Browsing by Author "Jimoh, Abdulrazaq Taiye"

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    Abolition of Universal Banking in Nigeria: A policy Somersault
    (Faculty of management Sciences, University of Ilorin, 2016) Jimoh, Abdulrazaq Taiye
    The Central Bank of Nigeria (CBN) aboilished universal banking model in Nigeria in 2010 barely ten years of its adoption. This abolition generated a lot of debates as some economists argued that the gains of past reforms, especially adoption of the banking model, had not been fully realized and therefore tagged its reversal a policy somersault. Therefore, this study assessed empricially the performance of deposit money banks in Nigeria before and after the abolition of universal banking system. Specifically, the study was carried out to examine the profitability and market performance of deposit money banks in Nigeria before and after the abolition of the model. Data were collected from annual reports of the selected banks. The data were analysed using one-way analysis of variance (ANOVA). Results indicate that abolition of universal banking does not have significant effect on ROA, ROE and EPS of deposit money banks in Nigeria. The study concludes that in terms of profitability, reversal of the model might actually be policy somersault. It is however recommended that further studies be conducted on costs of universal banking and how the abolition affects such costs as conflicts of interest and risk exposure. This is because the findings of the study may not generalizable on all areas of universal banking model.
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    Abolition of Universal Banking Model in Nigeria:A policy Somersault?
    (Faculty of Management Sciences,University of Ilorin,Ilorin., 2016-06) Jimoh, Abdulrazaq Taiye; Sanni, Ibrahim; Ibrahim, Wasiu Oluwatoyin; Abdulmumin, Biliqees Ayoola
    The Central bank of Nigeria (CBN) abolished universal banking model in Nigeria in 2010 barely ten years of its introduction.This abolition generated a lot of debates as some economists argued that the gains of past reforms,especially adoption of the banking model,had not been fully realised and, therefore,tagged its reversal a "policy reversal".Therefore, this study assessed empirically the performance of Deposit Money Banks in Nigeria before and after the abolition of universal banking system.Specifically,the study was carried out to examine the profitability and market performance of deposit Money Banks in Nigeria before and after the abolition of the model.Data were collected from annual reports of the selected banks listed on the Nigerian Stock Exchange(NSE) and the data were analysed using both descriptive and inferential statistics.One-way ANOVA was used to test the stated hypotheses.Results of the analysis indicate that abolition of universal banking does not have significant effect on ROA,ROE,and EPS of Deposit Money Banks in Nigeria.The study concludes that in terms of banks profitability, reversal of universal banking model might actually be a policy somersault.It is , however, recommended that further studies be conducted on costs of universal banking and how the abolition affects such costs as conflicts of interest and risk exposure.This is because the findings of this study may not be generalised on all areas of universal banking model.
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    An Assessment of the Post Consolidation Performance of the Nigerian Banking Sector
    (Ilorin Journal of Business and Social Sciences, 2014-10) Sakariyahu, Ola Rilwan; Jimoh, Abdulrazaq Taiye; Bamigbade, Dayo
    In 2005, the Central Bank of Nigeria (CBN) raised the minimum capital requirement of commercial banks in Nigeria to N25 billion in the bid to strengthen the country's financial system and insulate licensed banks from financial distress, amongst several potential benefits. This study examined how the post consolidation banks have reacted to the 2005 exercise. It specifically assessed whether there is significant difference in how the Return on Assets (ROA) and Return on Equity (ROE) of the post consolidation banks have reacted to the exercise. Secondary data was collected form published annual reports and accounts of five (5) first-tier banks from 2006-2013 (post consolidation period). Descriptive statistics and one-way Analysis of Variance (ANOVA) were employed for data analysis using the Statistical Package for Social Sciences (SPSS) Version 21.0. It was found that there is no statistically significant difference in how the ROA of the post consolidation banks have reacted to the exercise. However, a statistical significant difference exists in the ROE. To this end, it is concluded that not only is the stability of the banking sector of the economy guaranteed through the recapitalization exercise, the post consolidation banks have benefited from the exercise is similar fashion.
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    Asset Quality, Revenue Diversification and Profitability of Islamic Banks in Selected African Countries.
