Review of Public Administration and Management - Arabian Journal

Review of Public Administration & Management Vo. 1 No. 2

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Review of Public Administration and Management

Vol. 1 No. 2 ISSN 2315-7844 Nov, 2012

A bi-annual Journal of the Department of Public Adminitration

Nnamdi Azikiwe Univeristy, Awka, Nigeria Website: http://reviewofpublicadministration.wordpress.com

E-mail:[email protected]


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Review of Public Administration and Management

© Department of Public Administration, Nnamdi Azikiwe University Awka, Nigeria Published Nov, 2012 by Department of Public Administration, Nnamdi Azikiwe University, Awka, Nigeria All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any other information storage and retrieval system, without prior permission of the publishers.


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Editorial Board Chief Editor: Prof. M.C. Muo, Ph.D, Nnamdi

Azikiwe University, Awka Managing Editor: Emma E.O. Chukiwuemeka, h.D,

Nnamdi Azikiwe University, Awka Members: Prof. F.C. Nze, Nnamdi Azikiwe University, Awka

Prof. J.C. Okoye , Ph.D - Nnamdi Azikiwe University, Awka

Prof. Ezimma Nnabuife, Ph.D Nnamdi Azikiwe University, Awka

Prof. Chikelue Ofuebe, Ph.D University of Nigeria Nsukka

Ngozi Ewuim, Ph.D Nnamdi Azikiwe University, Awka

Okey Francis Chikeleze, Ph.D Enugu State University of Science and Technology, Enugu

Consulting Editors:

Prof. Kunle Awotokun, Ph.D – Obafemi Awolowo University, Ife

Prof. Emma Ezeani, Ph.D – University of Nigeria, Nsukka

Prof. Ike Ndolo, Ph.D – Enugu State University ofScience and Tech, Enugu

Prof. Charles Okigbo, Ph.D – North Dakota State University, United

States of America

Prof.B.C. Nwankwo, Ph.D – Kogi State University, Ayingba

Chukwumerije Okereke, Ph.D, University of Reading, United

Kingdom

D. Stamatakis , Ph.D– Athens National and Kapodistrian University

I.M. Ambe, Ph.D - University of South Africa S. Jabulani, – University of Swaziland


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Editorial Comment

We are happy to launch the second edition of the Review of Public Administration and Management. It is interesting to note that the Journal has improved significantly, with a website, electronic mail address and International Standard Serial Number (ISSN) in place. The Journal undoubtedly is intended to be a beacon of light to scholars of administration, management, humanities and social sciences. Through extensive research and intensive empirical field studies, the Journal will show Nigeria and other developing states how to survive or how to escape from the scourge of problems buffeting them.

Today, myriads of unpredictability face administration, politics, humanities, social sciences and management. The western nations have articulated their responses to the challenges and even simulated and programmed the likely outcome. But for us in the third World especially Nigeria, it seemed that the challenges took us by surprise. It is in keeping with the challenges that the Department of Public Administration, Nnamdi Azikiwe University, Awka blazed the trail by producing the second edition of the Journal.

There is no gainsaying that an examination of the current security challenges in the Country, one may be wont to remark that Nigeria is ‘sitting on a keg of gunpowder’.

Politically Nigeria’s nascent democracy has not fared well; the terrain has been shrouded with unprecedented unpredictability. I feel accomplished that these challenges, especially the security challenges and restiveness have been reasonably addressed in the second edition of Review of Public Administration and Management. This is reflected by the quality of manuscripts received from seasoned academics across reputable Nigerian Universities, which we considered necessary to be published in this edition.

With deep sense of pleasure and accomplishment, I am pretty certain that you will be very much enriched as you read through this volume.

Prof. M.C. Muo, Ph.D Chief Editor


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Editorial Policy The Review of Public Administration and Management is a referred Journal that is published by The Department of Public Administration, Nnamdi Azikiwe University Awka Nigeria bi-annually (July and November). The Journal endeavors to provide a forum for researchers, practitioners, students, resource persons and other people in the academia who are interested in the discussion of current and future issues and challenges impacting on the field of Public Administration, Management Sciences, Humanities, Education, Arts and Social Sciences. We adopt double blind peer review policy in which both authors and reviewers are kept anonymous so as to maintain the high technical and quality standards as required by the researchers. The Journal welcomes the submission of manuscripts that meet the general criteria of significance and scientific excellence. Papers submitted will be published approximately two months after acceptance. . Interested contributors should type their scientific papers on A4 size with wide margins and double line spacing in 12 fonts. It should not exceed 15 pages including the abstract of not more than 250 words. Not more than five keywords should be provided immediately after abstract. The paper should be empirical or theoretical, well researched, and persuasive. Short communications, original research articles, reviews, commentaries and methods could also be considered. Contributors should include: brief profile of the author including institutional affiliation and status, title of paper, abstract, introduction, statement of problem, review of related literature, method of investigation, discussion of findings and recommendations. Authors should include their phone numbers including addresses and e-mail. Manuscripts must be in conformity with the American Psychological Association (APA) documentation style 6th edition. Journal titles should be abbreviated for multiple citations in the same year, a,b,c, should be used immediately following the year of publication.


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Manuscripts should be submitted in hard copy and soft copy in CD with password clearly indicated. Correspondence should be addressed to the Managing Editor, Review of Public Administration and Management Department of Public Administration, Nnamdi Azikiwe University, Awka Nigeria, P.M.B. 5025, Awka, Anambra State Tel: 08060967169, 08033249488, 08033577153 Email:[email protected] The views expressed in the articles do not reflect that of the Editorial Board but of the author(s) concerned.


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The Contributors Dr. Rosemary anazodo Department of Public Administration,

Nnamdi Azikwe University, Awka Nigeria

Agbionu Tina Department of Business

Administration, Nnamdi Azikiwe University, Awka, Nigeria

Ezinwele Uche Department of Public Administration,

Anambra State University, Uli Dr. Ovaga Okey Department of Public dministration,

University of Nigeria, Nsukka Echokoba Felix Department of Banking and Finance

Nnamdi Azikiwe University, Awka Ezu Gideon Department of of Banking and Finance,

Nnamdi Azikiwe University, Awka Dr. Florence Agbodike Department of Public Administration,

Nnamdi Azikiwe University, Awka Ijeoma Aniemeka Department of Public Administration,

Federal Polytechnic, Oko Dr. Onugu Charles Department of Cooperative Economics,

Nnamdi Azikiwe University, Awka Dr. Ngozi Ewuim Department of Public Administration

Unizk Abdulahi Taiwo Department of Cooperative Economics,

Nnamdi Azikiwe University, Awka


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Dr. Ezeani Nneka Department of Education Foundation and Mgt Ekiti State University, Ado Ekiti

Ishag Ahme M Department of Business Education,

Federal College of Education (Technical) Gombe

Prof. Ekwueme C.M. Department of Accontancy, Nnamdi

Azikiwe University, Awka

Dr.Egbunike P.A. Department of Accountancy, Nnamdi Azikiwe University, Awka

Amara Okoye Department of Accountancy,

University of Nigeria Nsukka Dr. Okafor Obiefuna Federal Polytechnic Oko Dr. Nzewi Hope Department of Business

Administration, Nnamdi Azikiwe University, Awka

Dr. Obianuju Chiekezie Department of Business


Dr. Miachael Ikon Department of Business


Alfa Patrick Federal Polytechnic , Idah Kogi State Adah George Department of Social Science and

Humanities, Federal Polytechnic Idah Kogi State


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Ekwochi Eucharia Department of Business Administration, Enugu State University, Enugu

Josephine Orga Department of Business

Administration, Enugu State University, Enugu

Egbunike Chinedu Department of Accountancy, Nnamdi

Azikiwe University, Awka Dr. Udeh F.N. Department of Accountany, Nnamdi

Azikiwe University, Awka Eme Okechukwu Department of Public Administration,

University of Nigeria, Nsuikka Nkechi Anyadike Department of Public Administration,

University of Nigeria, Nsukka Ohachosim Celestine I Dept of Accountancy, University of Nigeria Nsukka Onwuchekwa Faith Dept. of Business Admin. Nnamdi Azikiwe University Awka Ifeanyi Tochukwu - Federal College of Ed. Tech. Umunze


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In this Issue page

1. Parochial Political Culture: The bane of Nigeria Development 1

2. The Socio Economic Implications of Boko Haram activities in Northern Nigeria 19

3. The effect of poor implementation of tax policies on

developing Economies: A study of Nigerian economy 38 4. Conflict management in organization: Gender Perspective 51

5. The performance of agricultural cooperative societies

under the National Programmes on food security in Enugu State of Nigeria 61

6. Emerging issues in Business education: A panacea for effective Utilization and application of ICTs as a training and developmental Tool in Business in Nigerian universities 89

7. An empirical assessment of the operational efficiency

of electronic banking: Evidence of Nigerian banks 108 8 Shelter for all: An appraisal of implantation of the

National Housing Policy 139 9. Globalisation: The Nigerian experience 154 10 Time Management and academic performance of

postgraduate Students in Nigerian universities 180 11 Electronic and democratic consolidation in Nigeria:

A critique of 2011 election 193

12 The effect of performance appraisal in an organization 214


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13 A novel’stakeholder sustainability, knowledge management’ model Developing linkages of stakeholder management, knowledge management And triple bottom line performance 227

14 Financial Challenges of small scale and medium

Sized enterprises (SMEs) in Nigeria: The relevance Of Accounting information. 248

15, Security challenges and the imperatives of

state police. 277


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Parochial Political Culture: The Bane of Nigeria Development

Rosemary Anazodo (Ph.D) Department of Public Administration Nnamdi Azikiwe University, Awka. E-mail:[email protected]

Agbionu, Tina Uchenna

Department of Business Administration Nnamdi Azikiwe University, Awka, Nig

E-mail:[email protected]

Ezenwile Uche Department of Public Administration

Anambra State University, Uli Anambra State

Abstract This paper examined the effect of parochial political culture on national development in Nigeria. It is imperative at this time more than any other in the history of Nigeria, a country at crossroad to vigorously address the challenges posed by the parochial political culture , without which political stability, political innovation, national development among others would be a mirage. For many decades Nigeria has been on a steady decline in regards to all indicators of national development. On this premise the paper intends to investigate how Nigeria’s political culture impedes her national development. Based on the assertions above, some objectives were formulated to guide the study. Theories of two republics and Prebendalism formed the basis of the study. Some findings were made and recommendations provided on the way forward . Keywords; Parochial, Political Culture, Development. Introduction Nigeria is sadly at the other side of political and economic development. Annual income per head is dismally low, economic and social infrastructures are underdeveloped and manufacturing base is weak.


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Nigeria is a rich country whose economy has been mismanaged over the years. The excellent investment opportunities have been affected by unstable political atmosphere and threats to security of life and property (Abimboye, 2010:18). Nigeria has been crawling development wise when it should be running fast after her independence. President Jonathan saw the failure of leadership as the greatest obstacle to the desired growth-political and economic. This statement falls in line with the views of those Western European leaders of the 1930’s who believed that the economic system would be favourable if only earnest and God fearing men are in command of its destinies. Nigeria is yet to witness much development after half a century of her political independence, and this is attributed to the occupation of sensitive state offices by a crop of visionless men and women who are only concerned about how to appropriate and grab collective wealth for personal aggrandizement. The state is basically constituted for the development of its citizens. In the area of economic, the state performs the following functions; policy formulation, provision of infrastructure. education, vocational, moral and political, creation of enabling environment for investment and economic growth, provision of employment opportunities, mobilization of patriotic spirit, direct involvement in enterprise etc. The role a state plays in economic development and how it plays it are determined by the prevailing economic, political ideology and political culture in the state among other factors. The fact that majority of Nigerians live below poverty level in a society so blessed by natural resources amount to monumental injustice, and failure of leadership. This is however possible because of the kind of political culture practiced in Nigeria. There are three basic political cultures known to social scientist and each has its peculiar attributes. The type of political culture practiced in Nigeria is the parochial political culture which consequently breeds


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what Dike (2006) termed instrumental leadership. Most of the leaders are mired in the pursuit of selfish and personal goals at the expense of broader national interests. Most governments all over the world understand and appreciate the importance of development and its sustainability. In Nigeria due to the type of political culture practiced, the leaders are what Apter (1960), aptly brands “Consumetory leaders”. They use official power and influence primarily in the pursuit of private goals. To the leaders, the national objective is very secondary as they are merely concerned about how to use official position to achieve personal objectives. This is possible because the citizens are not fully aware of the input/output processes of the political system However the leaders may not be lacking completely in social or community commitments but overall more considerations are given to self than interest of the society (Eulau, 1963 in Dike, 2006) without minding the disruptive impact. Nigerian leaders like “absolute power” and usually hold on to power as long as private objectives are achieved (Kofele0Koale 1976). Because of the type of political culture in Nigeria, and because the citizens lack knowledge of what the government should be doing for them, they expect little or nothing from the government. They are not interested in what happens in the political system and so the leaders loot the treasury and make policies that are to their own advantage. The masses through socialization(political culture) have come to internalize the norms of respect for authority. They find it very difficult to challenge or criticize authority. Political office holders insist on being treated as tin-gods even when they are not performing. The norm in Nigeria is; if the behaviour of the incumbent leader is similar to that of the past corrupt and ineffective leader some citizens take it as a usual and normal behaviour and would not press for change. This paper therefore seeks to examine the effects of parochial political culture on the social and economic development of Nigeria. The Problem Nigerian leaders since Independence have so impoverished the country that her social and economic institutions have virtually collapsed .They embezzle public funds with impunity due to weak or the absence of effective institutional checks and balances. Nigerian leaders take undue


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advantage of these shortcomings to circumvent the few institutional restraints put in place to loot the treasury. They get involved in grand corruption and acquire wealth through questionable means which they use to bribe their ways to remain in power for life. Nigeria has not developed fully because the society had been according undue and undeserved respect to public officials and political office holders. Our leaders are fraudulent and opportunists who are so selfish to the detriment of overall national interest. No wonder, Professor Chinua Achebe reiterated that the problem of Nigeria is simply and squarely that of failure of leadership. Garner (1976), agreeing with Chinua Achebe affirmed that no society can function well with fools, rascals, or non leaders in leadership positions. That is the crux of the matter and the course of unending religious and social conflicts in the country. Some of the Nigerian leaders lack the integrity and knowledge to perform their national duties. According to Samuel Johnson “integrity without knowledge is weak and useless and knowledge without integrity is dangerous”. All of the above and more are responsible for the decayed infrastructure, down turn in our economy, political and social conflicts and general lack of development and sustainability in Nigeria. This paper therefore sought to examine the Empirical and conceptual effects of parochial political culture on national development in Nigeria. Objectives of the Study This paper therefore intends to;

1. Discuss parochial political culture and its effect on development in Nigeria.

2. Link leadership question to parochial political culture 3 Examine the dimensions of corrupt practices in Nigerian

institutions. 4. Investigate the consequences of corruption on national development 5. Make recommendations on the way forward. Parochial Political Culture and Its Effect on Development in Nigeria The type of political culture practiced in Nigeria accounts for lack of interest and commitment on the part of the citizens towards what is


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happening in their political arena or the political environment. This is because culture shapes and influences social action. Lack of orientation of Nigerians towards the political system has caused the country sustainable national development; and absolute lack of commitment. This was evident when President Olesegun Obasanjo was in power. The leaders capitalize on the people’s lack of interest in what is happening in government to deny the country a systematic and sustainable development. They are instead busy amassing wealth for their personal gain, and this accounts for the high level of corruption, ineptitude and lack of political direction which have inhibited the country’s growth, development and the attainment of the Millennium Development Goals (MDGs). It is most evident, when you place Nigeria in juxtaposition with other countries like U.S.A and Britain where participant and subject political cultures are practiced, respectively. Parochial political culture shapes and influences social action in Nigeria and consequently determines it. A good example is the issue of bribery for contracts involving some Nigerian leaders and multinational firms. In America, the people who were involved in the scam had since been brought to book, but in Nigeria, none of the people whose names were mentioned in the scam had been interrogated let alone jailed. As a matter of fact, anti graft agencies whose duty is to bring these people to book (EFCC, ICPC, etc.) were busy sweeping the grievous offence under the carpet without batting an eye lid, simply because of the caliber of people involved in the scam. Nigeria citizens on their own part are non-challant towards the scam. They had not in any way agitated or even ask questions about the deals. Today, some of the people involved in the scam are presently flagging off campaigns and rallies for elections come 2015. This indicates the level of awareness of the people in the political affairs and development of their nation. The system is corrupt, so also the leaders because they are part and parcel of the corrupt system. Leadership behaviours do not often seem to be directed towards achievements of the welfare of the people and


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progress of the nation. Wealth and socio-economic status have become the precursor of Nigeria leadership and nobody cares to ask questions on how the wealth has been acquired. People therefore, pursue wealth without any qualms of conscience. Public treasuries are looted with impunity; donations are given in millions of naira, the donors receive accolades from all and sundry, even from the governments; chieftaincy titles flow from all corners. This accounts for lack of vision and mission in Nigerian leadership style and that is why effective leadership is as rare in Nigeria as a British falcon. According to World Report (2008), the Nigerian leaders have so impoverished the nation that people find it very difficult to feed at least twice a day. People are dying of hunger, disease and wallow in abject poverty. If all the monies stolen by these leaders were ploughed back into the education and health sectors, Nigeria would have been better for it (Transparency International 2010). The question is; can Nigerians ever enjoy good roads, good health, pipe borne water, and other facilities? Can she ever attain Sustainable National Development with this type of attitude and orientation towards the political system? Corruption in Nigeria’s political Institutions There is no gainsaying the fact that corruption is a social malaise that is not unique to Nigeria. However, what makes this cankerworm egregiously unique to Nigeria is that it is pervasive, it is endemic, it is pandemic, and it is seemingly intractable. Corruption has eaten so deep into the fabric of our society, that no segment can claim immunity from its ugly effects, not even religious bodies, (Agenda 20:2020). For example, a communique issued by the Christian Association of Nigeria (CAN) at the end of its 6th National Assembly in 2006 captured the endemic problem of corruption as follows:

Corruption today is still a deadly disease in Nigeria. Corruption has been responsible for the collapse of our economy, the infrastructure


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and the collapse of Education and health sectors and other areas of life. Many Nigerians are yet to be free from it….

(Christian Association of Nigeria, 2006) Corruption is present in all sectors of our society, more especially in the government institutions, the Executive Arm, the Legislative Arm (the Senate, House of Representative), Local Governments, the judiciary (courts, tribunals, lawyers), and uniformed establishments (Military, police and road safety corps) etc for emphasis sake, see table below: Comparative Assessment of levels of corruption in Nigeria Institution (scale: 1-5) Institution/Agency 2004 2005 2006 Rank Police 4.8 4.7 4.9 1 Political Parties 4.5 4.5 4.5 2 Customs 4.0 4.2 4.2 3 Legislature 4.2 4.1 4.1 4 Educational System 3.8 3.8 4.3 5 Judiciary 3.8 3.8 4.1 6 Military 3.9 3.8 3.7 7 Utilities (PHCN etc) 3.5 3.6 3.8 8 Tax Revenue 3.8 3.6 3.5 9 Business/Private Sector 3.4 3.2 3.7 10 Registry Licensing (CAC, etc) 3.3 3.1 3.3 11 Medical Services 3.1 3.0 3.4 12 Media 3.0 2.8 3.2 13 NGO’s 2.7 2.5 3.0 14 Religious Bodies 2.4 2.3 3.0 15

Source: Agenda 20:20:20; Redesigning Nigeria’s future, p:21 In a thought provoking expository study on the content of corruption in Nigeria, Daniel Smith (2007) focuses on the pervasive culture of corruption that manifests in forms of deception and malpractice that come to tragically symbolize the nature of the Nigerian State and political culture.


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The most disturbing are the recent Halliburton, Siemens, and Wilbros scams which involved some of our past executive leaders, some members of the National Assembly and some top government officials. So also is the recent bank crises which were caused by some corrupt chief executives of banks. Let us now look at the scams one after the other; Halliburton Scam: This scam dates back to 1994 when some foreign companies put up bids for the construction of the plant that was to cost $6billion. To win the contract, a joint venture company, named TSKY, was set up comprising equal holdings between some companies. The firms are Technip (French) KBR (American) and part of the Halliburton group and Japanese engineering and construction company (JGC) (Transparency International 2010). Investigation into the matter revealed that the consortium bribed some political leaders and top government functionaries through Tri-star investment limited and marubeni incorporated. It also revealed that the group recruited Tesler and chodan to coordinate the scam. The scam became a public issue when George Krammer, a former director general of the French company, technip was accused of paying three million euros in illegal commission during investigations into ELF-Aquitane operations in Asia and Africa. Mr. Krammer owned up to the commission paid, which according to him was the “cultural arrangement” (Abimboye 2010:12-20). In fact those mentioned in this scam were mainly our former heads of state and some top government officials. The list included President Ibrahim Babangida, General Sani Abacha, Ernest Shonekan and Abdulsalam Abubakar, Maryam Babangida; Maryam Abacha, Ibrahim Abacha, Mike Akhigbe, Orji Uzor Kalu, Anthony Ukpo, Samuel Ewang, Oladipo Diya, Atiku Abubakar and other top government functionaries. They shared the sum of N27 billion Halliburton loot. One common denominator held these people together and that is, they had served Nigeria in one capacity or the other. During President Yar’adua’s tenure he constituted a panel of inquiry to investigate the matter. The chairman of that panel former Inspector


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General of Police Mike Okiro submitted his report, but his report was never allowed to see the light of the day. One disturbing thing about this is that while American Government and other Governments whose citizens or officials were involved in the loot were busy jailing those found wanton, Nigeria was busy shielding those who shared N27 billion of public fund. It is incredible, considering what this money would have done to our economy. Surprisingly, some of those named in this scam are still vying for the highest position in our country and nobody cares to ask questions. One can not blame them because the level of awareness toward what happens at the center is very low, but this attitude has sacrificed development on the altar of perpetual poverty in the country. Corruption in the National Assembly National Assembly is an arm of government charged with the responsibility of making law. It consists of two chambers, the upper legislative chamber called the Senate and the lower legislative chamber called the House of Representative. The members of these two houses were elected by the people to represent them as much as possible and equally attract development for their communities. In Nigeria that is in dire need of development, one expects the Legislature to offer quality representation that will affect the lives of Nigerians positively. Unfortunately, the reverse is the case, instead of working for the people that elected them; they are busy enriching themselves to the detriment of the masses. Between 1999-2003 each member of the House of Representatives got N10million for a quarter, thus, in a year, each of them netted N40million. Presently, each member of the lower chamber nets N27.5 million as quarterly allowance or N110 million per annum. Yet the sum could be raised up soon to N42million per quarter or N168million yearly as demanded by the legislators. (BBC News, 2008). Investigations have revealed that between 1999 and 2010, a total recurrent and capital allocation to National Assembly from the annual budgets stood at N712.8 billion. (Tobs, 2010:17) These exclude


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supplementary allocations within the period. In 2007, when the former set of lawmakers came in, N48.76 billion was allocated to the National Assembly from a total federal budget of N2.39 trillion. This, however, was disproportionately increased to N106.6 billion, made up of N5.25 billion capital expenditure and N101 billion recurrent expenditure in the N3,1018 trillion 2009 package. In 2010, a total of N154.205 billion out of N4.6 trillion 2010 package was provided for the National Assembly. This is made up of N138.015 billion recurrent and N16.9 billion capital expenditure (Tobs, 2010:14). From 2007 to date, each sub-head of the annual National Assembly budget has been an example of padding and over loading and in many cases duplication, for instance, the 2007 allocation to the senate had 55 sub-heads or classifications. These ballooned to 74 in 2010. The 2010 House budget has 67 classifications. The late President Yar’adua proposed to spend N2.4 trillion in 2008; the legislators raised it to N2.89 trillion to take care of their interest. (AIT News 2010) Yar’adua refused to ascent to the bill, but after serious arm-twisting, he signed a revised N2.7 trillion version. In 2008, the President submitted N2.87 trillion this again was raised up to n3.108 trillion. The members of the National Assembly allocated N5.06 billion to local and international travels, N2.28 billion to contingency vote, N1.259 billion to security sub-head and N3.68 billion materials and supplies. According to World Report (2009), the Revenue Mobilization Allocation and Fiscal commission, RMAFC, charged with determining the salaries and allowances of public officials, put the annual basic pay of the Senate President at N2,484,345.50 his deputy at N2,309,166.75 while each senator receives N2,026,200 per annum. The Speaker of the House of Representative receives N2,477,110, his deputy N2,026,400 while floor members collected N1,985,212.50 per annum. However, it was disclosed that senators approved a different salary for themselves which was different from the one approved by RMAFC. The total salary per senator per annum is thus N29,479,772 or


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N2,456,647.70 per month. Annually, all 109 senators take home N3,264,329,264.10. These allocations appear not to be the legislator’s major avenue for income. Many of them often force ministries, departments and agencies they oversee to cough up huge amounts lest unfavorable reports are written on them (a case in point was Prof. Fabian Osuji’s Saga) and many more like that (Ajaero 2009:21). It was also revealed that the house committee on privatization and commercialization in 2008 rejected the good gestures of Nigerdock Nigeria plc to offset the legislator’s airfares to the tune of N400,000. But they rejected the “paltry sum”, with one of them saying “we talk in billions. If you make it $20 million (about N2.5 billion), fine”. The company refused to accede to the legislator’s illegal request. Two years after the incident, the committee has continued to discredit the company’s efforts in overhauling the moribund shipbuilding and repair yard. No wonder the lawmakers now live above their approved income, many own properties in Abuja and other choice areas in Nigeria to the chagrin of the electorates. In fact one senator from Enugu State now flies in and out of his country home on chartered helicopter for fear of kidnappers, while many people in his constituency are dejected, abandoned and shabbily treated. Recently, the former President Obasanjo decried the excess money at the disposal of these lawmakers that have been milking the tax payers dry. In response, the lawmakers have berated him and called him all sorts of names. This type of bazaar jamboree can not happen in America; in fact the salaries of these lawmakers can comfortably pay the salaries of members of the American Congress and President Obama. Professor Pat Utomi (2010) in an interview granted to Newswatch Magazine summed up the rot in the National Assembly as,

Institutionalized corruption, in which a full time legislature foisted on the country. What Nigeria needs, is a citizen’s legislature where professionals such as lawyers, engineers or doctors can take a few weeks off and come, make laws and return to their jobs. They should


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be paid about N10, 000 for their efforts…. The political class is consuming most of the resources. It is scandalous and the young people of Nigeria have not spoken. In other countries the streets would have been full until we change the institutional arrangement.

Siemens Scam Siemens Nigeria Ltd is a German Company, operating in Nigeria that won the improvement of power transmission. Apart from this contract, the company had executed other projects like the 276MW Afam V power plant and the 130 Turnkey projects for Zain Nigeria. The company had completed the first phase of the 414MW Power Plant and over 2,000 kilometers of 33kv and 11kv transmission lines for the interconnection of various towns and villages in Anambra, Imo, Borno, Adamawa, Taraba, Edo and Ondo States. Siemens had also designed and installed over 1000 kilometers of 132kv transmission lines throughout Nigeria from 1979 to date. More than 15 major 330kv and 132kv were also designed, and installed by Siemens for the Power Holding Company of Nigeria. (Africas Confidential, 1999:40). From the above, it is obvious that Siemens Company is a well known company in Nigeria that has won a number of contracts. Unfortunately, many Nigerians did not know that these contracts were won without due process as the company bribed some Nigerians in their bid to win most of these contracts. This was revealed by a Munich State Court that tried and found guilty two former Siemens Managers for breach of trust and abetting. Also the court placed them on probation Mr. Micheal Kutschenveuter, a former financial head of the Telecom unit was fined 160,000 euros. The former head of Accounting was placed on one and half year’s probation and was fined 40,000 euros (BBC News: 2008). The court indicated four former Nigeria Communication Ministers-Cornelius Adebayo, Late Haruna Elewi, Tajudeen Olanrewaju and Bello Mohammed, the former Permanent Secretary of the ministry, Senator Jubril Aminu, they were all accused of E17.5 million bribery scandal (Transparency Int, 2006).


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Money Laundering by Some Political Leaders in Nigeria Some governors in Nigeria see political offices as a means of enrichment instead of service to the people. The most recent case is that of the former governor of Delta State (James Ibori), who was accused of using the money meant for the development of the state for his personal enrichment. It was discovered that the former governor fraudulently sold the Delta State government’s 528 million shares in Oceanic Bank to guarantee over N44 billion facilities granted Ascot offshore Nigeria limited by intercontinental bank. Unfortunately this loan acquired could not be paid and when the Central Bank of Nigeria made their startling revelation, it was discovered that Ascot offshore Nigeria limited had not paid the N44billion borrowed from Intercontinental Bank. Ascot offshore Nigeria Limited is one of the companies of the said governor. Again, some foreign security agencies working with Economic and Financials Crime Commission discovered that the former Governor was involved in false pretence, stealing and money laundering. In fact one investigator says that the governor’s looting of the state he governed was so brazen and widespread that it would be impossible to discover all his atrocities for many years. (Akintunde 2010:12-17). When Economic and Financial Crimes Commission invited him over the matter, he went into hiding instead of submitting himself to the commission; he sought for protection from the youths of his village, the very people that he defrauded. These youths, it was revealed were ready to die in their bid to protect their master. These were monies meant to develop the State and equally empower the youth, but these youths were not bothered that most of them were not in school, in good job and could not even have access to quality health care. The said governor was outside the country enjoying his loots and EFCC and other corrupt agencies are mere spectators in the job for which they were paid to do. However presently in 2012 the said governor was found guilty of money laudering by the British government had since been jailed to serve 14 years term. (AIT News 2012). Others are Aleiyemesia of Bayelsa state, president Sanni Abacha of blessed memory etc The list of Nigerian leaders who have defrauded the nation is endless. The above is just few examples out of many.


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Cnsequences of Corruption on National Development The personalist monopolization of state power has direct link with the political culture of the nation. Since independence in 1960, Nigerian leaders have formalized the culture of corruption, and in recent years it has become an endemic culture of social impropriety in the country. Thus, Osaghae (2008) referred to the corrupt officials as “Corruption soaked elites. Government corrupt practices in Nigeria include both formal (bribery, looting of state treasury, over invoicing of contracts, illicit sale of oil blocks and bureaucratic salary fraud etc), and informal corruption tagged “419” in Nigeria, including; extortion, culture of impunity, oil theft and bunkering, pay off to political thugs by political god-fathers etc (HRW,2007:31). This formalized culture of corruption has in recent years included legislative bills and litigation involving financial considerations, put plainly as bribes. This argument is captured by Garba that “the fight for booty” or “national cake” is fierce and often vicious. It has at times led to a debilitating corruption in the arena of public policy formulation and implementation. The consequences of which are; decaying infrastructure, bad road network, poor health care institutions. The result of which is the soaring rate of accidents on our roads and health centers which have turned into slaughter slabs for poor citizens. Every year, huge sums of money are budgeted for the construction of roads and its maintenance but the money usually disappears into few pockets. The health sector is in a deplorable state, infant and maternal mortality are in the increase, hospitals are not well equipped, doctors go on strike on frequent basis because of lack of commensurate take home salaries, drugs are in short supplies etc (Sun Magazine, April, 2008). The education sector is worst for it. Lecturers go on strike because of poor remuneration and usually, it is the students and parents that suffer it. In the course of the lecturers trying to drive home their points, the students wallow on the streets and indulge in all sorts of nefarious behaviours. Meanwhile, the Millennium Development Goals which the Federal Government of Nigeria is echoing on daily basis (gender equality, women empowerment, reduced child mortality, maternal healthcare,


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reduced hunger and disease, education for all, environmental sustainability and global development partnership by the year 2015) is fast becoming a mirage (World Report 2009). Nothing is seen done on ground despite the fact that Nigeria gets about N150 billion debt relieve annually from the Paris Club and additional N110 billion annually in the past six years to service the Millennium Development Goals (MDGs). Yet all these monies go down the drain in private pockets of our leaders and public officials without the people holding the culprits responsible. The fact that majority of Nigerians live below poverty level in a society so blessed with natural resources amount to monumental injustice and failure of leadership culminating in low national development. Conclusion It is evident that the political culture of a country affects its practices. However, the type of political culture practiced in Nigeria has robbed it of its national development. We therefore conclude that Nigeria’s date with destiny has been put on hold because of the citizen’s attitude towards the political system and the leadership behavior towards what they should be doing for the citizens for overall development of the country. Nigeria is a rich nation, it has all potentials for greatness, it is a nation blessed with vast natural and human resources, but its political culture and corrupt attitude of the leaders have forestalled its match to greatness and sustainable development. If the amount of illegal resources acquired by those at the corridor of power is ploughed into some key sectors of the economy like education, health, agriculture, human capital development, infrastructure and power, the nation would have been rated among the most developed countries of the world. Recommendations The researchers recommend the following as a way forward for improving Nigeria’s sustainable national development.


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1. The citizens should be re-oriented on the importance of participation both at the input and out-put stages of policy making.

2. The focus of all economic policies and actions should be

directed towards the people’s welfare and well-being. 3. Stringent punishment should be put in place for public office

holders who abuse their positions and made to realize that they were elected into power to serve and not to impoverish the people

4. Any government official that is found wanting when he/she is

still in power should be called back even after leaving the office to give account of his/her stewardship and appropriate punishment meted to the offenders.

5. Nigeria should evolve a political culture that will be people

oriented in line with its peculiar needs and aspirations.

References Abba, U.E, and Anazodo, R. O. (2006) Development Administration in

Africa Onitsha: Abbot Books Ltd. Abimboye, D. (2010) “A Nation Unbearable Burden” Newswatch, July

12, pp 12-20. Africa’s Confidential Nigeria Lousy Legacies’ Vol 40 no 243

December, 1999. Agenda 20: 20: 20 “Redesigning Nigeria’s Future” Association of

National Accountants of Nigeria. Lagos

Ajaero C. (2009) “Roads to Hell”, Newswatch, December 28, pp12-21


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Akintunde, K (2010) “Ibori’s Dubious Court Victory”, Newswatch, September, 20 pp. 12-17

Almond, G and Verbe. S. (1995) _ The Civil Culture. Boston: little

brown and company. Anazodo, R.O (2004) Issues on Political Culture. Unpublished

Research Work. Department of Public Administration. Nnamdi Azikiwe University, Awka.

BBC “Fraud Ring Uncovered in Nigeria” at www.News.bbc.co.uk/I/hi/World/Africa accessed on the 21 of April, 2008.

Economic and Financial Crime Commission: EFCC Official Website at www.efccnigeria.org accessed on the 19 of April, 2009.

Elazar, D (1972) American Federalism. A view from the States 2nd edition New York: Thomas Y Crowell

Feiock, R.C and Adams, S.C (2003), Sustainable Development

Encyclopedia of Public Administration and Public Policy(ed) (P.1169); New York: Marcel Dekker, Inc. http://www.Allacademic.com/metalp.253601

Human Rights Watch (2008), “Nigeria”. World Report, New York, pp 137 – 143

Leadership Newspaper (Lagos 3rd June, 2008) “Nigeria Loses N3.5trillion to corruption”-at www.allafrica.com accessed on 09/07/08.

Nnoli O. (2003) Introduction to Politics. Enugu: PACREP Nwankwo O.B.C (2009) “Good Governance Matters of Development”

in O.S.A Obikeze (ed), Dynamics of Public Sector Management in Nigeria (pp 17-27). Enugu: Rhyce Kerex Publishers

Okoye, J.C. (1997) Modern Management Techniques and Development

Administration Onitsha: Abbot Books Ltd .


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Olewa, B. N (1995) Development Administration, Aba: Grace Ventures Pye L (1995) “Political Culture” in the Encyclopedia of Democracy,

(ed), (pp 965-969). London and New York: Rout Ledge. Rodney, N (1972) How Europe Underdeveloped Africa. Washington

D.C: Panaf Publishing Inc. Smith, D.J (2007) “A Culture of Corruption: Everyday Deception and

Unpopular Discontent in Nigeria” Africa, No 77 (4), P. 608. Szeftel, M. (2000.a), “Between Governance and Underdevelopment:

Accumulation and Africa’s Catastrophic Corruption” in Review of African Political Economy No 88 pp 287.

Tobs, A. (2010) “The Dream Threathened” Newswatch. August 20 pp

14 – 18 Utomi, P. (2010) “Institutionalized Corruption”, Newswatch Magazine

pp. 15


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The Socio-Economic Implications of Book-Haram Activities in Northern Nigeria

Ovaga, Okey H. (Ph.D)

Department of Public Administration and Local Government, University of Nigeria, Nsukka

Abstract: Presently in Nigeria, there is a general feeling of insecurity among the Nigerian populace. The terrorizing effect of the activities of the fundamentalist sect, Boko Haram on the socio-economic condition of the northern states of Nigeria has become so devastating that some financial institutions and other business ventures have closed down in many areas, thereby causing relocation of non-indegenes to their own states. It is based on the above that this paper seeks to find out the extent the Boko Haram insurgency has affected the socio-economic situation in the northern states of Nigeria. During the course of the study, it was discovered that the insecurity situation in the north was so tense that even the indegenes have started to send their children and wards down to the southern parts of the country for their education. At the end, the paper proffered solutions to the problem. Key Words: Insecurity Terrorism Insurgency, Feudal, Fundamentalism. Introduction Since Nigeria’s independence in 1960, Nigerians have been faced with a lot of problems emanating from disorderliness, confusion and the latest insecurity development. To be precise, the first problem Nigeria encountered was the military intervention in the Nigeria’s polity. The military administrations which were the fall-outs of the coups and counter coups marked the beginning of the country’s calamities and misfortunes. These were followed by the claims and agitations for resource control by the Niger-Delta region, which in practical term means demand for larger shares of the oil revenue. The inability of the government to meet up with such demand, led to the militant groups from the region taking arms and waged war against Nigerians. The timely intervention of late President Alhaji Yar’Adua helped to quench


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the burning flame ignited by the militants. Nigerians got relieved following the introduction of amnesty policy into Nigeria’s political and democratic structures by the same Yar’Adua administration. Unexpectedly, there arose in most recent time, a disorder of a serious religious dimension in the country. The dangerous trend in insecurity came with the emergence of Boko Haram, the Muslim fundamentalist sect, bombing and attacking everthing within reach. According to reports, multiple explosions went off one after the other in places like Kano, in the usual manner of attacks by the members of Boko Haram sect in Maiduguri, Damaturu, Potiskum, Gombe, Abuja and Madalla in Niger State (Okpaga, Ugwu and Eme, 2012:77). They attacked government institutions and later expanded to churches thereby inflicting terror and destruction on innocent people. Suicide bombing of the United Nations Secretariat in Abuja on August 26, 2011 did not happen long after a similar attack on the Nigeria Police Force Headquarters on June 16. Boko Haram otherwise called “Western education is sin,” claimed responsibilities for these and other series of bomb blasts and attacks. It is observed that the sect concentrated its attacks in the northern parts of the country. From the foregoing, it becomes increasingly difficult for socio-economic activities to thrive under the present security threats that have enveloped the north. This is evident in the continuous relocation of Igbo businessmen from the north to other more peaceful environment. Also, the Yoruba people are equally returning to Lagos and Ibadan (Egbemode, 2012:71). It is unfortunate to observe that parents of north origin do not think of the great old Ahmedu Bello University (ABU), Bayero University, Kano (BUK) or University of Jos (UNIJOS) when filling JAMB forms for their children. In other words, for fear of the insecurity situation generally in the northern region, many parents from the area are sending their children to the southern areas of the country for their education. The question is, if the indegenes of the north are equally fleeing from their own God-given environment, what will then be the fate of the socio-economic condition of the region? It is the focus of this paper to provide answer to this question.


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The Origin of Boko Haram Sect in the North The northern power elites had through history created a thin layer of leaders from whom everyone else draws their protective existence. It was observed that unless one belonged to such elite group, there would be no appointment into a position in the upper echelons of government. This was done for fear of breeding critics who might rise to overthrow them. A recognized member of the power elite group had to approve appointments at any level (Odu, 2012:18). In other words, only those who are nominated by the powers that-be in high places could get top positions. Notably, a great number of young men who had no privilege of having the overlord influence existed side-by-side with the power elites. Sequel to this kind of discrimination against their kinsmen, the youths became aggrieved with restraint for over sixty years (Odu, 2012:18). Why should they not be aggrieved when for instance, a General Manager of Federal Housing Authority (FHA), a nominee of Sokoto caliphate, who was expected to serve the housing needs of Nigerian populace, was in practical term, catering for their elite group residing in Lagos. This was when FHA had not moved to Abuja. His main concern was to ensure that positions were created for their members in Lagos and other places using his privileged position. It is unfortunate to note that these young men were ignorantly brain-washed against any attempt to change the feudal system and inhuman treatment being inflicted on them by their feudal lords. Even today, majority of these young men do not have any meaningful sources of livelihood. Though, they do not have bright and promising future, yet these lords are praised for their magnanimity for the daily meals served them (young men) through their cronies. It is observed that a few number of northerners are self-employed with little basic western education. According to Odu (2012:18), some of the northern youths are versed in Arabic language and the Qu’ran. He observed that these northern leaders and power elites who desire to feed young students of Qu’ranic schools, provide them (youths) with classes. Another group of students known as Almajiris move from place to place begging for alms which they share all the time with their Qu’ranic masters. There is no doubt that they have been subjected to ineptitudeness and impoverishment contrary to the settlers such as Ndigbos and Yorubas,


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who, most of the time, make progress in their own land. In other words, their leaders who preached to them that Qu’ranic education was all they needed could not provide them with any tangible and meaningful sources of livelihood, which Ndigbo and Yoruba settlers are enjoying while the indigenes are watchers in their own land. From the foregoing, envy against the settlers and acrimony against the elite group from the north are undisputably the outcome of long age accumulation of grievances from the downtrodden in the north. Comparatively, Islamic education cannot compete favourably with the western education and contemporary technological movement in Nigeria. How can the Moslem preachers or fanatics convince Nigerians that western education and its accompanied life styles were responsible for the plight of greater majority of the northerners, when their Moslem brothers in Saudi Arabia, United Arab Emirates (UAE) and their neighbours with their huge oil resources are great beneficials of western technology today? These countries serve as models in Islamic culture, which other Moslem countries try to emulate. Therefore, the claim by the Boko Haram fundamentalist sect in Nigeria that “Western education is sin” is a fallacy and cannot be substantiated. Rather the sect arose as a result of long years of accumulated grievances against their northern elite groups, who have been exploiting their ignorance to their own advantage. The Boko Haram official name is Jama’atu Ahlis Sunna Lidda’awati Wal Jihad, meaning “people committed to the propagation of the Prophet’s Teachings and Jihad (Okpaga, Ugwu and Eme, 2012:82). According to these writers, the group earned its nickname from the teachings of its founder, Mohammed Yussuf in the early 2000s, in the restive north eastern city of Maiduguri, the capital of Borno State. In his own argument, Yussuf believed that western education (Boko) was forbidden (Haram) in the region because of the fact that education had brought nothing good to the people but poverty and misery. He succeeded in brain-washing his already disenchanted and disgruntled adherents that western education was the cause of their plight.


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Theoretical Framework The functional superiority of theories as guideposts in all fields of human endeavour lies in the fact that rather than base action on judgment derived from mere experience, guesswork or speculations, theories enable a chosen line of action to be anchored in and guided by evidence derived from scientific research, which makes the consequences of such an action fall as close in line with the intended direction as possible (Onah, 2003:128-129). It is in view of the above that conflict theory is selected as the viewpoint for the study. Conflict is a common phenomenon in all organizations where two or more persons come together to achieve certain objectives set by organizations. That is why conflict was defined by Ugwu (2000:147), as an act of striking together, mutual interference of opposing or incompatible forces, ideas, interest contest, discord among different persons. He said, when there is a conflict, it implies that there is a dispute and struggle against something undesirable by the persons expressing opposing views or claims. Furthermore, conflict is believed to represent a condition of disharmony within an interaction process usually as a result of a clash of interests between or among the parties involved in some form of relationship (Imobighe, 2003:20). But Nnoli (2003:1), refers conflict as contradictions arising from perceptions, behaviours, phenomena and tendencies, while Mialli (1992), believed that conflict emerges where a clear contradiction exists or is perceived to exist among the participants who view the outcome as extremely important. It can be deduced from the above contributions that conflict is a behavioural pattern involving two or more individual ties, which can be inter-personal, inter-groups, inter-organizations and inter-states (Afegbua, 2010:12). The conflict as a concept has been well highlighted by Dhrendorf (1976), who saw it as a basic factor underlying societal dynamics. Dhrendorf cited an industry as a case where all participants are interested in self gain. As a result, there is bound to be conflict as participants in the industrialization process try to out-do each other in the quest for self gains (Anugwom, 1997:99). According to conflict


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theory, Anugwom argued that the conflict between management and labour results from the fact that they have conflicting and contradicting interests. Precisely, the theory sees management as possessing the profit consciousness while labour possesses the wages consciousness. Under this circumstance, each party tries to make its own consciousness or interest dominant as well as increase its sphere of domination but this can only happen at the detriment of the other party (Anugwom, 1997). This conflict of interests between the two parties will create a situation where they are constantly fighting over whose interest or consciousness will have dominion over each other. Considering the above analysis, the quest for material rewards, power and the predisposition to rule by the few elites in Northern Nigeria against the interests of the people of the downtrodden, has made the conflict theory relevant to this study. It is within the contending viewpoints above that this study attempts to ascertain the extent to which the conflict theory will provide reasonable explanations to insecurity situation in Northern Nigeria. Manifestations of the Activities of Book Haram Sect in Northern Nigeria The cycle of violence being unleashed on Nigerians by the fundamentalist group, Boko Haram has heightened serious fears among Nigerian populace and even the international community (Okpaga, Ugwu and Eme, 2012:77). The dangerous dimension the insecurity challenge has posed before the nation, has become a source of worry since there is belief in some quarters in Nigeria that the trend has even gone beyond religious or political colouration. The dangerous trend has led to the bombing of everything within the sect’s reach with little or no provocation. For instance, it is pertinent to remind ourselves of the burning down of the Police stations and government offices in Borno State in 2009 following the clamp down on some of the sect members who refused bluntly to abide by the law establishing the wearing of crash helmets by motorcycle riders. This violence later on spread across other parts of Northern Nigeria with about 800 people left dead including Yussuf, the sect leader. This was followed by series of continuous bombings and attacks, which culminated in great loss of


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lives and property. The table below depicts series of violence being perpetuated by Boko Haram sect in Northern Nigeria between July 2009 and June 2012. Table 1: Series of Attacks in Northern Nigeria by Boko Haram Sect between July 2009 and June 2012

S/n Date State Type of Violence/Attack 1. July 27, 2009 Yobe Attack on Potiskum, Yobe State’s Divisional

Police Headquarters, three Policemen and one fire service officer died.

2. September 8, 2010 Bauchi Bauchi Central Prison was set ablaze and members of the sect freed.

3. March 13, 2010 Plateau Another sect operation in the northern part of Jos, Plateau State led to the death of 300 people.

4. October 1, 2010 Abuja Explosions near the Eagle Square, Abuja claimed 12 lives, leaving many injured.

5. December 24, 2010 Plateau A bomb attack, in Barkin Ladi, Jos, Plateau State, killed eight people.

6. December 31, 2010 Abuja Explosions at Mogadishu Mammy Market, Abuja, claimed about 10 lives.

7. January 21, 2011 Borno The Borno State Governorship candidate of All Nigeria Peoples Party ANPP, for the 2011 election, Alhaji Modu Gubio, brother to former Governor of the state, Modu Sheriff, was killed by sect members alongside six others in Maiduguri, Borno State.

8. March 2, 2011 Kaduna Boko Haram killed two policemen attached to the residence of the Divisional Police Officer, Mustapha Sandamu, at Rigasa area of Kaduna State.

9. March 30, 2011 Yobe Bomb planted by Boko Haram in Damaturu, Yobe State, exploded and injured a police officer

10. April 8, 2011 Niger Bomb at INEC office in Suleja, Niger State, claimed lives of eight corps members and a suicide bomber.

11. April 9, 2011 Borno Bomb explosion occurred at a polling unit in Unguwar Doki Maiduguri, Borno State, killing the suicide bomber.

12. April 26, 2011 Borno Three people killed and scores injured in bomb attack

13. April 29, 2011 Bauchi Army Barracks in Bauchi bombed.


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14. May 19, 2011 Bauchi Three policemen killed and two soldiers injured in bomb attack

15. May 29, 2011 Bauchi Explosion at mammy market of Shandawanka barracks in Bauchi State claimed lives and left many injured.

16. May 30, 2011 Borno Bombs exploded early morning on Baga road in Maiduguri, Borno State, 13 dead and 40 injured.

17. June 7, 2011 Borno Series of bomb blasts occurred in Maiduguri, Borno state, claiming five lives and leaving several others injured

18. June 16, 2011 Abuja Nigerian Police Headquarters, Abuja, bombed by a suspected suicide bomber, three killed and many vehicles damaged

19. June 16, 2011 Borno Four children killed in a bomb last at Damboa town, Maiduguri, Borno State

20. June 20, 2011 Katsina Seven policemen killed when Boko Haram stormed Kankara Police station in Kastina State. Two of the security men guarding a band opposite the state were also killed

21. July 9, 2011 Borno A clash between Boko Haram and the military left about 31 people dead in Maiduguri, Borno State. Also in Suleja, Niger State, a bomb targeted at a church killed four and injured many others

22. July 11, 2011 Kaduna Tragic explosion at a relaxation joint in Fokados Street, Kaduna

23. July 12, 2011 Borno Boko Haram threw an explosive device on a moving military patrol vehicle, which claimed five lives

24. July 15, 2011 Borno Explosion in Maiduguri injured five people 25. July 23, 2011 Borno An explosion close to the palace of the Shehu

of Borno, Abubakar Garbai Elkanem, injured three soldiers

26. July 25, 2011 Borno Bomb explosion near the palace of traditional ruler in Maiduguri claimed eight lives.

27. August 25, 2011 Borno Sect members killed four policemen, one soldier and seven civilians and carted away undisclosed sum of money in a bank robbery by the sect.

28. August 26, 2011 Abuja A Suicide Bomber Drove into the United Nations Building in Abuja, 25 killed and 60 injured.

29. September 12, 2011 Bauchi Seven people, including four policemen, killed


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during a bomb attack on a police station in Misau, Bauchi State

30. September 13, 2011 Borno Sect members shot and injured four solders in an attack in Maiduguri, shortly after the arrest of 15 sect members, during military raids on Boko Haram hideouts in Bauchi State

31. September 17, 2011 Borno Brother in-law of Mohammed Yussuf, the slain leader of Boko Haram, Babakura Fugu, shot dead in front of his house in Maiduguri by two members of the sect two days after he was visited by former President Olusegun Obsanjo

32. October 3, 2011 Borno Boko Haram attacked Baga market in Maiduguri and killed three people

33. November 4, 2011 Yobe About 150 people killed by Boko Haram in Damaturu, Yobe State

34. November 27, 2011 Yobe Seven people killed in attacks in Geidam, Yobe State

35. December 18, 2011 Borno Three members of Boko Haram were killed when their bomb detonated in Shuwari, Maiduguri, Borno State

36. December 22, 2011 Borno Explosive and gunshots killed four people and left several others injured.

37. December 24, 2011 Plateau About 80 people killed in bombing in Jos, Plateau State

38. December 25 Niger About 50 people died on Christmas Day bombing in Madalla, Niger State

39. December 30, 2011 Borno Seven people killed in Maiduguri, Borno State 40. January 5, 2012 Gombe About six people died in a church attack in

Gombe State 41. January 6, 2012 Adama

wa 17 people died in a Christ Apostolic Church, Yola, Adamawa State while 20 Igbo people were also killed in Mubi in the same state.

