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Browsing by Author "Lukman Adebayo-Oke Abdulrauf"

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Bank Specific Factors and Loan Repayments Culture of Credit Takers of Microfinance Banks in Kwara State
(Bayero University Journal of Finance, 2024-06-30) Lukman Adebayo-Oke Abdulrauf; Yusuf Olamilekan Quadri; Ismail Jimoh; Sikiru Abdullahi Safura
The loan repayment culture in instrumental to the sustainability and effectiveness of the microfinance banks but overtime, the microfinance banks in Nigeria have been recording high default rates and over-indebtedness from the loans disbursed to credit takers at various categories. Hence, this study investigates the effect of bank specific factors on the loan repayment culture of the credit takers of microfinance banks in Kwara State. Primary data was collected from the loan officers, account officers and marketers of the 33 microfinance banks in Kwara State as at 2023 and multi-stage sampling technique was utilized in selecting appropriate sample size of 160 staff of microfinance banks across all the 3 senatorial districts in Kwara State. OLS regression model was used to analyze the model and the study found that bank specific factors such as funding adequacy, interest rate, credit appraisal process and loan tenure do not impact on the repayment culture of the credit takers of microfinance banks in Kwara State. However, the distance to MFBs appears to be significant indicating the credit takers feel less committed to the repayment of loan due to the distance of the MFBs. This study recommends that microfinance banks should ensure proximity to the credit takers for effective monitoring and loan utilization.
Bank Specific Factors and Loan Repayments Culture of Credit Takers of Microfinance Banks in Kwara State
(Bayero University Journal of Finance, 2024) Lukman Adebayo-Oke Abdulrauf; Yusuf Olamilekan Quadri; Ismail Jimoh; Sikiru Abdullahi Safura
The loan repayment culture in instrumental to the sustainability and effectiveness of the microfinance banks but overtime, the microfinance banks in Nigeria have been recording high default rates and over-indebtedness from the loans disbursed to credit takers at various categories. Hence, this study investigates the effect of bank specific factors on the loan repayment culture of the credit takers of microfinance banks in Kwara State. Primary data was collected from the loan officers, account officers and marketers of the 33 microfinance banks in Kwara State as at 2023 and multi-stage sampling technique was utilized in selecting appropriate sample size of 160 staff of microfinance banks across all the 3 senatorial districts in Kwara State. OLS regression model was used to analyze the model and the study found that bank specific factors such as funding adequacy, interest rate, credit appraisal process and loan tenure do not impact on the repayment culture of the credit takers of microfinance banks in Kwara State. However, the distance to MFBs appears to be significant indicating the credit takers feel less committed to the repayment of loan due to the distance of the MFBs. This study recommends that microfinance banks should ensure proximity to the credit takers for effective monitoring and loan utilization.
BTC price volatility: Fundamentals versus information
(Cogent Business & Management, 2021) Adedeji Daniel Gbadebo; Ahmed Oluwatobi Adekunle; Wole Adedokun; Lukman Adebayo-Oke Abdulrauf; Joseph Akande
This paper offers a plausible response to “what explains the sporadic volatility in the price of Bitcoin?” We hypothesized that market “fundamentals” and “information demands” are key drivers of Bitcoin’s unpredictable price fluctuation. We adopt the transfer-function [Autoregressive Distributed Lag, ARDL] model and its Bounds testing approach to verify how the volatility of the price of Bitcoin responds to its transaction volume, cryptocurrency market capitalisation, world market equity index and Google search. We found the existence of long-run coin tegration relation and observed that all the variables except the equity index positively explain the volatility of Bitcoin price. The result established evidence that market fundamentals drive erratic swing in Bitcoin price than information.
