The Central Bank of Nigeria (CBN) was established to build confidence in the economy and improve people’s living standard. The CBN Act of 2007 of the Federal Republic of Nigeria charges the Bank with the overall control and administration of the monetary and financial sector policies of the Federal Government. CBN also ensures monetary and price stability; issues legal tender currency in Nigeria; maintains external reserves to safeguard the international value of the legal tender currency; promotes a sound financial system in Nigeria; and, remarkably, acts as Banker and provider of economic and financial advice to the Federal Government. Additionally, CBN has over the years performed some major developmental functions that encompass key sectors of the Nigerian economy (financial, agricultural and industrial sectors). Overall, these mandates are carried out by the Bank through its various departments.
On this backdrop, variables for the research topic are divided into two key parts namely:
- Exogenous [independent] variable – Real Gross Domestic Product
- Endogenous [dependent] variables; – Money Supply, Liquidity Ratio, and Loan to Deposit Ratio
Econometric model for the study includes:
RGDP = β0 + β1MS +β2 LR + β3LDR + µ
Where:
RGDP is Real gross domestic product.
MS is Money supply into the economy.
LR is Liquidity ratio.
LDR is Loan to deposit ratio.
µ is the error term.
β1 β2 β3 are the parameters to be estimated.
The data below were obtained from CBN statistical bulletin 2021.
| Year | GDP | MS1 | LDR | LR |
| 2010 | 55,469.35 | 11,101.46 | 52.29 | 27.39 |
| 2011 | 63,713.36 | 12,628.32 | 44.77 | 42.02 |
| 2012 | 72,599.63 | 15,503.41 | 42.31 | 49.72 |
| 2013 | 81,009.96 | 18,743.07 | 37.56 | 46.23 |
| 2014 | 90,136.98 | 20,415.61 | 63.61 | 38.27 |
| 2015 | 95,177.74 | 20,885.52 | 69.58 | 42.35 |
| 2016 | 102,575.42 | 24,259.00 | 79.95 | 45.95 |
| 2017 | 114,899.25 | 28,604.47 | 72.84 | 54.79 |
| 2018 | 129,086.91 | 29,774.43 | 60.16 | 65.04 |
| 2019 | 145,639.14 | 34,257.90 | 58.73 | 104.20 |
| 2020 | 154,252.32 | 36,038.01 | 60.33 | 67.60 |
| 2021 | 176,075.50 | 40,318.29 | 60.69 | 61.20 |
Economic growth is the dependent variable and is proxy by real gross domestic product and influence of banking sector is the independent variables and is proxy by liquidity ratio, money supply and loan to deposit ratio.
Topic 2; The Link between CSR and Business Performance; An Example of MTN Nigeria
Corporate Social Responsibility (CSR) is a broad subject that takes different forms depending on the company and industry. In the context of this study, it is a concept emphasizing that organizations be socially accountable to themselves, their stakeholders, and the public. CSR is not only about ethical business o social engagement, but also an idea that supports ‘giving back to the people’ (that is, investing in community development projects to improve quality of life).
Thus, CSR is proxy by sponsorship and investment in host communities.
Business performance is proxy by Net profit after tax of MTN.
| Year | Net profit after tax [Billion] | Sponsorship [Billion] | Investment in host community [Billion] |
| 2010 | 49.51 | 18.14 | 315.39 |
| 2011 | 64.64 | 24.74 | 296.22 |
| 2012 | 89.53 | 29.16 | 255.99 |
| 2013 | 54.83 | 33.73 | 175.99 |
| 2014 | 58.96 | 15.01 | 150.99 |
| 2015 | 68.08 | 22.22 | 125.99 |
| 2016 | 77.90 | 11.19 | 177.96 |
| 2017 | 81.1 | 16.19 | 116.20 |
| 2018 | 145.7 | 9.53 | 273.84 |
| 2019 | 208.3 | 9.95 | 284.44 |
| 2020 | 205.2 | 15.65 | 277.95 |
| 2021 | 298.7 | 26.64 | 255.67 |
Source; Audited Financial Report MTN 2021
Dependent variable – Net Profit after Tax
Independent variables – Sponsorship, Investment in Host Community.
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