Papers by Marshal Iwedi PhD
Middle East Research Journal of Economics and Management, 2023
The main purpose of the study was to examine the effect of mobile payment technology on poverty a... more The main purpose of the study was to examine the effect of mobile payment technology on poverty alleviation in Nigeria. The study was carried out in Rivers State of Nigeria. The population of the study consisted of people living in Rivers State of Nigeria. Both multistage and purposive sampling techniques were employed to obtain a sample size of 223 respondents for the study. A structured questionnaire served as the major instrument of data collection in the study. The issue of validity and reliability of the research instrument was also addressed in the study. Data obtained from the field survey were first presented with simple descriptive statistics such as tables, frequencies, graph and percentages. The data were tested with simple regression model using the SPSS software version 25.0. Findings show that mobile payments technology was positively and significantly related to consumption expenditure of the studied respondents in Rivers State of Nigeria. Based on the findings, the study concluded that embracing digital technology is a major tool in the alleviation of poverty particularly in developing country like Nigeria. It was recommended that the Central Bank of Nigeria needs to intensify effort in building am economy that is cashless by come up with effective monetary policies that can influence the use of digital infrastructure.
African Journal of Accounting and Financial Research, 2023
An efficient and sound financial system is crucial
to enhancing sustainable economic growth in an... more An efficient and sound financial system is crucial
to enhancing sustainable economic growth in any country, as it
provides a balance between those who have funds to invest and
those in need of these funds. The creation of credit is a source of
revenue for banks just as it makes up the majority of bank’s
assets. This is however a very risky outcome, as there is the risk
of insolvency if less return is earned from its credit portfolio. The
interest gotten from risk assets contributes significantly to
interest income of banks, and about 85% of banks total income,
thus exposing banking business to credit risk. When banks are
exposed to high credit risk, it could lead to loans becoming nonperforming and putting banks at high risk. Thus, regulatory
policies are established to enable banks and other financial
institutions have enough protection when carrying out their
functions. In lieu of these, this study is carried out to examine the
effect of capital regulatory policies on non-performing loans of
commercial banks in Nigeria. Data on a sample of 15
commercial banks quoted on the Nigerian Exchange Group as at
31st December 2021 were analyzed using the panel regression
models. The results showed a positive and significant effect
between capital regulatory policies and non-performing loans of
commercial banks. The study also showed that banks in Nigeria
were able to survive high rate of non-performing loans because
they were able to take the policies set out by the regulatory
bodies into consideration. Based on the findings, the study
advised the need for commercial banks to strictly adhere to the
capital regulatory policies of government to be able to operate
efficiently and effectively in a harsh economy like Nigeria
This study was set out to examine the effect of capital market performance on economic growth in ... more This study was set out to examine the effect of capital market performance on economic growth in Nigeria. Financial time series data were collected from the annual report and accounts of Securities and Exchange Commission and Central Bank of Nigeria statistical bulletin for the duration of 1990 to 2021. The data was analyze using multiple regression techniques. The results shows that capital market performance variables of market capitalization, all share index, value of transaction and total listing of stock have positive effect on economic growth in Nigeria. The global result shows that 72 percent of the changes in real gross domestic product are explained by joint effects of capital market performance variables. Thus, the study concludes that capital market plays a critical and significant positive effect in enhancing economic growth in Nigeria. We recommend the government should invest more and develop the nation's infrastructure in order to create an enabling environment for business to grow and for productivity and efficiency to thrive which will boost economic activities.
ISRG Journal of Economics, Business & Management (ISRGJEBM, 2023
This study econometrically examines whether financial service accessibility stimulates economic g... more This study econometrically examines whether financial service accessibility stimulates economic growth in Nigeria. To answer this, we collect
data on number of bank branches; automated teller machine usage and the volume of deposit accounts for the duration of 40 years ranging from
1981 to 2021and apply the unit root test, Granger causality, and regression techniques. The regression results reveal that various indicators of
financial service accessibility have substantial positive impact on the economic growth of Nigeria. Based on the findings of Granger causality, we
find a one way causality running from economic growth to financial service accessibility. This implies that as the Nigeria economy grows,
financial service accessibility also increases. Thus, we conclude that financial service accessibility has positive impact on the economic growth in
Nigeria. As such we recommend among others that the federal government should encourage the establishment of low-cost financial centers all
over the country to provide formal banking services to the underserved population in rural areas.
