Blog

BY

Ebikabowei Musah

Department of Guidance and Counselling,

University of Africa, Toru-Orua, Bayelsa State

mshebikabowei@gmail.com

https://orcid.org/0000-0001-8894-6260

ABSTRACT

Nigeria faces significant challenges related to security and sustainable development which have far-reaching implications for societal stability. This study explored these issues, and highlighted the interconnectedness of security concerns and development goals within the country. It indicated that counseling offers a valuable tool in addressing these challenges by fostering emotional resilience, promoting conflict resolution and enhancing the capacity of individuals and communities to adapt to changing circumstances. Through a counseling framework, individuals are better equipped to manage stressors that arise from insecurity and underdevelopment, ultimately contributing to a more stable society. The study therefore advocated for integrating counseling services into national policies as a strategic approach to achieving long-term stability and sustainable growth in Nigeria.

KEYWORDS: Security, Sustainable development, Counselling, Panacea, Societal stability.

INTRODUCTION

Nigeria, the most populous country in Africa, has faced persistent security and development challenges over the years. These issues range from terrorism, insurgency and ethnic conflicts to widespread poverty, corruption and underdevelopment. Groups like Boko Haram and other insurgent factions have intensified insecurity in the northern regions (Ojewale, 2021), while banditry, kidnappings and communal clashes plague other parts of the country (Zubairu, 2020). These security concerns have significantly hindered economic growth, undermined social cohesion and stunted development

efforts. Moreover, the lack of equitable resource distribution and inefficient governance has deepened the socio- economic disparity, contributing to widespread discontent and instability (Musa, 2021).

The interplay between security and sustainable development is critical for a nation’s progress. Security ensures stability, which is a prerequisite for sustainable development.Conversely, underdevelopment, poverty and inequality can exacerbate insecurity, creating a vicious cycle. In Nigeria, addressing the intersection of security and development is essential to break this cycle. Achieving sustainable development requires creating an environment that fosters peace, social justice and equitable economic opportunities. Without addressing security, development efforts will be undermined, while failing to pursue development leaves security vulnerable. Therefore, a holistic approach is necessary to address both security and development in tandem to ensure long-term societal stability (Siloko, 2024).

This article aims to explore how counseling can play a pivotal role in addressing Nigeria’s intertwined security and development challenges. By offering psychological support, guidance and conflict resolution strategies, counseling can promote emotional well-being, social harmony and resilience. The article posits that counseling services can help individuals and communities to cope with the psychological effects of insecurity and underdevelopment, fostering a more stable and peaceful society. Additionally, it emphasizes the need for proactive counseling interventions as part of a broader strategy to achieve both security and sustainable development in Nigeria.

Understanding Security in Nigeria

According to Igbini, (2022), Nigeria is currently grappling with a myriad of security challenges, many of which stem from various socio-political and economic factors. One of the most significant threats is the ongoing insurgency by Boko Haram and the Islamic State of West African Province (ISWAP), particularly in the northeastern part of the country. These groups wreaked havoc through acts of terrorism, mass killings and the displacement of millions. The violence is rooted in religious extremism and the impact on civilian populations has been devastating (Africa Centre for Security Studies, 2021).

Banditry and kidnapping are widespread across the northwestern and central regions, where armed groups terrorize communities with mass abductions, robberies and attacks on villages. This wave of criminal activity has disrupted agricultural productivity and further impoverished affected areas (Soyinka et al, 2022). Additionally, the longstanding clashes between nomadic Fulani herdsmen and farming communities in the Middle Belt are fueled by competition over dwindling resources like arable land and water, leading to deadly confrontations (Creed et al, 2023). In the Niger Delta, militancy remains a significant threat. Though somewhat reduced compared to past years, groups targeting oil infrastructure continue to disrupt the country’s oil production, threatening Nigeria’s most vital revenue stream. Political instability and ethnic tensions add to the security concerns as violence often erupts around election periods or over local disputes (Duerken, 2021).

Impact of Insecurity on Societal Development The security crisis in Nigeria, as opined by Igbini (2022), has severely impacted its socio-economic development. Economically, persistent insecurity has undermined

BY

¹Ali, Prince Edisemi; ²Nyakno-Ekpa, Gloria; ³Nwachukwu, Henry Chinedu; ³Ettu, Peace Chiamaka; Allison, Trust-Jah Tuaegwuchukwu;* ⁵Okonkwo, Ikenna Martins; Iwuchukwu, Caleb Uchechukwu

 ¹Department of Psychology, Imo State University, Owerri, Imo State, Nigeria and

 Department of General Studies, Bayelsa State Polytechnic, Aleibiri, Bayelsa State, Nigeria.

