Lagos Journal of Banking, Finance and Economic Issues

Cold Chain Management and Firm Performance: A Bibliometric Analysis and Future Research Direction

Olamide. D. AWE — 2024-12-19

The bibliometric analysis explores the field of research on cold chain management and its impact on firm performance, aiming to identify trends, gaps, and future research directions in the field. Leveraging on data from the Web of Science database, 155 articles published between 2015 and 2024 were analysed. The study reveals a growing interest in this area, with an increasing number of publications over the years, particularly, with notable spikes in 2022 and 2023. Key sources such as the Journal of Cleaner Production and Industrial Management and data Systems emerged as influential contributors to the literature. Prominent authors like Li, G. and Zhang, J. have made significant contributions, China leads in scientific production followed by India and the UK. The thematic evolution highlights shifting research streams from demand and logistics in cold chains to include topics like sustainability and impact on cold supply chains. Collaboration networks by countries and authors reveal central players like the USA and China, as well as influential authors such as Zhang, J. and Li, G. co-citation networks, identify seminar works driving the discus, including papers by Saif A and Wang S.Y. Overall, the study underscores the importance of effective cold chain management for firm performance and offers valuable insights for future research, emphasising the need for interdisciplinary collaboration and addressing emerging challenges in the field, such as sustainability and pandemic resilience. This analysis provides a foundation for scholars and practitioners to advance knowledge and practices in cold chain management, thereby enhancing operational efficiency, product quality, and market competitiveness.

THE EFFECT OF EXPORT TRADE ON THE ECONOMIC GROWTH OF NIGERIA

Hanniyi. Omri. TANZAMADO — 2024-12-19

This study investigates the effect of export trade on the economic growth of Nigeria, analyzing secondary data from 1992 to 2022 sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. The Ex-post facto research was used, employing an Autoregressive Distributed Lag (ARDL) model to assess the relationships between oil exports, non-oil exports, export growth rates, and GDP. The findings indicate a positive and significant relationship between oil exports and GDP, demonstrating that increases in oil exports are strongly associated with GDP growth. Despite some of the worst declines in output and trade volume during the pandemic as a result of the lockdown, there was a surge in 2022 due to increased global demand and rising oil prices. Non-oil exports also have a significant positive impact on GDP, highlighting the crucial role of diversifying export sectors to enhance economic growth. Substantial increases in non-oil exports from 2018 to 2019, a slight decline in 2020, and continued growth in subsequent years indicate diversification and increased competitiveness in non-oil sectors. Additionally, the export growth rate positively affects GDP, with higher export growth rates contributing significantly to economic output. The study concluded that export trade contributes to the growth of the Nigerian economy, even though trade was affected significantly by the Covid-19 pandemic, there was a surge in 2022. The study recommends diversifying the export portfolio to reduce dependency on oil exports and mitigate risks associated with commodity price volatility. Also, sectors like agriculture, manufacturing, and services which have significant export potential but are currently underutilized should be promoted.

The Growth Impact of Deposit Money Banks on the Economy of Nigeria

Isaac. A. OGBUJI — 2024-12-19

This study examines the crucial roles of deposit money banks (DMBs) in driving economic growth in Nigeria. The study uses various banking metrics and performance indicators such as Loan to Deposit Ratio (LTD), Credit to the Private Sector (CPS), Liquidity Ratio (LR), Cash Reserve Ratio (CRR), Inflation Rate (INF), Interest Rate (INT), and Monetary Policy Rate (MPR) and the growth rate of Gross domestic product (GGR). Time series data from the CBN statistical bulletin spanning the period of 2008 to 2022 were used and. the Ordinary Least Squares (OLS) regression model was employed to analyze the data gathered. The findings of the study revealed that LTD positively and significantly contributed to economic growth in Nigeria while CPS, INF and INT exhibit a negative impact on growth in Nigeria. However, MPR has positive but insignificant impact on growth. Furthermore, LR and CRR were found to constrain the lending capacity of banks, thereby hindering growth in Nigeria. The study thus recommends that monetary policy frameworks of the CBN be reviewed to reduce reserve requirement of DMBs and that more growth inducing credit risk assessment policies of the CBN be implemented. Based on the banking sector performance parameters used in the study, the study therefore concludes that the roles of DMBs in Nigeria have not had the expected positive impact on growth in the economy, although their impact are significant, since only two out of seven of the parameters used had positive impact on economic growth in Nigeria.

