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Costing as an Essential Instrument in Materials Management and Control
is study which covered one of the cement fibre
manufacturing industries in the country was a mixture of
librarv research and empirical or survey method of research.
Both primary and secondary sources of data were utilized
in gatlzcring relevant information. The primsuy sources consist
t
of questionnaire and oral interview while the secondary
sources were gathered from existing literature on the subject
matter of the study.
Tabular presentation of data analysis was used whereby
the effect and relationship one data had with another was
quqntified ' by simple representation and the
hypotheses were statistically tested.
This study has proved that costing is a veritable
instsumci~t for materials control in any industrial
organization. Given the importance of effective material
management in any industry, this stvdy recommends the
recognition and of course thz creatipn of good working
!
enviroiiment to enable the department function effectively.
THE ROLE OF MICROFINANCE INSTITUTIONS IN THE MOBILIZATION OF FUND FOR MICRO CREDIT SCHEME IN NIGERIA
In the course of carrying out this research, data were collected from both
primary and secondary sources to test the hypotheses. The Random sampling
technique was used to determine the sample size. In analyzing and presenting
data collected, tables and percentages were used. The Chi-square method was
used to test the hypotheses stated, and after a careful test on the data, it was
revealed that microfinance institutions play significant roles in the mobilization
for fund for micro credit scheme in Nigeria, that implementation of
microfinance policy in Nigeria is low and also that the attitude of commercial
banks as regards micro credit scheme in Nigeria is unfavorable. It is therefore,
recommended that government should enforce and monitor the implementation
of microfinance policies and also provide incentives for commercial banks that
involve in micro credit scheme so as to create a favorable or enabling
environment for the parties involved.
AN APPRAISAL OF THE IMPACT OF RECAPITALIZATION OF BANKING INDUSTRY ON ECONOMIC GROWTH OF NIGERIA
One of the major macroeconomic variables that compliment bank performance is availability of
capital. Economic theories show that inadequate capital contributes to bank failures and retards
economic growth. This study however, examined the impact of bank recapitalization of banking
industry on economic growth of Nigeria. It is the aim of this research work to examine the past
bank failures as a result of inadequate capital and how recapitalization exercise in the banking
industry in Nigeria has increased the minimum paid-up capital and increased the banks’ asset
qualities. This research work is carried out to achieve some objectives among which are: to
examine the impact liquidity ratio on economic growth in Nigeria pre and post capitalization
2005, to determine the impact of cash reserve ratios on economic growth in Nigeria pre and post
capitalization 2005, to examine the impact of money supply on economic growth in Nigeria pre
and post capitalization 2005, to examine the impact of loan-to-deposit ratio on economic growth
in Nigeria pre and post capitalization in 2005. The methodology adopted for this work was
based on the use of tables and charts, which established structured relationship between the
variables studied. The data collected were only from secondary data and variable specification
used were dependent and independent variable: while GDP was used as dependent variables,
money supply, loan-to- deposit ratio and cash reserve ratio are independent variable. The findings
indicate that liquidity ratio, cash reserve ratio have no positive and significant impact on
economic growth of Nigeria as opposed to money supply to GDP and loan to deposit of
commercial bank that have positive but non-significant impact on economic growth in Nigeria. It
is, however, recommended that government should make policies that are less stringent and more
favourable for the operators to have room to operate more freely.
Examination of Fair Value Measurement in Determination of Profitability of Listed Manufacturing Firms in Nigeria
Examination of fair value measurement in determination of profitability of listed manufacturing firms
in Nigeria was influenced by the adoption of International Financial Reporting Standard (IFRS) in
Nigeria. IFRS are a set of accounting standards developed by the International Accounting Standards
Board (IASB) that is becoming the global standard for the preparation of public company financial
statements. The standard favours a basis of valuing assets and liabilities known as Fair Value,
different from Historical Cost promoted by Statement of Accounting Standards (SAS) and the former
International Accounting Standards (IAS). The Fair Value measurement values assets and liabilities at
their current market price as though the business is at liquidation and trying to realise its assets and
dispose its liabilities, while the Historical Cost convention values assets and liabilities at their original
costs of purchase or transfer thereby assuming a stable monetary unit disposition. The IFRS also
presents with reclassification of returnable packaging material (RPM) as long term asset, and the
depreciation of the components of a machine, instead of the whole machine. Previous research has
shown that method of valuation may significantly influence reported profit; the problem therefore is,
what effect would this newly adopted way of valuing assets and liabilities have on profitability? Thus,
the study sought to: (i) ascertain the influence of depreciation on profitability of the manufacturing
firms in Nigeria using fair value measurement and historical cost convention, (ii) examine the effect of
inventory on reported profit of manufacturing firms in Nigeria under fair value measurement and
historical cost convention, (iii) determine the relationship between volume of tax and reported profit
of manufacturing firms in Nigeria using fair value measurement and historical cost convention and
(iv) compare the mean of the two sampled populations. The ex-post facto research design was
