Interest Rate Statistics in Nigeria: Its Sampling Techniques and Computational Procedures

Developing nations, like Nigeria, whose financial systems and infrastructural base are not yet fully developed face data rendition challenges which may hamper the representativeness of their interest rate statistics. A critical component of any credible interest rate data compilation framework relates to the sampling procedure. In Nigeria, no work has been done with regards to employing alternatives sampling techniques in the computation of interest rate statistics largely because of the small number of deposit money banks in the country. Leveraging on existing literature and established statistical methods, the study examines two sampling techniques for generating credible and reliable interest rates in Nigeria. The current interest rate compilation framework in the country is presented and alternative sampling procedures were explored with a view to investigating their appropriateness for Nigeria’s interest rate computation. The interest rates generated based on the current population-based compilation method is compared with those of the alternative approaches. This paper recommends the use of purposive sampling method that covers Deposit Money Banks (DMBs) which account for about 70.0 per cent of the banking sector total assets as an appropriate alternative