SMES’ COMMITMENT TO SUSTAINABILITY PRACTICES IN NIGERIA: EXAMINING THE ROLE OF TECHNOLOGY-BASED ACCOUNTING SYSTEMS

Mohammed Kayode AJAPE — 2024-12-19

This study investigates the role of technology-based accounting systems in the commitment of SMEs to sustainability practices in Nigeria. We collected data through a questionnaire administered to 387 SME owners and managers in Lagos State, Nigeria. A descriptive and regression analysis was conducted for hypotheses testing using a combination of SPSS and EViews. The study's results indicated that the most critical factors influencing the adoption of a technology-based accounting system are perceived usefulness and technological literacy. In contrast, barriers to adoption include initial cost and complexity. The results further show that adoption heightens the commitment towards more sustainable practices like waste and energy efficiency, which positively impacts sustainability efforts among SMEs in Nigeria. Thus, the study concluded that technology-based accounting systems increase commitment to sustainability, while the impact on sustainability outcomes of energy efficiency is context-specific. The study suggested that SMEs in Nigeria enhance their adoption of technology-based accounting systems for sustainability practices and that regulatory bodies should facilitate access and resources to enhance technological literacy among SMEs.

THE FINANCIAL IMPACT OF BANKS FRAUD ON ECONOMIC GROWTH: AN EMPIRICAL EVIDENCE FROM NIGERIA

SUNDAY EMEKE ONWUEMELE — 2024-12-19

The current study evaluated how bank fraud affected Nigeria's economy monetarily. Information was gathered from the Nigerian National Bank. The ordinary least square (OLS) was used in this study to accomplish its stated goal. Measures of variability like variance and standard deviation were employed along with measures of central tendency like mean, maximum, and minimum in the descriptive statistics. To ascertain the financial impact of banking fraud on the Nigerian economy, the number of fraud and forgery cases, the amount of fraud, the loss to banks, and the number of successful fraud cases were regressed on the main explanatory variables. The results of the study demonstrated the significance of the links and the applicability of the models for insightful analysis and judgment. Once more, it was determined that bank fraud and Nigeria's economic expansion are highly correlated. This study has made an effort to draw attention to the prevalence, scope, and effects of fraud on the Nigerian economy. Banks have serious financial difficulties as a result of fraud. The study concluded that to safeguard their assets and be able to identify and stop fraud and fraudulent actions, banks need to improve their internal control systems. Using every resource at their disposal, Nigerian banks must strengthen their oversight to effectively curb and prevent the prevalence of fraud and fraudulent practices inside the country's banking sector.

Financial Risks and Financial Performance of Insurance Companies in Nigeria

Akeem Bamidele AGBOOLA — 2024-12-19

Though, insurance companies serve as a tool to mitigate the effect of loss or damage to both individuals and organisations, they are also exposed to variety of financial risks which could negatively impact their financial performance. This study investigated the impact of financial risks on the Nigerian insurance companies financial performance. Using an ex-post facto research design, data for twelve years period (2012-2023) for 10 insurance companies was extracted from their audited annual reports. Descriptive and inferential analysis were performed on the extracted data using Eviews 9. The result of the fixed effect model estimation revealed that liquidity risks, credit risks and underwriting risks does not significantly affect return on assets. Thus, the study found that financial risks have no significant impact on the financial performance of insurance companies in Nigeria. It was recommended that insurance companies diversify their investment portfolio by investing their idle funds across different industries and that the National Insurance Commission (NAICOM) should ensure adherence to the provision of section 41 and 25 of the Insurance Act of 2003 which deal with the timely payment of insurance premiums to the insurer and the investing of insurance funds.