42. January 20, 2012 Kano About 250 people killed in multiple attacks in Kano

43. January 22, 2012 Bauchi Two churches destroyed in Bauchi State, two military personnel, a DPO and eight civilian were killed by gunmen at the headquarters of Tafawa Balewa Local Government Area in the state.

44. January 26, 2012 Kano The Sabon Gari of Kano State witnessed another explosion, which caused another pandemonium in the state. Many injured and some luxury buses were damaged in the


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explosion. 45. January 28, 2012 Borno One killed in Gambiru, Ngala 46. January 29, 2012 Borno Two killed in Gambiru, Ngala 47. January 30, 2012 Borno Six people killed in Maiduguri environs

including two Air force officers 48. February 4, 2012 Borno Two people killed in Damboa 49. February 5, 2012 Yobe SSS man killed 50. February 07, 2012 Kadun 5 killed were killed in the Military Barrack 51. February 07, 2012 Kano 10 killed in Kano 52. February 10, 2012 Borno 4 Boko Haram members were killed during

Soldier shoot-out in Maiduguri 53. February 10, 2012 Kano Boko Haram sect attacked Police Station and

engaged the police in gun duel in Shagari Quarters, Kano

54. February 12, 2012 Borno Boko Haram members killed in Maiduguri 55. February 15, 2012 Kogi Jail Break In Koton Karji Prisons, Kogi State.

A warder was killed and 199 prisoners released

56. February 15, 2012 Niger 2 police men killed and injured in Minna, Niger State

57. February 17, 2012 Yobe 2 people killed in Geidam, Yobe State 58 February 17, 2012 Borno 5 people killed in Maiduguri metropolis 59. February 20, 2012 Borno Boko Haram and soldiers clashed in

Maiduguri market. 30 persons died 60. March 8, 2012 Sokoto Boko Haram killed 1 Briton and 1 Italian who

were abducted in 2011. They were killed during rescue attempt

61. March 11, 2012 Plateau A car bomb denoted outside Catholic Church in Jos killing 10 persons

62 April 2, 2012 Kano A Professor and 17 others were killed in Bayero University, Kano.

63 April 8, 2012 Kaduna 38 people killed on Easter Sunday. 64. April 9, 2012 Kaduna 40 people were killed in Kaduna 65. April 9, 2012 Plateau Bomb explosion near Plateau State

Governor’s Lodge. 66 April 29, 2012 Borno 5 worshippers including a Pastor were killed

in Maiduguri 67 April 30, 2012 Taraba 11 died as suicide bomb hit Police Chief

Convoy in Jalingo 68 May 10, 2012 Kano A bomb was defused around the premises of

kings Garden Cinema, Bridge Quarters, Kano State where hundreds of soccer fans were billed to watch the final match between Chelsea and Liverpool.


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69 June 17, 2012 Kaduna Multiple bomb attacks on 3 churches killing 70 people and injured scores of others.

Source: Adapted in Okpaga, Ugwu and Eme (2012:8) and also compiled by the Author. The Socio-Economic Implications of Boko Haram Activities in Northern Nigeria: It has been discovered that foreigners aid and abet violence in the North. According to the Kaduna State Police Commissioner, Mohammed Jinjiri Abubakar in Omipidan (2012:6), foreign countries sharing the same borders with the Northern states of Nigeria sneak into this country to cause disharmony. He did not hesitate to mention the citizens of Niger Republic, Chad and Cameroon among those involved in the terror activities in the north. This is evident on the arrest of many nationals of these countries, who were caught in mass killings and bombings. The Police Commissioner could not condone the activities of these foreigners any longer and therefore warned that the Police would no longer care about the Africa Charter on the free movement of citizens and would treat foreigners arrested with iron hand, adding that the nation’s kind gesture should not be taken for granted. The fear is that the invasion made by the foreign elements may endanger the existing good relationships between Nigeria and her neighbouring countries. When this happens, there is no doubt that the balance of payments of all countries involved will be badly affected. Under this circumstance, the economy of the north would have the greatest impact as the foreign nationals that contribute to a large extent on its development through their various economic activities, would relocate to their mother countries. It has been observed that the incessant bombings and gun attacks in the Northern parts of this country by the Boko Haram fundamentalists, have seriously affected the economic lives of individuals in the areas. For instance, commercial banks have been forced to review their operational hours to begin from 9.00am to 12.00 noon as against the normal operational period of 8.00am to 4.00pm (Mohammed, 2012:2). According to Mohammed, this is a part of efforts by these financial institutions to safeguard their business premises. Under this new


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operational arrangement, bank customers especially traders, find it very difficult to deposit their daily proceeds in the banks due to the limited banking operational hours that are no longer in their favour. Alternatively, these helpless traders have to hide their money in their shops. That is why in addition to the frequent suicide bombings, there are rising cases of shop-breakings and burglaries in the affected areas. The growing insecurity in the north has seriously affected the socio-economic condition such that many people including businessmen are fleeing to more peaceful environment in the southern parts of the country. Moreso, the prices of foodstuffs have started increasing astronomically following the drastic fall in the transportation of the foodstuffs from north to the south where they (foodstuffs) are greatly consumed. This is because the traders farm south find it unsafe to travel to north where they are sold. Consequently, these form products are stockpiled wasting in the hands of farmers who rely on them as the only source of livelihood. The insecurity situation created by the Boko Haram sect is threatening the existence of NYSC scheme, which is regarded as a unifying factor in this country. For instance, out of the 4171 members of the corps that were posted to serve in Adamawa state and later trained for the Adhoc electioneering in 2011 by the Independent National Electoral Commission (INEC), about 1041 of them fled the state before the conduct of the general elections, due to lack of inadequate security in the country (Egburonu et al, 2012:21). Following the massacre of many corps members in some of the northern states in the same year (2011), many of them besieged the NYSC Secretariat in Abuja demanding the reposting to states outside the Northern States. Today, the members of the scheme are still protesting vehemently against posting corps member to any of the crisis – ridden states in the north until peace is restored. Some of them have even vowed to quit the scheme should they be forcefully posted to such areas only to die in the waiting hands of Boko Haram sect. In a swift reaction to the Federal government’s decision not to post NYSC members to some Northern States, Governor Kashim Shettima of Borno State lamented the impact the decision will have on their


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affairs, and therefore, pleaded with the federal government to reconsider the decision as the state’s health and education sectors could be negatively affected. (Musa, Akhaine and Abdulsami, 2012:1). This is because corps members that have been serving in the state provided over 65 per cent of the required healthcare delivery and education services at the grassroot level where about 75 per cent of the citizens live. The current activities of the Boko Haram sect are obviously threatening the corporate existence of Nigeria’s sovereignty. The north and south of the country are in disharmony as a result of allegations and counter allegations against each other. There is established impression in the minds of the majority of the southerners that some northern leaders, disgruntled with the loss of leadership in the past nine years, have decided to precipitate crises using religious and sectarian platforms. According to the southerners, these frustrated leaders from the north have the belief that rulership of this country is their birthright. For instance, political power rested in the north for 38 years out of 50 years of this country’s existence (Obumneme, 2012:35). But having understood that the current political arrangement in the country has changed in contrast to their expectations, and having also realized that restoring the power (rulership) to status quo may not be easy, they decided to hide under the religious sect, Boko Haram to express their ill-fated anger and ill-feelings. That is why they decided to incite the members of the sect and other people at the downtrodden from the same north, who were already aggrieved and frustrated following the high-handedness of the same leaders, who have been tormenting, alienating and denying them of their fundamental human rights. It is believed that the poor and wretched young men from north are products of long years of neglect and economic slavery (Obumneme, 2012:35). That the poorest people will be found in the north has been authenticated by these boys who are willing to die by killing orders. There is no person with well established future prospect who would want to die recklessly. There is the belief from different quarters that the north is presently reaping what it sowed in the lives of these frustrated youths so many years ago.


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It is observed that Boko Haram activities are now threatening the hope and future of the children from the Northern states of this country. It is disheartening to note that the security situation in the areas has denied these children the opportunity of participating in the recent Cowbell National Secondary Schools Mathematics Competition (NASSMAC), organized by Promasordor Nigeria Ltd. It was revealed that out of those who emerged champions in this year’s competition, and were honoured, only two northern schools participated, and only one male student could make the list from the entire northern region (Tyessi, 2012:11). This situation is opposed to 6, 7 and 11 champions that emerged from the region in 2009, 2010 and 2011 respectively. The above pathetic situation calls for immediate solution to the security problem in the north as its escalation may lead to total breakdown of education system in the area, and the consequence will be very disastrous not only to the region but to the entire country. It is alleged that Boko Haram sect was the creation of politicians, especially some Governors from the north, who needed them (Boko Haram) to win elections, intimidate opponents, score political points and extract relevance at the national level (Okpaga, Ugwu and Eme (2012:85). According to these writers, the sect reached an agreement with the former Kano State Governor, Ibrahim Shekarau in 2004 to be receiving monthly payment of N5 million, which was later increased to N10 million in 2009. Similar agreement was equally reached between the sect and the Bauchi state government. Unfortunately, these agreements brokedown following the takeover of the mantle of leaderships in the two states by the new Governors in 2011, and the payments were stopped. This, according to the sect’s spokesman, warranted the bombings in the two states. That is why Lister (2012:14), claimed that it is no longer a sect of Islamic fanatics but has the support of disgruntled politicians and their paid thugs. In his own reaction, a legal practitioner and Human Rights Activists, Barrister Pedro Azogu was not comfortable with the roles played by some politicians from north. He stated without mincing words that all the children from the same cultural background, who were denied western education but trained to be killers, are the same people that will kill those that had deprived them of social and economic wellbeing (Onuoha, 2012:27),


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hence concentration of suicide bombings and gun attacks in the Northern States. Boko Haram has succeeded in instilling fear and hatred among the people who have been living in peace and harmony for decades. For instance, Adamawa state is a heterogeneous society with high social diffusion made up of over 70 different tribes, ethnic compositions and languages. But in spite of their differences, Adamawa was known to be one of the most peaceful states in the north east until the rise of the current bombings and attacks, which have brought misery among the people. Prior to the present insurgency, Muslims, Christians and other religious believers were living peacefully. But today, Boko Haram has brought disintegration, discrimination and lack of trust among people of the same blood. Muslims are no longer comfortably discussing family issues with their Christian brothers and sisters. This ugly situation is not peculiar to Adamawa State but cuts across the northern region. For fear of being attacked, northern parents are no longer eager to register their children in most schools in the north. That is why parents of northern origin are sending their children and wards down to the southern parts of this country for their education. Recommendation: Allegations from different quarters have been levelled against some high placed personalities in Northern Nigeria over their hidden agenda in providing financial support to Boko Haram religious sect. According to Ifijeh (2011:19), Senator Ali Ndume and Late Ambassador Saidu Pindar were believed to be some of the greatest financiers to the sect. This is in addition to the established case against a judge with the Kano State judiciary that his call log showed that he actually had links with the religious sect, Boko Haram. Considering the above, the federal government should regard these persons as terrorists, who aid and abet terrorism in Nigeria, and therefore should be arrested and prosecuted accordingly to serve as a deterrent to others who are yet to be exposed. Federal government should be reminded of the fact that the members of Boko Haram comprise the children of the less privileged people who were unable to have access to western education owing to financial


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incapabilities of their parents, and therefore, the products of long years of neglect and economic slavery. To reduce the incidents of violence and insecurity resulting from reactions of the aggrieved and frustrated people of the downtrodden from the north, all the governments from the crisis-ridden areas should focus on investing more in education to tackle the issues of illiteracy and economic backwardness. In this regard, the Governors from the areas concerned should introduce free and compulsory education particularly to the “Almajiris.” The federal government had in many occasions declared state of emergencies in some northern states that were seriously devastated by the Boko Haram sect. Unfortunately, this strategy was of no effect as the members were not domiciled in a particular area. Alternatively, the federal government should invite the northern state Governors and security agencies as well as the leaders of the sect, who are known to claim responsibilities for the most attacks, for a dialogue. In this dispensation, the amnesty approach employed in the Niger – Delta region can be useful. The multi-ethnic nature of this country is regarded as one of the major challenges facing the security situation in this country. This condition has obviously generated a lot of primordial feelings and sentiments among Nigerian populace. It is on this premise that Odita (2012:17), reminded every Nigerian that this country belongs to all of us and each person has a responsibility not just the security agents. In this respect, Nigerians should not fold their hands indefinitely waiting for the government to tackle the incessant bombings and gun attacks alone. If a dialogue approach fails, the government should provide enabling environment and adequate tools to well trained security agents to perform, while the public provides reliable information on the whereabouts of the sect’s members, who are residing in the midst of the people. Considering the level of security consciousness in this country, one may be constrained to state that Nigeria is not yet ready to tackle the issue of Boko Haram menace in the north. It is pertinent to remind Nigerians that after 9/11 disaster in United States and July 7 bombings in London,


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all important public facilities have been well guarded with modern technological gadgets capable of detecting and preventing bomb blasts. It is not out of place if Nigeria should borrow a leaf from these advanced countries by ensuring that all the various security agencies are put on red alert and ensure that all sensitive public facilities are properly guarded with modern technological gadgets capable of detecting and preventing bomb blasts. Conclusion The dangerous dimension the insecurity challenge has posed by the fundamentalist group, Boko Haram, has heightened serious fears among Nigerian populace. The trend has led to incessant suicide bombings and all sorts of attacks in the northern parts of the country with little or no provocation. Consequently, lives and property are lost, business ventures and shops have remained closed especially in the north. Most regrettably, the Igbos who are the life-wire of economic activities in the north are relocating in large numbers to their states of origin to avoid losing their lives in the hands of the sect. It was discovered from the study that the use of force or declarations of state of emergencies by the federal government were of no effect to the Boko Haram insurgency. Alternatively, the federal government should embrace dialogue approach, especially now that the fundamentalist group has declared its readiness to dialogue with the federal government (Akhain, 2012:51), but this can only be effective if the dissident group within the government cycle, who are ever ready to sabotage the strategy, are fished out, dislodged and prosecuted accordingly. References

Akhain S. (2012), “Why Government Fails to End Boko Haram

Insurgence,” The Guardian, Saturday, July 7. Anugwom, E.E. (1994), Economic Conditions and Industrial Conflict in

Nigeria: A Comparative Study of Pre and Structural Adjustment Periods (1981-1992), Nigerian Journal of Management and the Social Sciences, Vol. 2, No. 1.


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Egbemode F. (2012), “2015: Nigeria Going, Going…,” Sunday Sun,

January 1, Vol. 6, No. 457. Egburonu S. et al. (2012), “Tension as Groups Flee Over Boko Haram

Threats,” Sunday Nation, January 29. Ifijeh V. (2011), “Terrorist Judge?,” The Nation, Tuesday, December

27. Mohammed M. (2012), “Violence and Threat to Yobe’s Economic

Growth,” The Moment, Wednesday, March 7. Musa N., Akhaine S. and Abdulsami I. (2012), “Shettima and others

Beg FG to Rethink Decision on NYSC Postings,” The Guardian, Saturday, July 7.

Nnoli O. (2003), “Communal Conflict and Population Displacement:

An Introductory Note,” in Nnoli O. (ed), Communal Conflict and Population Displacement in Nigeria, Enugu: Pan-African Centre for Research.

Obumneme E. (2012), “The Creation of Boko Haram,” Sunday

Vanguard, February 19. Odita E. (2012), “Our Prayers Are Being Answered,” Newswatch,

February 27, Vol. 55, No. 7. Odu M. (2012), “Chronic Absence of Middle Class in Islamic North,”

Sunday Independent, June 17. Okpanga A., Ugwu, S.C. and Eme, O.I. (2012), “Activities of Boko

Haram and Insecurity Question in Nigeria,” Arabain Journal of Business and Management Review, Vol. 1, No. 9, April.


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Omipidan I. (2012), “Foreigners Involved in Terror Acts in Nigeria,” Daily Sun, Wednesday, June 20.

Onah, F.O. (2003), Human Resource Management, Enugu: Fulladu

Publishing Company. Onuoha C. (2012), “Northern Interest will Ruin Nigeria,” Daily Sun,

Wednesday, February 8. Tyessi K. (2012), “Insecurity Keeps Northern Students from Maths

Competition,” Leadership, Friday, June 6. Ugwu, S.C. (2000), Issues in Local Government and Urban

Administration in Nigeria, Enugu: Echrisi and Co.


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The Effect of Poor Implementation of Tax Policies on Developing Economies. A study of Nigerian Economy, (1999-2010).

Echekoba Felix Nwaolisa

[email protected] [email protected]

Lecturer; Department of Banking and Finance Nnamdi Azikiwe University, Awka

Ezu Gideon Kasie

[email protected] 08032932828

Lecturer; Department of Banking and Finance Nnamdi Azikiwe University, Awka

Abstract This study investigated ‘The Effect of Poor Implementation of Tax Policies on Developing Economies; A Study of Nigerian Economy, (1999-2010)’. Past studies have largely focused on challenges and prospects of taxation in Nigeria. This study found it expedient to explore the rationale behind poor tax system in Nigeria. To achieve the objective of the study, the following objectives were set out by the researcher: to examine the causes of double taxation by different levels of government on Nigerian citizens and non-citizens alike: to examine the perceived seriousness of tax evasion vis-à-vis various legal offences. Analytical research method was used since the researcher made use of secondary data obtained from the office of Federal Inland Revenue Service. The results show that that the expected revenue mapped out by Federal Inland Revenue Service could not be met due to poor implementation of tax policies in Nigeria. It was recommended that the Nigerian Tax system should be simple (easy to understand by all), certain (its laws and administration must be consistent) and clear (stakeholders must understand the basis of its imposition). Key words: Tax evasion, Double taxation, Tax regime Introduction A tax policy represents key resource allocator between the public and private sectors in a country. It is usually imposed on individuals and


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entity that make up a country. The funds provided by tax are used by the states to support certain state obligations such as education systems, health care systems, pensions for the elderly, unemployment benefits, and public transportation. A nation’s tax system is often a reflection of its communal values or the values of those in power. To create a system of taxation, a nation must make choices regarding the distribution of the tax burden, who will pay taxes, how much they will pay and how the taxes collected will be spent. In Nigeria, the taxation system dates back to 1904 when the personal income tax was introduced in Northern Nigeria before the unification of the country by the colonial masters. It was later implemented through the Native Revenue Ordinances to the western and Eastern regions in 1917 and 1928, respectively. Among other amendments in the 1930s, it was later incorporated into Direct Taxation Ordinance No. 4 of 1940. Since then different governments have continued to try to improve on Nigeria’s taxation system. The general opinion among scholars is that Nigeria’s fiscal regime is characterized by unnecessary complex, distortions and largely inequitable taxation laws that have limited application in the formal sector that dominates the economy. Given the foregoing, it is important that Nigeria adopt a taxation policy that would enhance national development. The Nigerian tax system is basically structured as a tool for revenue collection. This is a legacy from the pre-independence government. Based on 1948 British tax laws and have been mainly static since enactment. The need to tax personal incomes throughout the country prompted the Income Tax Management Act (ITMA) of 1961. In Nigeria, Personal Income Tax (PIT) for salaried employment is based on a ‘Pay As You Earn’ (PAYE) system, and several amendments have been made to the 1961 ITMA Act. For instance, in 1985 PIT was increased from N600 or 10 per cent of earned income to N2,000 plus 12.5 per cent of income exceeding N6,000. In 1989, a 15 percent withholding tax was applied to savings deposits valued at N50,000 or more while tax on rental income was extended to cover chartered vessels, ships or aircraft. In addition, tax on the fees of directors was fixed at 15 percent. These policies were geared to achieving effective protection for local industries, greater use of local raw materials, generating increased government revenue among others. Since the


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implementation of the Structural Adjustment Programme (SAP), however, taxes have been used to enhance the productivity and competitiveness of business enterprises. Consequently, attention has been focused on promoting exports of manufactures and reducing the tax burden of individuals and companies. In line with this change in policy focus, many measures were undertaken. These involved, among others, reviewing custom and excise duties, continuing with the reduction of company and income taxes, expanding the range of tax exemptions and rebates, introducing capital allowance, expanding the duty drawback scheme and manufacturing-in-bond scheme, abolishing excise duty, implementing VAT, monetizing fringe benefits and increasing tax relief to low-income earners. The Problem Efficient tax system is tantamount to economic growth and development. Any country that treats it with hand glove is heading towards a precipice. In Nigeria, tax evasion and other related tax offences are very prevalent. Citizens and non-citizens alike evade tax with reckless abandon owing to the government attitude towards taxation in Nigeria. Whereas, tax evaders are dealt with ruthlessly in advanced countries of Europe, America and Asia, it is regarded as a simple offence which cannot attract a heavy penalty in Nigeria. In Nigeria, the only group of people that pay tax as at when due are civil and public servants because their taxes are deducted from the source. However, business men and companies that control billions or millions of naira pay little or no tax.

Moreover, because of lack of efficient tax system in Nigeria, there is a conflict of interest amongst the Federal, State and Local Government in tax collection which culminates into double taxation which does not augur well with the Nigerian Economy. The main reason why different levels of government feel non-challant about efficient tax system is because of their belief that there must be a revenue from the oil sector which will be shared at the end of every month. Therefore this study seeks to tackle such lackadaisical attitudes.


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Objectives of the Study The broad objective of this study is to evaluate the effect of poor implementation of tax policies on developing economies using Nigerian economy as a case study. The specific objectives of this study are as follows

1. to examine the causes of double taxation by different levels of government on Nigerian citizens and non-citizens alike.

2. examine the perceived seriousness of tax evasion vis-à-vis various legal offences;

3. to assess the effect of corruption on the actualization of efficient tax policy in Nigeria.

4. to evaluate different methods which tax authorities can employ in ensuring prompt payment of tax by Nigerians and non-Nigerians who work in the country.

5. to compare the Nigeria Tax Policy and USA Tax Policy so as to suggest the best possible means of solving tax evasion in Nigeria.

Hypotheses A hypothesis is a tentative answer to a research question that is to be subjected to further empirical validation. For the purpose of this study, two hypotheses will be stated in null form H0: Poor implementation of tax policies in Nigerian do not encourage tax invasion. H0: Double taxation discourages investors from investing in Nigeria. Significance of the Study A major problem in Nigerian tax regime is the multiplicity of tax-imposing and tax-collecting entities at federal, state, and local government levels. Like the Nigerian federation itself, there is little clarity on jurisdictional competencies and indeed, many observers doubt whether there is genuine fiscal federalism in Nigeria. This research work will be significant to the following stakeholders: Government: Different levels of government in Nigeria should be able to harmonize and design a better tax regime which will no longer encourage double taxation inefficiencies.


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Investors: Manufacturers and owners of small and medium scale industries will find this study useful because it will discuss extensively the danger inherent in tax evasion. Scope of the Study This study covers prominent tax polices initiated by the Government of Nigeria and its subsequent implementation. It equally compares the tax regime penalties in USA and Nigeria. Federal Inland Revenue Services was used as a focal point. Theoretical Framework Taxation is basically the process of collecting taxes within a particular location. In this regard, tax has been defined as “a monetary charge imposed by the Government on persons, entities, transactions or properties to yield revenue”. Okodo (2001) defined tax as “the enforced proportional contributions from persons and property, levied by the State by virtue of its sovereignty for the support of Government and for all public needs”. Taxes may be direct or indirect and may be imposed on individual basis, on entities, on assets and on transactional basis. In Nigeria, taxes are imposed on the individuals such Personal Income Tax and Development Levy. On companies such as, Companies Income Tax, Petroleum Profit Tax, Education Tax and Technology Levy. On Transactions such as, Value Added Tax, Capital Gains Tax, Stamp Duty, Excise Duty, Import Duty and Export Duty. On Assets such as Property Tax.

Objectives of the Nigerian Tax System Oshinowo (2001) stated that the Nigerian tax system is expected to contribute to the well-being of all Nigerians and taxes, which are collected by Government should directly impact on the lives of the citizens. This can be accomplished through proper and judicious utilisation of the revenues collected by government. In line with the above, there are certain objectives, which the Tax System is expected to achieve. These objectives include:


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To Promote Fiscal Responsibility and Accountability Okorie (1999) asserts that one of the primary objectives of the National Tax Policy is to create a tax system, which ensures that Government transparently and judiciously accounts for the revenue it generates through taxation by investing in the provision of infrastructure and public goods and services. Where this is in place, Nigerians would have a tax system that they can fully relate to and which is a tool for National Development. To facilitate economic growth and development. Agbade (2003) stated that the overriding objective of the Nigerian tax system should be to achieve economic growth and development. As such, the system should allow for stimulation of the economy and not stifle growth, as it is only through sustained economic growth that the potential ability to offer improvements in the well-being of Nigerians will arise. The tax system should therefore not discourage investment and the propensity to save. Taxes should not be a burden, but should be applied proactively with other policy measures to stimulate economic growth and development. To provide the government with stable resources for the provision of public goods and services For Nigeria to pursue an active development agenda and carry out the basic functions of government, its tax system should generate sufficient resources for government to provide basic public goods and services (e.g. education, healthcare, infrastructure, security etc., (Bulus, 2010). It is therefore a primary objective of taxation to provide the government with resources that it shall invest in judicious expenditure that will ultimately improve the well-being of all Nigerians. To Address Inequalities in Income Distribution Nigeria’s tax system should take cognisance of our peculiar economic circumstances and seek to narrow the gap between the highest and lowest income groups. Those with the highest incomes should pay the highest percentage of tax and tax revenue should be utilised to provide Nigerians with affordable social amenities, basic infrastructure and other utilities.


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To Provide Economic Stabilisation Nigeria should use its tax system to minimise the negative impacts of volatile booms and recessions in the economy and also to help complement the efforts of monetary policy in order to achieve economic stability. Impediments to Efficient Tax System in Nigeria Evasion of customs duty Customs duties are an important source of revenue in the developing countries. The importers purport to evade customs duty by (a) under-invoicing and (b) mis-declaration of quantity and product-description. When there is ad valorem import duty, the tax base is reduced through under-invoicing. Mis-declaration of quantity is more relevant for products with specific duty. Smuggling Egwu (2002) defined smuggling as importation or exportation of foreign products through unauthorized route. Smuggling is resorted to for total evasion of leviable customs duties as well as for importation of contraband items. A smuggler does not have to pay any customs duty since the products are not routed through an authorized or notified Customs port and therefore, not subjected to declaration and payment of duties and taxes. Anya, (2007) stressed that Nigeria has one of the worst porous borders in the world stretching from Borno, Zamfara, Kogi and Cross-River states thus making it possible for smugglers to have a field day. Government response Tax evasion also depends on the efficiency of the tax administration. Corruption by the tax officials often renders control of evasion difficult. Tax administrations resort to various means for plugging in scope of evasion and increasing the level of enforcement. When the president and governors receives huge amount of money from federal allocation, it makes them lackadaisical about engaging in internally generated revenue which involves taxation thereby encouraging tax evasion.


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Corruption by tax officials Corrupt tax officials cooperate with the tax payers who intend to evade taxes. When they detect an instance of evasion, they refrain from reporting in return for illegal gratification or bribe. Corruption by tax officials is a serious problem for the tax administration in a huge number of developing and southern European countries. The United States Tax System Taxes in the United States are administered by literally hundreds of tax authorities. At the Federal level there are three tax administrations. Alcohol, tobacco, and firearms taxes are administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). All other taxes on domestic activities are administered by the Internal Revenue Service (IRS). Taxes on imports (customs duties) are administered by U.S. Customs and Border Patrol. TTB is part of the Department of Justice and CBP belongs to the Department of Homeland Security. The IRS is a division within the U.S. Department of Treasury. Organization of state and local tax administrations varies widely. Every state maintains a tax administration. A few states administer some local taxes in whole or part. Most localities also maintain a tax administration or share one with neighbouring localities, Steve (2002). The United States Government has fortified their borders especially the border between the United States and Mexico where drug barons and other economic saboteurs ply their trade. Celebrated cases of tax evaders in the United States of America

1932-1939: Al Capone served seven years of an 11-year sentence in federal prison on Alcatraz Island for tax evasion. He was let out of jail early while suffering with the advanced stages of Syphilis.

1963: Joe Conforte, a brothel owner, serves two and a half years in prison, convicted for the crime of income tax evasion.

Cornelius Gallagher (D-NJ) pleaded guilty to tax evasion, and served two years in prison.

1974: Otto Kerner, Jr. (D) Resigned as a judge of the Federal Seventh Circuit Court District after conviction for bribery, mail


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fraud and tax evasion while Governor of Illinois. He was sentenced to 3 years in prison and fined $50,000.

1982: Frederick W. Richmond (D-NY) was convicted of tax evasion and possession of marijuana. He served 9 months.

1987: Robert Bernard Anderson (R) former United States Secretary of Treasury (1957–1961) pled guilty to tax evasion while operating an offshore bank and sentenced for 2 years.

Harry Claiborne, Federal District court Judge from Nevada, was impeached by the House and convicted by the Senate on two counts of tax evasion. He served over one year in prison.

1991: Harry Mohney, founder of the Déjà Vu strip club chain, served three years in prison for tax evasion.

1992: Catalina Vasquez Villalpando (R), Treasurer of the United States, pled guilty to obstruction of justice and tax evasion and was sentenced for 2 years in prison.

Nicolas Castronuovo is the owner of the Florida pizza parlor where Senator Robert Torricelli was caught on an FBI wiretap soliciting contributions in 1996. Nicolas Castronuovo and his grandson Nicholas Melone later pleaded guilty to evading the government of $100,000 and was sentenced for 3 years in prison.

1995: Webster Hubbell, (D) Associate Attorney General, pled guilty to mail fraud and tax evasion. He is sentenced to 21 months in prison.

1996: Heidi Fleiss was convicted of federal charges of tax evasion and sentenced to 7 years in prison. After two months she was released to a halfway house, with 370 hours of community service.

2002: James Traficant (D-OH) was convicted of ten felony counts including bribery, racketeering and tax evasion and sentenced to 8 years in prison.

2002: The Christian Patriot Association, an "ultra-right-wing group", was shut down after convictions for tax fraud and tax evasion.

2005: Duke Cunningham (R-CA) pleads guilty to charges of conspiracy to commit bribery, mail fraud, wire fraud and tax


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evasion in what came to be called the Cunningham scandal. He was sentenced to over eight years.

2008: Actor Wesley Snipes was sentenced to 3 years in jail for tax evasion.

2008: Charles Rangel (D-NY) failed to report $75,000 income from the rental of his villa in Punta Cana, Dominican Republic and was forced to pay $11,000 in back taxes.

Jack Abramoff , lobbyist, was found guilty of conspiracy, tax evasion and corruption of public officials in three different courts in a wide ranging investigation. Currently serving 70 months and fined $24.7 million

Jared Carpenter , Counsel of Republicans for Environmental Advocacy, pled guilty to income tax evasion, and received 45 days, plus 4 years probation.

Source: Federal Inland Revenue Services Archive, Washington DC (2010) Unfortunately, in Nigeria due to lax in efficient tax system and over reliance in the down stream sectors of the economy, there is no celebrated cases of prominent Nigerian’s that was jailed for tax evasion nor any company was fully penalized for evading tax. Research Method and Results Analytical research method was used since the researcher made use of secondary data obtained from the office of Federal Inland Revenue Service. Table 1: Total Tax Collection for March, 2011(in billion), oil and non-oil.

Category 2011 FIRST Monthly Target (N’b)

Actual Collection (N’b)

% OF Contribution To Total Collection

Oil tax 140.9167 165.8922 60.11 Non-oil tax 150.1250 110.0688 39.89 Total 291.0417 275.9610 100.00

Source: FIRS, Reporting and Statistics Department


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The table above shows that the expected revenue mapped out by Federal Inland Revenue Service could not be met due to poor implementation of tax system in Nigeria. If different levels of government engage in strict implementation of tax regime, there will be efficient tax system in the country. Table 4.2 : Tax Revenue Collection by Tax Types.

Tax Types

Annual Tax Target (Nb)

Actual Collection (Nb)

% Contribution to the Total Collection

PPT 140.9167 165.8922 60.11 CIT 63.2500 38.4155 13.92 GI 7.4167 0.7456 0.27 CGT 0.2917 0.0089 0.01 SD 1.2500 0.5973 0.22 VAT 64.1666 61.6073 22.32 EDT 8.0833 3.3752 1.22 PIT 4.5000 5.1623 1.87 POL 0.4167 0.0474 0.02 NITDEF 0.7500 0.1093 0.04 TOTAL 291.0417 275.9610 100.00

Source: FIRS, Planning, Reporting and Statistics Department The table above equally shows that the target revenue which the Federal Inland Revenue Service projected could not be met because of governments non-challant attitude towards taxation. The result of the above analysis shows that poor implementation of tax system in Nigeria has led loss of huge revenue to the government. Recommendations 1. Taxpayers should understand and trust the tax system, and this can

only be achieved if Nigerian tax policy keeps all taxes simple, creates certainty through considerable restrictions on the need for discretionary judgements, and produces clarity by educating the public on the application of relevant tax laws. It is therefore


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imperative that the Nigerian Tax system should be simple (easy to understand by all), certain (its laws and administration must be consistent) and clear (stakeholders must understand the basis of its imposition).

2. To enable a high level of compliance, the economic costs of time

required, and the expense which a taxpayer may incur during the procedures for compliance, shall be kept to the absolute minimum at all times. Furthermore, taxpayers should be regarded as clients with the right to be treated respectfully. The convenience of the taxpayer and minimal compliance cost should guide the design and implementation of every tax in Nigeria.

3. A key feature of a good tax system is that the cost of administration

must be relatively low when compared to the benefits derived from its imposition. There must therefore be a proper cost - benefit analysis before the imposition of any taxes and the entire machinery of Tax Administration in Nigeria should be efficient and cost effective.

References Agbade, J.N. (2003). Technological innovation and Taxation in Nigeria:

An evaluation of Citizens’ perceptions, American Academy of Financial Management.

Anya, B. H. (2007). Leadership and Tax Management – A case study

based on SAS Cargo, Master’s Thesis, Stockholm School of Economics, p.7.

Bulus, H.I (2010). Survey of Nigerian Tax systems: Citizens option.

ABI/INFORM Global, p. 4A-13A. Egwu, T.U. (1993). Doing Your Research Project – A guide for first-

time researchers in education and social science, 3rd Ed, Open University Press, Buckingham.


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FIRS WDC, (2010). Celebrated Cases of Tax offenders in the United State of America. Washington Press.

Okodo, J. W. (2001). Research methods in the social sciences, Harper

Collins, New York. Okorie, S.U (1999). Nigerian Tax Regime: Problems and Prospects.

Journal of Accountancy. 21, p. 1573-1624. Oshinowo, D. B., (2001). Realizing the gains from Efficient Taxation:

Cost, Pricing, and Payment Choice. Journal of Money, Credit, and Banking, vol. 33, No. 2, pp. 216-234.

Steve, J. M. (2002). Cannons of Taxation. Johnjacobs Publishers.

Enugu


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Conflict Management in Organization: Gender Perspective

Ijeoma aniemeka

Department of Public Administration Federal Polytechnic Oko

Dr. Mrs f. Agbodike

Dr. Mrs. Ngozi Ewuim

Department of Public Administration Nnamdi Azikiwe University Awka

Abstract Organizations experience many factors that lead to dysfunction in their performance. Conflict in organization produces a climate which culminates into chaos if not timely checked. Many organizations have created several strategies to manage conflicts or even prevent it but these have not been successful. The potentials of women have not been fully explored in the context of conflict management. It is the aim of this paper to buttress the importance of involving women in conflict management because of certain imbued qualities they possess. These qualities were listed and highlighted upon. Recommendations were made on the indispensability of women in conflict management. Keywords: Conflict, management, Gender Introduction: The word Conflict means to fight or to struggle for something. There are other variables that relate to conflict such as crisis which has an emotional and spontaneous aspect and has a duration that is not that long. Dispute is another variable and it has a sense of quarrelsomeness. Litigations is also another variable which based on a question of interpretation aspects. A disagreement is contestation between two or more parties about opinions on respective interest. Conflict possesses all


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of the above mentioned attributes. For this the issue of conflict in organization is serious and every hand must be managed to help the organization to forge ahead. Conflict in organization is not new. It is as old as organization. Conflict is unavoidable but its presence can be minimized through timely and wisely intervention. Conflict is a state of opposition between two parties or two individuals. Many factors contribute to the emergence of conflicts in organizations. In order to minimize conflicts, It is usually better to acquaint one self with the cause as well as highlighting the consequences. In any place where two or more people have come together to pursue a common purpose, conflicts exist. It exists in organization between colleagues, workers and the management staff, or between two groups may be department or unit or section. A conflict ridden organization do not effectively achieve the purpose for which it was set out. It is always dysfunctional. In conflict management, it seems women are not always considered an effective machinery, most often men are used in managing conflict. In analyzing the nature of women, it seems that, they are better equipped for conflict management. It is the highlight of the paper, to buttress the importance of involving women mostly in conflict management so that conflicts will be minimized or reduced drastically. Currier, (2005) found out that “though women are excluded from official peace – building and conflict recognition efforts, they still organize themselves in many unofficial ways. This they do through participation in non-profit organizations, support groups and grass roots, activitism in their communities. Even in their official working places, they extend this support attitude of bringing peace when there is conflict” Causes of Conflict Conflict is opposition between two parties resulting from struggles over values, ideas for power and resources (Sanchez, 2011). To be in conflict connotes being in disagreement or contradictory or in opposition (Moris 2000).


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Anywhere there is more than one person there is bound to be different ideas, behaviours and interests which can create conflict. These differences in ideas and behaviours emerge due to differences of make up of individuals, socio-cultural background, educational attainment etc. Conflict is a natural state of affairs, it is bound to take place and in some places it may beneficial. It may lead to a higher quality of products and services (Foundation Coalition 2011). Some of the factors that lead to conflicts in organizations are:

The uncertainty that accompanies organizational change heightens the prospects for intra-organization conflict.

When there is unclear boundaries of responsibilities. When there are differences of interest whether in intra-group,

inter-group, interpersonal or social. When there is scare resources to go round to all the sectors in

the organization that are in need of funds or professional services.

Other causes can emanate from personality issues in organization.

Sometimes family problems. Poor performance can generate conflict in any group setting

when workers perform below standard. Poor communication can cause conflict, if it is ambiguous or

delayed. Office romance can generate conflict Public display of affection may lead to accusation of

favouritism in the organization. Social loading which is the absence of individual effort among

the group efforts. This is when a person is not contributing his/her fair share to the group, thinking that others will pick up his/her slack.

Consequences of Conflict in Organization

Unresolved conflict in the workplace has been linked to miscommunication resulting from confusion and refusal to cooperate.


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It has raised quality problems and missed deadlines and delays. Injured parties may decide to delay their respective tasks or doing it according to laid down standard.

It has increased stress among employers and employees alike. Consequences of conflict in organization cannot be over stated.

The presence of conflict results is reduced creative collaborations and team problem solving.

It leads to disruption of work flow. It leads to decreased customer or client satisfaction.

It leads to distrust, split camps, gossip, rumour mongering and even at times it can lead to death.

Conflict can lead to waste of resources. Unresolved conflict also lead to strike Conflict may result to high rate of employee turnover.

Management of conflict by women Due to the fact that conflict is inevitable in many organizations many strategies have been adopted by management staff of such organization to tackle conflict issues. Despite that, organizations are still experiencing serious unresolved conflicts and these are mitigating against the realization of the cooperate goal. Conflict can be organizational or social in nature no matter the nature of the conflict the process of managing it is by providing each side needs and adequately addressing their interests so that they are satisfied with the outcome. Over the years, women have been relegated to the background in the area of conflict management. It is about high time the women contributions to peacemaking must be acknowledged. Abdukarim (2002) said ‘it is about time that the people of Nigeria are indeed of the whole world appreciated the tremendous potentiality that is inherent in this (so called) weaker sex. “Many ways, they are much stronger”.


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Peace women (2004) asserted. That “women and men have different access to resources, power and decision making before, during and after conflicts. The experience of women and men in situations of tension, war and past conflict reconstruction is significantly different”. In many organizations it seems many women do not have free access to resources, power and decision making as regards to conflict as much as their male counterparts. This situation has jeopardized the management of conflict in the organizations. Wiki books (2011) made us to belief that an effective conflict solver must avoid generalizations about the parties and situations. He/She must try to observe each person and situation in the context they exist. Women by their nature are more sensitive & patient to observe and record their observations. Men are impatient and always in a hurry and for that they would jump into wrong conclusion.

Women by their nature are good nurturers, social problem solvers and excellent negotiators. The Gender schema theory confirms these attributes of women. The theory was propounded by Sandra Bem in 1981. This theory combines the social learning and cognitive learning theories. Gender Schema theory implies children learn about what it means to be male and female from the culture in which they live. It concerns the development of an internal Schema, or mental framework which organizes and directs the behaviour of an individual (Brannon 2002).

In the Nigerian society, we can see the implication of the theory, girls are made to believe that they ought to be submissive, dependent, sensitive, more receptive and more tactful than their counterpart who are more assertive, insensitive, dominant etc. In organization conflict management, the qualities of women are more likely to be utilized in the conflict management. Surprisingly the reverse is the case as more men are found in conflict resolution in many organization. Wiki books (2011) went on to analyze the traditional Gender characteristics. Feminine Characteristics Masculine Characteristics Submissive Dominant


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Dependent independent Emotional rational Receptive Assertive Intuitive analytical Timid Brave Passive Active Sensitive Insensitive There are other certain attributes that a problem solver or conflict manager must posses and one of them is tact. Diaz (2008) said that “tact is being mindful of the other person and the context while taking into account one’s own account”. Tact is very important for keeping or creating harmonious relationship. Women are more tactful than men. Even in the families, they utilize this attribute, by keeping the family coordinated and organized. Those women in the organization can also utilize this potential if they are given the opportunity to manage conflict in the organization. Diaz also went on to bring forth another factor that can help in conflict management and he said “Words were originally magic and to this day words have retained much of their ancient magical power. By words one person can make another blissfully happy or drive him to despair”. Women use more soft and low tone in situation of chaos unlike the men. Magic language is good for negotiated solutions and it may generate the changes required for conflict management. Women who more sensitive than men, and more emotionally attached to people. They are the ones that often use this magic language………..words. All these go to buttress the point that more women must be employed in conflict resolution in organizations because of these their attributes. Foundation coalition (2011) came up with modes for conflict management. Five modes were listed and analyzed. Conflict management decreases the odds of non productive escalation. It involves acquiring skills related to conflict resolution, self awareness about conflict modes, conflict communication skills and establishing a structure for management of conflict in the organization.


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The five conflict management modes are: Competing Avoiding Accommodating Compromising Collaborating

Each of these modes are characterized by two sides, assertiveness and cooperation.

Competing is used when quick and perhaps unpopular decisions are to be made. It is characterized by high assertiveness and low cooperation. Skills needed for this mode are arguing or debating, using rank of influence, asserting your opinion and feelings, standing your ground, stating your position clearly. Avoiding is another mode, this is characterized by low assertiveness and low cooperation, it is used when issues of low importance is at stake or when someone is in a low position. Skills needed are ability to withdraw, ability to sidestep issues, ability to leave things unresolved, and sense of timing. Accommodation mode is characterized by low assertiveness and high cooperation. Skills needed in this mode are forgetting your desires, selflessness, ability to yield and obeying orders. Compromising is characterized by moderate assertiveness and moderate cooperation. Collaboration is another mode used in conflict management. It is characterized by high assertiveness and high cooperation. Collaborated skills are active listening, non-threatening confrontation, identify concerns and analyzing inputs. It can be seen as giving up more than you want. Skills utilized in this mode are negotiation, assessing values, finding a middle ground and making concessions from the analysis of these modes, Accommodation and Collaboration are characterized by high cooperation. Accommodation someone is giving in order to satisfy others and collaboration handling is when, people try to satisfy both sides.


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From the gender characteristics enunciated by Wiki books, it looks certain that the female gender have the qualities for conflict management, due to their nature. They are more attuned to accommodating people and collaborating with others more than their male counterpart. Many organizations have established many ways of managing conflict but most times the efforts of women were not considered in this regard and most often, the strategy of conflict management may prove to be dysfunctional due to the absence of women. Women have the integrating potential and know how to use suiting words at the appropriate time to achieve their goals. The males are always in a hurry and most times insensitive and with their insensitive nature they may not analyze the situation properly and patiently to the detriment of the organization. Adults tend to respond positively to a more democratic leadership than to high assertiveness type of leadership which are the characteristics of men. Any method that organization may want to utilize in conflict management, let the women be much involved than the men so that the conflict can be managed properly. Conclusion As conflict is a natural state of affairs in organization which is bound to happen, efforts must be made to prevent and manage conflict when it comes. There are some conflicts that can be resolved and that is they may not rear up again, but there are some that cannot be resolved, then they must be managed properly by competent hands so as to prevent them from making the organization un productive. Women by their socialization are more prone to peaceful environment hence good conflict managers. Any decision concerning conflicts and its management must involve women as well as involving them during implementation.

Recommendation


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The exclusion of women from decision-making positions as regards to conflict management must stop. Women must be involved more than the men in conflict resolution because they have the more wherewithal to manage conflicts.

Women must be provided with the necessary spaces for their voices to be heard and their contributions must be acknowledged.

The men folk must be oriented to put more time and efforts at the home front, so as to give women more time and energy to seek for employment outside the homes in order to help in dispelling conflict and its consequences in organization where they found themselves.

The profile of women must be raised in conflict prevention resolution, post conflict peace building both among indigenous people and among general people.

Women must be encouraged to seek decision-making positions and build mechanisms which enable them to have access to such positions whether in the traditional or modern governance system.

References Abdulkarim, H.T (2000) conflict Resolution and post-conflict peace

building in Nigerians: Gender perspective [email protected] Brannon, L(2002) All ya Bacon notesbrannonb.htm http:// www.foundationscoalition.org.pubilcations cantu, E(2002) Gender Psychological perspective 3rd Edition http://blu.e\utb.edu/ecantu/psy

morris, (2000), Processes for conflict management and dispute resolution. www.businessethics.cadefintion/conflcitintmlcached


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sanchez, C. (2011),blogswww.per.un.hHp://www.peacewomen.org Nigeria any, 04 role html (2011).

Wikipedia, The free Encyclopedia work place conflict April, 17 Wiki books (2011) Introduction to sociology Genrer hHp://en.Wikibooks.org/Wiki March 23

Peace women.org/Ngeria,http://www.role.htm/2004

http://www.psychologycampus.com/industirlapsychology/group behaviour.html

Courier E (2005) “Women and conflict resolution: Feminism, Peace – Building and politics in the European Union”. A paper presented at IWPAS Eights International Women’s Policy Research Conference, 06/2005


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The Performance of Agricultural Cooperative Societies under the National Programme on Food Security in Enugu State, Nigeria

Onugu Charles Uchenna Ph.D Email: [email protected]

Abdulahi Taiwo Olabisi B.Sc

Department of Cooperative Economics and Management Nnamdi Azikiwe University, Awka Anambra State Nigeria

Email: [email protected]

Abstract National programme on Food Security (NPFS) is a special programme introduced by the Federal government of Nigeria on agricultural activities in order to increase food production in the country. This study is therefore an appraisal of the performance of agricultural cooperative in the National food security programme. The study was carried out in Aniri Local Government Area of Enugu State. The specific objective of the study are to ascertain the socio-economic characteristics of farmers; identify the services available to farmers in the NPFS; determine the extent agricultural services are accessible in the NPFS, appraise the effect of using agricultural cooperative societies in the implementation of NPFS as well as examine the challenges. Data were obtained from both the ADP staff and cooperative farmers using a structured questionnaire. Simple percentage and statistical package for social sciences (SPSS version 17) was employed in analyzing the data and correlation analysis was used to pair the two variables (farmers and extension workers) and t-test was used to test the hypothesis. The study revealed that agricultural cooperative societies are effective means of accessing agricultural services under NPFS. The study also revealed that both farmers and ADP extension workers encountered some challenges in their bid to achieve the goal of the programme. The study therefore recommends that there should be proper publicity and awareness on NPFS programme, adequate fund should be made available for the success of the programme and the youth should be encouraged to embrace agriculture as a means of employment. Keywords: Cooperative, Agriculture, Agricultural Cooperative, Food Security, Agricultural Development.