This study examined the effect of financial technology on financial inclusion in Nigeria. This st... more This study examined the effect of financial technology on financial inclusion in Nigeria. This study used quarterly secondary data and all the data were extracted from Central Bank of Nigeria (CBN) Statistical Bulletin (2021) from 2009-2019. In this study, financial technology was proxy using point of sale, automated teller machine, web banking technology and mobile banking technology, while financial inclusion in Nigeria was proxy using deposit ratio. Time series data were analyzed using the vector auto regression (VAR) estimation technique. The results show that web banking technology has a positive and significant effect on financial inclusion in Nigeria, whereas point of sale, automated teller machine and mobile banking technology have a positive but not significant effect on financial inclusion in Nigeria. This suggests that an increase in the usage of financial technology (ATM, POS, WEB and mobile technology) will cause more Nigerians to be financially included. Based on the findings, the study recommends that policymakers should encourage the development of affordable and accessible 3G and 4G mobile networks in order to provide rural and remote customers with better access to mobile banking and other financial technologies. Finally, banks should seek to improve the financial literacy of their customer base by offering regular educational programmes on topics such as money management and financial planning.
This study examines the link between financial sector deepening and economic growth in Nigeria us... more This study examines the link between financial sector deepening and economic growth in Nigeria using the financial time series methodology. Time series data on real gross domestic product (proxy for economic growth), financial sector credit, financial sector liquidity and financial market capitalization (proxy for financial sector deepening) were obtained from Central bank of Nigeria statistical bulletin and Nigeria exchange group fact sheet for 61 years (1960-2021). Descriptive analytical tools were used in analyzing the data. The analyses shows that from 2005-2020 the financial sector credit in Nigeria increased significantly above 20%, this growth is as a result of stability and security attained following the war on terrorism and increase in investments in the agriculture and private sector and also due to post election calm which is leading to the investors' confidence and stability in business prospects thereby expanding the economy leading to more demand to the loan products of the banks in turn increasing financial sector credit base while financial market capitalization trend fluctuated all through 1995 to 2020, this implies unstable trend in Nigerian financial market capitalization and instability of banking industry and financial institutions in Nigeria. Between 2008 and 2010, the Nigerian economy suffered a sharp contraction. This was followed by another period of rapid growth between 2011 and 2014 during which the economy grew at an average rate of 7% per year. In 2016, the Nigerian economy was hit by its first recession in over two decades, with the GDP contracting by 1.6%. The recession was worsened by the sharp decline in global oil prices in 2014.
This paper theoretically examines the effect of Naira redesign on economic growth in Nigeria. The... more This paper theoretically examines the effect of Naira redesign on economic growth in Nigeria. The objective of the study is to determine the economic implications of Naira redesign, reasons for redesigning Naira and the proposed relevance of Naira redesign policy of the Central Bank of Nigeria. The study discovered that the key rationale for currency redesign were to reduce the level of hoarding of money by affluent Nigerians, to mitigate counterfeiting of the currency and to control the amount of money in circulation with the view of controlling the rate of inflation in Nigeria. The study also discovered that there are both positive and negative sides to Naira redesign which includes the fact that Naira redesign could lead to reduction in the level of cash insecurity and money laundering, huge deficit cost to the economy, a rise in price level and the mitigation of counterfeiting in the economy. The study suggests that the redesign of Naira may not be the antidote to the consistent depreciation of the country's currency and the focus of the Central Bank of Nigeria should be the stabilization of Naira. The study concludes that Naira redesign is not the best thing to be done currently in the economy as it could lead to more challenges and so the Government of Nigeria should attend to more pressing issues.
