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Article
Publication date: 2 June 2022

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…

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.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 25 March 2022

Abiola Ayopo Babajide, Demola Obembe, Helen Solomon and Kassa Woldesenbet

This paper examines mechanisms through which social capital strengthens microfinance impact on fostering female entrepreneurial success. Specifically, the study focuses on…

Abstract

Purpose

This paper examines mechanisms through which social capital strengthens microfinance impact on fostering female entrepreneurial success. Specifically, the study focuses on how, and to what extent, resources embedded in social networks determine MF impact on entrepreneurial success.

Design/methodology/approach

Survey data were collected from 276 female micro-institutions entrepreneurs using multi-stage stratified random sampling across 80 MF institutions in three South-Western Nigerian states. Hypotheses were tested using ordinal regression analysis.

Findings

The study found that relational and network social capital had a positive and significant influence on female entrepreneurial success. Specifically, intra-group trust and productive network ties amongst female entrepreneurs in poor communities predicated the positive impact of MF on entrepreneurial success. Also, resources embedded in networks are more positively correlated to education level and marital status. Furthermore, MF could have more positive impact for borrowers with sustainable relationships with loan officers who organise MF provisions and understand the entrepreneurs’ context.

Originality/value

The research provides empirical evidence for the relationship dynamics between female entrepreneurs and MF institutions, by emphasising the importance of deploying different forms of social capital in sustaining MF impact on female entrepreneurial success.

Details

International Journal of Social Economics, vol. 49 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 7 April 2020

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…

1616

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

Text

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.

Details

Journal of Money Laundering Control, vol. 23 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 7 August 2018

Omobola Adu, Oghogho Edosomwan, Abiola Ayopo Babajide and Felicia Olokoyo

The industrial sector has been identified as one of the means to address the issue of unemployment due to its role in ensuring sustainable development. However, evidence…

Abstract

Purpose

The industrial sector has been identified as one of the means to address the issue of unemployment due to its role in ensuring sustainable development. However, evidence from the Central Bank of Nigeria Statistical Bulletin reveals that the sector lags behind the agricultural and services sector in terms of its contribution to the gross domestic product. In light of this, the purpose of this paper is to ascertain whether the industrial sector development is a veritable tool in addressing the issue of unemployment in the long run for the Nigerian economy.

Design/methodology/approach

In order to determine whether industrial development is a veritable tool in addressing the issue of unemployment in the long run, the study makes use of the Autoregressive Distributed Lag model. The choice of this method over the commonly used Johansen co-integration approach is that it provides the mechanism to estimate the model in the presence of different order of integration among the macroeconomic variables; it allows us to combine and I(0) and I(1) series, while there is strict assumption of I(1) for all variables under the Johansen approach.

Findings

The major finding of the paper is that an inverse and elastic relationship exists between industrial output and unemployment. This suggests that the unemployment rate is very sensitive to changes in the industrial sector in Nigeria.

Research limitations/implications

The major limitation is the availability of recent data to capture recent happenings in the Nigerian economy.

Originality/value

The paper considers the entire sector encompassed in the industrial sector as opposed to focusing on just the manufacturing sector.

Details

International Journal of Social Economics, vol. 46 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 30 June 2020

Olabanji Olukayode Ewetan, Romanus Osabohien, Oluwatoyin Augustina Matthew, Abiola Ayopo Babajide and Ese Urhie

The purpose of this paper is to examine the relationship between fiscal federalism and accountability in Nigeria. Corruption is a global plague and is endemic in nature…

Abstract

Purpose

The purpose of this paper is to examine the relationship between fiscal federalism and accountability in Nigeria. Corruption is a global plague and is endemic in nature. Several policies have been adopted by the Nigerian Government to institutionalize accountability and combat the scourge of corruption that have hindered socio-economic progress but to no avail.

Design/methodology/approach

Thus, this study examined fiscal federalism and accountability issues in Nigeria using secondary data and used the auto-regressive distributed lag econometric technique to analyse the data.

Findings

The results from this study reveal that fiscal federalism fails to mitigate corruption in the long run in Nigeria because of poor bureaucratic quality (BQ) and ineffective law and order (LOR).

Social implications

Fiscal decentralization must be accompanied by legislations that will strengthen BQ of fiscal institutions at subnational levels and promote effective LOR.

Originality/value

This study recommends that for fiscal federalism to mitigate corruption in the long run, government must adopt appropriate policies to improve BQ and further strengthen LOR in Nigeria. The finding also suggests that to promote public sector accountability in Nigeria, government should ensure the simultaneous decentralization of expenditure and revenue to lower tiers of government. This study provides detailed empirical evidence that fiscal decentralization without accountability will accentuate public sector corruption, and in the long run, weaken local economic development initiative to boost growth and development.

Details

Journal of Money Laundering Control, vol. 24 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 30 March 2020

Oluwatoyin Augustina Matthew, Abiola Ayopo Babajide, Romanus Osabohien, Anthonia Adeniji, Olabanji Olukayode Ewetan, Omobola Adu, Folasade Adegboye, Felicia Omowunmi Olokoyo, Oluwasogo Adediran, Ese Urhie, Oluwatosin Edafe and Osayande Itua

The purpose of this paper is to examine the challenges of accountability and development in Nigeria. In the literature, corruption is seen as an indicator of a lack of…

Abstract

Purpose

The purpose of this paper is to examine the challenges of accountability and development in Nigeria. In the literature, corruption is seen as an indicator of a lack of political accountability in most countries of the world, especially in less developed countries such as Nigeria. The Nigerian Government has taken several actions to address the problems of bad governance and corruption that have impeded economic development, but unfortunately these measures have not yielded the desired results.