²Department of Psychology, University of Ibadan, Oyo State, Nigeria.

³Department of Psychology, University of Nigeria, Nsukka, Enugu State, Nigeria.

⁴Department of Psychology, Imo State University, Owerri, Imo State, Nigeria and

Interdisciplinary Research Unit, West African Society of Parenteral and Enteral Nutrition, Abuja, Nigeria and Georgia, USA.

⁵Department of Religion and Cultural Studies, University of Nigeria, Nsukka, Enugu State. Nigeria.

⁶Department of Religious Studies and Philosophy, Delta State University, Abraka, Delta State, Nigeria.

*CORRESPONDING AUTHOR

Allison, Trust-Jah Tuaegwuchukwu

Department of Psychology, Imo State University, Owerri, Imo State, Nigeria.

Interdisciplinary Research Unit, West African Society of Parenteral and Enteral Nutrition, Abuja, Nigeria and Georgia, USA

 trustjah.allison.186731@unn.edu.ng

               WhatsApp Number: (+234) 8166282392

ABSTRACT

Religious fundamentalism, self-concept, and self-esteem are connecting psychological constructs that significantly influence individual behavior and well-being. Though various researches have explored these variables independently, there is however the need to evaluate their intricate relationships, particularly among young adults. This study aimed to examine the relationship between religious fundamentalism, self-concept, and self-esteem among young adults. A cross-sectional survey design was employed, utilizing standardized measures to assess religious fundamentalism, self-concept, and self-esteem. A sample of 300 young adults (ages 18-30) completed an online survey comprising Demographics, Religious Fundamentalism Scale, Tennessee Self-Concept Scale, and the Rosenberg Self-Esteem Scale. Data obtained were analyzed using descriptive statistics, correlation analysis, and regression modeling. Findings revealed significant positive correlations between religious fundamentalism and self-concept (r = 0.25, p < 0.01) and between self-concept and self-esteem (r = 0.56, p < 0.001). However, the relationship between religious fundamentalism and self-esteem was more complex, with a moderate positive correlation (r = 0.18, p < 0.05) that varied depending on individual differences in self-concept. Regression analysis indicated that self-concept significantly predicted self-esteem (β = 0.53, p < 0.001), while religious fundamentalism had a smaller but significant predictive effect (β = 0.15, p < 0.05). The findings suggest that interventions aimed at promoting positive self-concept and self-esteem among young adults should consider the role of religious fundamentalism. Mental health professionals and religious leaders can collaborate to develop strategies that foster a positive self-concept, leveraging the potential benefits of religious fundamentalism while mitigating potential drawbacks. Future research should explore these dynamics further, incorporating longitudinal designs and diverse samples to deepen the understanding of these complex relationships. This study highlights the intricate relationships between religious fundamentalism, self-concept, and self-esteem among young adults. It also indicated that religious fundamentalism can contribute positively to self-concept and, indirectly, to self-esteem, individual differences in self-concept play a crucial role in shaping self-esteem outcomes.

Keywords: Religious, Self, Esteem, Adult, Well-being

INTRODUCTION

The complex interplay between religious fundamentalism, self-concept, and self-esteem among young adults has garnered significant attention in recent years (Hill & Pargament, 2003; Koenig et al., 2012). As a psychological construct, “religious fundamentalism refers to the adherence to a set of core beliefs and practices that are considered essential to one’s faith, often accompanied by a sense of certainty and exclusivity” (Altemeyer & Hunsberger, 2005, p. 122). This phenomenon can have profound implications on an individual’s sense of identity, self-worth, and overall well-being. Religious fundamentalism can be understood as a multifaceted construct that encompasses cognitive, affective, and behavioral dimensions (Saroglou, 2011). As opined by Emmons (2005), individuals with high levels of religious fundamentalism tend to exhibit greater certainty and conviction in their beliefs, which can provide a sense of purpose and meaning in life. However, this conviction can also lead to exclusivist attitudes and behaviors that could potentially influence interpersonal relationships and social interactions (Hunsberger & Jackson, 2005).