Global Economic Uncertainty and Foreign Direct Investment: Evidence from Sub-Saharan Africa

Victor. Olufunso. HAMBOLU — 2024-12-19

Given Africa’s relatively low success in attracting foreign direct investment inflows (FDI) over the past decades, particularly during times of global crises and high uncertainty, this study examined two key areas, which are the impact of global economic uncertainty on FDI inflows and the asymmetric relationship between FDI and global economic uncertainty in Sub-Saharan Africa. Our control variables are trade openness, gross domestic product, capital formation and market size. We used panel Auto-regressive Distribution Lag framework modelling and a panel of 21 countries from Sub-Saharan Africa over the period 1990-2023. Our result suggests an inverse but significant relationship exists between FDI and uncertainty, and the control variables positively intensify against mitigating the phenomenon. Based on the formal test of asymmetry, the outcome further indicates the existence of asymmetry in the long run. Overall, the study advocates the need to manage the extent of global uncertainty on the economic agent, such as FDI in Africa, in order to reduce the excruciating impact.

BRIDGING GENDER GAPS IN TECH ENTREPRENEURSHIP FOR SUSTAINABLE GROWTH IN NIGERIA

Adenike T. EGUNJOBI — 2024-12-19

Entrepreneurship has no perimeter to individual differences (gender, race, colour, and culture). This makes gender equity, a bedrock to flourishing modern economies that desires sustainable inclusive growth. However, statistical evidence shows women have been underrepresented in the tech entrepreneurship space in Nigeria. Hence, this study assessed the gap and how this gap can be bridged using a survey from seven technology-based firms in Lagos state via the use of Multinominal Regression. Result revealed that there is a significant relationship between discipline in education and technology-based skills and the ability to establish or work in a technology-based firms. The study therefore recommends that grants and scholarships in STEM education be given to females which will be used to make policy recommendations that will help reduce gender inequality among tech entrepreneurs in the future.

The Entrepreneur and Financing Dilemma: The Formal and Informal Sectors in Nigeria

Olufemi Olugbenga BADEJO — 2024-12-19

The aim of this study is to investigate the entrepreneur and financing dilemma in the formal and informal sectors in Nigeria, focusing on how access to financial resources, regulatory environments, entrepreneurial backgrounds, social networks, and interest rates influence the success of entrepreneurs. A quantitative research methodology was employed, utilizing a structured questionnaire administered to 384 small and medium-sized enterprise (SME) owners across Nigeria. The questionnaire featured Likert scale items designed to measure the impact of specific variables on business success, and data were analyzed using descriptive statistics and Ordinary Least Squares (OLS) regression. The findings reveal that access to financial resources and a supportive regulatory environment significantly enhance entrepreneurial success. A robust entrepreneurial background and effective social networks positively correlate with business performance. In contrast, high interest rates negatively impact business success, indicating a critical area for economic and financial policy intervention. The study concludes that improving access to financial resources and reforming regulatory frameworks are crucial for fostering entrepreneurial success in Nigeria.

UNDERWRITING PRACTICES AND FINANCIAL PERFORMANCE OF INSURANCE COMPANIES IN NIGERIA

Adesola Hassana OKO-OSI — 2024-12-19

This study examines the extent to which underwriting practices influence the financial performance of insurance companies in Nigeria. This study was conducted using expo-facto research design and cross-sectional analysis. The study tested the extent to which set of independent variables (Underwriting profit, Underwriting expenses, Net premium, Net claim) affects the dependent variable (Profit Before Tax). A sample of ten insurance companies were selected from the pool of registered firms. Secondary data were extracted from the audited annual report of the selected insurance companies, the data covering a period from 2013 to 2022. The statistical tool that was employed in analysing the data is E-VIEWS statistical software 10.0. Analysis was based on descriptive statistics while hypotheses were tested using simple and multiple panel regression analysis. Based on the results obtained from the study, it was revealed that the extent to which underwriting profit influences profitability is 2.29%, thus, it does not significantly affect profitability. The extent to which underwriting expenses and net claim affects profitability are 47.45% and 61.50% respectively, making them significantly affect profitability. Net premium on the other hand significantly contributes to profitability by 66.93%. From the multiple regression analysis result, underwriting practices influences financial performance by 66.33% and the variable that stood out as a major and strong influence is net premium, therefore, insurance companies must ensure they get their rating right as that is a non- negotiable factor for profit. The study recommends that insurance companies should focus on having healthy underwriting practices while diversifying revenue streams. Finally, the study suggests that further studies should make use of qualitative methods and consider the effects of consumer behaviour and preference on underwriting practices and financial performance.