    (Superior University, Lahore, Pakistan, 2026) Jimoh, Abdulrazaq Taiye; Salihu, Ismail
    Profit-sharing and trade-based financings are the major means for revenue generation in Islamic banks. Making these financing contracts available in accordance with Shariah principles will not only increase the growth of banking market but also propel the profitability of existing Islamic banks. Profitability of the banks thus depends largely on effectiveness of the revenue models, asset (financing) quality as well as diversification methods employed. Despite the established theoretical link between asset quality, revenue diversification and profitability, empirical relationship between the variables remains underexplored. Therefore, this study examined the effect of asset quality and revenue diversification on Islamic bank profitability in Africa. A sample of five countries were purposively selected for the study from Islamic Financial Services Board (IFSB) member African countries. Country-level Quarterly data were extracted from IFSB database for 11 years from 2013 to 2023. The data were analysed via fixed effects regression technique. Findings revealed that revenue diversification had positive, significant effect (0.69, p<0.05) on return on assets (ROA). Conversely, non-performing financing had negative, significant effect (-0.28, p<0.05) on ROA. The study concluded that Islamic banks’ profitability is significantly affected by revenue diversification and asset quality, in selected African countries. The study recommended diversification to more shariah-compliant products and effective monitoring of financing activities to reduce non-performing facilities that can deplete Islamic banks’ profitability.
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    BANK-SPECIFIC DETERMINANTS OF ISLAMIC BANKING PROFITABILITY: EVIDENCE FROM SELECTED AFRICAN COUNTRIES
    (Published by the Department of Banking and Finance, University of Abuja, 2026) Jimoh, Abdulrazaq Taiye; Salihu, Ismail; Khaleel, Sa’adatu Ibrahim; Afolabi, Hafsat Olatanwa
    The determinants of Islamic bank profitability in Africa remain a subject of empirical investigation as the extent to which bank-specific variables affect performance is underexplored by past studies. This study therefore investigated the effects of bank-specific characteristics on profitability of Islamic banks in Africa. Specifically, the study examined the effects of asset quality, liquidity, operational efficiency, revenue diversification and capital adequacy on Islamic bank profitability is selected African countries. The study population consists of 25 African Islamic Financial Services Board (IFSB) member countries as at January 2026. Purposive sampling technique was used to select 5 countries while quarterly data were collected from IFSB database for period, 2013 to 2024. The data were analysed using Fixed Effect Regression estimation technique. Results showed that capital adequacy (β=0.91, p<0.05), deposit liability (β=0.33, p<0.05), revenue diversification (β=0.69, p<0.05) and total financing (β=0.16, p<0.05) had positive and significant effects on return on assets. Conversely, non-performing financing (β=-0.28, p<0.05), cost to income ratio (β=-1.98, p<0.05), and liquidity ratio (β=- 5.72, p<0.01) had negative significant impact on ROA. It was concluded based on these findings, that bank-specific factors affect profitability of Islamic banks in selected African countries. It is therefore recommended for policy implementation, that the management of Islamic banks in Africa should ensure that the banks are adequately capitalized by maintaining good capital adequacy to enhance their profitability. Islamic banks in Africa should also ensure that their financing activities are efficiently and effectively executed and monitored, to reduce nonperforming facilities that are capable of depleting their profitability
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    Banking Sector Development and Economic Growth: Evidence from Nigeria
    (Ilorin Journal of Finance, 2017-12-31) Jimoh, Abdulrazaq Taiye
