Showing posts with label Business Administration. Show all posts

Monday 17 January 2022

IMPACT OF POVERTY ON THE ECONOMIC GROWTH OF NIGERIA

CHAPTER ONE

GENERAL INTRODUCTION

1.1Background to the study

Poverty is a plague-affecting people all over the world and it is a condition that denies individuals the right to exercise their full potentials. There is no universally accepted definition of poverty, but poverty can be defined as having insufficient income to meet the basic human needs of life. If the real national income of a country is small that country will be poor, and a higher standard of living for its people can be achieved only by an increase in the total volume of production. Poverty often been defined as a situation of low income or low consumption.

Absolute and Relative poverty can also be seen from two perspective microeconomics and macroeconomics. In micro economics terms, poverty refers to a situation in which individual persons or households are not able to satisfy their basic needs. From a macroeconomic perspective, poverty exists when the average inhabitants of a country live below the minimum subsistence level. Thus, while the macroeconomic concept specifies the country, micro economic perspective is concerned with households or individuals.

Governments concern for the fate of the poor in developing countries has heightened in recent years but the economies of these countries were constrained with a rather hostile external and internal economic and environmental hardship. Some of these entanglement encountered are a recurring external debt-servicing burdens, disequilibrium in terms of trade, high and widespread unemployment, high rate of inflation, capital flight, low capacity utilization and high population growth. To that extent, sharp criticisms emanated from the various corners of the country about the inability of the government to design and implement strategies for meeting the basic human needs of the society so as to ensure a just and egalitarian society. Apparently, the plights of the poor and the need to rearticulate development programmes have dominated discussions of contemporary schemes. However, Nigeria is yet to formulate a rehabilitative welfare package directed towards alleviating poverty problems despite the attention and seriousness it deserves. A large proportion of Nigerians in the rural area still lack access to the basic social services. This is unconnected with the nature of the strategies, which are broad based and not targeted at any particular group. Various development plans designed to cushion the social welfare of the people has not been implemented to the latter. Better still, the expenditure structures of the government really give credence and confirm her unflinching commitment to the people’s welfare. Yet, mass poverty has remained the most prevalent socio-economic problem in Nigeria society.

Poverty is one of the intractable problems facing mankind today. In 1995, an estimated 1.3 billion people out of the estimated 5.8 billion people in the world were living in the shackles of extreme poverty, living on less than one dollar a day (Human Development Report, 1998)Nigeria has one of the greatest development potentials in Africa given the vastness of her resources and above all her rich human resource endowment. But regardless of these potentials Nigeria is still among the poorest countries of the world. The economy is mired by multiple difficulties. On the basis of widespread economic crisis, and the recent global economic meltdown, the country is unable to raise the standard of living of its citizens to an appreciable height. Thus poverty, in both absolute and relative terms, constitutes one of the most serious problems confronting Nigeria. Statistically, between 1960 and 1980, the poverty level covered about 28.0 percent of the population; by 1996 it rose alarmingly to about 66 percent of the population (Aliju, 2001).

According to the United Nation Development Program Human Development Report (2008-2009) which combined such components as; level of inequality, life expectancy at birth, standard of living and access to knowledge, and education, between 2004 and 2009 poverty in Nigeria has worsened from 0.43 to 0.49. This shows that despite its vast resources, Nigeria ranks among the 25 poorest countries of the world. In fact, poverty has been a serious challenge to governments in Nigeria. Its effect, which includes lack and deprivation in the basic necessities of life, is worrisome.

Poverty humiliates and dehumanizes its victim Ukpong (1996). To this end government and people in authority almost always strive to ensure that adequate structural programs are enshrined to see that poverty if not eradicated, is reduced to the barest minimum. Poverty alleviation strategies ranging from Operation Feed the Nation of 1978, the Green Revolution of 1982, the Directorate of Foods Roads and Rural Infrastructures DFFRI, the National Directorate for Employment NDE, Poverty Alleviation Program PAP, the National Poverty Eradication Program, NAPEP up to the Seven – Point Agenda were all attempts made by various governments in the country in order to curb the menace of poverty.

Finally, the indicators of poverty in Nigeria will remain alarming. Poverty alleviation in Nigeria requires among other strategies, the access of the poor to productive assets, the raising of their returns on the assets, increasing their access to education and health services, improving their employment opportunities and supplementing their resources with income or resource transfer.

1.2 statement of research problem

Poverty in Nigeria has continued to growth worse and wide spread. Firstly, the high rate of unemployment may also be responsible for poverty in Nigeria. The inability to get good jobs that produce a decent income leads to low productivity. In addition, many graduates wander the streets without any reasonable prospect of gainful employment in Nigeria. Bureau of Statistics puts Unemployment Rate in Nigeria to 23.9% percent in the third quarter of 2018 from 18.80 percent in the second quarter of 2018. Unemployment Rate in Nigeria averaged 10.63 percent from 2006 until 2018, exceeding an all time high rate of 19.70 percent in the fourth quarter of 2009 and a record low of 6.4 percent in the fourth quarter of 2014. By implication, it means that if Nigeria’s population is 186million, which means about 35 million Nigerians where unemployed as at 2018 (NBS 2018).

Secondly, inadequate education often stands as a bottleneck in any economy; according to the World Bank (2007) education plays an important role in economic growth and national productivity as well as innovation and democratic values. Illiteracy as well as a lack of education is common in poor countries. This is because governments in sub-Saharan African countries lack the resources to provide adequate public schools in rural areas, such that less than 60% of children in sub-Saharan Africa have an elementary education. Most times poor people in these countries drop out of schooling to enable them to concentrate on making a minimal wage for a living. This prevents people from having the opportunity to secure decent jobs and opportunities to develop themselves to enable them to fully participate in society. In Nigeria the educational system is very poor when compared with other countries in the world.

Thirdly, Social and economic unrest from the domestic and international scene arose from the failure of the government, which lacked the ability to successfully implement political transition programmes that may have actualized stability such that distortion resulted in recession. A restricted domestic market prevented productive ventures from flourishing because of and withdrawal of investment from such country and subsequent job and economic insecurity. The economy of Nigeria advanced 2.28 percent year-on-year in the third quarter of 2019 compared to an upwardly revised 2.12 percent rise in the previous period. It was the fastest expansion since the fourth quarter of 2018, as oil output grew the most in over three years. GDP Annual Growth Rate in Nigeria averaged 3.81 percent from 1982 until 2019, reaching an all time high of 19.17 percent in the fourth quarter of 2004 and a record low of -7.81 percent in the fourth quarter of 1983 (NBS, 2018).

Fourthly, Corruption has become a cankerworm in Nigeria such that government revenue is shared among political office holders and their cronies, while the masses are left to wallow in poverty. Nigeria is the 144 least corrupt nation out of 175 countries, according to the 2018 Corruption Perceptions Index reported by Transparency International. Corruption Rank in Nigeria averaged 121.48 from 1996 until 2018, reaching an all time high of 152 in 2005 and a record low of 52 in 1997.This indicates that the well-being of the people are practically ignored by political leaders. Thus, corruption has led to increased poverty and income inequality and has contributed to increased crime rates in Nigeria.

Fifthly, Inequality: Inequality implies having large discrepancies in resource distribution, whether one is considering income, consumption or other welfare indicators or attributes (Oyekale, Adeoti&Oyekale 2007). Income disparity occurred in Nigeria as a result of the high economic growth that Nigeria experienced from 1965 to 1975.The result of the 2018 survey by NBS in Nigeria shows that persons between 15 and 64 (the economically active population), constituted 56.3 percent, while those aged 65 years and above constituted 4.2 percent. Before now, not a few economic watchers have queried the recorded Gross Domestic Product, GDP, growth rates in Nigeria, which over time are contrary to the growing rate of poverty. Income inequality has therefore increased the dimension of poverty in the country.

Finally, Laziness: Laziness is rampant among Nigerians and it has become a common disease most especially from youths who hail from wealthy households. Everyone wants to be comfortable, but they are not ready to work towards it. This often leads to greed such that people do whatever possible to keep the family wealth for themselves. In most families, everyone depends on the breadwinner, who works hard to keep the family going, and when he dies the family become poor because the dependants are lazy; they subsequently mismanage the funds that are bequeathed to them and become poor. In most Nigerian families, the death of the breadwinner means the death of the whole family’s fortunes; because everyone depended on him or her to provide for the needs of the household (Aigbokhan, 2008).

1.3 Research questions.

The research work sought to answer the following research questions.

i. What are the impacts of poverty determinants on the growth of Nigerian economy?

ii. What is the trend of poverty on the growth of Nigerian economy?