Firm Innovativeness and Environmental Disclosure: Evidence from Nigerian Manufacturing Firms
(Malete Journal of Accounting and Finance, 2023) Mubaraq Sanni; Lukman Adebayo-Oke Abdulrauf; Jamiu Alabere Abdulrasheed
The persistent increase in economic activities of companies, specifically manufacturing companies in Nigeria, has resulted in high levels of outputs, energy consumption, air pollution, and materials used. Environmental disclosures of these issues has become a major concern to communities, employees, shareholders, and other stakeholders and these difficulties drive this study. This study therefore, investigates the effect of the innovativeness and environmental disclosure of all listed manufacturing companies in Nigeria. Specifically, the paper investigates the extent at which firms’ complexity influences environmental disclosure, and how technological infrastructures affect environmental disclosure. With Ex-post factor research design and population of seventy-six (76) listed manufacturing companies, this paper employed Krejcie and Morgan (1970), while 63 companies formed the sample size. However, due to in availability of data and inconsistent listing of the companies, only forty-nine (49) out of the companies were chosen as the sample size determination table spanning across seven (7) sectors. Findings revealed that firms’ complexity and technological infrastructure have negative significant effect on environmental disclosure. Thus, this study recommends that Nigeria Exchange Group (NGX) should establish policy and penalties for companies that have not been adequate disclose information about their firms operating segment and new asset acquisition
Firm-specific Characteristics and International Financial Reporting Standards (IFRS) Compliance among Listed Non-financial Firms in Nigeria
(GOMBE JOURNAL OF ADMINISTRATION AND MANAGEMENT, 2021) Lukman Adebayo-Oke Abdulrauf
The transition from local Generally Accepted Accounting Principles (GAAP) to the celebrated International Financial Reporting Standards (IFRS) is yet to meet the expectation of the various stakeholders in terms of improving the financial statements and detailed disclosure as a result of multiple reports of low compliance level. This study examines the relationship between firm-specific characteristics and IFRS compliance among listed non-financial firms in Nigeria. Data were drawn from the annual reports and accounts of one hundred and thirteen (113) non-financial firms listed on the Nigerian Stock Exchange as of 31st December 2017. Eighty-eight (88) firms were selected using Yamane (1964) statistical formula. Panel regression analysis was used in the analysis and test of hypotheses. Findings revealed that internationalization, industry type, and auditor type have positive and significant effects on IFRS compliance at a 5% level of significance with a p-value of 0.000, 0.003, and 0.020, while firm maturity is not significant. The study concluded that internationalization, auditor’s type, industry type and profitability are the significant firm-specific characteristics affecting IFRS compliance among listed non-financial firms in Nigeria. This study recommended that international accounting standard board should beef up its monitoring of compliance level of listed non-financial firms along with the essential firm-specific characteristics line.
Formal Financing, Country Risks and Livestock Output in Nigeria
(Bayero Journal of Management Sciences, 2024) Lukman Adebayo-Oke Abdulrauf; Sheriff Akanji Ibrahim; Sikiru Abdullahi Safura; Ismail Jimoh
Livestock, which accounts for 30% of employment among Nigeria's rural population, is essential to the country's local economy and efforts to reduce poverty. The growth of the livestock sub sector is hindered, nevertheless, by a range of concerns, such as political, economic, and financial uncertainty, as well as insufficient government budget allocation. In light of this, the purpose of this study is to examine how formal funding and national hazards affect Nigeria's livestock production. Secondary data for the years 1995–2021 were gathered from the International Country Risk Guide (ICRG) and the Central Bank of Nigeria (CBN). Using E-view 9, the study used both descriptive and inferential statistics. Before and after the given model was estimated using Autoregressive Distributive Lag (ARDL), a variety of diagnostic tests were performed. The agricultural guarantee credit scheme funds (AGC) are statistically significant at the 5% level of significance, according to the short term ARDL model. Other variables, such as commercial bank credits (CBC), budgetary allocation to agriculture (BAA), and exchange rate control variable (EXR), are not statistically significant in the short run. The control variable of prime lending rate (PLR, 0.0653) is statistically significant at 5% level of significance. Among other things, the study suggests that banks create customized credit solutions that address the particular requirements of cattle farmers, offer flexible periods for repayment, and form alliances with input suppliers and agriculture specialists.