Journal of Advances in Economics and Finance, 2017
The current recession in Nigeria is characterized by dwindling oil revenue caused by drop in glob... more The current recession in Nigeria is characterized by dwindling oil revenue caused by drop in global crude oil price in the market, unfavorable and inconsistent foreign exchange regime, overreliance on imports, high inflation rate and mass job loses, Consequently, the economic recession in Nigeria has led to the following experiences: high cost of living, fall in investment and savings; decline in the activities of stock market, increase in crime rate, high poverty incidence, budget deficit in government spending, high rate of inflation, low domestic production capacity, depreciating value of Naira, scarcity of foreign exchange and high cost of doing business in Nigeria. Furthermore the issues of high interest rates, poor electricity supply, lack of portable water, high cost of transportation and poor state of aggregate infrastructure are resultant effects of the said recession. Some indices reveal that the growth rates in major sectors of the Nigerian economy are either slow or negative. Therefore the declaration by world economics in April 2017 that Nigerian's economy has come out of recession is political and still far from the reality on ground. The indicators of sales manager index (SMI) do not reflect the true position of the Nigeria economy but rather capture the transaction and activities of the political elites who are in the position to spend foreign currency for everything. The study used the misery index (sum of inflation rates and unemployment rates), per capita income or real GDP to determine the economic well being of Nigeria. Our findings show that the average misery index for Nigeria economy for the period under review stood at 29.88% while the average real GDP for Nigeria for the reference period stood at (1.03%). We submit that the acclaim declaration by world economics is not true. We recommend a shift from a mono product economy to a diversified structural based economy driven by agriculture, mining and manufacturing.
This paper examines the linkage between finance companies intermediation functions and economic g... more This paper examines the linkage between finance companies intermediation functions and economic growth in Nigeria. Using an annual time series data spanning the period of 1992 -2014 with the application of the estimation techniques of ordinary least square (OLS), co integration test, alongside granger causality test. The Global statistic results indicates that about 80% of the variations in GDP for the estimation period were captured by the explanatory variables. The relative statistic results showed evidence for strong and positive correlation between NLA and GDP in both short run and long run. Causality runs Bi-directionally between INV and GDP and Uni-directionally between NLA and GDP. The study conclude that financial intermediation functions of finance companies has a prominent role in determining the performance of the Nigeria economy. As such there should be an effective regulatory framework for finance companies operations in Nigeria with the view of improving financial inte...
Green Finance
This study examines business risks and risk management as well as their effects on shareholders’ ... more This study examines business risks and risk management as well as their effects on shareholders’ value using data from selected non-financial firms in the Nigerian Stock Exchange by focusing onreward systems to firm owners through dividend and other earning structures. The study employs panel data for 48 non-financial firms in the Nigerian Stock Exchange for the period 2011 to 2018. The panel data analytical framework is used in the empirical analysis with focus on the Random Effects estimation technique. The results show that in general, the effect of risk on shareholder value depends on the pattern of risk, as well as on the value being considered. The study also finds that increased business risk lowers both dividend per share and earnings per share of the firms. On the other hand, financial risks were shown to have positive impact on shareholder value, especially the value not related to dividend payout. Also, it is found that risk management based on institutional shareholding has the most effective positive impact on shareholder value. It is recommended that enterprise risk management implementation should not just be for compliance purposes among companies in Nigeria, but it must also be for the purposes of pursuing best practices and long-term survival.
This study portrays the financial intermediation functions of microfinance banks in Nigeria from ... more This study portrays the financial intermediation functions of microfinance banks in Nigeria from 1992-2014, econometrically it measures the relationship between the total funds mobilized by MFBS and the allocation of funds to deficits sectors of the economy. In analyzing the data, the researchers applied vector autoregressive and multivariate econometrics tools. The result of the analysis of the correlation showed a clear indication of a weak relationship between the ratio of loans and advances to GDP, ratio of total fund mobilized to GDP, as against the negative nexus between the ratio of total investments to GDP. Furthermore the result shows no evidence of long run equilibrium relationship between the variables under study. The causality test reveals the presence of a unidirectional causality running from RGDP to microfinance bank intermediation variables. Finally, the study recommends that there need to deepen the capacity building strides of NDIC by include both staff and direct...
