Nwanneka J. Modebe

Bio: Nwanneka J. Modebe is an academic researcher from University of Nigeria, Nsukka. The author has contributed to research in topics: Exchange rate & Gross fixed capital formation. The author has an hindex of 7, co-authored 26 publications receiving 140 citations.

Financial Inclusion as a Strategy for Enhanced Economic Growth and Development

Abstract: The paper investigates the effect of financial inclusion on economic growth and development in Nigeria over the period 1986-2015 using the Ordinary Least Squares technique. Financial inclusion was measured in the study using loan to deposit ratio, financial deepening indicators, loan to rural areas, and branch network. Measures of financial deepening adopted in the study are ratios of private sector credit to GDP and broad money supply to GDP. Economic growth was proxied as growth in GDP over successive periods while per capita income was adopted as a measure of poverty, hence an index of development. The study shows that (i) credit delivery to the private sector has not significantly supported economic growth in Nigeria (ii) financial inclusion has promoted poverty alleviation in Nigeria through rural credit delivery. The monetary authorities should deepen financial inclusion efforts through enhanced credit delivery to the private sector as well as strengthen the regulatory framework in order to ensure efficient and effective resource allocation and utilization.

Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria:

Abstract: The goal of this study is to assess the industry effects of monetary policy transmission channels in Nigeria within the period 1981-2014. Techniques of analysis employed in the study are the Johans...

The (ab)use of import duty waivers in Nigeria

Abstract: An increasingly popular but disturbing method of misappropriating government revenue in Nigeria is the practice of granting all manner of indiscriminate waivers of tariffs and duties on imported commodities under the directive of the Presidency. This paper critiques the law, use and abuse of duty waivers in Nigeria. It argues that although the President, on the advice of the Tariff Council, has powers to grant waivers, such powers are neither supposed to be granted indiscriminately nor in secret. The granting of indiscriminate waivers to individual operators in an industry rather than to the entire industry distorts national economic and industrial development which is normally the very essence of granting such waivers. The paper also raises questions about the implications of the granting of indiscriminate duty waivers by the Presidency for fiscal relationships in a federal state.

Repositioning Insurance Industry for Operational Efficiency: The Nigerian Case

Abstract: This paper reviews the operational efficiency of the Nigeria insurance industry from a historical perspective. Our paper traced the origin of insurance in Nigeria to 1918, when marine insurance was dominant in the economy. The paper shows that despite the long history of insurance industry in Nigeria, the sector’s operational efficiency has remained sub-optimal. This, the paper attributed to factors such as unfavourable macroeconomic environment, poor regulatory framework, market suspicion of insurance companies among others. Our paper argues that these challenges are not beyond redemption and recommends strategies to attain operational efficiency in the Nigerian insurance industry.

Impact of Capital Market Development on the Growth of the Nigerian Economy

Abstract: This paper investigates the relationship between capital market development and economic growth using data on GDP (proxy for economic growth), market capitalization ratio, value traded ratio and stock market turnover ratio (proxies for capital market development) over the period 1981-2014. Employing the econometric methodology of the vector error correction model, the study shows that in the short-run, market capitalization ratio and turnover ratio have significant negative effect on aggregate national output (GDP). The study also shows positive effect of value traded ratio as well as negative effect of inflation rate on GDP though not significant. The long-run estimate shows that all the exogenous variables have significant negative impact on GDP and that changes in market capitalization ratio, value traded ratio and turnover ratio produce more than proportionate changes in GDP. With an adjustment speed of about 91.12 per cent, the model presents an inherent capacity to overcome short-run disequilibrium. The Granger causality test shows evidence of causal impact of market capitalization ratio, value traded ratio and turnover ratio on aggregate national output. The study further shows uni-directional causality from GDP to inflation. The paper established therefore that stock market development constitutes a significant determinant of economic growth in Nigeria.

Financial inclusion and poverty reduction : evidence from small scale agricultural sector in Manicaland Province of Zimbabwe

Abstract: .................................................................................................. I ACKNOWLEDGEMENTS .............................................................................. V DEDICATION ............................................................................................ VI DECLARATION ........................................................................................ VII TABLE OF CONTENTS ............................................................................ VIII LIST OF ABBREVIATIONS........................................................................ XX LIST OF FIGURES ............................................................................... XXIII LIST OF TABLES ................................................................................... XXVI CHAPTER 1 ................................................................................................

