Browsing by Author "Sodiq Olaiwola Jimoh"

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    IMPACT OF EXCHANGE RATE ON DOMESTIC CREDIT: EVIDENCE FROM NIGERIA
    (Faculty of Management and Social Sciences, Kwara State University, Malete, Nigeria, 2024-05-23) Yusuf Toyin Yusuf; Sodiq Olaiwola Jimoh; Felix Gbenga Olaifa; Fatai Akosile
    This study investigates the relationship between exchange rate fluctuations and domestic credit dynamics in Nigeria. Employing non-linear autoregressive distributed lag (NARDL) and linear autoregressive distributed lag (ARDL) models, this research explores the effects of Real Effective Exchange Rate (RER) on Domestic Credit (DOD) over a significant period. The findings of the non-linear ARDL analysis reveal a notable positive short-run effect of RER on DOD. Specifically, the depreciation of the naira appears to discourage market participants from assuming higher risks, resulting in a decrease in credit volumes. Conversely, an appreciation of the naira encourages market participants to take greater risks, leading toan improvement in credit volumes. However, the linear ARDL analysis demonstrates a contrasting negative effect of RER on DOD. In the context of the linear ARDL results, the appreciation of the naira seemingly discourages market participants from taking increased risks, consequently causing a deterioration in credit volumes. Based on the findings, a key policy recommendation emerges. Policymakers are advised to consider devaluing the naira to dissuade market participants from assuming higher risks, thereby potentially reducing credit volumes in the short run. This recommendation aims to address the observed dynamics between exchange rate movements and credit volumes, offering a strategic approach to influence market behaviors and credit outcomes in Nigeria's economic landscape.
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    Informal Sector and Financial Development in Sub-Saharan Africa
    (Pakistan Journal of Humanities and Social Sciences, 2023-12-28) Sodiq Olaiwola Jimoh; Rashidat Sumbola Akande; Hauwah AbdulKareem; Odunayo Bidemi Jimoh; Taofeekat Temitope Sulaimon; Yusuf Toyin Yusuf; Israel Adegboye; Aminat Mama Usman
    Since a persistent increase is seen in the size of the informal sector and its continuous coexistence alongside the formal sector and institutional development, this study empirically examines the effect of informal sector size on the financial development in Sub-Saharan Africa for the period 1996-2019. The study represents financial market development by the financial market depth, which is regressed against informal sector size, growth rate of GDP, interest rate, trade openness, and institutional quality index. The study relied on the estimates of the Discroll-Kraay and IV-2LS. Results indicate that informality repressed financial development, while trade openness, growth rate of gross domestic product, interest rate, and institutional quality have a positive impact on financial development. It is therefore recommended for policymakers to reduce the size of informality to improve the financial sector.
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    Leaving No One Behind: Examining the effect of financial, gender, and digital inclusion on sustainable development
    (Wiley, 2024-10-14) Hauwah K. K. Abdulkareem; Sodiq Olaiwola Jimoh; Taofeekat Temitope Nofiu; Rashidat Sumbola Akande
    This paper analyzes the effects of different dimensions of inclusion toward the attainment of sustainable development in 33 sub-Saharan African (SSA) countries from the financial, gender, and technological perspectives between 2004 and 2021. This study employs the System Generalized Method of Moments given its ability to address potential endogeneity issues, capture the dynamic nature of relationships, and mitigate potential biases while adopting the Driscoll–Kraay standard errors for robustness check. Findings reveal two of the three measures of financial inclusion wield positive and significant effects on sustainable development while credit to the private sector is found to be detrimental. Also, all three measures of gender inclusion (female employment to population, female labor force participation rate, and the number of women holding a seat in parliament) positively influence sustainable development. Contrastingly, the coefficients of digital inclusion (mobile phone sub scription and internet usage) were revealed to be harmful to sustainable development in SSA. This paper advocates for increased financial inclusion through financial liter acy, customized financial products, and gender-sensitive financial services. Pertinent are gender policies that address gender norms in addition to the enactment, avowed commitment, and support for affirmative action toward closing gender gaps across all sectors and at all levels.