Tomola Obamuyi - Academia.edu (original) (raw)

Papers by Tomola Obamuyi

International Business Management, 2018

Most developing countries, such as Nigeria, have always been challenged by saving-investment gap,... more Most developing countries, such as Nigeria, have always been challenged by saving-investment gap, while many of them have consistently harnessed the Foreign Portfolio Investment (FPI) inflows to bridge the gap. In spite of the increased inflow of this type of investment to the Nigerian economy, its influence on stock market performance has been less consensual while such investment is also vulnerable to economic shocks. Therefore, this study examines the effect of foreign portfolio equity investment on stock market performance in Nigeria. The study employed ex-post facto research method using monthly time series data from 2007 to 2017. Using Kruskal-Wallis non-parametric test and the Autoregressive Distributed Lag (ARDL) model, the results reveal that there exists a significant difference in the sectoral distribution of FPI inflows to the Nigerian economy. It also finds that foreign portfolio equity investment has a significant positive influence on the Nigerian stock market perform...

Indian Journal of Finance, Apr 1, 2012

The paper provides new evidence on the empirical relationship between financial development and e... more The paper provides new evidence on the empirical relationship between financial development and economic growth in Nigeria. Time-series data from 1973 to 2009 were employed to run the econometric analysis of cointegration and Vector Error Correction Model (VECM). The Granger causality test was also adopted to test the direction of causality between financial development and economic growth in the country. The results of the study reveal that there exists a bi-directional causality between economic growth and financial development in the country. The results of this study provide evidence for the government to identify those financial development and growth variables that contribute to the overall economic performance in Nigeria.

Acta Universitatis Danubius: Oeconomica, 2018

The study examines the impact of foreign trade on economic growth in Nigeria and India as well as... more The study examines the impact of foreign trade on economic growth in Nigeria and India as well as the direction of causality between foreign trade and economic growth in the countries. The study used Vector Autoregression method (VAR) and Granger causality test in estimating the data. The data used were sourced from United Nations Conference on Trade and Development (UNCTAD). Results of the VAR show that economic growth had positive and significant impact on foreign trade in Nigeria and India. The results further revealed that the direction of causality running from foreign trade to economic growth in Nigeria and India. The study concludes that foreign trade serves as a lubricant in further enhancing economic activities of the countries. Therefore, the government in the two countries should further open up their economies for international trade and put in place sound macroeconomic policies that will enable the countries to reap the benefit of foreign trade.

The paper investigates the relationship between interest rates and economic growth in Nigeria, us... more The paper investigates the relationship between interest rates and economic growth in Nigeria, using time series analysis and annual data from 1970 -2006. The co-integration and error correction model were used to capture both the long-run and short-run dynamics of the variables in the model. The empirical results indicate that real lending rates have significant effect on economic growth. There also exists a unique long-run relationship between economic growth and its determinants, including interest rate. The results imply that the behaviour of interest rate is important for economic growth in view of the relationships between interest rates and investment and investment and growth. Thus, the formulation and implementation of financial policies that enhance investment-friendly rate of interest is necessary for promoting economic growth in Nigeria.

This paper examines the reasons for the poor economic development in the Coaster Area of Ondo Sta... more This paper examines the reasons for the poor economic development in the Coaster Area of Ondo State, Nigeria, despites the presence of the rich natural resources (mineral, water, land, forest and touristic resources), and how to enhance the financial status of the people in the oil-rich region, who mainly engaged in fishing activities. Descriptive statistic was employed to analyse the primary data collected through well-structured face-to-face interviews and focused group discussions (FGD) with the fishermen and community leaders. The paper proves that the financial predicament of the people emanates from the exploration and exploitation activities of the oil companies operating in the region which had resulted to environmental degradation causing poverty, lack of access to finance, and poor infrastructure. The paper suggests that, in view of the great economic value of fishing all over the world and its contributions to economic development, government and the intervention agencies...