How Do Investments in Financial Assets Affect the Financial Performance of Pension Firms? Evidence from Nigeria
(Revista Científica Profundidad Construyendo Futuro, 2025) Ginika Nnewogo LINUS; Lukman Adebayo-Oke Abdulrauf; Adedeji Daniel GBADEBO; Joseph Olorunfemi AKANDE
Pension Fund Administrators (PFAs) are essential for the management of pension funds that “guarantee retirees’ comfortability and welfare after life of active service years. The PFAs constantly encounter problems associated with investment decision making and optimization of financial performance of their invested assets classes to provide good returns for the payment of pension benefits. This paper analyses the impact of investment securities on the financial performance of pension funds in Nigeria. We considered a theoretical construct that demonstrate how assets holding drives the financial performance of pension funds. We examine each security invested in the portfolio of the PFAs – money market securities (MMS), federal government securities (FGS), mutual funds (MTF) and private equity fund (PEF) – incentivize return on investment (ROI) of the PFAs. We applied the autoregressive distributive lag on published information of National Pension Commission covering 2007 to 2021. The findings revealed that investment in money market securities have a positive impact on short-term ROI (10.223, p value < 0.01) but a negative impact in the long run (-10.798, p < 0.01). Investment in FG security does not significantly affect ROI in either the short run or long term. Private equity fund investments exhibit no significant short-term impact but positively influence long-term ROI (1.460, p< 0.01). The mutual fund investments negatively impact short-term returns (-1.054, p< 0.01) but have a positive effect on long-term ROI (1.463, p< 0.01). This suggest that the money market securities yield short-term gains, while the private equity and mutual funds indicates a potent long-term investment tool for long-term growth. However, the FG securities appear not to show a significant influence on financial performance. This outcome, evidently, underscores the need for policy and regulations to investment make the PFAs more strategically position to improve retirees’ welfare. We offer that the PFAs should ensure more investment in money market assets with effective switching strategies, to target potential short-term gains, manage long-term risks by promoting mutual funds and private equity funds investments for improved long-term performance and” ensure portfolio diversification to include securities may guarantee sustainable long-term returns.
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.
INSURANCE INTERMEDIATION AND AGRICULTURAL OUTPUT IN NIGERIA
(Ilorin Journal of Finance, 2024) Adedayo Fajimi; Lukman Adebayo-Oke Abdulrauf
Effective insurance intermediation is an essential financial instrument intended to reduce risks, especially in an industry like agriculture that is thought to be extremely volatile. Nigerian agricultural output is threatened by a number of risks, such as market volatility, pest infestations, and climate change, despite the efforts of the country's insurance companies. In light of this, this study looked at how insurance intermediation affected Nigerian agricultural production. Financial records from the Nigerian Agricultural Insurance Corporation and the Central Bank of Nigeria Statistical Bulletin provided time series data from 2005 to 2021. The data was analysed using Ordinary Least Square (OLS) regression as an estimation technique. According to the study, the assets of insurance companies (ICA) have no effect on crop output or fishing (coeffs. 3.16 & -4.89; p-values 0.43 & 0.90), but they have a considerable impact on agriculture, livestock, and forestry (coeffs.7.52, 1.62, and 8.67; p-values 0.00, 0.00, and 0.00). Additionally, all forms of agriculture are unaffected by Agricultural Insurance Premiums (AIP) (coeffs.1.92, 8.78, -3.92, -4.41 & 3.23; p-values 0.43, 0.78, 0.61, 0.19 & 0.80).According to the study's findings, ICA has an impact on agriculture, livestock, and forestry but no influence on crop production or fishing. Not all forms of Nigerian agriculture are impacted by AIP. According to this study, the Federal Government should establish beneficial policies for its agencies, such as the Nigerian Agricultural Insurance Corporation (NAIC), in order to encourage ICA to enhance other agricultural sub-outputs in Nigeria, such as crop production and fishing. In order to influence all agricultural varieties, which will then translate into their contributions to Nigeria's GDP, NAIC must constantly make sure that insurance premiums are reinvested in the agricultural sector.