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Introduction Today, there is a growing advocacy for achieving sustainable food security in Nigeria and a lot of effort has been directed at finding appropriate structure for organizing millions of small scale farmers towards achieving food security. Agricultural cooperative society has been touted as the appropriate vehicle for harnessing and polling the resources of millions of small holder farmer producers together to enjoy the benefit of large scale production. Although the activities of the National Programme for Food Security (NPFS} which is anchored by the Agricultural Development Programme (ADP) of states in Nigeria is a community-based participatory approach using contact farmers in the target areas, but that has not been able to reverse the upward trend in the price of food stuffs in our markets today. Cooperative according to Omotesho (2008) is one of the most effective vehicle for efficient mobilization of production resources and accelerated rural development. The importance arises from the fact that the small-scale individual capacity of the peasants production, can not cope with technological and capital demands of modernized agriculture. Even though the family farm may be considered efficient within the static framework of its motive of enterprise-self-sufficiency, the dynamic demands of modern times are such that such a framework has to be subjected to drastic structural changes. And this the peasant should be educated such that he knows that his interest is being fostered (Okolocha, 1993). The agricultural cooperatives have been there over the years to play this role of drastic structural change in agriculture towards achieving food security and also the socio-economic upliftment of the farmers. Uchendu (1998) noted that the original impetus for the organization of cooperatives in Nigeria came from agriculture, or more precisely, from the marketing of cash coops for export. Since then cooperative development has taken different forms and dimension. According to FMRD (2001), emphasis in cooperative development is now on multipurpose agricultural cooperative for food production and marketing. He noted that, ninety-six percent of cooperative societies in this country are designed basically to serve the needs of agriculture. Even the four percent which constitute non-agricultural cooperative societies have great relevance for agriculture and use agricultural


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product and bye-products. In summary, it does appear that the government has committed itself to the realization of food security in the country. However, as to the appropriateness and gains of these efforts, Oyido (1997) has noted that, virtually all the programmes and policies were beautiful and fulfilling but they could not achieve their set objectives because of over dependence on the 'Black Gold' which has become the major foreign exchange earner on which the economy depends. Indeed government efforts over the years could not guarantee adequate food and fibre for the citizenry, thus; the country has increased its dependence on food imports. For example wheat imports from the United states in 2007 alone was N2.2 billion. Government's efforts can at best be described as failure since not less than 65% of Nigerians are food insecure (Muhammed (2008). This precarious situation has necessitated the National Programme on Food Security (NPFS); a special programme introduced by the Federal Government of Nigeria on agricultural activities to increase food production in the country. Its activities are being carried out in the thirty-six states of the country, plus the Federal Capital Territory (FCT) Abuja. In Enugu State, NPFS activities are mainly on agricultural activities, namely crop farming, livestock, fishery and processing of agricultural products. The component structure of NPFS in Enugu State is mainly the State Agricultural Development Programme (ADP) staff on one hand and the beneficial community-based farmers. Statement of the Problem Food production in Nigeria is not keeping pace with population growth. This has resulted in the upward trend in the price of food stuff. Thus, creating a wide gap between the demand and supply of food. According to Ajayi (2008), the resulting effect of this imbalance between demand for and supply of food is malnutrition, poverty and deteriorating living conditions. Hence, the need to improve Nigeria agriculture. Over the years Nigeria has been having a teething problem feeding it teeming population all year round and this is partly because it has not been able to adopt an improved farming technique. According to Idachaba (1995), the Nigeria agriculture depends overwhelmingly on low productivity resources, land of progressively declining fertility, unskilled farm


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labour, the hoe matchet, low yielding seed variety and planting material. Low yielding agricultural and traditional farming practices, poor yield and high cost of food prices. High production cost are compounded by high processing and transportation cost on account of the primitive state of rural infrastructures especially rural roads, heavy post harvest losses both in storage and transportation reduce available marketable and marketed surpluses and result in high food prices, especially in the urban areas (ldachaba, 1995). Limited finance and poverty of the Nigeria farmers have also been identified as factors militating against food production. As noted by Obinyan (2000), their holdings are small, most often less than two hectares and are characterized by low productivity. This leads to low income and low capital investment. Consequently, one of the possible ways of redressing these constraints is to mobilize the desperate small holder farmer for economy of scale and agricultural cooperative is a veritable platform for this exercise. The challenge in this work is to study the agricultural development programme of Enugu State and find out how the agricultural cooperative have being performing under it, in terms of achieving national food security. The issues here are whether the agricultural services available to farmers under the NPFS are made available to them? Also, are agricultural cooperative societies really involved in the implementation of the series? Equally, what challenges face the executives of NPFS in Enugu State and what can be done to strengthen the programme? Objective of the Study The broad objective of this study is to appraise the performance of agricultural cooperatives societies in the National programme for Food Security with Enugu State as a case. Specifically the objectives are to: i. Ascertain the socio economic characteristics' of the farmers and

extension service providers involved in the programme. ii. Identify the agricultural services available to farmers in the

NPFS iii. Determine the extent agricultural services obtainable in the

NPFS are extended to Agricultural cooperative society in the state.


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iv. Ascertain the role of agricultural co-operative societies in making available agricultural services obtained in the NPFS to rural farmers.

v. Appraise the effect of using agricultural co-operative societies in accessing services of the NPFS.

vi. Examine the challenges of using agricultural co-operative societies in implementing the NPFS.

vii. Make deductions based on the above findings on ways of strengthening the use of agricultural cooperative societies in the NPFS in the Enugu state

Hypotheses for the study Three hypotheses were set for the study and they are: Ho1: The opinion of farmers and extension workers differ

significantly on the accessibility of services provided by NPFS. Ho2: The opinion of farmers and extension workers differ

significantly on the involvement of agricultural cooperative societies in the implementation of NPFS services.

Ho3: The opinion of both farmers and extension workers differ significantly on how effective agricultural cooperative societies are in making NPFS services available.

Literature Review Meaning of Food Security The importance of food to individuals and households cannot be overemphasized. According to Abudullahi (2002), food is not only a basic need; it also provides the physiological foundation upon which other considerations and human activities are structured. He noted that for us in Nigeria, food security is both a national objective and a challenge. Food security is not simply having sufficient and adequate quantities of our various staple foodstuffs but it also entails access to the entire citizenry to these food items at affordable prices. It further means that not only must we engage in mass food production, but also we need to ensure that most Nigeria have sufficient purchasing power to acquire food items that guarantee good feeding and nutrition. According to Adisa (1992), “food security can be defined simply as access by all people at all times to enough food for an active and healthy life.


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Accordingly, Eboh (1995) described it thus: food security simply refers to the ability of individuals and households (especially the rural and urban poor) to meet staple food needs all year round”. Continuing, Eboh (1995), states that the above description is essentially intra-generational food security as opposed to inter-generational food security, which refers to the ability of future generations to meet their food needs, on season and off season. Carter (1989) has this to say about food security; “food security may be defined as the ability of food-deficit regions or countries, or households within these countries, to meet target levels of consumption on a yearly basis”. They noted that what constitutes target consumption levels and the ability to maintain consumption is being referred to as two central issued of a country's food policy. All the above definitions have stressed that food security is of supreme importance in improving the nutritional status of many millions of people who suffer from persistent hunger and under-nutrition and many others who are at the risk of facing the same situation. They have also touched some important components of the concept of food security. For instance, Carter (1989) and Adisa (1992) talked of food sufficiency, food adequacy and food accessibility. World Bank (1986), Kennedy and Hadded, (1992), noted that food security is access by all peoples at all times to enough food for an active, healthy and productive life. Word Bank (2006) observed that there are four key components or concepts implicit in the above definitions of food security, viz; food availability, stability of food supply, food access and food utilization. These concepts will further be analysed. Akinyele (2009) supports the view of Word Bank (2006) by noting that food availability, stability of supplies and food access are related determinants of food security. Food Availability, Stability of Food Supplies, Food Access and Food Utilization According to Akinnyele (2009), at the household level, food security implies an adequate access to food over time. This is possible when there is adequate food availability to the household, and an adequate income capacity for the purpose of the available food. Stability of food implies that the food availability is not affected by any shocks or risks


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affecting food production at all times. Food access according to him has three components: o Physical access to food, o Economic access to food, and o Sustainable access to food. Availability of food, stability of food supplies and access are therefore three essential determinants of food security. Physical access implies food availability or food supply to the household, as there might be food available at the national level which however may not trickle down to the household level. According to Ekundayo (2008), Food availability means that enough food should be available to meet consumption needs. This relates to the need to produce enough food to the extent that it gets into the market for sale to consumers at affordable prices. Stability of food supplies is the ability to ensure that food consumption will not fall below the consumption requirements at all times including in difficult months, seasons or years. Food access concerns the ability of people to have economic access to the food needed for healthy and productive life. Economic access depends on income; households that can generate sufficient income to buy the food needed can have an entitlement to that food. Food utilization refers to the ability of the individual members of the household to utilize food consumed for growth, nutrition and health. Food security incorporates questions of production, storage and supply as well as access to supply Lawal and Oke, (2008). It entails not only food availability through domestic consumption, storage and/or trade, but also, and perhaps more importantly, food access through home production, purchase in the market, or food transfer (Abudullahi (2002). Challenges and Prospects of Food Security In Nigeria Ukeje (2008) has noted that although appreciable real output growth rates have been achieved in the agricultural sector in the last five years, a significant break-through in productivity to effectively guarantee domestic self-sufficiency is still constrained by a number of challenges. These challenges are the inadequacies in the supply and delivery of farm inputs; shortages of working capital; low rate of technology adoption; diseases and pests infestations; poor post-harvest processing and storage technology; environmental hazards; and land constraint.


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Inadequate supply of Farm Inputs The unavailability of major farm inputs critical for agricultural production (fertilisers, seeds, agro-chemicals, machineries, etc) at the appropriate time and at the right prices has remained a source of worry and frustration. Government efforts to develop efficient and effective input procurement and distribution systems that will ensure timely delivery of adequate quantity and quality of farm inputs to farmers have not been successful. Despite the large sums of money that had been spent on procurement and subsidisation of farm inputs, the problems of availability, accessibility, stability and sustainability still remain. The adoption of many promising improved packages of technology has been compromised by the unavailability of the complimentary farm inputs. The persistence of the problem has been attributed largely to the issue of subsidy and its administration, as evidenced in the procurement and distribution of fertiliser by the Government. This is an activity the private sector is believed to be better equipped technically to handle. The price regulating mechanism of a commodity whose supply could not match the demand at the stipulated prices create rent seeking and there are more unintended beneficiaries, who are the fertiliser contractors, haulers, etc. The result of all these actions is that many farmers do not have access to adequate supply of fertilisers with the consequence that Nigerian farmers have not been able to use fertilizers at the desired level to optimize their benefits to increase food production. Farm input play very critical role in the modernisation of small holder agriculture and this issue need to be properly addressed. Inadequate Working Capital Small scale farmers do not have adequate capital to expand their scale of operations and/ or take advantage of profitable packages of technology to boost productivity. The bulk of capital injection by this category of farmers comes from owner's equity and informal credit sources. The price and exchange rate reforms that accompanied the Structural Adjustment Programme of 1986 have increased the costs of production and significantly increased the working capital needs of agricultural activities.


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The long and cumbersome bureaucratic processes have prevented the flow of official credit through the government established credit schemes to the farmers. This problem is more pronounced for the female headed household who has nothing to offer as collateral. If objective of food security is to be attained, the issues of women empowerment should be taken seriously. There is also the need for effective support for the formation and growth of farmers cooperatives to assist in accessing credit, using the group for the mobilization and guarantee.

Inadequate Capital Expenditure The volume of capital allocation to agriculture and the quality spending over the years have been low and poor. The share of agriculture in total capital expenditure which averaged about 2.5 per cent need to be increased. The adequacy of capital and effective implementation of projects will ensure the effective provision of infrastructure and encourage research into crop production.

Low Rate of Technology Adoption The reduction and outright elimination of subsidies on all agricultural machinery like tractors, harvesters, harrowers and planters following deregulation has reduced the use of machines in agricultural activities. The postharvest technology available in Nigeria is poor and grossly inadequate to cope with vibrant, market-oriented food production efforts of Nigeria's small holders. Apart from the damage which the crops are exposed to in the field as a result of pests and disease attacks, a considerable proportion of the harvest is lost due to poor processing and storage technique. Crop losses have been estimated to be as high as 20 per cent of harvest in some cases.

Poor Extension Services The twin problem of inadequate extension services and the low morale of the available extension staff need to be addressed. More emphasis should be placed on having well trained extensionists and consideration should be given to female extension workers to address the problem of gender access to new innovations. Effort should be made as a matter of priority to ensure that the salaries and allowances of this important group of workers are paid regularly.


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Environmental Hazards The problems of drought/ desertification, as well as, soil erosion have remained very serious for Nigerian agriculture. These problems often manifest in the forms of soil degradation and deforestation. While some of these changes are caused by natural forces, they could also be caused by the direct result of over-grazing, over- cultivation, bush burning and deforestation associated with increased population and poor conservation practices. Attempts to solve the problems have been through nation-wide tree planting campaigns in the past and encouraging people to switch to the use of fuel efficient facilities, like stove and gas cookers. Unfortunately, the prices of stoves and gas cookers have risen sharply, thereby making them out of the reach of most rural dwellers. The increase in petroleum products prices has also resulted in farmers resorting to the bush for their fuel. Furthermore, the afforestation programme has been slowed down due to inadequate funding by government, increase in cost of planting materials, inadequate water and manpower to implement the afforestation programme. Also, proper conservation practices have not been learned by the rural dwellers. Post Harvest Losses The problem of inadequate storage facilities has compounded the problem of food security. It is estimated that about 15-20 per cent of the crops produced are lost before they can be consumed. This situation is made worse by the dearth of agro-processing industries in the country. It also has a discouraging effect on the farmers as the struggle to sell most of their crops immediately after harvest results in cut throat competition and lower prices. Low Level of Education The low level of education of small scale farmers, especially women who form the bulk of the agricultural labour force has remained a major constraint to the adoption of modem farming techniques and the ability to access other inputs necessary for increased productivity in the sector.


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Communal/Religious Crisis The frequent communal/religious crisis in some region of the country is a major constraint to food security in Nigeria. The crises occur either during planting, weeding or harvesting period and with the flight of farmers from the areas irrespective of the stage of farming, food security Is threatened as most, if not all the crops are lost. In spite of the above negative factors, Ukeje (2008) is optimistic that Nigeria can still overcome her food problems. The reasons for his optimism are centred on the following factors: Abundant land resources for the production of crops, livestock

and forestry products, A large domestic and international market for agricultural

commodities. The liberalization of trade will help farmers to get better prices

for their exports. However, private sector marketing agencies are needed to help ensure the quality of export commodities. The ban on imports of livestock products, maize, wheat and

vegetable oils should help domestic producers. The subsisting government policy to reserve 30% of the

elective post for women will go a long way in enhancing gender empowerment for the rural women.

However, the achievement of increased agricultural production and food security will require a comprehensive strategy to reduce some important constraints that has been earlier described. As much as the above opinion of Ukeje is valid, there is also the need to address the more important issue of political will. Omotesho (2008) has warned that ... "Achieving food security and reducing poverty is not an issue of right policies or programme rather that of a strong political will and absolute patriotism on the part of the people at the helm of affairs, who are to implement the policies and execute the programmes. The African Food Crises and the Global Response Africa is the poorest part of the world economy. The total GNP of the 45 countries in the sub-Saharan Africa in 1985 was one third of the


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GNP of the State of California and slightly less than the total GNP of Spain (a relatively poor European country) with a population of 40 million (World bank 1987). Sixteen of the 20 poorest nations in the world are African (Nur, 1989). Between 60 and 80 percent of the population of African countries are engaged in agriculture and agriculturally related occupations. In most parts of Africa, agriculture is typically subsistent. The traditional tools, seeds, livestock and methods are still in use. Consequently, the size of farm is typically small, since it is a factor of technology at his disposal. Agriculture depends largely on the natural vicissitudes of weather. Therefore any slight variation in the precarious balance between man and nature, from the optimal conditions of production spells doom to crops and livestock, and this threatens the very existence of rural households, the community and the nation. At independence in the 1960, most African countries have monocrop economies depending on only one major crop for export to earn foreign exchange. However, most of them were producing enough to feed themselves, and even some were known to be net exporters of food. Nigeria, at independence was largest exporter of palm oil and second largest exporter of groundnut. Congo was the largest exporter of bananas etc. Africa natural endowment in arable land notwithstanding it has turned to a food deficit continent. It has been shown that 19. African countries were importing 8 million tons of food annually and about 100 million Africans do not get enough food (Nur, 1989). Further to the above, Carter (1989) has asserted that most Sub-Saharan African countries are food insecure. Clearly, with a food import bill of $19 billion and agricultural export of $14 billion in 2003, the continent appears to have reversed from being a key exporter of agricultural commodities into being a net importer. It also has the highest percentage of undernourished people and has shown the least progress on reducing the prevalence of undernourishment in the last 30 years. Chronic food insecurity now affects some 28% of the population-that is, nearly 200 million people who are suffering from malnutrition. Acute food insecurity in 2003 is affecting 38 million people in Africa who are facing the outright risk of famine, with 24,000 dying from hunger daily. Famines are the most visible and extreme manifestation of acute food


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insecurity. Of the 39 countries worldwide that faced food emergencies at the beginning of 2003, 25 are found in Africa (Ugwunedo, 2008). Asuaobi (2000) also acknowledged the precarious nature of African food situation when it noted that. Over the ten year period of 1990-92 to 2000-02, AV Commission analysis of available information shows that, there was a slight decrease in the percentage of the population estimated to be undernourished (29 to 27 percent); an increase in the number of persons "hungry" from 176 to 210 million due to population increasing more rapidly than the percentages of hunger reduction; quite striking differences in reducing hunger across the sub-regions with the North already at low rates and the Southern sub-region having made the most significant progress; country and sub-regional performance in hunger-reduction has been strongly affected by conflict situations, with conflict causing substantially more disruption than natural disasters; and, Sixty-three percent of Africa's people live in countries where the percentage of the population suffering from under-nutrition has declined from 36 to 29 percent. The culmination of the above is that African continent is now the continent receiving most food aid, with some 30 million people requiring emergency food aid in one year. Sixty per cent of the World Food Programme (WFP)'s work now takes place in Africa. Aid officials have estimated that their budget for Africa is $1.4 billion for feeding those who will face starvation in the coming months if they do not receive considerable food assistance. It is of great concern that only $700 million had been raised in Africa. Aid officials have estimated that their budget for Africa is $1.4 billion for feeding those who will face starvation in the coming months if they do not receive considerable food assistance. It is of great concern that only $700 million had been raised by the end of 2002 (Ugwunedo 2008). The hunger crisis spans the entire continent and has grown particularly acute in the wake of two major, simultaneous regional emergencies in the past year. Southern Africa is facing the most severe crisis in which, according to Food and Agricultural Organisation (FAO) latest figures, 16.7 million people are in need of emergency assistance to survive until the next harvest in April 2003. This has been a crisis that has emerged in slow motion, the extent of which has become apparent only gradually although the first warning bells were rung as early as mid-2000. During the course of


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2002, Malawi, Zimbabwe, Zambia and Lesotho each declared a national disaster and appealed to the international community for help. The most dangerous situation is developing in Zimbabwe, a country which until recently was a surplus food producer. Developments in Swaziland and Mozambique are also of great concern. Serious food shortages are also looming in several countries in the Horn of Africa where at least 17.5 million are without sufficient food. The needs are most urgent in Eritrea and in Ethiopia where it is feared that this crisis could be as bad as the 1984 famine. Millions more also face starvation in the long-running disasters in war-afflicted Sudan and Angola, as well as the Great Lakes region and the Sahel of Western Africa (FAO, 2002). The continuing response from the international community to the food crisis has not stabilized food security and food shortages are likely to increase. The current emergency conditions are worsening. This crisis is not going to disappear even with improved climatic conditions. These countries will need ongoing assistance for many years to come in agriculture and health. Agricultural Cooperatives: Their Nature And Role In Food Security Cooperatives are economic enterprises founded by and belong entirely to the members. These enterprises are created in order to render the best possible service at the lowest possible cost to their members. Cooperative stands over two legs, in order to be solid and sustained (Akinwumi, 1989): o The equal ownership of members of their cooperative.

Members pay with their money, be it by cash payments or by loans undertaken by the cooperative, to create the fixed assets of the cooperative. Therefore, the cooperative belongs to them entirely, equally, and members own equal shares. These are the Property Shares. In most cooperatives in Africa, and in other parts of the world, this notion doesn't exists, and the cooperatives belong to members on an indivisible basis - namely, belonging to everyone commonly and belonging practically to no one. In my view this is one of the major


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reasons to the declining of many cooperatives in so many places.

o The cooperative is rendering to members the best possible service at the lowest possible cost. This means that cooperatives are working not to generate profits or surplus to enable the head of the cooperative, at the AGM, to show to members that he was successful in creating this wealth. This wealth came from members pockets when applying a policy of very expensive price of participation on members. Members have created their cooperatives when they believed it will rendered them a service, or enabling to purchase a commodity in so low price, they couldn't afford when alone. There can be many variations to the agricultural cooperative model each playing a critical function in fulfilling its members' needs. Supply cooperatives, for example, make various products available to its members, while marketing cooperatives act as a marketing body for farmers to sell their products. Some cooperatives combine both these activities while others provide additional services such as custom harvesting of crops. The cooperative structure and its function are limited only by the needs of its members and the commonality of their goals.

The FAO (1997) was emphatic that cooperatives could make the needed impact in food security efforts through mobilizing farmers, women and finance and in agricultural marketing. FAO however warns that cooperatives may not be able to play a significant role until they have fully adjusted to market conditions. Many agricultural cooperatives are now in a period of transition from government-controlled markets, often allowing cooperatives to have a monopoly for certain regulated crops, to open market conditions. Not having been exposed to competition before, the cooperatives are now restructuring themselves and adjusting to the new business environment. Some cooperatives will not be able to adapt and will therefore be eliminated by the competition. There are cases where cooperatives have lost the better part of their market share. On the other hand, there are many cooperative organizations that have managed to revitalize themselves by providing better services, improving their business performance and implementing organizational


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changes and mergers. This ongoing transformation will result in fewer but more efficient cooperatives, and it is not unlikely that new structures will emerge that are better adapted to market oriented economies. However, in order to emerge successfully as competitive business organizations on the new market, cooperatives will need an enabling environment. Such an environment will have to comprise a conducive cooperative policy and law as well as a framework to regulate the open market. This would not only put cooperatives on an equal footing with other market agents, but it would also enable them to contribute more to sustainable agricultural production and food security. Furthermore, if governments and cooperatives are equally willing to enter into a partnership in which the cooperatives are given a true participatory role, the inherent qualities of cooperatives, member-owned and member-governed organizations can be brought into full play for the cause of food security. Methodology The study adopted a field survey approach and the methodology used followed the under listed sub headings. Area of Study The area of study is Aninri Local Government Area (LGA); one of the 17 LGA’s in Enugu State. It has boundaries as thus: by the North; Awgu LGA; by the South, Ivo LGA of Ebonyi State; by the West Nkanu LGA; and by the East Oji River. Aninri, has a population of 133, 723 people (NPC, 2006). It has a flat, swampy and very rich soil with its inhabitants mainly smallholder farmers.

Population of the study The population of the study are59 members of agricultural cooperative societies operating National programme on food security and 19 ADP staff that took part in extension services to the cooperative societies.


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Sampling size and sample procedure Since the population of the ADP staff is relatively small, we use the whole population as the sample size which is 19, also yaro yameni was applied to get the sample size of the cooperative members to 51.

Data collection: a structure questionnaire targeted at the members of agricultural cooperative and ADP extension workers were used for data collection. Data Analysis: The study made use of both descriptive and inferential statistics in data analysis. Statistical tools used include simple and multiple response percentages (%), Likert scale measure, correlation, and t-test for analyzing the data from the respondents. Test for Hypotheses The three hypothesis; Ho1, Ho2 and Ho3, set for the study were analyzed through correlation analysis and t-test statistics. Stated below are explanation and result of the tests of the hypotheses. Hypothesis 1 Data for testing the above hypothesis is deduced from table 3, which dwelt on responses of rural farmers as well as extension service providers on the accessibility of NPFS services. H01: The opinion of farmers and extension workers differ significantly on the accessibility of services provided by NPFS. HA1: The opinion of farmers and extension workers do not differ significantly on the accessibility of services provided by NPFS. Accessibility paired sample statistics Mean N Std.

Deviation Std. Error Mean

Pair 1 farmer & ext worker

.59256

.68861 18 18

.339750

.325492 .080080 .076719


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Paired samples correlations N Correlation Sig Pair 1 farmer & ext worker

18 -.162 .520

Paired differences Pair farmer and ext worker Mean St.

Deviation Std. Error mean

Pair 1 farmer and ext worker

0.096056 0.507202 0.119549

Paired differences 95% confidence interval

of the differences

Lower Upper t df Sig (2-tailed)

Paired 1 farmer and ext workers

0.348281 0.156170 0.803 17 0.433

Sources: SPSS (version 17) Decision: Since the table value is less than the calculated value (P<0.05) we reject the null hypothesis (Ho) and accept the alternative hypothesis (HA1). Therefore the opinion of the farmers and the extension workers does not differ significantly on the accessibility of the NPFS services to farmer cooperative. Hypothesis 2 Data used for this particular hypothesis was generated from table 4 which shows responses on how involved the agricultural cooperative societies are in the implementation of NPFS services. H02: The opinion of farmers and the extension workers differ

significantly on the involvement of farmers cooperative society in the implementation of NPFS services.


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HA2: The opinion of farmers and the extension workers do not differ significantly on the involvement of agricultural cooperative society in the implementation of NPFS services.

Cooperative involvement Paired sample test

Mean N Std. Deviation

Std. Error Mean

Pair 1 farmer & ext worker

0.15279 0.23800

14 14

0.118567 0.172199

0.031688 0.046022

Paired samples correlations N Correlation Sig Pair 1 farmer & ext worker 14 0.257 0.375



Pair 1 farmer and worker 0.085214 0.232805 0.06220 Paired

differences

95% confidence interval of the differences

Lower Upper T df Sig (2-tailed)

Paired 1 farmer-ext workers

0.219632 0.049203 1.370 13 0.194

Sources: SPSS (version 17) Decision: Since the table value is less than the calculated value (P<0.05) we reject the null hypothesis (Ho2) and accept the alternative hypothesis (HA2). Therefore, the opinion of the farmers and the extension workers do not differ significantly on the involvement of the


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agricultural cooperative society in the implementation of NPFS services. Hypothesis 3 The data that was used to test this hypothesis was acquired from table 5 which shows the responses on how effective in using agricultural cooperative society for accessing agricultural services of NPFS. H03: The opinion of farmers and extension workers differ significantly on how effective agricultural cooperative societies are in making NPFS services available. HA3: The opinion of both farmers and extension workers do not

differ significantly on how effective agricultural cooperative societies are in making NPFS services available.

Effective of farmer cooperative Paired samples Test Mean N Std. Deviation Std. Error

Mean Pair 1 farmer & ext worker

4.7500 12.7500

4 4

4.64579 15.26161

2.32289 7.63080

Paired samples correlations N Correlation Sig Pair 1 farmer & ext worker

4 0.953 0.047



Pair 1 farmer and worker 8.00 10.92398 5.46199


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Paired differences 95% confidence interval

of the differences

Lower Upper t df Sig (2-tailed) Paired 1 farmer and ext workers

25.38249 9.38249 1.465 3 0.239

Sources: SPSS (version 17) Decision: Since the table value is less than the calculated value (P<0.05) we reject the null hypothesis (Ho3) and accept the alternative hypothesis (HA3). Therefore, the opinion of the farmers and the extension workers do not differ significantly on how effective agricultural cooperative societies are in making NPFS services available. Result and Discussions Socio-economic characteristics of respondents The socioeconomic characteristics of the farmers and the ADP extension workers are presented in table 1. The result shows that majority of the farmers (94.1%) and extension workers (94.7%) are married. Most (64.7%) of the farmers, belonged to the age range of 31-40 years, whereas majority (63.2%) were in the age range of 41-50 years. The result also indicate that there were more (60.8%) female farmers in the project than males, while the result was opposite for ADP extension farmers, where fourteen (73.7%) are males. Their educational background showed that most (72.5%) has first school leaving certificate (FSLC), while sixteen (84.2%) of the extension workers has HND/B.Sc. as the most and highest educational background. The table also showed that for the farmers, that majority (56.8%) has 11-15 years farming experience, whereas for the ADP extension workers, most (42.1%) has 16-20 years field experience. Services rendered through NPFS to rural farmers Table 2 is a multiple responses of services rendered through the NPFS as identified by the providers (Extension Workers) and end-users


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cooperative farmers). The prominent services include: sensitization on NPFS; HIV/AIDS prevention; training on nutrition and health; disbursement of loan; livestock production and animal health; diversification of crop production; agro-processing; and linking of farmers to better markets. Over 60% of the farmers and ADP extension workers affirmed the provision of the aforementioned NPFS services. Accessibility of NPFS services to farmers Table 3 displays a four point linkert-scale measure; very accessible (4); accessible (3); somewhat accessible (2); and not accessible (1); of how accessible NPFS services are available to the farmers. The result shows that over 50% of the respondents (farmers and extension workers) indicated that services such as sensitizations of NPFS services, formation of groups training of groups, training on nutrition/health mobilization of savings and disbursement of loans; provision of market information and linking farmers to better markets; agro-processing; HIV/AIDS prevention; enhancement of crop production; diversification of crop production; seed multiplication; and; livestock production and animal health were accessible to the farmers. To further assert this findings, HO1 as indicated earlier in the data analysis, sought to find out whether a significant different exist in the opinion of the extension providers and end-users (farmers)) on the accessibility of NPFS services. With the values of t-cal (0.803) and confidence level, we conclude that their opinion does not differ. This therefore strengthens the fact that NPFS services were accessible to farmers. Involvement of farmers cooperative society in implementation of NPFS services Table 4 is a four-point linkert-scale measure: very involved (4); involved (3); somewhat involved (2); not involved (1); of how involved the farmers cooperative societies are in the implementation of NPFS services. The result shows that over 50% of both the farmer cooperative members and their extension agents agreed that farmers cooperative societies were involved in the implementation of such services as: sensitization on NPFS services; formation of groups; training of cooperative groups; HIV/AIDS preventive; training on nutrition and health; mobilization of savings; disbursement of loans; provision of


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market information; linkage of farmers to better markets, enhancement of crop production; diversification of crop production; deed multiplication; livestock production and animal health; and; agro processing. To further assert this findings, HO2 as indicated earlier in the data analysis sought to find out whether the opinion of the extension service providers (EA’s) differ significantly from that of the end users (farmers) on how involved the cooperative societies are in the implementation of NPFS services. The result showed a t-cal (1.370) and t-tab (0.194), at 0.05 confidence level. This implies that their opinion does not differ and hence strengthens the fact that the agricultural cooperative societies were involved in the implementation of NPFS services. Effectiveness of using agricultural cooperative society in accessing agricultural services under the NPFS programme Table 5 reveals the opinion of the respondents on the effectiveness of using agricultural cooperative societies in accessing agricultural services under the NPFS. Based on the result majority (52.8%) of the farmers and over half (53%) of the extension workers indicated they were very effective. In furtherance of asserting the result, HO3 divert on determining whether the opinion of the extension workers differ significantly from that of their subjects (farmers). The result as earlier indicated in the data analysis, with a t-cal (1.465) and t-tab (0.239) at 0.05 confidence level, indicated otherwise. The result therefore justifies the potency of using agricultural cooperative societies in accessing agricultural services to farmers under the NPFS. Challenges of implementing the NPFS programme Table 6 reveals the multiple responses of the extension service providers as well as cooperative farmer members on challenges they encounter in implementing the NPFS programme. Sixteen challenges were listed out of which nine (9) were mostly noted. They include insufficient fund, recognized by 78% (farmers) and 58% (extension workers); mismanagement of fund (58%), notion of loan as national cake (71%), and dishonesty among farmers (63%) recognized by extension workers as major challenges. The others are the high cost of input noted by 28(54%) of the farmers; late disbursement of loan


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identified by 61% of the farmers as well as 58% of their extension service providers. The rest are group disintegration recognized by 67% of the farmers and 74% of extension workers as constraints; and weak enterprise management noted by 57% of the farmers and 58% of the extension service providers. Conclusions and Recommendations National Programme on Food Security was introduced to boost food production to feed the teeming population adequately and on a sustained bases. The programme guides rural farmers to form groups as cooperative societies to enable them pull their resources and effectively access NPFS service, with less difficulty. The programme aims at employment generation, attraction of government attention to rural farmers, infrastructure in rural areas, reduction in rural-urban migration, while making the nation to be food secured. The findings of the study reveal that: i. The personal characteristics of both the rural farmers and NPFS

extension providers were ideal to facilitate their active participation in the programme.

ii. Prominent services rendered to rural farmers through the NPFS programme include; community sensitization and mobilization for the programme; formation and training of cooperative groups; HIV/AIDS prevention and training on health/nutrition; diversification of crop production; market information and linking of farmers to better markets; value addition through agro-processing.

iii. Most of the aforementioned NPFS services were found accessible to the rural farmers.

iv. There was clear proving of the involvement of the agricultural cooperative societies in the implementation of NPFS services.

v. There was also a proven effectiveness of using the agricultural cooperative societies in facilitating the accessibility of agricultural services to rural farmers under the NPFS programme.

vi. That, despite the aforementioned successes, that challenges notable among which are insufficient fund for the farmers, wrong notion of loans by farmers as national cake, dishonesty among


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farmers, late disbursement of loan, weak enterprise management and group disintegration exists.

The study finally makes the following recommendations: i) There should be adequate and prompt disbursement of approval

fund. ii) There should be sufficient re-orientation of the farmers to

mitigate their wrong notion on loan as national cake. iii) The programme should strengthen capacity on group leadership,

cohesion and ethics to address issue of group disintegration and dishonesty among members.

iv) There should also be emphases on facilitating the farmers management skills to reduce business failure.

v) Efforts should be made to ensure that the groups are not just hurriedly formed as cooperatives. They should be rather properly formed, registered and supervised by the government cooperative authorities. This if done will enthrone sustainability.

vi) The extension service providers must be motivated and encouraged to sustain proper monitoring and supervision of farmers and their enterprise to for stale diversion of loan and failure.

References Abdullahi, H. (2002), “Putting Globalization to work for the poor:

sustainable food security for all by 2020.” Proceedings of an International Conference Organized by IFPRI, washing ton, D.C.

Ajayi, M. (2008). “Implications of Macro-Economic policy for National

Food Security in Nigeria”. Paper Presented at the 2008 Annual Conference of the Development Finance Department of Central Bank of Nigeria (CBN), held at Orchid Hotel, Asaba, Delta State, from 15th – 18th October.

Akinwumi, J.A. (1989). “Cooperatives: The Answer to Nigeria’s

Producer Consumer Dilemma” Faculty series 2. Faculty of Agriculture, University of Nigeria Nsukka.


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Akinyele E. (2009). Nigeria Food consumption and Nutrition Survey,

International Institute for Tropical Agriculture (IITA) Ibadan. Asuobi, C. (2008) “Household Food security as assessed by Dietary

intake and anthropometry of presho children in cassava producing areas of Nigeria”. In Nwosu et al (ed) Agricultural transformation in Nigeria Novelty Industrial Enterprise Ltd, Owerri.

Carter, J. (1989), “The challenges of Agricultural Production and Food

security In Africa” In Proceeding of the International conference on Food security in Africa, organized by Africa Leadership forum, held at Ota Farm, Nigeria. July 27th – 30th.

Eboh E.C. (2005) Development: The Theory and Implication for rural

areas. Enugu Auto century publishing company. Ekundayo, Femi (2008). “The Role of Financial Institutions In

Addressing National Food Security” Paper presented at the 2008 Annual Conference of the Central Bank of Nigeria (CBN), held at Orchid Hotel, Asaba, Delta State, from 15th – 18th October.

FAO (2002): “Agriculture Towards 2015/30”. Technical Interview

Reports, Food and Agricultural Organization (FAO) Rome. FAO (1997). “Comprehensive Africa Agricultural Development

Programme”. Food and Agricultural Organization (FAO) Corporate Document Repository. Accessed of www.pap.org.

FMARD (2001). Reports on Special Programme on Food Security: Project UTF/NIR/047/MR. Federal Ministry of Agriculture and Rural Development (FMARD).

Idachaba, F.S. (1995) Agriculture in Nigeria: Identifying opportunities

for increased commercidization and ……………. USAID/Nigeria.


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Kenedy, J. & Hadded, L. (1992). “Agricultural Research and Poverty

Reduction”, Food, Agriculture and the Environment Discuss paper, No. 34, IFFRI Washington DC.

Lawal, R.M. and Oke, J.O. (2008). “Repositioning the Strategic Food

Reserve in Addressing the Global Food Crises and National Development”. Paper presented at the 2008 Annual Conference of the Development Finance Department of Central Bank of Nigeria (CBN), held at Orchid Hotel, Asaba, Delta State, from 15th – 8th, October.

Muhammed, L.A. (2008), “An Analysis of Food Insecurity situation in

Rural Households in Kwara state, Nigeria”. An unpublished Ph.D. Thesis, Department of Agricultural Economics and Farm Management, University of Ilorin, Kwara state, Nigeria.

Nur, I.M. (1989). “The Food crises In Africa: In The challenge of

Agricultural Production and food security in Africa”. Proceeding of the International conference on Food security in Africa.

Obiyan, E.(2000). “The private sector and Agricultural Transformation.

UAC seeds zone” in Nwosu et al (ed), Agricultural transformation in Nigeria. Owerri Novelty Industrial Enterprises Ltd.

Okolocha, C.F. (1993). “Rural Employment Mechanization and Peasant

production: An Analysis of Ekpoma Rice Industry & Perspective on Food Security In Nigeria”. In Nigerian Rural sociological Association.

Omotesho, Olubunmi Abayomi (2008). “Global Food Crises and

National Food Security: Strategic obtions for Nigeria”. Paper presented at the 2008 Annual conference of the Development Finance Department of Central Bank of Nigeria (CBN), held at Orchid Hotel, Asaba, Delta State. 15th-8th, October.


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Oyido, I. (1997) “Poverty Alleviation Agenda for Food security in

Integrated Production in Nigeria: Strategies and Mechanisms for Food Security”. In Federal Ministry of Agriculture & Natural Resources (FANR) Bulletin. No. 114. Lagos.

Uchendu (1998); Fundamentals of Cooperation business enterprise,

published by Rejoint Communication Ltd, Uwani Enugu. Ukeje, M.F. (2008) Agricultural Development Issues, It’s sustainability

and food security in Nigeria. Paper presented at the 2008 Annual conference of the Development Finance Department of Central Bank of Nigeria (CBN), held at Orchid Hotel, Asaba, Delta State. 15th-8th, October.

Ugwunedo C. (2008). “Food crises: The African challenge” Called from

Http://www.nigeria.com/dcforum/deforumid/795.Html Accessed on Sept. 7th 2008.

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security in Developing countries, Washington D.C.


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Emerging Issues in Business Education: A Panacea for Effective Utilization and Application of ICTS as a

Tool in Business Education in Nigerian Universities

Ezeani Nneka Salome (Ph.D) E-mail: [email protected] (08035726244)

Department of Educational Foundation and Management, Ekiti State University, Ado-Ekiti, Nigerian

Ishaq Ahmed Mohammed E-mail: [email protected]

Department: Business Education (08069692552) Federal College of Education (Technical), Gombe

Abstract The business education programme has experienced unprecedented technological changes in the recent years. The new trend in ICTs place greater responsibilities on business educators. If business educators must be the master of the skills and knowledge of ICTs he teaches, he must be retrained regularly as to adapt to the technological changes in education industries. This study seeks to find the extent of utilization and application of ICTs tools in teaching and learning of business education courses in Nigerian universities. A survey design was employed for the study. The population for the study consists of 100 business educators in the universities located in South-East (Abia, Anambra, Enugu, Ebonyi and Imo States). There was no sample; hence the population was very few. A questionnaire containing 5-point Likert type of scale was used. The data generated was analyzed using frequency count and z-test statistics (for research questions and hypothesis respectively), the study reveals that there was no significant difference in the mean scores of male and female business educators regarding the strategies, ICT tools/facilities and problems hindering the teaching and learning of business education courses in the Nigerian Universities, so gender is not a barrier at all. It recommends that the Nigerian government should provide enough capital for the procurement and maintenance of ICT tools. Keywords: Business education, ICT tools, Business Educators, Training and Development Tool, Utilization and Application.


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Introduction Business Education is one of the aspects of vocational education that focuses on skills and knowledge acquisition for the recipients. The goal of business education according to Anao, (1986) is the production of manpower that possesses the requisite knowledge, skill and attitude for harnessing other resources and brings them into co-operative relationships yielding goods and services demanded by society for satisfaction of other wants and needs. However, business education been skill acquiring discipline must inculcate in the recipients to have knowledge and skill of ICT. The premise that ICT is essential for bringing changes to classroom teaching and learning in educational systems around the world are under increasing pressure to the society and the world at large. The acronym for ICT means Information and Communication Technologies. Mandara (2012) sees ICT as those technologies that are used for accessing, promoting globalization and knowledge, data and skills from which education can benefit substantially. According to Law, Pelgurum and Plomp (2008), these data and skills include the ability to become lifelong learners within a context of collaborative inquiry and the ability and learn from experts and peers in a connected global community. As the access to information continues to grow exponentially, business education remains more channels for the transmission of prescribed set of information from teachers to students over a fixed period of time. (Odiari, 1987). Buttressing the above view, Kwacha (2007) affirms that the use of educational systems are increasingly obliged to use ICT hence, it provides information and knowledge for learners as well as exercising abilities and skills needed in the labour market. The labour market demands a work force that can use technology as a means to increase productivity and creativity. This includes networks such as fixed wireless and satellite, broadcasting networks, telecommunications, and applications like the internet, intranet, database management systems and multi-media tools. To Alibi (2004), these skills include identifying reliable sources of information, effectively accessing these sources of information, synthesizing and communicating that information to colleagues and associates. Information is very vital for


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under-graduate learning, teaching, research and publishing, and as well as in carrying out class assignments and home work. Hawkins (1998) sees information as essential for effective means for processing and transmitting teaching-learning. The evolution of ICT in the universities environment brought a lot of changes in the teaching-learning situations. This new changes encourages distance learning and also achieve a closer collaboration between different universities and also pave way for a new pedagogical approach where there is unparalleled ability to spread knowledge and disseminate information (Nwosu, and Ogobomo 2012). The authors further attest that;

The pace of change brought about by new technologies has had a significant effect on the way people live, work and play worldwide. New and emerging technologies challenges traditional process of information use, dissemination and the ways information is managed. Easy worldwide communication provides instant access to a vast array of data, challenge assimilation and assessment skills, rapid communication plus increased access to ICT at home, work and in education establishment.

ICTs in all developed countries have the potential for increasing access to and improving the relevance and quality of education by facilitating the acquisition and absorption of knowledge, to enhance educational systems, improve policy formulation and execution and widen opportunities for business. With ICT, according to Sardka and Sader (30023), students can have access to lessons presented with soft wares, simulate situations, build their own knowledge, improve their knowledge base, work with peers and experts across the globe, explore authentic issues, select the mode by prefer and work at their own pace. However, when ICT are appropriately utilized, this will assist business education students in accessing information, strengthen the need for increasing digital learning, and raise business education quality and standard, by assisting the students in teaching and learning process connected to real life situation.


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Though ICT has been the order of the day in educational environment, yet, there still hunches in utilizing ICT in all facets of human endeavors. In view of Mandara (2012), the utilization of ICT in facilitating the knowledge acquisition and dissemination within and between variables had been such that human input is reduced to the barest minimum with supersonic speed. Therefore, utilization of teaching and learning of business education as aspect of vocational education involves the use of technology, teachers’ competences, technical support, huge amount of capital for the purchase of equipment/facilities. From the preliminary studies conducted in the Nigerian universities offering business education programme, it seems that the graduates of this programme were not adequately exposed for ICT skills expected in teaching/learning environment. Thereby these students sought for an extra ICT training in and outside the school or upon their graduation. These result in patronizing and enhancing the business centers/cyber cafes. The poor performance of business education students in the field of ICT could be as a result of teachers’ non utilization and application of appropriate information and communication technologies tools or unavailability of ICT tools in the inculcation of business education courses. It is based on the above views that the study intend to examine the extent of utilization and application of ICT tools in delivering business education courses in the Nigerian universities. The main objective of this study is to examine the extent of utilization and application of ICT in teachings of business education courses in Nigerian universities. Specifically, the study sought to:

1. Identify the strategies for effective utilization and application of ICTs in the teaching and learning of business education courses in the Nigerian universities.

2. Find out the extent of utilization of ICT tool in the teaching and learning of business education courses in the Nigerian universities.

3. Determine the problem that hinders the effective utilization and application of ICT in the teaching of business education courses in the Nigerian universities.


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The study sought to answer the following questions: 1. What are the strategies for effective utilization and application

of ICTs in the teaching and learning of business education courses in the Nigerian universities?

2. To what extent are ICT tools/facilities utilized in the teaching and learning of business education courses in the universities of Nigerian.

3. What are the problem that hinders the effective utilization and application of ICT in the teaching and learning of business education courses in the Nigerian universities?

Hypotheses

The following hypotheses were formulated for the study: HO1: There was no significant difference between the mean scores of

male and female business education teachers on the strategies for effective utilization and application for ICTs in the teaching and learning of business education courses in the Nigerian universities.

HO2: Female and male business education teachers do not differ in their mean scores on the extent of utilization of ICT tools in the teaching and learning of business education courses in the Nigerian universities.

HO3: The mean scores of male and female business education teachers do not differ significantly on the problem that hinders the effective utilization and application of ICTs in the teaching and learning of business education courses in the Nigerian universities.