This main objective of the paper is to examine the effect of interest rate reforms on financial d... more This main objective of the paper is to examine the effect of interest rate reforms on financial deepening in Nigeria. The methodology adopted for the study includes cointegration and vector error correction models (VECM)

Journal of Applied Finance & Banking, 2011

The paper examines the implications of financial reform and interest rate behaviour on economic g... more The paper examines the implications of financial reform and interest rate behaviour on economic growth in Nigeria. The cointegration and error correction model were used on time series data from 1970-2006. The results demonstrate that financial reform and interest rates have significant impact on economic growth in Nigeria. The results imply that the behaviour of interest rate is important for economic growth in view of the empirical nexus between interest rates and investment, and investment and growth. The study recommends that government must embark on growth enhancing financial reform and be sensitive to the behaviour of interest rates for overall economic growth in the country.

Journal of Business and Economic Development

This study examined the impact of microfinance bank on entrepreneurship development in Anambra St... more This study examined the impact of microfinance bank on entrepreneurship development in Anambra State. To achieve the stated objective of the study, three research questions were formulated. The descriptive research design was adopted for the study. The population of the study was 734 staff of ten (10) selected entrepreneurial firms in Anambra State. It was impracticable to study the whole population therefore 259 staff was sampled using stratified sampling technique. Out of the 259 copies of the structured questionnaire administered to the respondents, 192 were completed and returned. The data obtained were analyzed using Pearson correlation for hypothesis one and ANOVA for hypotheses 2, and 3 respectively. The findings revealed that microfinance bank impact significantly on the development of entrepreneurship in Nigeria; that there are problems that militate against the effective financing of entrepreneurial businesses in Anambra State. Based on the findings, it was recommended that microfinance bank in Anambra State should be strengthened to embrace entrepreneurship devoid of imitation and vocational inclinations. Also adequate financial, physical and human resources should be provided by various stakeholders not only for potential but also for existing, start-ups and aspiring SMEs.

African Journal of Business Management, 2008

The paper empirically investigated the relationship between profitability, bank loans, age of bus... more The paper empirically investigated the relationship between profitability, bank loans, age of business and the size of small and medium enterprises in Nigeria. Using fixed-effects regression model, the paper was based on a balanced panel data of 115 SMEs of existing firms that have taken loans or currently have active loans, randomly selected in Ondo State, Nigeria. The equation specified profitability as dependent variable and loans, sales, age of business, size of business and interest rate as independent variables. All the data except interest rate have been derived from the primary source/field survey. The results demonstrate that there is interdependence between the SMEs profitability and bank loans, and a significant relationship between profitability and the size of business. For high profitability, increased loans and growth in size of business remain important. The paper recommends that the government should formulate policies that will compel commercial banks to relax the...

The paper examines the nature and extent of the incessant banking distress in Nigeria and the imp... more The paper examines the nature and extent of the incessant banking distress in Nigeria and the implications for policy formulation and implementation. Descriptive statistics were employed to analyse data from the secondary source. The paper calls for a more pragmatic and pro-active approach by the Central Bank of Nigeria in dealing with the problem of banking crises. It was stated that, although the recent consolidation exercise made the banks to be heavily capitalised in line with global financial system, it did not guarantee sound financial stability, as a result of implementation problem. The paper, therefore, recommended strict enforcement of all the measures of financial stability such as management, liquidity and corporate governance, and other prescribed standard international regulations by the monetary authorities.

Global Journal of Management and Business Research, 2010

This paper assesses the impact of Nigeriaâ€™s financial liberalisation policy for fostering priva... more This paper assesses the impact of Nigeriaâ€™s financial liberalisation policy for fostering private sector development. Relevant data relating to the influence of the policy on macro-economic performance and private sector development were obtained from primary and secondary sources. The analyses were descriptive and quantitative in perspective. The findings provided insights on the overall impact of financial liberalisation policy on the private sector. It shows that financial liberalisation has led to increased manufacturing capacity utilisation necessary for economic growth, but needs to be complimented by an increased flow of funds to the private sector for investment in the real sector of the economy. This is because, credits to private sector were not found to have a positive impact on economic growth in Nigeria. This implies that credits to private sector were used for commerce (buying and selling), or diverted to some unproductive ventures, rather than production activities,...

Microfinance banks hold the key to economic growth in developing economies and their financial he... more Microfinance banks hold the key to economic growth in developing economies and their financial health is crucial to achieving this role. One of the factors associated with the financial health of banks is credit risk. Therefore, this studyexamined the effect of credit risk on the financial performance of microfinance banks in Nigeria. Published financial reports of six purposively selected microfinance banks, covering the periods 2012 to 2018 were used as panel datafor the regression model. The panel Ordinary Least Squares (OLS)regression technique was used to estimate the influence of the credit risk variables (proxy by nonperforming loans and loan-loss provisions) on the financial performance (proxy by returns on assets) of the banks.The results of the analysis revealed that non-performing loans has a significant and negative effect on returns on assets (t-stat = -2.4768 and p = 0.02<0.05) while loan-loss provisions has a negative but insignificant effect on returns on assets (...

