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Role of Pedagogy in Development of Effective Entrepreneurship Skill among Polytechnics’ Students in Nigeria (A Case Study of North-Eastern Nigeria)

ROLE OF PEDAGOGY IN DEVELOPMENT OF EFFECTIVE ENTREPRENEURSHIP SKILL AMONG POLYTECHNICS’ STUDENTS IN NIGERIA (A CASE STUDY OF NORTH-EASTERN NIGERIA)

By

Danladi Ibrahim Musa and Dr. Yunusa Mohammed Kaigama

Tertiary Education Trust Fund (TET Fund) Sponsored Study

Abstract

It has been observed that the outcome of the Federal Government’s entrepreneurship education initiative now more than a decade old directed at inculcating entrepreneurial culture in Nigerian graduates of higher educational institutions, has been disappointingly modest. The lucky few graduates who gained paid employment hardly perform without some sort of retraining by their employers, and fewer still are able to independently set up viable economic enterprises. In view of these and related problems, this study investigated the prospect of entrepreneurship education in the polytechnics located in the Northeast geo-political zone of Nigeria. The study adopted cross-sectional survey method. Primary data were collected from a sample of ten polytechnics within the Northeast using a well-structure questionnaire. The data collect were organized using descriptive statistics. The results show that the polytechnics are faced with structural, curricula, pedagogical, and human resource challenges that rendered the overarching objectives of fostering self-reliance, creating jobs, and driving economic growth a great through entrepreneurship education virtually unachievable. Recommendations were advanced to address the challenges identified.

Keywords: Pedagogy, Development, Effective Entrepreneurship, Polytechnic Students.

1.0 Background of the Research

In Nigeria, higher technical education is mainly provided in Polytechnics (and in some few technical universities). Technical education is essentially entrepreneurial; it seeks to equip students with functional knowledge, skills, attitudes and related competences that they may readily apply in creating value, i.e., goods and services (Idogho and Ainabor, 2011). Therefore, Polytechnics are established to produce the highest possible levels of technical manpower to enhance national development (FGN, 2004). The unarticulated caveat is that the Polytechnic system is aligned well enough to achieve the desired objectives. Over the years however, it was realized that products of the Polytechnic system though fairly equipped with the requisite knowledge and skills are most often incapable of using the acquired competences to initiate value adding economic ventures that will contribute to the overall drive of the country at fighting poverty and fostering economic growth and development (Bubou and Okrigwe, 2016).

This type of scenario is not the sole experience of Nigeria; even developed countries with better educational systems such as the United Kingdom do wonder whether graduates are equipped with the right skills (Raybould and Sheedy, 2005). Therefore, the Federal Government of Nigeria (FGN) took the path of promoting entrepreneurship through entrepreneurship education in order to produce a critical mass of graduate entrepreneurs necessary for economic development (Nkamnebe, Mitra, Abubakar and Sagagi, 2015). This was done by simply adding entrepreneurship subjects to the curricula of the various programmes offered in all higher educational institutions (Kabongo and Okpara, 2010).

Laudable as the FGN’s pro-entrepreneurship efforts are, the implementation lacks a defined strategy dovetailed to the peculiarities of fostering the entrepreneurial spirit among students under the formal education system. Therefore, the focus of almost all of the entrepreneurship programmes is correctly on the provision of entrepreneurial competences, the delivery ended up using the inappropriate pedagogic mechanism widely used in Nigeria’s HEIs the lecture method (Acs, 2010). Thus, students ended up learning by rote some concepts in entrepreneurship just to pass the written examination. In as much as the end envisaged of entrepreneurship education is to produce actual entrepreneurs who will initiate and nurture viable enterprises for sustainable economic development of the nation, the FGN’s programmes are a monumental failure, as evidenced by the rising levels of graduate unemployment, widespread poverty, and falling economic indicators (Animn, 2012). In fact, Adejimola and Olufunmilayo (2019) reported that about 70% of the Polytechnic graduates find it difficult to get employment every year. Why?