1.4 The aim and objectives of the study

The major objective of this research is to examine the impact of the determinants of poverty on the growth of Nigerian economy. Specific objectives of the research include the following.

i. To evaluate the impacts of poverty determinants on the growth of Nigerian economy.

ii. To examine the trend of poverty on the growth of Nigerian economy.

1.5 Statement of research hypothesis

The following hypothesis were determined for testing

Ho: that poverty determinants has no significant impact on the growth of Nigerian economy

H1: That poverty determinants has significant impact on the growth of Nigerian economy

1.6 The significance of the study

The significance of this research work is to determine the various determinants of poverty in the sense that it will give an insight to the government in the formulation of appropriate policies that will effectively reposition the productive sector. This will efficiently serve the developmental needs of the country and also give plausible solutions to ameliorate poverty in the drive for Nigeria to attain economic development.

The study is also expected to serve as a stepping stone to other researchers to acquire more facts about poverty and it’s implications on economic growth as evident in Nigeria gross domestic product (GDP).

1.7 Scope and limitation of the study

The study, implications of the determinants of poverty on the growth of Nigerian economy. it covered a period 20 years (1999 – 2018). The area of major concern is the determinants of poverty, its implications and effect on the growth of Nigerian economy. Due to the vitality and vast nature of the topic under investigation, one of the major limitations was how to approach the study to capture the most significant variables and that of inadequate information or materials like books, journals and periodicals to consult for knowledge development which will enhance a better result. Another hindrance was that of money which restricted the coverage of the work at hand. The last hindrance was that of time which was shared among several activities. However, a drastic step was taken to obtain data from reliable sources such as CBN statistical bulletin, NBS statistical publications etc. to overcome such limitations

1.8 Organization of the study

This research work is divided into five (5) chapters.

Chapter one contains the background to the study, statement of research problems, The research questions, aims and objectives, hypothesis testing, significance of the study, scope and limitation and organization of the study, chapter two undertakes the review of relevant literature on poverty, chapter three considers the theoretical framework and features of poverty as well as delving to criteria for measuring poverty in Nigeria, chapter four focuses on the research methodology, data analysis and interpretation of results and chapter five contains the summary of findings, conclusions and recommendations.

Thursday 30 December 2021

CORPORATE FRAUD AND PERFORMANCE OF MICROFINANCE BANKS IN NIGERIA

ABSTRACT

The study examines the impact of corporate fraud on the performance of micro finance banks in Nigeria. This is premised on the increasing fraudulent activities and practices in the banking sector which translate into the inability of microfinance banks to meet the expectations of various stakeholders. The population of the study comprised fifty staff of Nasarawa Microfinance Bank. The findings of the study revealed that corporate fraud has significant effects on microfinance bank performance in Nigeria. Consequent upon this study, it was recommended that there should be improvement in internal control systems to enable staff detect and prevent fraudulent activities, the regulatory and supervisory bodies of banks in Nigeria should improve their supervision on microfinance banks using all tools including ICT banking software at their disposal to appropriately check and curtail the incidence of fraud in the banking industry.

CHAPTER ONE

INTRODUCTION

Background to the study

Fraud is a global occurrence even though, it is not peculiar to banking industry. This is because the collapse of foremost international corporations like Enron in the United States of America, collapse of NITEL, Nigeria airways, and some distressed bank in Nigeria such as Savannah bank, Africa International Bank (AIB) were all product of fraud. Also, the recent financial mismanagement in Nigeria banking sector which made the Central Bank to inject 620 Billion naira tax payers fund and take over some commercial banks (known as troubled banks) namely Oceanic Bank Plc, Fin Bank Plc, Afri bank Plc, Bank PHB, Spring Bank and Intercontinental Bank can also be traced to fraud. The occurrence of the fraudulent practices in the most commercial bank in Nigeria have negatively affected the mindset of most shareholders and investors, and may take a long time before it can be corrected (Obafemi, 2016).

Frauds and corruption usually result in huge financial losses to banks and may affect the confidence of most investors and shareholders, infact, the frequent occurrence of frauds could, in extreme cases, could lead to the closure of some banks, which was the case of most of the closed commercial banks in Nigeria. Furthermore, fraud and corruption in today’s banks certainly constitutes one of the most serious threats to the practices and spread of bank in Nigeria. It has assumed such an alarming proportion that there is no visible sign that the tread will be reversed. In legal terms, fraud is seen as the act of depriving a person of something, which such a person would or might be entitled to, it can also be seen as an act of trickery which is intentionally practiced in order to gain illegitimate advantage. Therefore, for any action to constitute fraud there must be deceitful objective to benefit (on the part of the perpetrator) at the disadvantage of another person or group. Fraud typically requires stealing and manipulation of accounts, frequently accompanied by cover up of the theft. It also involves the translation of the stolen resources or property into own resources or property.

Cases of fraud are on the increase in the Nigerian banking sector today, despite the clamp down on fraudulent bank executives by the Central Bank of Nigeria in 2010 CBN, (2010). Till date no effective measure can be said to have been put in place to prevent fraud in its entirety anywhere in the World Wikipedia, (2017). Many Nigerian commercial banks continue to accumulate high financial deposit base without actually effectively lending in a commensurate way to investors and business organizations in the real sector. Many a times the rules for lending are very stringent making the lending process very cumbersome for private businesses genuinely in need of access to capital for further production purposes. In the last quarter of the last decade bank regulation in Nigeria became so lapse that bank officials were able to accumulate private wealth of unthinkable proportions and commercial banks often found it difficult to distinguish between its assets and those of major shareholders who incidentally became the CEO of such banks leading to a high spate of banking irregularities particularly at the management levels in banks Paul, Ikpefan & Deborah, (2014). The banking sector has become one of the most critical sectors and commanding heights of the economy with wide implications on the level and direction of economic growth and transformation and on such sensitive issues as the rate of unemployment and inflation which directly affect the lives of our people CBN, (2010).

Today, the very integrity and survivability of these laudable functions of Nigerian banks have been called into question in view of incessant frauds and accounting scandals. The incessant frauds in the banking industry are getting to a level at which many stakeholders in the industry are losing their trust and confidence in the industry Oseni, (2006). Owing to the fact that fraud affects the performance and reputations of banking institutions, to minimize or control the alarming rate of fraud in the banking industry. It is against this background, that this study seeks to examine the corporate fraud and performance of Microfinance Banks in Nigeria.

Statement of the Problem

Banks generally have been experiencing fraud since its evolution. This affects the performance and the profitability of banks and may possibly lead to distress. The inability to identify the immediate and remote causes of continuous cases of bank frauds in Micro Finance banks in Nigeria is one of the problems brought to bare. Fraud is a major challenge to the entire banking industry; no bank is immune to it and in all facets of life (Olorunsegun, 2010). The banking public expects accountability, fairness, transparency in their day operation for effective intermediation. Though there were known cases of fraud in the sector, one major question still remain unanswered which is what is the nature and different ways through which fraud can be perpetuated in banks. It is asserted by Adeyemo (2012) that fraud in the bank is possible with corroboration of an insider. Banks are expected to ensure that they carry out their responsibilities with sincerity of purpose which is devoid of fraudulent practices; this is relevant if the banking sector is to gain public trust and goodwill. In Nigeria, in spite of the banking regulation and bank examination by the Central Bank of Nigeria (CBN), the supervisory role of the Nigeria Deposit Insurance Corporation (NDIC), and The Chartered Institute of Bankers of Nigeria (CIBN), there is still a growing concern about fraud and other unethical practices in the banking industry. Evidence from the NDIC Report (2008) reveals that the report of the examinations and special investigations showed that some banks were still bedeviled with problems of fraud, weak board and management oversight; inaccurate financial reporting; poor book-keeping practices; nonperforming insider-related credits; declining asset quality and attendant large provisioning requirements; inadequate debt recovery; non-compliance with banking laws, rules and regulations; and significant exposure to the capital market through share and margin loans. Okpara (2009) found that one of the factors that impacted the most on the performance of the banking system in Nigeria was fraudulent practices. This study thus, examine corporate fraud and performance of Microfinance Banks in Nigeria

1.3 RESEARCH OBJECTIVES

The general objective of this study is to evaluate corporate fraud and performance of Microfinance Banks in Nigeria. However, it is set to achieve the following specific objectives.

To determine the extent to which fraud has affected the profitability of micro finance banks.
To ascertain the influence of fraud on the capital base of micro finance banks.
To determine the extent to which fraud has affected the liquidity position of micro finance banks.