Design/methodology/approach

Thus, this study examined accountability and developmental issues in Nigeria using secondary data and then made use of the auto-regressive distributed lag econometric technique to analyze the data.

Findings

The results from the study found that a rise in total government expenditure poses a danger of reducing Nigeria’s economic development in the long run and that control of corruption and political (the institutional variables) has a direct and significant effect on Nigeria’s economic development.

Originality/value

Therefore, upon these findings, this paper recommended that for Nigeria to experience development, corruption should be eliminated, and the Nigerian Government should spend on viable projects and economic activities that will be beneficial to the populace and the society at large and hence bring about economic development. Accountability is the hallmark of a prudent government that ensures efficient management of resources and transparency in the utilization of funds by the government. The absence of accountability mechanism allows corruption to thrive, which hinders the developmental process.

Details

Journal of Money Laundering Control, vol. 23 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

Book part
Publication date: 13 May 2019

Lawal Adedoyin Isola, Babajide Abiola Ayopo, Asaleye Abiola and IseOlorunkanmi O. Joseph

Recent evidences show that terrorism is becoming frequent in Nigeria, ranging from incessant Boko Haram activities in the North East; Independent People of Biafra (IPOB…

Abstract

Recent evidences show that terrorism is becoming frequent in Nigeria, ranging from incessant Boko Haram activities in the North East; Independent People of Biafra (IPOB) activities in the South-East states, kidnapping and vandalizing oil pipes in the South-South, Fulani-herdsmen attacks in the Middle Belt, among others. In an attempt to tackle terrorism, the Federal Government at different times adopted military actions with little or no lasting solution. The Have and Have-nots hypothesis (Shahbaz, 2013) stresses the role of economic phenomenon in determining the causes of terrorism. It is on this note that this chapter investigates the linkages between economic growth proxy by gross domestic product per capita (GDPPC) and other fundamental variables such as inflation, unemployment, and inequality gaps, among others; and terrorism in Nigeria. We intend to know whether cointegration exists between the two constructs; and if it does, is there causality? The study employed both the autoregressive distributed lag (ARDL) and the vector error correction model (VECM) approaches to examine the existence of or otherwise a long-run relationship as well as causality among the constructs. Results reveal that a compelling cointegrating relationship exists among the variables. It is further revealed that unemployment, inequality, poverty, inflation, among others, Granger cause terrorism. It stresses that the Have-not hypothesis explained the causes of terrorism in Nigeria. The study therefore suggests that policy makers should, in order to prevent or combat terrorism, focus on improving the economy by creating job opportunities through provision of conducive environment that supports businesses and reduces inequality gaps.

Details

The Impact of Global Terrorism on Economic and Political Development
Type: Book
ISBN: 978-1-78769-919-9

Keywords

Article
Publication date: 6 November 2017

Abiola Ayopo Babajide, Joseph Niyan Taiwo and Kehinde Adekunle Adetiloye

The successful story of microfinance institutions is often tied to the practice and methods of credit delivery as evidence among international world class microfinance…

Abstract

Purpose

The successful story of microfinance institutions is often tied to the practice and methods of credit delivery as evidence among international world class microfinance institutions across the globe. The purpose of this paper is to examine the impact of practice and methods of credit delivery employed by “non- profit” and “for-profit” microfinance institutions on financial sustainability and outreach programmes of the microfinance institutions in Nigeria.

Design/methodology/approach

The study adopts the survey research design and multi-stage stratified random sampling procedure to collect data from 372 senior management staff, managing directors and board members of microfinance institutions of both groups in Nigeria. Data collected were analyzed using descriptive statistics and multiple regressions analysis.

Findings

The findings suggest that the current practice and methods of credit delivery of microfinance in both “non-profit” and “for-profit” microfinance institutions have an inverse relationship with the financial sustainability and outreach programmes of the institutions. This study provides empirical evidence for the incessant failure of microfinance institutions in Nigeria.

Research limitations/implications

The study therefore recommends an immediate overhaul of the methodology and practice of microfinance institutions in the country to align with international best practice.

Originality/value

In spite of the huge literature on microfinance in Nigeria, there is not enough evidence to empirically prove that the practice of microfinance has affected the performance of the industry in Nigeria. This study sets out to fill that gap in the literature. The paper examines the practice of microfinancing in Nigeria vis-à-vis the performance of the microfinance institutions, categorized into NGO and microfinance bank “for-profit” institutions using international best practices from countries where microfinance is highly successful as a benchmark for deployment of microfinance in Nigeria, in order to proffer policy direction to stakeholders on steps to take to ensure viability in the microfinance subsector in Nigeria.

Details

International Journal of Social Economics, vol. 44 no. 11
Type: Research Article
ISSN: 0306-8293

Keywords

Abstract

Details

The Impacts of Monetary Policy in the 21st Century: Perspectives from Emerging Economies
Type: Book
ISBN: 978-1-78973-319-8

Content available
Book part
Publication date: 13 May 2019

Abstract

Details

The Impact of Global Terrorism on Economic and Political Development
Type: Book
ISBN: 978-1-78769-919-9

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