Siba Dayyabu

The continued volatility of the Naira / USD exchange rate has attracted the attention of Nigeria's Central Bank (CBN) to engage in the foreign exchange market. This study aims to examine the long-run relationship between interventions on the foreign exchange market and the Naira / USD exchange rate. Regarding four variables, the analysis uses annual data, namely the: Naira / USD exchange rate, money supply, net foreign assets, and interest rates from 1980-2018. This research also used non-linear unit root, cointegration and causality testing approach. The non-linear unit root tests for stationarity by KSS and Breitung showed that the variables employed were stationary at the first difference. Besides, nonlinear Breitung cointegration tests showed the existence of the long-term relationship between foreign market interventions and the Naira / USD

This study investigates the impact of the macroeconomic variables on stock market development in Nigeria during the period 1970- 2013. To estimate the relationship, the study used unit root tests, lag selection criterion, F-bound test, ARDL short-run and long-run test, and VECM-Granger causality test. The result showed that the error correction terms contribute in explaining the changes in all the variables. Based on estimated coefficients and t-statistics, it is found that foreign direct investment, consumer price index, interest rate and oil price have a significant positive influence on stock market development in the long-run. Money supply has a significant negative influence on the stock market development. The causality test indicated the presence of short-run and long-run unidirectional causality running from foreign direct investment, consumer prices index, oil prices to the stock market development. A unidirectional causality also runs from interest rate to money supply and...

The instability in the value of naira have made the Central Bank of Nigeria (CBN) a regular actor in the foreign exchange market (FEM) in its efforts to stabilize the value of Naira and counter the disorderly behavior of the market. This paper examines the effectiveness of the CBN’s intervention operations in the FEM using annual secondary time series data of four variables. The variables are the exchange rate, money supply, net foreign asset (a proxy for intervention variable), and lending rate ranging from 1970 to 2013. The result from the Johansen Juselius cointegration test shows that the naira exchange rate, intervention variable and monetary aggregates are cointegrated. The result from the error correction model also indicates that the naira exchange rate will adjust and re-establish itself at the speed of 12% annually. Moreover, the result of the Granger causality test the CBN intervention is non-sterilized. Therefore, the CBN should provide an effective way through which its...

The study empirically investigated the relationship between financial intermediaries and economic growth in Nigeria. Annual time series data covering 1970 to 2013 were used to analyze the long run and short run relationship between the development of financial intermediaries and economic growth along with the direction of causality between the indicators. The results of the unit root test show that the variables are integrated at I(1). Cointegration is being found between the series in the presence of a structural break in 1987, 1992 and 1996. Using bound testing technique for cointegration a stable long-run relationship was found between the indicators of financial intermediaries and the economic growth. Error correction coefficient was statistically significant. It was concluded that insurance premium and value of stock transaction have a positive impact on economic growth in both short runs and long-run. However, bank credit has a negative influence on economic growth. The causal...