    Studies have claimed that Nigerian banking sector is still underdeveloped and the sector has performed below expectation in its role of promoting economic growth of the country. This study therefore assessed the effect of banking sector devolpment on the Nigeria’s economic growth. Annual time series data from 1981 to 2015 were collected from CBN statsistical bulletin and World Bank database. Augmented Dickey Fuller (ADF) test was conducted to ascertain the order of integration of the series. Johansen co-integration test was performed and ECM approach was used to estimate the model. The study concludes that the banking sector development have both long and short run effect on the Nigerian economic growth. It is therefore recommended that banks in Nigeria should improve their administration of credit to private sector to ensure that the funds are properly channeled to productive ventures…
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    Banks’ Price Behaviour and its Determinants in Nigeria
    (College of Business and Social Sciences, Covenant University, Ota, Nigeria, 2021) Etudaiye-Muhtar, Fatima Oyebola; Jimoh, Abdulrazaq Taiye; Abdurraheem, Abdulazeez Adewuyi; Ibrahim, Wasiu Oluwatoyin
    Bank-based financial systems, through the financial intermediation function, enhance economic growth. However, in the performance of this function, banks are faced with issues such as information asymmetry and inefficient institutional qualities that may lead to increased operational costs which reflects as social costs of financial intermediation and are passed on to economic units. Consequently, banks may be confronted with the problem of determining the right price for its products and services. On this premise, this study examines the pricing behaviour of Nigerian commercial banks and its determinants. The random effects regression estimation technique is used on annual panel data of 15 publicly listed Nigerian commercial banks for the period 2005 –2017. Results from the investigation show that bank-specific factors such as bank size(0.871,p<0.05)liquidity(0.256, p<0.01), credit quality (0.095, p<0.1), and inflation(0.436, p<0.05)as a macroeconomic variable, have positive and significant effects on bank price behaviour. These findings suggest that the variables are associated with higher social costs of financial intermediation in commercial banks in Nigeria. It is recommended that in order to lower borrowing costs, banks should endeavour to reduce the level of these bank-specific factors which would lead to reduction in costs associated with information asymmetry and inefficiency. In terms of inflation, banks are recommended to factor in inflation related costs into their pricing process while monetary policy regulators should put in place, policies that target reduction in inflation rates.
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    Comparative analysis of technical efficiency of Islamic banks in selected low-income countries of Africa and Asia
    (Universiti Utara Malaysia, 2022) Jimoh, Abdulrazaq Taiye; Ijaiya, M. A.; Attah, J. A.; Abdulmumin, B. A.; Etudaiye-Muhtar, O. F
    Islamic banks in Africa and Asia have been characterised by some technical inefficiencies. The sources (managerial issues or scale of operation) of these inefficiencies still remain a problem of empirical investigation since mixed reports have been given in that regard. This study therefore investigated the sources of inefficiencies by decomposing technical efficiencies of the banks and comparing the components of Islamic banks in the low-income countries of Africa and Asia. Data were collected from annual reports of the selected banks and analysed using both descriptive and inferential statistical tools. Data Envelopment Analysis (DEA) was conducted to estimate the pure technical and scale efficiencies of the banks. The study found that the inefficiency attributable to all the selected banks were due to pure technical efficiency (0.876), which was lower than the mean value of scale efficiency (0.917). That is, the inefficiencies were caused largely by managerial problems rather than operating scale. It was also found that Islamic banks in Asia were more technically efficient than those from Africa in terms of pure technical (0.920>0.827) and scale efficiencies (0.934>0.902). The study concludes that managerial issues such as insufficient competent staff, poor monitoring and so on were the causes of low efficiency attributed to Islamic Banks in Africa. It was thus recommended that Islamic banks in Africa should employ staff members who are competent with requisite knowledge of Islamic finance to improve the pure technical and overall efficiency of the banks.
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    A comparative study of financial inclusion indicators in selected African countries.