RESEARCH QUESTIONS

To guide the conduct of this research, the following questions are raised:

To what extent does fraud affect the profitability of micro finance banks?
What are the impacts of corporate fraud on the capital base of micro finance banks?
To what extent does fraud affect the liquidity position of micro finance banks?

1.5 Research Hypotheses

A research hypothesis is a generalized and verifiable statement about a state of phenomena which may be true or false. Therefore, these research null hypotheses will be empirically tested in this research work.

H0: Corporate fraud has no significant impact on the performance of Microfinance Banks in Nigeria.

H1: Corporate fraud has significant impact on the performance of Microfinance Banks in Nigeria.

Scope and Limitations of the study

Scope

The scope of this study will be limited to examining the impact corporate fraud on the performance of Microfinance banks in Nigeria. The study will examine the causes of fraud and its impact on the performance of Microfinance Banks in Nigeria.

Limitations

The researcher encountered problems at the time of carrying out this research. The following limitations are inherent in the study:

Time: Since there is no time set aside for writing this project, researcher has to combine the writing of the project with her normal academic and other commitment in the academic environment.
Finance: Finance hinder the researcher from expanding the scope of this study beyond Nasarawa Microfinance Bank as this will involve more money which is not at the disposal of the researcher.
Lack of adequate materials: Arising from inadequate reading materials and uncooperative attitude of a few respondents.

Significance of the Study

The findings of this study would be beneficial to the management of commercial banks, bank customers, investors and the Banking Industry in Nigeria. The result of this study would also be of immense benefit to researchers who may be interested in carrying out further research on similar topics.

Banks / Stakeholders: The study will be of invaluable benefits and useful to all categories of bank managers, financial information users such as existing and potential shareholders, they are the direct beneficiary of companies and they will get bonuses if the companies operate successfully. The use of fraud management will reduce the risk of fraud and increase the bank’s profit which will reflect on the dividends of the shareholders. Also, creditors and fund providers will also benefit from the presence of fraud prevention and control system in the Nigeria banking system as the will guaranteed of the safety of the funds.

Researchers: Besides, researchers and students in the field of accounting, banking and finance who want to know more about frauds, its causes and possible ways of preventing it. They will also find the study beneficial as it will add to the existing stock of knowledge for students and serve as a reference point for subsequent researchers.

Government/Policy Makers: The findings of this study will be of great importance to the policy makers especially the Central bank of Nigeria in their efforts to deter, prevent and at worst detect fraud timely, as the threat of fraud in Nigeria can be contained by taking the right steps.

Definition of Key Terms

Fraud: Fraud is an act of or course of deception deliberately practiced to gain unlawful or unfair advantage deception directed to the detriment of another.

Financial Services Sectors: This involves all financial institutions such as banks, insurance company etc.

Bank: Is an establishment saddled with keeping money and valuable safely, the money being paid out of the customer order?

Fraud management: This involves the use of various management techniques to control and prevent fraud.

Financial fraud: This involves the financial account transaction such as bank account including a consumer clone or credit card account.

Fraud prevention: This involves taking steps that best protect against identity theft and other external treats targeting company.Fraud ring: A group of individuals who scheme together to execute fraudulently activities.

Wednesday 29 December 2021

STRATEGIES FOR IMPROVING REVENUE GENERATION FOR DEVELOPMENT IN NIGERIA LOCAL GOVERNMENT

A Case Study Of Nkanu East Local Government Area Of Enugu State

ABSTRACT

The study seeks to examine the strategies for improving revenue generation for development in Nigeria local government. The primary objective of this study is to ascertain the strategies of increasing and improving revenue generation for development in the Nkanu East local government area of Enugu state. The theories upon which the study is anchored are the Structural Functionalism Theory, the Efficiency Theory and the Functional Theory. The population of this study comprised of the staff of Nkanu East local government, which is a total of one hundred and nine (109) persons. A sample size of eighty six (86) was drawn using the Taro-Yamane (1967) statistical formula. Data for the study was collected using self-administered questionnaires. The method of data analysis utilized in the study was the frequency tables and percentages. Findings from the analysis revealed that the strategies adopted in generating revenue in Nkanu East are not sufficient; the primary challenges facing the efficiency of revenue generation for development in Nkanu East Local Government Area of Enugu state include corrupt practices among revenue collectors, and lack of education and enlightenment by the local government to the citizens on the need for them to pay their annual rates and fees to the local government; and the level of revenue generation has made no significant impact on the development of Nkanu East Local Government Area of Enugu state. It is therefore the recommendations of this study that modern strategies should be adopted to enhance the internal revenue generation in the local government; that adequate measures should be adopted to curb the tide of financial corruption among revenue collectors in the local government; and, that the revenue generated should be made to impact positively on the development stride of the local government area, among others.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Local government is recognized by the 1999 constitution of the Federal Republic of Nigeria as the third tier of government within the tripartite federal structure of governance in Nigeria, with the state and federal government as the super ordinate government. The government in Nigeria which exists at tripartite arrangement (federal, state and local government) plays complimentary roles to each other to meet the needs of the people which include infrastructural facilities (Okpata 2004).

Furthermore, local government is seen as a public sector organization, the third tier government with assigned functions and responsibilities, administrative structure and financial management both for maintaining itself and rendering it’s statutory assigned functions to it’s citizens (Uguru 2011). Local government authorities as a third tier of government in Nigeria are very important in the execution of both central and component government policies and programmes. It is the nearest government that deals with the problems of the masses of the country, especially the grassroots.

One area which has remained neglected over time by the local governments in Nigeria is revenue generation. The usual practice in this country (Nigeria) is that political parties and individual candidates often make promises to the electorate during electioneering campaigns without being explicit on how they intend to finance such programmes. In line with this practice, candidates seeking political offices often promise vote-catching programmes with scarcely any attention to the question of funding (Fajobi, 2010). The result is that ordinary citizens may witness very little government activities and the impact of the government will be felt in almost all sphere. This may lead to disappointment. It is quite obvious that very little thought, if any, is given to how funds were to be generated to implement the various programmes promised to the electorates.

Local governments across the country are particularly guilty in this respect. Chairmen complain of their inability to meet their wage bills with the current level of the local government finances. Chief executive often tries without success to slash the wages of their workers while others may resort to staff retrenchment in order to save money to implement programmes.

Fajobi (2010) argued that the acute dearth of fund currently facing the local government could be squarely attributed to lack of creativity on the part of the local government in seeking alternative sources to complement the allocation from the Federation Account. Most local governments are suffering from hang-over of over dependence on the centre for assistance, a norm during the military governance. They are yet to break away from the practice of relying almost entirely on extension from the Federal Government. The federal government, in turn also depends entirely on revenue from oil and its apportionment of the lion’s share of the Federation Account to itself. Local government will continue to be one of the prime institutional movers of development in Nigeria and their importance and impact on the daily life of citizens cannot be over-emphasized. People are intimately affected by the activities of local government on a day to-day basis and Nigeria, in particular, local governments, have historically provided services of importance to citizens, literally from cradle to grave. The standard of living of Nigerians either in rural or urban areas are inevitably affected by local government activities through the provision or non provision of basic services such as water supply, roads, health and educational services etc. Local governments also remain the focal point of promotion of development and cultural revival through community development projects and mobilization of human and material resources for developments. It is on the basis on the foregoing that this study will be focused on the strategies of increasing and improving revenue generation for development in the Nkanu East local government area of Enugu state.

1.2 Statement of the Problem

Obviously, the internally generated revenue in Nigeria Local Government is far below expectation. It has become imperative to diversify areas of revenue generation especially with the dwindling federation allocation which has been the major sources of revenue to the local government. Since inadequate revenue remains one of the devastating challenges hindering effective local government administration in the country, it then necessitated the general outcry by the administrators (chairmen) of local government for a change in Revenue Allocation Formula or strategies for improving revenue generation in the development of their respective local government areas.

Again, the problem of seeing local governments as a mere appendage to the state and federal government financially has beclouded the patriotic and entrepreneurship psyches of local government administrators, hence most local government tilted financially to the federal government for monthly statutory allocation from the federation account. This problem of economic and financial overdependence of the local government in Nigeria is devastating, uncalled for and against the motives for the creation of local government as the third tier. Furthermore, the inability of the local administrators to use in-sourcing techniques for funds to finance the council through internally generated revenue is a thorn in the flesh of meeting up their constitutional responsibilities such as the provision and maintenance of social services (education and health care) payment of the worker’s salary and so have given rise to whether to scrap or restructure local government systems in Nigeria. It is in line with the above problematic scenario that this research is motivated to carry out an empirical analysis of the strategies for improving revenue generation for development in Nkanu East Local Government Area of Enugu State.