Self-concept refers to the collection of beliefs, attitudes, and perceptions an individual holds about themselves, encompassing various aspects of identity, including physical, emotional, and social dimensions (Shavelson et al., 1976). A positive self-concept is essential for psychological well-being, as it enables individuals to develop a sense of self-worth, confidence, and resilience (Tafarodi & Swann, 1995). Thus, Markus and Kitayama (1991) reported that self-concept is shaped by various factors, including social interactions, life experiences, and cultural background. Self-esteem, a closely related construct to……

Odei Moses Adeiza PhD

Department of Religious Studies, Faculty of Humanities

Ajayi Crowther University, Oyo

Oyo State, Nigeria.

E-mail: venodei4real2019@gmail.com; am.odei@acu.edu.ng

Mobile: +2348038095140; +2349030792304

                                           Orcid id: 0009-0005-1151-6445

ABSTRACT

In the crucible of early Christian persecution, martyrdom transformed death into a fountain of life, embodying the paradox of “rotting produces life.” This study explores how the decay of martyrs’ bodies fostered spiritual and communal renewal, drawing on the metaphor of a seed that dies to bear fruit. Previous studies have examined martyrdom’s theological and social roles, noting its contribution to Christian identity and growth, yet few have synthesized the natural imagery of decay and renewal as a unified principle. This study aims to fill this gap by analyzing martyrdom as a generative act that bridges death and life, justified by its centrality to early Christian theology and culture. Employing Durkheim’s theory of collective effervescence, the study frames martyrdom as a ritual that galvanized community cohesion. It focuses on martyrdom texts from the first to fourth centuries, justified by their formative influence on Christian thought. The study underscores martyrdom’s significance in shaping religious resilience and offers insights for contemporary theological reflection. The study revealed martyrdom’s role in transforming decay into renewal through sacrifice, inspiring communal vitality. The study recommended interdisciplinary research and public engagement with martyrdom narratives. In conclusion, this paradox illuminates the cyclical nature of sacrifice, offering timeless lessons on life emerging from death.

Keywords: Martyrdom, Decay, Renewal, Early Christianity, Sacrifice

INTRODUCTION

In the crucible of early Christian history, where persecution was both a crucible and a catalyst, the paradox of decay and renewal emerges as a profound theological and existential motif. The principle of “rotting produces life,” rooted in the natural imagery of a seed that must die to bear fruit, finds its most vivid expression in the phenomenon of martyrdom. For early Christians, martyrdom was not merely an act of ultimate sacrifice but a transformative process through which death—literal, physical decay—engendered spiritual vitality, communal resilience, and eschatological hope. This paradox, famously encapsulated in Jesus’ teaching in John 12:24, “Unless a grain of wheat falls into the earth and dies, it remains alone; but if it dies, it bears much fruit,” reverberates through the writings, practices, and collective memory of the early Church.

Martyrdom, as an embodiment of this principle, was not a passive submission to death but an active participation in a divine cycle of destruction and regeneration, where the rotting of the body in martyrdom fertilized the soil of the Church’s growth.  The fascination of this paradox lies in its counterintuitive logic: how could the gruesome spectacle of death, often accompanied by torture and public humiliation, become a source of life, inspiration, and triumph for a fledgling religious movement? Early Christian martyrs, from the apostles to the victims of Roman persecutions under emperors like Nero and Diocletian, embraced death not as an end but as a generative act. Their blood, as Tertullian famously declared, became “the seed of the Church” (Tertullian, Apologeticus, 50.13).

This study explores the theological, social, and cultural dimensions of this paradox, examining how the decay of the martyr’s body was perceived as a life-giving force that sustained and expanded early Christianity. By delving into the interplay of death and renewal, we uncover how martyrdom served as a powerful mechanism for identity formation, theological articulation, and communal cohesion in a world hostile to the Christian message. This exploration is not merely historical but resonates with broader philosophical questions about sacrifice, transformation, and the cyclical nature of existence.