Review of Literature Training and Development Year after year, students are admitted into the universities or other tertiary institutions. On this ground, it is expected that the students are acquainted with the aim of education as specified as specified in the National Policy, as well as fulfilling the goal for tertiary institutions in Nigerian. According to FGN (2004), technical and vocational education referred to those aspects of the educational process that involves the general education, the study of technologies and related sciences and


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acquisition of practical skills, attitude, promote national and international understanding and interaction, exposure to relevant future working environment respectively. When all these objectives were achieved, one may agree that there are possible ways of solving problems that are obvious in the economy of Nigerian and in the world today. Nzotta, (2002) defines training as a mixture of teaching and practices carried out in other to attain a desired standard of behaviour efficiency and effectiveness. On the other hand, Egungu (2001) sees training as a way of building capacity into people and adding of values in area of knowledge, skills and attitude. From the above definitions, training means the acquisition of skills, attitude, instruction and practical in order to ensure a remarkable influence on behaviour. Also, it means solving educational objectives through the act of doing, attempting, reflecting on experience and familiarizing in the act for the purpose of development and required skills. Development according to Koonz and Weihrich (1990), refers to a system integration and planned approach to improve the effectiveness of an individual. To Nzotta (2002), development includes the progress made by a person which may involve intellectual or conceptual growth along with practical performance. This shows that development has to be well organized, planned and articulated idea for change, upgrading, application and expression. Development enhances the trainee or learners in achieving optimum potentials and capabilities in business education before the end of the programme, and utilized to actual situations at either local or foreign scenes. Business education deals with empowerment necessary to meet business challenges in a dynamic business world or society. It offers recipients the ability to cope with emerging changes in education, and in business where the person is expected to manifest all the skills acquired while in training. Therefore, business education is planned for training and developing recipients to expose them in the field of business, and as a


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professional, consequently, expanding the way for imparting competences for economic development of the society. Empirical studies In the study of Aigbepue (2011) on the topic titled, Information Technology: a panacea for poverty alleviation, the study sought to juxtapose the revitalization of vocational and technical education which provides theoretical and practical skills necessary for self-reliance with the aid of information technology. The study revealed that vocational education was viewed as an indisputable means of reducing poverty in the society by imparting the relevant vocational and ICT skills, knowledge and abilities required for work. The study recommends that there should be provision of dedicated and special intervention funding as well as improved awareness campaign of the acquisition and development of entrepreneurial skills. In another study carried out by Nwosu and Ogbomo (2012) on ICT Education: a catalyst for effective use of information, aimed at ascertaining how ICT could be a catalyst to effective use of information by under graduates. The study employed a descriptive survey method using the expost-facto design. The population for this study consists of 212 final year undergraduates of the department of library and information science, Delta State University, Abraka. Questionnaire was used for data collection. Sample size of 84 students was drawn from the population out of which 60 copies of the questionnaire retrieved. The data collected were analyzed using descriptive statistics frequency and percentages. The study revealed that there is no single policy set aside for planning policies and programmes to introduce ICT in the use of information to undergraduates. Also, problems associated with the ICT for educational activities should be addressed for proper implementation of ICTs in education. The study therefore, recommended that issues and challenges of ICTs in education should be given urgent/adequate attention. Still, in a study carried out by Mandara (2012) titled utilization of information and communication technologies (ICT) in the teaching of office education for quality assurance of office education graduates in


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Adamawa State tertiary institutions, sought to find out the extent of application of ICTs in teaching and learning of office education courses in order to ensure the quality of office education graduates in Adamawa State of Nigeria. A survey design was adopted for the study. The area of the study was tertiary institutions in Adamawa. The population of the study 15 respondents, comprising teachers of business education programme. The entire population was studied. A structured questionnaire consisting of 20 items was used. The instrument was validated by three experts and 5-point Likert type of scale was adopted. The study found that the teachers of business education office option are not making adequate and effectively use of ICT tools and facilities in learning of office education due to its unavailability. The study recommended that teachers should be encouraged to make use of ICT tools. It was observed that out of the these three studies, two utilized questionnaire as a means of data collection and a 5-point Likert type of scale was adopted by Mandara. The two studies also analyzed the data generated using frequency count, percentages, mean and standard deviation, respectively. In the present study, the entire population were studied, 5-point Likert point of scale were also employed. The questionnaire were used for data collection generated by the study were analyzed using the frequency count, mean scores and z-test. So, the three studies and the present studies are similar but differ in the use of z-test. Methodology A survey research design was employed for the study. The study covers 100 business educators in the Nigerian universities that offers business education programme in the South-East (Abia, Anambra, Enugu, Ebonyi and Imo states). Because the population was very few and manageable, all were studies and there was no sample. The major instrument for the study was a questionnaire constructed by the researchers. The instrument to answer research question was structured using of 5-point Likert type of scale. Thus, question 2 using 5-point scale of: 5 very highly utilized (VHU), 4 highly utilized (HU), 3 utilized (U), 2 moderately utilized (MU) and 1 not utilized (NU). While questions 1 and


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3 utilized 5-points likerts response scale: 5 strongly agree, 4 agree (A), 3 neutral, 2 disagree (DA) and 1 strongly Disagree (SD). Any item with a mean value of 3.00 and above falls under agree and utilized, while any item that falls below the mean value of 3.00 full under disagree and not utilized. Data generated were analyzed using frequency count and mean scores. While Z-test was used for the 3 hypotheses. Discussion and Results Results Research Question 1 Table 1: Frequency and Mean Scores of Business Education Teachers on the Strategies For Effective Utilization and Application of ICTs in Teaching/Learning of Business Education Courses in Nigeria Universities

FREQUENCY S/N Strategies for

Effective ICTs

SA (5)

A (4)

N (3)

DA (2)

SD (1)

% TOTAL MEAN

1. Teachers have negative attitude towards the adoption and utilization of ICT

50 50

30 30

10 10

5 5

5 5

%

100 4.15

2. Government funding and procurement for ICT tools

40 40

45 45

15 15

- -

- -

%

100 4.25

3. Proper supervision of teachers on ICT

30 30

40 40

15 15

10 10

5 5

%

100 3.80

4. Provision of qualified mechanical personnel for proper maintenance of ICT tools

20 20

60 60

20 20

- -

- -

%

100 4.00

5. Exposing the general public on the benefits of ICT

10 10

30 30

40 40

10 10

10 10

%

100 3.20

6. Motivation of business teachers

20 20

10 10

30 30

20 20

20 20

%

100 2.90


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7. Training of business teachers on periodic basis

50 50

30 30

- -

10 10

10 10

%

100 4.00

8. Provision of ICT tools, facilities and infrastructure

40 40

50 50

10 10

5 5

5 5

%

100 4.45

9. Adequate power supply

60 60

20 20

5 5

12 12

3 3

%

100 4.22

10. Government intervention into ICT school curriculum

20 20

60 60

- -

- -

20 20

%

100 3.60

11. Teachers enhanced salaries

20 20

60 60

- -

- -

20 20

%

100 3.60

12. In collaboration of public sector in the provision of ICT tools

20 20

30 30

10 10

20 20

20 20

%

100 3.10

13. Scheduling of computer time

50 50

30 30

- -

10 10

10 10

%

100 4.00

14. Provision of software copies

40 40

30 30

20 20

10 10

- -

%

100 4.00

15. Provision of adequate telephone lines

50 50

20 20

- -

15 15

15 15

%

100 3.75

16. Integration of ICT to instruction

40 40

40 40

10 10

- -

10 10

%

100 4.00

17. Provision of sufficient peripherals

10 10

30 30

30 30

15 15

15 15

%

100 3.10

18. Provision of enough supervision staff

40 40

40 40

10 10

- -

10 10

%

100 4.00

19. Provision of enough computers

60 60

20 20

5 5

12 12

3 3

%

100 4.22

20. Provision of enough simultaneous access

40 40

10 10

10 10

30 30

10 10

%

100 3.40

Sources: Field survey 2012 Result in table 1 above indicate that 19 items have mean values of 3.00 and above which is the stipulated positive decision rule while one of the items attracted mean value of 2.90 showing that teacher of business education programme were not motivated at all. Therefore, these 19 items were regarded as the strategies for effective utilization and application of


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ICTs in teaching/learning of business education courses in Nigerian universities. Research Question 2 Table 2: Frequency and Mean Scores of Business Teachers on the Utilization of ICT Tools/Facilities in Teaching and Learning of Business Education Courses in Nigerian Universities

FREQUENCY S/N ICT TOOLS

SA(5)

A (4)

N (3)

DA (2)

SD (1)

% TOTAL MEAN

1. Internet facilities 50 50

30 30

5 5

5 5

10 10

%

100 3.55

2. Overhead projector 40 40

20 20

10 10

20 20

10 10

%

100 3.60

3. Networking 20 20

80 80

- -

- -

- -

%

100 4.20

4. Generator 50 50

30 30

10 10

5 5

5 5

%

100 3.65

5. Light Pen 30 30

40 40

20 20

5 5

5 5

%

100 4.15

6. Fax Machine 30 30

30 30

10 10

20 20

10 10

%

100 3.85

7. World Wide Web (www)

40 40

50 50

10 10

- -

- -

%

100 4.30

8. Video Cassette recorder 30 30

30 30

20 20

10 10

10 10

%

100 3.60

9. Video projectors 50 50

20 20

10 10

20 20

- -

%

100 4.00

10. CD-ROM 30 30

40 40

20 20

5 5

5 5

%

100 3.85

11. Computer Assistant Instruction (CAI)

40 40

30 30

10 10

10 10

10 10

%

100 3.80

12. Telephone lines 50 50

30 30

5 5

5 5

10 10

%

100 3.55

13. Date Management Packages

40 40

30 30

10 10

10 10

10 10

%

100 3.80

14. E-mail 50 50

30 30

- -

10 10

10 10

%

100 4.00

15. Computer Laboratory 30 40 15 - 15 100 3.70


100

30 40 15 - 15 % 16. Application Software 10

10 30 30

40 40

10 10

10 10

%

100 3.20

17. Electronic scanners 30 30

30 30

20 20

10 10

10 10

%

100 3.60

18. Video and Audio Conference Equipment

50 50

25 25

20 20

- -

5 5

%

100 4.15

19. Electronic chalk board Application

25 25

20 20

30 30

15 15

10 10

%

100 3.55

20. Stencil Electronic Machine

20 20

40 40

20 20

20 20

- -

%

100 3.60

21. Computer Printer 30 30

50 50

20 20

- -

- -

%

100 4.10

Source: Field Survey 2012 In Table 2 above, the 21 items were rated the mean of 3.00 and above showing that these items were not utilized at all in the teaching and learning of business education courses. Research Question 3 Table 3: Frequency and Mean Scores of Business Educators on the Problems that Hinders the Effective Utilization and Application of ICTs in the Teaching and Learning ofBusiness Education in the Nigerian Universities

FREQUENCY S/N PROBLEMS IN

UTILIZATION & APPLICATION OF ICT TOOLS

SA (5)

A (4)

N (3)

DA(2)

SD(1)

% TOTAL MEAN

1. Lack of fund 50 50

30 30

10 10

3 3

7 7

%

100 4.12

2. Equipment/facilities highly expensive

40 40

38 38

12 12

6 6

4 4

%

100 4.04

3. Inconsistent electric power supply

40 40

46 46

14 14

- -

- -

%

100 4.26

4. Shortage of equipment/facilities (Workshops and

50 50

40 40

10 10

- -

- -

%

100 4.00


101

laboratory) 5. Insufficient teacher

time 30 30

50 50

10 10

5 5

5 5

%

100 3.95

6. Insufficient Peripherals

20 20

30 30

10 10

10 10

30 30

%

100 3.00

7. Societies negative attitude towards ICT

30 30

20 20

30 30

10 10

10 10

%

100 3.50

8. Lack of mechanical manpower (Technical Assistance)

50 50

40 40

10 10

- -

- -

%

100 4.40

9. Government non-chalant attitude towards ICTs curriculum in schools

40 40

30 30

10 10

20 20

- -

%

100 3.90

10. Poor teaching strategy (Method)

40 40

50 50

- -

- -

10 10

%

100 4.10

11. Poor incentive of Business Education

30 30

20 20

10 10

30 30

10 10

%

100 3.30

12. Lack of training programme for business education teachers

40 40

40 40

- -

10 10

10 10

%

100 3.90

13. Bad attitude of school management in the teaching and application of ICTs

40 40

30 30

10 10

10 10

10 10

%

100 3.80

14. Insufficient number of computers

48 48

32 32

10 10

10 10

- -

%

100 4.18

15. Difficult to integrate ICT to instruction

40 40

40 40

- -

10 10

10 10

%

100 3.50

16. Scheduling computer time

30 30

30 30

15 15

5 5

20 20

%

100 3.45

17. Lack of qualified ICT personnel (Teachers)

40 40

50 50

- -

- -

10 10

%

100 3.60

18. Insufficient copies of software

50 50

30 30

10 10

5 5

5 5

%

100 4.15

19. Not enough supervision of staff

30 30

47 47

5 5

13 13

5 5

%

100 3.84

20. Not enough simultaneous access

30 30

20 20

20 20

10 10

20 20

%

100 3.30


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21. In equate telephone lines

50 50

30 30

10 10

5 5

5 5

%

100 4.15

Source: Field survey, 2012 With a mean rating of 3.00 and above, all the 21 items were identified as the problems hindering the successful utilization and application of ICTs in delivering of business education courses in the Nigerian universities. HYPOTHESES Hypothesis 1 Table 4: Results of Z-Test Difference between Mean Responses of Male and Female Business Education Teachers and Application of ICTs in the Teaching and Learning of Business Education in the Nigerian Universities Business Teachers

Sample Size

Mean (X)

Standard Deviation

Standard Error

Z-test Value

Significant probability

Decisions

Male 45 2.82 0.978 0.078 -0.131 0.890 NS Female 55 2.80 0.965 0.065 The Z-test value is -0.131 with a significant probability of 0.890. The Z-test score is not significant at 0.05 level since 0.890 is greater than 0.05. This means that there is no significant difference in the ratings of male/female business education teachers on the effective strategies for utilization and application of ICTs in the teaching and learning of business education courses in the Nigerian universities. Therefore, the null hypothesis is accepted.


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Hypothesis 2 Table 5: Results of Hypothesis of Z-Test Difference between Mean Scores of Female and Male Business Education Teachers on Extent of Utilization of ICT Tools in the Teaching and Learning of Business Education Courses in The Nigerian Universities Business Teachers

Sample Size

Mean (X)

Standard Deviation

Standard Error

Z-test Value


Decisions

Male 55 2.78 1.10 0.124 0.354 0.713 NS Female 45 2.69 0.73 0.056 The Z-test score value is 0.354 with a significant probability of 0.723. The Z-test is not significant at 0.05 level since 0.713 is greater than 0.05. It means that there is no significant difference in the ratings of male/female business education teachers on the extent of utilization of ICT tools in the teaching and learning of business education courses. The null hypothesis is therefore, accepted. Hypothesis 3 Table 6: Results of Z-Test Difference between the Mean Scores of Male and Female Business Education Teachers on the Problems that Hinders the Effective Utilization and Application of ICTS in the Teaching and Learning of Business Education Courses in the Nigerian Universities Business Teachers

Sample size

Mean (X)

Standard Deviation

Standard Error

Z-test Value


Decisions

Male 45 2.82 0.983 0.108 -0.93 0.92 NS Female 55 2.76 0.02 0.081 The date presented on table 6 showed that with the Z-test value of -0.93 and significant at 0.05 level since 0.924, z-test is not significant at 0.05 level since 0.92 is greater than 0.05. This means that there is no


104

significant difference in the rating of male and female business education teachers on the problem that hinders the effective utilization of ICTs in the teaching and learning of business education courses in the Nigerian universities. Therefore, the null hypothesis is accepted. DISCUSSIONS This study revealed that the inclusion of the ICTs in the teaching and learning of business education courses in Nigerian universities have affected the utilization of ICT due to global changes. Business educators agreed that some strategies could be used to ensure effective utilization and application of ICT in teaching/learning of business education courses as to enhance the quality of the programme; such as teachers enhance salaries, adequate power supply, government funding and procurement for ICT tools, government intervention into ICT school curriculum, provision of ICT tools, facilities and infrastructure, provision of enough computers, etc. the findings are in line with the opinion of Mandara (2012) that the provision of the technical support, huge amount of capital for the purchasing of equipment/facilities, appropriate textbooks encourages and motivates of business education teachers and students enhances the teaching and learning of various business education courses. Though, these teachers seem not to be motivated in one item. This study found that ICT tools/facilities as identified by business educators were not properly utilized in delivering of business education courses. In support of the above view, Pelgum (2001) states that the obstacles for ICT implementation include the following: difficult to integrate ICT to instruction, insufficient teacher’s time, not enough simultaneous access, poor internet connection, scheduling of computer time, poor peripherals, teachers lack of ICT knowledge/skills, lack of technical personnel etc. The findings also reveals that business educators agree that some problems hinders the effective utilization of ICT in delivering business educations courses, these include; limited equipment, inadequate skills, time constrains, power supply, inadequate lines, management attitude and the teacher’s own lack of interest/knowledge about computer (Pelgrum, 2001, Lewis and Smith, Smith 2002, and Kwacha, 2001). The result


105

therefore agrees with the above findings that there is lack of proper funding of vocational education of which business education is inclusive. (Aigbepue, 2011). Conclusion The findings of the study showed that there was no significant difference in the mean scores of business education teachers irrespective of their gender. So the result indicate that due to non-availability of ICT tools/facilities, business teachers were unable to make effective use of the ICT tools in delivering business education courses, therefore, resulting to low skilled teachers and students which is the negative objective of ICTs. Hence, a competent teacher masters his/her subject matter. Recommendation The following steps would be adopted in proffering solutions to the problems of utilizing ICT in business education:

1. The Nigerian government should address the issue of incessant supply of electric powers.

2. Government should provide huge sum of money for the procurement of ICT tools/facilities.

3. The philanthropist should in collaboration with the school provide ICTs tools, ICT centers and donation of funds.

4. Teachers should be adequately exposed to ICT training for acquisitions of competent to enable them retain the skills and knowledge.

5. Teachers’ conditions of service should be enhanced and incentives improved.

6. Government should be involved in developing and training of ICT experts who will work in partnership with educators and teachers.

7. There should be inclusion of ICT by the Nigerian government in school curriculum especially in the teacher education curriculum.

8. ABEN should form a global curriculum for ICT and business education programme so that the recipients in all the tertiary institutions will cover the same curriculum with their counterparts.


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Technology towards Poverty Reduction and Inhibiting Factors to Poverty Alleviation. JORIND (9) June, 2011. www.Transcampus .Org/Journals. Retrieved 30th, August, 2012.

Alibi, E. (2004, April 30). Evolving Role of ICT in Teaching, Research,

and Publishing. Nigerian Tribune, 30-31 Anao, A.R. (1986). The Role of Business Education in Developing

Economy.Business Education Journal. (1) 19 -24 Egungu, E. (2001) in Nzotta, S.M. (2002). Human Resources Conceptual

Framework, Owerri: Olliverson Ind. Publishers. Federal Government of Nigeria (2004). .National Policy on Education.

Lagos: National Educational Research and Development Center. Hawkins, R.J (1998). Ten Lessons for ICT and Education In Developing

World Banks Development Indicators, World Bank, New York: Dover

Kwacha, P.Z. (2001). The Imperative of Information and Communication

Technology for Technology in Nigeria. MOFLOT Journal of Online Learning and Technology, 3 (4), 10-15

Koonz, H.O. And Weihirich, H. (1990).Management Tokyo McGraw Hill

Book Company Law, B and Smith, R. (2002). The Development of An Electronic

Education Portfolio: An Outline for Medical Education Professional. Teaching and Learning In Medicine, 19 (2), 139 – 147


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Law, N. Pelgrum, W.I and Plomp, J. (2008).Pedagogy and ICT Use in Schools around the World: Findings from The IFA SITES 2006 Study. Hong Kong: Springer

Mandara, B. (2012). Utilization of Information and Communication

Technologies (ICT) in the Teaching of Office Education Graduates in Adamawa State Tertiary Institutions. Journal of Education and Policy Review, 4 (1), 1-9

Nwosu, O and Ogbomo, E.F. (2012). ICT in Education: A Catalyst for

Effective Use of Information. PNLA Quarterly: The Official Publication of the Pacific North West Library Association.

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Framework. Owerri: Olliverson Ind. Publishers. Odiari, A.U. (1997). Management Information System: Principles and

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An Empirical Assessment of the operational efficiency of electronic banking: Evidnce of Nigerian banks

*Ekwueme, C. M, Ph.D, *Egbunike, P. A, Ph.D & **Amara Okoye, Msc

*Nnamdi azikiwe university, awka **University of Nigeria, Nsukka.

Abstract: This study assessed the operational efficiency of electronic banking in Nigeria with a focus on the twenty-one Commercial banks listed on the Nigerian stock exchange at the end of year 2010. It examined the practice of e-banking since its inception in Nigeria in order to determine the significance of its relationship with improvement in core banking operations. Secondary data were used for this study. Correlation technique as well as simple percentage were used to analyzed the data, and the student’s t-distribution was used to test the hypotheses. The study revealed that the practice of e-banking in Nigeria is significantly related to increased operational efficiency of Nigerian banks, though the security problem was found to exist. Based on these findings, the researchers recommend among others that government through CBN should provide adequate security measures towards the various e-banking products in Nigeria. Introduction: 21st century has witnessed tremendous technology advancement in all spheres of human endeavour. The increasing advancement in information and communication technology has transformed the landscape of any business in the present world while this change is not unique to banking, banking industry now operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and communication Technology (ICT) is at the centre of this global change curve. In Nigeria, Modern banks now realize that only those that overhaul their payment service delivery and operations are likely to survive and prosper in the 21st century. This is due to pressure of globalization and rapidly changing technology (Connel and Saleh, 2004).


109

Business today is conducted in an age of highly complex technology imposing on banking officials the need to implement sophisticated banking systems which accord with present day needs. Consequently paper based transactions are now being replaced by electronic based transactions (Agboola, 2006). In recent years in Nigeria, there has been persistent public outcry as regards the new challenges, the electronic banking since its inception in 1996 has brought to financial institutions (banks) and general public. To many people, banking transaction via the internet are insecure and often congested. Hence, interruption is usually experienced in banking operations due to network failures. This hindered customers from carrying out transactions at that point in time. Besides, many people do not know what e-banking entails, or how to use its products. This aids in revealing the secrete PIN number (in the case of ATM card and other cards transaction) to the third party by the illiterate cardholders (customers) at any time they want to make withdrawals as they always request for assistance. Consequently there are increases in fraudulent activities in the banking industry. The CBN Annual Report and Statement of Accounts, (2009) have it that, the number of reported cases of attempted or successful fraud and/or forgery in the banking industry rose in 2009. According to the report, seventy percent of the fraud cases were perpetrated via the electronic system. These issues to this group of people have posed problems to the smooth operations of electronic banking in Nigeria. Worried by this ever increasing spate of fraud and forgeries in the banking sector, the researchers raised a number of research questions thus:

1. What is the extent of correlation between e-banking practices in Nigeria and increased insecurity of banking transactions?

2. What is the degree of relationship between e-banking practices in Nigeria and total credit facilities granted by Nigerian banks?

3. To what extent has e-banking improved the level of deposits (savings and time deposits) with Nigerian banks?

It is therefore intended that the following hypothesis will guide the test of the above research questions:


110

1) There is no significant relationship between e-banking practices in Nigeria and the rate of increase in the insecurity of banking transactions.

2) The practice of e-banking in Nigeria is not significantly related to increased total credit facilities granted by Nigerian banks.

3) Significant relationship does not exist between the level of deposits (savings and time deposits) with Nigerian banks and e-banking practices in Nigeria.

The remainder of this paper is organized in the following manner, section 2 provides the Review of the Literature under investigation. Section 3 presents the methodology. The results of the empirical findings follow in section 4. Finally, conclusions and recommendations are presented in section 5. Review of related Literature Evolution of E-banking in Nigeria Banking has come a long way from the time of ledger cards and other manual filling system to the computer age. Computerization in the Nigerian banking industry was introduced first in the 1970s by Society General Bank (Nigeria) Limited. Until the mid 1990, few banks that were computerized adopted the Local Area Network (LAN) within the bank branches. The sophisticated ones among the banks then implemented the WAN by linking branches within cities while one or two implemented intercity connectivity using leased lines (Salawu and Salawu, 2007). Later on, the Scenario became different, banks have not only adopted computerization but advanced from very simple and basic retail operations of deposits and cash withdrawal as well as cheque processing, to the delivery of sophisticated products which came as a result of keen competition in view of unprecedental upsurge in the number of banks and branches as well as advancement in the information technology. There was the need to innovate and modernize banking operation in the face of increased market pressure and customers demand for improved service delivery and increased


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convenience. The adoption of internet and electronic banking therefore become an imperative (Salawu and Salawu, 2007). According to Sanusi (2002) as cited by Dogarawa (2005). The introduction of e-banking (e-payment) products in Nigeria commenced in 1996 when the CBN granted All States Trust Bank approval to introduce a closed system electronic purse called ESCA. This was followed in February 1997, with the introduction of a similar product called “Paycard”, by Diamond Bank. The card based e-money products assumed an open platform with the authorization in February 1998, of Smartcard Nigeria PLC, a company floated by a consortium of 19 banks to produce and mange cards called value card and issued by the member banks. Another consortium of more than 20 banks under the auspices of Gemcard Nigeria Limited obtained CBN approval in November 1999 to introduce the “Smartpay” Scheme (Dogarawa, 2005). The number of participating banks in each of the two schemes had been rising since then. Furthermore, the CBN additionally granted approval to a number of banks to introduce international money transfer products, telephone banking and on-line banking via the internet, though on a limited scale (Dogarawa 2005, cite Abdulhakeem, 2002). Mention must also be made on the deployment of Automated Teller Machine (ATM) by some banks to facilitate cards usage and further enhance their service delivery. Today, virtually all Banks in Nigeria now have a website. The service or ordering bank drafts or certified cheque made payable to third parties has also been increasingly automated (Irechukwu, 2000). Major Product of Electronic Banking in Nigeria Smart card or electronic pulse (use of point of sale terminal), Electronic Fund Transfer (ETF), Internet banking, Automated Teller Machine (ATM), Telephone banking and personal computer banking are the major products of electronic banking in Nigeria. Smart Card: This is a card issued to a customer (a person who has a current account with the bank) by a member bank of SMART CARD Nigeria Limited to aid them in their transactions. Ideally, each card


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holder (customer, to whom a card or electronic pulse is issued) should be an existing customer with a member bank of the consortium responsible for such e-money product. The card issued to the customer is usually PIN protected (Personal Identification Number), and each card holders has access/pass code or password different from any other person’s. Such a pass code must be kept secret and must be changed any time it becomes known to someone else. The bank is exempted from any form of liability whatsoever for complying with any or all instrument(s) given by means of the customer’s pass code or access code if by any means any of such code becomes known to a third party. At intervals, the card should be taken to any branch or designated branch as the case may be to UPLOAD (Similar to crediting the account). When this is done, it reduces the cash value of the current account with the bank and increases the cash value of the card. Uploading is done using a Bank Teller Terminal (BTT). The merchants are designated centres where cardholders can transact business using electronic pulses or card. They include such places as restaurants, hotels, airlines, supermarkets and lately some pharmaceuticals. Such merchants are normally equipped with point of sales terminal (POS), a device mounted by each merchant for use by cardholders. To settle their transaction, cardholders insert their cards into the POS to store the transaction, issue receipt and disclose the balance on the card. As a matter of policy, merchants normally targeted for the scheme are outlets with a business turnover of not less than one million naira annually. Merchants, unlike card holders, need not have an account with the bank. But as a matter of necessity, they are required to open an account with the bank. Member banks of the consortium intermediate between cardholders, merchants, and issuers of the e-money value. The banks help to reconcile the card balances with the current account of the cardholder domiciled in the bank. Banks normally charge interest for the role though this varies from bank to bank. Like merchants, the banks also have point of sales terminal to satisfy customers who need cash for other non business related transactions. (Iyabi, 1997). Other card


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transactions include the use of debit card, credit card, master card, visa card etc. these cards have similar function with the smart card discussed above. Electronic Fund Transfer (EFT): This is an electronic oriented payment mechanism. It allows customers accounts to be credited electronically within 24 hours (Ugwu, et al, 1999). Mark (1975) classified the basic elements of ETF system into three: Clearing network characteristics, remote service or points of sales characteristics and pre authorized debit and/or credit characteristics. a. Clearing network characteristics: This deals with automated

clearing service and this manifest in the use of Magnetic Ink Character Reader (MICR) in Nigeria.

b. The remote service or point of sale characteristics address the units of banking activities that transfer funds from one bank current or savings accounts to another bank current or savings account. The transfer is always authorized and the record is kept on file of that authorization. There is also a second-generation remote service unit that is capable of electronically placing a third party into the customer-financial institution communication link. This is known as POS (Point Of Sale Terminals). POS terminals handle cheque verification, credit authorization, cash deposit and withdrawal, and cash payment. This enhances electronic fund transfer at the point of sale (EFT POS). EFTPOS enables a customer’s account to be debited immediately with the cost of purchase in an outlet such as a supermarket or petrol station (Ugwu, et al, 1999). The purchase price is debited on the buyer’s account and credited on the seller’s account.

c. Pre-authorized debit and/or credit characteristics of the EFT manifest in the use of cards. Plastics cards are used to identify customers and pass same to machine to initiate a paper or electronic payment. Electronic cards are microchips that store electronic card, which is only cheque guaranteed (Ugwu, et al 1999). Financial institutions issue credit cards in order to provide credit facilities to their customer and debit cards to ease payment. Credit cards are used as means of borrowing or as a


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convenient method of payment. Debit card is a charge card designed as a convenient method of payment in place of cash or cheque.

Electronic fund transfer has been variously designed to ease international transfer of money. In 1977, the international payment system known as SWIFT (Society for Worldwide Inter-bank Financial Telecommunication) became operational. SWIFT enables user banks to use electronic mode to transfer international payments, statements and other banking messages. In Nigeria, First Bank Western Union, Monogram of United Bank for Africa among others perform international Funds transfer. Due to regulatory policy, monies can only be received and not sent from Nigeria.

It is pertinent to mention that connectivity via the use of Local Area network

(LAN) and Wide Area Network (WAN) has facilities electronic transfer of

funds. Mobile Telephone banking: Mobile phones are increasingly being used for financial services in Nigeria. Banks are enabling the customers to conduct some banking services such as account inquiry and funds transfer through the mobile telephone. Alert Z of Zenith bank is an example of e-banking services via mobile phone (SMS). This notifies the customer of any transaction on his/her account. Personal Computer (PC) Banking: PC banking refers to use of computer hardware, software and telecommunications to enables retail customers’ access to both specific account and general information on bank’s products and services through a personal computer. Automated Teller Machine: This is an electronics device which allows a bank’s customers to make cash withdrawals and check their account balances at any time without the need for a human teller. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts or even buy postage stamps. To withdraw cash, make deposits, or transfer funds between accounts, you generally


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insert an ATM card and enter your personal identification number (PIN). Some ATMs impose a surcharge, or usage fee, on consumer who are not member of their institution or on transactions at remote locations. ATMs must disclose the existence of a surcharge on the terminal screen or on a sign next to the screen. Check the rules of your institution to find out when or whether a surcharge is imposed. If one incurred a loss or stolen ATM card, he/she should notify the issuer by certified letter, return receipt requested, so you can prove that the institution received your letter. Keep a copy of the letter you send for your records. If you fail to notify the institution of the error within 60 days, you may have little recourse. Under Federal Law, the institution has no obligation to conduct an investigation if you have missed the 60 –days deadline. After notification about an error on your statement, the institution has 10 business days to investigate. The financial institution must tell you the results of it’s investigation within three business days after completing it and must correct the error within one business day after determining that the error has occurred. If the institution needs more time, it may take up to 45 days to complete the investigation but only if the money in dispute is returned to your account and you are notified promptly of the credit. At the end of the investigation, if no error has been found, the institution may take the money back if it sends you a written explanation. Recently in Nigeria, the CBN issued a warning that banks will be liable for ATM frauds committed with cards issued without card owners requesting for it. Also, the apex bank advised all banks to commence the issuance of ATM verve cards (which is more secured) in place of ATM magnetic strip cards. The Internet banking: Internet is a global network of computers. It is a collection of computers networks, computers and millions of users, who share a compatible means for interacting with one another to exchange information. (Awe, 1998). The word “internet” is the abbreviation for international network for communication. It has the following services:


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a. Electronic mail (E-mail): Awe (1998) described the E-mail as the letter to anyone, anywhere in the world but doing it electronically.

b. E-mail to fax: According to Olurunta (1997), this is a supplementary service to the e-mail services. It is designed to enable a subscriber send messages to those who have no e-mail facility but fax facilities.

c. World Wide Web: This is the services in which anyone with information or goods to sell, advertise or gives away could place the information in a place called a ‘website’. Those in need for such information will then use special software called the “Browser” to link up with websites and read or download any information they want.

d. Chart: this is a system that permits time type conversations among internet users.

e. Telnet: According to Awe (1998), this is a basic internet services which allows one to physically access remote computers as if they were local to him. To use Telnet, you must have the Internet address of the network computer and a valid user name and a password that logs you into the remote computer as if it were local machines.

f. File Transfer Protocol (FTP): It is the standard protocol for carrying files from computer to computer on the internet. Similar to Telnet, FIP allows you access to remote machines. The internet enables electronic banking through connections to the bank for a wide variety of services.

The use of the various forms of e-banking products grew significantly in the year 2009 as the volume and value of the transactions stood at N114.6 million and N645.04 billion respective (CBN annual report and statement of account, 2009). Hence, table 2.5.7 shows the increase in utilization of e-banking product among Nigerians in 2009 as against 2008.


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Table 1: Market share in the e-payment market in 2008 and 2009 E-payment segment Volume

(millions) Value (N’ Billion)

2008 2009 2008 2009 ATM transactions 60.1 109.2 399.71 548.60 Web (Internet payment)

1.6 2.7 25.05 84.15

Online POS transaction

1.2 0.9 16.12 11.04

Mobile telephone payment

3.2 1.8 0.70 1.26

Total 66.1 114.6 441.6 645.05 Source: Extracted from CBN Annual Report and Statement of Account for the year ended 31st December, 2009. E-banking and Operational Efficiency of Nigerian Banks Operational efficiency of e-banking in Nigeria can be assessed by critically evaluating the banking operations between two periods. These include pre and post e-banking period in Nigeria. Pre-Electronic banking period (1982-1995) The first bank in Nigeria was established in 1892 (then African Banking Corporation). There was no banking legislation until 1952 when three foreign banks (Bank of British West Africa, Barclays Bank, and British and French Bank) and two indigenous banks (National Bank of Nigeria and African Continental Bank) were established, with a total number of 40 branches (Osabuohien, 2008 cite Iganiga, 1998). As at 1988, the Nigerian banking system consisted of the CBN, 42 commercial banks and 24 Merchant Bank (Osabuohien, 2008 cite Iganiga, 1998 and Adam, 2005). Between the period of 1892-1995, banking transactions were mostly paper-based transactions. Manual processing of documents were in use. These resulted to slow pace of banking operations vis-à-vis their employees’ productivity cum general performance. Ovia (2005) have it that banks’ customers were inevitably made to spend several hours in the congested banking halls in carrying out their transactions. This implies that pre-electronic banking periods were days when


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banking halls are characterized by long queues manly as a result of delays in the traditional banking operations thereby leading to low operational efficiency in the banking sector. Post E-banking Period (1996-present) The introduction of e-banking (e-payment) products in Nigeria commenced in 1996 (Dogarawa, 2005 cite Sanusi, 2002). It is a situation whereby Nigerian banks perform their banking operations through electronic means. Irechukwu (2000) lists some banking services that have been revolutionized through the use of ICT as including account opening, customer account mandate, and transaction processing and recording. Akinlili (1996) added that ICT application can be seen in almost all areas of banks’ activities. This phenomenon is capable of bringing about speedy operations and enhanced productivity (Osabuohien, 2008 cite Adeoti, 2005; Ova, 2005). Electronic banking became prominent after the Central Bank of Nigeria banking reformation exercise in June 2004, which was geared towards reducing the number of banks in the country and making the emerging banks much stronger and reliable. The surviving banks after the reformation exercise have been able to catch up with global developments and now operate with better service delivery. Before this period, it took time for transaction to be completed on the floor of Nigerian banks, customers were driven away from banking transactions just because of poor services and facilities. But with e-banking, the Scenario is different. The banks official website (all the commercial banks have their own websites) properly enlightened customer or public as to the activities of the banks. It can give any visitor to customer all the information about the operations of the banks such as account opening information, information about internet banking viz: access to online balance of customer’s account, transfer of funds to third party and access to all transfer history on customers account. Customers do not need to wonder whether a cheque has cleared or a deposit has been posted. At the click of a button, customers can easily check the status of their current, saving and any other type of account. Also. Customers do not have to wait till month end for historical, snail mail statements of account, through online banking,


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banks can provide immediate account enquires/ statements online for customers. Furthermore, e-banking gives the ability to pay bills electronically. Since banks tie-up with various companies, services providers and insurance companies across the country, a customer can facilitate payment of electricity and telephone bills, online registration, scratch card of universities and insurance premium bills. Customers can also transfer any amount from one account to another of the same bank or another bank. Geographical locations are no longer barriers to financial transactions. Conclusively, the application of Information Technology (IT) in Nigerian banks has enabled banks to achieve a higher level of efficiency (decongestion in the banking hall), provide cost effective services and offer a wide spread flow of information at no time and at a reasonable cost. Therefore only banks that overhaul the whole of their payment and delivery systems and apply ICT to their operations are likely to survive and prosper in the new millennium (Woherem, 2000). Central Bank of Nigeria Guidelines on Electronic Banking in

Nigeria. The CBN recognizes that electronic banking and payments services are still at the early stages of development in Nigeria. Arising from the three major roles of the CBN in the areas of monetary policy, financial system stability and payments system oversight, the CBN Technical Committee on E-banking has produced a report, which anticipates the likely impact of the movement towards electronic banking and payments on the achievement of CBN’s core objectives. Following from the findings and recommendations of the Committee, four categories of guidelines have been developed as follows: a. Information and Communications technology (ICT) standards,

to address issues relating to technology solutions deployed, and ensure that they meet the needs of consumers, the economy and international best practice in the areas of communication, hardware, software and security.

b. Monetary policy, to address issues relating to how increased usage of internet banking and electronic payments delivery


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channels would affect the achievement of CBN’s monetary policy objectives.

c. Legal guidelines to address issues on baking regulations and consumers rights protection.

d. Regulatory and Supervisory, to address issues that, though peculiar to payments system in general, may be amplified by the use of electronic media.

The Guidelines are expected to inform the future conduct of financial Institutions in e-banking and electronic payments delivery. A detailed report of the Technical Committee on e-banking, which resulted in these guidelines, is available below (CBN, 2003). The Guidelines i. Technology and Security Standards

CBN will monitor the technology acquisitions of banks, and all investment in technology, which exceeds 10% of free funds, will hence forth be subject to approval. Where banks used third parties or outsource technology, banks are required to comply with the CBN guidelines. ii. Standards for Computer network and Internet

a. Network used for transmission of financial data must be demonstrated to meet the requirements specified for data confidentiality and integrity.

b. Banks are required to deploy a proxy type firewall to prevent a direct connection between the banks back end systems and the internet.

c. Banks are required to ensure that the implementation of the firewalls addresses the security concerns for which they are deployed.

d. For dial up services, banks must ensure that the moderns do not circumvent the firewalls to prevent direct connection to the bank’s back end system.

e. External devices such as Automated Teller Machines (ATMs), personal Computer, (PC’s) at remote branches, kiosks, etc. permanently connected to the bank’s network and passing


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through the firewall must at the minimum address issues relating to non-repudiation, data integrity and confidentiality. Banks may consider authentication to other methods.

f. Banks are required to implement proper physical access controls over all network infrastructures both internal and external.

iii. Standard on protocols

Banks must take additional steps to ensure that whilst the web ensure global access to data enabling real time connectivity to the bank’s back-end systems, adequate measures must be in place to identify and authenticate authorized user while limiting access to data as denied by the Access Control List.

iv. Standards on Application and System software

a. Electronic banking application must support centralized (bank-wide) operations of branch level automation. It may have a distributed, client server or three tier architects based on a file system or a Database Management System (DBMs) package. Moreover, the product may run on computer systems of various types ranging from PC’s open systems, to proprietary main frames.

b. Banks must be mindful of the Limitations of communications for server/ client-based architecture in an environment where multiple servers may be more appropriate.

c. Banks must ensure that their banking applications interface with a number of external sources. Banks must ensure that applications deployed can support these external sources (Interface Specification or other CBN provided interfaces) or provide the option to incorporate these interfaces at a later date.

d. A schedule of minimum data interchange specifications will be provided by the CBN.

e. Banks must ensure continued support for their banking application in the event the supplier goes out of business or is unable to provide service. Banks should ensure that at a minimum, the purchase agreement makes provision of this possibility.


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f. The bank’s information system (IS) infrastructure must be properly and physically secured. Banks are required to develop policies setting out minimum standards of physical security.

g. Banks are required to identify an ICT compliance officer whose responsibilities should include compliance with standard contained in these guidelines as well as the bank’s policies on ICT.

h. Banks should segregate the responsibilities of the information Technology (IT) security Officer/ group which deals with information systems security from the IT division, which implements the computer systems.

v. Standards on Delivery Channels

Mobile Telephony: mobile phones are increasingly being used for financial services in Nigeria. Banks are enabling the customers to conduct some banking services such as account inquiry and funds transfer. Therefore the following guidelines apply:

a. Networks used for transmission of financial data must be demonstrated to meet the requirements specified for data confidentially, integrity and non repudiation.

b. An audit trial of individual transactions must be kept. Automated Teller Machine (ATM): In addition to guidelines on e-banking in general, the following specific guidelines apply to ATMs”

a. Networks used for transmission of ATM transactions must be demonstrated to meet the guidelines specified for data confidentiality and integrity.

b. In view of the demonstrated weaknesses in the magnetic stripe technology, banks should adopt the chip (smart card) technology as the standard, within 5 years. For banks that have not deployed ATMs, the expectation is that chip based ATMs would be deployed. However, in view of the fact that most countries are still in the magnetic stripe conversion process, banks may deploy hybrid (both chip and magnetic stripe) card readers to enable the international cards that are still primarily magnetic stripe to be used on the ATMs.


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c. Banks will be considered liable for fraud arising from card skimming and counterfeiting except where it is proven that the merchant is negligent. However, the cardholder will be liable for frauds arising from PIN misuse.

d. Banks are encountered to join shared ATM networks. e. Banks are required to display clearly on the ATM machines, the

Acceptance Mark of the cards usable on the machine. f. All ATMs not located within bank premises must be located in

a manner to assure the safety of the customer using the ATM. Appropriate lighting must be available at all times and a mirror may be placed around the ATM to enable the individual using the ATM to determine the locations of persons in their immediate vicinity.

g. ATMs must be situated in such a manner that passers by cannot see the key entry of the individual at the ATM directly or using the security devices.

h. ATMs may not be placed outside buildings unless such ATM is bolted to the floor and surrounded by structures to prevent removal.

i. Additional precaution must be taken to ensure that any network connectivity from the ATM to the bank or switch are protected to prevent the connection of other devices to the network point.

j. Non-bank institutions may own ATMs, however such institutions must enter into an agreement with a bank for the processing of all the transactions at the ATM. If an ATM is owned by a non-bank institution, processing banks must ensure that the card readers, as well as other devices that captures/ store information on the ATM do not expose information such as the PIN number or other information that is classified as confidential. The funding (cash in the ATM) and operation of the ATM should be the sole responsibility of the bank.

k. Where the owner of the ATM is a financial institution, such owner of the ATM must also ensure that the card reader as well as other devices that capture information on the ATM does not expose/ store information such as the PIN number or other information that is classified as confidential to the owner of the ATM.


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l. ATMs at bank branches should be situated in such a manner as to permit access at reasonable times. Access to these ATMs should be controlled and secured so that customers can safely use them within the hours of operations. Deployers are to take adequate security steps according to each situation subject to adequate observance of standard security policies.

m. Banks are encountered to install cameras at ATM locations. However, such cameras should not be able to record the keystrokes of such customers.

n. At the minimum, a telephone line should be dedicated for fault reporting, and such a number shall be made known to users to report any incident at the ATM. Such facility must be manned at all times the ATM is operational.

Internet Banking Banks should put in place procedures for maintaining the bank’s web site which should ensure the following: a. Only authorized staff should be allowed to update or change

information on the web site. b. Updates of critical information should be subject to dual

verification (e.g. interest rates) c. Web site information and links to other web sites should be

verified for accuracy and functionality. d. Management should implement procedures to verify the accuracy

and content of any financial planning software, calculators, and other interactive programme available to customers on an Internet Web site or other electronic banking services.

e. Links to external web sites should include a disclaimer that the customer is leaving the bank’s site and provide appropriate disclosures, such as noting the extent, if any, of the bank’s liability for transactions or information provided at other sites.

f. Banks must ensure that the Internet Service Provider (ISP) has implemented a firewall to protect the bank’s web site where outsourced.

g. Banks should ensure that installed firewalls are properly configured and institute procedures for continued monitoring and maintenance arrangements are in place.


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h. Banks should ensure that summary-level reports showing web-site usage, transaction volume, system problem logs, and transaction exception reports are made available to the bank by the web administrator.

Methodology Documentary data collection was used. Data including the volume of e-banking products utilized in Nigeria for years 2005 – 2010, fraud and forgery in banking industry between years 2005 and 2010, savings and time deposit with Nigerian commercial Banks for years 2005 – 2010 and total credit facilities granted by Nigerian Commercial Banks between 2005 and 2010 were extracted from CBN Annual Report and Statement of Account (2007, 2009 and 2010). Data gathered were presented in tables and analyzed using simple percentage and corelational technique (Pearsonian product moment correlation coefficient). Students’ t-significance test was used in testing the hypotheses. This was as a result of small sample size used. Hence, the formula for Pearson’s correlation coefficient is While the formula for t-test statistics (when testing the significance of correlation coefficient) is

Where:

t = t-statistics n = number of observations or cases r = correlation coefficient n-2 = degree of freedom

Also, simple percentage formula is shown below:


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4.0 Result Discussions Test of Hypothesis 1 There is no significant relationship between e-banking practices in Nigeria and the rate of increase in the insecurity of banking transactions. Table 2: The extent of correlation between e-banking practices in Nigeria and increased insecurity of Nigerian banking transactions.

Period Volume of e-banking products utilized in Nigeria (million) (X)

No. of cases of Fraud and Forgery in banking industry (Y)

XY X2 Y2

2005 48.7 1,026 49,966.2 2,371.69 1,052,676 2006 50.6 1,253 63,401.8 2,560.36 1,570,009 2007 54.3 1,124 61,033.2 2,948.49 1,263,376 2008 66.1 1,974 130,481.4 4,369.21 3,896,676 2009 114.6 3,852 441,439.2 13,133.16 14,837,904 2010 195.7 5,960 1,166,372.0 38,298.49 35,521,600 ∑X =530.0 ∑Y = 15,189 ∑XY

=3,086,693.8 ∑X2=63,681.4 ∑Y2=58,142,241

Source: Extracted from CBN Annual Report and Statement of Account, 2005-2010


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Table 2 above shows the extent of correlation between e-banking practices in Nigeria and increased insecurity of Nigerian banking transactions (measured with number of cases of fraud and forgery in banking industry) since e-banking became prominent in Nigeria. The correlation coefficient of 3.028 was established in the table, implying that there is a very strong positive relationship between the two variables. Test of Hypothesis 2 The practice of e-banking in Nigeria is not significantly related to increased total credit facilities granted by Nigerian banks.


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Table 3: The degree of relationship between e-banking practices in Nigeria and the total credit facilities granted by Nigerian banks Period Volume of e-

banking products utilized in Nigeria (million) (X)

Total credit facilities granted by Nigerian commercial banks (N’million) (Y)

XY X2 Y2

2005 48.7 1,899,346.4 92,498,169.68 2,371.69 3607516747000 2006 50.6 2,524,297.9 127,729,473.7 2,560.36 6372079888000 2007 54.3 4,813,488.8 261,372,441.8 2,948.49 23169674430000 2008 66.1 7,806,751.4 516,026,267.5 4,369.21 60945367420000 2009 114.6 9,667,876.7 1,107,938,670 13,133.16 93467839890000 2010 195.7 9,921,678.3 1,941,672,442 38,298.49 98439700290000 ∑X =530.0 ∑Y = 36633439.5 ∑XY =4,047,237,466 ∑X2=63,681.4 ∑Y2=286002178700000

Source: Extracted from CBN Annual Report and Statement of Account, 2007, 2009 and 2010.


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Table 3 shows the degree of relationship that exist between e-banking practices in Nigeria and total credit facilities granted by Nigerian banks. The correlation coefficient of 3.632 which the table established shows a very strong positive relationship existing between the practice of e-banking in Nigeria and the increase in the total credit facilities granted by Nigerian banks. Test of Hypothesis 3 Significant relationship does not exist between the level of deposits (savings and time deposits) with Nigerian banks and e-banking practices in Nigeria.


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Table 4: The extent at which e-banking system has improved the level of deposits (Savings and time deposits) with Nigerian banks Period Volume of e-

banking products utilized in Nigeria (million) (X)

Savings and time deposit with Nigerian Commercial Banks (N’million) (Y)

XY X2 Y2

2005 48.7 1,316,957.4 64135825.38 2371.69 1734376793000 2006 50.6 1,739,636.9 88025627.14 2560.36 3026336544000 2007 54.3 2,693,554.3 146259998.5 2948.49 7255234767000 2008 66.1 4,118,172.8 272211222.1 4369.21 16959347210000 2009 114.6 5,763,511.2 660498383.5 13133.16 33218061350000 2010 195.7 5,924,182.3 1159362476 38298.49 35095935920000 ∑X =530.0 ∑Y = 21556014.9 ∑XY =2258859534 ∑X2=63681.4 ∑Y2=97289292580000

Source: Extracted from CBN Annual Report and Statement of Account, 2007, 2009 and 2010.


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Table 4: shows the computation of Pearson’s correlation coefficient on the extent at which e-banking system has improved the level of deposits with Nigerian banks. O.613 which is close to +1 was shown in the table as the correlation coefficient. This indicates that there is a strong relationship between the practice of e-banking in Nigeria and improve in the level of deposits with Nigerian banks. Summary of Findings Based on the analysis carried out, the following findings were discovered:

1. It was revealed that there is a significant relationship between e-banking practices in Nigeria and the rate of increase in the insecurity of banking transactions (measured with fraud and forgery in banking industry between 2005 and 2010). This shows that most of the successful fraud cases were perpetuated via electronic means reflecting insecurity of banking transaction via electronic means.

2. The study also revealed that the practice of e-banking in Nigeria is significantly related to increased total credit facilities granted by Nigerian banks. This was established in table 2 where the null hypothesis two was rejected as a result of 2.760 t-calculated which exceeds 2.182 t-table value when the significance of the relationship was tested using t-test statistics. Hence, e-banking has improved the total credit facilities granted by Nigerian banks. This result is in line with the findings of Agboola (2001) who studied the impact of computer automation on the banking services in Lagos and discovered


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3. that electronic banking has tremendously improved the services of some banks to their customers in Lagos.

4. Furthermore, it was discovered that a significant relationship does exists between the level of deposit with Nigerian banks and the practice of e-banking in Nigeria. This was justified in table 3 where the test for significance of relationship between the two variables were computed. The t-calculated of 3.168 that exceeds the t-table value of 2.182 left the null hypothesis (null hypothesis three) that says that ,“significant relationship does not exist between the level of deposits (savings and time deposits) with Nigerian banks and e-banking practices in Nigeria”, rejected. Therefore, e-banking system has actually improved the level of Nigerian banks’ deposits.

Conclusion/Recommendation Although, the security problem may have seen to be a crucial issue in the practice of e-banking in Nigeria but that could not imply that the operational efficiency of e-banking is impaired. This is because the core banking operations of accepting deposits, granting credit facilities and facilitating cash withdrawal have empirically proved to have improved with the introduction of e-banking in Nigeria (see table 1, table 2 and table 3 respectively). In the support of this paper, Woherem (2000) opined that only banks that overhaul the whole of their payment and delivery system and apply ICT to their operations are likely to survive and prosper in the new millennium. Therefore it can be concluded that e-banking introduction in Nigeria had aid to enhance Nigerian banking operations vis-à-vis banks employees’ productivity cum general performance. Consequent upon this, the researcher recommended the following: 1. Government through CBN should provide adequate security

measures towards the various e-banking products in Nigeria. This will aid in reducing the rate of fraud and forgery in the banking industry and encourage investors which in turn will increase the banks’ cash inflow cum use of available fund for granting of credit facilities.

2. Banks should regularly train their workers who in turn will educate their customers on electronic banking system and its products. This


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3. will enhance the indepth understanding of the products and the way they are being used. Hence more customers cum deposits will be attracted. Besides this, the apex bank should also organize seminars, workshops, symposia and public lectures to bank customers and general public on the application of information and technology cum e-banking system. This will aid to increase the use of various e-banking products in Nigeria especially in this era of cashless economy drive.

4. Banks should in addition to the storage of information in the computer, maintain the manual filing of all the relevant documentary evidence of information in their financial statement so as to avoid loss of audit trail, with an understanding that e-banking in Nigeria is an “add process” and not an “or process”.

References Agboola, A.A. (2001) ‘Impact of Electronic Banking on Customer services in Lagos, Nigeria’, In Ife

Journal of Economics and Finance. Vol., 5, Nos. 1 &2. Agboola, A.A. (2006) ‘Electronic Payment System and Tele-banking Services in Nigeria’, In Journal of

Internet Banking and Commerce, Vol. 11, No. 3, Available from http://www.arraydev.com/commerce/jibc (Accessed 20 August 2011).

Agnes, C.E. (2000) ‘Electronic Baking in Nigeria: Concept, Policy Issues and Supervisory Framework’ In

Bullion publication of the Central Bank of Nigeria. Volume 24.No. 4 Anyaoha, C. J. (2010) The effect of Electronic Banking on Accounting information system in Nigerian

Banks, Unpublished B.Sc thesis. Bank of International Settlement (1996) Implications for Central bank on the development of Electronic

Money, BIS Balse Carys, C. (1995) Business Technology, 2nd ed, New York, Heinemann. Central Bank of Nigeria (2010) Annual Report and Statement of Accounts, Available from

www.cenbank.org (Accessed 12 February 2012). Central Bank of Nigeria (2003) Guidelines on Electronic Banking in Nigeria, Available from

http://www.cenbank.org/OUT/PUBLICATIONS/BSD/2003/E-BANKING . PDF. (Accessed 24 August 2011).

Dogarawa, A. B. (2005) The impact of E-banking on customer satisfaction. Zaria, Department of

Accounting, Ahmadu Bello University. Ezeoha, A.E. (2005) Regulatory Internet Banking in Nigeria: Problems and Challenges-Part 1,

Available from http:/www.arraydev.com/commerce/jibc (Accessed 18 March 2010). Haundin, A. (2007) ‘Internet Banking Adoption among Young Intellectuals’ Vol. 1 12, No. 3, Available

from http://www.arraydev.com/commerce/jibc/ (Accessed 20 May 2011). Iloboya, O. J. (2005) ‘An Empirical Assessment of the operational Efficiency of Electronic Banking in

Nigeria’ In Bayero International Journal of Accounting Research. Vol. 1, No. 2 Irechukwu, G. (2000) ‘Enhancing the Performance of Banking Operations Through Appropriate

Information Technology’ In Information Technology in Nigeria Banking Industry, Ibadan, Spectrum Books.


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Iyabi, D. P. (1997) Smart card in Nigerian Banking – All states Trust Bank Practical Experience. Lagos,

FITC most shop for Top Exercise. Laudon, D.P. and Laudon, J.P. (1991) Business Information System: A Problem Solving Approach, New

York, HBJ, College Publishers. Ondunfa, A. (2000) ‘The future of Banking in Nigeria’, In Information Systems Group, Lagos, Philip

Consulting Limited. Onwumere, J.U.J. (2009) Business and Economic Research Methods, Enugu, Vougasen Limited. Osabuohien, E.S.C (2005) ‘ICT and Nigerian Banks Reforms: Analysis of Anticipated Impact in Selected

Banks’, In Global Journal of Business Research, Vol. 2, No. 2. Osuala, E.C. (1982) Introduction to Research Methodology, Onitsha, Africana FEP, Publishers. Oyesanya, F. (2007) Review of Central Bank Guideline for Electronic Banking, Available from

http://www.centbank.org/out/publication/bsd/2003/e-banking PDF (Accessed 15 August 2010). Salawu, R. O. and Salawu, M. K. (2007) The emergency of internet banking in Nigeria: An appraisal,

Available from http://scialet.net/fulltext/?doi=itj.2007.490.496 (Accessed 11 August 2010).