1.3 Objectives of the Study

The broad objective of this study is to ascertain strategies for improving revenue generation for development Nigeria Local government with particular interest in Nkanu East Local Government Area of Enugu state. Hence; the following specific objectives will be actualized:

To identify strategies for improving revenue generation for development in Nkanu East L.G.A of Enugu East.
To ascertain the various challenges surrounding the efficiency of revenue generation for development in Nkanu East Local Government Area of Enugu state.
To evaluate the impact of the level of revenue generation on the development of Nkanu East Local Government Area of Enugu state.

1.4 Research Questions

In line with the objectives of the study, the following research questions will pilot the study:

What strategies can be identified for improving revenue generation for development in Nkanu East L.G.A of Enugu East?
What are the existing challenges surrounding the efficiency of revenue generation for development in Nkanu East Local Government Area of Enugu state?
What impact does the level of revenue generation in the Local government have on the development of Nkanu East Local Government Area of Enugu state?

1.5 Significance of the Study

The primary importance of this study is that it will empirically identify the pragmatic strategies for improving revenue generation for development in Nkanu East L.G.A of Enugu East. This will in essence be of great significance to local government administrators, students of public administration and other related departments, other researchers, the state and federal government as strategy can be replicated.

1.6 Scope of the Study

The focus of this study is to ascertain strategies for improving revenue generation for development in Nkanu East Local Government Area of Enugu state.

1.7 Limitations of the Study

This research admits its short-comings or limitations. It is a mark of intellectual honesty to admit that limitations did exist in a research undertaking and to give an account of the way they have been manifested and taken care of. This will enable future investigators to have an idea of what militating factors to look out for and possibly to take care of them. The basic limitations of the study are: financial inadequacies, time factor, the uncooperative attitude of some respondents and scanty resource materials on the subject under investigation.

Finance: Limitation of financial resources, coupled with other pressing personal demands militated against the researcher’s efforts to cover a wider geographical area. The researcher had to spend so much to download materials from the internet. This was however ameliorated through parental assistance and the adoption of cost saving techniques during the course of the study.

Time Factor: Time lag was also a major constraint because the research was carried out within a given time-frame. This work was carried out in an environment where the researcher had to battle with lectures, assignments, class work and sourcing for materials for the study. However, the researcher made tremendous efforts to cover adequate issues in order to give value to the findings of the study.

Uncooperative Attitude of Some Respondents: In the course of carrying out this study, some respondents were reluctant to accept and fill their questionnaire. However, the researcher discovered that their main purpose for being reluctant was because of fear of private information disclosure. The researcher however convinced them that every information will be treated with the highest level of privacy.

Scanty Resources Materials: One of the major hindrances of the study was scanty materials on the strategies of increasing and improving revenue generation for development. Very few journals, government and newspapers publications exist. Hence, the researcher resorted to the available publications and content analysis in order to beef up the content of the work.

1.8 Operational Definition of Terms

Local Government: This is defined as Government at the local level exercised through representative council established by law to exercise specific powers within defined areas.

Revenue: In the context of this study, revenue is defined as the fund required by the government to finance its activities.

Strategy: In this study, this is defined as a systematic proposed way to achieve a particular aim or objective.

Development: This is defined as the multidimensional expansion in the economic, political and behavioral attitudes of a particular community, state or country.

Internally Generated Revenue: This refers to the revenue or money collected by the local government from its internal sources (within the Local Government Area). The internal sources of revenue comprise many major and miscellaneous items aggregated to provide the required fund for financing the enormous functions ascribed to local government as third tier of government.

EFFECT OF DIVERSIFICATION ON THE PERFORMANCE OF SELECTED MEDIUM SCALE ENTERPRISES IN MARARABA

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In the context of turbulent business setting, organizations have to learn to acclimatize themselves to remain very competitive over time (Auster et al., 2011). Consequently, intentional and organized learning has to be there to an ongoing systematic shift between the business setting and the organization‟s strategies that result in efficiency and effectiveness improvement so as to increase their performance and achieve long term growth (Grant, 2008). He further argues that for organizations to remain successful businesswise, understanding the challenges, opportunities and threats provided by the external setting is needful, for the organization to take advantage of the opportunities and avoid threats by applying appropriate response strategies as well as developing the diversification strategies that will enhance their performance, survival and competitiveness.

Diversification has been a key strategy employed by organizations in an attempt to improve their attractiveness and performance. In the banking industry, diversification boosts the performance as it helps in initiating actions which leverage in the existing internal as well as external resources which in turn support other venture hence complement the overall performance of the organization. According to Thomson et al. (2012), diversification helps organization build the urgency and the need of improving shareholders value by using existing resources. Ansoff (1965) argued that diversification is manifested through product development, market development and market penetration representing product market structure changes.

The medium scale enterprises has been cited as one of the sector of the economy in which cut throat competition thrives. Just like other sector of the economy, medium scale enterprises have in essence been provoked to better their performance in order to remain significant in the market. Diversification as espoused by Miller (2009) in the Transaction Cost Economics theory has been widely used by firms world over to ensure there is vertical integration and competitors are blocked thus relevancy in the market place and as well enhancing their absolute performance.

According to Rhonda (2010), there are different types of business strategies that a firm can employ in planning which are the growth strategy, product differentiation, entry, exit, marketing and acquisition strategies among others. Commercial banks also apply different strategies depending on their objectives and level of development; these strategies play critical roles in banks‟ achievement of their mission and objectives. This may include capital formation, new enterprises investments, trade and industry promotion, agriculture sector development among others (Dess, 2005).

According to Murimiri, (2009), performance is the extent to which an investment is profitable. Basically, performance is the criteria through which an organization determines its capability to survive in the corporate world. McCann (2004) argued that organization performance is related to the efficiency and effectiveness of the firm while Hofer (1983) defined performance as the background concept related with the phenomenon being studied. Maxine, (2012) argued that banks are the intermediaries in the transactions between money demanders and suppliers at a given consideration.

According to March and Sutton (1997), the three sources of variations in firm performance include analytical models that are usually used, information concerning the apparent determinants of variations in performance and finally the theoretical ideas. Financial measures of organizational performance include profit, profit ratios (ROI, EPS, NPR), market share and revenue growth (Pandey, 1999). There are three economic objectives which describes an organization‟s performance as given by strategic direction (Pearce & Robinson, 2007). These include existence in the market, progress and prosperity.

1.2 Problem Statement

There has been increased competition among several medium scale enterprises in quest for survival over the last few years coming from improved transformations among the key players and new participants into the market (Pearce & Robinson, 2007). The sector has witnessed entrance of many business enterprises, small and medium scale enterprises have provide several services to the growth of the economy in both rural and urban areas (Kamau, 2009). Corporate strategy of diversification either in product line, subsidiary, income or regional line is crucial for the firms to compete favourably and survive on the long run. Most empirical research found a positive relationship between diversification and corporate performance. But due to self-interest, inexperience, incompetence and opportunistic behavour of most managers, most diversification strategy leads to negative or low performance of companies in Nigeria (Ade, 2010). Most of studies on this area were conducted in developed countries such like; United States of America (USA) Germany, UK, and China. Studies that have explored the subject of diversification and financial performance in Nigeria are seen to be very limited, and have not cover that small and medium scale enterprises, thus this study seek to examine the effect of diversification on the performance of selected medium scale enterprises in Mararaba.

1.3 Objective of the Study

The general objectives of the study is to examine the effect of diversification on the performance of selected medium scale enterprises in Mararaba.

The specific objectives of the study is to:

To ascertain the effects of product diversification on performance of selected medium scale enterprises in Mararaba
To determine the effect of business subsidiary diversification on performance of selected medium scale enterprises
To examine the effect of diversification on the overall performance of selected medium scale enterprises in the study area.

1.4 Research Questions

What is the effects of product diversification on performance of selected medium scale enterprises in Mararaba?
What is the effect of business subsidiary diversification on performance of selected medium scale enterprises?
What is the effect of diversification on the overall performance of selected medium scale enterprises in the study area?

1.5 Statement Of Hypothesis

H0: Diversification has no significant effect on the overall performance of selected medium scale enterprises in Mararaba.

H1: Diversification has significant effect on the overall performance of selected medium scale enterprises in Mararaba.