Theoretical Framework

The paradox of decay and renewal in early Christian martyrdom can be analyzed through several theoretical lenses, each illuminating different facets of the phenomenon. This section draws on theological, sociological, and anthropological perspectives to provide a robust foundation for understanding how martyrdom transformed death into a life-giving act. At the heart of early Christian martyrdom lies a soteriological perspective rooted in the theology of the cross. The death of Jesus Christ, understood as a redemptive sacrifice, provided the archetype for martyrdom. Theologically, martyrdom was seen as an imitation of Christ (imitation Christi), where the martyr’s suffering and death participated in the salvific work of Jesus (Boyarin, 1999)………

BY

¹TYONA TIMOTHY, ²YUA HENRY AND ³TEMITOPE ABIODUN OJE

¹Joseph Sarwuan Tarkaa University, Makurdi-Benue staste

²Department of Banking and Finance, Federal Polytechnic Wannune, Benue State

³Scholar, College of Business and Leadership, Eastern University, St Davids, Pennsylvania

CORRESPONDING AUTHOR

YUA HENRY

Department of Banking and Finance,

Federal Polytechnic, Wannune

Benue State. Nigeria

ABSTRACT

This study examined empirically, the returns and volatility spillover effects between oil price and sectoral stocks in Nigeria using high frequency daily data on oil price and eleven sectors namely Agriculture, Conglomerates, Construction/Real Estate, Consumer Goods, Financial Services, Health Care, ICT, Industrial Goods, Natural Resources and Oil & Gas. The main objective of which is to examine the return and volatility spillover effects between the sectors and oil price. The study is anchored on three theories; the Discounted Cash Flow Model, the Capital Assets Pricing Model and the Arbitrage Pricing Theory. The data on the variables listed above were obtained from Nigerian Stock Exchange Group and US Energy Information Administration. The study utilized the Vector Autoregressive Moving Average-Generalized Autoregressive Conditional Heteroskedasticity (VARMA-GARCH) multivariate volatility model for estimation where findings indicate bidirectional return and volatility spillover effects, between oil market and majority of the stock sectors. Additionally, results indicate low Constant Conditional Correlations (CCC) coefficients between oil and stock prices. The study concludes that there exist both return and volatility spillover effects, and that both return and volatility in both markets are fueled by own return and volatility effects and therefore recommends among others construct hedge ratios and portfolio weights to as a guide to minimize loses, as well as factor in their decision making own short- and long-term shocks.

Keywords: Disaggregated approach, Oil price, Stock returns, Varma-garch model, volatility

INTRODUCTION

The Nigerian capital market is seen as one of the fastest growing in Africa and indeed other emerging market economies (EMEs) worldwide, making it the only three frontier markets in Africa since 2002. This provides opportunities for investors both domestic and foreign to earn high return on their investments culminating in large capital inflows into the economy.

However, the activities of the stock market have not been without challenges, leading to decline in stock returns. For instance, daily stock prices on the floor of the NSE show that between 2008 and 2010, prices decreased by 25%, leading to the decline in market capitalization to 9.7 trillion naira from 12.5 trillion naira in a space of 6 months, as reported by CBN (2009, 2011). The NSE All Share Index in January, 2020 decreased to about 13% and further dropped below 11% by December of the same year. Also, almost all the industrial sectors’ indices drastically declined between March and July, 2020, especially oil and gas, industrial goods and banking sectors. In order to stem these dwindling fortunes, the authorities took measures such as the introduction of the Central Securities Clearing System (CSCS) to aid computerization, introduction of a single clearing house for all shares traded on the exchange, reclassification of industrial sectors into 11 sectors from 33, to conform to global best practices, opening up the market to attract foreign participation, etc.

Oil, a source of energy, play a strategic role in the performance or otherwise of global economies, as it affects the consumption and investment decision of households and business firms at various times. An important discourse in the financial economics literature of recent is the understanding of the complex dynamics that explains the volatility of oil prices over time as it is critical for the growth and development of any economy. It is pertinent to note that almost all issues of production had to do with oil (Malik and Rashid, 2017; Mansoor, 2020; Castro and Rodroguez, 2024). Oil is said to occupy an important place in the world economy since it is considered as an important source of energy in the world, not just as fuel and source of energy for heating, but also as raw material in various production processes (Al-Quduh, 2015). Ordue et al (2024) thus averred that fluctuations in the prices of oil have over bearing influence on other economic activities of a nation. Oil price have witnessed large volumes of fluctuations beginning from the big downward trend in oil prices of 1970 (Hamilton, 1983). Empirical evidence from previous studies like Abeng (2017); Killian and Park (2009); Yua, H., Epor, S.O., and Utor V., (2023), linked changes in oil prices with weak financial systems, stunted growth of the economy, increasing inflation, high interest rates depreciating exchange rate and downward trend in unemployment situations. The price of oil was below $10 in 1986, and around $23 in the 1990s. It peaked at $145 in 2008 before declining to…..