The Interplay of Transformative and Collaborative Marketing to Spur Relationship Quality in Business-to-Business Context

B.H. KAREEM — 2024-12-19

Both transformative and collaborative marketing have been signaled as the future of marketing in Business to Business (B2B) context. While the earlier motivation for both was the yearning for more meaningful interface with customers, the complications occasioned by COVID– 19 pandemic has propelled the need for improve corporate adaptive behaviour and practices. This paper review transformative and collaborative marketing as a potent approaches to spur relationship quality in Business-to-Business (B2B) context. To accomplish the aforementioned objective, in-depth review of scholarly articles and practices relating to transformative and collaborative marketing in the B2B context was carried out. The paper highlights the relevance of transformative and collaborative marketing as a basis for steering relationship quality in B2B setting. This paper contributes to literature and business practices in two important ways: firstly, from a theoretical viewpoint, the paper extends the theoretical generalizability of transformative and collaborative marketing, and secondly, from a managerial perspective, the paper shed light on the practices that underpin relationship quality in B2B context. The paper recommends that business activities and operations in B2B setting should be proactively linked to key performance metrics to accomplish improve benefits from corporate network and enduring relationships.

Forecasting the Nigerian stock exchange insurance index using ARIMA modelling

A. B. SOGUNRO — 2024-12-19

The insurance industry is important to the expansion and stabilization of economies in emerging markets. Stakeholders including investors insurance companies and legislators can anticipate market movements maximize investments and develop successful strategies based on accurate projections by comprehending and forecasting the Insurance Index. Especially in the insurance industry precise forecasts help with risk management resource allocation and profitability. This study fills a gap in the literature regarding insurance-specific forecasts within Nigeria’s financial landscape by examining the Nigerian Insurance Index in particular in contrast to earlier research that frequently concentrates on individual stocks or more general indices like the NSE All-Share Index. To forecast the Nigerian Insurance Index the study finds and validates the best model using the Box-Jenkins ARIMA methodology. Using training data from December 20 2009 to December 25 2022 and testing data from January 1 2023 to March 19 2023 the ARIMA model—which is renowned for identifying short-term time series patterns—is applied to weekly stock prices. After a thorough diagnostic and assessment procedure ARIMA (017) is determined to be the best-fit model offering precise and timely forecasts that are essential for negotiating the intricacies of the Nigerian insurance market. For stakeholders the research offers significant value in the form of accurate predictive insights that help them make data-driven decisions create risk-averse strategies and promote long-term growth in Nigeria’s insurance sector.

SMALL AND MEDIUM ENTERPRISE PERCEPTION OF GOVERNMENT TRANSPARENCY AND TAX COMPLIANCE IN LAGOS STATE: THE MEDIATING ROLE OF TAXPAYERS’ SATISFACTION WITH REVENUE UTILISATION

