An Analysis of Alarming Rate of Insecurity in Nigeria and Its Effect on Banking Sector
CHAPTER ONE
OBJECTIVE OF THE STUDY
The following are the primary objective
- To examine the causes of insecurity in Nigeria.
- To analyse how insecurity in Nigeria has affected the banking sector.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Issues
Achumba (2013) defines insecurity from two perspectives. Firstly, insecurity is the state of being open or subject to danger or threat of danger, where danger is the condition of being susceptible to harm or injury. Secondly insecurity is the state of being exposed to risk or anxiety, where anxiety is a vague unpleasant emotion that is experienced in anticipation of some misfortune. These definitions of insecurity underscore a major point that those affected by the situation are not only uncertain or unaware of what would happen but they are also vulnerable to the threats and dangers when they occur (Ajufo, 2013). Rejda and Haley (2014) see economic insecurity as a chronic state or condition during which an individual or family has insufficient financial resources to satisfy basic needs and wants, including food, housing, medical care, transportation and similar needs. In the context of this paper insecurity is defined as a breach of peace and security, whether historical, religious, ethno-regional, civil, social, economic, and political that contributes to recurring conflicts, and leads to wanton destruction of lives and property. Unemployment has been the singular view some economists have for economic insecurity; economic insecurity has been measured with community level indicators such as unemployment rate. Job insecurity and the risk of unemployment, is central to a conception of economic insecurity, indeed so central that they are assumed to be identical (Osberg, 1998). Scheve and Slaughter (2017) argued that economic insecurity among workers may be related to deteriorating employment and wage interaction with employers. However, today’s widespread insecurity requires economists and policy makers to look beyond a few aggregate statistics. The concept of growth is used in all fields of human endeavour. In economics the concept refers to economic growth (Osinubi, 2005). According to him, growth is often interpreted by many economists to mean increase in the volume of goods and services (output) produced by a country for a given period of time usually one year. Some other economists also viewed economic growth quantitatively by measuring output. Kinderberger and Jhingan (2008) defined it simply as more output. Economic growth is measured by the amount of increase in goods and services produced in a country.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain analysis of alarming rate of insecurity in Nigeria and its effect on banking sector. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of alarming rate of insecurity in Nigeria and its effect on banking sector.
Summary
This study was on analysis of alarming rate of insecurity in Nigeria and its effect on banking sector. Two objectives were raised which included; To examine the causes of insecurity in Nigeria and to analyse how insecurity in Nigeria has affected the banking sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from first bank Niger state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
There is a negative and significant relationship between Expected Losses caused by insecurity challenges, Fraud cases and Earnings before tax (EBT) of commercial banks in Nigeria. There is a negative and significant relationship between Number of insecurity, Fraud cases and Earning before Tax of Commercial banks in Nigeria. There is a positive and significant relationship between Volume of insecurity, Fraud cases and Earning Before Tax of Commercial banks in Nigeria. There is a negative but insignificant relationship between Number of Staff involved in fraud cases and Earning before Tax of Commercial banks. Granger causality tests demonstrate that there is a uni-directional causality relationship from Expected Losses caused by insecurity challenges and Fraud cases, Volume of insecurity and Fraud cases to Earnings before Tax of Commercial banks respectively.
Recommendation
Board of Directors should be knowledgeable in accounting and banking and must have stakes in the bank.
Members of staff /or their guarantors should be made to deposit a specific substantial amount to serve as a check on the conduct of the staff, so that, in case he/she is involved in fraud the job and the deposited money would be lost by the affected staff.
The issue of check and audit should be done on every transaction immediately it is done because delay may be dangerous.
Each voucher rose for expenses (printing of stationeries, stock and equipment) should be thoroughly checked and market survey should be conducted before giving approval for purchases. These will help deter fraud in the banking system.
References
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