BY

¹Adu-Peters R. Olusola and ²Babalola Olatomide Emmanuel

¹Department of History and Diplomatic Studies, Adeyemi Federal University of Education

 Ondo Nigeria

 ²Department of History and International Studies, Bamidele Olumilua University of Education,      Science and Technology, Ikere, Ikere Ekiti, Ekiti State, Nigeria

CORESSRPONDING AUTHOR

Adu-Peters R. Olusola

¹Department of History and Diplomatic Studies

Adeyemi Federal University of Education

Ondo Nigeria

raliatsola@yahoo.com

+2347039000896

ABSTRACT

This study is a historical survey, it identified the major reason for the depleted food basket of the nation as the shift from major food crop production to oil economy beginning from the 1950s. The already educated young men who provided labour in support of their fathers at the various farms began to move to the urban centers for employment at the oil companies, leaving the food crops to suffer resulting in a major set back in food production. Nigerian youths left food crop farming to enjoy the national cake, thereby creating rural decay in which the old farmers solely grappled with the needed labour to keep the system in operation. This study made use of archival materials and oral interview conducted with Respondents in the study area. Books, journal articles, letters, memoirs and the Internet were the secondary source of data collection. Findings showed that labour flight from the Ondo Province since the 1950s, consequent upon oil economy, was principally responsible for paucity of food in the area. It elicited the veracity of the huge loss of healthy food items since the era of oil exploration as well as its irrecoverable impact on the the people in the study area. This study therefore suggested a more pragmatic economic policy towards agriculture that could lead to of opening up of fallow land to encourage the youth for food crop production farming for sustainable development.

Keywords: Oil Economy, Labour Shift, Milieu, Food Scarcity, Ondo Province.

INTRODUCTION

The history of Ondo Province, according to (Adinlewa 1952) was traced to 1915 under Sir Lord Lugard. It was a new name given to the areas located in the old Ondo area occupied by the Akure, Ondo, Ekiti, Owo, Akoko and Okitipupa groups. (Okajare 2004) corroborates that the Province was initially made up of four major Divisions known as Ondo Division, Owo Division, Okitipupa Division, Ekiti Division and later, Akoko Division. The late inclusion of Akoko as a Divisional entity was due to a long period of dominance of the place by foreign powers; beginning with Nupe belligerents up till 1897, when the Royal Niger Company took over and cleared the paths for effective colonial administration. During colonial rule, Akoko was administered directly from Kabba. In 1909, it gained partial autonomous judicial power which was later strangulated by internal power tussles between the kings of Oka and Ikare towns. Akoko remained under the influence of Kabba up till 1^st January, 1919 when it officially became a District under the Owo Division. At this period, there was a sort of diplomatic struggle between Owo and Akoko which continued up till 1^st April, 1935, when full autonomy was granted to Akoko as a Division in the Ondo Province of South-western Nigeria. Beer (1976) described the indigenous people of Ondo Province to have subsisted on farming of food crops, fishing and craftsmanship prior to the oil economy, with the use of basic tools at different stages before the colonial influence, and the immediate sources of farm labour were from the family members, slaves and friends, through co-operative workforce. Ikuejube (2005) elicited that the oil producing area of Ilaje as other Yoruba communities grew food crops such as maize, plantain and rice along the river banks while fishery remained dominant in their economic engagements.

Aghalino (2012) & Okpalaeke (2001) traced the history of oil exploration to the German Bitumen Corporation in the 1930s, when oil prospecting licence was issued to Shell BP in the oil producing area of Nigeria in 1937. Dike (1962) reported that the Oloibiri large quantity discovery in 1955 as well as Oketie (2008) indication that the Boma, Afam and Araromi Obu episodes significantly presented Nigeria as an oil producing nation-state. Hence, Exxon Mobil launched its operation by drilling about three deep wells in Lagos in 1955 and the first tapping was carried out by Shell BP in 1959 for commercial purpose.  

Oil Boom and Labour Loss

The Oil economy triggered the migration of the workforce to the urban areas, thereby constituting a great economic challenge to national economy. A cursory look at the relevance of the agricultural sector stemmed from the postulation of Ajibefun & Akadiri (1999) that it contributed over sixty percent (60%) to the Gross Domestic Products of Nigeria in the 1960s, despite its dependence on its peasant farmers with the use of traditional methods of cultivation. Invariably, the farmers produced 70% for export purpose while the remaining was for basic consumption. Berry (1987), Davies (2014) as well as Agboola (1965) opined that a critical economic fallout of the foregoing was  an unabated decline in the agricultural sector, consequent upon the new found oil economy, precipitated by changes in government economic policies in support…..

