Browsing by Author "Oputa, N. C."

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    An Aggregate Import Demand Function for Nigeria: an Auto-Regressive Distributed Lag (ARDL) approach
    (Research Department, Central Bank of Nigeria., 2013-09) Englama, A.; Oputa, N. C.; Sanni, G. K.; Yakub, M. U.; Adesanya, O.; Sani, Z.
    The paper sought to examine the dynamics underlying the high import bills in Nigeria and proffered appropriate policy recommendations. In achieving this, the Autoregressive Distributed Lag (ARDL) technique was utilised to estimate the aggregate import demand function for Nigeria using the quarterly data covering the period 1970 to 2011. The paper found that the coefficients of external reserves, domestic consumer prices, level of income and exchange rate were all statistically significant, suggesting that these variables were important factors determining the level of imports in Nigeria. The short-run elasticity result revealed that Nigeria's aggregate demand for imports was both price and income elastic; implying that import demand would increase as the level of economic activity and domestic prices increased. Furthermore, the coefficient of the speed of adjustment revealed that it would take about 0.05 years for imports to respond to changes in any of the explanatory variables. The paper, therefore recommended appropriate fiscal policy measures to address the high level of consumer goods imports since it accounted for about 45.0 per cent of total imports between 2006 and 2011.
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    Determinants of currency composition of external reserves in Nigeria: an empirical investigation.
    (Central Bank of Nigeria, Research Department., 1997-03) Oputa, N. C.
    This paper discusses the determinants of the currency composition of external reserves in Nigeria. The empirical analysis reveals that the main factors influencing the currency composition of external reserves in Nigeria are international trade transactions and currency compostion of external debt, while reserve adequacy aided the diversification into more currencies. Exchange and interest rates were relatively significant in the share of each currency in the reserve basket. A review of CBN's external reserves policy confirmed that vigorous diversification was embarked upon when there was remarkable increase in the level of the reserve. However, current CBN reserve management policy shows a gradual shift from diversification to liquidity as reflected in the denomination of a larger proportion of the external reserves in dollar which makes for easy settlement of external trade obligations and other foreign commitments.