adopted for this study. A cross sectional data from the financial reports of manufacturing companies
quoted on the 1st tier security market of the Nigerian Stock Exchange for Pre-IFRS of 2011 and Post
IFRS of 2012 periods were used. The dependent variable is profitability while the independent
variables are depreciation, inventory and taxation. The five companies studied were those that have
complied with IFRS and they include: Champion Breweries Plc, Guinness Breweries Plc,
International Breweries Plc, Nigerian Breweries Plc and 7-up Bottling Company Plc. The simple least
square regression technique, correlation coefficient, and t-statistic were analytical tool were used;
using Econometric Views (EViews) statistical software. Depreciation has positive and significant
impact on profitability using fair value measurement (R2
= 0.959; AR2
= 0.945; p-value = 0.0036) and
historical cost convention (R2
= 0.997; AR2
= 0.996; p-value =0.0001). Inventory has positive and
significant effect on profitability under fair value measurement (R2
= 0.939; AR2
= 0.918; p-value =
0.0066) and historical cost convention (R2
= 0.983; AR2
= 0.977; p-value = 0.0010). A positive and
significant relationship exist between taxation and profitability using fair value (r = 0.998) and
historical cost convention (r = 0.979). The two populations from which sample were taken have the
same mean (tcal = 0.467 < tcritical = 2.306, 0.05 significant level). Conclusively, depreciation, cost of
sales, and Taxation has significant and positive impact, effect and relationship respectively on what is
reported as profit under historical cost convention and under fair value measurement. Thus, indicating
that fair value measurement can serve as a replacement to historical cost convention. As such, fair
value should be encouraged.
EFFECTIVENESS OF TAXATION AS AN INSTRUMENT FOR CONTROL OF MONEY IN CIRCULATION
This research work is been designed to untold the effect of Taxation
on the Economy of Nigeria. The aim and objective is to find out if
taxation constitutes significant impart as an instrument for control
of money in circulation such as the effect on the rapid rise in price
on Revenue, Expenditure and credit; the extent to which the tax
system may be effective in preventing or combating an inflation;
And how taxation can be used to breach the vicious circles of
poverty, to find out if taxation can be used to industrialize a
developing economy like Nigeria. The research instrument used for
data collection was questionnaire which contained 15 items. The
data collected were analyzed through the use of percentage. From
the findings, it was discovered that taxation can help in regulating
the level of money in circulation and can be used to combated
inflation and also breach the wide gap between the rich and the
poor. Based on the finding, recommendations were made which the
researcher hope would help to understand that taxation can be
used as an instrument of control of money in circulation.
Commensality: An Aspect of Social Principle
This article talks about the aspect of Social Principle where people of high status eat and drink in public with utmost carefulness.
EFFECTS OF BANK MERGERS AND ACQUISITIONS ON LENDING TO SMALL BUSINESS BORROWERS IN NIGERIA
Effects of bank mergers and acquisitions on bank loans to small businesses have raised significant concern among policy makers in Nigeria. Small business lending is a prime example of a banking product likely to be affected by bank consolidations. Although bank consolidations are likely to bring evolution in the banking product market, this kind of product had remained local in nature. By remaining local, the product may not likely appeal to consolidated banks that are forward looking. This scenario has raised questions for instance; to what extent do banking consolidations affect their ability to supply small credit loans. The information regarding this question has remained asymmetrical implying that policy capable of pulling down the economy may likely arise in near future. Therefore, this study seeks to mitigate such likely economic catastrophe by trying to analyze empirically the effects of bank mergers and acquisitions of emerging mega banks on small business lending. All the 24 banks that emerged successfully after the N25billion bank recapitalization mandate were selected for study as all of them were involved in the consolidation and recapitalization exercises. An Ex-Post Facto Research Design was engaged and secondary data were obtained from the CBN Statistical Bulletins and database of banks selected for study. Multiple regression analysis was used to analyze the data with the aid of E-View Software. The result indicated that changes in bank size after bank consolidation negatively affected banks’ decision to lend, which is not statistically significant ( β=-0.62; p-value >0.05). This means that as bank gross asset increases as a result of bank consolidation, bank loans to small businesses would likely fall. Changes in consolidated banks’ deposits negatively affected small business lending and it is insignificant ( β=-0.063;p-value> 0.05). This shows that as bank deposits of the consolidated banks increase, the credit availability to Nigerian small businesses begins to drop by 6% for every 1% positive changes. Changes in bank Market share after bank consolidation affected bank lending positively and it is insignificant ( β=0.02; p-value >0.05). The effect indicates that as banks increase their competitive stands due to consolidation, loans to small business as well increase. Finally, changes in equity positively affected banks’ decision to lend after consolidation, which is insignificant ( β=0.0197; p-value >0.05). This means that increases in shareholders’ funds encouraged banks to supply loans to small business borrowers after mergers and acquisitions. We concluded that bank mergers and acquisitions do not largely advance the interest of small business borrowers in Nigeria. Based on the conclusion, we recommended that government should encourage bank capital adequacy. Most importantly, they should encourage micro finance banks and other non-bank financial institutions to pick up loans dropped by the consolidating banks.