    (Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria., 2017-12-31) Jimoh, Abdulrazaq Taiye
    Financial inclusion is regarded as a tool for poverty reduction and economic growth. To this end, African countries are working towards the dividends of financial inclusion. This is evidenced by different policies introduced to foster financial inclusion and the resultant increase in the financial inclusion indicators. In spite of the improvement in the indicators, the extent of financial inclusion is still low compared to other developing regions such as Asia. The study examines financial inclusion indicators in five African countries using descriptive statistics and further compare the level of improvement in each of the countries. The comparison revealed that South Africa recorded more growth in it' financial inclusion indicators compared to other countries in the study. Overall, the study concludes that the level of financial inclusion has improved in the region. The study, therefore, recommends that more efforts be put on policies that enhance the growth of financial inclusion indicators in Africa
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    CREDIT RISK IN ISLAMIC AND CONVENTIONAL BANKING SYSTEMS: EVIDENCE FROM NIGERIA
    (International Centre of Excellence for Rural Finance and Entrepreneurship (ICERFE), Ahmadu Bello University, Zaria, 2024) Jimoh, Abdulrazaq Taiye; Khaleel, Sa'adatu Ibrahim; Abdulmajeed, Tajudeen Idera; Orilonise, Mubarak Abiodun
    Islamic banking has been characterised by high credit risk exposure as receivables take higher portion of the bank assets which are only held till maturity as discounting is not allowed. The high level of exposure may affect their performance in relation to conventional banks However, there is dearth of research on the comparative analysis of credit risk exposure of Islamic and conventional banks in Nigeria. This study therefore investigated the level of credit risk of Islamic banks in comparison with that of conventional deposit money banks in Nigerian. Data were collected from annual reports of the selected banks and analysed via Wilcoxon Signed Ranks Test. The study found that Islamic banks had significantly lower loss provision ratio than conventional banks. Non-performing financing was also found to be significantly lower for Islamic banks the conventional banks. However, Islamic banks had higher but insignificant level of cost to loan asset. Based on these findings, the study concluded that Islamic banks have lower level of credit risk exposure than their conventional counterparts in Nigeria. The study thus recommended moderate provision for loss financing to reduce costs and enhance profitability.
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    Developing Shariah-Compliant Products for Islamic Banking Market in Nigeria: Can Bay’u Al-Inah (Buy-Back Sale) be Experimented?
    (Department of Accounting, Federal University Dutsin-Ma, 2024) Jimoh, Abdulrazaq Taiye; Khaleel, Sa'adatu Ibrahim; Abdulmajeed, Tajudeen Idera; Orilonise Mubarak Abiodun
    The uniqueness of Islamic banking system is in the shariah-compliant products designed to serve the market. Among the products, is the controversial bay’u al-‘inah whose acceptability remains a subject of debate among shariah experts. As Islamic banking market is still evolving in Nigeria, it becomes imperative to analyze the potentials of bay’u al-inah’s adoption. This study therefore examined bay’u al-inah product with the objective of establishing whether the product could be adopted to improve market share of Islamic banks. Data were collected with a structured questionnaire which was used to obtain data from customers of Jaiz bank and Lotus bank in Kwara State. Six Hundred (600) copies of questionnaire were administered to respondents. Ordered Logistic Regression was conducted for the data analysis. The study found that bay’u al-inah personal financing (Coeff =0.51, p<0.05), home financing (Coeff =0.82, p<0.05), and working capital financing (Coeff =0.16, p<0.05),) have positive and significant relationship with market share which was measured with number of customers’ accounts. It was concluded based on the findings that, bay’u al-inah has great potentials for attracting more customers to Islamic banks and boosting the market share of Islamic banks in Kwara State, Nigeria. the study recommends that, subject to the assessment and approval of shariah committee of experts, bay’u al-inah be adopted by Islamic banks in Kwara State and Nigeria as whole.
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    Embranchment, Operating Efficiency and Profitability of Islamic Banks Selected Countries. Journal of Banking and Social Equity
    (Department of Islamic and Conventional Banking, Islamia University of Bahawalpur, Pakistan, 2025) Jimoh, Abdulrazaq Taiye
    Despite the growing demand for non-interest banking products and services, inadequate embranchment and inefficiency of the branches tend to hamper the banks’ profitability. This study therefore assessed the effects of bank embranchment and operating efficiency on profitability of non-interest banks in selected countries. Specifically, the study examined the effects of number of bank branches, cost to income ratio as well as their interaction, on return on assets of the banks. Data were extracted from IFSB database and were analysed using Fixed effects regression technique. Results of data analysis revealed that bank branches had positive significant (Coff= 2.28, p <0.05) effect while cost to income ratio had negative significant (Coeff=-0.11, p <0.05) effect on return on asset. The interactive effect of cost to income ratio was also found to significantly negative (Coeff=-0.03, p <0.05) on return on asset. The study concluded that bank embranchment and operating efficiency are key to improved profitability of non-interest banks in the selected countries. The study recommended that bank regulatory authorities should provide enabling environment to facilitate establishment of more branches of non-interest banks particularly in the rural communities. This will increase bank profitability and encourage financial inclusion. In addition, the management of non-interest banks should make efforts to control operating the cost of running the branches to have maximum benefit of embranchment on profitability.