APPENDIX A

I. The Volume of different E-Banking Products used in Nigeria in 2010 E-banking products (e-payment segments) Volume (Millions) in 2010 ATM 186.2 Web (Internet) banking 7.2 POS terminals 1.1 Mobile banking 1.2 Total 195.7

Source: Extracted from CBN Annual Report and Statement of Account, 2010 II. The Volume of total e-banking products utilized in Nigeria for Years 2005-2010 Period Volume of e-banking products utilized

(millions) 2005 48.7 2006 50.6


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2007 54.3 2008 66.1 2009 114.6 2010 195.7

Source: Extracted from CBN Annual Report and Statement of Account, 2007, 2009 and 2010 III. Savings and time deposit with Nigerian Commercial Banks for the Years 2005 - 2010 Period Savings and time deposit with Nigerian Commercial Banks

(N’ million) 2005 1,316,957.4 2006 1,739,636.9 2007 2,693,554.3 2008 4,118,172.8 2009 5,763,511.2 2010 5,924,182.3

Source: Extracted from Savings Statistics (Cumulative) in CBN Annual Report 2009 and 2010 IV. Total Credit Facilities Granted by Nigerian Commercial Banks Between 2005 and 2010 Period Total Credit facilities Granted by Nigerian Commercial Banks (N’ million) 2005 1,899,346.4 2006 2,524,297.9 2007 4,813,488.8 2008 7,806,751.4 2009 9,667,876.7 2010 9,921,678.3

Source: Extracted from Deposit Money Banks’ Returns in CBN Annual Report 2009 and 2010. V. Fraud and Forgery in banking industry between years 2005 – 2010

Period Number of reported cases of attempted or successful fraud and forgery

2005 1,026 2006 1,253


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2007 1,124 2008 1,974 2009 3,852 2010 5,960

Source: Extracted from CBN Annual Report and Statement of Account, 2006, 2008 and 2010


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Shelter for All: An Appraisal of Implementation of the National Housing Policy

Okafor Obiefuna .A., Ph.D Hospitality Management Federal Polytechnic, Oko

Abstract Based on the operation of Chinese hotels from 1991-2000, this paper analyzes problems facing the Chinese lodging industry and proposes solutions, Chinese hotels performance, in terms of both revenue and profit, has been deteriorating since the early 1990’s. While overcapacity has undoubtedly contributed to the poor performance, declining operation scale and low efficiency on the part of domestically-owned hotels have aggravated the situation. To improve its operation results, the Chinese lodging industry should grow prudently, tap into the domestic tourist market, close the efficiency gap between domestic-ownership and foreign-ownership hotels and pursue economic of scale. Introduction It has been over 25 years since China opened its door to massive international tourism in 1978. Up to 2002, china’s international tourism experienced tremendous growth. According to the National Tourism Administration of the people’s Republic of China (NTAPRC, 2001), in 1978, China played host to 716,000 international tourists, and tourism receipts totaled US$263 million. As reported by United Morning News (2002), in 2001, China welcomed 33.2 million tourist who brought in US$17.8 billion. China is emerging as a major player in today’s international tourism arena, ranking fifth in the world in terms of both tourist arrivals and tourism receipts in 2001. In particular, China’s international tourism made impressive progress in the last decade. During the ten year period 1991 – 2000, tourist arrivals increased at an average annual rate of 10.7 percent, while tourism receipts grew even faster, at 21.6 percent annually (NTAPRC, 2001). Operation results of the Chinese lodging industry from 1991 to 2000, however, were less encouraging. As shown in Table I, average daily rate (ADR), revenue per available room (REVPAR) and net income per available from (NIPAR) have been on a downward trend since the mid-1990s and the lodging industry was operating in the red three years in a row from 1998 – 2000. The deteriorating operating results of the Chinese lodging industry deserves a thorough examination. This study analyzes the financial performance of China’s lodging industry in the last decade. Focusing on the industry’s revenue efficiency and profitability in 2000, this paper attempts to identify major problems facing the industry and recommend solutions. The findings of this study may carry important implications for Chinese tourism administrators, hotel developers and hotel operators regarding the growth and management of the lodging industry. China aims to become the world’s top destination country by 2010 (United Morning News, 2002). Hotel or lodging structures are among the most important components of the tourism infrastructure (Mclntosh, 1995). A well-operated hotel industry is crucial to the success of China’s tourism development Hotel Performance: ten-year overview According to NTAPRC (2001), total hotel rooms increased from 321,116 in 1991 to 948,185 in 2000. While room capacity almost tripled during the ten-year period, the lodging industry’s operation results steadily deteriorated in terms of both revenue efficiency and profitability. Table I shows that occupancy, ADR and REVPAR, three indicators commonly used to measure the revenue-producing capability of hotels, all peaked in 1993, at 67.7 percent, US$33.29 and US$22.54, respectively but have been on a downward trend since then. Hotel occupancy fell steadily from 1993 to its lowest level, 51.7 percent, in 1998. In 1999 and 2000, the occupancy improved but was still far below the level of 1993. On the other


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hand, the ADR and REVPAR have been steadily declining since 1993, bottoming at US$23.73 and US$13.47 in 2000, respectively. As shown in Table I, parallel with the decline of the three revenue indicators, hotel profitability also deteriorated. The NIPAR of the Chinese lodging industry climaxed at US$2.13 per day in 1993 and then dropped steadily to its worst level, - US$0.9, in 1999. In 2000, the industry managed to improve its NIPAR but still suffered a net loss of US$0.42 per room per day. Weakening revenue and declining profitability have characterized Chinese hotels since 1993. Worsening hotel operations necessitate a close scrutiny of the Chinese lodging industry. To stop performance deterioration of the industry problems should be identified and solutions need to be provided. Problem one: overcapacity Overcapacity or oversupply of hotel rooms, manifested in low occupancy, has been haunting the Chinese lodging industry in recent years. As indicated in Table I, NIPAR went down in tandem with the occupancy. An examination of the correlation between NIPAR and occupancy shows that the coefficient of correlation between the two, 0.765, was statistically significant. Room revenue is the major source of a hotel’s profit. The highly significant and positive association between NIPAR and occupancy suggests that low occupancy is to blame, at least partially, for the deteriorating NIPAR over the time. The lowest occupancy in 1998 could also be due to the 1997-1998 Asian financial crises. Occupancy managed to rise in 1999 and 2000. The post-1998 rise in occupancy, however, was achieved at the cost of lower ADR in 1999 and 2000 (see table 1), implying that hotels had to sell rooms cheaper to rise occupancy. The net effect of the rising occupancy and failing ADR was a further decline in REVPAR in the two years. By 2000, the average REVPAR dropped to its ten-year low at US$13.47. Obviously, the rising occupancy in 1999 and 2000 failed to help improve Chinese hotels’ revenue efficiency. Overcapacity has not only caused poor profitability for the Chinese hotel industry but also hurt hotel property values. Commenting on hotel valuation in Beijing and Shanghai, Keulen and Human (1999) predicted that the opening of new hotels in the late 1990s would further increase the pressure from an already saturated lodging market and impose a negative impact on hotel values that were unlikely to reach the 1996 level in the foreseeable future. Problem two: efficiency disparity There is an obvious efficiency disparity between two types of hotels, those domestically-owned and those owned at least partially by foreign proprietors, including investors from Hong Kong, Nacao and Taiwan. As shown in Table II, domestic-ownership hotels far underperformed foreign-ownership hotels in terms of occupancy, ADR and REVPAR. In 2000, domestic-ownership hotels realized a REVPAR of US$117.71, less than half of foreign-ownership counterparts in revenue efficiency. In terms of profitability, the gap between the two types of hotels was even wider. Table II shows that the net loss per room for domestic-ownership hotels, or their NIPAR of –US$0.47, was about five times greater than that of foreign-ownership hotels, -US$26,854, in contrast with foreign-ownership hotels, US$65,994 (see Table II). Therefore, the ownership hotels. Despite their lower depreciation cost, domestic-ownership hotels still had a loss five times greater than that of foreign-ownership hotels, suggestive of domestic ownership hotels’ lower efficiency in controlling other costs. In 2000, the domestic-ownership hotel sector accounted for 92 percent of hotels and 86 percent of rooms of the Chinese lodging industry (NTAPRC, 2001). Domestic-ownership hotels’ lower efficiency in generating revenue and creating profits undoubtedly had a dominant impact on the less desirable performance of the entire industry. While overcapacity has created tough market conditions for the


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industry, lower efficiency of the domestic-ownership sector should have further weakened its overall performance. Problem three: declining operation scale Noticeably, the declining NIPAR of China’s lodging industry was associated with decreasing hotel size over time. Table III shows a trend of declining hotel size, measured by average number of rooms per hotel, since 1991. On average, a hotel in China had 151 rooms in 1991. By 2000, average hotel size had declined to only 90 rooms. Evidently, many small hotels built in recent years have brought down the average size. As in other industries, economies of scale exist in the hotel industry (Cullen, 1997). The decreasing operation scale of Chinese hotels may explain, at least in part, the decline in NPIPAR of Chinese hotels. As indicated in the notes of table III, there was a statistically significant and positive correlation between hotel size and NIPAR, suggesting the NIPAR and hotel size moved in the same direction. Decreasing operation scale was likely a contributing factor to the falling NIPAR. Solution one: prudent growth The above analysis identifies overcapacity, low management efficiency of domestic-ownership hotels and declining operation scale as problems facing the Chinese lodging industry. To overcome these problems, four solutions are proposed. The first one is a policy recommendation for Chinese tourism administrators as well as an investment advice for hotel developers. Given today’s saturated lodging market in China, tourism administrators should establish a guideline of prudent growth, rather than aggressive expansion, for the Chinese lodging industry. Tourism administrators must lighten the issuance of permits for new hotel constructions. During the ten-year period 1991 – 2000, the industry’s capacity was increasing at an average annual rate of 19.36 percent by number of hotels and 12.78 percent in terms of rooms, compared with the 1.7 percent average annual growth of international tourist arrivals (NTAPRC, 2001). The increase in hotel rooms far outpaced the increase in tourist arrivals, inevitably leading to an overcapacity in the hotel industry. To reduce overcapacity, the hotel industry needs to put a brake on new hotel constructions and let the demand catch up with the supply. Making full use of existing capacity is the key to raising occupancy, ADR and REVPAR. The growth of hotel capacity must be kept in line with the increase in tourist arrivals. Prudent growth also means prudent decision making in new hotel constructions. For hotel developers, decisions on new hotel constructions must be made based on thorough feasibility studies that include in-depth market analysis and rigorous capital budgeting. A hotel project with negative net present values (NPV) should never be accepted, no matter how lucrative it may appear in the short term. Many researchers and analysts have warned China’s lodging industry of the oversupply since mid-1990s (Gu, 1999; Zhang et al., 1999; Keulen and Human, 1999; Yu, 1998; Sylvester, 1996). The Chinese government even announced restrictions on new hotel constructions in 1999 (Chinese News Agency, 1999). Unfortunately, those warnings and restrictions have largely been ignored by hotel developers. In 1998, overcapacity was at its worst level, as demonstrated by the industry’s decade-low occupancy of 51.7 percent (see Table I). Regardless of the highly saturated lodging market, 1,253 and 3,446 new hotels were added to the industry in 1999 and 2000, representing 22 percent and 49 percent annual increases, respectively. The drastic increase in number of hotels during 1999 – 2000 reflects Chinese hotel developers’ disregard for the market conditions. As Zhang et al, (1999) point out, in China, hotel developers rarely conduct serious market analysis prior to building new hotels. To avoid overcapacity in future. Chinese hotel developers must learn how to conduct market analysis, feasibility studies and capital budgeting. Decision on new hotel constructions should be based on thorough market analysis and comprehensive feasibility studies, rather than developers’ intuitions. Only hotel projects with positive NPV can be accepted.


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Solution two: tapping into the domestic market Tapping into the domestic tourism market is another solution to overcapacity. The fast and steady growth of China’s economy in recent years has resulted in a drastic increase in the number of domestic tourists and tourism spending. According to NTAPRC 92001), in 2000, domestic tourists totaled 744 million and touristm spending reached US$38.4 billion, more than double China’s international tourism receipts of US$16.2 billion in the same year. In particular, average spending per domestic traveler increased from US$9.16 in 1992 to US$51.61 in 2000. Chinese hotel operators should capitalize on the growing domestic tourism market to raise occupancy. Nevertheless, for domestic tourists with an average spending of only US$51.61 per trip, hotel rooms with an average ADR of US$23.73 are far beyond what they can afford. To attract domestic tourists, hotels have to lower room rates. Among various hotels, low-star and non-star hotels, rather than high-star hotels, can be more flexible in lowering room rates to attract budget-constrained domestic tourists. Therefore, in terms of pricing, low-end hotels are better positioned for cashing in on the booming domestic tourism market. Low-end hotel operators should lose no time to tap into the market for new sources of customers. Lowering room rates, however, is not the best means for a hotel to gain a footing in the domestic tourism market. While lower room rates may help raise occupancy, they do not warrant a higher REVPAR, Target ing high travel-spending segments of domestic tourists could be a better way of exploring the domestic market. Convention and business travelers are the two segments with the highest spending among domestic tourists. In 2000, per person expenditures for convention and business travelers were US$202.58 and $165.82, respectively (NTAPRC, 2001), much higher than the average spending of US$51.61 per domestic tourist. These two groups should be the premium segments when hotels target the domestic market. Wining over domestic convention and business travelers with higher travel budgets will help raise not only occupancy but also REVPAR and profits. Launching marketing campaigns in cities with higher disposable income can help sell rooms among domestic tourists more effectively. NTAPRC (2001) statistics show that average expenditure of a domestic sightseeing tourist and a vacationer were US$88.23 and US$58.45, respectively in 2000. However, a sightseeing tourist from Shenzhen, a wealthy city in southern China, spent US$264.14 per trip and a vacationer from Xiamen, a coastal city in eastern China, spent US$330.71 per vacation during the same year. Hotel operators should target cities with high disposable incomes, especially those in eastern and southeastern coastal regions, when promoting themselves. Collaborating with travel agencies to advertise hotel services and products to residents in those regions may bring in groups of wealthy domestic tourists and substantially improve hotel operation results. As china’s economy and people’s disposable income continue to grow rapidly, more and more domestic tourists will be able to afford hotels initially designed for international tourists. For many Chinese hotels, it is high time to modify their foreign tourists-oriented business format to a system that accommodates both foreign and domestic tourists. Services and products suitable for domestic tourists should be developed to attract an increasing number of countrymen. Solution Three: Closing Efficiency Gap Domestic-ownership hotels comprise roughly 90 percent of the accommodation capacity of China’s lodging industry. Eliminating the efficiency gap between domestic-ownership hotels and those owned by foreigners can substantially boost the performance of the entire industry. The lower occupancy, ADR and REVPAR of domestic-ownership hotels, as shown in Table II, imply that managers in this sector may fall behind their counterparts in the foreign-ownership sector in marketing and facility management. The even wider gap in NIPAR between the two sectors is suggestive of deficiency in human resource management and financial control on the part of domestic-ownership hotels. One way for domestically owned hotels to


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catch up with their foreign rivals is to hire reputable foreign hotel management companies to manage properties of acquired international hotel franchises. Not many domestic-ownership hotels in China have hired foreign managers or obtained foreign hotel franchises. To eliminate management deficiency, domestic-ownership hotels should actively seek technical and managerial assistance from abroad. Importing management expertise may help domestically owned hotels to close the efficiency gap quickly. Hiring management companies or purchasing franchises, however, involves substantial fees. High fees could dampen the NIPAR for owners of domestic-ownership hotels. Therefore, relying on foreign management companies or franchisers may not be the optimal approach to eliminating performance disparity. For a thorough solution to the efficiency gap, the domestic-ownership hotel sector needs to create a world-class management team of its own. Seeking collaboration from renowned hotel management education programs to train hotel managers may help the domestic-ownership sector to reach this goal. The School of Hotel and Tourism Management at The Hong Kong Polytechnic University has a Master of Science Program specially designed for training top-level hotel managers in China. Intensive courses in hotel marketing, human resources, information technology, and financial management are offered in China during certain times of the year. The program successfully graduated its first group of students in summer 2002 (Horizons HTM Magazine, 2002). To lift its hotel management efficiency, China needs to bring in more advanced hotel training programs from abroad. Solution four: economies of scale The deteriorating performance of the Chinese hotel industry is closely correlated with its declining operation scale. Lack of economies of scale is another major problem facing the industry. According to Cullen (1997), economies of scale in hotel operations can be achieved in purchasing and production, management and personnel training, marketing and finance. Large hotels enjoy lower unit purchasing and production costs. Standardized training in large hotels can help reduce the cost of human resources. In terms of marketing, a large hotel chain’s national marketing should be cheaper per hotel, since market research and promotion can cover more than one hotel at a time without a significant increase in cost. Cross-marketing of a large hotel chain will further lower the cost of marketing. Financially, a large hotel can raise capital more easily at lower cost. When using debt financing, large hotels usually enjoy lower interest rates due to lower risk associated with large operations. Christiansen (2001) suggests that steep economies of scale exist when there are high fixed versus variable costs in business models. Large hotels can allocated fixed costs over greater volumes, thus reducing unit fixed cost. Empirically, Lin and Liu (2000) examined the relationship between costs and operating scale of tourist hotels in Taiwan. Their results support the existence of economies of scale in hotel operations. To improve hotel operation results, China’s hotel developers should consider building more large hotels than small ones. Tourism administrations at various levels should guide the hotel industry toward building large hotels. The trend of the declining operation scale must be reversed. Building numerous small hotels will further hurt the industry’s performance. If new hotel constructions are necessary for a destination economies of scale must be given full consideration. It seems that building large low-end hotels with 500 brooms or more would be a right business strategy for hotel developers in China today, given current Chinese market conditions. In 2000, hotels with at least 500 rooms achieved the highest occupancy and revenue to fixed assets ratio in China (NTAPRC, 2001). Large low-end hotels have two advantages. The first is their market advantage. Those hotels can afford to offer low-price rooms to domestic tourists with limited travel budgets, thus winning a substantial share of the growing domestic market and achieving high occupancy. Second, large-scale operation can create economies of scale in purchasing and production, management and personnel training, marketing and finance, as proposed by Cullen (1997). The operational advantage would enable large hotels to realize better profitability.


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For existing hotels, consolidation via mergers and acquisitions could be considered as a means of achieving economies of scale. Consolidating small hotels into a large hotel chain will help reduce competition among hotels and, in the mean time, realize economies of scale. While reduced competition is a plus factor for ADR and REVPAR, a large-chain operation can lower operation and financing costs, hence improving the NIPAR. For hotels not interested in mergers and acquisitions, an operating consortium may be a good alternative for achieving economies of scale. Within a hotel consortium, each hotel maintains its identity as an independent firm but forms close partnerships with other hotels in purchasing, room reservation, training and marketing. A hotel consortium can also help lower competition, thus benefiting hotel ADR and REVPAR. Summary The financial performance of the Chinese lodging industry has been declining since 1993. This paper has identified three major problems that have been hurting the industry’s performance, namely overcapacity, low efficiency on the part of the domestic-ownership hotels, and declining operation scale. The four proposed actions for solving those problems are summarized as follows: 1. To improve its operations results, the Chinese lodging industry must first of all put a brake off

rampant new hotel constructions and let the demand catch up with the supply. While Chinese tourism administrators should encourage the lodging industry to adopt a more prudent growth strategy, hotel developers must make their expansion decision based on thorough market analysis and comprehensive feasibility studies.

2. Chinese hotel operators should capitalize on the booming domestic tourism market for new sources of customers. It is imperative that they change their operations from a foreign tourist-oriented business format to an accommodation system that suits both foreign and domestic tourists. In this regard, low-end hotels have a competitive advantage over high-end hotels and should start to capitalize on the growing domestic market as early as possible. Hotel operators should also target selective segments of the domestic tourism market for better occupancy and profits.

3. There is an urgent need for managers of domestically owned hotels to enhance their management skills. To catch up with foreign-ownership hotels, domestically-owned hotels may hire foreign hotel management companies to manage properties or acquire international hotel franchises. To solve the efficiency problem thoroughly, however, China needs to create a world-class management team of its own. Collaborating with renowned hotel education programs may be a viable way to achieve this goal. Chinese tourism administrations at various levels should encourage and facilitate collaborations between hotel operators and well-established international hotel education programs.

4. The Chinese lodging industry should raise its operation scale. In destinations where new hotels are needed, building large low-end hotels may be a good investment strategy, given the current lodging market, conditions. In saturated lodging markets, consolidation via mergers and acquisitions or hotel consortia should be pursued to reduce competition and realize economies of scale.

Prudent growth, a strategy of tapping the growing domestic tourism market, improved management efficiency of the domestic-ownership hotels and economies of scale should help the Chinese lodging industry to overcome the difficulties it has encountered since the late 1990s and become profitable again. A profitable lodging industry will certainly contribute to the fast development of China’s tourism.

Table I China’s tourist hotel performance: 1991 – 2000

Year Occupancy (%)

ADR (US$)

REVPAR (US$)

NIPAR (US$)


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1991 61.4 NA NA NA 1992 66.2 22.64 14.99 0.62 1993 67.7 33.29 22.54 2.13 1994 62.2 32.64 20.30 1.99 1995 58.1 34.73 20.18 1.31 1996 55.3 33.25 18.39 0.84 1997 53.8 32.21 17.33 0.17 1998 51.7 29.68 15.34 -0.89 1999 53.4 26.53 4.17 -0.90 2000 55.9 23.73 -3.47 -0.42

Notes: ADR = average daily rate, REVPAR = revenue per available room, NIPAR = net income per available room, converted to US$ using the exchange rate between Chinese RMB and US$ of the relevant year; the calculated coefficient of correlation between occupancy and NIPAR = 0.765 (significant at the 0.01 level) ad ADR and REVPAR were derived based on the total hotel revenue and the average room revenue percentage of hotels in major tourism cities.


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Source: NTAPRC (1992 – 2001) Table I China’s tourist hotel performance: 1991 – 2000 Table II Hotel performance by ownership in 2000

All hotels

Domestic ownership

Foreign ownership

Fixed assets per room (US$) 32,287 26,854 65,994 Occupancy (%) 55.9 54.9 61.6 ADR (US$) 23.73 21.45 39.86 REVPAR (US$) 13.47 11.71 24.37 NIPAR (US$) -0.42 -0.47 -0.10

Notes: ADR = average rate, REVPAR = revenue per available room, NIPAR = net income per available room; fiexed asserts, ADR, REVPAR and NIPAR were converted to US$ using the average exchange rate between Chinese RMB and US$ of 2000 and ADR and REVPAR were derived based on the total hotel revenue and the average room revenue percentage of hotels in major tourism cities. Source: NTAPRC (2001)

Table II Hotel performance by ownership in 2000

Table III Average hotel size: 1999 – 2000

Year Numbr of hotels Number of rooms Average size NIPAR

(US$) 1991 2,130 321,116 151 NA 1992 2,354 351,044 149 0.62 1993 2,552 386,401 151 2.13 1994 2,995 406,280 136 1.99 1995 3,720 486,114 131 1.31 1996 4,418 593,696 134 0.84 1997 5,201 701,736 135 0.17 1998 5,782 764,797 132 -0.90 1999 7,035 889,430 126 -0.90 2000 10,481 948,185 90 -0.41

Notes: Average size = average number of rooms per hotel; NIPAR = net income per available room, converted to US$ using the average exchange rate between Chinese RMB and US$ of the relevant year and the calculated coefficient correlation between average size and NIPAR = 0.517; significant at the 0.1 level. Source NTAPRC (1992 – 2001) Table III Average hotel size: 19991 – 2000 References (2002). “China has become the fifth largest tourism destination with tourism receipts totaling US$17.8

billion in 2001”, United Morning News, www.zaobao.com/special/newspapers/2002/08/cs210802.html.

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Christiansen, C. M. (2001), “The past and future of competitive advantage”, MIT Sloan Management Review, Vol. 12 No.2 pp.105 – 9.

Cullen, P. (1997), Economics for Hospitality Management, International Thomson Business Press,

Oxford. Gu, Z. (1999), “Comparative analysis of the performance of the Chinese hotel industry in 1997”,

Proceedings of the 5th Asia Pacific Tourism Association Conference, Vol. 2 pp.554 – 61. Horizons HTM Magazine (2002), “Master congratulations”, Horizons HTM Magazine, Vol. 2 No.2,

pp.18. Keulen, E. V., Human, C. (1999), The Asian Hotel Valuation Index, HVS International, Singapore, No.

January. Lin, B., Liu, H. (2000), “A study of economies of scale and economies of scope in Taiwan international

tourist hotels”, Asia Pacific Journal of Tourism Research, Vol. 5 No.2, pp 21 – 8. Mcintosh, R. W., Goeldner, C. R., Ritchie, J. R. (1995), Tourism Principles, Practices, Philosophies, 7th

ed., John Wiley & Sons, New York, NY. NTAPRC (1992 – 2001), The Yearbook of China Tourism Statistics, National Tourism Administration of

the People’s Republic of China, Beijing. Sylvester, K. A. (1996) “From Beijing to Beihai, hotels are multiplying in China”. The China business

Review, Vol.23 No. 6, pp 42 – 5. Yu, L. (1998), “China’s hotel industry: assessment and prospects”, Journal of Vacation Marketing, Vol.

4. No 4, pp 368-80. Zhang, L., Cai, L., Bal, B. (1999), “Troubling Scene in China’s tourism industry-Challenges for state-run

hotels”, proceeding of the Asia Pacific Tourism Association Conference, Vol. s pp 468-75.


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Globalisation: The Nigerian Experience

Josephine Ivoma Orga Department of Business Administration, Faculty of Management Science

Enugu State University of Science and Technology Enugu, Nigeria

Abstract The world has witnessed increased interdependence in the last two decades, thanks to globalization. The main driving forces of this process are technology, policy and competition and it subordinates domestic economies to global market conditions and practices. Developed nations are the beneficiaries of globalization as their share of world trade and finance has been expanded at the expense of developing countries. Thus, the process exacerbates inequality between the world’s regions and poverty in the developing world. Nigeria has not benefited enough from globalization due to her largely dependence on crude oil, inability to attract increased foreign investments and her huge indebtedness. But globalization can be domesticated in the country through diversification of exports, debt reduction and expanded development cooperation with other countries. The Nigerian state also needs to be strengthened as a bulwark against the dictates of foreign capital. All this accomplished, Nigeria could join the league of nations in enjoying the benefits of globalization. This paper also examines the concept of globalisation and the place of Nigeria in the web of international relationships involving trade in goods and services and financial intermediation. The paper identifies two major categories ofglobalisation. These are the integration of goods and services markets across national boundaries and the integration of financial markets across the globe. The paper concludes that Nigeria has not benefitted enough from globalisation owing to the undue dependence on crude oil exports, low manufacturing exports and the under-development of the domestic ,financiuI markets. The paper identifies a number of prospects and challenges of globalisation. Some of' the prospects include, increased specialisation and efficiency, economies of scale in production and increased global awareness. The challenges include: the design of appropriate .framework to ensure that domestic monetary management is not impaired, and that the domestic economy is not unduly destabilised owing to adverse developments in other parts of the world. The paper concludes that for Nigeria lo benefit maximally from globalisation and escape-from being marginalised, accountability and transparency must be enthroned through good governance and the application of market-friendly policies. Introduction Globalization was defined by Giddens (1990) as the ‘intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring miles away and vice versa’. This definition embodies some interrelated ideas, of “accelerating interdependence” (Ohmae, 1989), of “action at a distance” (Giddens, 1990) and of “time–space compression” (Harvey, 1989). ‘Accelerating interdependence’ is understood to be the growing intensity of international enmeshment among national economies and societies, such that developments in one country impacts directly on another country. ‘Time space compression’ refers to the manner in which globalization appears to shrink geographical distance and time. In a world of near instantaneous communication, distance and time no longer seem to be major constraints on patterns of human organization and interaction (Held, McGraw, Goldbat and Perraton, 1999). Globalization is leading to homogenization and convergence in organizations’ strategies, structures and processes and in consumer choice, along with a new global division of labor that widens the income gap between the ‘haves’ and ‘have nots’ both within and between societies. Today’s world is organized by accelerating globalization, ‘which is strengthening the dominance of a world capitalist economic system , supplanting the primacy of the nation state with transnational corporations and organizations, and eroding local cultures and traditions through a global culture (Kellner, 1989). The emergent global economy and culture can be described as a ‘network society’ which


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is grounded in new communications and information technology (Castell, 1996, 1997, 1998). Some view globalization as the continuation of modernization and a force of progress, wealth, freedom, democracy and happiness. Others view it as another form of imposition. Its critiques view globalization as harmful and perceive it as a force that brings about increased domination and control by wealthier and overdeveloped nations over the poor and underdeveloped countries. They feel that it widens the gap between the ‘haves’ and ‘have nots’ (Castell, 1996). From the social theory perspective, globalization involves the flows of commodities, capital, technology, ideas, forms of culture and people across national boundaries via a global networked society (Castells, 1996, 1997, 1998). The transmutations of technology and capital, work together to create a new globalized and interconnected world. (Castell, 1998) A technological revolution involving the creation of computerized network of communication, transportation and exchange is the presupposition of a globalized economy, along with the extension of a world capitalist market system that is absorbing evermore areas of the world and spheres of production, exchange and consumption. The technological revolution presupposes global computerized networks and the free movement of goods, information and people across national boundaries. Hence the internet and global computer networks make globalization possible, by producing a technological infrastructure for the global economy. Globalization has an effect on employment patterns worldwide. It has contributed to a great deal of outsourcing which is one of the greatest organizational and industry structure shifts that changes the way business operates (Drucker, 1998). Globalization is also seen as changing organizational structures where expenses can move up or down as the business climate dictates (Garr, 2001). For employees the trend toward outsourcing has been thought to result in a loss of fixed employment opportunities as a consequence of firms seeking to use cheap labor from countries like China, Mexico and even Africa. The globalized economies have also had their effect on reward systems, migration, and on job security and each of these are discussed in the below. Globalisation is the integration of national economies through trade and financial interaction. A sub-set of globalization which has become very pervasive and, in some cases, destabilising is financial markets integration across the globe. The rapid flow of goods, services and capital, especially the latter, has made national controls on these aggregates less effective without consideration for countervailing measures that other nations could impose in the absence of coordinated responses. CBN ECONOMIC & FlNANCIAL REVIEW. VOL. 38 No. 2 The rapid advance in technology and telecommunication has reduced the cost associated with foreign portfolio and direct investment. Without moving from one location to another, a foreign investor could deploy funds across the globe with the aid of telecommunication facilities. The ease with which capital can be re-deployed to take advantage of better returns has often proved adverse for the economies experiencing the outflow. Reductions in transport and communication costs, capital account opening, financial market deregulation and privatization of state enterprises have combined to create a favourable environment for increased capital mobility (Fischer, 1998: 164). The globalization of financial markets has proved complex to understand because the phenomenon encompasses both product and capital markets. The integration of financial markets has exerted considerable constraints on the conduct and effectiveness of macroeconomic policies in recent times, as depicted by the financial crisis in South East Asia in 1997. The rapid advance in globalization, especially after the end of the cold war has tended to re-enact the laissez-faire doctrine that was prevalent before the ideological polarization of the world. The fact that globalization could mean many' things to different people, depending on where they fit into in the current dispensation, makes it imperative to explore the implicationsof the phenomenon for domestic macroeconomic management. The extent to which the effectiveness of domestic economic policy can be compromised if adequate consideration is not given to countervailing responses of other nations is a major area of inquiry of this paper. This is more important as the interdependence between nations is an indication that growth could be undermined if nations build protective walls around their economies. Stabilizations offinance and financial risk have been attributed to an increase in the technical capabilities for engaging in precision finance, the integration of national financial markets, the blurring of distinctions between financial institutions and the activities of the markets they engage in, and the emergence of the global bank and the international financial conglomerate, each providing a mix of financial products and


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services in a broad range of markets and countries. Financial globalization has resulted in two distinct developments in global finance. In the first place, traditional banking institutions have evolved into financial services firms with new accounts. Additionally, non-bank financial institutions now actively compete with banks both on asset and liabilities sides of the balance sheet thereby blurring the distinction between banks and non-bank financial institutions. Also, the rapid growth in the share of other earning assets in total assets and relative growth in off-balance sheet items have been unprecedented (IMF, 1998: 180- 182). CBN ECONOMIC & FlNANCIAL REVIEW. VOL.38 No. 2 The Concept of Globalisation Globalisation refers to the process of the intensification of economic, political, social and cultural relations across international boundaries. It is principally aimed at the transcendental homogenization of political and socio-economic theory across the globe. It is equally aimed at “making global being present worldwide at the world stage or global arena”. It deals with the “increasing breakdown of trade barriers and the increasing integration of World market (Fafowora, 1998:5). Ohuabunwa, (1999: 20) opines that globalisation can be seen as an evolution which is systematically restructuring interactive phases among nations by breaking down barriers in the areas of culture, commerce, communication and several other fields of endeavour. This is evidenced from its push of free-market economies, liberal democracy, good governance, gender equality and environmental sustainability among other holistic values for the people of the member states. The process of globalisation is impelled by the series of cumulative and conjunctural crises in the international division of labour and the global distribution of economic and political power; in global finance, in the functioning of national states and in the decline of the Keynesian welfare state and the established social contact between labour and government. The hallmark of free-market capitalism has been aided among other factors by the sudden, though expected changes within the physiology of global political community in recent times. Because of the foregoing, globalisation could be correctly defined from the institutional perspective as the spread of capitalism (MacEwan, 1990). However, it is germane to adumbrate that the collapse of the Eastern block in the late 80s and early 90s led to the emergence and ascendancy of a global economy that is primarily structured and governed by the interests of Western countries, thus, facilitating the integration of most economies into the global capitalist economy. With the end of the Eastern Europe in the early 90s, capitalism as an economic system now dominates the globe more than it had been at any time in its history. Even, China, by far the largest non-capitalist economy, has undergone dramatic changes in its international economic policy orientation, and, is today the recipient of almost one-half of all foreign direct investments that go into developing nations - this is a country that essentially blocked all foreign investments until the 1980s (United Nations, 1995b). Despite this analysis of globalisation in terms of capital inflows and trade investment, it is important to state that it has negative consequences to the governments and people of the African continent. Globalisation, according to Ohiorhenuan (Ibid), is the broadening and deepening linkages of national economies into a worldwide market for goods and services, especially capital. As Tandon (1998B: 2) once opines, globalisation seeks to remove all national barriers to the free movement of international capital and this process is accelerated and facilitated by the supersonic transformation in information technology. It is principally aimed at the universal homogenisation of ideas, cultures, values and even life styles (Ohiorhenuan 1998: 6) as well as, at the villagization of the world. Expanding this argument, Gordimer (1998), argues, that it is basically concerned with the expansion of trade over the oceans and airspace, beyond traditional alliances which were restricted by old political spheres of influence. Thus, it presupposes the “making or remaking” of the world (Diagne and Ossebi. 1996) by creating “a basic change in the way in which major actors think and operate across the globe” (Biersterker, 1998). In other words, it connotes “the rapid expansion through giant multinational companies of capitalism and their “blood sapping principles” of “liberalisation”, “commercialisation”, privatisation” and “undemocratic and property-based democratisation” to several areas of the world including where it had hitherto been resisted or put in check” (Madunagu, 1999, 53). Very critical to our understanding of globalisation is the dire need to use it as a synonym for liberalisation and greater openness. The implication of this is that both domestic and foreign liberalization are said to imply


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globalisation, since the former brings domestic markets more in conformity with forces operating in markets abroad, and, the removal of administrative barriers to international movement of goods, services, labour and capital increases economic interaction among nations. It is within this purview that we can argue that globalisation is mainly a phenomenon of capital mobility. Its two prongs are: (i) Foreign direct investment and (ii) international portfolio flows. Thus, a global economy is one which is dominated by transnational firms and financial institutions, operating independently of national boundaries and domestic economic considerations. The implication of deterritorialisation for African countries is that world goods, factors of production and financial assets would be almost perfect substitutes everywhere in the world. Hence, it could be difficult to identify a national economy and consider nation states as different economic identities with autonomous decision making power in the pursuit of national objectives. This, indeed, explains why the IMF issued a query to Nigeria in respect of over 400 billion naira meant for capital expenditure in the 2001 budget, and, why the IMF and World Bank (two bodies that are driving forces of globalisation) contributed enourmously in the drafting of the Nigeria’s 2001 budget. Another important feature of globalisation is that, it enhances the volume of international trade and investment, which is a reflection of the global pattern of specialisation in production (i.e. the international division of labour). Though, there is an increase in the volume of goods among nations, international trade continues to be largely concentrated in developed countries (i.e. Trade continues to exist between economies at the same level of economic development). For example, in 1992, 56% of world trade was among developed countries, virtually unchanged from its 1970 level. In the same year, 77% of developed countries imports come from other developed countries, compared to 78% in 1970. Thus, trade between the developed and developing world as measured by the share of developing countries exports in total developed countries imports has been stable, varying around 30% since 1970, although the rise in oil prices in the 1970s brought a temporary increase. However, trade among developing countries has been a relatively constant share of total trade, although, there has been a rise in intra-Latin American trade (United Nations, 1993). Central to our discourse is that, globalisation is also about international division of labour which might be broadly characterised by the skill intensity of production, with developed countries increasingly specialising in high - skill intensive manufacturing and services and, developing countries in low - skill intensive manufacturing. This asymmetry has severe and devastating impacts on African economies since they are primarily to produce raw materials for industries in the developed countries which, eventually, produce goods and dump them in developing countries as a result of liberalisation - a critical component of globalisation. There is no doubt whatsoever that globalisation is one of the most challenging developments in the world history. As Tandon (1998A:2) once opines, “globalisation in its most generic and broad sense is part of the movement of history”. In other words, globalisation which is an “imperial policy” (Toyo, 2000) and the “final conquest of capital over the rest of the World”, is deeply rooted in history and quite explainable within the context of the one -arm banditry and exploitative antecedents of capitalism which, by its nature cannot exist without parasitic expansion. Given the changing faces and phases of globalisation and its immutable central and primary focus to exploit African resources, disintegrate its economies and incorporate it into the international capitalist economy, it is imperative to emphasise that, the different conceptions, notions and treatment of globalisation by scholars are not incompatible with one another. The limitation of these conceptions, notions and treatments, however, is that, it does not describe the sudden yet significant shifts in the world economy, but, rather, the continuation of longer term trends. Rather, the new development which seems to connect these different strands is that an increased pace of capital mobility has begun to shift the prospects for economic development and growth to the global level - an indication of the expropriation of surplus and capital flight from the African economies. Globalisation has progressed with developments in the world economy. The phenomenon has benefitted immensely from multilateral trading and investment arrangements, advance in technology and communication, and the opening up of trade and investment through liberalisation of current and capital account transactions. The concept of globalisation has robust theoretical underpinnings. The promotion of trade as the bedrock of the wealth of nations was first espoused in the "mercantilist" doctrine before the emergence of Adam Smith's and David Ricardo's thesis. The neo-classical model of growth was later countered by the radical theorists on the


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inviolability of trade for ensuring the growth of nations. The radical theorists and the early proponents of development economics were of the view that growth can be internalised. However, recent developments in the world economy have shown that it is futile for countries to isolate themselves in a rapidly integrating world. Trade theory, as well as closed and open economy, macroeconomics have explained a great deal of the phenomenon that has overwhelmed the world. Globalisation has provided the impetus for nations to tailor their development efforts towards competitiveness in order to remain relevant in the emerging global economy. The trade theorists advanced the thesis that trade was essential for the growth of nations. The arguments of this school did not favour autarky, where an economy is closed with little relations with the rest of the world. With the gains by nations from closer interaction in trading activities following the liberalisation of current accounts, emphasis has shifted to some minimal capital account liberalisation. Although the opening up of capital accounts has been slow, especially among developing economies, current account liberalisation has progressed smoothly. It has often been argued that the more open an economy is, the higher the rate of economic growth. The extent to which an economy is liberalised is influenced by factors such as the strength of the domestic economy, the competitiveness of the external sector, the level of the exchange rate, domestic gross capital formation, among others. Net capital flows are the outcome of imbalances between savings and investment across countries. Both net and gross capital flows respond to economic fundamentals, official policies and financial market imperfections. Thus, fundamental determinants of international capital flows are factors such as the investment opportunities available in the global economy, the co-variances between the expected returns on various investment projects, and the preferences of individuals for present and future consumption, as well as attitudes toward risk. As the international financial system becomes more integrated and portfolios more diversified, assets prices are more likely to change than are net capital flows to restore market equilibrium (Taylor, 1997:453). According to Kareem (2009), there is no consensus on the definition of globalization in the development literature. Most economists take globalization to mean the closer integration of economies through trade and the flow of factors. While some used the growth rate of trade and factor (but capital rather than labour) flow to measure globalization, others take it to be economic liberalization, which enhances closer economic interactions and even some analysts gave a narrower definition to globalization, as being the organization and governance of global production systems (Lall, 2002). Adewuyi (2001) takes globalization to mean the process of both vertical and horizontal integration that involved an increased volume and variety of transnational transactions. Omar (1996) conceived globalization as the integration of domestic economies via financial and trade interactions, leading to the collapse of barriers to trade that makes the domestic economy influenced by the policies of another country through trade and investments. Other definitions of globalization were given by Igudia (2003), Lall (2002) among others. Although economic globalization has many dimensions, loosely speaking it refers to removal of trade restriction (suchas tariff, quota), liberalization of capital markets and free movements of labor. All these could be considered as the indicators of economic globalization. According to Kazeem (2009) the issue of Globalization has brought about three schools of thought: those who believe that globalisation is the best thing that could happened to this world, those who believe that the advent of globalization nhas brought havoc to the economy and those who believe that it could have both positive and negative effect on the economy depending on how they accept and apply it. Economic liberalization is a subset of globalization and it is multidimensional as it encompasses trade, financial, telecommunication etc. To Kazeem (2009), economic liberalization entails freedom in the movement of goods and services across the border of the trading countries. Economic liberalization may be described as the freedom to engage in economic activity at home and/or abroad, a freedom subject to institutional and policy constraints needed to guarantee public interests at large (Ognivtsev, 2005). To Bhalotra (2002), Economic liberalization refers to both macroeconomic stabilization and micro-structural change. As advocated by the IMF and then WB, the package of reforms typically includes some or all of the following changes: reduction in government expenditure, opening of the economy to trade and foreign investment, adjustment of the exchange rate, deregulation in most markets and the removal of restrictions on entry, on exit, on capacity and on pricing. Robert A. Packenham, (1994) is of the view that economic liberalization, which he defined as reduced control by the state over the market and the private sector, is an aggregate concept that has a number of elements or sub dimensions. In his words, Among these elements µare privatization of state enterprises, more liberal trade policies and liberal investment policies, deregulation of ongoing private-sector enterprises, reductions in state


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subsidies, budget deficits, state bureaucracies, and moves toward bureaucratic decentralization. Development on the other hand is a word that is difficult to define because of the diverse contextual usage of the concept. But simply put, the term means improvement or to become more advanced, more mature, more complete, more organized, more transformed etc. Rodney (1969)sees it as a many sided process but defines it in relation to the individual. As he explains, ³at the level of the individual it implies increased skills and capacity, greater freedom, creativity, self-discipline, responsibility and material well-being .́ Todaro also sees development as a multi-dimensional process but gives a definition that is often considered as the other extreme of emphasis from that of Rodney. He describes development as a multi-dimensional process involving there organization and reorientation of the entire economic and social system. This involves in addition to improvement of income and output, radical changes in institutional, social and administrative structures as well as in popular attitudes, customs and belief (Todaro 1982). Todaros definition gives the meaning, which the concept of development assumes whenever it is discussed in relation to countries. Development at this level of conceptualisation is often understood in terms of economic development. This does not only signify economic development, but as Todaro notes above, it equally implies improving the social, administrative, political as well as peoples cultural attitudes and beliefs that are anti progress. Also, Ibezim (1999) further explains, ³economicdevelopment does not only involve physical and financial progress but also improvements in the political and social aspects of society .́ As stated in Todaro and Smith (2009), µDudley seers posed the basic question about the meaning of development Dimensions of Globalisation Globalisation is of two main categories: trade and investment integration, and financial integration. Globalisation of the world's goods and services markets through trade liberalisation and the removal of numerous controls preceded financial markets integration. The removal of barriers to international trade by countries in the quest to operate within the framework of the multilateral trading system was a major impetus for the acceleration of globalisation of trade. Integration in trade was followed and facilitated by foreign direct investment flows between countries that were involved in trade relations. The multinational corporations, the original custodians of international monopoly capital, were the channels through which both international trade and foreign direct investment (FDI) flows were channelled. It was, therefore, not surprising that the countries that traded ore among themselves also recorded substantial FDI flows across their borders. Variants of globalisation of trade and investment can also be determined through the process leading to the integration. Trade liberalisation and the application of the Most Favoured Nations Preference or symmetrical treatment of all trading partners provided a wider focus for globalisation. The liberalisation of current account transactions in the context of the International Monetary Fund (IMF) Article VIII, Sections 2, 3 and 4 on currency convertibility has further provided the basis for the integration of national economies. A number of member countries of the Fund have acceded to the obligations of Article VIII. Other countries in the transitional status have attained some level of convergence that will qualify them to accede to Article VIII. Apart from the institutional and multilateral arrangements that contributed to trade integration, lower transport and production costs, arising from increased specialisation and economies of scale have also helped to accentuate the phenomenon. The integration of the world's financial markets has been more profound. The volume of financial transactions has more than tripled.that of trade in goods and services. Financial globalisation was propelled by the advance in information technology, that facilitated interactions among financial concerns in different parts of the world. Within seconds, financial transactions involving large sums of money could be concluded. The fluidity with which capital moves across national boundaries makes the phenomenon different from globalisation involving trade in goods and services. Financial globalisation, unlike that involving trade in goods and services, is more difficult to track. This is because it exhibits herd bahaviour and its presence can easily be obscured either deliberately or by default. Although, globalisation of trade has led to enormous benefits, its adverse effects have been reflected by shocks in the external sectors of weak economies. The volatility arising from globalization of trade is, however, on a lower scale than that of financial markets globalisation. The rapid integration of the global capital markets has made reverse flow of capital very destabilising. Hedge funds and financial


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derivatives have also compounded the problems of international financial integration. Gains from globalisation of goods and services markets can easily be eroded as a result of adverse developments in the financial markets. More importantly, volatility of financial markets is a more difficult problem for monetary and macroeconomic management. For instance, the monetisation of huge inflows of capital results in increased monetary aggregates and expansion of aggregate demand with implications for monetary management and inflation control. The increased specialisation that immensely contributed to globalisation in the major forms are namely: goods and services markets, and financial markets integration has failed to encourage rapid labour mobility. Although some form of mobility has been achieved on regional basis, international mobility of labour has not assumed a level comparable to the rapid trade and financial integration that has taken place over the years, especially after the end of the cold war and the embrace of Structural Adjustment Programmes by the developing and emerging economies. There are also legal and institutional impediments to labour mobility, some of which include immigration laws. Also, certain categories of individuals and skills may be averse to movement out of their usual abode. The movement of labour from developed to developing economies may also be influenced by the disparities in the level of economic development. The rigid labour laws of the advanced countries, 24 CBN ECONOMIC & FINANCIAL REVIEW, VOL. 38 No. 2particularly the discrimination against third world countries also makes it difficult for migration from the developing economies to occur on a large scale. If international mobility of labour had been on the scale of trade and capital flows, global prosperity would have been better enhanced. If international mobility of labour is encouraged, living standards would be enhanced generally while the law of one price would eventually result in the convergence of the quality of life. The radical paradigm can also be used to explain the phenomenon of globalisation. The proponents have argued that globalisation is the strategy of the 'North' to retain economic power, in order to continue the marginalisation of the 'South'. Thus, they have continued to reinforce the policy of liberalisation through the multilateral trading arrangements and the Bretton Woods Institutions, the IMF and the World Bank. The Bretton Woods Institutions are quick to point out that the openness of the industrialised economies and the application of structural adjustment and market-friendly policies accounted for their rapid economic growth. The change in the fortunes of the East Asian economies, owing to financial market volatility which is a fallout of financial globalisation, has been attributed to the inappropriate policies pursued by those countries. This is regarded as the asymmetry of globalization by radical critiques. Obaseki 23 Prospects and Challenges of Globalisation Globalisation has both positive and negative effects, which are opportunities and challenges, respectively. The positive effects or benefits are numerous, but the most important include, increased specialisation and efficiency, better quality products at reduced prices. economies of scale in production, competitiveness and increased output, technological improvement and increased managerial capabilities. The increase in world trade and output made possible through globalisation, ensures that consumers derive the best satisfaction since the best standards of quality are maintained through specialisation and competition. In addition, the volume of goods and services increases with the welfare of individuals enhanced across countries. The increase in FDI flows facilitate the growth in world trade and global output by increasing the international mobility of capital and ensuring efficient use of technological and other resources in the production process. Through investment and trade, firms specialise in production, with trade facilitating the process through specialisation. In addition, FDI facilitates the process through technological innovation and efficient deployment of resources to achieve lower unit cost of production. These processes help to increase global wealth, enhance living standards, ensure poverty reduction and improved welfare for the individual. Thus, globalization is crucial for worldwide economic growth and development. Trade and investment can aid efforts at restructuring an economy to make it more competitive and better able to contribute to the globalisation process. Rapid capital and financial integration has helped in the mobilisation of foreign savings for domestic investment and economic growth. It has also made capital to be more efficiently deployed. In specific terms, the benefits of financial integration include, boosting of domestic investment potentials, a more rational allocation of


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savings in favour of relatively more profitable investments, and the enhancement of the depth and efficiency of the domestic financial market, which positively impacts on output and employment. The favourable impact of globalisation on the world economy has been attributed to the slow growth in inflation, reduced fiscal imbalances with improved real interest rates and good prospects for investment and structural reforms, especially in the transition economies and heavily debt distressed economies applying adjustment programmes. Current and capital accounts liberalisation across the globe have also helped the rapid integration of the world economy. National macroeconomic policies, including financial policies, have to give due consideration to the sustainability of rapid capital flows that tend to narrow the yield across national boundaries on various assets. The narrowing of the yield spread predicated on high interest rates, easily result in volatility, especially in a fully saturated system where the capital importing country may be saddled with increased burden of repayment and rapid outflow on account of default. Fragile and over-exposed banking system with inadequate prudential regulation also accentuate reverse capital flows at periods of crisis and turbulence. Differences in macroeconomic, sectoral and structural policies have accounted for the varying degree of benefits accruing to countries in the context of the rapid integration of goods, services and financial markets, and information systems across the globe. Although globalisation has both positive and negative aspects, there is no doubt that it has improved global welfare. Those countries that have not benefitted have failed to: implement sound macroeconomic policies towards financial and exchange rate stability; apply policy measures to achieve current account convertibility through the removal of non-tariff barriers to trade; and adopt adequate prudential measures to stem banking system distress. Globalisation penalizes countries that adopt the wrong macroeconomic and sectoral policies, while enhancing the growth potentials of those that apply sound policies. As a result, countries must strive to adopt policies that are in consonance with the current reality of the rapid integration of the world economies. The problems associated with current account liberalisation have not been as serious as those arising from capital account liberalisation. This is mainly because the two are not exactly the same thing. While trade flows may not necessarily exhibit herd behaviour, capital flows do, and this phenomenon precipitated and intensified the East Asian financial crisis in 1997. The rapid integration of the global capital market has made reverse flow of capital very destabilising. Hedge funds and financial derivatives have also compounded the problems of international financial integration. The contagion effect of financial crisis spreads very rapidly and this is very destabilising. Gains that have been recorded in growth and financial stability can easily be eroded through sustained capital outflow. A very critical fallout of financial integration is the adverse consequences from the inability of a country to develop the required absorptive capacity to utilise inflow of capital, or sterilise the portion that cannot be deployed for economic development purposes. Thus, economic overheating may become manifest with dire consequences for future inflows. A reverse flow of capital may follow such over-heating when the situation is not well managed. Rapid capital flows arising from globalisation can pose difficulties for macroeconomic management. A weak external sector can be financed only temporarily as hidden current account deficits easily show up when capital starts flowing outwards as soon as the investment climate becomes unfavourable. Thus, excessive growth in investment, financed by foreign capital when domestic savings are low. could result in difficulties, especially current account deficits with concomitant problem for macroeconomic stability. With the rapid integration of financial markets. it becomes difficult to control effectively the movement of capital across national boundaries. More importantly, the distinction between destabilizing and stabilising short-term capital flows becomes blurred. Sterilisation policies may also prove difficult to implement successfully as a result of the cross-border operations of the multinational financial institutions that accelerated the process of international transmission of funds with the aid of advanced information technology. CBN ECONOMIC & FINANCIAL REVlEW, VOL. 38 No. 2 Apart from making the pursuit of independent monetary policy difficult, globalisation increases unemployment in those countries with relatively low skilled labour. This is because labour mobility is higher under globalisation. Essentially, globalisation tends to encourage policy interdependence while reducing national policy sovereignty, especially for countries with uncompetitive