BY

OBIRE KENNEDY OGHENESUVWE AND FRANCIS I. OGOSI

DEPARTMENT OF BUSINESS ADMINISTRATION, WESTERN DELTA UNIVERSITY, OGHARA, NIGERIA

CORRESPONDING AUTHOR

FRANCIS I. OGOSI Ph.D

DEPARTMENT OF BUSINESS ADMINISTRATION

WESTERN DELTA UNIVERSITY, OGHARA, NIGERIA

Email : francis.ogosi@wdu.edu.ng

Orcid ID :0000-0002-3892-4175

ABSTRACT

The study examined the power of female entrepreneurship through the use of a financial technology, or FinTech, in Kwale, Delta State, Nigeria. It evaluated the impact of FinTech on the capacity of women-led micro, small, and, medium-sized enterprises (MSMEs) to access credit, insurance and savings. It further examined how FinTech can provide women in semi-urban and rural settings with easy-to-use financial services that could help them overcome the challenges of collateral, digital illiteracy, and a low availability of financial services. A Likert scale structured questionnaire based on 4 points rating was used to collect data on 384 female entrepreneurs. The analysis of simple linear regression was done using SPSS ver. 27. The results indicated that FinTech has a positive and statistically significant effect on access to credit (p=0.000) and savings (p=0.000) but did not affect insurances in an equally favorable way (p=0.083). Findings from this study showed that FinTech offered the effective tools that could support financial inclusion especially online lending and savings. However, the study highlighted the need for FinTech insurance products uniquely tailored to the needs of female entrepreneurs resident in Kwale. The study suggested the development of bespoke and affordable insurance products to maximize the benefits of Fintech solutions, indicating that FinTech firms should work with insurance companies to provide insurance products that could be more suitable to the needs of women entrepreneurs. The study therefore recommended the establishment of laws and policies aimed at enhancing the financial education and digital literacy of women in business/entrepreneurship.

Keywords: Credit Access, Financial Technology, Financial Inclusion, Insurance Access, Savings Access, Economic Empowerment.

JEL Classification Codes: D14 ; J16; G21; I38; L86 ; O16l O55 

INTRODUCTION

Some of the key issues affecting the financial services industry in the emerging economies particularly in Nigeria include lack of resources, poor infrastructure and restricted access to official financial services. As a result of these issues, a good number of people, especially women, cannot fully exploit conventional banking and financial services. Sociocultural inhibitors, absence of collateral and even poor digital literacy often complicate this exclusion among the women in business in Nigeria. As a result, such women tend to rely on illegitimate modes of finance which are not safe and hardly allow them to grow their businesses (Chiejina, 2024; Beck et al., 2007). The ratio of women to men accessing credit, insurance, and savings products is still largely unequal in most regions especially semi urban and rural regions such as Kwale, Delta State, to ensure the promotion of financial inclusion.

FinTech is an ever-changing factor that could defeat these challenges and promote financial inclusion. FinTech is a type of financial products and services provided on a digital platform and using sophisticated technology that can significantly enhance financial inclusion of underprivileged groups; particularly female entrepreneurs. Some of the tools that FinTech provides are digital payment systems, peer-to-peer lending, and mobile banking, which provide women with an opportunity to access the required financial products independently of the traditional, often inaccessible financial organizations (Dorfleitner & Hornuf, 2017; AlMomani & Alomari, 2021). FinTech is believed to have the potential to empower the female entrepreneur through accessible, scalable and affordable financial solutions that can enhance the growth of their enterprises.

As reported by Damanpour & Aravind, (2012) and Crossan & Apaydin, (2010), FinTechs engage Innovation in the development and deploring of business models and technologies as a key characteritics of their financial services delivery. They also provide solutions such as micro-insurance, savings tools, and credit products that are specifically tailored to the needs of female entrepreneurs, a great breakaway from traditional financial systems in the case of women entrepreneurs in Nigeria as opined by Rubanov, (2022). These financial solutions offer women financial services through their phones- now very prevalent even in towns that are semi-urban and rural settings. This FinTech approach to financial services help women evade the inconveniences of physical bank offices. Such a shift is particularly pivotal in such locations as Kwale where the absence of infrastructure and the geographical constraints often deprive female entrepreneurs the complete access to formal financial services.

