The world thrives on continuous technological innovations in diverse areas, from health to agriculture, education, information, and even finance, amongst others. The essence of these innovations is to create ease, automating and simplifying operations to achieve greater results. This is descriptive of the concept of ‘Financial Technology’ (FinTech) which revolutionises the financial sector and creates a relatively easy alternative to traditional financial services. FinTech addresses constraints in traditional financial products, especially access and equality and even threatens to phase-out those products. Despite the ease associated with FinTech products, the risk and disadvantages are also numerous. FinTech products, especially cryptocurrency, gives-off the notion of anonymity and invincibility, that is, the confidence that the participants are off-the-reach of financial sector regulators. This notion has given rise to risky and criminal utilisation of FinTech products. For Nigeria, which is at the teething stage of financial regulation, the adoption of FinTech poses serious challenges. This is evident in the regulatory indecisiveness of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) as to how to treat FinTech. This research project aims at charting a map for Nigerian regulators on how to capture and control the FinTech sector. The research introduces Fin-Tech and the component products. It further examines the regulatory attitude in other jurisdictions towards FinTech and assesses the suitability of their attitude. The research discusses the regulatory response of Nigerian regulators and compares same with that of other jurisdictions in order to arrive at a relatively acceptable response.
{"title":"Leveraging Financial Technology: A Comparative Analysis of the Legal Readiness of Nigeria for Fintech Disruption Vis-A-Vis Other Jurisdictions","authors":"N. Iheanacho, I. Oluwasemilore","doi":"10.2139/ssrn.3938737","DOIUrl":"https://doi.org/10.2139/ssrn.3938737","url":null,"abstract":"The world thrives on continuous technological innovations in diverse areas, from health to agriculture, education, information, and even finance, amongst others. The essence of these innovations is to create ease, automating and simplifying operations to achieve greater results. This is descriptive of the concept of ‘Financial Technology’ (FinTech) which revolutionises the financial sector and creates a relatively easy alternative to traditional financial services. FinTech addresses constraints in traditional financial products, especially access and equality and even threatens to phase-out those products. Despite the ease associated with FinTech products, the risk and disadvantages are also numerous. FinTech products, especially cryptocurrency, gives-off the notion of anonymity and invincibility, that is, the confidence that the participants are off-the-reach of financial sector regulators. This notion has given rise to risky and criminal utilisation of FinTech products. For Nigeria, which is at the teething stage of financial regulation, the adoption of FinTech poses serious challenges. This is evident in the regulatory indecisiveness of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) as to how to treat FinTech. This research project aims at charting a map for Nigerian regulators on how to capture and control the FinTech sector. The research introduces Fin-Tech and the component products. It further examines the regulatory attitude in other jurisdictions towards FinTech and assesses the suitability of their attitude. The research discusses the regulatory response of Nigerian regulators and compares same with that of other jurisdictions in order to arrive at a relatively acceptable response.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"os-30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127774450","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this study, an attempt has been made to examine whether the theory of sector rotation has been empirically valid in the Indian equity market, during the period April, 2000 to March, 2020. The time period has been divided into many sub-periods according to the real GDP growth rate and the annualized returns of eleven stock market indices have been analyzed in different periods. Going forward, leading macroeconomic indicators, which coincide with overall economy, have been taken and their association with stock market indices have been analyzed through statistical measures to assess any possible forecasting. In the first part of the study, cyclical and non-cyclical sectors have been found to beat the benchmark index during periods of growth and stagnancy, respectively, but no particular ordinality was observed. Amongst the leading economic variables, M3 Money Supply was found to have high degree of association with some indices, namely Sensex, Healthcare, CDGS, Consumer Durables and IT, but no linear relation was observed.