One of the major gaps in the success potentials of the entrepreneurship programmes of Nigeria’s HEIs lies not only in the use of the wrong pedagogy but also in the blurring of the distinction between small business management and entrepreneurship. The two fields are often erroneously treated as one and the same (Solomon, Duffy and Tarabishy, 2002). A cursory perusal of the entrepreneurship curriculum current in all the Polytechnics reveals that the courses offered are variously titled Small Business Management, Business Entrepreneurship, Small Business Start Up, Entrepreneurship, Entrepreneurship Development Programme, and similar nomenclatures. However, the contents of the courses remain virtually identical, and were designed not for entrepreneurship education but obviously about entrepreneurship education and delivered to students via the lecture mode. Furthermore, evaluation of students’ performance in the entrepreneurship courses is by written examination, an evaluation approach equally as inappropriate as the pedagogy used in teaching the courses. Students end up getting the scores and not the skills. One of the research proposers could well remember scoring an “A” in the course Computer Appreciation without ever having assembled a simple desktop or booting same, simply because there were no computers then, and their lecturer had to teach using his lecture notes only plus the ubiquitous chalk board.

Hence, if entrepreneurship education is to produce the needed graduate entrepreneurs capable of generating real growth and wealth and fighting poverty, the challenge to educators will be to craft entrepreneurial courses, programmes and major fields of study that meet the rigours of academia while keeping a reality-based focus and entrepreneurial climate in the learning experience environment (Block and Stumpf, 1992). In other words, there is the imperative for entrepreneurial education to focus more on the end result envisaged (sustainable supply of graduate entrepreneurs), and employ more experientially-based pedagogies in the course delivery process. This imperative provides the justification for the need to reconsider the contents of all entrepreneurship programmes offered in Nigerian Polytechnics, design an appropriate pedagogy for teaching the programmes, develop effective evaluation strategies, and situate the entire programme in the most relevant unit in the Polytechnics for outcome-focused implementation. This is the thrust of this research.

1.1       Statement of the Research Problem

In spite of the introduction of compulsory entrepreneurship education in Nigerian Polytechnics, many graduates are still unemployed after graduation because they lack effective entrepreneurial skills. It seems like entrepreneurship education is not achieving the objectives for which it was initiated. Therefore, there is need to examine the process of instructional delivery in entrepreneurship education classes in order to produce graduate entrepreneurs.

1.2       Objectives of the Research

The problem associated with entrepreneurship education as presently obtainable in Nigerian Polytechnics underpins this research study. Accordingly, the general purpose of this study is to evaluate the contents, pedagogical processes, management structures and expected outcomes of entrepreneurship education as currently provided by all the Polytechnics of the Northeast geo-political sub-region of Nigeria with a view to developing a more outcome-focused alternative that helps generate the critical mass of entrepreneurial graduates upon whose subsequent activities the socio-economic development of the region in particular and the nation in general rests.

2.0 Literature Review

2.1 Definition of Entrepreneurship

In 2005 the entrepreneurship division of the Academy of Management conducted a survey among its members, supplying them with a choice of possible definitions for entrepreneurship, to vote for a statement about the specific domain entrepreneurship division. The majority voted for the following one: Specific Domain: the creation and management of new businesses, small businesses and family businesses, and the characteristics and special problems of entrepreneurs. Major topics include: new venture ideas and strategies, ecological influences on venture creation and demise, the acquisition and management of venture capital and venture teams, self-employment, the owner-manager, management succession, corporate venturing and the relationship between entrepreneurship and economic development. Due to this variety of topics including elements of several domains such as economics, sociology, and psychology just, to name a few, there is still no generally accepted definition of “entrepreneurship” or the “entrepreneur.”

 In fact, the lack of a commonly recognized definition of these terms is seen as one major obstacle for researchers in contributing to the understanding of this phenomenon (Shane and Venkataraman, 2000). A large number of definitions have been given in many research contributions dealing solely with the issue of defining entrepreneurship. These definitions often focus on certain aspects. Shapero (1975, p. 187) thinks of entrepreneurship as a kind of behaviour that includes:

(i) initiative taking,

(ii) the organizing or recognizing of social economic mechanisms to torn resources and situations to a practical account, and

(ii) the acceptance of risk of failure.