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economies. The rapid integration of financial markets has significantly altered the environment confronting national policy makers in the conduct of monetary and financial policies. The liberalisation of controls on capital flows, and the development of various categories of derivatives and off-balance sheet instruments have made it difficult to appropriately target monetary policy. The integration of financial markets affects the conduct of monetary policy as the transmission mechanism is not only determined by the interest rate, but also by the exchange rate. In a sense, this may be good as the burden of monetary adjustment is no longer borne by interest rate alone. However, the type of exchange rate mechanism in place matters. With fixed exchange rates, monetary policy direction is ultimately determined by developments in the economy of the anchor country. When exchange rates are flexible, domestic monetary policy independence can be achieved, although to a limited extent if price stability cannot be maintained. Where price stability is maintained, the exchange rate mechanism in place does not really matter since monetary policy objective would have been guaranteed. The integration of financial markets can result in the achievement of less than expected results from monetary actions by government if volatile short-term capital inflows persist. This could undermine the achievement of macroeconomic stability. Another problem with globalisation is the rapid spread of shocks and disturbances from one financial market to another. Although, such shocks can be absorbed by large markets, they nonetheless constitute obstacles to the achievement of macroeconomic stability. The rapid inflow of capital to take advantage of high domestic interest rates may undermine the pursuit of macroeconomic stability if such flows are not based on improved domestic economic fundamentals. To sustain the inflow, interest rates may have to be maintained at high levels with attendant inflationary pressures, especially when capital inflow cannot be stenlised. A more serious problem is the sustained increase in the real exchange rate which may be counter-productive, especially for external sector competitiveness, when funds start flowing outwards on the realisation by investors that there are no more long-term prospects for productive investment in an economy. It follows that globalisation, especially financial markets integration has serious implications for macroeconomic management. CBN ECONOMIC & FINANCIAL REVlEW, VOL. 38 No. 2 Nigeria in the Global Economy Nigeria has not been spared from the phenomenon of globalisation. Although, the adverse consequences have not been pronounced, the fact remains that Nigeria has become relatively more integrated with the global economic system. The tempo intensified with the policy shift from trade and exchange controls to economic liberalisation from 1986. Nigeria is highly dependent on external trade, while rapid inflow of capital has been stemmed largely as a result of the relatively underdeveloped state of the financial markets. To determine the extent of openness of the Nigerian economy, trade flows involving the country and the rest of the world could be analysed. The share of total trade in total output or gross domestic product (GDP)can be applied to measure the openness of the Nigerian economy. On the basis of this methodology, Nigeria's economy recorded increased openness between 1986 and 1987, reflecting a movement from 0.21 to 0.64 during the period. The trend showed a decline to 0.63 in 1988. The trend mirrored adequately the performance of the Structural Adjustment Programme introduced in 1986. The openness index nudged upwards, reaching 1.70 in 1990. A further improvement was recorded in 1995 when 16.5 was recorded. This rose successively, reaching 18.80 in 1997, before declining to 14.06 in 1998. The drop recorded in 1998 was accounted for by the decline in both export and import from their levels in the preceding year. Although, the Nigerian economy has become more open over the years, its share of world trade has remained relatively low. The share of Nigeria's exports in total world expol-1 was below 1 per cent in the period 1970 to 1998, except in 1974, 1976, 1977, 1979 and 1980, when 1.1, 1.1, 1.1, 1.1 and 1.4 per cent were recorded, respectively. CBN ECONOMIC & FINANCIAL REVlEW, VOL. 38 No. 2 . Similar trend was exhibited by Nigeria's import trade. Nigeria has applied various policies over the years to stimulate the productive and external sectors of the economy, not only to ensure export competitiveness, but also to expand the import capacity of the economy. The low share of Nigeria's


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imports in total world import trade was partly accounted for by the low export capacity of the economy. The undue dependence of Nigeria on crude oil exports has limited the scope for the diversification of the economy, while at the same time exposing the economy to shocks in the international oil markets. This has resulted in the direct transmission of instability in world oil prices into unstable and unpredictable revenue receipts by the government. Thus, development programmes for the economy have been largely predicated on development in the world market for crude oil. The low level of primary commodity exports, owing largely to the crash in commodity prices and the constraining effect of higher incomes and improved living standards on the demand for them, in addition to the low level of export of manufactures, contributed to the predominance of the oil sector. Nigeria's low export performance especially in manufacturing is a major factor preventing the country from benefitting adequately from the integration of goods and services markets across the globe. The lack of comparative advantage in manufacturing has limited the scope for specialisation. With the mobility of all factors of production in the context of international specialisation, it is obvious that only those countries with the requisite skills would be able to compete in the global arena. The implementation of market-friendly policies could result in the attraction of the requisite skills and international support that would pave the way for the movement of relevant factors of production into and out of the country. With the current low level of comparative advantage in manufacturing, Nigeria will continue to be marginalised in its economic relations with the rest of the world. To avoid marginalisation, Nigeria would have to diversify its economy and take appropriate measures to raise manufacturing exports. Nigeria's position in the global economy would have been worse than it is now if financial markets integration had not been prevented from a full reign on the economy. This situation was not deliberately created. It merely resulted from policy inactivity and the poor state of the financial markets. The financial markets in Nigeria have not kept pace with developments in the global financial markets. The non internationlisation of the capital market prevented the economy from exposure to developments in international financial market. Obaseki 29 The financial turmoil in East Asian economies in 1997 and the wide spread contagion effects across the Asian continent, with some marginal effects on the US and European economies would have had some impact on the Nigerian capital market. This does not, however, mean that the state of our capital market is ideal. It is imperative that we develop the capital market to cope with the problems that may likely arise from the full integration of Nigeria's capital market into the global network. Financial markets integration, which has been facilitated by the rapid advance in information technology, compounds the problem of monetary management. The injection of short-term capital into an economy, and the rapid withdrawal of such funds reduces the scope of official surveillance, tasking to the limit the expertise of financial managers. The disequilibrium that such rapid capital flows creates in the financial markets negatively impacts on the productive sectors of the economy. The inflow of medium to long term capital into an economy could be applied more judiciously, since the quantum can easily be determined and the sources well defined. The use of such resources to augment domestic savings helps to expand the scope for economic growth through improved investment outlay. In certain circumstances, when the domestic financial market is sound, and prudential regulations are transparent, short-term capital flows could easily be managed, thus providing a source of short-term financing. Shortterm capital flows has not been a major source of funding Nigeria's financial market. With the linking of the Nigerian Stock Exchange with the major world financial centres, portfolio flows into Nigeria are expected to increase. However, the internationalisation of Nigeria's financial markets should be preceded by a strong domestic economy, and a competitive external sector, with a preponderance of manufactured exports. At the current state, Nigeria's share of global trade is rather low, indicating the country's uncompetitive position in the context of globalization in goods and serlices. In the area of financial integration, Nigeria is a late starter. The domestic financial markets are still rudimentary and the rate of economic growth has not been encouraging even with the adjustment efforts. The emigration and immigration of capital which largely


147

indicates the performance of an economy, given that a high and sustained non-inflationary rate of economic growth had been achieved, has eluded us in setting our goals and priorities owing to the unattractiveness of the domestic financial markets. The problem of labour market integration also applies to Nigeria. However, many highly skilled Nigerians have migrated to other African countries where their skills are required. This pattern follows what has been established in other regions of the world. The problem with labour migration as it affects Nigeria is that highly skilled personnel that are in short supply in the country are moving out in search of better opportunities. Labour migration in the industrialised countries releases only the portion of labour that is in excess supply. Thus, the country of origin is not disadvantaged. In order for Nigeria to benefit from globalisation, efforts should be made to develop human capital and decode the multimedia super-corridor for relevant information. Thus, information technology should progress in line with the global trend. Above all. good governance, transparency and accountability are desirable for a strong and competitive economy. CBN ECONOMIC & FINANCIAL REVIEW, VOL. 38 No. 2 External Trade, Growth and Openness

Year EXPO

W 'MI IMP

LION) TTRADE

GDP

ER C GDPGR

w TT/ GDP

1970 1971 1972 1973 I974 1975 1976 1977 1978 1979 1980 1981 1982 I983 1984 1985 I986 1987 1988 1989 1?90 1991

885.7 1293.4 1412.2 2278.4 5794.8 4988.4 6622.4 788 I .7 6380.4 10397.5 14196.7 C1033.8 9 196.4 775 I .8 9138.8 1 1720.8 9047.5 29578.1 31191.8 57971.2 109886.1 121533.7

756.4 1078.9 987.6 1224.8 1737.3 3717.4 51 32.6 7159.7 8 132.0 6161.9 9095.6 12599.1 10100.2 6555.7 4484.5 5536.9 5974.7 15695.4 18088.4 30860.2 45717.9 89488.2

1642.1 2372.3 2399.8 3503.2 7532.1 8705.8 11 755.0 15041.4 I45 12.4 16559.4 23292.3 23632.9 19296.6 14307.5 13623.3 17257.7 15022.2 45273.5 49280.2 8883 1.4 155604.0 211021.9

54148.9 65707.0 693 10.6 73763.1 82424.8 79988.5 88854.3 96098.5 89020.9 91 190.7 96 186.6 70395.7 70157.0 66389.5 63006.2 68916.1 71075.9 70740.6 77752.3 83495.0 90342.0 94614.1

21.0 5.0 6.0 11.0 -3.0 10.0 8.0 -8.0 2.0 4.1 2.8 -0.3 -5.4 -5.1 9.4 3.2 -0.6 10.0 7.3 8.3 4.7 3.0

0.0 0.0 0.0 0.0 0. I 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.3 0.2 0.2 0.3 0.2 0.6 0.6 1.1 1.7 2.2


148

1992 1993 1994 1995 1996 1997 1998 1999

205613.1 218770.1 206059.2 95066 1.4 1309543.4 1241662.7 75 1856.7 1999 11 89006.5

143151.2 166100.4 162788.8 755 127.7 562626.6 845716.7 8375 18.9 862525.3

348764.3 384870.5 368848.0 1705789. I 1872 170.0 2087379.4 1589375.6 205 I53 1.8

9743 1.4 1000 10.0 10 1350.0 103530.0 107020.0 ll0400.0 113,000.0 1 16000

2.3 1.3 2.2 3.4 3.2 2.4 2.7

3.6 3.8 3.6 16.5 17.5 18.9 14. I 11.7

Source: Central Bank of Nigeria Note: EXPO = Exports IMP = Imports TTRADE = Total Trade GDP = Gross Domestic Product Growth Rate of Gross Domestic Product TT/GDP = Measure of Openness Conclusion Globalisation, the closer interaction between national economies through trade, investment and capital flows, made possible by technological development and advancement in telecommunications, has increased global welfare and transformed the world into a global village. Globalisation has evolved over the years, but its rapidity intensified after the endof the cold war. Globalisation slowed during the cold war as a result of protectionist policies applied to defend ideological interests by the major protagonists. With the end of the ideological polarisation of the world, increasing emphasis has been placed on openness and liberalisation of national economies to secure maximum benefits from global economic prosperity. Globalisation has been facilitated by the activities of multinational corporations (MNCs), the multilateral monetary and financial system, especially the Bretton Woods institutions and the international trading arrangements. Globalisation has both positive and negative effects. The positive effects are international specialisation, which results in high quality and low cost products, improvement in welfare and the closer interaction between national goods and services, and financial markets. These result in the free flow of investment capital to take advantage of opportunities for higher yields across national boundaries. The adverse effects include, the accentuation of acroeconomic imbalances, marginalisation of economies that failed to apply appropriate policies and destabilizing impact of rapid short-term capital flows, especially when they cannot be absorbed in the production process and avenues for sterilisation are slim. The world economy has been characterised by the rapid integration of financial markets in the last two decades. Financial globalization has proved more difficult to contend with because of its peculiarities. The ease with which cross border financial transactions take place has further compounded the problem of independent domestic macroeconomic management. Reductions in transport and telecommunication costs, capital account liberalisation, financial market deregulation and privatisation of state enterprises have created favourable environment for increased capital mobility. The strategies and policies to moderate the adverse consequences of globalisation are the application of policy measures that would ensure the maintenance of macroeconomic stability, international coordination of policies to ensure convergence, and the reform of the international monetary and financial system to ensure a level playing field for all participants in the global economy. Above all, countries must pursue sound policies, liberalise their economies, reduce the role of government relative to that of the private sector and ensure good governance in order to reap the fruits of globalisation. Otherwise, poor policies will be rewarded by marginalisation in the global arena. Disadvantaged. CBN ECONOMIC & FINANCIAL REVIEW, VOL. 38 No. 2 References


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Review, Vol. 36, No. 4, December. Ohmae, K. (1989). Managing in a Borderless World. Harvard Business Review, 67 (3): 52-61. Ohmae, K. (1985). Triad Power. New York: Free Press. Time Management and Academic Performance of Postgraduate Students in Nigerian Universities

1Nzewi, Hope Ngozi (Ph.D), email:[email protected]

2Chiekezie,Obianuju Mary(Ph.D),

email:[email protected]

3Ikon, Michael A.(Ph.D), Email:[email protected]

1-3Department of Business Administration, Nnamdi Azikiwe University, Awka

Abstract This study assessed time management and academic performance of postgraduate students in Nigerian Universities. The specific objective of the study is to determine whether time management is the only variable that affects the Cumulative Grade Point Average of postgraduate students in selected Universities in Nigeria. Survey research design was employed and data were analyzed using mean and standard deviation. Z-test statistics was used to test the formulated hypothesis at 5% level of significance. Our finding revealed that time management is not the only factor that affects the Cumulative Grade Point Average of postgraduate students in selected Universities in Nigeria. In addition, family workload and other psychological factors influence the academic performance of postgraduate students in Nigerian Universities. We therefore, recommend that postgraduate students should undergo physical, medical, psychological and cognitive tests before they are certified fit to take any postgraduate examination. Effective time management skills should be taught to the postgraduate students.


151

Key words: Time management, Academic Performance, Postgraduate Students, Cumulative Grade Point Average and Nigerian Universities. Introduction Time is a priceless resource and continues to pass by without coming back. There are many things we dream to do and have to do in the midst of competitive conditions in business life. For those who cannot perform the necessities of time management effectively in their private and business lives will result in failure and unhappiness (Mercanlioglu, 2010 & Shellenbarger, 2009). According to Drucker, quoted in Repak (2007), time is the scarcest resource available and many times our highest priorities are not reflected in our actual daily activities. Graduate students face a number of pressures that are distinct from the stresses that undergraduates face. Given their non-residence in universities, academic pressures, family and financial obligations, the need for proper planning and time management to avoid distress becomes imperative (Patton, 2012). Cemaloglu & Sevil (2010), posit that there is a significant and positive relation between time planning and academic achievement of students. This finding corroborates the prior study of Eilam & Aharon (2003), Davis (2000) and Green & Skinner (2005). The problems of graduate students in Nigerian Universities include time management, study habits, note taking, internet skill, the elimination of distraction and assigning a high priority to study (Igun & Adogbeji 2007). Statement of the Problem Postgraduate students in Nigerian Universities appear entangled in how best to manage time resource effectively and efficiently in both their academic pursuits and workloads in order to ensure performances in various fields of endeavour. Statistics from the Global Competitiveness Index (2011-2012), indicate that Nigeria ranks 114 (3.18%score) out of 139 countries surveyed in provision and quality of higher education and training in the world. The ranking web statistics of Universities (2012) in the world show that the highest ranked university in Nigeria, University of Ibadan, occupies 3215 position (world rank), 6996 position (presence rank), 3813 position (impact rank) 8345 position (openness rank) and 1318 position (excellence rank). Given the competing myriads of responsibilities of graduate students (Patton, 2012), the question is: could time management among the postgraduate students in Nigerian Universities be the only factor that affects their academic performance? Objective of the Study: The primary objective of the study is to assess the relationship between time management and academic performance of the postgraduate students in Nigerian Universities. The specific objective is to determine whether time management is the only variable that affects the Cumulative Grade Point Average (FCGPA) of postgraduate students in Nigerian Universities. Statement of the Hypothesis The hypotheses of this study are: H0: Time management is not the only variable that affects the Cumulative Grade Point Average of

postgraduate students in Nigerian Universities. H1: Time management is the only variable that affects the Cumulative Grade Point Average of

postgraduate students in Nigerian Universities. Review of Relevant Literature Prior studies on time management among Postgraduate students present varied perspectives and findings (Repak, 2007; Cemaloglu & Sevil, 2010; Elian & Aharon, 2003). In their study, Claesson, Eerde, Rutte & Roe (2007), reviewed 32 empirical studies on time management conducted between 1982 and 2004 in order to provide an overview of the current state of the art in time management research. The review


152

reveals that time management behaviour relate positively to perceived control of time, job satisfaction and health, while it is negative to stress. However, the relationship with work and academic performance is not clear. Igdem (2010) investigated the relationship of time management to academic performance of Master level students. Employing survey research design, his findings show that there is a significant positive relationship between time management and academic performance of Master’s level students. He concluded that the competitive conditions in business life have forced people and business to do so many things simultaneously. In a related study, Davis (2000) examined the effect of time management on work and academic settings. Using survey research design, his results suggest a positive relationship between time management and work academic settings and increased performance. A number of experts (Wright, 2002, Ancona, Goodman, Lawrence & Tushtman, 2001, Gorge & Jonas, 2000), assessed the need to incorporate time in theoretical models and research designs in organizations. Applying survey method, their findings indicate that time management facilitates improvement in effort. Cognizance of the non-acceptability of a universal definition of time management, Shellaenbarger (2009) views time management as behavioral change techniques that help people get organized, clarify thinking and increase output. Eilam and Aharon (2003) believe that time management is a way of monitoring and controlling time. However, Claessons, Eerde, Rulte & Roe (2007) observed that time cannot be managed because it is an inaccessible factor. The only way a person deals with time is by influencing behavioral attitude. Measurement of academic performance Measurement of public sector performance, especially in provision of service in Universities is a complex issue. It involves comparing public resources in terms of total amount of money expended, the personnel and other resource with outputs such as students’ academic performance, graduation rate and quality of research (Abdulkareen & Oyeniran, 2011). Universities are established to produce skilled manpower and good performance in higher education is expected to bring positive growth (Blanchard, 2004). Coelli, Prasada and Battesse (2000) state that the output measures of Universities in terms of teaching include the following:

Number of students admitted Number of full-time equivalent students Number of students in different disciplines Number of undergraduates and postgraduate students Number of weighted full-time equivalent students

In the perspective of Ana & Edgar (2002), the output measures include:

Number of recipients of Bachelor, Master and Doctoral Degree granted by the university. Teaching load of the department which is an index computed by the university administration,

taking into account the number of hours taught by the department on graduates and undergraduate programmes plus hours for supervising students’ projects.

Undergraduates/graduates work volume, sum of number of students enrolled on a course multiplied by the number of credit hours of the course for all courses.

Cumulative Grade Point Average (CGPA)/Grade Point Average The academic performance of a student in any semester is measured with the grade point average (G.P.A). Cumulative Grade Point Average is the measure of the students overall academic performance at any given point in his programme. (GPA is an up-to-date weighted mean of the grade points, where the weights are the course credit units (Nnamdi Azikiwe University Academic Programme, 2010).


153

However, Young (2005) critiqued CGPA as inadequate measure of academic performance and suggested in his studies that Item Response Theory (IRT) based GPA is a more reliable measure of performance which is used to measure the validity of traditional preadmission’s information. Theoretical framework This study is anchored on the pickle jar theory which is the latest theory of time management taught in leadership course. Jeremy Wright developed the theory after his series of studies (Olubor & Osunde, 2007). The pickle jar theory states that activities and responsibilities of people need be balanced using effective time management system. Time is approximately allocated for everything and things fit well where they are expected to fit. This theory is predicated on the fact that individuals have many large priorities in lives such as studies, workload, leisure, family responsibilities, sleep and rest. According to the theory none of these tasks is bad, but what is important is efficient management in the midst of time constraints in order to enhance performance in various areas of life. Pickle theory as it relates to time management and academic performance of postgraduate students in Nigerian Universities, emphasizes the need to identify one’s large priorities during the day (lecture attendance, workload, seminar presentation, proposal presentation, consultation of library materials, family responsibilities, project/thesis/ dissertation defence so as to ensure higher cumulative grade point average, which is an index of academic performance in Nigerian Universities). Methodology Survey research design was used in this study in order to collect information. Questionnaire instrument was administered on the sampled respondents. The population of this study is infinite sequel to the fact that it cannot be easily ascertained. We adopted cluster and stratified sampling techniques, which are categories of probability sampling technique. This technique ensured that all the elements of the population had equal chances of being selected. We focused on postgraduate students in selected universities from the six geopolitical zones of Nigeria. Owing to the infinite nature of the population, a statistical formula for determining sample size from unknown universe was employed (Okeke, Olise & Eze, 2008). This study assumed 5% level of significance () (See appendix 1).


154

Table 1:1 Categories of Respondents Sampled Source: Field Survey Data, 5th May-30th July, 2012 Data were collected from primary and secondary sources. The primary data were gathered from the respondents to elicit, opinions, attitudes and preferences concerning the effect of time management on the Cumulative Grade Point Average of post graduate students in Nigerian Universities. Questionnaire method was employed because it provides an efficient way of

gathering responses from a large population (Osuala, 2001). Arguably, questionnaire is the most used method for data collection (Ezejelue, Ogwo & Nkamnebe, 2008). Structured questions were posed to obtain answers from respondents. Textbooks, journal and internet materials constituted the secondary sources. Out of the 246 copies of questionnaire distributed, 197 copies were retrieved (80%) and 49 copies (20%) were missing during the period of distribution and collation by the authors and research assistants. Content validity and construct validity were used to validate the structured questionnaire instrument by administering 20 percent of copies of the questionnaire to experts in management studies. Content validity explains the extent of coverage of the research topic, while constructs validity, defines the capacity of the instrument to measure variables. Data Analysis The mean and standard deviation were utilized to analyze the data. We employed a modified 4-point likert scale and the response options and weight allocated were strongly Agree (1 point), Agree (2 points), Disagree (3 points) and Strongly Disagree (4 points). The analysis was made based on the data in table 1.2 Hypothesis Testing H0: Time management is not the only variable that affects the cumulative Grade Point Average of postgraduate students in Nigerian Universities. The hypothesis of this study was tested with the data in table 1.2 . Z-test statistical tool was used to empirically test the hypothesis that guided the study. Mean of Population (µ): 4 x 197 x 9 = 7092 = 788 --- (A) 9 9 Mean of Sample (x): = 5634 = 626 --- (B) 9 Standard deviation (δ): √ (x- ẍ) 2 = √111,082 = √12,342 n Standard deviation (δ): = 110 ---------(C)

S/N0 University class category (PGD, MBA, M.Sc, Ph.D) & senior lecturers

Geopolitical Zone/state

Number of respondents

1 Nnamdi Azikiwe University, Awka

South east/Anambra

86

2 University of Portharcourt

South south/Rivers

53

3 University of Lagos South west/Lagos

41

4 Abubakar Tafawa balewa University, Bauchi

Northeast/Bauchi

23

5 Ahmadu Bello University, Zaria

Northwest/Kaduna

18

6 University of Markurdi, Gboko

Northcentral Benue

25

n=246

x_

9

n


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Z-test statistics: ẍ -µ = 626-788 =-162 =-1.47 ---- (D) Ơ 48 110 Decision: since Z-test calculated = - 1.47<1.96 (Z table value) at 5% level of significance, we accept the null hypothesis, which states that time management is not the only variable that affects the Cumulative Grade Point Average of postgraduate students in Nigerian Universities. Therefore the alternate hypothesis is rejected. Analyses of Findings and Policy Implications The first finding from the hypothesis testing reveals that time management is not the only variable that affects the Cumulative Grade Point Average of postgraduate students in Nigerian Universities. This is corroborated by the earlier study of Igun & Adogbeji (2007) which shows that the problems of postgraduates students in Nigerian Universities include time management, study habits, note taking, internet skill, distractions and assigning a high priority to study. This finding is also in line with Patton (2012), who posited that the non-residence of many postgraduate students. academic pressure, family and financial obligations have affected their academic performance. The policy implication is that the existing policies on admission and registration of postgraduate students should be reviewed by the various Management, Senate and Governing councils of Nigerian Universities in order to monitor the adherence of postgraduate students to academic regulations. Most probably, if the Cumulative Grade Point Average is not improved upon, the Global Competiveness Index and World ranking of universities would continue to jeopardize the position of Nigeria. Finding from questionnaire response indicates that family and workload responsibilities are not the only factors that influence the Cumulative Grade Point Average of Nigerian Postgraduate students. This agrees with the position of Claessons, Eerde, Rulte & Roe (2007) that time cannot be managed because it is an inaccessible factor. The implication of this findings is predicated on the possibility that health, biological and other psychological variables could affect the Cumulative Grade Point Average of postgraduate students in Nigerian Universities especially during examination period. Conclusion and recommendations It is evident from this study that time management is not the only variable that affects the Cumulative Grade Point Average of postgraduate students in Nigerian Universities. Additionally, other intervening factors such as health, biological, psychological and non-residency of many postgraduates students are greater forces that could affect the academic performance and in corollary, the Cumulative Grade Point Average of the focused students. In the circumstance therefore, this study advocates that for any improved and sustained academic performance of postgraduate students in Nigerian Universities, the students should undergo physical, medical, psychological and cognitive readiness test before they are certified fit to take any postgraduate examinations. Besides, the curriculum of the working postgraduate students should be revised so as reduce the credit load and extend the duration of the programme for many years, such as 4-academic sessions for master’s students on part-time and 6-academic sessions for Ph.D students. Effective time management skills should be taught to the postgraduates students. It is our hope that these recommendations would serve as strategies and options for socio-economic development of Nigeria and Africa in general. References


156

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Elections and Democratic Consolidation in Nigeria; A Critique of 2011 Election

Alfa Patrick Innocent

e-mail:[email protected] Mobile No.: +234-8032404485 or +234-8051168950

Ahmadu Alhassan

Department of Social Science and Humanities The Federal Polytechnic, Idah

Kogi State, Nigeria e-mail: [email protected]

Mobile No:+234-8065517987

Adah George Department Tourism

The Federal Polytechnic, Idah Kogi State, Nigeria

[email protected] Mobile No: +234-8068959870

Abstract Elections and electoral processes are fundamental to the workings of every democratic setting of the modern state. Elections are the major hallmark of a democratic society. This paper argues that elections in Nigeria have not been able to contribute fundamentally to democratic consolidation. Specifically, the paper appraises the 2011 elections and the spate of violent reactions that followed the announcement of the results of the presidential elections despite the views of both domestic and international observers that the elections were credible. It opines that stakeholders must commit themselves to the task of conducting free and fair elections if the Nigerian fledgling democracy to enhance the speed of democratic consolidation. Key words: Election, Democratic Consolidation, Democracy, Credible, Violence Introduction It is almost taken as given that the ascendancy of liberal democracy has witnessed increasing reduction of democratization especially in Africa to the “introduction of election and multi party politics”, (Ntalaja,N.G,1997). This suggests the need to interrogate the significance of election within the democratic process. This is necessary especially against the backdrop of democratic rule in Africa collapsing through disputes over elections. To be sure, elections in Nigeria have not provided the necessary leeway for democratic sustenance. Consequently, they require a fundamental reappraisal. The Nigeria’s electoral experience has traced a parabola; it has oscillated from near success to outright failure and confusion culminating in a long era of regime instability occasioned by coups and counter-coups, civil war, annulment of elections, and post-election violence. In the epoch of globalization of democracy with global standards and parameters for measuring the credibility of elections, it is pertinent for all stakeholders to rise to the challenges of credible elections and democratic consolidation in Nigeria. Conceptual Analyses Election:


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An election is a formal decision making process by which a population chooses an individual to hold public office. Elections have been the usual mechanism by which modern representative democracy operates since the 17th century (Britannica, Encyclopedia 2009). Elections may fill offices in the legislature, sometimes in the executive, and judiciary, and for regional and local government. Elections are the means through which the people exercise their sovereign right to choose who governs them and what the political and other priorities of their government should be. Democratic elections are thus the opportunity for the people to express their sovereignty through the ballot to confer legitimacy to their government, renew its mandate if necessary or withdraw from it the authority to govern. This is the basis of accountable government. (INEC, 2011). For Gwinn and Nortan, (1992), election is the formal process of selecting a person for public office or accepting or registering a political proposition by voting. They state further that an election is one of the means by which a society may organize itself and make specified formal decisions, adding that where voting is free, it acts simultaneously as a system for making certain decisions regarding the power relations in a society, and as a method for seeking political obedience with a minimum of sacrifice of the individual's freedom. The essence of a democratic election is freedom of choice. For Eya (2003), election is seen as the selection of a person or persons for office as by ballot and making choice as between alternatives. Eya defines Electoral process as the method adopted in the selection of persons for political offices. He further sees electoral frauds or malpractices as improper, illegal, deceitful or immoral behaviours and conducts which vitiate free and fair electoral processes. A fair electoral process according to him, must have some basic structures, which include: statutory provisions establishing the electoral Bodies, Delineation of wards/constituencies, Registration of political parties, Registration of voters, Recruitment and training of ad-hoc staff, Procurement of electoral material, logistic, screening of candidates, provision of polling agents monitoring agents, actual voting, accreditation of voters, counting votes and providing avenues for settlement of disputed results. Onyeka (2002) elucidates what characterizes a proper electoral process. For him, the basic objective of election is to select the official decision makers who are supposed to represent citizens -interest. He posits that an electoral process reinforces the concept of self-rule, celebrates it and legitimizes governmental power. Elections, according to Onyeka, extend and enhance the amount of popular participation in the political system adding electoral history started with restrictive voting based on property ownership and tax payment. The basic constituents of the electoral process according to Onyeka, include: political parties, political opinions, pressure groups and the mass media. They all converge on the electoral process to determine whom the leaders would be and ensure that the elected official will represent their constituencies effectively. Similarly, the 1987 Political Bureau Report gave a lucid clarification and interpretation of elections and electoral processes. It states that four basic conditions are necessary for the holding and conduct of free and fair elections. These include: a. An honest competent, non-partisan administration to run elections. b. Enabling rules and regulations-Electoral laws; c. A developed system of political parties. d. An independent judiciary to interpret electoral laws. In many countries with weak rule of law, the most common reason why elections do not meet international standards of being “free and fair” is interference from the incumbent government. Dictators may use the powers of the executive (police, martial law, censorship, physical implementation of the


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election mechanism, etc) to remain in power despite popular opinion in favour of removal. Members of a particular faction in a legislature may use the power of the majority or supermajority (passing criminal laws, defining the electoral mechanisms including eligibility and district boundaries) to prevent the balance of power in the body from shifting to a rival faction due to an election. Non governmental entities can also interfere with elections, through physical force, verbal intimidation, or fraud, which can result in improper casting or counting of votes. Monitoring for and minimizing electoral fraud is also an ongoing tasks in countries with strong traditions of free and fair elections. Exploring the argument further, Wanyande (1987:80), posit that elections represent a way of making a choice that is fair to all- one that leaves each member of the electorate with the reasonable hope of having his alternative re-elected. An election is therefore an empirical demonstration of a citizen’s liberty and political choice. It is for this that it serves to legitimize government. Properly managed, elections provide a veritable platform for conflict resolution and transformation outside the battlefield and without bloodshed. Hence the requirement of elections to be free and fair. Unfortunately, while much lip service is paid to the norms of free elections, too often a reality election is a travesty of democracy’. Devoid of the attributes of freeness and fairness, elections become an empty shell, lacking any real democratic content. Elections ideally reflect and impact on the orderliness within society, and the stability, credibility and possibility of rejuvenating the political leadership through the change of decadent members of the elite and the advancement of the non-elite elements. Economically, elections, properly conducted, promote an environment of capital mobility and higher productivity, especially in a post-authoritarian and post-conflict political order in dire need of reconstruction and development. Villalon (1998:16) rightly argued, “Elections themselves may be a strategy for maintaining power and many African elections… have been clearly intended to forestall change, or even strengthen the status quo.” Elections as political stratagems for pursuing these agendas produce quasi-democracies in West Africa. In liberal democratic theory, an election is a viable mechanism for consummating representative government. Apart from facilitating leadership succession, it promotes political accountability, citizens’ participation and give voice and power to the people (Agbaje & Adejumobi 2006:25-44). In other words, elections are an expression of the people’s will. John Stuart Mill, in his treatise on representative government (Mill 1948:161-174) noted that: “the meaning of representative government is that the whole or some numerous portions of them, exercise through deputies periodically elected by themselves the ultimate controlling power, which in every constitution must reside somewhere. This ultimate power, they must possess in all its completeness”. According to Ake (2000), elections are a perversion of democracy because they connote popular but not delegated power. The nostalgia of direct democracy which Ake recounts is problematic in a complex and completed post-modern society. In any case, liberal democracy is in crisis in many countries, developed and developing (Adejumobi 2002). In a nutshell, elections are fast becoming a shadow of democracy (Adejumobi 2000). Democracy Democracy means different things to different people: a platform for power contestation and not the least a class struggle. Furthermore, the end of the Cold War has privileged liberal democracy globally as the most credible basis of governmental legitimacy (Adelaja, 2007).


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In the views of Dahl, R. A. (2000) “within the enormous and often impenetrable thicket of ideas about democracy, it is possible to identify some criteria that a process for governing an association would have to meet in order to satisfy the requirement that all members are equally entitled to participate in the association’s decisions about its policies”. Dahl believes, at least five such standards abound. These are: effective participation, voting equality, enlightened understanding, exercising final control over the agenda and inclusion of adults. A democratic society, Dahl asserts, produces desirable consequences, avoiding tyranny, provision of essential rights, general freedom, self determination, moral autonomy, human development, protection of essential personal interests, political equality; in addition, he noted, modern democracies are peace-seeking and prosperous. According to Makinda, S.M. (1996), “there is no clinical or scientific definition of liberal democracy, but some of the main features are free competition among political parties, periodic elections, and respect for fundamental freedoms of thought, expression, and assembly. There is plenty of evidence that such a system of government has the potential to encourage political stability and accountability and to help consolidate public institutions”. Inspite of the absence of a universally acceptable definition of democracy, Makinda’s description seem to be one of the most cogent and coherent. In fashioning out a working definition he noted: “in general terms democracy can be seen as a way of government firmly rooted in the belief that people in any society should be free to determine their own political, economic, social and cultural systems. But the form it takes can vary according to particular circumstances of every society. Indeed, whereas the principles of democracy are universal, their expression and practice cannot be transplanted wholesale from one community to another” Makinda also asserts that most African societies do not have a tradition of liberal democracy, and those leaders who took power after independence destroyed whatever checks and balances their constitutions contained. At present, democracy has been transformed from its classical notion underpinned by the assumptions of government by the people; common good, the rationality of man; and the contradictory goal of liberty and equality (Rejai 1967:203) Democratic peace theorists are of the opinion that non-democracies are societies in which violence and coercion prevail. In such societies, they observed, highly conflictive relations make internal democracy precarious, especially where there is strong opposition. The result is ‘mistrust and fear within and outside government’ (Maoz & Russett 1993:625). Consequently, a non- democratic state apparently lacks the institutional and behavioural constraints for war. It is argued that even a bad democracy ‘…does not give the leader of the government the incentive that an autocrat has to extract the maximum attainable social surplus from the society to achieve his personal objectives’ (Olson 1993:571). Huntington (1984:214) advances conditions for the institutionalization of democracy, namely: higher levels of economic well-being; the absence of extreme inequalities in wealth and income; greater social pluralism, including particularly a strong and autonomous bourgeoisie; a more market oriented economy, greater influence vis-à-vis the society of existing democratic states; and a culture that is monistic and more tolerant of diversity and compromise. In another sense, democracy refers to the control of an organization by its members, who take part in the making of the decision. In other words democracy implies majority rule and respect for fundamental rights of the people. Nwoye (2001) maintains that democracy signifies political system dominated by representatives either directly or indirectly chosen by the people. Ntalaja (2000:14), succinctly explains democracy as a continuous process of promoting equal access to fundamental rights. According to him, democracy cannot be negotiated as a new bargain to developing


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nations; rather, it has to be richer than the liberal model, and should be capable of leading to a development strategy that is homegrown, people-centred and oriented towards eradicating poverty. In the same vein, Ake (2001), argued that the real democratic culture that can bring about real development in Africa is the one sustained by economic and political development based on decentralization of power, and reliance on indigenous communities to provide some refuge from the centralized state. Baker (1995) is of the view that democracy is a political system that operates on the basis of popularly elected or appointed representatives to run the affairs of the state. Okafor (1991) notes that democracy is premised on effective representation and participation, adding that while the specificity of democracy differs cross-culturally, there are still basic underlying features that are common and genuine to all democratic processes. Yet, Appadorai (1975:137) describes democracy as a system of government under which the people exercise the governing power either directly or through representatives periodically elected by them. Democracy is a form of government as well as a way of life, goal, ideal and philosophy which guarantees freedom of the majority and rights of the minority. The World Book (2001), maintains that democracy has certain tenets which include: free elections, majority rule, participation of political parties, unimpeachable judiciary and parliament. Democracy is an embodiment of the will of the people. Bjornlund et al (1992) put it succinctly thus: ‘However, one defines democracy; it is irreducibly a system of government in which the authority to exercise power derives from the will of the people.’ Democratic Consolidation As the new democracies that substituted authoritarian rule in country after country during the seventies and eighties grow out of infancy, social science observers have shifted their focus from the analysis of transitions out of authoritarianism to problems of democratic consolidation. Current queries center on how really democratic the post-transition political institutions are on their long-term prospects; ie., whether they are prone to succumb to a new round of authoritarian rule or whether they will prove to be stable or “consolidated”. The modalities assumed by the transition, the way in which political actors are organized, and the various political institutions that emerge or re-emerge during the course of the transition are understood to make a significant difference for a long-term viability of newly democratized regimes (Linz, 1985). The overall change from an authoritarian to a democratic regime contains, as Guillermo O’ Donnell & Valenzuela, (ny) notes, not one but two transitions: the first leads to “installation of a democratic government,” and the second to the “consolidation of democracy”, or to “the effective functioning of a democratic regime”. There is a complex relationship of continuity and discontinuity between the first and second transitions. The building of a consolidated democracy involves in part an affirmation and strengthening of certain institutions, such as the electoral system, revitalized or newly created parties, judicial independence and respect for human rights, which have been created or recreated during the course of the first transition. In this sense, the process of change from one transition to the other is a lineal one. But in many ways there is no such linearity; building a consolidated democracy very often requires abandoning or altering arrangements, agreements, and institutions that may have facilitated the first transition by providing guarantees to authoritarian rulers and the forces backing them but that are inimical to the second. Scholars have used different definitions of democratic consolidation. These definitions are based on two conceptions of democracy. One is a “minimalist conception”, emphasizing procedural or formal democracy. The other is a “maximalist conception,” focusing on the outcomes of politics, such as institutionalization of political institutions, social justice, and economic equality. Based on the


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Schumpeterian conception of democracy (that equates democracy, with regularly held electoral competition), Schimitte (1992) defines the minimalist conception of a consolidated democratic regime as “the process of transforming the accidental arrangements, prudential norms, and contingent solutions that have emerged during the transition into relations of cooperation and competition that are reliably known, regularly practiced, and voluntarily accepted by those persons or collectives, that participate in democratic governance. To Linz, a consolidated democracy is one in which “none of the major political actors, parties, or organized interests, forces or institutions consider(s) that there is any alternative to the democratic process to gain power and that no political institutions or groups has a claim to veto the action of democratically elected decision makers… To put it simply, democracy must be seen as “the only game in town.” In comparison with a minimalist conception of democracy, many scholars adopt “out-come-oriented conceptions” of democracy, or a maximalist conception of democratic consolidation. These scholars argue that both political and socioeconomic democracy is needed for a country’s democracy to be consolidated. This conception includes not only procedural or formal democracy but also substantive democratic elements, such as guarantees of basic civil rights, democratic accountability and responsiveness, civilian control over the military, democratic and constitutional checks on executive authority, and punishment of occupational and human rights abuses (Im, 1996:3). According to Diamond (ny:162), democratic consolidation means the quality, depth, and authenticity of democracy in its various dimensions has been improved: “political competition becomes fairer, freer, more vigorous and executive; participation and representation broader, more autonomous, and inclusive; civil liberties more comprehensively and rigorously protected; accountability more systematic and transparent. Linz, et al (1995:79) analyse the extent of democratic consolidation of newly emerging democratic regimes by using the following criteria:

- Structural: this overlaps somewhat with our definition of democracy. It posits that no significant reserve domains of power should exist that prelude important public policies from being determined by the laws, procedures, and institutions that have been sanctioned by the new democratic process.

- Attitudinal: when a strong majority of public opinion acknowledges that the regime’s democratic procedures and institutions are appropriate and legitimate, and where support for anti-system alternatives is quite low or isolated from the prodemocratic forces.

- Behavioural: when no significant national, social, economic, political, or institutional actor spends significant resources attempting to achieve its objectives by challenging the regime’s institutions or rules with appeals for a military coup or revolutionary activities, and when the prodemocratic forces abide by its rules and do not engage in semi loyal politics.

As Huntington (ny) insists, compared with a maximalist conception of democracy, the minimalist conception provides the analytical precision and empirical referents that make the concept a useful one. Much recent empirical research on democratization also favours a procedural or minimalist conception of democracy (Dahl, 1971). However, many scholars with a maximalist conception of democracy also have tried to broaden the conception of democracy and to strive for qualitative development of democracy in the world. After all, the two conceptions are quite heuristic in that their usage depends on the scholar’s own point of view, as well as on his or her research goals.


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Clapham & Wiseman (eds) (1995:227-228) bluntly suggest that “the consolidation of democracy in Africa also requires a demonstrable relationship between political accountability and the quality of government. Here, as with economic development, there is a potential clash between the principles of accountability which should, in the long term, create more effective systems of government geared to the public welfare and in the short-term expedients, such as political patronage, to which elected regimes may be drawn”. Theoretical Framework There are many theories of democratic consolidation. These include institutionalization and informal rules. Institutionalization: Some scholars think that the process by which a democracy becomes consolidated involves the creation and improvement of secondary institutions of the democracy. Linz and Stephan’s thesis (ny), for example, is that democracy is consolidated by the presence of the institutions supporting and surrounding elections. (for example the rule of law) Informal rules: O’Donnell (1988), believes that the institutionalization of electoral rules is not the most interesting feature of democratic consolidation. His approach is to compare the formal institutional rules (for example the constitution) with the in formal practices of actors. Consolidation on this view is when the actors in a system follow (have informally institutionalized) the formal rules of the democratic institution. This study adopts the informal rules approach. This is because, the inability of Nigeria to meet the challenges of rising expectations within the polity as well as lack of accountability and active citizenship have undermined democracy in the country. The operational norm of democracy in Nigeria is less about political competition, but is more about public accountability and active citizenship, and the ability to adhere to the norms has chipped away at governance. Other factors include the inability of the political leaders to create an environment of shared ownership in the practice of governance and in the generation of ideas needed to govern as well as inability of the state to meet the challenge of rising expectations within the polity. The increase in the gap between the rich and poor must be addressed and the Millennium Development Goals attained for government to be functional. (Kalu, N.K,2O11). Consequently, the research posits that what negate democratic consolidation in Nigeria is the failure of the actors to abide by the norms of democratic governance. As a corollary to this reality , therefore, the study asserts that the antidote to the prevailing stalemate is strict adherence by all politically relevant strata of the Nigerian state to the universally acclaimed of democratic governance. A critique of 2011 elections in Nigeria The 2011 Elections The 2011 General Elections of the Federal Republic of Nigeria were the fourth elections since the country’s return to democracy in 1999. The original calendar for the elections foresaw three consecutive Saturdays from 2 to 16 April. However, these dates were subsequently modified for different reasons. Elections took place in the following order: on 9 April for the National Assembly (Senate and House of Representatives) on 16 April the presidential office and on 26 and 28 April, and 6 May for governorships and State Houses of Assembly. The leading presidential candidates were president Goodluck Jonathan of the Peoples Democratic Party (PDP), the former Head of the Economic and Financial Crimes Commission (EFCC) Nuhu Ribadu of the Action Congress of Nigeria (ACN), the former Head of State, retired General Muhammadu Buhari of the


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Congress for Progressive Change (CPC) and the then Governor of Kano State Ibrahim Shekarau of the All Nigeria Peoples party (ANPP). On 2 April, on the Election Day for the National Assembly during a live broadcast at around noon, the INEC chairman, Professor Attahiru Jega informed the public that due to the late arrival of the result sheets in many parts of the country, the National Assembly Elections was postponed to 4 April. On 3 April in another televised speech, Prof. Jega announced that after consultations with the political parties, all the elections were shifted by a week from the original schedule. The new dates were: 9 April National Assembly poll, 16 April Presidential elections and on 26 April. Governorship and state House of Assembly elections. The need to re-print a number of ballot papers was announced on 7 April and caused a third postponement for several Senatorial Districts and Federal Constituencies. Despite the explosion of a bomb on 8 April at the INEC office in Suleja, Niger state that killed eleven people, the repeated National Assembly elections on 9April proved that the decision to postpone the voting was favorable to a positive and peaceful conduct of the Election Day. On 16 April, the presidential elections were conducted in a generally peaceful and orderly, manner with enthusiastic voters, committed to patiently attend accreditation and voting from early in the morning. President Goodluck Jonathan of the Peoples Democratic Party (PDP) won the election, defeating his closest rivals, Major-General Muhammadu Buhari of the Congress for Progressive Change (CPC) and Mallam Nuhu Ribadu of the Action Congress of Nigeria (ACN). From the results released, Jonathan polled a total of 22,350,242 votes to beat Buhari, who had 11,914,953 to a distant second, while Ribadu of ACN polled 2,049,357. Shekarau of ANPP polled 1,624,543 votes (Nigeria Tribune, 18 April 2011 p4). In their various responses to the election, both domestic and foreign observers and commentators described the election as credible. According to the NLC “the presidential and National Assembly elections was the first controversy-free, all inclusive and demonstrably fair and just elections in the country since colonial times (Nigerian Tribune 18 April 2011p3). In a statement entitled: “salute to Nigerians in the aftermath of the presidential elections, “the NLC applauded the sacrifices of the Nigerian populace, who spent hours queuing for accreditation, for the vote, and finally staying behind for the vote count to ensure that their precious votes count”. Observers from the European Union, the Commonwealth and the United States, National Democratic Instituted (NDI), made the outcome of their observation expressing their views on the election process. As M.S, Robin Carnahan, secretary of state of Missouri, United States said, “the presidential election was the second in a series that appears to mark a turning point for African’s most populous country”. While presenting his team’s preliminary report, Mr. Alojz Peterce, a former prime minister of Slovenia who was chief observer of the 141-member EU EOM stated that “the presidential elections (last Saturday), means an important step in strengthening democratic elections in the federal republic of Nigeria”. Ms Mariya Nedelcheva, the head of the four-member strong delegation of the European parliament noted that “the elections are a convincing proof that the Nigerian authorities, institutions and electorate, are determined to remain owners of their destiny and to run even better elections the future”. Another preliminary report titled: “Nigeria shakes off stigma of flawed elections,” presented by the chairman of the Commonwealth observer group, Mr. Festus Mogae, a former president of Botswana, said Nigeria has now “discarded the notion that the country can only hold flawed elections”… notwithstanding the organizational deficiencies that resulted in the April 2 National Assembly elections being aborted after they had started, and in spite of persistent procedural inconsistencies and technical


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shortcomings, the elections, the elections for the National Assembly and the presidency were both credible and creditable and reflected the will of the Nigeria people”. Mogae said. Another preliminary report presented by International Republican Institute (IRI), an American-based body that has monitored more than 135 elections in 40 countries asserted that “the overall conclusion is that in at least four areas, the election was different from the previous three elections”. As Ms Constance Newman, a member of IRI’s Board of Directors observed the areas to include: “the overall integrity of the electoral process, INEC’s professionalism, the role of security agencies an reduction in cases of election-related violence”. From the exposition done so far, there was a consensus of opinion among domestic and foreign observers about the sanctity of the 2011 general elections as observable pit falls were not overwhelming as to affect the judgment pendulum to swing in the negative direction (the Nation, April, 19, 2011 p7). However, some opposition parties refused to accept the verdict of the election results as announced by INEC. The first party to decline endorsement of the results even before it was formally declared was the Congress for Progressive Change (CPC). The party raised posers about the results from the states in the south-south and south-east. The CPC also criticized results from 22 states and the Federal Capital Territory (FCT). In the petition adopted by the agent of the Action Congress of Nigeria (ACN), Dr Garba Abari at the collation centre at INEC Headquarters, Abuja, CPC demanded a fresh manual re-calculation of the results nationwide and eventually challenged the results in court contrary to its earlier resolve (the Nation, April 19, 2011, p5) The announcement of the results and the concomitant grievances especially on the part of the supporters of CPC, dovetailed into a state of ambivalence as violence broke out in Kaduna, Gombe, Adamawa, Yobe and Bauchi states. It later spread to other areas in the North as supporters of CPC went on rampage destroying lives and property. Many people were reported killed and properties worth billions of naira destroyed in the violence that assumed a religious dimension. Churches and mosques were not spared in the melee as they were set ablaze by hoodlums (Thisday, April 20, 2011 p 20). Despite the paradox of primordial reactions that followed the outcome of the 2011 elections, the elections could be said to have marked a democratic leap-forward in the annals of elections in Nigeria

Conclusion There is no gainsaying that electoral processes offer a safe, predictable, rule-bound method for arbitrating political and social conflicts through the selection of representatives. When elections are credibly conducted, they imbue the government with legitimacy garnered by the consent of the people, improving the capacity of the state to ensure community security through legitimate authority under the rule of law, and to improve the levels of human development through effective governance. Credible elections create legitimate governments that enjoy popular support for programmes and policies. On the other hand, precisely because election processes are contests through which political power is retained or pursued, and social differences are highlighted by candidates and parties campaign for popular support, they can often generate vulnerabilities for the escalation of conflict into violence. This can mean “development in reverse” as incidences of violence undermine government legitimacy, scare away domestic foreign investors, and result in low levels of social trust.(Hoeffler, A and Reynal-Querol, M(2003). Since it is widely understood that the ultimate guarantor of social peace is robust democratic institutions such as elections, in order to accelerate democratic consolidation drive in Nigeria, incumbent government must provide an unbiased political climate for all political parties and contestants. The so-called “consensus” candidates imposed on parties during façade primary elections should be discountenanced.