contemporary journal of banking and finance, 2022
This paper investigates the effect of digitalization of banking services on the Nigeria economy. ... more This paper investigates the effect of digitalization of banking services on the Nigeria economy. Specifically, this was set out to find out if specific digital banking service channels such as use of web pay and mobile pay have an effect on the economy of Nigeria. A 12 year aggregate annual digital banking service data as provided by Central Bank of Nigeria Statistical bulletin was used in this study. A multiple regression procedure was used to determine the significance of the relationship between digital banking service channels and economic performance in Nigeria. The result shows that WEB pay and Mobile Pay all exhibit a strong relationship with Nigeria economic growth. It therefore implies that digitalization of banking service channels are strongly and significantly associated with economic growth in Nigeria. This further reveals that customers in Nigeria are embracing digital methods of banking and therefore it is recommended that banks can still continue to increase awareness about the various digital platforms available to customers to explore. However, in modern digital global market and banking sector, it is recommended that banks should encourage the consumers' use of digital ways of banking including Remita, m-Cash, E-bills pay and NIBSS automated payment services.
LEARNING GATE, 2021
The increasing reliance on public external debt stocks in Africa and other developing countries h... more The increasing reliance on public external debt stocks in Africa and other developing countries has raised the question of debt sustainability, especially in the face of Covid-19, which has forced many counties (both developed and developing) into an unforeseen and unplanned recession. This study contributes to the literature on debt sustainability by examining the effect of public debt on capital formation in Sub-Saharan Africa (SSA) from 2000 to 2008 using the pooled mean group estimation approach. The debt variables considered are external debt stock, debt service on external debt, and interest payment on external debt. Consistent with the overhang theory, our results show that increasing external debt stock and interest payment on external debts only have a marginal impact on capital formation in the short run and exerts a serious negative effect in the long run. Our results also show that debt service burden has a positive effect on gross fixed capital formation in the long run. Therefore, we argue that despite being faced with a huge debt service burden resulting from large external debt stock, SSA countries are not neglecting investments in critical infrastructures needed to drive economic growth. However, we recommend that increasing government revenue base, minimizing economic waste associated with public expenditure, and intensifying negotiations for debt relief may be a plausible way out.
International Journal of Economics and Financial Modelling
This study portrays the financial intermediation functions of microfinance banks in Nigeria from ... more This study portrays the financial intermediation functions of microfinance banks in Nigeria from 1992-2014, econometrically it measures the relationship between the total funds mobilized by MFBS and the allocation of funds to deficits sectors of the economy. In analyzing the data, the researchers applied vector autoregressive and multivariate econometrics tools. The result of the analysis of the correlation showed a clear indication of a weak relationship between the ratio of loans and advances to GDP, ratio of total fund mobilized to GDP, as against the negative nexus between the ratio of total investments to GDP. Furthermore the result shows no evidence of long run equilibrium relationship between the variables under study. The causality test reveals the presence of a unidirectional causality running from RGDP to microfinance bank intermediation variables. Finally, the study recommends that there need to deepen the capacity building strides of NDIC by include both staff and directors of microfinance banks to help bridge the skills gap, the government should provide the infrastructure needed such as power and telecommunications to boost financial inclusion, because technology drives financial innovation, multilateral and bilateral funds be sourced to support the development of microfinance sector, the regulation of microfinance banks in Nigeria be strengthened.
Journal of Economics and Management Sciences
Prior to this time, Nigeria economy was largely described as cash and paper based economy with si... more Prior to this time, Nigeria economy was largely described as cash and paper based economy with significant proportion of the narrow money stock in form of currency outside the banking system. In a bid to drive national development, modernization of payment system and to limit the practice of the use of cash in business transaction in line with the global economy, the Central Bank of Nigeria introduced the cashless policy in January 2012 as a pilot scheme in Lagos. Since the declaration of cashless policy, there has been controversy in the academia with respect to the effects on national development some scholars believes it benefits outweigh it challenges and vice versa. Based on this therefore, this study seeks to assess the effects of cashless economy policy on national development in Nigeria. The study reveals cashless policy has promoted effective and improved monetary policy, efficient and fast payment system, job creations and increased technological infrastructures. The study...