Modelling the nexus between finance, government revenue, institutional quality and sustainable energy supply in West Africa
(Journal of Economic Structures, 2024) Kayode David Kolawole; Biliqees Ayoola Abdulmumin; Gizem Uzuner; Oluwagbenga Abayomi Seyingbo; Lukman Adebayo-Oke Abdulrauf
The present study examined the relationship between finance, government revenue, institutional quality and sustainable energy supply in West Africa countries over annual frequency period from 2012 to 2020. To achieve the outlined nexus between study variables, the present study leverages on a battery of panel analysis for robust inferences. The econometric estimators employed are panel random effect regression, generalized method of moment technique. Furthermore, panel Granger causality test is utilized to analyze the direction of flow among the variables for the study. Empirical results revealed that financial development is a significant determinant of energy supply in West Africa countries while a negligible effect was reported for institutional quality and sustainable energy supply. Thus, the present study concludes that finance from financial sector is important in ensuring sufficient energy supply. To this end, this study therefore, recommends that incentives should be given to financial institutions that fund energy generation and transmission as financial development is seen to be significant on energy supply.
MORTGAGE FINANCE, MACROECONOMIC FACTORS AND HOUSING DEVELOPMENT IN NIGERIA
(Journal of Economics and Allied Research, 2025) SHERIFF AKANJI IBRAHIM; Lukman Adebayo-Oke Abdulrauf; Yusuf Olamilekan Quadri
Despite the critical role of housing as a component of economic growth and social stability, literatures has shown that housing development in Nigeria can be constrained by lack of longterm financing, as well as macroeconomic factors. This study examines the intricate relationships between mortgage finance, housing development and the interactive effect of macroeconomic factors in Nigeria. This research employs data on housing delivery, mortgage finance and macroeconomic factors, sourced from the Central Bank of Nigeria (CBN) statistical bulletin and Federal Mortgage Bank of Nigeria (FMBN) annual audited report between 2005 to 2022. The research adopt an expos factor and experimental descriptive design. Pre-estimation test such as unit root test and Bound test were employed to test for stationarity and cointegration. Empirical analysis was conducted using the Autoregressive Distributed Lag (ARDL) model. Findings from this study revealed that mortgage loan interaction variable have a very weak positive effect on housing delivery in the long run, with a coefficient of 0.005230 (p-value; 0.0005), mortgage equity’s negative effect was also reduced in the long run, with a coefficient of -0.001611 (p-value; 0.0268). Mortgage interest rate was also found to have a reduced negative effect on housing delivery in the long run, with a coefficient of -0.005316 (pvalue; 0.0003). The research concludes that macroeconomic factors’ interaction with mortgage finance negatively affects changes in housing delivery. Consequently, the research recommends that policymakers implement holistic measures to stabilize the economy, while incentivizing mortgage lending to guarantees access to adequate and affordable housing for Nigeria’s growing population.
NIGERIA AND SME FINANCING EFFORTS: A REVIEW OF THE PAST AND THE PRESENT FOR FUTURE PARADIGM
(Faculty of Management Sciences, University of Ilorin, Nigeria, 2021) Lukman Adebayo-Oke Abdulrauf
The generation of more economic activities by the Small and Medium Enterprises relies heavily on their extent of accessibility to finance. Laying credence to this, SMEs’ financing has been at the forefront of development agenda in Nigeria. The chapter reviews the past and the present SMEs financing efforts of both private sector-led and public sector-led institutions in Nigeria with a view to charting the course for future policy improvement.
Risk Management and Bank Profitability: Evidence from Nigerian Deposit Money Banks
(Malete Journal of Accounting and Finance, 2021) Lukman Adebayo-Oke Abdulrauf
Risk management issues in the banking sector do not only have greater impact on bank profitability but also on national economic growth and the general business development. The bank’s motivation for risk management comes from those risks which can lead to underperformance. This study seeks to assess the impact of risk management on banks profitability in Nigeria. To achieve this, the study covered 6 years ranging from 2012-2017. Also, twelve deposit money banks were chosen as sample from the whole Nigeria DMBs. Audited annual financial statements of the selected banks for the years were used in obtaining data for the purpose of this research. The independent variable which is Risk Management is proxied as Non-Performing Loan Ratio (NPLR), Capital Adequacy Ratio (CAR) and Loan-to-Deposit (LTD) while the dependent variable which is profitability was measured as return on assets (ROA). Using panel random effects regression, the results revealed that non-performing loan ratio has a negative effect and it is statistically significant at 5% on banks profitability, and Loan-to-Deposit ratio is also statistically significant at 5% and have positive effects on banks’ profitability while capital adequacy ratio is insignificant. The study concluded that risk management in terms of non-performing loan ratio and loan-to-deposit ratio has significant effect on banks’ profitability. The study therefore recommended that the banks’ management should do more in the area of controlling the rate at which subprime loans are given out, in order to mitigate the risk of future loss on non-performing loan. Also, banks should further implement more policies that support increased lending to customers, especially the more credit worthy ones, in order to increase returns and performance.