Do mobile phones, economic growth, bank competition and stability matter for financial inclusion in Africa?

Abstract: The lower levels of financial inclusion and severe financial inclusion gaps in Africa motivates the investigation of whether mobile phones, economic growth, bank competition and stability matter fo...

Financial inclusion-environmental degradation nexus in OIC countries: new evidence from environmental Kuznets curve using DCCE approach.

Abstract: The disastrous consequences of climate change for human life and environmental sustainability have drawn worldwide attention. Increased global warming is attributed to anthropogenic greenhouse gas (GHG) emissions, biodiversity loss, and deforestation due to industrial output and huge consumption of fossil fuels. Financial inclusion can be acted as an adaptation or a mitigation measure for environmental degradation. This study analyzed the impact of financial inclusion on environmental degradation in OIC countries for the period 2004–2018. A novel approach, “Dynamic Common Correlated Effects (DCCE)” is used to tackle the problem of heterogeneity and cross-sectional dependence (CSD). Various GHG emissions along with deforestation and ecological footprint are used as indicators of environmental degradation. Long-run estimation confirms that financial inclusion is positively and significantly linked with CO2 emission, CH4 emission, and deforestation while negatively correlated with ecological footprint and N2O emission in overall and higher-income OIC economies. An inverted U-shaped environmental Kuznets curve (EKC) is validated when ecological footprint, CO2, and CH4 are used in all panels of OIC countries. An inverted U-shaped EKC is also observed for deforestation in lower-income and overall OIC countries. In the case of N2O emission, however, a U-shaped EKC appears in lower-income and overall OIC countries. It is suggested that the governments of OIC countries should continue to have easy access to financial services and maintain sustainable use of forests and biocapacity management to address environmental challenges.

The Determinants of Capital Structure of Nigerian Quoted Firms

Abstract: Empirical work on capital structure in emerging markets like Nigeria has been limited and met with low explanatory power. This study investigates the determinants of capital structure in Nigeria. Unlike prior work, the study investigates capital structure determinants along five dimensions namely: firm-specific and industry factors; taxes; non-financial stakeholders; supply-side factors; and the maturity structure of corporate liabilities. The population of study comprises all non-financial corporations quoted on the Nigerian Stock Exchange (NSE) for the period 1999-2014 out of which 50 companies that met the minimum data criteria were utilized. Using panel data least squares regression, modified to weighted (cross section- and period-) models, the research documents the following findings. First, the factors that exert positive influence on corporate borrowing include asset intangibility, firm age and expected inflation while those factors that exert negative influence on capital structure include asset tangibility, growth, size, volatility of earnings, profitability, liquidity, dividend-paying status and uniqueness of industry. Second, there is weak evidence that tax considerations are crucial in capital structure choice. The results were, at best, mixed with respect to the portability of pecking order, target adjustment, trade-off, agency and market conditions models. The pecking order beats the trade-off model based on the signs of coefficients of firm-specific characteristics including the marginal tax rate. In order words, asymmetric information explains why smaller, less profitable, less liquid firms with more risky intangible assets and which are low dividend-payers end up relying primarily on debt financing and vice versa. The study also supports the target adjustment and market conditions models. Third, this study provides new evidence that financing decisions interact with non-financial stakeholders. Specifically, the results support the use of capital structure as a possible bargaining variable by employees, suppliers and customers. Highly levered firms exert pressure on themselves to treat non-financial stakeholders decently. Fourth, there is strong evidence in support of supply-side of capital as leverage increases with debt market access but behaves counter-cyclically as it declines with equity market conditions, term spread and GDP growth rate. The study recommends the use of leases for financially- and collateral-constrained firms, non-debt tax shelters for corporate tax planning, government simplification of tax administration, cautious use of debt for industries with production technologies that place NFS at risk and macroeconomic policies that promote prudent use of debt and debt maturity.