Gartner (1988, p. 64) takes a behavioral approach and considers entrepreneurship as a role that individuals undertake to create organizations. He adds that entrepreneurship ends when the creation stage of the organization ends. The pursuit of opportunities is central to the definition of Stevenson, Roberts and Grousbeck (1989, p. 23): Entrepreneurship is a process by which individuals either on their own or inside organizations pursue opportunities without regard to the resources they currently control. This definition does not necessarily postulate that the creation of an organization is involved in being an entrepreneur. Entrepreneurship can also occur within organizations, building a bridge to the concept of intrapreneurship. Finally, Shane and Venkataraman (2000, p. 218) give a definition of entrepreneurship as a scientific discipline. They define it as the scholarly examination of how, by whom, and with what effects opportunities to create future goods and services are discovered, evaluated and exploited. Consequently, the field involves the study of sources of opportunities; the process of discovery, evaluation, and exploitation of opportunities; and the set of individuals who discover, evaluate, and exploit them.

Following this latter definition, we define entrepreneurship in the context of this research project as the discovery, evaluation and exploitation of opportunities to create future goods and services by a natural individual through the creation of a new organization. In this report, we call these new organizations start-ups or new businesses and use the term “to start an own business” for any entrepreneurial activity as defined above.

2.2 Meaning of Entrepreneurship Education

A number of academic works have reported on the state of the art of entrepreneurship education (Block and Stumpf, 1992; Gorman, Hanlon and King, 2007; Onstenk, 2003; Trivedi, 2014; Weber, 2011; West III, Gatewood, and Shaver, 2009). While most of these works were not explicit on the definition of entrepreneurship education, one paper states that “educational orientation, teaching strategies, learning styles, curricula design and entrepreneurship structures” (Gorman, Hanlon and King, 1997 p. 26 p. 26) are the most relevant dimensions to consider in defining the term entrepreneurship. Other researchers present a framework of entrepreneurial orientations consisting of “conformist, adaptive, transformative” and process approaches (Bechard and Toulouse, 1998). More recently, entrepreneurship education is championed as a mainstay of any entrepreneurship ecosystem (Isenberg, 2010; Fetters et al, 2010; Neck, Greene and Brush, 2014). The list of varying conceptualizations of the term may go on indefinitely. Thus, there is no substantive agreement about what entrepreneurship means in educational settings and the appropriate content of programmes is under permanent discussion (Gibb, 2002).

Entrepreneurship Education, according to Ekankumo and Kemebaradikumo (2011), is that education which assists students to develop positive attitudes, innovation and skills for self-reliance, rather than depending on the government for employment. This definition was apparently proffered against the backcloth of the government’s rationale for championing entrepreneurship education as a panacea to the rising levels of graduate unemployment occasioned by the massive graduate turnout from Nigeria’s HEIs and the concomitant inability of both the private and public sectors of the Nigerian economy to absorb these graduates. Whatever the rationale, entrepreneurship education was provided was considered a vehicle for teaching entrepreneurship to students. Looked from the other side, entrepreneurship education is meant to provide students the opportunity to learn entrepreneurship.

Entrepreneurship teaching is the process of providing individuals with the knowledge and skills to recognize opportunities that others have overlooked and to have the insight, self-esteem, and confidence to act where others have hesitated (Summit Consulting LLC. 2009). Entrepreneurship teaching aims to be a source of trigger-events aiming to inspire students, arouse emotions, and change mind-sets (Al-Laham, Souitaris, and Zerbinati, 2007). On the other hand, entrepreneurial learning is a problem-solving process centered on the acquisition, storage and use of entrepreneurial knowledge in long term memory (Rae and Carswell, 2000). This harmony in the outcomes of teaching and learning entrepreneurship can be operationalized effectively only if there is harmony between the enabling instrument for entrepreneurship education (a policy), the extant curriculum and course specifications on entrepreneurship, the relevant entrepreneurial pedagogy, teaching facilities and resources, and institutional infrastructure. At present, such harmony seems to be elusive in Nigerian Polytechnics. For the purposes of this research, we define entrepreneurship education as a method whereby students of all classes practice the art and science of creating, finding, and acting on opportunities of creating economically valuable and needed goods and services (Neck, Brush and Greene, 2014).

