The Determinants of Financing Pattern of Development Finance Institutions (DFIs) in Nigeria

12 Pages Posted: 11 Nov 2011

Date Written: November 11, 2011

Abstract

This paper assesses the determinants of financing patterns of DFIs in Nigeria with particular reference to the Bank of Industry (BOI). The annual reports and accounts form the data basis of the paper. A Multiple Regression Model was developed for the study incorporating two independent variables (liquidity and shareholders fund) and one major dependent factor (loans and advances), representing the bank’s financing pattern. The regression results reveal that liquidity is an important factor in explaining the financing pattern of DFIs in Nigeria. However, a contrary impact has been documented in relation to shareholders fund. The study recommends the need for BOI and other DFIs to maintain constant liquidity planning to keep abreast of enterprises’ credit needs in the form of loans and advances. Finally, the study stresses further the need for the government to as a matter of policy, encourage and support the establishment of more DFIs in a bid to address the financing needs of enterprises in Nigeria.

Suggested Citation

Tanko, Professor Muhammad and Attahir, Maiyaki Yusuf, The Determinants of Financing Pattern of Development Finance Institutions (DFIs) in Nigeria (November 11, 2011). Available at SSRN: https://ssrn.com/abstract=1958027 or http://dx.doi.org/10.2139/ssrn.1958027

Professor Muhammad Tanko (Contact Author)

Kaduna State University ( email )

Tafawa Balewa Way
P. M. B. 2339
Kaduna State
Nigeria

Maiyaki Yusuf Attahir

affiliation not provided to SSRN

No Address Available

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