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    Exchange rate Management in Nigeria: A Study of Dutch Auction System
    (Department of Accounting, Banking and Finance, Osun State University, 2015-06-30) Jimoh, Abdulrazaq Taiye
    The quest for a stable and realistic exchange rate for Naira with a view to achieving the overall macroeconomic stability hassled to series of reforms in the Nigerian foreign exchange market. This paper examined the contribution of one such reforms, the adoption of Dutch Auction System (DAS) towards achieving the stated macroeconomic objectives. This was achieved by comparing the stability of exchange rates in Nigeria over a twenty four year period split into two- pre and post DAS adoption. Wilcoxon signed rank test was employed as the statistical tool for testing the hypothesis. The result of the test shows that there is a significant difference in the pre and post DAS exchange rate stability. The study concluded that the adoption of DAS has had significant influence on the stability of exchange rate in Nigeria.
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    Financial inclusion in Africa: Do Creditors Rights Protection and Information Sharing Matter?
    (Department of Accounting, Nigeria Police Academy Wudil Kano, 2018-11-30) Jimoh, Abdulrazaq Taiye
    Using the global findex database, we examine whether creditors’ rights protection and information sharing matter for financial inclusion in a sample of 36 countries in Africa. Our findings show that only information sharing is important for financial inclusion, particularly when country-level characteristics such as legal origin, income, population density, political stability and bank competition are not controlled for. We suggest that better information sharing may lead to greater financial inclusion in African Countries.
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    Firm-Specific Characteristcs and Financial Performance of Listed Agricultural Companies in Nigeria
    (Department of Accounting and Finance, Federal University Gusau, Zamfara State Nigeria, 2022) Jimoh, Abdulrazaq Taiye; Attah, John Adeyi
    The contribution of listed agricultural firms to market development and economic growth has been consistently low in recent years. This could be traced partly to low profitability of agricultural firms in the country which is a function of several firm-specific factors. The study therefore examined the firm-specific factors that influence financial performance of listed agricultural firms in Nigeria. Data were collected from annual reports of the five (5) listed firms in the sector for eleven years from 2010 to 2020. The data were analysed with static panel data regression approach. The results indicate that asset maturity, dividend payout and liquidity have positive and significant effects on return on asset while firm size has significantly negative effect on the return on asset of the firms at 5% level of significance. The study concluded that that the listed agricultural firms utilised their assets and manage their liquidity efficiently. There is however, some scale inefficiencies in the firms because, the finding of negative relationship between firm size and return on asset indicates that larger the companies become the lower the financial performance. It is therefore recommended that the managements of agricultural companies in Nigeria should ensure that the firms are not overcapitalised in terms of investment in assets in order to boost both the scale efficiency and profitability of the firms.
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    Impact of deposit money Banks Lending on real Sector Growth in Nigeria
    (A Publication of Departments of Economics, Federal University Birnin Kebbi, 2019-06-30) Jimoh, Abdulrazaq Taiye
    Over the years in Nigeria, the volume of lending by deposit money banks into the real sector has continued to increase. This lending behavior in general is expected to assist the economic agents, augment their vulnerability to economic shocks and ultimately enhance economic growth. However, the Nigerian economic performance is quite low relative to the volume of credit being received by one of the growth propellers of the country, the real sector. This study therefore investigated the impact of deposit money banks’ lending on real sector growth in Nigeria. Specifically, the study assessed the impact of bank lending to various components of the real economic sector of the country. Exp-post facto design was used for the study and data collected from the CBN statistical Bulletin. Using the Ordinary Least Square (OLS) multiple regression technique, the result showed that output of the real sector had a positive relationship with the deposit money banks’ lending to the real sector but negative relationship with interest rate and inflation. It was concluded that the real sector businesses have not been able to have access to adequate fund and that the ones assessed have not been effectively utilized for productive purposes. It was therefore recommended that banks should grant more credit to real business activities to boost their productive power. Banks should also strengthen their monitoring on the loans being granted to the sector to ensure that the credits are used for the purposes they are granted.
