoring the need to ensure a stable banking system. Asset quality, inflation, and interest rates adversely affected bank stability in Nigeria. Similarly, the cost-income ratio has a significant impact on banking stability. In light of these findings, the study recommends that the regulatory authority should enhance oversight, particularly in the area of loans. Finally, the regulator should keep pace with the recapitalisation reforms in the banking sector to make Nigerian banks more stable, thereby boosting public confidence and supporting economic growth.

Banks are a key driver of economic activities, especially in emerging markets, where capital markets are not well developed. Thus, this study examines the factors that determine the stability of banking in an emerging market. We have employed the fixed-effects and dynamic System-GMM techniques to analyze panel data collected from the annual reports of the banks, the bulletin of the Central Bank of Nigeria (CBN), and the World Bank database from 2014-2023. These estimators address heterogeneity, measurement error, endogeneity, and unobserved biases. The results indicate that capital adequacy ratios, liquidity ratios, efficiency, bank size, quality of governance, and profitability are important in enhancing bank stability in Nigeria. Although past stability has a positive influence on present stability, GDP growth has a positive but statistically insignificant effect on resilience. Bank stability is adversely impacted by non-performing loans, inflation, the quality of institutions, and interest rates. These findings suggest that banks should be regulated on bank-specific variables, including non-performing loans. The Central Bank should further strengthen its control over the Nigerian banking industry to foster resilience and sustainability. Policymakers should improve the level of governance and policies that promote stability.

There have been concerns about the impact gender inequality and board composition could have on the performance of firms, especially in emerging economies. Effective board composition is an essential factor in modern organisations. Thus, this study examines whether female inclusion in company boards impacts the performance of publicly traded firms in Nigeria from 2013 to 2022. The study employed data from firms trading on the Nigerian Exchange Group from 2013 to 2022, the Fixed Effects model for analysis and two‐stage least squares for robustness checks. The empirical findings show that female inclusion in corporate boards positively impacts firm performance in Nigeria. The study also explores board experience and age diversity to address the issue of cognitive as well as demographic diversity. The impact of female inclusion in corporate boards is significant when the directors have experience in board matters and possess a minimum of a bachelor's degree or comparable professional qualifications. After addressing the likelihood of endogeneity problems associated with governance variables, the results from the robustness checks remain the same. The findings imply that firms should promote board gender diversity as well as engage experienced and educated female directors in board‐related matters to enhance good governance and firm performance.

The issue of achieving and sustaining a nation’s economic growth is an issue that is of concern to many nations of the world, especially the sub-Saharan African (SSA) nations. This was in line with the United Nations Sustainable Development Goal (SDG) 8 of Economic Growth. This study, therefore, examines how monetary policy tools can help the SSA governments achieve the SDG 8 goal and also sustain it. Relevant secondary data on sustained economic growth (GDPPC) (dependent variable) and interest rate, exchange rate, money supply, and inflation rate (independent variable) were gathered from the annual report of the Central Banks of the 48 SSA nations. The panel data year covers the period from 2016 to 2022. The unit root test confirms the variables to have a level integration order. The Hausman test suggests the use of fixed effect regression. The fixed effect regression shows that for the 48 SSA nations, interest rate, inflation rate, and money supply were positively significant in impacting GDPPC while exchange rate was negatively significant in impacting GDPPC. The study, therefore, recommends that import promotion, for example, should be avoided because it raises the exchange rate and lowers the value of currencies of the SSA nations.

Investment in agriculture is very crucial in the present situation of Nigeria. The effort to overcome food insecurity can only be efficacious if steps in the right direction will be taken. At this juncture in the Nigerian economic history, the right step to take is to adequately finance agriculture in order to ensure sufficient food production and safety that will save the future of the country. This study emphasizes on investment in agriculture to guarantee food security in Nigeria. Several other studies focus on the numerous challenges food production in Nigeria suffer, however, it is important to come to a conclusion that agriculture requires huge financial investment to thrive. This study examines the impact of agricultural financing and output on food production using data from 2007−2019. The regression result reveals that agricultural output is significant and positive in affecting food production and safety but agricultural financing is immaterial in guaranteeing sufficient food production in the country. This result gives evidence that investment in the agricultural sector will be the solution to food insecurity in Nigeria. The government is by this study encouraged to increase the budget on agriculture in order to boost food supply and safety in the country.

The study investigates how financial literacy and financial capabilities influence small firms’ sustainability in Lagos and Ogun States, Nigeria. It employs a survey research design to collect data from 300 small business owners across the two States. Data collected were analysed using Structural Equation Modelling (SEM) technique. The study shows that environmental sustainability, financial sustainability and social responsibility are significant determinants of small firms’ sustainability in Nigeria. Financial literacy and financial capabilities practices also have a significant positive impact on firm sustainability. However, the use of savings product shows a significant adverse effect on firms’ sustainability. The findings imply that financial literacy knowledge and practice in small business operations enhance firms’ sustainability. The study recommends that small firms should incorporate sustainability models into their business operations and improve their financial knowledge to maintain sustainability. Small business owners should also invest their savings in an appropriate investment product that suits their risk tolerance.

Africa has underdeveloped stock markets that have failed to meet the continent’s capital needs, such as rapid economic growth. This research analyzes the key drivers of stock market development in Africa from a macroeconomic perspective. The study examines several macroeconomic variables, including credit to the private sector, foreign direct investment, external reserves, money supply, external trade, per capita GDP, inflation, and lending rate to explain stock market development in Africa. The study builds a panel data consisting of eight African countries from 1994 to 2018 and applies the pooled mean group estimation technique. The analysis shows that in the long run, credit to the private sector, external reserves, and inflation are the most important factors that influence stock market development, while in the short run, income and trade openness are significant in explaining stock market development in Africa. The study recommends that policies to develop African stock markets should center on developing the private sector through access to credit, increased per capita income, and effective foreign reserve management to boost local and foreign investors’ confidence.

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.