Browsing by Author "Lukman Adebayo-Oke Abdulrauf"
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- ItemBank 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 SafuraThe 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.
- ItemBank 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 SafuraThe 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.
- ItemBTC price volatility: Fundamentals versus information(Cogent Business & Management, 2021) Adedeji Daniel Gbadebo; Ahmed Oluwatobi Adekunle; Wole Adedokun; Lukman Adebayo-Oke Abdulrauf; Joseph AkandeThis 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.
- ItemFirm-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 AbdulraufThe 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.
- ItemFormal 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 JimohLivestock, 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.
- ItemHow 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.
- ItemModelling 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 AbdulraufThe 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.
- ItemMORTGAGE FINANCE, MACROECONOMIC FACTORS AND HOUSING DEVELOPMENT IN NIGERIA(Journal of Economics and Allied Research, 2025) SHERIFF AKANJI IBRAHIM; Lukman Adebayo-Oke Abdulrauf; Yusuf Olamilekan QuadriDespite 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.
- ItemSignalling 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 AbdulraufPurpose 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.
- ItemThe 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 GbadeboThe 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.