Obafemi. Rufus. OYEWUNMI — 2024-12-19

Tax compliance is a core subject in Nigeria because of the diminishing revenue accruing to the government coffers, resulting from oil revenue reduction. This study examined the impact of SME taxpayers’ perception of government transparency on tax compliance as mediated by taxpayers’ satisfaction with revenue utilisation in Lagos State, Nigeria. Both primary and secondary data were used in this research. The research design for this study was survey research. From a population of 42,067 SME owners in Lagos State, a total sample of 400 respondents was drawn which necessitated the administration of 400 questionnaire out of which 364 were returned while 342 copies were found usable. The study used both descriptive and inferential statistics to analyse the data collected. The test of the hypothesis was carried out using regression analysis while Process Macro on SPSS was deployed to test the mediating effects of taxpayers’ satisfaction on the relationship between the independent variables on tax compliance. Results of the study showed that government transparency has a significant bearing on taxpayers’ satisfaction with government spending and tax compliance. Finally, the study also revealed that taxpayers’ satisfaction mediated significantly on the relationship between government transparency and tax compliance among Lagos State SME owners. The study recommends that the government of Lagos State be more transparent in the utilisation of public funds.

FINANCIAL PLANNING FOR SALARIED EMPLOYEES AND STRATEGIES FOR TAX SAVINGS IN LAGOS STATE, NIGERIA

Samuel. Obinna. OJOGBO — 2024-12-19

In Nigeria, where the economic landscape is dynamic and the tax system intricate, salaried employees face significant challenges in optimising their financial planning and minimising tax liabilities. This research sheds light on the financial planning for salaried employees and strategies for tax saving in Lagos, Nigeria. Data was collected from 200 respondents using a survey design and convenience sampling. Analytical tools such as descriptive statistics, frequency distribution tables, and correlation analysis were employed. The findings indicate a high financial literacy rate among salaried employees and substantial awareness and use of financial instruments. However, a significant portion of the respondents do not engage in tax-saving measures. The study also reveals a strong positive correlation between income levels and retirement planning practices. The study concludes that there is a pressing need to enhance financial planning education in Nigeria, particularly in terms of using tax-saving instruments. It recommends improving financial literacy among salaried employees and suggests that employers provide tailored retirement planning services based on income levels.

ENTREPRENUERIAL ORINETATION: PATHWAY TO FOSTERING STRATEGIC AGILITY OF SMALL AND MEDIUM SCALE ENTERPISES IN NIGERIA

N.H. EZEAH — 2024-12-19

Small and Medium Scale-SMEs space is continuously undergoing extreme complications arising from multiplicities of factors such as changing government policies, inadequate capital, declining capacity, and managerial know-how to mention a few. Therefore, improve entrepreneurial orientation is a precondition to enhance the capability and skills of entrepreneurs. This paper review entrepreneurial orientation as pathway to foster strategic agility of Small and Medium Scale-SMEs in Nigeria. To achieve the aforementioned objective, this paper review scholarly articles from multiple databases such as Web of Sciences, Science Direct, Scopus, Emerald, and Google Scholar to mention a few. The notion of entrepreneurial orientation has become one of the most well-known concepts in entrepreneurship literature and has been recognized as a form of adaptive behaviour to cope with changing SMEs landscape. The paper noted that both entrepreneurial orientation and strategic agility signaled the basis of organisational resilience to cope with changing business dynamics and volatility. In particular, EO confers strong internal organisational configurations and practices to SMEs, to be more innovative and proactive as a basis of improving strategic agility. The study concluded that by developing the entrepreneurial competences, SMEs will be in a better position to develop capabilities to survive and flourish. Based on the findings, the paper recommends that to enhance strategic agility of SMEs, business managers must continuously improve their entrepreneur through strategic sensitivity, resource fluidity, and leadership unity so as to remain abreast and conversant with changing complications in the SMEs space.

