THE book details Nigerian economic and financial systems and those of some other countries across the globe. Essentially, it traces the origin of financial systems from the developed countries of the world and provides elaborate information about the workings of capital and money markets in these countries.With the forward written by Professor of International Law, M. Ayo Ajomo, the book takes off a lighter mood spotlighting the basic concepts ' concepts of money, value of money, the money stock or money supply ' with emphasis on the operationalisation of money stock or money supply.But the author's desire as he notes in the preface is 'to help the students to understand the forces governing financial behaviour and to learn how the Nigerian Financial System works.'Primarily, the goal is to provide a complete account of the workings of the financial system in Nigeria at a level suitable for undergraduate students in Finance, Economics and Business studies and for other professional students embarking on a career in the financial sector.Chapters one and two examine different components of the financial system i.e. institutions, instruments and markets. Two basic types of institutions in any financial system are identified: banking institutions and the non-bank institutions. Commercial banks, merchant or investment banks, and universal banks fall under the former, while the latter category is a heterogeneous group made up of all kinds of institutions including Insurance Companies, Pension Funds, Discount Houses, Finance Houses, Unit Trusts, Mutual Funds, Mortgage Finance Institutions etc.It the book, readers are exposed to two major types of markets in any financial system: money and capital markets. Each market ' type or category has several sub-types. Basically the money market is a market for trading in financial instruments whose maturity do not exceed one year. While the capital market is a market for trading in financial instruments whose maturities can be over a medium-term of one to five years or over the long-term - five years to thirty years and sometimes in perpetuity.The several instruments traded in financial markets are also treated. In the money market, the principal instruments are treasury bills, treasury certificates (with maximum of one year maturity) bankers' acceptances, commercial papers etc. In the capital market the basic instruments are equities or ordinary shares, preference shares and bonds. Bonds could be government bonds (i.e. bonds issued by government and government agencies) or corporate bonds (i.e. bonds issued by private sector firms).Usually, each of the instruments has its own sub market, so that there are bonds- markets and there are equities-markets.In chapter 10, emphasis is on how the bonds-markets operate both domestically and internationally. It reveals that Eurobonds (i.e. bonds issued in currency other than the currency of the issuing country) are the principal bonds in the international bonds market.Also discussed is the international money market highlighting the role of foreign exchange in the operations of the international money market.The way exchange-rates are set and the different markets for foreign exchange (the spot-market and the forward market) are the major focus in chapter 13. This chapter analyses the different theories of exchange 'rate determination. It looked at the 'traditional theory of exchange rate determination', the 'purchasing power parity theory' and the monetary theory of exchange rate determination ' among others, and highlighting the weaknesses and strengths of each theory.The book maintains that at the domestic level, the Central Banks, the Deposit Insurance Corporations, the Securities and Exchange Commission are some of the regulators/ supervisors of financial institutions. The book is useful as it provides details on how these regulators discharge their responsibilities efficiently.The international flavour provided by the book is a major strength of the book especially in its treatment of the bonds market. Similarly, the in-depth analysis of share-valuation (one of the most critical instruments in the capital market i.e. equity) provided in chapter nine is another major strength of the book. Its treatment of the several theories of share valuation is quite invaluable to any student of finance.Interestingly, the book whose public presentation has been slated for Friday, March 30 is being released in honour of the author posthumously.EBENEZER Folorunso Oke distinguished himself as a brilliant and diligent student. He graduated in Economics from the University of Southampton in 1963 with distinction in the Second Class Upper Division. Professor Hart, his teacher wanted him to go into academics by enrolling for the Doctor of Philosophy degree in the subject, but he opted for professional Accountancy. Even there, he distinguished himself by winning two elite prizes of 'The Leo T Little prize and the Delotte Plender prize in the final professional examination of the Chartered Institute of Accountants of England and Wales, in 1966.On returning to Nigeria he, along with others, pioneered the setting up and running of courses leading to examination and qualification for the award of the certificate of the Chartered Institute of Accountants of Nigeria thus severing affiliation with its English body.He lectured part- time on Information Technology and Accountancy at the University of Lagos. He had a peculiar taste for perfection. He had a burning desire to inculcate excellence into his students in the university and articled clerks under him working for the professional examination of the discipline.He was for several years a partner in Cooper and Lybrand, an international accounting firm, before he set up his own independent practice. He was the President of the Institute of Chartered Accountants of Nigeria in 19881989.He was made, by acclamation, a Fellow of the Institute, the highest position any in the profession can aspire to. He was Hon Treasurer of the Body of Past Presidents of the Institute until his death. At a special meeting of the Institute convoked to pay tributes to him after his death, eulogies and encomiums were showered on him. His colleagues dubbed him a genius while alive, a trailblazer, a builder of bridges not walls and a man who touched and enriched the lives of many, both within and outside the profession.'I hope this book will be useful not only to those who work in financial markets and institutions in Nigeria but also to managers of international firms with the intent on doing business in Nigeria. Financial advisers both actual and potential will find much of interest here. I also hope that university undergraduate students enrolled in courses in Economics, Finance, Accounting and Business and students of professional bodies in Accounting and Banking will find this book useful,' Oke had said in the preface he wrote before his passage.
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