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Zero-sum game which makes politics to assume a war-fare dimension should be de-emphasized. Adequate security mechanisms should be put in place to mitigate violence before, during and after elections. Adequate planning is necessary to enhance the prospects of free and fair election, Abdullahi, Y.S (2008). Candidates and political parties who feel aggrieved with the outcome of the election should seek constitutional means of redressing their disenchantment.

Above all, the national government, the political parties and other election stakeholders must display unequivocal commitment towards free, fair as well as credible elections and democratic consolidation. References Abdullahi,Y.S(2008) Planning Free and Fair Elections in Nigeria in Omodia,SM(2008) Managing

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The Effect of Performance Appraisal in an Organizatin

Mrs. Ekwochi Eucharia Adaeze, (MBA, B.SC.) Aipma Department of Business Administration

Enugu State University of Science and Technology, (ESUT), Enugu Abstract This study is on the effects of performance appraisal on productivity in an organization and it is geared towards examining the effects of performance appraisal on the productivity of employees in organization. The objective of this study is to investigate the performance appraisal techniques adopted in an organization, to examine the usefulness of performance appraisal programme in an organization, to find out the various environmental variables affecting performance appraisal programs in an organization, to identify the pitfall associated with performance appraisal exercise and provide solutions to them. In the course of this study, data were collected from primary and secondary sources and it was analyzed. The researcher made use of survey design. In view of the findings, it was discovered that participation of employees in appraisal exercise and the use of performance appraisal resulted to an increase in output to the organization and higher standard of living to the employee because of promotion given and other necessary reward that motivated the employee to work hard. At the end of this work the researcher was able to conclude that problem with the organization’s appraisal system lies with implementation rather than method. Consequently, since the intention of the research is not to recommend an entirely new method but to enhance the relationship between the currently used method and its objectives, the researcher conclusion is there summed up in the phrase. Better implementation of the organization’s appraisal method is needed so as to be able to match practice with purpose on an intensive advice that the organization should provide an intensive training programme for appraisal. my final conclusion draws on the major highlight of the study of the revelation that subordinates are not involved in setting goals and objectives on which they are appraisal.

Key Words: Performance, Appraisal, Organization and effects

Introduction The principal purpose of acquiring human resources in any organization is to aid in the actualization of the organizational objectives. However, productivity targets vary from reality or actual performance because of ranges of variables. Environment: human technology, organizational and so on. The task of management is on these variables which have constituted themselves as obstacles to productivity in opportunities for productivity. Hence herald a tedious task of personnel managers in any organization. Certain fundamental question needs to be asked. How do we acknowledge deviation? What should we focus on as fundamental in our assessment? When should we appraisal and how frequently should it be done? Is there any correlation between performance appraisal and productivity? How do we appraise employee’s performance maximum productivity? These and many more questions keep on begging for attention and or solution, most personnel foundation are contingent upon performance appraisal. Performance appraisal helps to evaluate training needs, determine the equitability of compensation package, serve as basic of executive the maintenance and separating functions etc. yet the veritable positives of performance appraisal in personnel management function is being riddled or abused. The NBL and other organization in Nigeria have persistently shoe with rigor and vigor to effectively and efficiently utilized performance appraisal as an instrument or a basic ingredient for productivity. Statement of Problem


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In Nigeria most of the performance appraisal exercise /program are not well designed and focused. Management of organization tends to view it as a punitive measure. This makes it lose its objective sand focus, performance appraisal no longer seek to actualize its objective of correcting deviations, hence increasing productivity and jettison all hindrance that tends to hinder productivity. But it is being used as and jettisons all hindrance that tends to hinder productivity. But it is being used as a tool for subordination oppression, victimization and exploitation. Despite the veritable return at performance appraisal to many organizations, the societal value system has subdued it objectivity and its attendant’s outcomes. This makes most of our performance more subjective than objective. Objective of the Study

The objective of this study is: (a) To investigate the performance appraisal techniques adopted in an organization. (b) To examine the usefulness of performance appraisal programme in an organization. (c) To find out the various environmental variables affecting performance appraisal programs in an

organization (d) To identify the pitfall associated with performance appraisal exercise and provide solutions to

them. Review of Related Literature According to Ubaka 1978:166 said that THE CONCEPT OF PERFORMANCE APPRAISAL in every work setting, performance need to be evaluated, as all efforts are supposed to be geared towards achieving organizational objectives. Mayfield (1960:26) seen performance appraisal as an attempt to thinks clearly about each person’s performance and future prospects against the background of his/her total work situation. In the same direction Ubaka A (1976:188) define it as a system used to review the individuals performance during a set period to identify his areas of strength and weakness and establish target for his/her for achieving within the overall corporate objective of the organization. He assets that performance evaluation is not just an inquisition but a means to developing the employees on his/her job. Performance appraisal is a process of formal evaluation of employee’s action over a period of not more than a year. It involves three processes a subordinate is assigned a problem area and gains experience in recognizing crucial faces of it. Gradually assumes primary responsibility for his areas smooth functioning and receives a performance evaluation from his superior (Platz A 1975:75) Monappe cital (1998:208) copiers that “performance appraisal is a systematic and objective way of judging the relative wrath or ability of an employee in performing hi task it primary help to identify those who are performing their assigned task well and those who are not, and the reason for such performance. This depicts that performance appraisal is not end itself but a means to an end, i.e it seeks not to be judgment but corrective performance appraisal is important both to the organization, it provides information about job performance and potentials. It helps responsibilities on the basis of competence and to plan relevant training and development it also enable the organization to reward the individual adequately and to learn of his views and aspirations concerning his own career. To the employee, appraisal help employee to know the role expected of him/her in the achievement of the corporate objectives. It also helps the employee to know the standard of performance required so that they can evaluate their own performance. Performance appraisal also helps the employee to appropriate his prospects and enable employee to organize him/herself development Platz, A 175:76

The importance of performance appraisal can be condensed thus: it is necessary in order to allocate resource in a dynamic environment, reward employees, give employee feedback about their work, and maintain fair relationship within groups (each and develop employees and comply with equal opportunity regulations. Appraisal systems are therefore necessary for proper management and for employee development (Davis Kenth 1981:474). Objective of performance appraisal various scholar and practicing


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managers have viewed the objective of performance appraisal in varied ways. Some conclude that it is a punitive /judgmental, which others view it as a corrective measure.

Kindall, A.F. et al (1963:97) states that “approval of performance is geared towards developing people in two ways:

Providing the organization with people qualified to step into higher positions as they open up. Serving as a help to the individual who wished to acquire the knowledge and ability he needs to

become eligible for a higher job: Mcaregor D.(91972:5) stated three performance appraisal plans designed to meet three objectives.

To provide systematic judgment to back up salary increases, promotion, transfer. To tell a subordinate how he is doing and suggested needed changes in his behaviour attitudes

skills or job knowledge to let him/her know where he/she stand with the boss Use as a basis for the coaching and counseling of the individual by the superior.

Appraisal procedure therefore seeks to provide answers to questions such as: How am I doing? Where do I go from here? What are my strength and weakness? What do I need to move from here to there? These question seen to be a most recurrent action of almost every organizational member providing answers to them will be of great value to the organization, as employee will always be part and weighted down by these questions: appraisal provides an inventory of persons resources, and serve as a meant for testing personnel procedures. According to APPLE R 1959:285 said that it benefits of performance appraisal is that both the employee as well as the organizations benefit from performance appraisal. According to apple by R (1959: 285), an emp0loyee benefits from appraisal when he understands his strength and weakness and his potential for future development is indicated. The further listed a catalogue of benefits an employee’s gain as a result of appraisal thus.

Aids in increasing morale Increasing impudence in fairness of management Aid in uncovering hidden talent Reveals covered weaknesses Serve as a base for future growth Aids increasing motivation

In the same vein, Apple by R. further states that an organization benefits from appraisal “of information obtained about total management resources available for planning and deciding on the needs of training and management development”. Therefore an organization benefits from appraisal in the following ways:

a) It facilitates recognition and stimulation of hidden talents. b) It enables the management to know the employee within the organization. c) It enables the management to become aware of the strength and weakness of its staffs. d) Provides accumulated records from which personnel decision may be base. e) It helps to improve relation between management and staff. f) Provides information for inservice training in synopsis, both the individual and the

organization that embark on appraisal seeks to asses for success i.e be love in continuous improvement.

Pitfalls of performance appraisal:


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According to Oberg W (1981:290) formal performance appraisal is familiar to most Managers either from painful personnel experience or from the growing body of critical literature”. In his view, performance appraisal programme demand too much from supervisions. They obviously require at least periodic supervision observation of subordinate’s performance. The typical first time supervision can hardly know in a very adequate way which each of his/her numerous subordinates are doing. Piguish, Petal (1981:291) observed that all student of rate is i.e being either too lenience or too tough constitutes a limitation to successful appraisal”. Consequently, standard and rating tend to vary widely an often, unfairly. Some departments have tightly competent people, others have low competent people. As a result employee’s receives high or low rating depending on the competence or lenience of the rate. Personal values and bias also limits the effectiveness of the appraisal programs. This term replace organizational standards. However this does not mean that appraisal lacks standards but that the standards they are sometimes wrong ones. The situations where a subordinate may be unfairly rates so that he will not promoted out of the rate department Ubaka A(1981) believe more often than not some right bias indicates favoured treatment for some employee”. There is also a communication gap between the employee and the appraisal by which employee think they are being judge are different from these, their superior actually use improving performance and developing people are two of the most common appraisal plan goals”. It seems obvious that the appraisal process cannot go for forward attaining the goals unless there is effective communication between the evaluator and the person being evaluated. No performance appraisal system of causes can be very effective for management or any other purposes until expected of them and by what criteria they are being judged one of the most notable limitation of performance appraisal system of causes can be very effective for management decisions, organizational development or any other purposes until expected of the most notable limitation of performance appraisal system is the complete reluctance of the supervisors to lake the time and trouble to go the rudiments of preparing the periodic appraisal of each of the subordinates and especially to discuss the result with them. There may be sound reasons according to McGregor for this reluctance, as many supervision are uncomfortable when they are placed in the position of playing with God. Another limitation that operators practice is that performance appraisal is so often made recorded filed and forgotten. Yet personnel decisions are made as a late time without reference to those appraisal, despite the fact that the whole purpose of performance appraisal is to improved the employee’s performance by promotion, favourable transfer merit wage and salary increase. Thus, if performance appraisal can be more clearly related to performance standards expected on each job, it is also likely to be criticized as wholly subjective because such traits as dependability and initiative are being evaluated. Another limitation of performance appraisal is the difficulty of establishing performance standard for professionals and technical employees such as scientists and engineers. In spite of these limitation and due to the absent of an alternative system performance appraisal as presently practiced will continue to be used. Techniques of performance appraisal Formal performance appraisal programme have often yielded unsatisfactory results. This may be partly due to the manner which and partly as a result for failure to close a particular approach or method that most adequately suit the objectives. There are many techniques of appraisal some of these are simple while others are more complex there by, requiring well trained appraise who can effectively use them. The most commonly used appraisal techniques include:

(a) Field review (b) Essay appraisal (c) Critical incident appraisal (d) Ranking method (e) Assessment


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(f) Work standards approach (g) Forced – choice rating (h) Graphic rating scale (i) Check list method

MODE Subordinate participate in the setting of performance targets increases the commitment to and

success in establish them. Constructive attitudes by supervisor and outcome not predetermined. Participation in discussion and decision of the subordinate should be of high level. Material approach to solving problem Opportunity for self appraisal encourage son that managers can be spared to develop himself. Appraisal must be a regulate activity of the organization (e.g end of a finished product car

furniture) refer to suit the needs of the individuals or work groups. Salary review must be separated schemes that try to deal salary will not work out effectively. In

the case shown below are part of performance:

Management by objective (MBO) To accomplish anything, know whether or not you have done so, compare achievement, with objectives. MBO is an effort to be fair and reasonable to predict performance and judge it more carefully, and presumable to provide individuals with an opportunity to b self motivating by setting their own objectives Konntz and O’Donald noted that one of the most important and fascinated development in the management scene has been the establishment of programme of management by objectives. Realizing how difficult and cumbersome, it is for managers to accomplish ambiguous goals quantitatively or qualitatively objectives are set for managers which they are required achieve. Peter Drucker, a proponent of management by objectives is perhaps that it makes it possible for a manager to control his own performance. He further asserts that self control means stronger motivation implying the describe to always achieve or do the best rather than just do, fast enough to by. He believes that the importance of MBO is higher performance goals and also broader vision. Doglas McGregor, on his part said that one of the cause of failures of appraisal system stems from the facts that supervisors dislike plying God that is making judgment about another man’s worth. He recommended instead than an individuals should set his own goals, checking them out with his superior, and should use the appraisal sessions as a counseling device. Thus, the subordinate achieve his own goals instead at dehumanized inspector of products. A critic of the MBO programme Harry Levinson, while not agreeing with McGregor that the failure of appraisal steam from playing God or feeling in human said that managers experience their unconsciously is felt to be hurting or destroying the other person. According to him, MBO process put the reporting manager in much the same position as a rate in a muze, who has choice between only two alternatives, he further stressed that because the technique is based on a reward punishment psychology; the process of MBO in combination with performance appraisal is self defeating. Arguing further, he said that method simply serves to increase pressure on the individual. However, Levinson Harry in all critics against MBO does not reject the process itself but does argue that the technique can be improved by examination of underlying assumption and by considering the individual personal goals first. In spite of criticism about MBO, the most effective objective coaching counseling and motivational purpose call for the use of MBO approach if it involves real participation, appears to be most likely to an inner commitment to improved performance. Also, it performance


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appraisal information is to be communicated to subordinate either in writing or in an interview, MBO proves to be one of the most effective techniques. Other advantages MBO includes:

a) Through MBO, assessment becomes an integral part of the organizational planning and continuo system.

b) The commitment is a powerful motivational force. c) The emphasis is no work achievement and not on the main personal characteristics. d) The cycle is highly participative e) It goes further towards the ideals of self appraisal and self direction.

However, MBO is still not without disadvantages. Some of its disadvantages includes

(a) With MBO, the total process, especially the counseling, is very time consuming. (b) Special circumstances (e.g) change in economic environment) too often make the objective

unrealistic (c) It encourages an emphasis on the short term the selection activity. (d) Research shows that many individual are not self directive they want to be told what to do. (e) It can degenerate into a pseudo – participative exercise, where the realities of direction are

firmly with management. Fundamental of successful appraisal (programme) According to Appleby R (1973:120) the following are guidelines of good appraisal programme.

All levels of management, unions and employees should accept to scheme and understand the purpose and nature.

Line managers should shoulder the final responsibilities of appraisal and they should properly implement the scheme and the system reviewed periodically and necessary changes.

According STONE R (1991:80) also says that performance appraisal versus productivity is the sole aim of performance appraisal, is correct deviation (E any from set deviations it is not primitive in nature it seeks to dictate variance from standard, hence provide measure via which actual performance can be improved upon. This measure could be either training the step to jettison hindrance that hinders employee productivity.

Research Design In this research work, the researcher made use of survey design and also make us of both primarily and secondary data. The primary data used were personal interviews, observations and structured questionnaires The secondary data were collected through the use of the following libraries.

Personal library Enugu State Library and other writer ups by other researchers.

Discussion of findings Among the objective of this study was to find out why most of the organizations fail in appraisal the performance of their employee. It means human resources, these resource are what human beings used in the production process, they could still be called employees or provide of labour. Again this research work shall be of great benefit to the management of any organization this in business if they apply the recommendation, prefer solutions which when applied will improve the role performance appraisal plays in, increasing productivity. It is also beneficial to other firms in various industries as it will avoid the


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opportunity to adequate understand, appreciated and utilize performance appraisal for the turnaround of the organization for the better. In every work setting, performance needs to be evaluated as all efforts are supposed to be geared toward achieving organizational objectives. Performance appraisal is important both to the organization, it provides information about job performance and potentials. No wonder Knidau, A.F. et al (1963:97) states that approval of performance is providing the organization with people who are qualified to step into higher positions as they open up the way. Recommendations In view of the findings, the researcher therefore gives the following recommendations that the performance appraisal in the company should be divorce from salary action separate appraisal should be held for different purpose. A situation where a manager would be helping on employee’s to improve his performance while at the same time presiding as a judge over the same employee’s salary level is only idealistic and impartial. Conclusion At the end of this project work the researcher was able to conclude that problem with the company’s appraisal system lies with implementation rather than method. Consequently, since the intention of the research is not recommend an entirely new method but to enhance the relationship between the currently used method and its objectives, the researcher conclusion is there summed up in the phrase. Better implementation of the company’s appraisal method is needed so as to be able to match practice with purpose an intensive advice the company to provide an intensive training programme for appraisal my final conclusion draws on the major highlight of the study of the revelation that subordinates are not involved in setting goals and objectives on which they are appraisal.

Reference

Harold Mayfield (1960): Defense of Performances Appraisal, March – April No 60206 pp.26. Nwachukwu C.C (1980): Personnel administration Concept and Situatio,. (Published work). Rogers Meyer (1981): Personnel Administration, McGraw Hill Ltd., 8th Edition pp 290. Loan et al (1968): New Context of Performance Appraisal, London PD. Publication LTD 2nd Edition,

pp.76 – 90. Davis K (1981): Modern Business Administration, John Willey and Sons pp. 80. Agbo, O.G (2002): Human Resources Management, Onitsha. Base Printing and Publishing Limited.

Onyeka, K.J (1999): Business policy an introductory analysis, Enugu, New GenerationBooks.


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A Novel ‘Stakeholder Sustainability Knowledge Management’ (SSKM) Model: Developing Linkages of Stakeholder Management, Knowledge Management and Triple Bottom Line

Performance

Egbunike, F.C. Department of Accountancy, Faculty of Management Sciences

Nnamdi Azikiwe University, P.M.B.5025, Awka Nigeria [email protected] DL:+2348132850409

Echekoba, F.N. Department of Banking & Finance, Faculty of Management Sciences

Nnamdi Azikiwe University, P.m.b.5025, Awka Nigeria [email protected]; [email protected] DL:+2348036146005

Udeh, F.N. Department of Accountancy, Faculty of Management Sciences

Nnamdi Azikiwe University, P.M.B.5025, Awka Nigeria

Abstract This paper proposes a novel ‘Stakeholder Sustainability Knowledge Management’ (SSKM) model for corporate managers by integrating three performance dimensions (Stakeholder management, knowledge management and triple bottom line). These concepts have separately been discussed in management literatures as critical success factors for sustainable performance of organizations. As corporate stakeholders absorb knowledge (economic knowledge, social knowledge and environmental knowledge) to judge corporate behaviour, it is proposed that a knowledge management system for re-absorption and utilization of such knowledge by organizations would ultimately strengthen triple bottom line performance of the corporation. Using a sample of 56 respondents, comprising 21 corporate managers and 25 academics, this study examined the connection between stakeholder management, knowledge management and sustainable performance. Three hypotheses were formulated and tested in the study. In addition to descriptive statistics, Two-Sample Kolmogorov-Smirnov test was used in analyzing the primary data. The results of empirical data analysis proved that knowledge is considered as a veritable and succinct organizational resource. And a system for assessing stakeholder needs based on the knowledge absorption process would ultimately meet triple bottom line performance of sustainable organizations. Based on this a framework for the absorption and utilization of such knowledge was proposed.

Keywords: Knowledge Management, Triple Bottom Line, Stakeholder management. Introduction The view that organizations are not only created to serve the needs of shareholders to the detriment of other corporate stakeholders (Freeman 1984; Reich, 1998; Post et-al., 2002; Brown and Fraser, 2006; Steurer, 2006), the sustainability discuss (World Business Council for Sustainable Development, 1987) leading to emergence of the triple bottom line catchphrase (Elkinton, 1994) and rise of the knowledge economy (Gloet, 2006) presented modern corporations with new issues underlying corporate performance measurement. Hubbard (2006) noted that measuring corporate performance is likely to become more complex in the future as stakeholder expectations about companies’ economic, social and environmental responsibilities change Corporate performance for 21st century organizations therefore requires the identification, measurement and inclusion of new performance metrics, reflecting a more diverse approach against the previous stakeholder economic basis of assessment (Hubbard, 2006). This calls for modification of existing corporate management models to incorporate more diverse goals that firms are currently faced with (Herciu et-al., 2011) so as to achieve long-term sustainable value for corporations (Osisioma, 2010). Corporate sustainability that is the ability of a firm to carry out long-term operations depends on the sustainability of its stakeholder relations (Perrini & Tencati, 2006) and meeting its triple bottom line dimensions (Fauzi et-al., 2011). Thus, corporate responsibility redefined refers t engaging in continuous stakeholder dialogues in order to address various stakeholder needs from a holistic perspective and where


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sustainable corporate conduct is managed with economic, environmental and social values in mind (Mark-Herbert et-al., 2010). In a knowledge based society, knowledge management is a preeminent requirement for firms desiring competitive advantage (Herciu et-al., 2011) therefore, fostering sustainable development requires making knowledgeable interpretations and recommendations to support sustainability across a wide range of stakeholders (Gloet, 2006). Thus, to truly create and manage sustainable enterprises, managers of modern corporations require both stakeholder knowledge and sustainability knowledge for effective and efficient decision making. Thus, organizational and managerial practice has recently become more knowledge-focused (Alavi & Leidner, 2001). The primary objective of this paper is to identify the potential benefits of integrating stakeholder management, knowledge management and triple bottom line principles in the management of business operations by examining the areas of linkages between the three concepts (stakeholder management, knowledge management and triple bottom line performance). The lack of extant literatures exploring the nexus between the three paradigms prompted the study. The study is therefore set out to address the following. 1. To what extent would the synergistic effect derived from the interface of the three performance area,

provide management with strategies for survival and growth in the long-run? 2. To what extent knowledge management systems lead to the development of Core Competencies in

sustainable organizations by providing managers with knowledge capable of influencing environmental, social and economic reaction and adaptation of their firms?

3. To what extent corporate triple-bottom-line performance of organizations is strengthened by a sustainable stakeholder categorization for firms which provides managers with a system for assessing corporate stakeholder needs?

The paper is structured as follows: the first section reviews issues underlying corporate triple bottom line performance; the second, review corporate stakeholders and stakeholder management literatures, the third knowledge and organizational knowledge management perspectives. The fourth presents the synergy between the three paradigms.


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Literature Review 1. Stakeholder Theory

The diversity in stakeholder definition and classification stems from the varying contextual applications of the term in the literatures (Donaldson & Preston, 1995; Jones & Wicks, 1999). Freeman (1984) defined corporate stakeholders as ‘any group or individual who can affect or is affected by, the achievement of a corporation’s purpose’. Thus, stakeholders are broadly those persons and groups who contribute to the wealth-creating potential of the firm and are its potential beneficiaries (Mahoney, 2008) and/or those who voluntarily or involuntarily become exposed to risk from the activities of a firm (Clarkson, 1994; Mahoney, 2008; Sheng et-al., 2011). Corporate stakeholders are broadly divided into two: internal and external. Internal stakeholders are actors in the business organization. Examples include: employees, stakeholders, corporate proprietors and managers. External stakeholders are actors outside the business. Examples include: tax authorities, government, competitors, customers and the local community. The thrust of stakeholder theory is to assess organizational performance against the expectations of varying stakeholder groups that have unique identifiable interest in the operations and activities of the organization (Hubbard, 2006). The Balanced Scorecard (BSC) developed by Kaplan & Norton (1992) utilizes stakeholder theory as its fundamental premise for corporate performance evaluation.

2. Triple Bottom Line

The term was coined by Elkington in 1994 in an attempt to create a new language to express what was perceived as an inevitable expansion of existing corporate models (Mark-Herbert et-al., 2010), from initial economic value orientation to a wider perspective encompassing social, and environmental values as an integral part of doing business (Hubbard, 2006). The author “expresses his conviction that businesses do not follow just one goal – to add (economic) value – but they have to follow other social and ecological responsibilities; by doing this, the accounting of tomorrow’s operations will contain, together with the well known calculus of strictly economical efficiency, a balance sheet of the firm’s activities effects on the environment and another one regarding the consequences of this activity over the social environment” (Herciu et-al., 2011). To create truly sustainable corporations a shift is necessary from the traditional financial bottom line to a wider perspective detailing the company’s impact on to environment and society (Jackson, 2011). Elkington (2004) identified seven key drivers for organizations seeking sustainable development: Table 1: Seven Key Drivers for Sustainable Organizations S/N Drivers Old paradigm New paradigm 1. Markets Compliance Competition 2. Values Hard (economic

figures) Soft (additional values)

3. Communication Closed (internal) Open (wider stakeholder analysis)

4. Partnerships Subvention Symbiosis (win win) 5. Life cycle

technology Focused on Products

Focused on functions

6. Time Wide Longer 7. Corporate

governance Exclusive Inclusive

Source: Mark-Herbert et-al., 2010 Various authors have identified benefits from implementing a triple bottom line strategy, to include: Enhanced marketplace (McEntyre, 2003) from an enhanced reputation and brand (Lewis, 2011); Securing a social license to operate (Lewis, 2011) from improved community services (McEntyre, 2003) and creation of a sound basis for stakeholder dialogue (Lewis, 2011); Attraction and retention of high caliber


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employees (Lewis, 2011); More efficient use of resources (McEntyre, 2003); Reduced risk profile and liabilities (McEntyre, 2003; Lewis, 2011); identification of potential cost savings (Lewis, 2011): Increased scope for innovation (Lewis, 2011). Organizations showcase their commitment to the three complementary dimensions of sustainable development (economic, social and environmental) in the form of triple bottom line reports. Triple bottom line reports is a reporting approach aimed at expanding stakeholder knowledge of existing corporate activities (Jackson, 2011). Hubbard (2006) observed that triple bottom line is based on stakeholder theory, but with a wider perspective of the stakeholders affected by the organization than does the BSC approach. To fully account for their triple bottom line dimensions corporations need to incorporate additional information to better communicate with stakeholders on performance (Jackson, 2011). 3. Knowledge Management (KM)

The non-existence of a universally accepted definition of knowledge has resulted in the proliferation of views about the term. Authors identify and classify knowledge into various types (Gao et-al., 2008; Hicks et-al., 2006; Wiig, 2004; Al Hawari & Hassan, 2002; Choi & Lee, 2002; Paisey, 2002; Nonaka et-al., 2000; Zack, 1999; Maiden & Rugg, 1996; Nonaka & Takeuchie, 1995; Polanyi, 1966), resulting in variants of knowledge management systems adopted in organizations (Shahbudin et-al., 2011; Kruger, 2010). Although information and data management are important ppillars of knowledge management (Shahbudin et-al., 2011), knowledge management encompasses broader issues – it embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies and the creative and innovative capacity of human beings (Kahreh, 2011). KM is a system or a managerial approach to collecting, processing, and organizing enterprise-specific knowledge assets for business functions and decisions (Yao et-al., 2011). A critical task of KM is not to manage all knowledge resources, but those critical to organizational development (Mahdi et-al., 2011). Thus, the objective of organizational knowledge management system (KMS) is to support the creation, transfer and application of knowledge in organizations (Alavi & Leidner, 2001). KM systems are context specific (Kahreh, 2011) and time biased, as frameworks adopted in one organization may be unsuitable for others (Karimzadegan et-al., 2011). The increasing turbulence and dynamism of modern business environment require that organizations not only process knowledge efficiently but also devise means of creating and managing it (Herciu et-al., 20101), thus, providing corporate managers with strategies to tackle issues related to organizational adaptation, survival and competence (kahreh, 2011). Organizations mostly adopt and implement knowledge management systems with the assumption that the result will be an increase in organizational effectiveness, efficiency, competitive advantage, value creation (Jivan and Zarandi, 2012; Mahdi et-al., 2011; Kahreh, 2011; Karimzadegan et-al., 2011; Momeni et-al., Shahbudin et-al., 2011; Massa and Testa, 2009; Gloet, 2006; King and Zeithalm, 2003; Nonaka and Takeuchi, 1995; Wiig, 1994) and as an indispensable ingredient for the development of dynamic core competencies (Kahreh, 2011; Herciu et-al., 2011) and, more generally, as a determinant factor for firms with global ambitions (kahreh 2011; Chang & Wang, 2009). Herciu et-al., (2011) identified the following drivers of knowledge management in organizations: competition, customer focus, the challenge of a mobile workforce, equity in the workplace, and the global imperative.


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The basic organizational knowledge management processes adopted from the literatures are briefly described as follows:

1. Knowledge creation or acquisition

Alavi & Leidner, 2001; Kahreh, 2011

This refers to the process of generating knowledge internally and/or acquiring it from external sources

2. Knowledge storage Alavi & Leidner, 2001; Kahreh, 2011

This refers to the process of knowledge structuring and storing that makes it more formalized and accessible

3. Knowledge retrieval, transfer and sharing

Alavi & Leidner, 2001; Kahreh, 2011

This refers to the process of transferring, disseminating and distributing knowledge in order to make it available to those who need it.

4. knowledge application Alavi & Leidner, 2001; Kahreh, 2011

The utility of Knowledge management lies in its application to decision-making by incorporating Knowledge resources into the organization’s products, services and practices in order to derive value from it.

5. Knowledge protection Momeni et-al., 2011 Knowledge protection refers to the ability to protect organizational knowledge from illegal and/or inappropriate use or theft


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Table 2: Knowledge Management Approaches Approaches Main focus Technological Enhancing KM quality by supplying tools for effective storage and

distribution of knowledge Intellectual asset Enhancing KM quality by valuing knowledge assets to financial terms and

reflecting them in accounting practices Organizational learning Facilitating knowledge creation and sharing by developing positive work

environment or effective reward systems Process Enhancing KM quality by identifying key processes on which important

knowledge flows, and managing them formally. Philosophical Gaining a higher understanding of knowledge lead by asking questions such

as ‘do we know what we do not know’ towards development of new ways of thinking

Source: Kahreh, 2011 Any organization that dynamically deals with a changing environment ought not only to process information efficiently but also create information and knowledge (Herciu et-al., 2011). “Knowledge Management caters to the critical issues of organizational adaptation, survival and competence in face of increasingly discontinuous environmental change. Essentially, it embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies and the creative and innovative capacity of human beings” (Kahreh, 2011). Some of the knowledge management drivers include competition, customer focus, the challenge of mobile workforce, equity in the workplace, and the global imperative (Herciu et-al., 2011). According to Gupta et-al. (2009, cited in Momeni et-al., 2011) core competencies (CC) and knowledge management (KM) is cumulative is sustaining competitive advantage for firms. Also they noted that competences can be connected to (a) the firm’s resources and property and (b) the capabilities of individuals and organizations, knowledge, processes, routines, and culture. In organizations, competencies are sets of abilities and know how accumulated over time (Gupta et-al., 2009, cited in Momeni et-al., 2011). Stakeholder Management, Knowledge Management & Triple Bottom Line Linkages Studies have explored and identified the interrelatedness between stakeholder management and knowledge management and/or knowledge management and triple bottom line (Herciu et-al., 2011). Herciu et-al. (2011) proposed a behavioural model of management resulting from synergy between knowledge management and triple bottom line. From synergy between the two dimensions, triple bottom line and knowledge management, results: eco-knowledge, socio-knowledge, and ecological-knowledge in order to increase firm competitiveness and sustainability.

Our approach categories corporate stakeholders as follows: economic stakeholders, social stakeholders and environmental stakeholders, and knowledge acquired from these stakeholder groups are categorized as: economic knowledge, social knowledge and environmental knowledge.

The knowledge management procedure combines these two categorization in order to provide 21st century managers with efficient and effective tools for corporate performance management. The resulting management approaches are: Economic stakeholder management, Environmental stakeholder management and Social stakeholder management.


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Research Design and Methodology An exploratory study was carried out to ascertain the perception of corporate managers, accounting and finance academics. Using the snow-ball sampling technique, the sample size was estimated at 56. The questions were based on a structured five point Likert scale with the following options: Strongly Agree (SA); Agree (A); Indifferent (ID); Disagree (D); Strongly Disagree (SD) with the associated weights of 5, 4, 3, 2 and 1 respectively. Three hypotheses were formulated and analyzed using two-sample Kolmogorov-Smirnov Test. Table 3: Descriptive Statistics of Questionnaire Responses

Item no

Question description SA A ID D SD Mean Standard deviation

1. Stakeholder knowledge is a key organizational resource

36 4 5 7 4 4.0893 1.37876

2. Stakeholder knowledge is necessary for aligning corporate strategy with stakeholder interest

29 9 2 10 6 3.8036 1.49447

3. Employees are key consideration in establishing knowledge acquisition and management process

30 13 3 4 6 4.0179 1.36836

4. To facilitate knowledge processing and flow in organization management needs to establish a knowledge management system

33 8 8 5 2 4.1607 1.18746

5. Integrating knowledge management systems into management information system renders effective and efficient management decision making

39 9 4 3 1 4.4643 97168

Environmental Stakeholders {NGOs, EPAs, Local Communities, etc}

Social Stakeholder

Social Stakeholders

{NGOs, Local Communities,

etc}

Economic Stakeholder Management

Environmental Stakeholder Management

Firm {Corporate

Management}

Economic Stakeholders

{Stakeholders, Tax Authorities,

etc}

Environmental Stakeholders

{NGOs, EPAs, Local

Communities, etc}


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6. Environmental knowledge from stakeholders about environmental claims and issues promote corporate environmental performance

34 4 5 8 5 3.9643 1.42182

7. Stakeholders react negatively when environmental issues are neglected

24 10 5 10 7 3.6071 1.49762

8. Social knowledge from stakeholders about social claims and issues promote social performance

27 13 5 4 7 3.8750 1,41502

9. Stakeholders react negatively when social issues are neglected

27 9 10 5 5 3.8571 1.35417

10. Sustainable corporate performance requires the identification and integration of firm specific stakeholder

35 11 4 5 1 4.3214 1.06356

11. Knowledge management systems provide management with knowledge processing power capable of creating value for each stakeholder group

34 6 5 7 4 4.0536 1.36741

12. Knowledge management systems provide management with knowledge useful for stakeholder conflict-management

29 9 2 10 6 3.8036 1.49447

13. To ensure successful KMS implementation a cost/benefit analysis needs to be carried out

30 13 3 4 6 4.0179 1.36836

14. Balancing the interest of various stakeholder groups would ultimately meet triple bottom line performance

33 8 8 5 2 4.1607 1.18746

15. Knowledge resources provide tools for management strategic decision-making

26 16 5 6 3 4.0000 1.22103

Source: Field Survey (2012) Hypothesis formulation: H1: The synergistic effect derived from the interface of the three performance areas would not

provide management with strategies for survival and growth in the long-run. H2: Knowledge Management Systems is not related to the development of Core Competencies in

sustainable organizations by providing managers with knowledge capable of influencing environmental, social and economic reaction and adaptation.

H3: Corporate triple-bottom-line performance of organization is not strengthened by a sustainable stakeholder categorization for firms which provide managers with a system for assessing stakeholder needs.

Consider analysis Result for Hypothesis 1, 2 and Hypothesis 3: Table 4: Frequency Distribution of Respondents

Group N Academics Corporate Managers Total

35 21 56


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Hypothesis one: Test Statistics

H1

Most Extreme Differences Kolmogorov-Smirnov Z Asymp. sig. (2-tailed)

Absolute Positive Negative

381 .029 -.381 1.380 .044

a. Grouping Variable: Group Decision Rule: Using the K-S table, which tests the acceptability of the model from a statistical perspective, the decision rule is as follows: D calculated > D table value – Reject the null hypothesis; and if, D table value > D calculated – Accept the null hypothesis. Decision: Since, D calculated > D table value: 1.380 > 0.182 (at 0.05 critical value). Reject the null hypothesis and accept the alternate. Thus, the synergistic effect derived from the interface of the three performance areas would provide management with strategies for survival and growth in the long-run. Hypothesis Two and Three: Test Statistics H2 H3

Most Extreme Differences Absolute Positive Negative Kolmogorov-Smirnov Z Asymp. sig. (2-tailed)

.229

.086 -.229 .828 .499

.171

.000 -.171 .621 .835

a. Grouping Variable: Group Decision: H2: Since, D calculated > D table value: .828 > 0.182 (at 0.05 critical value). Reject the null hypothesis

and accept the alternate. Thus, Knowledge Management Systems is related to the development of Core Competencies in sustainable organizations by providing managers with knowledge capable of influencing environmental, social and economic reaction and adaptation.

H3: Since, D calculated > D table value: .621 > 0.182 (at 0.05 critical value). Reject the null hypothesis and accept the alternate. Thus, corporate triple-bottom-line performance of organizations is strengthened by a sustainable stakeholder categorization for firms which provide managers with a system for assessing corporate stakeholder needs.

Conclusion and Recommendation We have to agree that in the current context of (1) increasing interconnectedness between economic actors, social actors and ecological actors, (2) consistent critical externalities for all types of firms confronted with an increasing competition in the local and/or international market, (3) tremendous impact


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of the new information and communication technology on each firm, in terms of strategic development and of organizational behavior, strategic management relies increasingly on the intangible assets in achieving corporate or market goals’ (Herciu et-al., 2011). Considering knowledge as an intangible asset highlights the need for adequate KMS infrastructure in organizations to ensure the realization of its potential benefit. The following steps could be adopted in institutionalizing the proposed KMS model in organizations: (1) define clear organizational objectives; (2) Define clear strategies for achieving the objectives; (3) Establish knowledge management system (KMS) considering organizational infrastructure such as facilities for knowledge creation/acquisition, storage and retrieval, transfer, sharing and application; (4) Integrate the knowledge management system (KMS) infrastructure into the corporate management information system; (5) Align the knowledge management system (KMS) with organizational functional units; (6) Recognize the role of human resource management (HRM) in the knowledge management (KM) development process. One major challenge faced by organizations in adopting and implementing KMS is knowledge. Therefore due consideration of organizational infrastructure and organization’s need for knowledge is necessary. Where possible a knowledge database system needs to be established so historical knowledge can be gathered to aid future management decisions. Suggestions for further Research The proposed KMS model could be improved by identifying other factors (such as: rapid globalization, developments I ICT, cross-border reporting requirements, capital market liberalization, etc) affecting knowledge acquisition an dissemination in modern organizations could also be investigated. The proposed model could be redefined by extending its application to other sectors in the economy any systems for multinational companies. References Alavi, M., and Leidner, D.E. (2001). Review: Knowledge management and knowledge management

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Allen, T.J. (1977). Managing the Flow of Technology. Cambridge, MA: MIT Press. Alrawi, K., and Alrawi, W. (2011). Managers’ perception of potential impact of knowledge management

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Financial Challenges of Small and Medium-Sized Enterprises (Smes) In Nigeria: The Relevance of Accounting Information

Ohachosim Celestine Ikem,

Dept. of Accountancy, Faculty of Business Administration,

University of Nigeria, Enugu Campus, Enugu State.

Onwuchekwa Faith Chidi,

Department of Business Administration, Nnamdi Azikiwe University,

Awka, Anambra State.

Ifeanyi Toochukwu Titus, Dept. of Accounting,

Federal college of Education (tech), Umunze, Anambra State.

Abstract The relevance of SME-sub sector in Nigeria’s economy has necessitated the need for empirical investigations into the nature of its financial challenges. This paper evaluates the extent accounting information can be used to ameliorate the financial challenges of SMEs in Nigeria. It explored both theoretical and empirical literatures as bases for the study. It made use of questionnaire for collecting data from a sample of SMEs in Nigeria. Tables and graphs describe the responses for better understanding. By the technique of Ordinary Least Square (OLS), the researchers analysed the group logit (GLOGIT) model specified in the paper. Our analyses reveal that SMEs in Nigeria have poor accounting system. It was also found that SMEs’ access to finance depends largely on the quality of accounting information they can generate which is determined by their accounting practices. The paper recommends that SMEs should access the services of the accountant to be able to establish dependable accounting system which is characterised by generally accepted accounting practices (GAAPs). Quality accounting information will enhance SMEs’ financial management as well as accessibility of finances.


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Introduction Small and Medium-scale Enterprises (SMEs) play very important roles in the process of industrialization and sustainable economic growth (Ogujiuba, Ohuche and Adenuga, 2004; Ariyo, 2005; Ihua, 2009; Aremu and Adeyemi, 2011; Terungwa, 2012). Since the 1960s to date, (SMEs) are being given due recognitions especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies (Gunu, 2004; Onugu, 2005; Aremu, 2010). They make-up the largest proportion of business all over the world and play tremendous roles in employment generation, provision of goods and services, creating a better standard of living, as well as immensely contributing to the Gross Domestic Products (GDP) of many countries (Ihua,2009;Paul,2010;Ojeka and Mukoro,2011). In the United States of America, SMEs employ 50% of her workforce, and generate more than half of the nation’s Gross Domestic Products (Audretsch, 2010). SMEs account for 99.8% of all companies and 65% of business turnover in European Union (Ariyo, 2005). The situation is not different in Africa as research reported by Kongolo (2010) reveals that in South Africa, SMEs account for about 91% of the formal business entities contributing about 51% and 57% of GDP, providing almost 60% of employment. SMEs sub-sector came into the mainframe of policy formulation in Nigeria owing to its obvious vital contributions (Obamuyi, 2007). Like in the developed countries, SMEs have enabled entrepreneurship activities through which employments have been generated and poverty reduction and sustainable livelihood achieved (Ogujiuba et al, 2004). It makes up about 97% of businesses in Nigeria and provide on average 50% of Nigeria’s employment, and its industrial output (Ariyo, 2005; Taiwo, Ayodeji and Yusuf, 2012). SMEs have the ability to start small and grow quickly and as well survive through rapid response adjustment in good and bad economic times (Mitchell and Raid,2000; Nandan,2010). Government and development experts have, therefore, realised the fact that SMEs possess the needed catalyst to turn the economy around for good (Udechukwu, 2003; Anyanwu, 2003) However, for SMEs to perform the roles as enumerated above, they need adequate funding in terms of short and long-term loans. Due to the nature of SMEs, funds are always in short supply to them (Srinivas, 2005). It then became necessary that SMEs should be assisted largely by public initiative involving participation of the banking industry (Srinivas, 2005). Government of Nigeria has made elaborate effort to assist the SMEs in their funding problems (Anyanwu, 2003; Terungwa, 2012). According to Olorunshola (2003) the government has been active in the development of SMEs in Nigeria in the following areas; * Funding and setting up industrial areas and estates (to reduce overhead costs) * Providing local finance through its agencies: the Central Bank of Nigeria, Federal Ministry of

Industries (Small-Scale Industry Credit Scheme SSICS), Nigeria Industrial Development Bank (NIDB), and Nigeria Bank for Commerce and Industry (NBIC).

* Facilitating and guaranteeing external finance through the World Bank, African Development Bank and other international institutions willing to and capable of assisting SMEs.

* Facilitating the establishment of the National Directorate of Employment (NDE) which also initiates the setting up of New SMEs.

* Setting up of the erstwhile National Economic Reconstruction Fund (NERFUND) which is a source of medium to long-term local and foreign loans for small and medium scale business, particularly those located in the rural areas.

* Initiating the then Family Economic Advancement Programme (FEAP); and * Provision of technical training and advisory assistance programmes through establishment of

industrial development centres, etc. Ogujiuba et al (2004) pointed out that in the bid to enhance the development of SME, that government has established several micro-lending institutions. The government has tried to achieve the above assistance to SMEs through the following agencies and schemes. * The Nigeria Industrial Development Bank Ltd (NIDB) (1962)


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* The Nigeria bank for Commerce and Industry (NBCI) (1973) * Rural Banking Scheme (1977) * Agricultural Credit Guarantee Scheme fund (1978) * Word Bank Assisted SME Loan Project (1987) * Peoples Bank of Nigeria (1989) * The National Economic Reconstruction fund (NERFUND) (1990) * Community Bank (1991) * Nigeria Export Import Bank (1991) * The bank of Industry (2000) * Nigeria Agricultural, Corporative and Rural Development bank (NACRDB) (2000) * The Small and Medium Industries Equity Investment Scheme (SMIEIS) (2001) * Refining and Rediscounting Facilities (2002) * Microfinance Banking (2005) Despite all the efforts of government, progress of SMEs in Nigeria is still limited due to financial challenges (Ohachosim, 2012). It can be logically correct to conclude from the above that the financial challenges of SMEs in Nigeria today, have taken the dimension of inaccessibility of funds (Aremu and Adeyemi, 2011). Obstacles of SMEs access to funds in Nigeria have not been surmounted because of SMEs inability to generate and use quality accounting information (Richard, McMahon and Holmes, 1991). In the face of poor accounting or non-existence accounting information, good funds management is inhibited. Once the SME commences business operations the nature of its fund management is reflected in the new establishment. Suppose the fund management is inadequate, it will be difficult for the new business to attract additional funds for increased working capital, expansion or diversification. It is based on this reasoning that very crucial and onerous tasks are set before the accountant who is equipped with the skills and theories of business to produce accounting information. It is exigent that financial challenges of SMEs be given passionate attention by business professionals especially the accountant. SMEs financial challenges really entail extensive and constant efforts on the part of the accountant to assist owner-managers to access adequate finances at affordable costs: “A good accountant is the most important outside advisor the small business owner has” (Cornish, 1993). According to the Entrepreneur Magazine Small Business Advisor, “ The services of a Lawyer and other business consultants are vital during specific periods in the development of a small business or in times of trouble, but it is the accountant who, on a continuing basis, has the greatest impact on the business”(Encyclopaedia of Business, 2010). The onerous tasks before the accountant does not get accomplished only by producing adequate accounting information, it proceeded to include all processes to awaken the consciousness of the SME-owners to the proper uses of the information to arrest their financial challenges (Watson, 2003). Available studies on the financial challenges of SMEs in Nigeria did not attempt to find out whether SMEs’ access to finances is dependent on their accounting practices. This work is justified because it has holistic focus (availability, accessibility and management of funds) on the financial challenges of SMEs with respect to the roles of the accountant to overcome these challenges. It is unfortunate that SMEs performances have fallen short of expectations in Nigeria (Osotimehin, 2012). The country is still characterised with alarming unemployment rate of 19.7% in 2010 (CIA, 2010), as well as, high level of poverty for more than half of the population still live below the poverty line (Abu and Abdullah, 2010). This shows that Small and Medium- Scale Enterprises are not very effective in this part of the world. Most SMEs die shortly after their establishment and few that survive die following the ageing or physical incapacitation or death of their owners. The failure rate of small business stands around 50 percent in Africa (Adelakun, 2008; Ebiringa, 2011). Huyghebaert and Gucht (2004) have noted that 50% of new entrepreneurial ventures disappear within the first five years after their establishment in USA and probably that of Nigeria is higher. It should be noted that most business failures result in heavy personal loss for the entrepreneur (Bannock, 1980; Watson, 2003). The country also count losses; the loss


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in taxation and the business contribution to gross domestic product (GDP) as well as employment, add up to very huge losses for the country as a whole. The circumstances highlighted above have persisted due to poor generation and use of accounting information in Nigeria. The absence of basic accounting practices in most SMEs in Nigeria tends to compound their financial challenges. Most SMEs can’t access funds because banks and other financiers cannot readily verify their vibrancy and their access to quality projects (Srinivas, 2005). Stigliz and Weiss (1981) expressed the view that small and medium scale firms with opportunities to invest in positive net present value project may be blocked from doing so because of adverse selection and moral hazard problems. Such discriminations arise because the SMEs don’t have comprehensive accounting records to be utilized in proper project evaluation and budgeting. In relation to the above are improper investments in both current and fixed assets. SMEs sometimes tie huge capital where it is simply not needed. Inventories can be excessively stocked and more credit facility than necessary extended to customers amidst insufficient funds to meet up with its working capital requirements, such as; meeting up with obligations as it falls due, payment of workers, paying on terms of agreement to suppliers, among others. The situation is the same on the side of investment in fixed assets. A close look in the Nigeria business scene will observe that some investments in fixed assets really don’t yield the much returns commensurate to its capital outlay and some don’t even yield at all. Some investments remain under construction for years and in fact many don’t ever reach completion stage. There are many investments that got completed but never become operative. Fixed assets are used until they become physically inefficient due to long years of usage; and because there is no adequate provision for depreciation, replacement is often difficult. The situation is prominent in agro and agro-based businesses, petroleum service stations and manufacturing ventures. Most often SME can’t determine with certainty what their average yearly profits are. This has always led to excessive drawings. A good number of business (SMEs) has failed in Nigeria because the owners have overdrawn more money than the profit made by the business in many unaccounted occasions. It will then imply that the SME-operator was eroding the capital of the business without knowing it. The consequence of capital erosion is fund evaporation. Of course, the capital of the business will see to be vanishing because the SME-owners often can’t give account of what happened to the capital of the business.

With reference to the problem highlighted above, this study has the following objectives: to determine the accounting practices of SMEs in Nigeria and to determine the extent at which SMEs’ access to finance is dependant on their accounting practices in Nigeria. In order to achieve the above stated objectives, this study has asked the following questions: how adequate are the accounting practices of SMEs in Nigeria and to what extent does the SMEs’ access to finances depend on their accounting practices in Nigeria? The hypotheses relevant for this study are: SMEs in Nigeria do not have poor accounting practices and SMEs’ access to finance in Nigeria does not depend on their accounting practices.

Literature Review Recently, banks practices all over the world have shown that accounting information has provided bases for evaluating SMEs for the purpose of making funds accessible to them (Ohachosim, 2012). These contemporary banks practices have given rise to certain models/rules such as; Bank capital channel model, Bank capital constraint model of lending behaviour, financial statement rule, Asset Based Rule, Credit Scoring and Relationship lending. Some of these models/rules emerged because of the unique nature of SMEs which has made it difficult for their viability to be evaluated on the bases of the known feasibility reports. By definition in Nigeria, Small and Medium Industries Equity Investment Scheme (SMIEIS), defined SMEs as those enterprises with a total capital employed not less than N1.5million, but not exceeding N200million, including working capital, but exceeding cost of land and/or with a staff strength of not less than 10 and not more than 300 (Obamuyi, 2007). This definition has included many small firms under the bin shade of SMEs. The nature of business transactions in most of these firms does not provide opportunities for outsiders to have clear knowledge of the goings-on in these small firms.