{"title":"Sector Rotation with Leading Macroeconomic Indicators","authors":"Manan Jain","doi":"10.2139/ssrn.3923587","DOIUrl":"https://doi.org/10.2139/ssrn.3923587","url":null,"abstract":"In this study, an attempt has been made to examine whether the theory of sector rotation has been empirically valid in the Indian equity market, during the period April, 2000 to March, 2020. The time period has been divided into many sub-periods according to the real GDP growth rate and the annualized returns of eleven stock market indices have been analyzed in different periods. Going forward, leading macroeconomic indicators, which coincide with overall economy, have been taken and their association with stock market indices have been analyzed through statistical measures to assess any possible forecasting. In the first part of the study, cyclical and non-cyclical sectors have been found to beat the benchmark index during periods of growth and stagnancy, respectively, but no particular ordinality was observed. Amongst the leading economic variables, M3 Money Supply was found to have high degree of association with some indices, namely Sensex, Healthcare, CDGS, Consumer Durables and IT, but no linear relation was observed.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125504912","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article examines the impact of COVID-19 on market sentiment and stock market returns for firms listed in India using daily data from January 2020 to May 2021, a period that includes the first and second wave of the COVID-19 pandemic. We applied wavelet coherence to explore the co-movement of COVID-19 and sentiment. Market-related implicit sentiment proxies depicting the market's bullish sentiment negatively correlate with COVID-19, whereas sentiment proxies representing the market's bearish sentiment positively correlate with COVID-19 during the first wave of the pandemic. No co-movement was found between sentiment proxies and COVID-19 during the second wave of the pandemic. We also applied event study methodology to measure abnormal returns and regression analysis to explain the causes of abnormal returns during both the pandemic waves. We found statistically significant negative abnormal returns during wave 1 of COVID-19 due to increased negative sentiment in the market. During wave 2, we did not find abnormal returns to be statistically significant. We also found that during wave 1, return on assets (ROA) is statistically associated with abnormal returns, while during wave 2, no firm-specific characteristic is statistically associated with abnormal returns. These findings are among the first empirical evidence of COVID-19, market sentiment, and stock market returns during wave 1 and wave 2 of the pandemic.
{"title":"Does COVID 19 Impact Market Sentiment and Stock Returns?- Evidence from India","authors":"Hardeep Singh, Yamini Yadav","doi":"10.2139/ssrn.3882040","DOIUrl":"https://doi.org/10.2139/ssrn.3882040","url":null,"abstract":"This article examines the impact of COVID-19 on market sentiment and stock market returns for firms listed in India using daily data from January 2020 to May 2021, a period that includes the first and second wave of the COVID-19 pandemic. We applied wavelet coherence to explore the co-movement of COVID-19 and sentiment. Market-related implicit sentiment proxies depicting the market's bullish sentiment negatively correlate with COVID-19, whereas sentiment proxies representing the market's bearish sentiment positively correlate with COVID-19 during the first wave of the pandemic. No co-movement was found between sentiment proxies and COVID-19 during the second wave of the pandemic. We also applied event study methodology to measure abnormal returns and regression analysis to explain the causes of abnormal returns during both the pandemic waves. We found statistically significant negative abnormal returns during wave 1 of COVID-19 due to increased negative sentiment in the market. During wave 2, we did not find abnormal returns to be statistically significant. We also found that during wave 1, return on assets (ROA) is statistically associated with abnormal returns, while during wave 2, no firm-specific characteristic is statistically associated with abnormal returns. These findings are among the first empirical evidence of COVID-19, market sentiment, and stock market returns during wave 1 and wave 2 of the pandemic.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122075159","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study outcomes to those who invested in non-U.S. stocks through American Depository Receipts (ADRs) between August 1954 and September 2020, with particular attention to ADRs associated with Chinese firms. Overall, ADRs improved their investors’ wealth by $1.03 trillion, as compared to a Treasury-bill benchmark. More than a third of this amount was attributable to ADRs associated with Chinese firms. A value-weighted portfolio of ADRs associated with Chinese firms earned 14.1% per year since the first Chinese ADR was created in 1993, as compared to 9.9% per year for the overall U.S. stock market over the same period. These data are relevant to current policy discussions focused on Chinese firms listed in the U.S.
{"title":"Chinese and Global ADRs: The U.S. Investor Experience","authors":"H. Bessembinder, Te-Feng Chen, Goeun Choi, K. Wei","doi":"10.2139/SSRN.3772660","DOIUrl":"https://doi.org/10.2139/SSRN.3772660","url":null,"abstract":"We study outcomes to those who invested in non-U.S. stocks through American Depository Receipts (ADRs) between August 1954 and September 2020, with particular attention to ADRs associated with Chinese firms. Overall, ADRs improved their investors’ wealth by $1.03 trillion, as compared to a Treasury-bill benchmark. More than a third of this amount was attributable to ADRs associated with Chinese firms. A value-weighted portfolio of ADRs associated with Chinese firms earned 14.1% per year since the first Chinese ADR was created in 1993, as compared to 9.9% per year for the overall U.S. stock market over the same period. These data are relevant to current policy discussions focused on Chinese firms listed in the U.S.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134222042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The matrix algebra associated with finding minimum variance portfolio weights and tangency portfolio weights is greatly simplified by using an Excel presentation. A further simplification of the tangency portfolio weights process is also presented using excess returns for the risky securities. The lesson drawn from this presentation is readily performed online by sharing or recording an Excel screen with students.
