Abiola John Asaleye, Abiola Ayopo Babajide, Henry Inegbedion, Damilola Felix Eluyela, Adedoyin Isola Lawal and Rotdelmwa Filibus Maimako
The issues of ineffective accountability have affected the performance of banks, which led the Nigerian government to introduce various reforms and policies. However, despite…
Abstract
Purpose
The issues of ineffective accountability have affected the performance of banks, which led the Nigerian government to introduce various reforms and policies. However, despite these attempts, the Nigerian banking sector experiences setbacks due to mismanagement of funds, fraudulent activities and lack of proper accountability, which negatively affects employment and income.
Design/methodology/approach
The dynamic least square was employed to investigate the selected indicators of Nigerian banks’ accountability, income and employment. Likewise, the study examined the causal effect using the Granger non-causality approach.
Findings
In the income equation, the total amount of fraud, deposit, total bank asset has a negative relationship with the income, while loan advance and operating expense depicted a positive relationship. In the employment equation, demand deposit, operating cost and bank total asset practices negatively affect employment. In contrast, loan advances and saving deposits have a positive relationship with employment in the long run.
Practical implications
Based on the findings, this study suggests, among others, the need for long-term systematic policies and reforms to improve the level of accountability in the Nigerian banking sector.
Originality/value
To the best of our knowledge, empirical studies examining the nexus between employment and accountability in the banking sector remain scarce in the literature. Therefore, this study examines the causality and long-run relationship between accountability and employment in Nigerian Banks.
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Abiola John Asaleye, Joseph Olufemi Ogunjobi and Omotola Adedoyin Ezenwoke
The implications of trade on developing economies have generated substantial debates with most studies focussed on “openness in the policy”. Hence, the purpose of this study is to…
Abstract
Purpose
The implications of trade on developing economies have generated substantial debates with most studies focussed on “openness in the policy”. Hence, the purpose of this study is to focus on “openness in practice”.
Design/methodology/approach
This study uses two models and employed the vector error correction model and structural vector autoregression, first, to examine the sectoral effects; second, to investigate the efficacy of neoclassical and new trade theories; and third, to analyse the effect of trade openness shock on Nigerian labour market performance.
Findings
The results of the first model showed that trade openness has an adverse effect on employment and wages in both the agriculture and manufacturing sectors. Likewise, the study concludes that the new trade theory explains trade's behaviour on employment and wages in Nigeria. The second model showed that the effect of error shock from trade openness affected wages more than employment.
Research limitations/implications
The study ignores the distributional effects due to unavailability of data.
Practical implications
The study suggested, amongst others, the need for policies mix on the labour market via a coherent set of initiatives in other to increase the competitiveness of Nigeria in the international market.
Originality/value
Most studies focussed on openness in policy through the channels identified in the literature. However, this study investigates these channels in “openness in practice” and investigates trade theories' efficacy on manufacturing and agricultural sectors in Nigeria, which has been neglected in the literature.
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Abiola Ayopo Babajide, Adedoyin Isola Lawal, Lanre Olaolu Amodu, Abiola John Asaleye, Olabanji Olukayode Ewetan, Felicia Omowunmi Olokoyo and Oluwatoyin Augustina Matthew
The unhealthy drive for deposit in the banking sector has pushed many banks into unethical practices, thereby resulting in high-level corruption cases in the banking sector. The…
Abstract
Purpose
The unhealthy drive for deposit in the banking sector has pushed many banks into unethical practices, thereby resulting in high-level corruption cases in the banking sector. The purpose of this study is to investigate the short- and long-run linkages between bank net interest income and deposit liabilities interacted with corruption, to establish the influence of corruption in deposit mobilisation drive of banks in Nigeria. Also, the study analysed the causal relationship between selected bank variables and fraud.
Design/methodology/approach
The study used quarterly data on selected variables from 1Q 1993 to 4Q 2017 sourced from Nigerian Deposit Insurance Corporation (NDIC) annual reports and Central Bank of Nigeria (CBN) Statistical Bulletin of various issues. Deposit Money Bank various deposit liabilities are interacted with a corruption index and used as the independent variables, while bank earnings serve as the dependent variable. Error Correction Model (ECM) and Engel Granger approach to co-integration technique were used to analyse the data.