Journal of Applied Finance and Banking, 2011

The study examines the extent to which banks in Nigeria have performed their intermediation funct... more The study examines the extent to which banks in Nigeria have performed their intermediation functions of deposit mobilization and granting of loans and advances and the effects on their performance. The study employs secondary data obtained from the annual reports and accounts from 2006 to 2011 of seven purposively selected banks out of the 24 existing banks. The study uses descriptive statistics of trend analysis, percentage growth and averages. The banks perform impressively in deposit mobilis ation, as well as in granting loans and advances, despite various socio -cultural and institutional problems inhibiting financial sector development in Nigeria. The results of the study reaffirm that banks with high deposits and loans perform better in term s of profitability than banks with low deposits and loans. Thus, the policy of the government must make savings attractive in order to positively influence the liquidity position of the banks and hence their lending behaviour. The stake -...

This study accessed the effect of government entrepreneurial policies on Nigeria’s economic growt... more This study accessed the effect of government entrepreneurial policies on Nigeria’s economic growth with Ondo State as a case study. Specifically, the study examined the effect of entrepreneurship policies on the productivity of small business owners. Three policy areas considered by the study are credit availability, supply of factor inputs, and training/orientation. Data were collected using questionnaires and responses were analysed with the aid of chi-square statistic. The study revealedthat only twenty-five percent of entrepreneurs have benefitted from government entrepreneurship policies and programmes in Ondo State. The study discovered that meeting the requirements for accessing government entrepreneurship programmes was the most serious difficulty encountered by entrepreneurs in benefiting from government programmes; and that government entrepreneurial policies have been ineffective due mainly to lack of continuity by successive governments. The study found that government p...

Global Journal of Management and Business Research, 2011

The paper compares the performance of loans granted to small and medium enterprises by banks with... more The paper compares the performance of loans granted to small and medium enterprises by banks with that of micro-credit institutions in Nigeria, using Ondo State as a case study. Descriptive statistics were used to analyse the data collected through primary source. The paper reveals that the average repayment rate of 92.93% for banks was higher than the 34.06% for the micro-credit schemes. That is, the banks performed at much higher levels than microcredit schemes. Based on the findings, it was recommended that there should be stern efforts by the credit institutions in screening of loan applications, monitoring of approved loans and enforcing loan contract. Government should provide the basic infrastructural facilities, which unnecessarily increase the cost of doing business in the country.

The paper examines the influence of the lending policies of the financial institutions on loan pe... more The paper examines the influence of the lending policies of the financial institutions on loan performance of small and medium enterprises in Nigeria. The study uses secondary data collected from basic statistic returns of some formal and informal financial institutions. The findings of the research indicate that the lending practices adopted by a financial institution have influence on its loan performance and constitute a critical factor in credit management. The results indicate that the formal financial institutions with strict screening and monitoring procedure records high loan performance. The paper, therefore, suggests a synergy in the formulation of the lending guidelines by the government and lending institutions that will guarantee conducive lending environment and ensure that fund are easily and speedily made available by the lending institutions to the small enterprises, with minimal risk of default

The study examined the relationship between finance and economic growth in Nigeria, and the direc... more The study examined the relationship between finance and economic growth in Nigeria, and the direction of causality. The study made use of data spanning through 1980 – 2015 and various econometric analysis such as Augmented Dickey-Fuller (ADF) unit root test, Johansen Co-integration test, Error Correction Model (ECM) and the Granger causality test. Gross Domestic Product (GDP), proxied for economic growth, was included as the dependent variable, while finance, proxied by Credit to Private Sector (CPS), served as independent variable, with Lending Rate (LR) as a control variable. The results showed a positive, long-run and statistically significant relationship between finance and economic growth. The study also revealed a unidirectional causal relationship from finance to economic growth. It was therefore concluded that government and monetary authorities should develop and implement policies that will improve activities of financial institutions in order to ensure economic growth. I...