1.5 Significance of the Study

Medium Scale enterprises will understand and appreciate the diversification strategies. Appropriate decisions will be made by owners and managers of Medium Scale enterprises following the studied strategies that have been executed by the Medium Scale enterprises thus successfully expanding their operations. Challenges experienced in the adoption and implementations of diversification strategies will also be made aware to the managers thus helping them in the making of appropriate adjustments countering these challenges and in the achievement of optimal performance.

The study will provide insights to regulators and policy makers on the diversification strategies enhancing the sector’s growth and functioning, which will help in regulation and policy formulation. Development new policies and reviewing of existing policies will be possible thus achievement of synergy in the banking sector.

The study will also be of paramount help to the private sectors in understanding and appreciating the potential of development small and medium scale enterprises. This is crucial because any cost inferences which will need to be catered for by customers in exchange for better service delivery, will be accepted without bargain.

Scope of the Study

The scope of this research is limited to the effects of diversification on the performance of selected medium scale enterprises in Mararaba. The study is futher limited to Mr. Biggs Restaurants. The collection of data and its analysis shall be based on information gotten from Mr. Biggs Abuja alone as this topic has wide scope of to be covered.

1.8 Limitation of the Study

Certain Limitations were encountered in the course of this study. Key among these includes:

Unavailability of Data: One of the greatest challenges the researcher encountered in this study relates to access to and collection of data due to extreme data gaps and scarcity. This compelled the researcher to limit the study to Small and Medium Scale Business thus excluding Cottage and Micro Enterprises whose challenges though comparable, could be fundamentally different from those of SMEs.
Time and Funds: Another limitation of this study relates to time, funds and logistics constraints, which limited the intensity of the spread or area of coverage of the study. Even though SMEs are spread throughout the length and breadth of Nigeria with negligible concentrations in some States and less urban areas, this study focused largely on small and medium scale business
Resistance of Respondents: The researcher was also limited by the reluctance of some respondents to complete the questionnaires promptly and those who even failed to complete them at all. This thus limited the number of respondents involved in the study despite the researcher’s efforts and approaches to them explaining the potential benefits of the study to them.

1.9 Definition of Relevant Terms

Diversification: Diversification refers to a firm’s strategy of entering and competing in new product markets. Diversification allows firms to maximize value by enhancing the scope of markets and industries in which they compete and supply product offerings to newer customers (Purkayastha, Manolova, & Edelman, 2012).
Small Scale business: – Small scale business is any processing, serving or manufacturing industry with an investment in machinery and equipment below N500,000 (Waboi, 2012).
Management: – According to Akpala (2000) Management is the process of combing and utilizing an organization input (men, materials and money) by planning, organizing, directing and controlling for the purpose of producing output (goods and services).
Entrepreneur: – According to Hagen, an entrepreneur is an individual who conceives the idea of business, design the organization of the firm, accumulates capital, recruits labour, establishes relations with supplies, customers and the government and converts the conception into a functioning organization business.
Opportunity: An opportunity is a potential gainful situation that must be recognized and exploited; an opportunity has the qualities of being attractive, durable and timely. It is anchored in product or services which creates or adds value for its buyers or end users.
Development: This entails growth of the business, increases in goods and services and t he improvement of lives of the citizen.

Tuesday 28 December 2021

THE ROLE OF LOCAL GOVERNMENT IN THE DEVELOPMENT OF DEMOCRACY IN FCT, ABUJA

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Local government is the third level of government deliberately created to bring government to the grass-roots population and gives the grass-roots population a sense of involvement in the political processes that control their daily lives. Democracy denotes a political system in which the eligible people participate actively not only in determining who governs them, but also in shaping the policy output of their government. The composition of a government is usually determined in free and fair elections supervised by an impartial body.

The existence of local government has always been defended on the basis that it is a crucial aspect of the process of democratization and intensification of mass participation in the decision-making process. No political system is considered complete and democratic if it does not have a system of local government. Local government serves a two-fold purpose. The first purpose is the administrative purpose of supplying goods and services; the other purpose is to represent and involve citizens in determining specific local public needs and how these local needs can be met.

Local representative government is a process that spans and connects representation and administration at local levels within local government structures. In order to understand the function and structure of local government, it is important to define local government and understand the meaning of local government democracy and values.

With these aspects of local government in mind, attention will be directed towards the typical structure of local government as the administrative structure of local government forms the basic framework where in local public policy is determined and implemented. Therefore attention will be directed to the composition of councils and their activities.

Democracy is a form of government in which all eligible are meant to participate equally either directly or through elected representatives, indirectly in the proposal development and establishment of the laws by which their society is run. In most modern democracies, the whole body of eligible citizens remain the sovereign power but political power is exercised indirectly through elected representative.

The local government system has been a major feature of Nigeria government and politics since colonial rule over the years, there have been changes in name structure and composition, while the system was operated differently all over the country (Agagu, 2004). The effective implementation of democratic values requires councillors and officials with integrity, which in turn demands fairness, reasonableness and honesty. Social equity may also demand that local government development should take place in such a manner that the rule of law will prevail (Cloete, 1993: 24 – 25). In view of the above therefore, this study examine the role of local government in the development of Democracy in FCT Abuja.

1.2 STATEMENT OF THE PROBLEM

The effectiveness of democracy and local government are meant to bring about grassroots development, but are still hampered by some constraints which do not allow the manifestation of the purpose of their establishment. This includes poor representation, election malpractices, corruption and mismanagement of funds, Unskilled workers, shortage of personnel among others. This study is focused on the constraints facing the proper democratic functioning of the establishment of local government to attract the lives of people at the grass root level. Proper representation, equitable distribution of wealth among citizens, social and economic development etc. which form part of the hall mark of adopting democracy are not realized. Also, grass root development, provision of social service in the local government are being affected.

1.3 OBJECTIVES OF THE STUDY

The general objective of this study is examine the role of local government in the development of democracy in FCT Abuja; particularly Gwagwalada Area Council.

The specific objectives of the study include:

To look at the level of development in Gwagwalada Area Council
To look into the level at which democracy has brought development in Gwagwalada Area Council
To look into the militating factors against the development of Gwagwalada Area Council
To offer a pragmatic solution to the problems of development in Gwagwalada Area Council.

1.4 RESEARCH QUESTIONS

As the means of carrying out the research, the role of local government in the development of democracy in FCT, Abuja, Gwagwalada Area Council.

These research questions will serve as guide to the researcher in the course of this project work.

Does democracy as the system of government promote political participation at the grassroot level?
What are the benefit in participating in political activities at the grassroot level?
Does democracy brings about political equality among the poor masses?
What are the planning and arrangement to involve in participating in the development of democracy at the grassroot level?
Does local government has any role of democracy development at the grass root in FCT Abuja?

1.5 SIGNIFICANCE OF THE STUDY

The study will help a lot of people to understand the importance of democracy and local government as a role of democracy development at the grassroot level. It will also form part of the data bank in this area for future research work and when ever is successfully completed.

1.6 Scope Of The Study

The research work is particularly concerned with the role of local government in the development of democracy in Nigeria. It covers the entire participation of Gwagwalada Area Council in democracy development at the grass root. Equally, most of the reference were selected from the year (1999 to 2020). This is to enable the researchers have up to date frame work of the topic treated.

The research work has however faced the problems of inadequate research data in these oral interview (respondents were afraid of the likely implication of their minds as much as they should.

Also, apart from the limited time of the research and the large scope of the research which covers the entire Gwagwalada Area Council, the amount voted was exhausted and the researcher had to supplement to enhance the research work to be complete.

1.6.1 ORGANIZATION OF THE STUDY

The organization of the research work is based on the table of contents.

Chapter one deals with introduction/background of the study, statement of the problems, objectives of the study, significance of the study, scope and limitations of the study, research questions, organization of the work and definition of terms.

Chapter two is on literature review, introduction, history, growth and development of local government in Nigeria, concept of local government, concept of grass root democracy, role of local government in democracy development, objectives of local government in democracy development and democratic development in Gwagwalada Area Council.

Chapter three deals with the population of the study, sample size, sources of data collection, method of data collection and method of data analysis. Chapter four deals with data presentation and analysis and finally, Chapter five deals with summary, conclusion and recommendations.

1.7 DEFINITION OF TERMS

In order to fully grasp the subject matters of this project, certain key terms which would be regularly used need to be defined.

Democracy: Democracy is ‘’government by leaders whose authority is based on a limited mandate from a universal electorate that selects among genuine alternatives and has some rights to political participation and opposition. (Danliger 1998, 159).