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    IMPACT OF FINANCIAL INCLUSION ON PERFORMANCE OF BANKS IN NIGERIA
    (A Publication of Departments of Accounting & Finance and Business Administration, Fountain University, Osogbo, 2019-12-31) Jimoh, Abdulrazaq Taiye
    The re-lunch of financial inclusion in 2012 by the central bank of Nigeria has made Nigerian banks to embrace several innovative ideas towards providing better quality services to their customers. These innovations are expected to impact on the performance of the banks as suggested by theoretical literature. This study is therefore conducted to provide some empirical explanation on the impact of financial inclusion instruments on performance of Nigerian banks. Data were collected from World Bank database, Central Bank of Nigeria Statistical Bulletin, and annual reports of deposit money banks. The data were analysed with Fixed Effect Regression Model. The Regression analysis was conducted after carrying out the Breusch-Pagan Lagragian Multiplier (BP-LM) test to determine the suitability of either the fixed effect or random effect model. The findings revealed positive and significant impact of Automated Teller Machines, Bank embranchment, and point of sale terminals on bank performance at both 1% and 5% levels of significance. However, the result on the number of bank account is not significant. The study concludes that improvement in the quality of financial services will attract more customers to the bank and boost their performance. It is thus recommended that more ATMs, POS and Branches be put in place for better inclusive finance.
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    Impact of Financial Intermediation on Economic Growth in Nigeria
    (Department of Business Administration, University of Ilorin, 2016-12-31) Jimoh, Abdulrazaq Taiye
    This study assessed the impact of financial intermediation on economic growth in Nigeria. Data were obtained from CBN statisitcal bulletin and nalysed using OLS regression technique. The study found that all the intermediation variables except credit to private sector and reserve money are positively and significantly related to GDP at 5% level of significance. It was concluded that both size and efficiecny of intermediation are necessary for growth of Nigerian economy. The study recommends that deposit money banks in Nigeria should improve their monitorring of private sector credits for effective utilization
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    Impact of universal banking on the Nigerian Economy
    (Faculty of management Sciences, University of Ilorin, 2014) Jimoh, Abdulrazaq Taiye
    The search for a sound financial system led to trials of different designs by many countries. One of such designs in Nigeria is the adoption of universal banking in 2001. The adoption was borne out of the many benefits which have been ascribed to the system. However, the reversal of the model in year 2011 pointed to the Nigeria’s inability to avail herself of those potentials or perhaps such benefits were marred by attendant costs of adopting the model. This paper evaluates the impact of universal banking on the Nigerian economy. Mann-Whitney U was employed as the statistical tool for testing the null hypothesis at 5% level of significance. The result of the test shows that there is no significant difference in the contribution of universal banking model to GDP during the periods. The study concludes that the shift to the former commercial banking system was appropriate.
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    Islamic banking efficiency: A cross-country analysis of Africa and Asia
    (Faculty of Social and Management Sciences, Federal University Birnin Kebbi, 2022) Jimoh, Abdulrazaq Taiye; Bamigbade, Dayo; Attah, John Adeyi
    The Islamic banking system has been adopted by many countries, as a veritable alternative to interest-based banking in the area of intermediation and inclusive finance. However, the efficiency of the system which is fundamental to the competitiveness of the banks is currently being questioned. This study, therefore, made a country-wise analysis of Islamic banking efficiency in selected countries of Africa and Asia from 2012 to 2019. Fifty-Six Islamic banks were selected from Seventeen Countries and data were collected from annual reports of the hanks. Data Envelopment Analysis (DEA) wat used to estimate the technical efficiency scores of the banks. Country-level average efficiencies were then used for the analysis The study found that the selected Islamic banks were not fully efficient It was also found that the observed Inefficiencies were majorly pure technical. The study concluded that Islamic banking systems in the selected countries were technically inefficient due to pure technical inefficiencies (managerial underperformance- lack of skills, competence) in Islamic banking operations. Employment of competent managerial staff is therefore recommended to boost the technical efficiency of the banks and enhance their competitive positions in the market.