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This is what is prominently referred to as information asymmetries. It is because of this that assessment of the viability of projects in small firms demand processes more reliable than mere feasibility reports. The methods in use so far rely heavily on accounting information thus revealing to the accountants the tasks ahead to serve the accounting need of the SMEs today. Accounting information has also been found to be very crucial for the purpose of financial management. Empirically, it has been demonstrated by a number of studies that the accountant possesses the skill with which any meaningful financial management can be instituted in any organization (Brean, Scuilli & Calvet: 2003). Studies have also shown that sound financial management is crucial to survival and growth of small business (Gorton: 1999). The fact that high rate of small business failure is attributed to poor or careless financial management has lain itself to empirical evidence. Effective financial management can only be instituted in the presence of quality accounting information. Potts (1977) states that the clearest and most startling distinction between successful and discontinued small businesses lie in their approach to uses which can be made of accounting information. Accounting information is not a mere fabrication of the accountant; it is actually the results of business undertakings of the SMEs. This would mean that the accountant should be aware of the business activities and ensure that relevant ingredients are not dropped on the way. This work would, therefore, review empirical literature on the practices of some successful SMEs with the aim of finding out what has ensured their financial breakthrough. DeThomas and Fredenberger (1985) carried out a survey of some progressive 360 SMEs in Georgia and find out that they have installed and used very effective accounting information systems. The survey reveals that the SMEs have high standard of financial recordkeeping. Around 92 percent of respondents had some form of recordkeeping beyond check stub deposit receipts. It is quite obvious that the success of the SMEs studied is attributed to their accounting systems which were very effective in line with this, is the finding of D’Ambose and Gasse (1980) who studied the utilization of formal management techniques in 25 small shoe manufacturers and 26 small manufacturers in plastics industry in Quebec Canada and found that a cost accounting system was in operation in about 88 percent of businesses studied. Richard et al (1991) explained that the availability of affordable computers and suitable software has played an important part in promoting a working accounting system. Magnenat-Thalmann (1982) discovered a preponderance of accounting related applications among computer software use; particularly in the areas of accounts receivable, payroll accounts payable, general ledger, sales analysis and inventory. Good and working accounting systems make judicious uses of computer and applicable computer-softwares. DeThomes and Fredenger (1985) and Nickell and Seado (1986) confirm that accounting/financial management application dominate as computer applications in small businesses examined. It is briefly highlighted at the introductory part of this review that improved accounting information systems enhance the quality of financial reporting. Richard et al (1991) opines that improved accounting systems due to uprising in computerising accounting systems following innovations in manufacturing affordable computers in recent times has elevated the standard of financial reporting in small businesses in North America. Consequent upon the installation and use of an accounting information system, satisfactory aggregation of the business activities is achieved in forms of records. This has enhanced financial reporting. DeThomas and Frederberger (1985) found that 81 percent of the small businesses in their survey produced financial statements in the forms of balance sheet, income statements, and fund statements, among others. There are others who include in their financial reports, the cash flow summary, others operating summaries and bank reconciliation statements. There are more obvious evidences that adequate accounting information system enhances the regularity of financial reporting. Thomas and Evanson (1987) found among a study of 398 small pharmacies located in the states of Michigan, North Carolina, Nebraska Rhode Island and Washington that income statements and Balance Sheets were prepared al least quarterly by 62.5 percent of the respondent and annually by 32.1 percent. Thomas and Evanson (1987) reported that over 85percent of the respondents indicated that an outside accountant prepared the financial statements f on their behalf. This is further evidence that good accounting systems prepare the grounds for effective financial reporting.


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It is obvious that the quality of accounting information has improved as depicted in the review above but empirical evidence shows that the use of this information is still limited. Richard at al (1991) noted that in contrast to the amount of information available, the actual use made of financial reports by owner-managers is rather limited. Evidence provided by Lindecamp (1983) in the United States of America on the analysis and use of financial statement of 102 owner-managers of retail stores in Mississippi supports the assertion. About 23 percent reported that they analysed a detailed breakdown of their figures on a frequent or regular basis. However, 60percent indicated that they do not maintain up-to-date figures on the contribution to profit of individual products or product lines. A little 7 percent seldom or never compared their firm’s performance with industry figures. Over 50 percent of respondents did not appear to understand the meaning of debt/equity ratio, and 59 percent did not know the value of this ratio for their firm. Also, DeThomas and Fredenberger (1986) reported in their survey that only 11 percent of the respondents use financial statement information as part of their normal process of managerial evaluation, planning and decision-making, although 61 percent of the respondents felt the statements provided the information they required for planning and decision-making. Only a small proportion of businesses (2 percent) employed financial ratio analysis and few made mere simple historical comparisons. Even though it was not possible to demonstrate a significant association between the number and frequency of use of financial rates and small business profitability or survival, it is hypothesized that this may have been due to a lack of sophistication in financial ratio interrelation on the part of owner-mangers which prevented usage from making a discernible difference (Thomas and Evanson, 1987). It is also noted that small businesses have very poor working capital management traditions. A study of small businesses in Northern America, show that they have no formal techniques of determining the level of cash balances (Anvari and Gopal, 1983). This would mean that there are chances of SMEs keeping more cash than they actually required or otherwise. Also, Grablowsky and Rowell (1980) in a survey found that small businesses have poor credit management. In fact, they explained that they see accounts receivable as something that is exogenously controlled. Only few small businesses among those who are included in the survey employed credit officer. In the same way Grablowsky (1978, 1984) obtained enough empirical evidence to affirm that small businesses do not view accounts payable as a source of finances for their businesses. They only accept cash discounts when it is available and do not make effort to compare the cost taking advantage of cash discount with the cash discount itself with regards to their cost of capital. Grablowsky (1984) further concludes that small businesses rarely use formal techniques for inventory management. For instance, they have poor habit of using quantitative techniques like economic order quantity. The fact is that most SMEs accounting systems were not able to provide information on inventory turnover, reorder points, ordering costs or carrying costs. The capital budgeting practices of small businesses is also very low. Grablowsky and Burn (1980) found that the level of understanding and use of more advanced capital budgeting policies and techniques were low. Richard et al (1991) explained that approval for capital budgeting in SMEs are simply based on necessity, this is contrary to large firms who have yearly annual capital budgets. Generally empirical evidences available in literature from advance countries reveal that SMEs’ use of accounting information is very poor. However, due to improved accounting systems owing to the increase in the use of computers and software applications, the quality of accounting information has improved tremendously. Mamahon & Holmes (1991) expressed the view that the SMEs should be encouraged to use software accounting package as it enhances the accounting discipline. This is evident in the study undertaken by Gorton (1991). In the study, a comparative UK study of SMEs that used financial management techniques and those that didn’t found that out of 366 SME respondents who use financial plan that over two –thirds maintained a Computerized Accounting System (CAS). On this Gorton (1991) quantified the importance of planned financial management through the setting of financial plans and the maintenance of


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comprehensive accounting systems. There is, therefore, a relationship between the use of CAS and strategic orientation (Gorton: 1999; Smith, 1999). The use of CAS instils controls in the SMEs. McMahon (2001) argued that improved financial control in growing SMEs can and should come about through a significant upgrading of financial reporting system. This view is supported by Hans and Valeri (2010) who reported in their research that when accounting information is a good description of credit risk firms can rely on performance covenants which creates access to debt financing. Their research also proved that when accounting information is poor description of credit firms resort to the more robust capital covenants which align incentive by restricting debt financing and therefore limit credit market access. It is conclusive, therefore, that accounting-based covenants create market access through the use of performance covenants. On the relevance of the accountant to SMEs, Association of Certified Chartered Accountants (ACCA) has carried out a number of researches to empirically investigate the particular circumstances where the accountants are really relevant. *ACCA research report No.18, which indicates the potential role of the profession in supporting small business (Chittenden, McConnel and Risner, 1990). *ACCA research report No.64, which highlights the role of accountants in assisting with networks providing advice on business performance and ensuring learning takes place for SMEs, particularly at the early stages of the business life-cycle(Deakins, Logan and Steele, 2001). *ACCA research report No.85, which points that ageing populations herald a need to provide for succession planning services(Martin,2005). ACCA research report No.70 share perceptions from both small practitioners and SMEs about e-commerce. It is of particular interest that SMEs do not perceive that accountant could assist them beyond very basic functions (Chaston and Mangels, 2001). *ACCA research report No.71 isolates the minority ethnic respondents’ comments and illustrates how small practitioners might expand their fee base (Ram and Carter, 2001). *ACCA research report No. 96 finds that accountants are key advisers on regulation to all businesses, and are in the position to assist SMEs in managing their regulator obligation (Blackburn et al, 2006). The study is largely presented from the perspective of the SMEs in the UK and Canada and contains extensive data on the use they have made of accountants *ACCA research report No. 99 surveys both accounting practitioners and SMEs in Australia to understand how accountants help SMEs with their regulatory obligations and finds that accountants are willing to assist or refer their clients to specialist advisers. Although the service given by accountants was deemed to be very good, the issue of value for money was raised (Leung, Raar and Tangey 2008). Still on relevance of the accountants’ advice, researches are in accords that accountants’ advices prove useful. However, there is disaccord as to the effects of their advices on the business. Accountants are of the most-used professional support providers (Atkinson and Hurstifield, 2003; Jay and Scheper, 2003). It is surprising that Accountants’ advices are not related to any of the performance measures (Jay and Scheper, 2003). Breen, Wilmshurst, and Calvert (2003) believe that the external accountant can solve variety of small business challenges including choice of software. The pre-occupation in companies work is reduced by the standardization of the accounting system through the use of computers and accounting soft wares. Obamuyi (2007) in the paper titled “An exploratory study of loan delinquency among small and medium enterprises (SME) in Ondo State of Nigeria” maintained that the lending practices towards SMEs are not


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different from those for large enterprises. It is because of this that makes it difficult for SMEs to meet the criteria for accessing bank loan .The paper went further to state some standard criteria to assess the creditworthiness of borrowers as follows; financial strength, profitability, network, track record, management quality, relations and payment records with other banks, business prospects, business risks and collateral securities. All the above criteria cannot be good assessments without adequate accounting. It is because of the deficiency in the record keeping of SME that compels the banks to insist on collateral as a “must” for SME. As Obamuyi (2007) has put it, “The banks requested for collateral as an additional requirement, apart from requiring personal guarantees for SME loans, because the financial and operational transparencies of SMEs were relatively low and their accounting standards were poor” Ojeka & Mukoro (2011) in the topic titled, “International Financial Reporting Standard (IFRS) and SMEs in Nigeria: Perception of Academic” found that there is still need to enlighten people especially the SME operators on the usefulness of the IFRS for SMEs. The accountant will really have a lot of work to do to implement the IFRS for SMEs in Nigeria. The listed advantages of IFRS for SMEs includes; improving the comparability of information presented in financial statement, increasing confidence in global annual invoices, SMEs reduce cost associated with maintaining accounting standards, presence of a complete set of accounting principles simplified for each type of entity; increased satisfaction of the needs of users of financial statements (AICPA, 2011; Marion, 2009). Ojeka & Mukoro (2011) empirically demonstrated that the IFRS for SMEs will help to gain more capital for growth and expansion. This is because such standard will attract investors and the fact that some banks like; GTB Bank, Access Bank, Zenith and First Bank, have embraced the IFRS for SMEs is an evidence to the assertion (Naomi, 2010; Ojeka and Mukoro, 2011) The fact that the SME owners are amateur in business management creates varieties of opportunities for external services providers like the accountant (Yusoff, 2006). Empirical evidence suggests that accountants play a key role in advising SMEs, because they provide the most frequent source of advice (Benneth and Smith, 2002; Carter and Mason, 2006; Scoth and Irwin, 2009; Devi and Samujh, 2010), especially in matters relating to regulation and compliance (Gooderham et al 2004; Blackburn et al 2006; Leung et al, 2008). Following the changing of global business environment, the accountants’ services to SMEs have changed from mere regulation and compliance work (Chaston et al, 2002). CPA Australia (2007) points out that service and product mixes will change and that public practitioners will need to review their levels of knowledge, and training, and then management strategies in order to meet the demand for business advisory services. Devi & Smith (2010) concluded that due to the fact that accountants have not noticed the need for them to acquire peculiar mindset towards the SMEs that Accountant are not used as supposed by the SMEs. It is, therefore, reasonable for the accountant to prepare for the emerging tasks. There is need to increase time with the SME and also there is need to bring down the level of interaction to be compatible with the level of SME- operators. Methodology This research made use of primary data. This was obtained from a sample of SME-operators in Nigeria. The population for the study has been restricted to the number of SMEs in Anambra state due to proximity and cost. The population for the study is two thousand six hundred and eight-eight (2688) SMEs being the figure obtained from the latest survey of the Ministry of Commerce and Industry, Anambra state (Ministry of Commerce and Industry, 2009). The research made extensive use of questionnaires which were fully structured. A total of three hundred and forty eight questionnaires were distributed adopting the stratified random sampling technique. The sample size of 348 was obtained using the Taro Yamene’s formula. The test-retest method was adopted to ensure the reliability of the data collection process. Econometric method, specifically the group logit model (GLOGIT) was adopted. Ordinary Least Square (OLS) technique was used for the purpose of analysing the GLOGIT model. This technique was considered suitable because the model of this research was based on the theories of qualitative response regression models. Amemiya (1981), Aldrich (1984), Larry (1997) and Moghaddan


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and Hallie (2009) have used the quality response regression models to achieve dependable results. Data is weighted to correct for hetroscedasticity (Gujarati, 2009).

The model adopted in this research for econometric analyses is specified as follows:

Access to Credit is a function of the availability of quality accounting information. Quality accounting information is a function of the level of accounting practice. Therefore, it follows that access to credit is a function of the level of accounting practice. Other variables also determine credit accessibility: this is captured by introducing another variable in the model as the availability of collateral facility. The model can be represented as follows; Access to Credit = f (level of accounting practice and collateral facility) Through the cumulative logistic distribution function, this is translated into the Group Logit model (Glogit) Thus, P1 L1 = In = β1 + β2 X1 +β3X2 + µ1 -------------------------------------- (4) 1-P1

In the Glogit model adopted above,

P1 = ni Ni (which represents the probability of accessing credit at ith level of accounting practice)

At each level of accounting practice, some SMEs access credit some don’t,

ni = those who access at ith level of accounting practice

Ni = total number of SMEs at each level of accounting practice

1-P1 = represent the probability of those who do not have access to credit at ith level of accounting

practice

P1 = odd ratio in favour of accessing credit 1-P1

P1 In 1-P1 = Log of the odd ratio in favour of accessing credit X1 = ith level of accounting practice by ranking

X2 = other requirements (specifically collateral facility). This is domiciled as follows: provide collateral

= 1, does not provide collateral = 0.

β1, β2 and β3 are coefficients and µ1 is the stochastic error term

4 Analyses and Interpretations


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Out of 348 questionnaires distributed, 311 were received back. This represents about 89% of the sample size. The response is summarised in the table below.


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Table 1: Accounting Practice and Fund Accessibility Level of Accounting Number of SMEs Number who access funds

Practice by ranking in each level of at each level of

Accounting accounting practice

Practice

Xi Ni ni

0 20 2

1 151 15

2 83 21

3 36 11

4 20 9

5 0 0 6 1 1 7 0 0 It could be seen from the above that the higher the levels of accounting practice the higher the proportion of SMEs who access loan from financiers. At 0 levels of accounting practice, 10 % of the SMEs obtain loan (definitely, this must be those who are capable of providing collateral facility). We see that while 9.9% accessed fund at level 1, 25% accessed fund at level 2. The increase continued as follows: 30% at level 3, 45% at level 4, no SME is at level 5, 100% at level 6 and no SME at level 7. Preliminary, we assert that the higher the levels of accounting practice the higher the accessibility of fund. We are yet to confirm this preliminary result from our GLOGIT model. Table 2: Collateral Facility and Accessibility of fund X1 n1 Number who provide collateral Dummy 0 2 2 = 100% 1 1 15 19 = 67% 1 2 21 15 = 71% 1 3 11 5 = 45% 1 4 9 0 = 0% 0 5 0 - - 6 1 0 = 0% 0 7 0 - As an a priori statement, the researcher is confident to ascribe 0 to any level of accounting practice if 95% and above do not provide collateral to qualify for loans otherwise it will ascribe 1. It is allowable in behavioural sciences to accommodate 5% chances of making mistakes. The table above shows that the few SMEs at very high levels of accounting practice do not provide collateral to qualify for most loans. This is shown at levels 4 and levels 6 respectively.


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Table 3: Log of the odds, Levels of Accounting Practice and Collateral Facility L X1 X2 -0.954 0 1 -0.959 1 1 -0.470 2 1 -0.356 3 1 0.629 4 0 - 5 - 0 6 0 - 7 - One interesting phenomenon is that when the log of the odds becomes 0 or positive, SMEs do not provide collateral to qualify for loans. Table 4: Line Graph of Loan Accessibility and Relating Factors in Nigeria.

It could be seen from the line graph above that loan accessibility represented by the log of the odds (L) is rising following the rise in the levels of accounting practice(X1) of the SMEs in Nigeria. We see that above the line(X2) representing collateral facility, loan accessibility was actually rising following the rise in accounting practice. SMEs need not necessarily provide collateral facility to qualify for loans provided they maintain high accounting standard as indicated by the line X1 representing accounting standard. A further confirmation can be done from the regression results below.


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Table 4: Regression Results Dependent Variable: L Method: Least Squares Date: 12/11/12 Time: 18:13 Sample(adjusted): 1 7 Included observations: 6 Excluded observations: 1 after adjusting endpoints

Variable Coefficient Std. Error t-Statistic Prob.

X1 0.064167 0.045056 1.424147 0.2275

X2 -0.781000 0.183019 -4.267312 0.0130

R-squared 0.747220 Mean dependent var -0.351667

Adjusted R-squared 0.684025 S.D. dependent var 0.605154

S.E. of regression 0.340167 Akaike info criterion 0.942441

Sum squared resid 0.462854 Schwarz criterion 0.873027

Log likelihood -0.827323 F-statistic 11.82405

Durbin-Watson stat 0.537459 Prob(F-statistic) 0.026327

The log of the odds (L) is positively related to the levels of accounting practice(X1). This implies that as the SMEs improve their accounting practices; their financial challenges become reduced as their access to finance increases. This is because financiers will be more willing to make fund available to them. Also following an improved accounting practice, SMEs will be more disposed to manage their funds profitably. This result is in harmony with the preliminary results shown above. The log of the odds does not have positive relationship with collateral facility(x2). We can assert that loans to SMEs in Nigeria do not necessarily depend on the ability of the SMEs to provide collateral security. However, for R-squared of 0.7472, Adjusted R-squared of 0.6840 and a significant F value, the two variable X1 and X2 can combined together to improve the financial conditions of the SMEs to a great extent. Conclusion and Recommendations Conclusion The relevance of accounting information in ameliorating the financial challenges of SMEs in Nigeria has been evaluated in this paper. The researcher has conclusive evidence to assert that SMEs in Nigeria have poor accounting standard. They, therefore, generate non-informative accounting information. Further analyses reveal that SMEs’ access to finance has positive relationship with its accounting practices. The higher the quality of accounting information generated by the SMEs (as shown by the designated level of accounting practice), the more access the SMEs will have to finance. We, therefore, do not accept the null hypotheses postulated in section I of this paper. Recommendations Based on the conclusion attained in this paper, the following recommendations are made:

SMEs should improve their accounting system to be able to generate quality accounting information.


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SMEs should endeavour to consult accountants regularly to be able to maintain high and generally accepted accounting practices.

SMEs should utilise accounting information in the management of their finances.

The accounting bodies in Nigeria, the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN), should wear global outfit and train their members to serve SMEs’ accounting need due to their relevance in the economy.

Accountants should be able to encourage SMEs to access their services. They should avoid scaring them away by quoting very high fees.

Government should stipulate minimum number of books to be kept by all SMEs that meet certain criteria which certifies them to operate in Nigeria. This dimension will be in line with international order that have designed financial reporting standard for SMEs.

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Security Challenges and the Imperatives of State Police

Eme, Okechukwu Innocent Email: [email protected]

08056753011

Anyadike Nkechi O. Email: [email protected]

Department of Public Administration and Local Government University of Nigeria, Nsukka.

08032680656

Abstract Arguments for and against the establishment of State Police Force have been going on for quite some time now. Proponents of state police argued that this was a consistent with the principle of true federalism and decentralization of powers and that the arrangement would enable the states to effectively maintain law and order especially during emergencies. They criticized section 215(4) of the 1999 Constitution for hindering governors from the exercise of his power as Chief Security Officer of the state. Opponents of state police hinged their theses on the fear of the abuse to which State Governor may subject the police. The fears include those of harassment and intimidation of politics opponents and perpetration of electoral fraud. This paper seeks to explore the major imperatives for the establishment of State Police Force. To achieve this objective, the essay discusses the major theses the opponents and proponents of State Police Force, the limitations of their arguments. It however agrees that there is to need for reorientation; reorganization and repositioning of the Nigeria Police Force to enable it meet the requirements of public order, public safety and democratic governance.

Key word: Police, Vigilante Groups, Insecurity Violent Crime, Democratic Governance, Policing and True Federalism Introduction It is a truism that the recent phenomenal wave of political assassination, murders, armed banditry, kidnapping and general eruption of insecurity in Nigeria has put both the government and the populace on the edge. There is hardly a day that passes without sorry tales of pre-meditated killings, armed robbery and other crimes and attacks nationwide. In the last few months, some prominent politicians and business moguls have been attacked, killed or robbed in unresolved circumstances. The intriguing aspects of these fatal developments is that the president, Musa Yar’Adua and his predecessor, in most cases authoritatively declared and lay blame on the Nigerian wobble economy, and anti-democratic forces. What these contending perspectives suggest is that the government has not shown any seriousness towards the issue of safety of life and property in Nigeria until the invasion of top political, business brass and appointees by the criminals. This underscores the haphazard response to the assaults and contradictory explanations coming from different government quarters pertaining to waves of attacks. These political tensions are compounded by the reality that Nigeria’s economy has grown since 1999, and yet this wealth has been neither seen nor felt by the last majority of Nigerians. Nearly three-quarters of the populace live on less than one dollar a day in a country that has earned oil revenues if at least USD 280 billion over three decades, excluding the past few years of high oil prices (Eme, 2009:2). Ethnic tensions, religious differences, limited economic opportunities, and numerous socio-political grievances are all fuelling the unrest in Nigeria and contributing to flashpoints for violence. In all the reactions so far, government has not even addressed the fundamental and immediate causes of these manifestations. All that have dominated former Obasanjo’s and Yar’Adua’s and Jonathan’s security


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question policy have been redeployment of police top brass and other security personnels without any attentions to the questions of political intolerance, unemployment, escalating impoverishment and the population’s despondency, all of which have made ordinary Nigerian, unbearable.

Nigeria projects an image of politics that is nasty, brutish, and bestial. In short, Nigeria and her leadership has dishonoured her past and fashioned a present that premises no future except more pains and shame and even more precarious existence. As a result of the above, analysts have variously described the Nigerian State as predatory, propaganda tilled, parasitic, patrimonial, decadent, criminalized, chronic, venal, irrational, cleptocratic and impotent. This image has been so powerful that even those who have risen top in her defense have been deeply influenced by it. The Nigerian militant group Boko Haram conducted a series of bombing attacks and armed assaults January 20 in the northern city of Kano, the capital of Kano State and second-largest city in Nigeria. The attacks, which reportedly included the employment of at least two suicide vehicle-born improvised explosive devices (VBIEDs), targeted a series of police facilities in Kano. These included the regional police headquarters, which directs police operations in Kano, Kastina and Jigawa States, as well as the State Security Service office and the Nigerian Immigration Service office. At least 211 people died in the Kano attacks, according to media reports. The group carried out a second wave of attacks in Bauchi State on January 22, bombing two unoccupied churches in the Bauchi metropolitan area and attacking a police station in the Tafawa Balewa local government area. Militants reportedly also tried to rob a bank in Tafawa Balewa the same day. Though security forces thwarted the robbery attempt, 10 people reportedly died in the clash, including two soldiers and a deputy police superintendent. In a third attach, Boko Haram militants attached a police sub-station in Kano on January 24 with small arms and improved hand grenades. A tally of reportedly lasted some 25 minutes, was not available. This armed assault stands out tactically from the January 20 suicide attacks against police stations in Kano. The operation could have been an attempt to liberate some of the Boko Haram militants the government arrested following the January 20 and January 22 attacks. Stratford has followed Boko Haram carefully to assess its intent and ability to become more transnational. As we noted after the U.S State Department issued warning in early November 2011 about Boko Haram’s alleged plans to strike Western-owned hotels in Abuja, Nigeria’s capital, the group made significant leaps in its operational capability during 2011. During that time, it transitioned form very simple attacks to successfully employing suicide VBIEDS. An examination of the recent attacks in Kano and Bauchi States, however, odes not reveal further advances in the group’s operational tradecraft and does not display any new ability or intent to project power beyond its traditional areas of operation. Now members of the National Youth Service Corps (NYSC) are rejecting postings to troubled spots with justification. On daily basis, there are cries of dependency and government appears to be helpless. Can the federal government restore security? What is responsible for all the sporadic bombings? Why has Jos remained a troubled spot? These are puzzles that seem to have no answers. Just recently, governors were at a crossroads. Although, it is the north that is primarily under siege, southern governors could not turn their eyes away from the plight of their kinsmen who reside in these troubled spots. The Nigeria Governors Forum (NGE) proposed some measures. Taking a global look at the socio economic and political realities that may underlie insecurity, it suggested a sort of ‘Marshal Plan’ to tackle the land. Some governors also reiterated their clamour for state police.


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Ekiti State Governor Kayode Fayemi, who spoke briefly with reporters in Abuja, Said that police was long overdue. He highlighted the numerous assistants given to state police commands by governors, including donation of vehicles, uniforms housing, guns, and even, bullets. He said it is illogical that the state governors, who are chief security officers, have no control over the police. Many reasons have been adduced for the state of insecurity ravaging the country. Some of them paled into conjunctures. But there is no evidence that government has got any lead as well. There is a monotony of assurances of normalcy from the Police Inspector General of Police (IGP), Mohammad Abubakar and Chief Defence Staff Air Vice Marhall Olu Pettinrin. To their consternation, the suicide bombers seem to have dwarfed security agents. There have been rumours that the north is aggrieved that the Presidency has stayed too long in the South contrary to agreement. Recently, former Security Adviser Gen. Patrick Aziza attributed the Security problem to the People Democratic Party’s (PDP) Zoning arrangement, which was jettisoned during the last presidential election. His remark caused a stir. Few Weeks after he was shoved aside. Others have argued that it was part of a clandestine plan by the Boko Haram sect to wipe out non-natives and adherents and other faiths. Taking exception to this, foremost commentator, Mallam Mohammed Haruna corrected the erroneous impression that the Boko Haram sect was waging a religious war against Christians alone, adding that Muslims are more causalities. He said the violence unleashed by the group has created strains on the economy of Northern Nigeria, emphasizing that Boko Haram is a threat to all Nigerians. He lamented that the media has been subjective in their reports of the conflict , complaining that reports were laced with anti-northern sentiment. Haruna also pointed out that the fear of Bomo Haram has made government to violate the rights of some Nigerians under the guise that they are suspects. The affected citizens, he said, are languishing in jail. The Chairman of Nigerian Guild of Editors, Mr. Gbenga Adefaye, urged reporters to avoid labeling and sentiments. If these are avoided , he counseled, misinformation would be avoided and tension reduced to the bearest minimum. An expert on security, Col. Gabriel Ajayi, who reflected on the security challenges facing the country at a recent birthday lecture in honour of Prof. Wole Soyinka in Lagos, berated the lip service being paid to security right from colonial days. He argued that security projections were limited to securing those in power, while the citizens are left in the wilderness of hope and despair. He added that since then, Nigeria has failed to develop a security system to sustain its socio-economic and political development. Ajayi, who covered the Agbekoya uprising as a reporter in 1969, lamented that, under the indigenous rulers, security was also tackled with aloofness and treated as a no go area. Even, Prime Minister Tafawa Balewa deliberately ignored warnings that a coup was about to depose or kill him. Military came and put up security system for tenure survival. It was the climax of the ‘Glover Syndrome’ of using the people to keep the people under bondage. Ajayi could not properly dissect the dreadful sect, Boko Haram. But the he acknowledged that the insurgency resembled a campaign of unidentified people who cannot be properly traced, a people who treat everywhere as no man’s land. The retired soldier compared deaths resulting from Boko Haram activities to the ones attributed to the carnage on bad roads, resulting from what he called siege on the people by government. In view of the above contending theses, this paper seeks to address the imperative of state police as a solution to security challenges in Nigeria. To achieve this objective, the first section of the paper


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examines conceptual issues. The next part argues for and against for state police. The third section discusses the imperative of state police. The final offers recommendations and concludes the paper. Clarification of Concept Security generally is a crosscutting, and multi-dimensional concept which has, over the last century, been the subject of great debate. However, long before that, the history of mankind was interspersed by the frenzied search for the best way of ensuring the security of people, their property, their territories, their states and their institute among others. In all places and countries, security has been considered as a “first order value” worth preserving. The foreign withstanding, there is no consensus about or agreed general definition of security. This is not surprising because as a social phenomenon, it is always the case which hardly lends itself to common understanding because it is often approached from different perspectives. Some security experts argued that the concept of security ha s always been associated with the safety and survival of the state and its citizens from harm or destruction or from dangerous threats. For some other, security measures the absence of treats to acquire values in a subjective sense, the absence of fear that such values will be attached. Thus a nation is secure to the extent to which it is not in danger of having to sacrifice core values if it wishes to avoid war, and is able, if challenged, to maintain them by victory in such a war (Maulaye, 2006: 17-18). Those conceptions generally hold that the state is the only institution on which primary responsibility and power for the safety of its territory and its people reposes (Zabadi, 2005:3). Therefore for some others, security consists of a functional and interdependent body of supervisory services and institutions. Security is also a situation wherein a person or thing is not exposed to any form of danger or risk of physical or moral aggression, accident, theft or deterioration. Both security and peace are together. The concept of “national security” is often misunderstood (Wolfer, 1962) and elusive (Carey, 2000). It is a strange phenomenon, a subjective “felling”, and therefore relational and relatives, rather than an objective “thing” than can be seen and handled. You cannot touch security – you can only feel secure. If security is something that can only be felt, it must be security from something (a threat of one sort or another). For the state, the most obvious threat is that posed by another state (a threat of invasion of control by another power leading to loss of independence). This is in a manifest in a military threat, or very significantly, in the perception of a threat. This offers an explanation of the fact that in the era of the cold war Great Britain did not feel threatened by the Russia. National security defined in terms of national survival is an illusion. It is an illusion because it is an erroneous perception of the African reality. It is used by the milling elite as a fine transparent concept for deluding the populace into thinking that government policies in this regard represent actions designed actually to protect them from hunger, disease, injustice, and violation of human dignity and life. Thus, in Nigeria the concept ‘national security has given rise to two dangerous doctrines of illusionism and militarism which is self-defeating. However, scholars are yet to agree on the definition of the term “national security”. This is not surprising because, the phenomenon of security is hardly precise. Yet two fundamental perspectives have emerged in the attempt to defend national security. One perspective focuses on strategic definition and the other, on the non-strategic definition by laying emphasis on socio-economic factors. The strategic –“realist” perspective conceptualizes national security in terms of self-defense by amassing arms to deter aggression. This perspective sees conflict between men and states as being endemic. To a great or lesser degree, therefore, the international political system can be seen as anarchic, power and the struggle for power and the control of resources is central to this manner of thinking. In this environment, states will only be constrained by pacts, audiences, treaties and tenets of international law that they see as being in


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their own interests. Security in this context concentrates in the military, military values, strategies and capabilities and the survival of the state. If security is focused on the survival of the state, then logically security has first call of the resources of the state. It is very noticeable that the first act of newly independent states is to create an armed force and that even in the poorest of states the military are well equipped and enjoy a high status in society. In this situation, to have a problem or issue labeled a “security issue” ensures that there is a flow of resources to solve the perceived threat or problem. Astute politicians, therefore, begin to promote essentially non-security issues as being matters of high security significance (Carey, 2000:57). According to Rourke and Boyer (2003):

From 1948 through 2002, for example, the world states spent about 1,300 times as much on their national military budgets (about $ 38 trillion) as on UN peacekeeping operations (about $29 billion). It just may be, then, the first secretary-general of the United Nations, Trygue lie was onto something when he suggested, “wars occur because people prepare for conflict, rather than for peace.

The responsibility of the state to provide security for itself and its citizens allows the state to impose all manner of draconian measures on society (e.g. Conscription, Official Secret Acts). In defending the state, the state itself assures major power itself, including the possibility of reorganizing socio-economic fabrics if society, as happened in both the First and Second world wars. In time of overt conflict, the whole of domestic society and politics are dominated by the single issue of security. The military is the agency of the state designed to protect the people, its territory and their most cherished values from external attack. The military is, therefore, created and organized in such a way to provide this protection. Soldiers are trained to kill and be killed in pursuit of the national interest. In the absence of external enemies, the Soldiers have turned their deadly skills against their compatriots. As Nnoli (2006:10) posits: One of the problems with these re-conceptualizations of national security is that they have not also re-conceptualized the military to conform to the new forms of security. Instead, the concept of peacekeeping is merely accreted to the orthodox concept of military. In Africa, this is not useful. The military, under the control of political leaders, still kill the people before a peacekeeping force is sent in from outside the country. Democracy has remained elusive. Vested interested in the present concept of the military on the part of both the military and the government, and the major powers whose national interests are significantly external in nature and who influence what concept prevail in the world community, have ensured that no fundamental changes have been advocated in the nature and functions of the military. Rigid and old thinking on the nature and functions of the military has produced the same effect.

In general, Braithwaite (1988:9) quoting the encyclopedia of the social sciences defines national security as “ability of a nation to protect its internal values from external threat”. Also, Lipmann defines it by stating that “a nation has security when it does not have to sacrifice its legitimate interest to avoid war, and is able, if challenged, to maintain them by war”. Morgenthau (1948) posits that national security and national interests are inter-related; where the former are seen in terms of power and therefore are the essence of politics. Imobigbe (1981) refers to it as the defense and survival of the state. The danger of looking at national security from this narrow angle according to Nweke (1988:1-2) is three-fold: First is the tendency to equate “defense” with “security” and to bestow undue responsibilities to the military as if the armed forces alone are the guardians of national security. This tendency in turn creates in the minds of the armed forces that it is only through them that security, stability and progress can be achieved. Second, national security has been used by civilian statesmen as political rhetorics or slogan for rallying the citizens in the face of perceived internal or external threats to the governments in power and for bolstering their local influence and political base (Adebayo, 1986:23). Late President Yar’ Adua told a joint session of the National Assembly before which we placed the 2008 Appropriation Bill:


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We intend to enhance the capacity and preparedness of our security services. We have therefore, proposed a total allocation of N444 billion (about 20%) for the military and the police. We are providing our security services with all requisite force enablers and multipliers, including arms and ammunitions, improved information and telecommunication equipment and facilities, riot control equipment, training and retraining and sundry logistics support (Oluwasegun and Anofi, 2007:2).

The most serious danger is the tendency to equate national security with the security of the state. The state in a capitalist state like Nigeria is an instrument for the preservation of capitalist socio-economic formation, which protects the interests of a privileged class vis-à-vis the rest of us (Ake 1984, 302). Dyke (1966), concludes as follows: There is no doubt that national security embodies the sovereignty of the state, the inviolability of its territorial boundaries, and the right to individual and collective self-defense against internal and external threats. But the state is secure only when the aggregate of people organized under it has a consciousness of belonging to a common sovereign political community; enjoy equal political freedom, human rights, economic opportunities, and when the state itself is able to ensure independence in its development and foreign policy. The non-strategic thesis thinks anew about security from armed aggression in the light of humankind’s failed effort to find it. This is because the strategic path has not brought us to a consistently secure place, it is only prudent to consider alternative, less – or avelled paths to security. These possible thesis including limiting or even abandoning our weapons altogether, creating international security force and standards of pacifism. According to Nnoli (2006:VII):

… a new concept of national security follows with a congruent new form of the military. National interest in Africa is defined as the creation and promotion of democracy, which goes beyond elections to policymaking and implementation through dialogue, reconciliation and consensus building. In order to defend this national security, the military must be organized along the lines of the principles of peacekeeping. It must be a military that is driven by the desire to emphasize early warning of violent conflict, separating the conflicting parties, reconciliation of these parties, the mediation of their disputes, and solution of their post-conflict relations and problems….

According to Al-Mashat (1985:14), national security is more than territorial defense and should focus on “the physical, social and psychological quality of life of a society and its members, both in the domestic setting and within the larger regional and global system”, Braithwaite (1988:9) adds: “it is submitted, therefore, that in the final analysis, the domestic, socio-economic and political environment of a sovereign state is the all-important and critical factor in national security considerations. Put succinctly, national security is positively correlated with the increase in the distributive capability and genuine democratization of a given state”. That is, “the tranquility and well-being of a society are pre-conditions for security” (Al-Mashat, 1985:XI). By well-being, I mean, the ability of the democratic state to provide its public with social, economic, and political conditions conducive to happiness and relative prosperity, which are some of the basic elements of national security. It is clear today that, the concentration of national security question on its strategic-military perspective alone breeds tension and resentment, leading to violent conflicts and civil wars and military coups, counter coups and state sponsored terrorism all over Africa. Consequent upon the above theses in the definition of national security, there is a contention between national security and individual freedom. Therefore the problem of national security, its definition or analysis is fundamentally, about, how much of individual freedom should be sacrificed for national security and how much power is required to maintain the proper balance between order and fundamental human rights and civil liberties. In order words, in Africa, the conceptualization of national security in terms of external attack is largely irrelevant. It must be viewed from the point of view of democracy, how to create and consolidate democracy in Africa. In fact, there is general acceptance that national security


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must go beyond the narrow focus on external attack and the use of military to defeat it. Hence, one hears of human security, global security, environmental security and various other forms of security, which require other than the military to attain. The main intellectual challenge to the accepted view of security came well before the formal end of the cold war. Buzan (1993) was a clear intellectual challenge but more subtly it exposed the limits of the strategic-military-traditional new of security and extended the debate about the nature of security. He added to the military aspects of security, the political, economic, societal and ecological aspects. In another respect he did not broaden, concentrating on the state as the main agency which can deliver security, although in doing so it was a necessary to work at what was happening within states and also at the systematic level. On this basis those military matters which had once dominated security studies were best thought of as only one part, which Buzan (1987) assigned to strategic studies (Freedman, 2003:258). Freedman (1998:53) view is that: Once anything that generates anxiety or threatens the quality of life in some respect becomes labeled as a “security problem” the field risks losing all focus. Such an agenda as potentially rich, and is certainly inclusive, but it can also be off-puttingly vague. Inappropriate conclusions are likely to be reached of issues that are quite different in kind are squeezed into an unsuitable conceptual framework geared to military threats. The notion of economic security thus encourages a confrontational approach to trace policy, while that of “environmental security” has often served more to confuse than to clarify by encouraging a search for adversaries. Waever (1995) captures this sort of problem through this helpful notion of “securitization”, which addresses the interesting question as to why some issues rather than others are considered to be problems of security. His point is that when issues are assigned this status they acquire extra significance, which can legitimize the mobilization of resources and the adoption of urgent and extra ordinary measures. He therefore, along with Buzan (1993), that the key question is what issues become “securitized” and how this takes place, and under what conditions can be “de-securitized”. Each of the political, economical, societal and ecological aspects identified ‘earlier by Buzan (1993) can then be considered in these terms. This provides a basis for explaining why the issue of “environmental security”, for example, has emerged but also why it is important to challenge this designation (Freedman, 2003:758-9). Freedman (2003:760) concludes: Nor does a focus on force require neglect of the economic, social and political dimensions. These all shape security environments, helps defend what is to be defended and the factors which might generate threats. To make sense of Iraqi’s occupation of Kuwait in 1990 the importance of indebtedness and declining oil price must be understood. Oil helps explain – in part- Russia’s effort to hold on to Chechnya. Environmental abuse, the drug trade and people trafficking can all aggravate tension between states and create powerful grievances in a population. Violence in the Balkans has been influenced at every turn by cultural factors. The restriction comes in resisting attempts to distinguish security issues in these dimensions separate from those connected to armed force. It is unlikely that a conceptual framework devised with armed force in mind will suit these other dimensions, and if separate frameworks are required then there can be one. However, contemporary definition of security, especially since the fall of the Berlin wall goes beyond the traditional context. It embraces new domains as varied as individual security, collective security and social, political, economic, legal judicial, financial, food, health, environmental ad other aspects of security. It has even added a philosophical dimension, as Baron Montesquieu says: “security is tranquility of mind stemming from each one’s idea of his personal safety” (cited in Moulaye, 2006:19) State Police: The Contending Theses


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In the face of the deploring security situation confronting the nation at this time, some proponent of a state police believe that it is only a decentralisation of the force as practiced in most developed countries can rescue the nation from the precipice. Doing so, they maintain, will give room for the central command to focus on raising a crop of highly professional crop of central squad that may be deployed from time to time when the need arises. At present, the police strength is put at about 371,800 as against a population of 150 million Nigerians. Judged by the United Nations Standard, the number of available policemen is grossly inadequate as it does not meet the 400 to 1 ratio requirement. With a state police structure, the federating units would be able to determine their security needs and raise enough manpower to meet them (Eme,et.al,2009:15). Beside, each state has its own peculiar security challenges which can only be better managed by the officers who are familiar with the terrain, culture and way of life of a particular people in a given locality. While for, instance, the trend of violence and criminally ongoing in the northern region bother essentially on religions fundamentalism, the South-East and South-South regions have always grappled with kidnapping, armed robbery, youth militancy and vandalism as their own peculiar security situation. Within the Southwest Region, especially Metropolitan Lagos, area boys syndrome and hooliganism have remained a unique future of the environment. It is, therefore, believed that only a decentralized police structure where people who hail from an area and are familiar with the terrain and the criminals in the neighborhood are entrusted with responsibility of policing that can carry out effective contain crime and criminality. In developed nations, the police are trained according to the peculiarities of the localities in which they operate. Nevertheless, those on the other side of the fence are often too quick to puncture this argument. In the opinion of some stakeholders, creating state police at this stage of the present democratic experiment may be an invitation to chaos. Apart from the impunity of office and the possibility of abuse of power, state police could lead to the disintegration of the country, especially now with the fragile unity in the country. In the pre-independence era, the Native Authorities were in direct control of their domains. It was the primary responsibility of the NA police to maintain law and order ion their respective localities. Through the NA police departments, the naïve authorities were able to enforce local ordinances, byelaws, rules and regulations of the localities or municipalities over which they presided. It was the intervention of the military in the nation’s body politics that foisted a centralized police force on the entire country under the present quasi-unitary system of government. Regardless of the pros and cons of the debates, creation of a State Police structure would also be a major leap in the nation’s match towards the much cherished true federalism that has eluded the nation for a long time. It is sine-qua non to genuine principles of true federalism. In the immediate post independent era when regional government was in direct control of its affairs, each region has its own police structure independent of the power at the centre. However, history has it that some regional political leaders abused local policing as the local police force was used as instrument of political intimidations and harassments against their opponents. Even now, the tendency is still very high for some over ambitious political leaders to turn state police to an instrument of apolitical vendetta. The immediate past experience in Anambra State where a sitting governor, Dr. Chris Ngige, was abducted in the broad day light through the connivance of the police is a good case in point. But the answer is neither here nor there. So, unless there is a proper reform and adequate checks and balances, state police can equally become a willing tool in the hands of the politicians, especially the overbearing ones.


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A former Minister of Police Affairs and Governor of the old Oyo State, Gen David Jemibewon, has however suggested creation of Zonal police command as a way of forestalling abuse of power by the state governor. In an interview with Sunday sun, he said, “my view is that there should be state police”(). However, because there are 36 states now and if every state is to have state police, it means that there will be 37 police forces in Nigeria. That may be unwieldy. The 37th will be federal police. Therefore, what Jemibewon advocated now is zonal police command. This is more so now that we have six geo-political zones in the country. And in doing so, we must ensure that the police officers in each zone are people who are domiciled there. For instance, if you have western police command, it must be made up of people who are residents in the western zone of the country. The same thing in the Easter zone, it must be people who are resident there what is simply means that there will still be federal police in addition to six zonal command. If anything happens, for example, the Northwest and the situation is so bad that you have to bring some policemen from other places, they will just decide which zone should contribute to that zone to deal with the situation. Under the arrangement, we may, however, have a single inspector General of Police and Deputy Inspector General in each geo-political zone. Pro state police proponents support their theses using United State’ State police as a case in point. In all the 50 State of the United States, there are individual state police that enforce state laws and rules and regulations without much interference from the federal law enforcements, except in a special circumstance like September 11, 2003 attack on Pentagon House World Trade Centre where the US Federal Government may want to exercise some supremacy. The state police have statewide authority to conduct law enforcement activities and criminal investigations. Hawaii is the only state that does not have a specifically named state police/highway patrol force. The functions of state-wide law enforcement are instead undertaken by the Sheriff Division of the Hawaii Department of Public Safety. In General, state police perform functions outside the jurisdiction of the country Sheriff (Vermont being a notable exception), such a enforcing traffic laws on the highways and infer estate expressways, overseeing the security of the state capitol complex, protecting the governor, training new officers for local police forces too small to operate an academy, providing technological and scientific support services, and helping to coordinate multi-jurisdictional task force activity in serious or complicated cases in those states that grant full police powers statewide. In many states, the state police are known by different names. However, most have the same jurisdiction over the entire state as the agencies that are simply called “state Police”. The rankings of the highway patrol may be trooper or officer. The names are usually historical and do not necessarily describe the agency’s function or jurisdiction. These forces are fully empowered law enforcement agencies with statewide jurisdiction, which conduct patrols and respond to calls for service and perform all the other aforementioned duties. The State Police may be the name of the independent agency or may fall under a Department of Public Safety. These states are Arkansas, Connecticut, Delaware, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia. Creation of state police is seen as a step towards actualizing the sustained campaign for community policing community policing is a philosophy that promotes organizational strategies, which support the systematic use of partnership and problem solving techniques, to proactively address the immediate conditions that give rise to public safety issues such as crime, social disorder, and fear of crime. It embraces community partnerships and collaborative partnerships between the law enforcement agency and the individuals and organizations they serve to develop solutions to problems and increase trust in


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policing in Nigeria in the recent time. The idea is to bring stressing the need for community policing as a way of combating the myriads of security challenges currently facing the nation. Jemibewon introduced community policing to the Nigeria Police. Community policing is more than the Nigeria police. Community policing is more than the impression you are trying to create now by saying that people should give them information. Community policing actually involves a process by which people can ascertain which police officers is assigned to a particular area. We should be able to know who his is and too should be able to know by name the head of every family or household. And he should be involved in almost all their social activities. He is seen as part of that society. In that manner, if a visitor comes in, under 24 hours, he will know that this is a stranger. He virtually will know everybody such that even before a crime is committed, there are already people they will suspect because they would have known the pattern and character behaviour of everybody within the society. Some stakeholders have described the call by the Governors’ Forum for creation of state police and special intervention fund as self-serving. Many have even questioned the governors on how they spend security monthly security votes they get. Under the present arrangement, state governors are entitled to certain amount of allocation as security votes which are unaccounted for. Obviously, a decentralized police structure will put additional financial responsibility on the states. And there is the fear in some quarters that the development may put some under funded state under undue pressure, if the responsibility of policing is put on there care. This explains the rational behind the governors demand for a special intervention fund to confront the security challenges facing the country. But the argument has been faulted because there has been no proper accountability on security votes accruing to the states. Recommendations Conflicts have multi-dimensional causes. Since Nigerians endorsed democracy in 1999, threats to civil rule should be averted. Nigerians believe that poverty, poor education and bad leadership were precursors to any crisis. The solution is good leadership. Other solutions include the marriage of native security and modern security to meet the needs of contemporary times. We need military operations, whereby, as we are welfare of people by providing roads, hospital employing force, we are also promoting the welfare of people by providing roads, hospitals, employment and other amenities. The suggestions tallied with the advice given by a lawyer, Mr. Kola Awodein (SAN). At a lecture on true federalism and restructuring of the polity in Lagos, he said Nigeria should copy the policing methods of federal countries which are tailored towards community policing based on the police knowledge and understanding of the peculiar security needs of the local areas. A journalist, Patrick Opoze, who aligned with this view, urged the government to uplift the current standard of policing. Policemen lack manpower, training and equipment and this should not be so (kajo, 2012:5). Also, there is the for a one year compulsory military training or graduates ,and a Sovereign National Conference (SNG), because, unless we have it, we cannot stand in brotherhood. In fact, some security experts should send representatives to the conference to assist in stemming bombings. Insurgency and militancy and other forms of uprising of group protests against constituted authorities occur most of the time because peaceful and genuine aspirations of groups of people are disregarded over


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long periods. Armed rebellion does not occur over night anywhere in the world. Resort to violence is often times after peaceful protests and request have been ignored for unjustifiably long periods. Speaking at a lecture titled. Roadmap to National Peace and Sustainable Democracy”, organized by the Coalition of Ethnic Nationalities of Nigeria (CENN), Sabo, who was represented by Col Olu Majoyegbe (rtd), recalled that militancy in the Niger Delta was nipped in the bud, following the strategies intervention of the late President Umaru Yar-Adua’s Administration. He lamented that the culture of respecting the views of ethnic blocs and groups propagating legitimate causes, have not have sustained in the country’s. He maintained that the best groups to articulate such group demands are those today derisively referred to as ethnic nationalities, adding that “government ought to as a matter of policy engage genuine ethnic national groups as effective partners in the arduous task of nation-building. Sabo said, if this is done, the emergence of militants, insurgents and separatists would become unlikely with the high level of equity and justice such a policy would engender(Oderemi, 2012: 8 ). Government working in synergy with ethnic nationality groups will create such an atmosphere of fairness, equity and commons destiny that would eliminating the security challenges, which may tear the nation apart in the future. Conclusion Since the beginning of the Nigeria’s Fourth Republic, robbers, kidnappers, and other criminal gangs have intensified their activities. They are everywhere, on street, and highway, in our homes, and banks, party officers and campaign and voting centres. They rob, kill, and maim. All the security outfits do now is to bark without the ability to bite. The question most Nigerians ask everyday is: who will be the next victim? The security outfits whose constitutional duties and responsibilities is to control crime appear helpless. So many factors are said to be responsible for their inactivity. Among them are poor funding, lack of motivation and poor welfare services. They lack equipment and functional vehicles for their operation. Arms and ammunition are problems too. Faced with the upsurge of crimes, these security outfits are unable to perform. Some of the fallouts of this kind of situation include: social and political displacement and dislocation, social tensions, citizenship question, deepening of hunger and poverty in society and political insecurity and instability in the polity. Achieving change in ways that policing is conducted in Nigeria will ultimately mean the basic protection of citizens. This requires improved security budgets, communication equipments, better training and orientation and constitutional and political restructuring. The introduction of state police will go a long way in meeting these demands. References

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