The banking industry have experience tremendous changes ranging from structural changes to techno... more The banking industry have experience tremendous changes ranging from structural changes to technological advances which have turned the industry into self service industry where customer's problems can be solved at any moment despite their location. Since the banking industry is intensely competitive, complex and dynamics due to the fact that all the banks offers same products and services that can easily be copied, as such the only way to differentiate oneself in this complex and dynamic banking environment is to offer same product and service brand with high quality at a cheaper price. However, the study examines how product brands influences customer loyalty in the banking industry in Nigeria. The study adopted the descriptive survey to study twenty two (22) commercial banks in Nigeria. Quarterly data ranging from 2009 through 2014 was collected from the CBN statistical bulletin and the analysis was conducted using mean, median, graphs and pie chart. The results obtained show...
The study investigates the impact of COVID-19 Pandemic, Oil Price Shock on the Nigeria Banking Se... more The study investigates the impact of COVID-19 Pandemic, Oil Price Shock on the Nigeria Banking Sector from the period dated 1st February 2020 to 30 th June, 2020. Monthly data were collected from National Bureau of statistics for a period of six months. Data on confirmed cases of COVID-19, global oil prices, and bank credit to private sector were use as variables for the study. The descriptive and analytical techniques were used to analyze the data. The results reveal that there is positive relationship between COVID-19 confirmed cases and the Nigeria banking sector funding of the economy. Contrarily, the result further reveals that there is a significant negative relationship between global oil price shock and banking sector funding of the Nigeria economy. This means that Nigeria banking sector funding of the economy was negatively impacted by and follows global oil price slump. The study concludes that cumulatively the feats of COVID-19 Pandemic and Oil price shock are determinant variables that have impacted on the ability of the banking sector to fund the Nigeria economy.
Noble International Journal of Economics and Financial Research, 2021
The study examined the effect of foreign exchange crisis on the performance of manufacturing sect... more The study examined the effect of foreign exchange crisis on the performance of manufacturing sector in Nigeria over the period of 35 years ranging from 1985 to 2019. The study proxy foreign exchange crisis by exchange rate of U.S to Nigeria, trade openness and foreign direct investment while performance of manufacturing sector was measured by manufacturing sector gross domestic product. Time series were used and sourced from central bank of Nigeria statistical bulletin for 2019. Ordinary least square (OLS) technique of regression was used to analyze the data. The R-square, T-statistics and F-statistics were used to determine the extents to which the explanatory variables affect the explained variable. The hypotheses formulated were tested at 5% level of significance using t-test. The results reveal that foreign exchange rate has a negative and significant effect on manufacturing sector GDP in Nigeria. Trade openness has a positive and significant effect on manufacturing sector performance while foreign direct investment has a positive and significant effect on manufacturing sector GDP in Nigeria. The study concluded that foreign exchange crisis plays a significant negative role in the performance of manufacturing sector in Nigeria. The study recommended that there should be pursuance of sustainable and stable exchange rate policy and to put in place, measures that will promote greater exchange rate stability.
JOURNAL OF DEVELOPMENT ECONOMICS AND FINANCE, 2020
The paper is on institutional credit and growth nexus of SMEs in Nigeria; the banking sector pers... more The paper is on institutional credit and growth nexus of SMEs in Nigeria; the banking sector perspective. Time series date spanning the period of forty five (45) years was sourced from CBN statistical bulletin for 2019.
greener journal of economic and accountancy , 2020
The study investigates impact of COVID-19 and oil price shock on banking system liquidity in Nige... more The study investigates impact of COVID-19 and oil price shock on banking system liquidity in Nigeria from the period dated 1st June, 2019 to 30th June, 2020. Using confirmed cases of COVID-19, global price of crude oil and deposit liabilities as variables of study. The results reveal that there is a positive significant impact between COVID-19 and changes in banking system liquidity in Nigeria. On the other hand, the results of the followings the of oil price slump reveal that there is a negative significant relationship between oil price and banking system liquidity. Also the results of Johansen co-integration test reveal that the series are co-integrated that is exhibit a long run relationship. The results of the granger causality tests suggest evidence of bidirectional causality flowing from COVID-19 to banking system liquidity vice versa while there is no evidence of causality running from oil price shock to banking system liquidity vice versa. Based on this, the study concludes that COVID-19 and Oil price shocks impacted significantly on banking system liquidity in Nigeria.