Local Government: Local government is a form of public administration which in a majority of contexts, exist as the lowest tier of administration within a given state. The term is used to contrast with offices at state leve, which are referred to as the central government, national government, or (where appropriate) federal government and also to super national government which deals with governing institutions between states. Local government generally act within powers delegated to them by legislation or directives of the higher level of government.

In federal, state, local government generally comprises the third tier of government, were as in unitary states, local government usually occupies the second or third tier of the government, often with greater powers than higher level administrative divisions.

DEVELOPMENT:

In the economic study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives.

The term has been used frequently in the 20th and 21st centuries, but the concept has existed in the West for far longer. “Modernization“, “Westernization“, and especially “industrialization” are other terms often used while discussing economic development.

Whereas economic development is a policy intervention aiming to improve the well-being of people, economic growth is a phenomenon of market productivity and increases in GDP; economist Amartya Sen describes economic growth as but “one aspect of the process of economic development”. Economists primarily focus on the growth aspect and the economy at large, whereas researchers of community economic development concern themselves with socioeconomic development as well.

GRASSROOT

Grass is defined as people at a local or low level rather than at the center or upper levels of an organization or movement. A grassroots movement is one that uses the people in a given district, region or community as the basis for a political or economic movement. Grassroots movements and organizations use collective action from the local level to effect change at the local, regional, national or international level.

THE IMPACT OF REVENUE GENERATION IN LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA

(A CASE STUDY OF TOTO LOCAL GOVERNMENT OF NASARAWA STATE)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Fajobi (2010) argued that the acute dearth of fund currently facing the local government could be squarely attributed to lack of creativity on the part of the local government in seeking alternative sources to complement the allocation from the Federation Account. Most local governments are suffering from hang-over of overdependence on the centre for assistance, a norm during the military governance. They are yet to break away from the practice of relying almost entirely on extension from the Federal Government. The federal government, in turn also depends entirely on revenue from oil and its apportionment of the lion’s share of the Federation Account to itself. Local government will continue to be one of the prime institutional movers of development in Nigeria and their importance and impact on the daily life of citizens cannot be over-emphasized. People are intimately affected by the activities of local government on a day to-day basis and Nigeria, in particular, local governments, have historically provided services of importance to citizens, literally from cradle to grave. The standard of living of Nigerians either in rural or urban areas are inevitably affected by local government activities through the provision or non provision of basic services such as water supply, roads, health and educational services etc. Local governments also remain the focal point of promotion of development and cultural revival through community development projects and mobilization of human and material resources for developments. It is on the basis on the foregoing that this study will be focused on the impact of revenue generation in local government administration in Nigeria: a case study of Toto Local Government of Nasarawa State.

1.2 Statement of the Problem

Again, the problem of seeing local governments as a mere appendage to the state and federal government financially has beclouded the patriotic and entrepreneurship psyches of local government administrators, hence most local government tilted financially to the federal government for monthly statutory allocation from the federation account. This problem of economic and financial overdependence of the local government in Nigeria is devastating, uncalled for and against the motives for the creation of local government as the third tier. Furthermore, the inability of the local administrators to use in-sourcing techniques for funds to finance the council through internally generated revenue is a thorn in the flesh of meeting up their constitutional responsibilities such as the provision and maintenance of social services (education and health care) payment of the worker’s salary and so have given rise to whether to scrap or restructure local government systems in Nigeria. It is in line with the above problematic scenario that this research is motivated to carry out an empirical analysis on the impact of revenue generation in local government administration in Nigeria with particular reference to Toto local government area of Nasarawa state.

1.3 Objectives of the Study

The broad objective of this study is to examine the impact of revenue generation in local government administration in Nigeria: A case study of Toto Local Government Area of Nasarawa State. Hence; the following specific objectives will be actualized:

To identify the source of revenue for local government administration in Nigeria.
To ascertain the various challenges surrounding revenue generation for development in Toto Local Government of Nasarawa State.
To evaluate the impact of revenue generation on the development of Toto Local Government Area of Nasarawa State.

1.4 Research Questions

In line with the objectives of the study, the following research questions will pilot the study:

What are the various source of revenue for local government administration in Nigeria?
What are the challenges of revenue generation for development in Toto Local Government of Nasarawa State?
What are the impact of revenue generation on the development of Toto Local Government Area of Nasarawa State.

1.5 Significance of the Study

The primary importance of this study is that it examine the impact of revenue generation in local government administration in Nigeria with particular references to Toto Local government of Nasarawa State. This will in essence be of great significance to local government administrators, students of public administration and other related departments, other researchers, the state and federal government as strategy can be replicated.

1.6 Scope of the Study

The focus of this study is to examine the impact of revenue generation in Local Government Administration in Nigeria with particular reference to Toto Local Government Area of Nasarawa State.

1.7 Limitations of the Study

1.8 Operational Definition of Terms

Local Government: This is defined as Government at the local level exercised through representative council established by law to exercise specific powers within defined areas.

Revenue: In the context of this study, revenue is defined as the fund required by the government to finance its activities.

Strategy: In this study, this is defined as a systematic proposed way to achieve a particular aim or objective.

Development: This is defined as the multidimensional expansion in the economic, political and behavioral attitudes of a particular community, state or country.

IMPACT OF CONFLICT MANAGEMENT ON EMPLOYEES PRODUCTIVITY IN NASARAWA LOCAL GOVERNMENT AREA COUNCIL

ABSTRACT

The study examines the effect of conflict management on employees productivity in Nasarawa local government area council. The specific objectives are to examine the effect of collaboration strategy on employees’ productivity, ascertain the effect of compromise strategy on employees’ productivity and determine the effect of avoidance strategy on employees’ productivity in Nasarawa local government area council. The study employed survey design and make use of simple random sampling technique in order to get adequate response from the respondents. The data obtained were analyzed using tables and percentages while the hypotheses were tested using Chi-Square. The findings of the study shows that conflict management have significant impact on employee’s productivity in an organization if properly managed. Finally the study recommends that the organization should create an enabling environment where employees can openly communicate and discuss issues affecting them.

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

In every aspect of human society and endeavor, conflict is seen as a natural phenomenon that is, inevitable as long as human relationships are involved. It is a process that begins when one party perceives that another party has negatively affected or is about to negatively affect something that the first party cares about (Robbins, Judge & Vohra, 2015). At home and at work, conflict is very common and in some cases unavoidable (Mughal & Khan, 2016). As a result of people interacting with each other, friction, disagreements or arguments may arise resulting from actual or perceived differences or incompatibilities, thereby escalating to conflict. Thus, conflicts in organisations can take many formssuch as interpersonal conflict, task conflict and process conflict which give rise to diverse approaches to conflict management (Budd & Colvin, 2017).

Nigerian Government over the years however has set up various techniques that will guide organisations in the management of conflicts. Some of these management techniques are available in the provision of Labour/Employment Act, 1971; Workmen’s Compensation Act, 2010, Trade Dispute Amendment Decree, 1988, No 39 and Trade Dispute Act 18, 2004 which provided five steps for legal management of conflict in organisations in the country (Akinwale, 2011).

Nasarawa Local government area council is often faced with the issue of employees’ welfare, non-payment or percentage payment of salary and other issue of interest to the employees. Employee welfare is an important source of motivation to employees and the lack of it has led to employees having grievances against management which has most times resulted into conflict between both parties and the resulting effect has affected not only the employees productivity but the organization at large, thus managing the organisational conflict became necessary so as to improve its performance.

Conflict management involves doing things to limit the negative aspects of conflict and to increase the positive aspects of conflict with the aim of enhancing learning and group outcomes, including effectiveness or performance in organisational settings (Rahim, 2017). Robbins, Judge, and Vohra (2018) identified five major strategies for managing conflict in organisations based on assertiveness and cooperativeness which include: collaboration, compromise, accommodation, competition/domination and avoidance.

Employees productivity is seen as the result of an activity which has been carried out by an employee in relation to authority and responsibility in achieving the goal legally, not against the law, and conforming to the morale and ethics of the organisation (Almajali, Alamro & Al-Soub, 2012). Employee productivity or organisational performance can either be measured financially (earnings per share, return on equity, return on asset) or non-financially (market share, customer satisfaction, employee morale). The appropriate measure selected to assess organisational performance (financial or non-financial) is considered to depend on the type of organisation to be evaluated, and the objectives to be achieved through that evaluation. It is against this background that this study seek to examine the impact of conflict management on employee productivity in Nasarawa Local Government Area Council.