{"title":"The Minimum Variance Portfolio, the Tangency Portfolio, and the Associated Matrix Algebra","authors":"Tom Arnold, Terry D. Nixon","doi":"10.2139/ssrn.3607332","DOIUrl":"https://doi.org/10.2139/ssrn.3607332","url":null,"abstract":"The matrix algebra associated with finding minimum variance portfolio weights and tangency portfolio weights is greatly simplified by using an Excel presentation. A further simplification of the tangency portfolio weights process is also presented using excess returns for the risky securities. The lesson drawn from this presentation is readily performed online by sharing or recording an Excel screen with students.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133245893","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We perform a series of 5 strategic analyses of Japanese Megabanks. In this paper we review how changes in relative prioritization of stakeholders may impact corporate strategy at Japanese Megabanks. We look to answer the following questions via a case study with reference to RUS Megabank.
Which key stakeholders have had the highest priority for Japanese Megabanks up to now and which have had the lowest priority? How have these priorities been reflected in actual strategy? Is the relative prioritisation of stakeholders likely to change over the next five years and what are the strategy implications for Japanese Megabanks?
{"title":"Strategic Analysis of Japanese Megabanks - Changes in Relative Prioritization of Stakeholders & the Implication for Corporate Strategy","authors":"N. Burgess","doi":"10.2139/ssrn.3645549","DOIUrl":"https://doi.org/10.2139/ssrn.3645549","url":null,"abstract":"We perform a series of 5 strategic analyses of Japanese Megabanks. In this paper we review how changes in relative prioritization of stakeholders may impact corporate strategy at Japanese Megabanks. We look to answer the following questions via a case study with reference to RUS Megabank.<br><br>Which key stakeholders have had the highest priority for Japanese Megabanks up to now and which have had the lowest priority? How have these priorities been reflected in actual strategy? Is the relative prioritisation of stakeholders likely to change over the next five years and what are the strategy implications for Japanese Megabanks?<br>","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122727417","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Cryptoassets have taken off with the advent of distributed ledger technology (“DLT”). Many of these innovative assets fall under the jurisdiction of the Securities and Exchange Commission (“SEC”). Applying a game-theoretic approach, this Article demonstrates that although the SEC has exhibited profound enforcement acumen in regulating the evolving digital-asset market, its overall policy is inefficient. The SEC has avoided making a costly investment in drafting an omnibus rule on cryptoassets. Instead, it has enveloped these innovations within the circumference of the preexisting, pre-crypto regulatory regime. This result has been achieved primarily through enforcement. The enforcement data examined in the paper suggest a trend toward issuer compliance with the securities regulation. Alas, the regulations per se do not address the risks that investors encounter in the digital-asset market. The rules fail to adequately mitigate agency costs and information asymmetry and to ensure that investors receive information material to their purchase decisions. The SEC’s approach demanding costly compliance with the pre-crypto regulations reduces the payoffs of digital-asset issuers without providing clear economic benefits to investors. This outcome is inconsistent either with Pareto-efficiency or with Kaldor-Hicks efficiency criteria. Put differently, cui bono? The Article also demonstrates that market self-regulation and self-correction are unrealistic because crypto-market gatekeepers and reputational intermediaries are underdeveloped and exhibit fundamental capacity and reputational constraints. The Article is the first research project applying cost-benefit analysis (“CBA”) to the federal securities law in light of the respective payoffs of cryptoasset issuers and investors. The Article contributes to the following three strands of literature: the doctrinal and empirical research on DLT; the scholarship on the application of game theory and CBA in securities law; and the long-standing policy debate about the best regulatory media, including formal rules, informal pronouncements, and enforcement.
