FACULTY OF ECONOMICS
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Item Portfolio Management and Performance of Deposit Money Banks in Nigeria (1990–2020)(Elsevier Ltd, 2025) Fajinmi, C.; Onwuka, I. O.; Ayeni, E.There have been a renewed focus on portfolio management of deposit money banks since the global financial crisis of 2007–09. This renewed focus is based on the understanding that an efficient portfolio management reduces risks and loss associated with uncertainty of investment returns which may impact on the performance of banks. In this study, we investigated the connection between portfolio management and performance of deposit money banks in Nigeria. The study essentially sought to ascertain whether portfolio management has predictive value for the out-of-sample predictability of profitability of deposit money banks in Nigeria. The Markowitz portfolio theory underpin the study while time series data on deposit money banks’ liquidity, financial assets, foreign portfolio asset, deposit mix, and private sector concentration were utilized for the analysis. The time series spanned from 1990 to 2020 based on data availability. To increase the robustness of the result, the entire 24 DMBs were included in the study. The unit root test and bound cointegration test were employed to check times series behaviour of the variables. The Autoregressive Distributed Lag (ARDL) was used to estimate both the short-run and long-run dynamics and rapid correction to long-run equilibrium. Our findings reveal that portfolio management and its variants had significant effect on the profit after tax (PAT), return on investment (ROI), asset quality (ASQ), and capital adequacy (CA) of deposit money banks in Nigeria.Item Impact of covid-19 pandemic on microfinance banks in Nigeria(Savings and Development, 2022) Onwuka, I. O.; Nwadibu, A.; Okwara, U. K.The outbreak of the novel coronavirus (COVID-19) has created existential challenges to the Nigerian economy especially the microcredit delivery system and microfinance institutions that serve the poor and vulnerable groups in the country. The study investigated the impact of Covid-19 pandemic and the government mandated lockdown on the activities of microfinance banks (MFBs) in Nigeria using the exploratory and content analytical technique. The study found that all the key performance indicators (KFIs) of MFBs have been negatively affected by the Covid-19 pandemic. In particular, the study found that the asset quality of MFBs has deteriorated with high level of portfolio at risk (PAR). The pandemic has also affected the capital adequacy of MFBs especially the state and unit MFBs due to increased and large provisioning for loan losses. In consequence, the shareholders’ funds for most of the state and unit MFBs have been seriously eroded and impaired by losses. Among others, the study recommended for an urgent regulatory forbearance and injection of liquidity in the sector by the Central Bank of Nigeria through a bail-out and to enlarge the CBN discount window to accommodate eligible MFBs to discount facilities that are hitherto only available to deposit money banks (DMBs).Item Microcredit and poverty alleviation in Nigeria in COVID-19 pandemic(Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP), 2021) Onwuka, I. O.Microcredit is a financial service whose importance is often understated. When lack of access to microcredit is exacerbated by a public health emergency such as the COVID-19 pandemic, its real significance as an essential service in poverty alleviation becomes more apparent. The outbreak and spread of the novel coronavirus (COVID-19) has led to dramatic transformations of every sector of the Nigerian society including microcredit delivery system, where formal and informal actors co-exist often in an uneasy relationship. Unfortunately, strategies for inclusive microcredit delivery before and during the COVID-19 pandemic are lacking in Nigeria, fuelling the further exclusion of informal sector in microcredit governance and policy process in Nigeria. The paper reviews the state of the COVID-19 pandemic in Nigeria and identifies policy gaps in microcredit delivery and governance mechanism. The study also highlights the linkages between COVID-19 and microcredit in poverty alleviation with a view to catalyzing increased and inclusive access to microcredit and sustainability policy in Nigeria. It is argued that acknowledging the role of microcredit in informal economy and poverty alleviation is the critical first step towards framing a sustainable microcredit policy in which primary stakeholders are involved.