1.2 Statement of the Problem

Managers spend approximately twenty percent of their time dealing with conflict situations due to the growing complexity of organisations, use of teams and group decision making, and globalization (Mullins, 2015). This proved the fact that conflict cannot be totally eliminated within an organisation because wherever you find human beings interacting at whatever levels, there is bound to be conflict. What is however important is the way conflicts are managed to forestall future occurrence. The existence of conflict is an issue of concern in Nasarawa Local Government Area Council, the organisation is confronted with the issue of non payment of salary as at when due, promotions and allowances. The lingering issue results into conflict between management and employees of the organisation which manifested in form of employees nursing grievances against management, change of attitude or behaviuor, decrease in effort towards work, physical confrontation between both parties and stoppage of production activities as employees refuse to work. This affected the effectiveness and performance of the individual employees and the organisation as a whole. Attempt by management to resolve the conflict has only led to conflict suppression. This is because management made use of domination strategy which is of benefit to them at the expense of the employees. Several studies have been carried out on conflict management; however, most of these studies are qualitative in nature (Fatile & Adejuwon, 2011; Garcia, 2013; Kazimoto, 2013; Nwosu & Makinde, 2014; Ebhote & Monday, 2015). They cannot be generalised in all aspects of organisations, because conflict management has to do with human intentions. While some empirical studies in this area were carried out using some or all the major conflict management strategies on other dependent variables such as job stress, organisational effectiveness and turnover intention (El Dahshan & Keshk, 2014; Kanani & Farahani, 2014; Lazarus, 2014; Sima, Gbolamabbas, & Saeed, 2012); others were on organisational performance (Ongori, 2009;Hotepo, Asokere, Abdulazeez, &Ajemunigbohun, 2010; Obasan, 2011; Mughal & Khan, 2013), none were able to examined the impact of conflict management on employees productivity. Therefore, this study seeks to bridge the gap in literature by examining the impact of conflict management on employees productivity in Nasarawa local government area of Nasarawa state.

1.3 Objectives of the Study.

The main objective of this study is to examine the effect of conflict management on employees productivity in Nasarawa local government area council. The specific objectives are to:

Examine the effect of collaboration strategy on employees’ productivity in Nasarawa local government area council.
Ascertain the effect of compromise strategy on employees’ productivity in Nasarawa local government area council.
Determine the effect of avoidance strategy on employees’ productivity in Nasarawa local government area council.

1.4 Research Questions

The following research questions are addressed in this study:

To what extent does collaboration strategy affect employees’ productivity in Nasarawa local government area council?
To what extent does compromise strategy affect employee’s productivity in Nasarawa Local government area council?
To what extent does avoidance strategy affect employee’s productivity in Nasarawa Local government area council?

1.5 Statement of Hypotheses.

In line with the research objectives of the study, the following hypotheses are formulated.

H01: Collaboration strategy has no significant effect on employee’s productivity in Nasarawa Local government area council?

H02: Compromise strategy has no significant effect on employee’s on productivity in Nasarawa Local government area council?

H03: Avoidance strategy has no significant effect on employee’s on productivity in Nasarawa Local government area council?

1.6 Scope and limitation of the Study

This study was carried out on the impact of conflict management on employee performance in Nasarawa Local Government area council. The study was carried out on a cross-sectional basis and focus was on the conflict management strategies that contributed to employee productivity and overall organisational performance. Conflict management being the independent construct was operationalised by the following dimensions: collaboration strategy, compromise strategy and avoidance strategy; while the dependent variable was employees productivity.

Limitations

The following are the limitations of the study;

Uncooperative attitude of some of the staff of Nasarawa Local Government Area Council who refused to complete the questionnaires given to them or to be interviewed for fear of official reprisal. Their refusal to cooperate adversely affected the amount of data collected through primary sources.
Financial Constraint: The study could have been very extensive if more organizations were included. But the researcher could not afford the cost involved. Thus, the study is restricted to only one corporate organization.
Time Constraint: The researcher could not complete the study within a record time because of the pressure of other academic works on her.

1.7 Significance of the Study

The study is of great benefit to the management of Nasarawa Local Government area council, other researchers, general public and lastly, it contributes to the existing body of knowledge on conflict management.

This study is of importance to the management of Nasarawa Local Government area council in understanding conflict management strategies which have an important role in determining the success and failure of the organisation and also enlighten them on the strategies to adopt in the management of conflict so as to improve the performance of the organisation.

The research findings and recommendations of this study formed a base to be consulted by other researchers who may wish to make further inquiries into the subject matter. The study is of benefit to the general public as it provides them with adequate information concerning the activities of the organisation as it relates to conflict management in the private sector. This study also contributes to the existing body of knowledge on conflict management by examining the effect of conflict management strategies on organisational performance.

1.8 Historical Background of the Case Study

Nasarawa Local Government Area is a local government in Nasarawa State, Nigeria with its headquarter in the town of Nasarawa, located at 8°32’N 7°42’E, with a population of 30,949 (2016). The local government area has an area of 5,704 km² and a population of 189,835 at the 2006 census.

Nasarawa local government area was created in 1976 during the regime of General Olesegun Obasanjo, it shared boundaries with Karu local government, Keffi, Toto, FCT and Benue State.

The major tribes in Nasarawa local government are Hausa, Fulani, Afo, Gbagyi, Gade, while other minority tribes include mada, agatu etc. the main economic activity in Nasarawa local government is agriculture with cash crops such as yam, cassava, beniseed and egusi (melon). Production of minerals such as salt is also another major economic activity in the local government.

The local government has the following departments: personnel management department, finance department, works department, primary health care, agricultural department, social services and budget planning, research and statistics department.

1.9 Definition of Terms

Conflict: This refers to a situation of disharmony and grievance.

Organization: This refers to a combination or group of people who work together to achieve a goal.

Idiosyncrasy: This refers to a set of attitudes, behaviors and values which characterize an individual.

Goal: This refers to a set objective.

Goal congruency: This is a situation of overlapping personal interests.

Strategy: This is an approach or measure adopted in order to achieve a goal.

Corporate Organization: This refers to a business entity.

Disharmony: This refers to a situation of absence of togetherness.

Management: This refers to the art of planning, organizing, directing and controlling. It also refers to decision-makers in a corporate organization.

Monday 27 December 2021

EFFECT OF PLANNING TOOLS ON THE EFFECTIVENESS OF NOVUM AGRICULTURAL INDUSTRY LIMITED KARU, NASARAWA STATE

ABSTRACT

This study examine the effect of planning tools on the effectiveness of Novum Agricultural Industry Limited. Specifically the seek to identify the types of planning tools adopted by Novum Agricultural Industry Limited, examine the effect of budgeting on organizational effectiveness in the organization, assess the effects of SWOT Analysis on organizational effectiveness, determine the effect of financial analysis on the effectiveness of Novum Agricultural Industry Limited and examine the effect of value chain analysis on the effectiveness of Novum Agricultural Industry Limited. Survey research design was adopted and frequency and tabular percentage forms were used for data presentation while chi-square and regression analysis was used to test the hypothesis. The findings of the study shows that Novum Agricultural Industry limited adopted planning tools such as Budgeting / Financial analysis, SWOT analysis and Value chain analysis, budgeting, SWOT Analysis, financial analysis and value chain analysis has significant effect on the effectiveness of Novum Agricultural Industry Limited. Finally, the study recommends that Novum Agricultural Industry limited should identify the planning tools that are most effective for the organization and strictly adhere to it to enhance the effectiveness of the organization and that organizations should endeavor to adopt appropriate training planning tools and it relevance because appropriate training provides a solid foundation for employees’ performance.

CHAPTER ONE

INTRODUCTION

Background of the Study

Effective planning is a backbone support to strategic management and it is a major process in the conduct of management. According to Wagner (2016) the importance of effective planning can be explained from four points of view including environmental scanning, strategy formulation, and linking goals to budgets and strategic planning as a process. The planning process begins with setting organizational goals. The linkage between effective planning and organizational performance needs analysis to get a better understanding on how strategic planning is applied in practice and to improve performance.

For planning to be effective and useful, there must be commitment and involvement across all levels of the organization, overcome inherent problems such as; rivalry among departments, projects, resistance to change, resource requirement, resources allocation and so on. The strategy initiatives and directions set up by firm’s management in the form of mission and vision statements and targets for cost saving, debt/equity ratios embodied as argued by Grant (2017) “a framework of constraints and objectives that bounded and directed strategic choices.”

