Koye Gerry Bokana

In this paper, the authors examined the efficiency of deposit money banks (DMBs) in Nigeria in three years after, during and before the 2004–2005 capital consolidation in Nigeria. This consolidation period was the last period the Central Bank of Nigeria implemented an official recapitalization policy of the deposit money banks in the country. The authors predicated the study on a modified intermediation and efficiency measurement frameworks. It utilizes deposits, fixed assets and employees as inputs, whose costs are interest payments, depreciation and staff expenses. Performing loans and advances, investments and liquid assets constituted the output variables. The authors computed the efficiency scores, using the Data Envelopment Analysis (DEA) approach. The data used were obtained from the DMBs that retained their identities and controlled over 75% of the banking industry’s total assets. They were purposively selected to maintain data consistency, and were size-classified by total assets. The findings show that small banks tend to be more cost efficient than medium and big banks. More so, medium sized banks tend to be more cost efficient than big banks, while big banks take the lead in cost efficiency score in post consolidation period. Cost efficiency of the banks was the highest during consolidation, followed by pre-consolidation and least in three years after consolidation.

This study empirically examined the dynamic impact of foreign capital inflows and trade openness on output performance and national productivity in 31 selected countries in sub-Saharan Africa (SSA) between 1985 and 2018. The study employed random effects and fixed effects models to estimate the coefficients. However, the results from the two models portray similar behaviors. Both estimates revealed a significant relationship between output performance and the independent variables. This suggests that the macroeconomic variables examined are good explanatory variables for analyzing the determinants of output performance and national productivity in the SSA region. The study further found that foreign capital inflows, trade openness and inflation rate have a positive and significant influence on output performance and national productivity. In contrast, exchange rate and interest rate exhibited a negative and significant relationship with such output performance. This result implies that policymakers in SSA countries must formulate policies that can successfully ensure trade openness and promote foreign capital inflows so as to stimulate national productivity and boost output performance in the region. Therefore, it can be concluded that foreign capital inflows and trade openness affect the industrial sector in contributing to output performance and national productivity in the SSA countries.