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Papers by Marshal Iwedi PhD
to enhancing sustainable economic growth in any country, as it
provides a balance between those who have funds to invest and
those in need of these funds. The creation of credit is a source of
revenue for banks just as it makes up the majority of bank’s
assets. This is however a very risky outcome, as there is the risk
of insolvency if less return is earned from its credit portfolio. The
interest gotten from risk assets contributes significantly to
interest income of banks, and about 85% of banks total income,
thus exposing banking business to credit risk. When banks are
exposed to high credit risk, it could lead to loans becoming nonperforming and putting banks at high risk. Thus, regulatory
policies are established to enable banks and other financial
institutions have enough protection when carrying out their
functions. In lieu of these, this study is carried out to examine the
effect of capital regulatory policies on non-performing loans of
commercial banks in Nigeria. Data on a sample of 15
commercial banks quoted on the Nigerian Exchange Group as at
31st December 2021 were analyzed using the panel regression
models. The results showed a positive and significant effect
between capital regulatory policies and non-performing loans of
commercial banks. The study also showed that banks in Nigeria
were able to survive high rate of non-performing loans because
they were able to take the policies set out by the regulatory
bodies into consideration. Based on the findings, the study
advised the need for commercial banks to strictly adhere to the
capital regulatory policies of government to be able to operate
efficiently and effectively in a harsh economy like Nigeria
data on number of bank branches; automated teller machine usage and the volume of deposit accounts for the duration of 40 years ranging from
1981 to 2021and apply the unit root test, Granger causality, and regression techniques. The regression results reveal that various indicators of
financial service accessibility have substantial positive impact on the economic growth of Nigeria. Based on the findings of Granger causality, we
find a one way causality running from economic growth to financial service accessibility. This implies that as the Nigeria economy grows,
financial service accessibility also increases. Thus, we conclude that financial service accessibility has positive impact on the economic growth in
Nigeria. As such we recommend among others that the federal government should encourage the establishment of low-cost financial centers all
over the country to provide formal banking services to the underserved population in rural areas.
to enhancing sustainable economic growth in any country, as it
provides a balance between those who have funds to invest and
those in need of these funds. The creation of credit is a source of
revenue for banks just as it makes up the majority of bank’s
assets. This is however a very risky outcome, as there is the risk
of insolvency if less return is earned from its credit portfolio. The
interest gotten from risk assets contributes significantly to
interest income of banks, and about 85% of banks total income,
thus exposing banking business to credit risk. When banks are
exposed to high credit risk, it could lead to loans becoming nonperforming and putting banks at high risk. Thus, regulatory
policies are established to enable banks and other financial
institutions have enough protection when carrying out their
functions. In lieu of these, this study is carried out to examine the
effect of capital regulatory policies on non-performing loans of
commercial banks in Nigeria. Data on a sample of 15
commercial banks quoted on the Nigerian Exchange Group as at
31st December 2021 were analyzed using the panel regression
models. The results showed a positive and significant effect
between capital regulatory policies and non-performing loans of
commercial banks. The study also showed that banks in Nigeria
were able to survive high rate of non-performing loans because
they were able to take the policies set out by the regulatory
bodies into consideration. Based on the findings, the study
advised the need for commercial banks to strictly adhere to the
capital regulatory policies of government to be able to operate
efficiently and effectively in a harsh economy like Nigeria
data on number of bank branches; automated teller machine usage and the volume of deposit accounts for the duration of 40 years ranging from
1981 to 2021and apply the unit root test, Granger causality, and regression techniques. The regression results reveal that various indicators of
financial service accessibility have substantial positive impact on the economic growth of Nigeria. Based on the findings of Granger causality, we
find a one way causality running from economic growth to financial service accessibility. This implies that as the Nigeria economy grows,
financial service accessibility also increases. Thus, we conclude that financial service accessibility has positive impact on the economic growth in
Nigeria. As such we recommend among others that the federal government should encourage the establishment of low-cost financial centers all
over the country to provide formal banking services to the underserved population in rural areas.