Entrepreneurship education within HEIs generally consists of a nested set of activities, including curriculum, co-curricular activities, and research efforts (Brush, 2015; and Kuratko, 2005) geared towards the production of ready-to-act potential entrepreneurs. Importantly, the decisions around entrepreneurship education include everything from learning objectives, topics covered, selection of materials (including cases, exercises, and concepts), pedagogy, and delivery mechanisms (Brush, 2015, p. 30). Each of these decisions should flow from an institution’s intentionally selected definition of entrepreneurship, along with the role of theory and the degree of integration across classes, programmes, etc. (Neck, Greene, and Brush, 2014). Entrepreneurship education also varies across audiences. For instance, programmes focused on youth (primary and secondary school) may focus on the desirability and feasibility of business start-ups in order to influence the students’ intentions (Peterman and Kennedy, 2003). At the polytechnic or university level, the programme may focus more on skills and competencies associated with developing venture ideas, pathways into entrepreneurship, market testing, and building a business model. In local training area, curricula might focus on ways to launch a small firm, become self-employed, or to buy a franchise.

Audience might also be defined by the type of business being pursued. In the U.S., entrepreneurship education, particularly that offered through academic institutions, is often viewed as targeted toward the development of fast growth, technology-based businesses, while in Europe, entrepreneurship education is often more connected to the SME community (Small and Medium Sized Enterprises). In China, the focus is usually on a more general “start-up” approach (Zhou and Xu, 2012), and in Qatar it is on diversification into non-oil-related businesses. The audience in Nigeria closely follows that of Europe, as the focus is on the generation of a critical mass of small and medium entrepreneurs who are expected to catalyse the process of employment generation and economic development generally. Across countries, there are different emphases, depending on the context and, in some cases, industrial policy. For instance, New Zealand and Ireland have supported the creative industries, while Israel has supported internet and other electronic technologies. Nigerian support mainly goes to SMEs in line with most of the policy objectives of Federal Government’s Entrepreneurship Development Programmes. Overall, “a growing critique of entrepreneurship education is that it needs to give more attention to the development of entrepreneurial attitudes, aspirations, and activities” (Regele and Neck, 2012, p. 25) or what has been referred to as the entrepreneurial mindset.

Although research regarding the effectiveness of entrepreneurship education has grown over time (Gartner and Vesper, 1994; Henry, Hill, and Leitch, 2005; Dickson, Solomon, and Weaver, 2008), there are questions about the overall impact in the actual increase in the number of businesses (Weaver, Dickson, and Solomon, 2008; Honig, 2004; Sarasvathy, 2001). Yet this narrow outcome of new business formation in entrepreneurship education has come under recent scrutiny (Vanevenhoven and Liguori, 2013). As a result, impact is now being measured by the relative increase in positive perceptions of entrepreneurship and even an intentionality toward being entrepreneurial. The actual relationship between those intentions and actual entrepreneurial behaviours remains an active area of study, but emerging findings suggest that there is indeed a positive relationship between entrepreneurship education and entrepreneurial behaviors (Singer, Amoros and Moska, 2015).

As entrepreneurship education has advanced, so has our understanding of what is required to learn and practice entrepreneurship. Today greater attention is placed on cultivating the entrepreneurial mindset of students, and such a mindset is the precursor to both behaviour and action. Ground-breaking research (Sarasvathy, 2008) has empirically supported that entrepreneurs do think in a particular way that distinguishes them from managers. However, this is in stark contrast to trait theorists (Fisher and Koch, 2008; Miner, 1996; McClelland, 1965), who believe entrepreneurs possess certain innate personality characteristics. The entrepreneurial mindset is learnable and teachable; innate traits are not. The entrepreneurial thinking patterns discovered and supported by ongoing research (Sarasvathy, 2008; Neck and Greene, 2011; Noyes and Brush, 2012; Greenberg, McKone-Sweet and Wilson, 2011) are fundamentally changing how we approach entrepreneurship education. The starting point is no longer the idea, the opportunity, or the business plan; rather, it’s now about developing a mindset of acting, doing and creating.

