July 28, 2016

Portfolio Diversification Between Developed And Less Developed Economies

This study
examines the hedging effectiveness of portfolio investment diversification
between developed and developing economies; with focus on the Nigerian stock
asset vis–vis the stock assets of the United States (US) and United Kingdom
(UK). Its main contribution is in the analysis of optimal portfolio
diversification using optimal portfolio weight (OPW) and optimal hedging ratio
(OHR). Empirical findings show that the OPW and OHR are low, which indicates impressive
potential gains from combining Nigerian stock assets in an investment portfolio
with US and UK stock assets. In addition, exchange rate volatility is found to
pose stern limitation on the potential benefits of this portfolio
diversification arrangement. It is therefore recommended that the monetary
authority in Nigeria should pursue policies towards reducing exchange rate
volatility to the barest minimum. This will possibly attract more investors
from developed economies who might be willing to combine Nigerian stock in
their investment portfolio to minimize portfolio risk.

Download Label
March 13, 2018 - 4:00 am
867.98 kB
v.1.7 (stable)



Benefit Incidence Analysis Of Education And Health Spending In Nigeria

This brief examines the beneficiaries of government expenditure in the social sectors of education and health, and answers the question of equity in the provision of social services among different income groups.

Nigeria Economic Update (Issue 7)

Recent domestic Crude oil statistics from the Nigerian National Petroleum Corporation (NNPC), reveals an increase in total crude oil export sales in December 2016. Relative to November 2016, total export sales of crude oil rose from $166.18 million to $195.40 million in December 2016 representing 17.6 percentage (Month-on-Month) increase. The increase is attributable to a rise in crude oil production following a drastic (Year-on-Year) reduction in pipeline vandalism in the preceding month. Given that improvement in oil revenue is critical to fiscal sustainability and external balance, intensified efforts should be implemented towards the maintenance and sustainability of peace in the Niger Delta Region.