Oyinlola Morounfoluwa Akinyede

In a global pandemic, there is a need for banks to improve service delivery through financial technologies. Since the fight against COVID-19 is the community responsibility, the role of banks in channeling cash to all stakeholders is essential for the contemporary human race. This study investigated the impact of the government response to COVID-19 on the resilience of banks. A multivariate Structural Equation Model (SEM) was used to specify the links between the exogenous factors (government’s social and financial responses) and the endogenous variables (resilience of bank customers, employees and investors). A research survey approach was used where 543 respondents were sampled. A self-constructed online questionnaire was used to harvest responses from customers, employees and investors of the selected banks. The result of the analysis showed a significant relationship between government’s social response and the resilience of bank customers. However, such a relationship does not hold between government’s social responses and other resilience indicators (employees and investors). Furthermore, the result revealed that government’s financial responses do not affect the resilience of banks. The study concluded that the government’s social response during the COVID-19 pandemic influenced bank customers’ resilience in Nigeria. It was recommended that banks, as part of the policy, develop tools to complement government actions during the pandemic, thereby ameliorating its impact on their customers.

Acknowledgment
The authors will like to acknowledge all respondents who took part in the survey.

Type of the article: Research Article

Abstract
The private sector remains the engine room for inclusive economic development, and its interaction with Foreign Capital Inflows (FCIs) is crucial for growth in emerging markets like Nigeria. This study examined the impact of FCIs (Foreign Direct Investment, Foreign Portfolio Investment, Foreign Debt, Foreign Aid & Foreign Remittances) on Private Sector Credit in Nigeria. To achieve this objective, time series data spanning a 26-year period (1998–2023) were harvested and used. The Augmented Dickey-Fuller test was used to ascertain the unit root, while the hierarchical regression technique provided the model estimates. From the results, foreign remittances emerged as the only significant contributor to private sector credit growth (β = 0.993, p < 0.05). This underscores the critical role of diaspora remittances in supporting financial intermediation and private sector development. The study concluded that foreign remittance is a major driver of private sector credit expansion in Nigeria. It is recommended that policy efforts should prioritize facilitating remittance inflows through a supportive regulatory framework. Emphasis should also be placed on leveraging remittances as a stable and development-oriented source of capital.

Type of the article: Research Article

Abstract
Despite several reforms aimed at financial digitalization, such as the Cashless Policy (CP), Bank verification number (BVN), Linkage of National identification number (NIN) to bank accounts, and the Naira Redesign, a large proportion of Nigeria’s rural population remains digitally excluded. This study addresses a pressing gap of whether financial reforms are facilitating sustainable digital banking adoption or compounding existing barriers among rural users in South-west, Nigeria. A cross-sectional survey research design was employed, drawing data from 376 rural dwellers across six South-western states of Nigeria. A structured questionnaire measured rural dwellers’ engagement with digital financial services and the influence of key reforms. Using a cross-sectional survey, responses were analyzed through PLS-SEM, where findings revealed that the Cashless Policy (β = 0.192, p = 0.008) and National Identification Number linkage reform (β = 0.332, p = 0.000) significantly enhanced digital banking adoption, while the Bank Verification Number reform (β = 0.069, p = 0.396) and Naira Redesign (β = 0.038, p = 0.539) showed no significant effects. The study concludes that while some reforms have improved financial inclusion, Bank Verification Number and currency redesign policies require a systematic approach to better address rural realities and therefore recommends infrastructure development and user-focused reforms to strengthen rural digital financial participation.

Acknowledgment
The authors would like to acknowledge all respondents who took part in the survey.

Type of the article: Research Article

Abstract
This study assesses the impact of debt overhang on Nigeria's public investment and economic growth. The paper utilized the Autoregressive Distributed Lag (ARDL) with annual time-series data from 1981 to 2024 and Myers' debt overhang, fiscal sustainability, and crowding-out effect theories. Public investment growth and economic growth rate were dependent variables, while debt overhang was independent. The control variables included interest rate, exchange rate, and inflation rate. The two models demonstrated a long-term cointegration connection. The results demonstrate a paradox which has practical implications because debt overhang produces statistically significant effects which show opposite results through its impact on both dependent variables.. Specifically, a unit increase in debt overhang is associated with a 0.744-unit increase in public investment (β = 0.744, p < 0.05) and a 0.153-unit decrease in economic growth (β = –0.153, p < 0.05). The findings support the efficiency trap hypothesis by determining that debt accumulation leads to increased investment but does not produce matching economic growth due to inefficient resource allocation in debt financing. In the short run, debt overhang negatively affects both variables, with the error correction term confirming rapid adjustment to equilibrium. Therefore, Nigeria is operating in an “efficiency trap.” The debt used to finance investment does not translate into economic growth due to poor project selection, resource misallocation, and inefficient project implementation. The null hypotheses for both models were of no significant effect and were rejected. We recommend that policymakers prioritize project appraisal methods and ensure that borrowed funds are directed toward quality investments.