¹YUA PAUL MKUMA, ²YUA HENRY AND TEMITOPE ABIODUN OJE

¹Banking and Finance Department, Nmandi Azikiwe University, Awka Anambra State, Nigeria

²Department of Banking and Finance, Federal Polytechnic Wannune

³Scholar, College of Business and Leadership, Eastern University, St Davids, Pennsylvania

CORRESPONDING AUTHOR

YUA HENRY

Department of Banking and Finance,

Federal Polytechnic, Wannune

Benue State. Nigeria

ABSTRACT

This study examined the causal relationship between selected financial development indicators and economic growth in Nigeria. The motivation behind the study is to contribute to the debate whether financial development leads economic growth or is the reverse in Nigeria and also close the gap in literature on the near consensus that financial development was one of supply leading, demand following or bidirectional. Specifically, the study analysed the causation between ratio of money supply to GDP (M₂/GDP), ratio of private debt to total debt securities (P/TDS), lending-deposit spread (LDS), liquidity ratio (LR) and stock market returns (SMR) against economic growth. Secondary data were sourced from the Central Bank of Nigeria Statistical Bulletin. The data were checked for unit root and diagnosed for serial correlation, heteroskedasticity, and stability. The data were also subjected to E-GARCH, Johansen Cointegration, vector error correction model, and Granger causality tests. The study found bidirectional causation between financial development and economic growth when ratio of money supply to GDP (M₂/GDP) was applied. It also found that financial development leads economic growth using lending-deposit spread (LDS) and liquidity ratio (LR) while economic growth leads financial development when ratio of private debt to total debt securities (P/TDS) and stock market returns (SMR) was used thus providing evidence to support supply-leading hypothesis, demand-following hypothesis and bidirectional relationships between the variables. The study therefore concludes that financial development exhibits unidirectional and bi-directional causality all at the same time depending on the variable under consideration. Thus, the study recommends among others financial sector reforms that engender financial access, real sector growth, sound corporate governance and ease of doing business in Nigeria.

Key words: Bidirectional causality, demand-following hypothesis, financial development, supply-leading hypothesis

INTRODUCTION

Financial sector development significantly influences economic growth by improving the quality and quantity of financial services. It improves investment information, corporate governance, trading, diversification, risk management, savings mobilization, and facilitates trade. It also promotes technological innovation, enhancing productivity and efficient resource allocation, (King & Levine, 1993; Levine, Loayza, & Beck, 2000)

The banking system provides debt and finance to investors and governments, while the stock market offers equity and direct finance. Stock market performance, measured by indexes, is a key indicator of a country’s economic strength and development, (Adjasi & Biekpe, 2006; Emenuga, 1997, Akwam, & Yua, 2021). Stock market returns volatility measures the dispersion around a security’s mean return over time. It provides information about future economic activity and structural change, which can depress GDP growth. Structural change consumes resources, and an increase in volatility raises shareholders’ compensation for bearing systematic risk. Frimpong and Oteng-Abayie (2006) argue that stock market volatility triggers a rise in cost of capital and directly affects economic growth. The growth rate of GDP per capital is a crucial indicator of economic prosperity, as it represents the total market value of economic activities. However, the relationship between financial development and economic growth remains unclear.

The supply-leading and demand-following hypotheses, popularized by Patrick (1966), suggest that financial development causes economic growth, while economic growth causes financial development. Supporters of the demand-following hypothesis argue that if income grows at a certain pace, the demand for financial assets also grows. Recent developments in Asian economies, such as China, support this theory, as their GDP growth has remained above 7% year on year for the past 25 years despite repressive financial systems. Also considering that the Nigerian financial sector has undergone and is at present undergoing series of reforms aimed at revamping the economy, making it competitive, and enhancing its performance, the economy still remain vulnerable and fragile against the backdrop of sustained recovery as opined by Wuave, Yua, & Yua, (2020); Yua, Epor, & Utor (2023); Ajekwe, Yua & Tyona (2024).

This study seeks to examine the causal relationship between selected financial development indicators and economic growth in Nigeria by capturing the four buckets of financial development measurement indicators (financial depth, access, efficiency and stability) using quarterly data and employing Granger causality test to ascertain the direction of such relationship.