2.3 Justification of Entrepreneurship Education Programmes

Various researchers have already attempted to assess empirically the impact of entrepreneurship education programmes on their students, controlling for the personal and environmental factors that might influence their orientations and behaviours (Lüthje and Franke, 2003). In particular, researchers have demonstrated that a favorable teaching environment might improve the way students consider entrepreneurship as a career option. Johannisson (1991) and Autio et al. (1997) underscore the impact of students’ perceptions of entrepreneurship, along with resources and other support mechanisms available in the environment of HEIs, on students’ attitudes towards entrepreneurial careers. Other research has shown the importance of the social status of entrepreneurial activities and situations (Begley et al., 1997) and the statistical link between the level of entrepreneurial intention and the number of management courses taken by students enrolled in other programmes (Chen et al., 1998).

On the other hand, entrepreneurship education programmes have been shown to influence both the current behaviour and the future intentions of their participants (Kolvereid and Moen, 1997; Tkachev and Kolvereid, 1999; Linan, 2004), with significant differences observed between students who had taken entrepreneurship courses and those who had not. Noel (2001) looked specifically at the impact of entrepreneurship training on the development of entrepreneurial intention and the perception of self-efficacy. The students in this sample had all taken an entrepreneurship education programme and were graduates in entrepreneurship, management or another discipline. Noel’s findings at least partially confirmed the assumption that the entrepreneurship graduates were more likely to launch businesses and had a higher level of intention and a more developed perception of self-efficacy than other students. Other researchers have tried to explain the relationship between entrepreneurship programmes and individual characteristics, such as need for achievement and locus of control (Hansemark, 1998) or the perception of self-efficacy (Ehrlich et al., 2000). They found that entrepreneurship education had a positive impact, enhancing these characteristics and the likelihood of entrepreneurial action at some point in the future.

Several researchers have attempted to identify whether specific educational variables (course content, teaching methods, teacher profile, resources and support, and so on) might significantly influence the outcome of a programme in terms of attitudes, values or knowledge. For example, Varela and Jimenez (2001), in a longitudinal study, chose groups of students from five programmes in three universities in Colombia. They found that the highest entrepreneurship rates were achieved in institutions that had invested the most in entrepreneurship guidance and training for their students. Dilts and Fowler (1999) attempted to show that certain teaching methods (internships and field learning) were more successful than others at preparing students for an entrepreneurial career. Finally, Lüthje and Franke (2003) discussed the importance of certain contextual factors within the university environment that hinder or facilitate the access of technical students to entrepreneurial behaviour. Their findings mirror the essential elements of the Fayolle-Gailly model of entrepreneurship education (Fayolle and Gailly, 2008). For the purpose of this study, we shall adopt the said theory. Before discussing the Fayolle-Gailly Model of entrepreneurship education, it is germane to present the changing nature of entrepreneurship education as the justification for the use of the selected model.

2.4 Theory of Entrepreneurship Education

Embedded on the literature (Anderson, 1995; Joyce and Weil, 1996), and extending work in entrepreneurship education by Bechard and Gregoire (2005, 2007), Fayolle and Gailly (2008) have produced an entrepreneurship teaching model framework which they fittingly describe as “a canonic teaching model.” The framework assists us in the understanding entrepreneurship teaching and learning (Fayolle and Gailly, 2008), as it allows for the integration of a number of dimensions which arise at the ontological and educational levels.

2.5 Methods and Pedagogies

Entrepreneurial education programmes may be both formal (that is, structured education) and non-formal (De Faoite et al., 2004). Courses typically include structured education and informal support. Structured education usually focuses on developing technical skills, business management skills and personal entrepreneurial skills (Hisrich and Peters, 1989) with financial management, marketing and management knowledge (De Faoite et al., 2004). But how should these formal skills and knowledge be imparted? Informal supports for graduate entrepreneurs include mentoring, business counselling, financing and networking opportunities are other ways of delivering support. Mentoring is highly recommended as a support mechanism for graduate entrepreneurs (Carter, 2000; Tillmar, 2007).