IMPACT OF INFLATION RATE ON THE GROSS PREMIUM INCOME AND PROFIT BEFORE TAX OF NON-LIFE INSURANCE COMPANIES IN NIGERIA

JOHNSON ABIODUN OLADIMEJI — 2024-12-19

This research was carried out to determine the impact of inflation on the non-life insurance companies. Twenty non-life insurance companies’ data that have been in the business for more than twenty years and have their financial accounts statistics up to date were collated. The nonlife insurance companies are considered for this project to reduce the influence of investment return that usually come from life insurance business which give a better performance to their profitability as the inflation often trigger an increase in interest rate. An E-views application was used to determine the level of correlation between inflation and the nonlife insurance performance on gross premium income and profit before tax. From the result of the analysis, a correlation coefficient of 0.83 and 0.72 of inflation rate were recorded against gross premium income and profit before tax respectively. The further result from the least square regression model to test the hypothesis shows a p-value for both gross premium income and profit before tax are below the significant level. It could be adjudged that the inflation has impact on the gross premium income and inflation rate, but its impact is not significant. The study recommends that the nonlife insurance companies should ensure they keep up with their growth trajectory to reduce the impact of the inflation rate further. Consequently, the non-life insurance companies must sustain their growth trajectory through standardization of policy rate. In addition, the government should support the effort of the industry on enforcement of the compulsory insurance policies especially during inflationary period to ensure that the industry record required growth to lessen the inflation’s impact.

AN INTERPLAY BETWEEN HUMAN RESOURCES MANAGEMENT AND PUBLIC SECTOR ORGANIZATIONAL PERFORMANCE

Abdul Aderotimi Olalekan GBADAMOSI — 2024-12-19

As economic development becomes more globalized and science and technology continue to advance, corporate management's focus increasingly shifts from managing technology and equipment to managing employees. Several companies are dependent on their employees to gain advantage in the competitive market. This study examines the impact of human resources management practices on the performance of organization in the public sector with particular reference to Ondo State Ministry of Commerce and Industry. Using a survey research design, a sample of twenty (25) respondents was selected for the study using purposeful sampling technique. Findings of the study revealed that training and development has positive and statistically significant effect on organizational performance with the coefficient 0.406 with p-value 0.000 while recruitment and selection have positive and significant effect on organizational performance with the coefficient 0.462 and p-value 0.000. The study concludes that when human resource management within ministry is aligned properly the employees know what is expected of them and may therefore perform excellently and expectations about behavior and work. The study therefore recommends that there should be coherent and strategic training and development that is planned to match both individual and organizational interests. To ensure that training needs identified is realistic and useful, the needs should be discussed with employees. Also, budgets for training and development should be solely dedicated to such purposes and not diverted to another purpose.

FINTECH AND FINANCIAL INCLUSION: A SYSTEMATIC REVIEW OF CORPORATE PERFORMANCE IN NIGERIA.

Aaron AGBECHE — 2024-12-19

This study systematically reviewed Fintech, financial inclusion and corporate performance in Nigeria. The aim was to explore the impact of Fintech and Financial inclusion on the performance of corporate organizations in Nigeria. Two hundred (200) articles were collected from 4 international journals that were scanned and ranked. These articles include The Review of Assets Pricing Studies, Annual Review of Financial Economics, Financial Management and Accounting and Business Research. The journals' volumes, issues, and articles published in 2021 and 2022 were all identified using the Scimago publication rating systems. The construction of the investigation's data-set took into account the field, SJR/QUATILE/H. Index, year of publication, volume, issue, title, abstract, keywords, and the current issue that each report covered. To facilitate the study, the gathered articles were sorted according to themes to enable simple interpretation of the findings and coding. The study made an empirical finding that, in order to secure a free and prompt movement of funds and related services from one person and institution to another, organisations, financial institutions, and technology companies must collaborate. The study concludes that the performance and growth of any corporate organization depend on the equitable distribution of finance and the role of technology as a medium for easy distribution and inclusion of individuals and organizations into the financial sector in Nigeria. Based on this conclusion, this study recommends that the central bank of Nigeria and other regulatory institutions institute policies and improve its campaign to enhance automated financial transactions, as this is a crucial influence for financial inclusion.

Corporate Governance and Performance of Listed-Nigerian Non-Financial Firms.