Findings
The findings reveal that various bank deposit liabilities interacted with corruption index has a negative effect on bank profitability in the long run, though only corrupt fixed deposit is statistically significant at the 5 per cent significance level. Bank total asset, total loan and advances and fraud have a significant effect on bank profitability at 1 and 10 per cent significance level. The findings also reveal that banks profit from corrupt fixed deposit and demand deposit in the short run.
Social implications
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Originality/value
The literature is awash with bank lending corruption and various institutional factors such as competition among banks, credit bureau and information sharing about borrowers, bank supervisory policies, loan loss provisioning, bank ownership structure and regulatory environment and anti-corruption measures. The aspect of deposit mobilisation and corruption has not been well researched in literature; this study, therefore, fills the gap in the literature by examining the extent deposit money banks contributed to corruption in Nigeria through their cutthroat deposit mobilisation drive.
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Abiola John Asaleye, Philip O. Alege, Adedoyin Isola Lawal, Olabisi Popoola and Adeyemi A. Ogundipe
One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate…
Abstract
Purpose
One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate the relationship between cash crop financing and agricultural performance in Nigeria.
Design/methodology
Four crops were considered, namely, cotton, cocoa, groundnut and palm oil. The impact of cash crop finance shock on agricultural performance was investigated using the vector error correction model (VECM), while the long-run relationship was examined through the identification of long-run restrictions on the VECM.
Findings
The variance decomposition showed that financing shock is more sensitive to cause variation in aggregate employment than aggregate agricultural output in palm oil, while for cocoa, cotton and groundnut showed otherwise. The long-run structural equations exert a positive relationship between cash crop financing and agricultural performance, except for oil palm and cocoa financing that has a negative connection with agrarian employment.
Research limitations/implications
The study is limited to the unavailability of data for agriculture sector capital utilisation, which was not used.
Practical implications
These results show that long-run benefit can be maximised by appropriate funding in cotton and groundnut production to promote sustainable growth.
Originality/value
The study examines the impact of cash crop financing on agricultural performance with the aim to promote sustainable growth in Nigeria using identified VECM.
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Henry Egbezien Inegbedion, Emmanuel Edo Inegbedion, Eseosa David Obadiaru, Abiola John Asaleye, Adebanji Ayeni and Charity Aremu
The study examined policy improvement and cassava attractiveness. The purpose was to determine the optimum rewards using three strategies: selling of farm produce to harvesters…
Abstract
Purpose
The study examined policy improvement and cassava attractiveness. The purpose was to determine the optimum rewards using three strategies: selling of farm produce to harvesters, making wholesale of harvested outputs and retailing harvested outputs.
Design/methodology/approach
Three hundred and sixty (360) cassava farmers were surveyed in three local government areas in Edo South senatorial district of Nigeria. From their responses, probabilities were assigned to rewards for each strategy from each of the locations. Subsequently, dynamic programming was employed in data analysis. Specifically, Howard policy improvement technique was used to forecast expected rewards to cassava farmers in the three local government areas using the three strategies.
Findings
Cassava farmers in Edo South senatorial district of Edo state, Nigeria, can maximize their earnings from cassava by retailing at the local markets in Oredo and Egor local government areas and by making wholesales at Ikpoba Okha local government area. Using this policy, they will realize approximately N2360 per basin and approximately N33040 per plot of 100 × 100 ft. This will translate to N143724 per acre (4.35 plots of 100 ft2).
Research limitations/implications
Availability of storage facilities as well as technical constraints to cassava production.
Social implications
Provision of jobs to the unemployed, thereby reducing the level of unemployment in the country.
Originality/value
Suggestion of the sales strategy that will yield optimum returns to cassava farmers, using policy iteration technique, and the projected estimates of the likely turnover when the strategy is adopted. This is a point of departure from previous studies. Thus, the study used operations research methodology to model solutions, through involvement in agriculture, to Nigeria's economic/financial problems, thus making it unique. In broad terms the study demonstrates that investment in agriculture will help to reduce unemployment and enhance the country's national income.