{"title":"The SES, Digital Assets, and Game Theory: When Strategic Goals and Tactics Don’t Meet","authors":"Yuliya Guseva","doi":"10.2139/ssrn.3547787","DOIUrl":"https://doi.org/10.2139/ssrn.3547787","url":null,"abstract":"Cryptoassets have taken off with the advent of distributed ledger technology (“DLT”). Many of these innovative assets fall under the jurisdiction of the Securities and Exchange Commission (“SEC”). Applying a game-theoretic approach, this Article demonstrates that although the SEC has exhibited profound enforcement acumen in regulating the evolving digital-asset market, its overall policy is inefficient. \u0000 \u0000The SEC has avoided making a costly investment in drafting an omnibus rule on cryptoassets. Instead, it has enveloped these innovations within the circumference of the preexisting, pre-crypto regulatory regime. This result has been achieved primarily through enforcement. The enforcement data examined in the paper suggest a trend toward issuer compliance with the securities regulation. Alas, the regulations per se do not address the risks that investors encounter in the digital-asset market. The rules fail to adequately mitigate agency costs and information asymmetry and to ensure that investors receive information material to their purchase decisions. \u0000 \u0000The SEC’s approach demanding costly compliance with the pre-crypto regulations reduces the payoffs of digital-asset issuers without providing clear economic benefits to investors. This outcome is inconsistent either with Pareto-efficiency or with Kaldor-Hicks efficiency criteria. Put differently, cui bono? The Article also demonstrates that market self-regulation and self-correction are unrealistic because crypto-market gatekeepers and reputational intermediaries are underdeveloped and exhibit fundamental capacity and reputational constraints. \u0000 \u0000The Article is the first research project applying cost-benefit analysis (“CBA”) to the federal securities law in light of the respective payoffs of cryptoasset issuers and investors. The Article contributes to the following three strands of literature: the doctrinal and empirical research on DLT; the scholarship on the application of game theory and CBA in securities law; and the long-standing policy debate about the best regulatory media, including formal rules, informal pronouncements, and enforcement.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132979943","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We aim to compare different allocation models to build a portfolio that includes a popular set of alternative risk premia, common to most traditional asset classes. Firstly, we review alternative risk premia, mainly Carry, Value and Momentum, then we create sub-styles and styles portfolios. On each asset class we try to compare in a unified framework different style's definitions, to assess how each choice affects the outcome. Finally we aggregate styles in a composite portfolio. All these steps require several decisions on whether and which risk targeting method to utilize and which allocation model to adopt. We show the main differences and consequences of each decision and how they may affect the final portfolio. Lastly, we cluster different solutions according to a dissimilarity criteria, determining which are the key steps that make strategies actually different from one another.
{"title":"Cross-Asset Style Premia Asset Allocation Process","authors":"Eugenio Raiteri, M. Malagoli","doi":"10.2139/ssrn.3516051","DOIUrl":"https://doi.org/10.2139/ssrn.3516051","url":null,"abstract":"We aim to compare different allocation models to build a portfolio that includes a popular set of alternative risk premia, common to most traditional asset classes. Firstly, we review alternative risk premia, mainly Carry, Value and Momentum, then we create sub-styles and styles portfolios. On each asset class we try to compare in a unified framework different style's definitions, to assess how each choice affects the outcome. Finally we aggregate styles in a composite portfolio. All these steps require several decisions on whether and which risk targeting method to utilize and which allocation model to adopt. We show the main differences and consequences of each decision and how they may affect the final portfolio. Lastly, we cluster different solutions according to a dissimilarity criteria, determining which are the key steps that make strategies actually different from one another.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128667357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Most Quant PMs have observed that while their alpha strategy delivers good returns, performance attribution have an unexpected behavior. It shows that while they are making money on Common Factor bets, they are systematically losing money on stock specific bets. The negative stock specific drift can be very significant. Understanding the causes of such negative contribution leads to significant performance improvement.
{"title":"Stock Specific Negative Return Drift in Optimized Portfolios","authors":"Dominic Clermont","doi":"10.2139/ssrn.3501326","DOIUrl":"https://doi.org/10.2139/ssrn.3501326","url":null,"abstract":"Most Quant PMs have observed that while their alpha strategy delivers good returns, performance attribution have an unexpected behavior. It shows that while they are making money on Common Factor bets, they are systematically losing money on stock specific bets. The negative stock specific drift can be very significant. Understanding the causes of such negative contribution leads to significant performance improvement.","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127153723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study is a review of Micro-Credit and Business Development Programmes in the Niger Delta Area of Nigeria as well as that of SPDC’s Micro-Credit and Business Development programme.
The Nigerian economy is one of the three largest in Africa and though rich in oil, it is one of the poorest in the world. The government economic programme for the years 1999-2003 was designed to reduce poverty, achieve faster and sustainable growth and raise living standards. And, the strategy focuses on the encouragement of the private sector to lead the process. The main macro-economic objectives are to achieve real GDP growth of 10 percent, and to contain inflation rate to single digits.
Thus, the macro-economic environment for growth of Micro and Small Enterprises (MSEs) can be regarded as increasingly becoming favourable. However, the unemployment rate in Nigeria and in the Niger Delta is disturbing. It is estimated to be about 50 percent and over 60 percent for school leavers and, poverty has deepened with 70 percent of Nigerians below the poverty line.