Olufisayo BABALOLA — 2024-12-19

Recent developments, including the global financial crisis, prominent corporate scandals, and heightened public concern regarding board performance and executive compensation, have significantly increased attention toward corporate governance. This study examined the relationship between corporate governance and the financial performance of forty-five (45) listed non-financial companies on the Nigeria Exchange Limited (NGX) from 2012 to 2023. The data for the study was mined from the annual reports of the selected firms. The System Generalized Method of Moments (SGMM), which is particularly suited for analysing dynamic panel data, was employed for the data analysis. The findings showed that board size and independence do not significantly affect return on assets. Furthermore, board size has a significant negative effect on enterprise value, while board independence has a significant positive effect on enterprise value. The board ownership exhibited a significant negative impact on both financial performance proxies. In contrast, block ownership demonstrates a significant positive influence on return on assets and enterprise value. The study recommends that the Nigerian government enhance corporate governance regulations to promote block ownership by ensuring transparency, accountability, and protection of shareholder rights. This will encourage major shareholders to prioritise the company's best interests and those of minority shareholders.

The Impact of Ṣukūk on Economic Development in Nigeria

Oyekolade Sodiq OYESANYA — 2024-12-20

This study examines the impact of the Ṣukūk market on Nigeria’s economic development by employing a descriptive and qualitative research methodology. The qualitative data, from publicly-available information, revealed that Ṣukūk has promoted infrastructural development. The study concludes that the Ṣukūk market in Nigeria has significantly enhanced infrastructure, which is a key indicator of economic development. It recommends that regulators increase awareness through sensitisation programmes and that the government expands Ṣukūk-financed infrastructural development, particularly in airports, seaports, energy, and railway systems.

AN ANALYSIS OF POTENTIAL FINANCIAL DISTRESS OF SELECTED NIGERIAN BANKS USING ALTMAN Z-SCORE MODEL

L.A. AJIJOLA — 2024-12-22

The stability of financial institutions is a cornerstone for sustaining economic development, especially in emerging markets like Nigeria. This research aims to analyse the potential financial distress of some selected Nigerian banks using the Altman Z-Score model. The model is a well-established multivariate analytical tool that integrates several key financial ratios to estimate the likelihood of insolvency. The research uses secondary data from three Nigerian commercial banks, covering the period from 2017-2023. Key variables analyzed include Working capital, Retained earnings, Earnings before interest and tax (EBIT), Market value of equity, Sales, Total assets and Total liabilities. Findings indicate that there is significant relationship between the Altman Z- score and the likelihood of bankruptcy and financial distress in Nigerian banks, its predictive efficacy is often influenced by local economic factors, such as fluctuations in regulatory frameworks and broader market conditions. Therefore, the study suggests that the Altman Z-Score model might require adaptation for the Nigerian banking environment to improve its reliability in bankruptcy prediction. This research has significant implications for regulators, investors, and policymakers aiming to enhance the resilience of the financial system by identifying and mitigating risks associated with bank failures.

X-raying Foreign Direct Investment and Innovation Capability of SMEs in Lagos State

Adenike AGBOOLA-FAYEMI — 2024-12-22

In the 21^st century, socio-economic development has largely depends on the success of small and medium enterprises (SMEs). However, the sector has not been able to fully take advantage of FDI to enhance innovation capability of the ventures particularly in developing countries like Nigeria. The study, therefore, leverages dynamic capability theory to x-raying the influence of foreign direct investment on innovation capability of SMEs in Lagos State. A cross-sectional and random sampling techniques were employed to gather data from 382 SME owners/operators in Lagos State from the population of 8,395 out of which 365 were validly filled and returned via snowballing approach representing 95.6% response rate. The primary data were further subjected to statistical analysis using frequency, Pearson Product Moment correlation coefficient, and regression. The study found out that foreign direct investment has significant and positive effects on innovation capability of SMEs in Lagos State in the areas of idea management, service quality delivery, and competiveness. However, the findings of this study demonstrated that FDI has more effect on idea management than service quality delivery and competiveness. The study further proposes that the CEOs or managers in the space of SMEs should engage policymakers to ensure improved infrastructure and resources are in place to support FDI-SMEs intervention arrangement for the purpose of enhancing innovative ideas of the players towards global competiveness.