SECURITIZATION OF DEBT (DEBTEQUITY SWAP) IN THE NIGERIA
By
EZEH EMILIA NKECHINYERE B/4/PTE/N2002/001
Presented To
Department of
Accountancy
ABSTRACT
This study (research work ) is an attempt to appraise the securitzation (Equalization or capitalization ) of debt (debt equity swap) as the latest international debt management strategy geared towards solving Nigeria’s debt problem.
In doing this the study will delve to the genesis, structure, growth and management of the 2000-2005 external debt in Nigeria.
Debts securitization or what is now know as â€�“debt equity swapâ€Â� is a form of debt conversion in which part or all of a country’s external public debt is converted into Equity shares or securities in government or publicly owned companies , agencies and parastatals and these are discounted to their present values because of their different maturity dates.
Securitization is also a substitution of market oriented intermediation for institution based intermediation, therorctically, it involves the establishment of financial assests and liabilities and the provision of financial services, and can occur in two ways, one by banks acting as intermediary accepting deposits, and advancing loans with some form of contractual agreement, and secondly through traded markets where borrowers sell debt contracts some of which include commercial papers, banks acceptance certificate of deposits, euro notes etc.
This research will be based solely on secondary data collection from Hounrals, CBN. Financial Journals CBN monthly, quarterly reports. Different edition of CBN bullion and economic and financial review played a vital role on this regard. Again personnel interview yielded positive result to this work.
Finally based on the data collection, Analysis were made which was preceded by recommendation and conclusion of this project.
During the period of this study there were confiding figures of Nigeria external debt outstanding. The central banks published figures differs from the figure of federal office of statistics and world debt table.
There were expensive short and medium term borrowings from the international capital market (ICM)within Nigeria debt profit which proper debt management could have avoided. There were also huge accumulated trade arrears in Nigeria’s debt structure.
Now based on the above finding, the following recommendation were made.
Securitization of debt in view of our present economic situation should be undertaker in a â€" one to one basis or indirectly in the form of portfolio investment through the establishment of mutual funds i.e (unitrust type of organization to which creditor belong.
There is urgent need for the compilation of Nigeria’s debt profile in order to know the exact amount of her debt, it’s structure and ownership and determine which of the debts could be subjected to the ongoing conversion programme.
TABLE OF CONTENT
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1. BACKGROUND OF THE STUDY
2. OBJECTIVE OF STUDY
3. RESEARCH HYPOTHESIS
4. STATEMENT OF THE PROBLEMS
5. SIGNIFICANCE OF THE STUDY
6. SCOPE OF THE STUDY
7. DEFINITION OF TERMS
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 CONCEPT OF WORLD DEBT CRISIS
2.2 CONDITION UNDER WHICH SECURITIZATION CAN OCCUR
2.3 GENESIS, STRUCTURE AND MANAGEMENT OF NIGERIA EXTERNAL DEBT.
2.4 FACTORS THAT CONTRIBUTED TO NIGERIA EXTERNAL DEBT PROBLEM.
2.5 DEBT CONVERSION AS AN INTERNATIONAL STRATEGY OR OPTION.
2.6 FORMS OF DEBT CONVERSION THEIR CONCEPT AND RELEVANCE
2.7 IMPLICATION OF DEBT SECURITIZATION TO THE NIGERIA ECONOMY
2.8 COST, BENEFITS OF DEBT SECURITIZATION
2.9 THE NIGERIA EXPERIENCE SO FAR
2.10 FACTORS MILITATING AGAINST THE PROGRAMME IN NIGERIA
CHAPTER THREE
3.1 RESEARCH DESIGN
3.2 INSTRUMENT FRO DATA COLLECTION
3.3 POPULATION OF STUDY
3.4 SAMPLE SIZE
3.5 SAMPLE SIZE PROCEDURE
3.6 METHOD OF DATA COLLECTION
3.7 METHOD OF DATA ANALYSIS
CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF DATA
4.1 TEST FOR HYPOTHESIS
4.1A FOR HYPOTHESIS I
4.1B FOR HYPOTHESIS II
41C FOR HYPOTHESIS III
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATION
5.0 FINDING
5.1 RECOMMENDATION
5.2 RECOMMENDATIONS
5.3 CONCLUSION
5.4 LIMITATIONS OF THE STUDY
REFERENCE