Since late in 1986, some 12 initiatives have been taken by the Federal Government to address the unemployment problem. Of particular relevance for this review, the measures were also meant to support Micro/small/medium Enterprise Development. (MSMED)
The National Directorate of Employment (NDE) programmes alone benefited only 1324975 persons over a period of 10 years or at a rate of 132498. For the Niger Delta (9 states), the total number of beneficiaries is estimated at 20223 in 1997 and 30852 in 2000. Compared with 4 million of unemployed persons in the Niger Delta alone, it can be concluded that these programmes have had little impact. Indeed, the unemployment and poverty situations seem to be worsening.
The size of Micro/small Enterprises sector in the Niger Delta in Nigeria as a whole is not known. Estimates by this review indicate that there could be a minimum of about 3750000 MSEs in the Niger Delta. This was based on the number of cooperatives in the Niger Delta. Some local practitioners believe the size could be above 5000000. This estimate is obviously on the low side, considering that hundreds of thousands more MSEs are not members of co-operatives societies.
The promotion of Micro/small Enterprise Development has become an industry and proof of the positive role of MSE’ in employment creation and growth of the economy need not be presented here. The constraints on growth and Development of the sector are instead identified and possible strategies for remedies proposed in this review. The main constraints discussed are financial, infrastructural and inadequate Business Development services.
Generally, Business Development is the process of promoting and assisting a Micro/small income generating Enterprise to grow and develop into a sustainable entity. The main instruments or services in support of Micro/small Enterprise Development are: training
{"title":"Review of Micro-Credit and Business Development Programmes in the Niger Delta Region of Nigeria","authors":"PROMISE CHIDI-AGBAI Iroegbu","doi":"10.2139/ssrn.3578508","DOIUrl":"https://doi.org/10.2139/ssrn.3578508","url":null,"abstract":"This study is a review of Micro-Credit and Business Development Programmes in the Niger Delta Area of Nigeria as well as that of SPDC’s Micro-Credit and Business Development programme.<br><br>The Nigerian economy is one of the three largest in Africa and though rich in oil, it is one of the poorest in the world. The government economic programme for the years 1999-2003 was designed to reduce poverty, achieve faster and sustainable growth and raise living standards. And, the strategy focuses on the encouragement of the private sector to lead the process. The main macro-economic objectives are to achieve real GDP growth of 10 percent, and to contain inflation rate to single digits. <br><br>Thus, the macro-economic environment for growth of Micro and Small Enterprises (MSEs) can be regarded as increasingly becoming favourable. However, the unemployment rate in Nigeria and in the Niger Delta is disturbing. It is estimated to be about 50 percent and over 60 percent for school leavers and, poverty has deepened with 70 percent of Nigerians below the poverty line.<br><br>Since late in 1986, some 12 initiatives have been taken by the Federal Government to address the unemployment problem. Of particular relevance for this review, the measures were also meant to support Micro/small/medium Enterprise Development. (MSMED)<br><br>The National Directorate of Employment (NDE) programmes alone benefited only 1324975 persons over a period of 10 years or at a rate of 132498. For the Niger Delta (9 states), the total number of beneficiaries is estimated at 20223 in 1997 and 30852 in 2000. Compared with 4 million of unemployed persons in the Niger Delta alone, it can be concluded that these programmes have had little impact. Indeed, the unemployment and poverty situations seem to be worsening.<br><br>The size of Micro/small Enterprises sector in the Niger Delta in Nigeria as a whole is not known. Estimates by this review indicate that there could be a minimum of about 3750000 MSEs in the Niger Delta. This was based on the number of cooperatives in the Niger Delta. Some local practitioners believe the size could be above 5000000. This estimate is obviously on the low side, considering that hundreds of thousands more MSEs are not members of co-operatives societies.<br><br><br>The promotion of Micro/small Enterprise Development has become an industry and proof of the positive role of MSE’ in employment creation and growth of the economy need not be presented here. The constraints on growth and Development of the sector are instead identified and possible strategies for remedies proposed in this review. The main constraints discussed are financial, infrastructural and inadequate Business Development services.<br><br>Generally, Business Development is the process of promoting and assisting a Micro/small income generating Enterprise to grow and develop into a sustainable entity. The main instruments or services in support of Micro/small Enterprise Development are: training","PeriodicalId":143061,"journal":{"name":"Practitioner Articles & Resources eJournal","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2001-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123287534","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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