THE CONTRIBUTION OF FINANCIAL DERIVATVIES TO PUBLIC AND PRIVATE SECTOR FINANCING IN NIGERIA
THE CONTRIBUTION OF FINANCIAL DERIVATVIES TO PUBLIC AND PRIVATE SECTOR FINANCING IN NIGERIA
Author(s): Chukwunonye AnyakohaSubject(s): Social Sciences, Economy, Financial Markets, Public Finances
Published by: Univerzita J. Selyeho, Fakulta ekonómie a informatiky
Keywords: financial derivatives; public sector financing; private sector financing; funding gaps; alternative financing;
Summary/Abstract: This paper examines the contribution of financial derivatives in bridging funding gaps in Nigeria's public and private sector. The period studied was from 1996 - 2014. Results show that financial derivatives have a positive significant influence on private sector borrowing, while it does not exert significant influence on public sector borrowing. The growth rate of financial derivatives transactions in Nigeria is low and insignificant and it amounts for a very low and insignificant proportion of transactions in the capital market. In order for financial derivatives to contribute significantly in filling funding gaps in Nigeria, effective sensitization programs and formulation of appropriate regulatory framework should be put in place in order to achieve needed deepening of Nigeria's capital and money market, and flexibility in financing development projects both in the private and public sector.
Journal: Acta Oeconomica Universitatis Selye
- Issue Year: 6/2017
- Issue No: 2
- Page Range: 21-34
- Page Count: 14
- Language: English