Browsing by Author "Joseph Olorunfemi Akande"

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    AN INVESTIGATION OF THE IMPACT OF FINANCIAL INCLUSION ON ECONOMIC GROWTH: EVIDENCE FROM AFRICAN COUNTRIES
    (Asian Economic and Financial Review, 2022) Muri Wole ADEDOKUN; Ahmed Oluwatobi Adekunle; Joseph Olorunfemi Akande
    Financial inclusion has been recognized as a development policy priority and a key to economic growth in developing economies. Essentially, most Sub-Saharan African (SSA) countries have witnessed unstable economic growth over the last three decades. Financial inclusiveness is fundamental to sustainable growth for any economy. This study investigates the effects of financial inclusion on 41 Sub-Saharan African countries from 2004–2019, employing the generalized method of moments (GMM) method and a Granger causality analysis. The results show a positive relationship between financial inclusion and economic growth. The non-causality tests revealed bi-directional causality between the variables for the whole region and low-income and lower-middle-income countries. Furthermore, a unidirectional causality runs from financial inclusion to economic growth in upper-middle-income countries. The study concluded that financial inclusion positively affects the economic growth of SSA and recommends that policies and interventions be redefined in the financial system to achieve steady economic growth and sustainability
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    How Does Financial Risk Management Impact Financial Performance of Microfinance Banks?
    (ACTA UNIVERSITATIS DANUBIUS OECONOMICA, 2024) Lukman Adebayo-Oke Abdulrauf; Sherifdeen Adebola Rabiu; Joseph Olorunfemi Akande; Adedeji Daniel Gbadebo
    : Microfinance banks (MFBs) in Nigeria play an important role of delivering financial services to the underserved population and low-income individuals. MFBs are exposed to various financial risks, including borrower defaults and liquidity management, posing serious survival threats. We apply the autoregressive distributive lag (ARDL) regression, on published data from 1993 to 2022, to confirm how financial risk management of the MFBs in Nigeria impacts their financial performance. The finding from the short run of the main (ROA) estimation identifies that except for the loan-deposit magnitude, which is insignificant, the coefficients on capital adequacy strength, risk asset quality, liquidity strength and loan loss provision are significant. For the long run, capital adequacy, liquidity, risk asset quality and loan loss provision have significant coefficient while loan-deposit magnitude has an insignificant coefficient. The lag term of error correction is negative (-1.60) and significant, implying that the model would converge to equilibrium upon any perturbation. Similar results are evident when the return on equity is considered as a measure of financial performance to verify the sensitivity of the outcomes. This suggests the estimation is not sensitive to any performance measure used. The findings underscore the importance of capital adequacy and liquidity strength for improving the financial performance as well as the detrimental impact of risk asset quality and high loan loss provisions on the MFBs. To ensure enhanced financial performance, sustainability and effectiveness, we recommend offer that policy markets should different regulatory measures including recapitalization, reshaping of risk asset holdings, regulating loan loss provisions, clarifying regulations on loan-deposit ratios, and regulating liquidity levels.
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    Modelling Aggregate Energy Consumption for Growth in Nigeria
    (International Journal of Energy Economics and Policy, 2022) Ahmed Oluwatobi Adekunle; Biliqees Ayoola Abdulmumin; Joseph Olorunfemi Akande; Kehinde Gabriel Ajose
    The principal aims of this study is to modelled the connection of Aggregate energy consumption for growth in Nigeria. Annual time series data is used, ranging from 1985 to 2020. The study employed ARDL, Toda and Yamamoto approach in examining connection between the variables. The ARDL results with additional stability test shows that short and long run connection exists among the examined variables. The Toda and Yamamoto test reveals unidirectional causalities running among the variables. Furthermore, change in GDP stimulate further consumption of energy in Nigeria.
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    On Export and Economic Growth: A Comparative Analysis of Selected West African Countries
    (International Journal of Economics and Financial Issues, 2022) Ahmed Oluwatobi Adekunle; Adedeji Daniel Gbadebo; Joseph Olorunfemi Akande
    The effect of export on economic growth has attracted much attention amongst researchers and practitioners. Conventional theories posit that output growth is attainable if countries produce and export the goods in which they have comparative advantages or are resourcefully endowed. Available evidence, however, sometimes present negative or inconclusive results on export-growth nexus. The study applied the panel cointegration and panel corrected standard errors (PCSE) on a sample of thirteen selected West African countries for the period 1990-2018. The result shows existence of cointegration amongst the variables. The PCSE results indicate positive long run relationships between export and growth, on one hand and exchange rate and growth, on the other. The study recommends measures to improve trade and attain growth in region such as the complete removal all forms of export restrictions and tariff on primary products, as well as administrative tax exemptions for domestic firms that engage in production of export goods