Signalling Behaviour and Bank Provisioning Policies in Nigeria: The Conditional Effect of the IFRS Adoption and Solvency Risk
(TRENDS ECONOMICS AND MANAGEMENT, 2021) Abdulai Agbaje Salami; Ahmad Bukola Uthman; Lukman Adebayo-Oke Abdulrauf
Purpose of the article: Based on the propositions of the signalling hypothesis and prospect theory, this study examined the extent of attempt by Nigerian deposit money banks (DMBs) to solve the issue of adverse selection via signalling their financial prospects using loan loss provisions (LLPs). The empirical test was subject to the DMBs’ riskiness and changes in the accounting rule given failure of a number DMBs and the adoption of the International Financial Reporting Standards (IFRSs) respectively in Nigeria in the recent past. Methodology: Bank-level unbalanced panel datasets of a sample 16 DMBs, which are related to the variables of the study, were hand-extracted from their annual reports and account between 2007 and 2017. The analysis was conducted using the Prais-Winsten regression correlated with panel corrected standard errors (PCSE-PW) owing to the presence of heteroscedastic and autocorrelated residuals in the study’s regression models. Scientific aim: The study examined the relationship between LLPs and one-year-ahead changes in earnings before taxes and LLPs to establish whether Nigerian DMBs signal their financial strength via LLPs. Findings: The study largely found that Nigerian DMBs, regardless of accounting regime and risk of insolvency, do not use LLPs to signal their financial strength. However, where the evidence of signalling via LLPs was evident the coefficient of earnings signalling was insignificant, where it was significant signalling was achievable via discretionary LLPs (DLLP) rather than actual LLPs (TLLP) suggesting manipulative provisioning in the use of LLPs to signal. Conclusions: The study’s findings included empirical communication alerts to the regulators and Nigerian DMBs on the need for improvement in earnings signalling, as the present scenario may be interpreted as a sign of a non-going concern by analytical stakeholders. Limits of research: The generalisation of the study’s findings may be limited by the focus on one regime (IAS 39) of IFRS loan loss reporting but mitigated by the partial implementation of the second regime (IFRS 9) for the first four years in the country.
The Correlation of Investment Securities and the Returns of Pension Fund Administrators in an Emerging Economy
(Ilomata International Journal of Tax and Accounting, 2024) Lukman Adebayo-Oke Abdulrauf; Adedeji Daniel Gbadebo
The pension fund administrators (PFAs) are saddled with the responsibility to manage and invest pension contributions on behalf of employees through investment in securities and the earnings from the investments. The PFAs are constantly faced with the problem of optimizing financial performance of assets to investin. The paper aims to access the connection between financial assets that the PFAs in Nigeria invest in and their investment returns. In line with theory, econometricsoffers correlationframeworks as a simple and efficient way to resolve and understand the relationship between financial assets and financial returns. We applied a Pairwise correlation approach to published information from the National Pension Commission (PENCOM) from 2007 to 2021to evaluate the link between four financial assets and investment returns. We find that two of the securities –money market securitiesand mutual funds –have a positive relationship with the PFAs’ returns, and the other two considered –the federal government securities and private equity funds –have a negative relationship with the PFAs’ returns. Only the correlation between the growth of investment return and investment in money market securities is moderate and significant. In contrast, othersare low and insignificant, thus leading us to refute the first hypothesis, maintaining others. The study offers insights into factors that affect their financial performance and investment strategies to be put in place to optimize return,which in turn will benefit their contributors. The outcome provides policymakers and regulators with a comprehensive overview of all investment securities and administrators' performance.

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