Effective planning in an organizational therefore is made possible through the use of planning tools (Nelson, 2018). Managers use planning tools and techniques to help their organization be more efficient and effective. There are three module of planning tools; these tools are assessing the environment, allocating resources and contemporary planning (Steiner, 2010). Planning tools obtains its basis from the concept that the future of an organization can be potentially influenced by actions undertaken in the present. The process involved the definition of the ideal future state of the organization, the formulation of a roadmap outlining how to achieve it and moving from the current state towards the organization’s future. Steiner (2010) observes planning tools as comprising of the setting of organizational goals, developing policies and strategies towards achieving these goals and the establishment of an in depth plan aimed at detailing the implementation process.

Key components of the planning tools include the mission, vision, goals and objectives of the organization (Nelson, 2018). The mission is a statement defining the organizational purpose for existence, the business the organization is involved in, and how it executes its mandate to achieve its vision. An organization’s vision on the other hand is futuristic in nature and concentrates on the long term view of the firm. Goals and objectives form the milestones within which short term as well as long term operations framework can be measured (Nelson, 2018).

Organizational performance interrogates the actual output achieved by an organization in comparison with the intended output. According to Richard (2018), profitability, customer satisfaction, product performance and market share are key indicators of organizational performance, achieving efficiency and effectiveness as measured through prudent utilization of organizational resources is another measure of organizational performance as it drives cost differentiation and customer satisfaction.

Effectiveness and efficiency in an organization is to engage in detailed planning in order to identify the sources of raw materials, equipment employed, determines sources of delivery dates, sources of working capital etc. Many organization projects failed due to inadequate use of planning tools, thus a good planning must therefore be realistic, have clearly defined objectives, comprehensive, flexible and economically effective. Thus it is against this background that this study seeks to examine the effect of planning tools on organizational effectiveness in Novum Agricultural Industry Limited Karu, Nasarawa State

Statement of the Problem

In most of our organization today, productivity of workers is far below expectations, many business organization incur a lot of losses from wastage caused by lack of effective planning which results to inefficiency of workers and low productivity. In view of the many challenges that business organizations are exposed to, it is imperative for them, both profit and nonprofit organizations, to anticipate challenges, identify their strengths to meet anticipated challenges and take control of available opportunities to obtain maximum productivity through the use of planning tools. Unfortunately, in most organizations, planning tools such as network analysis, cost benefits analysis, SWOT analysis, benchmarking, Perter’s five forces, competitive analysis, budgeting etc are not effectively used and implemented properly. Many organizations do not attach any importance to planning tools and strategic planning therefore; do not have strategic plans for their organizations. This could be borne out of lack of appreciation and knowledge of the relevance of using appropriate planning tools to enhance organizational effectiveness. Despite the fact that the use of planning tools has brought far reaching revolution which has tremendously transformed most business landscape, it is still plagued with some constraints in so many organizations. Some of these constraints include wrong application of planning tools, unethical attitude, poor organizational structure and Non conformity of the rules and standards by the workers of the company towards actualization of the strategic goals. In an attempt to address this unfortunate development, there is the need to critically examine the effect of planning tools on organizational effectiveness in Novum Agricultural industry Limited.

Objectives of the Study

The general objective of the study is to examine the effect of planning tools on organizational effectiveness in Novum Agricultural Industry Limited. The specific objectives of the study include:

To examine the effect of budgeting on organizational effectiveness in Novum Agricultural Industry Limited.
To assess the effects of SWOT Analysis on organizational effectiveness in Novum Agricultural Industry Limited.
To determine the effect of financial analysis on the effectiveness of Novum Agricultural Industry Limited.
To examine the effect of value chain analysis on the effectiveness of Novum Agricultural Industry Limited.
1. Research Questions
What are the effects of budgeting on organizational effectiveness in Novum Agricultural Industry Limited?
What is the effects of SWOT Analysis on organizational effectiveness in Novum Agricultural Industry Limited?
What is the effect of financial analysis on the effectiveness of Novum Agricultural Industry Limited?
What is the effect of value chain analysis on the effectiveness of Novum Agricultural Industry Limited?

1.5 Research Hypothesis

The researcher formulated the hypothesis to find out the relationship between planning tools and organizational effectiveness in Novum Agricultural Industry Limited. These hypotheses are thus stated below:

H₀₁: Budgeting has no significant effect on organizational effectiveness in Novum Agricultural Industry Limited.

H₁₁: Budgeting has significant effect on organizational effectiveness in Novum Agricultural Industry Limited.

H₀₂: SWOT Analysis has no significant effect on organizational effectiveness in Novum Agricultural Industry Limited.

H₁₂: SWOT Analysis has significant effect on organizational effectiveness in Novum Agricultural Industry Limited.

H₀₃: Financial analysis has no significant effect on the effectiveness of Novum Agricultural Industry Limited.

H₁₃: Financial analysis has significant effect on the effectiveness of Novum Agricultural Industry Limited.

H₀₄: Value chain analysis has no significant effect on the effectiveness of Novum Agricultural Industry Limited.

H₁₄: Value chain analysis has significant effect on the effectiveness of Novum Agricultural Industry Limited.

1.6 Scope and Limitations of the Study

The scope of the study is limited the effect of planning on organizational effectiveness in NOVUM Agricultural Industries Ltd. Specifically the scope of the study will limited to the following planning tools: environmental scanning, budgeting, organization’s mission, vision, goals and objectives

Limitations of the Study

The authenticity as well as validity in a research work of this magnitude and nature is limited by number of factors both economic, materially, socially, physically and otherwise.

The authenticity of findings surely depends largely on the degree of honesty exhibited by the officials concerned, some vital in information was not revealed because of their competitors, having no insight on information as the running and operations of their company.

Secondly, this project work required one to consult some books by way of exploring the library in preparing its review and compilation, but the piece of work is therefore restricted to a number of books available. Moreover, the investigation on this research work only covered the company.

1.7 Significance of the Study

The findings of the study will be of great assistance to the management organizations especially Novum Agricultural Industry Limited to address various planning issues and planning tools that affect their performance. To understand and appreciate the critical aspects concerning strategic planning and impact on overall firm’s performance, as well as seek ways to support and facilitate planning tools and work towards eradicating bottlenecks to achieve effective implementation of strategic decisions.

Stakeholders

The study will also provide stakeholders in the real sector of the economy especially the agricultural sector with a basis of understanding planning tools in the industry or organization and seek ways of adopting best management practices hence contributing positively to the overall sector planning.

Scholars

The study provided information to current and potential scholars on the area of planning tools and organizational effectiveness in both private and public sector. Likewise, researchers may want to gain insights and explore the area of planning tool in the agricultural industry.

1.8 Historical Background of Novum Agricultural Industries

NOVUM Agricultural Industries was founded in 2006 as a large scale commercial agriculture and agric-processing company. In 2010, a supreme feed was born with the installation of large scale commercial feeds mill in Nasarawa state. With the mission to produce and supply the highest quality animal feed in Nigeria. NOVUM Agricultural industries installed a factory for processing soya beans and groundnut providing fully inclusive operations to ensure that NOVUM Agricultural Industries (NAI) performs its vital role of converting grains and oil seeds to the highest quality animal feed available through partnerships with world leading animal feed Additive supplier, it is committed to excellence and on-going innovation and control over the inputs used in the feed production process.

However, the industry started with functional departments, with general manager as the Head of General Administration who is responsible for overseeing all milling operations of the company, including the poultry feed factory, the fish feed factory, the oil mill and maize meal factory.

But as time goes on, it is expanded both in size and the productions, and specialized in much foundation by creating separate sub departments, like administrative department, finance department and operation department.

The administrative department deals with the recruitment, decision making and welfare of the workers etc.

The finance department deals with all type of monetary transaction of the company. The operation department includes the design and management of products, services and processes, the operation department evaluates and allocates resources to effectively deliver of products and services.

Before any work can commence in NOVUM Agricultural industry, the laid down planning must be followed, that is the production policy must be known and the process of manufacturing machines requirements, factory layout, storage and handling systems, skill required in men and their method of training and re- training can be determined. This policy is largely well determined by nature of being carried out.

1.9 Definition of Terms

The meanings attached to some terms as used in the context of this study are given below:

Planning: – It involves selecting enterprise goals and department objectives, then finding ways of achieving them.
Effectiveness: – This means the ability to producing a desired result.
Efficiency: – This means the ability to produce something without wasting materials, time and energy.
Organization: – This simple means a system where two or more people agreed to get together and coordinate their activities to meet goals.
Human Resources Planning: – Putting right number of people and right kind of people at the right place, at the right time, and doing the right thing for which they are suited for the achievement of the goals of the organization.