Mention is also given to course timing and duration. Entrepreneurship education should take students’ typical daily lives into account (Allen, Langowitz and Minniti, 2007; Delmar and Holmquist, 2003). Programme organizers should avoid, for example, scheduling two-week intensive full-time courses which may not fit in with students’ other curricula and non-curricula commitments (Watkins and Watkins, 1984; Ehlers and Main, 1998). There is a considerable lack of research with regard to the methods and pedagogies of teachers specifically involved in entrepreneurship education. To what extent are real-life or virtual cases, role plays and problem simulations used in such education? Are teaching approaches participative or interactive? To what extent is learning by doing encouraged? Clearly, there are many pertinent methodology and pedagogical style questions yet to be answered.

2.6 The Problem of Entrepreneurial Pedagogy

Business courses as the precursors to entrepreneurship programmes tend to be highly structured (Sexton and Bowman, 1984) because structured environments are generally the best for teaching. At the onset of the onboarding of entrepreneurship education in HEIs, the business education model was readily and simply used in teaching entrepreneurship courses. Tell students what you want them to know, have them apply that knowledge, and remind them what you told them by correcting their performance. But uncertainty and ambiguity are an inherent part of the entrepreneurial experience. In structuring their educational experience, the teacher eliminates the uncertainty and ambiguity that inhibit the educational process and that students generally dislike, but in doing so, the teacher creates an artificial, academic environment that bears little resemblance to the uncertain and even chaotic environment within which entrepreneurs must operate.

Creating structure is work for the teacher, but most of this work precedes the start of the course with the design of the course, the codification of this design in the course syllabus, and the preparation of teaching materials. Over time, the work done in structuring the course reduces the overall amount of work that the teacher must put into the course. In the long run, structured course is easier for the teacher. It is also easier for the students. It lets students know what they need to do and how to allocate their time. Less time is wasted on wrong turns or fruitless searches for information.

But does a structured environment best prepare students for an entrepreneurial career? Sexton and Bowman (1984) argued that entrepreneurship courses should be relatively unstructured. Many of those currently teaching entrepreneurship were trained in related fields where highly structured approaches can be effective; they initially used a highly structured approach when they first started teaching entrepreneurship only to become disillusioned with this approach because of doubts about its effectiveness. This disillusionment may come from seeing a lack of creativity in assignments for which the teacher provided detailed instructions. It can also come from watching students flounder when given more ambiguous assignments in the context of a practicum project or an internship with an entrepreneur. One of the most powerful sources of disillusionment of a structured approach comes from seeing former students, whom the teacher felt had developed very strong entrepreneurial skills, avoid entrepreneurial careers because of apparent discomfort with the uncertainty involved. While teachers may come to this realization through different paths, their destination – disillusionment with a highly structured approach to entrepreneurship pedagogy – is the same.

A logical response to this situation is to decrease the structure in entrepreneurial courses, but teaching in a less structured environment is more challenging for the teacher, the students, and for the institution in which the teaching occurs. Ironically, less structured approaches are often resisted by the students with the highest grades because these students have adapted well to the typical structured environment in higher education classrooms and tend not to perform as well in less structured environments. Less structured approaches tend to garner less respect from administrators and colleagues in other business disciplines. Applying a less structured approach simply goes against the grain in most institutions of higher education.

Entrepreneurship teachers thus face a dilemma in determining the amount of pedagogical structure to apply in their classrooms. More structure greases the educational process and is generally preferred by everyone involved. But increasing structure also undermines the effectiveness of the teacher and the course in preparing students for entrepreneurial careers. When teachers eliminate or reduce uncertainty and ambiguity for their students, they deny these students valuable experience in handling uncertainty and ambiguity conditions which are paramount in the entrepreneurial process (Jeffrey and Dean, 2006).

The common means for mitigating the dilemma of pedagogical structure is to employ a combination of structured and unstructured activities – by structuring courses and most course activities but also including activities that require students to create their own structure. Entrepreneurship programs address this dilemma by structuring introductory entrepreneurship course and by requiring students to show more initiative and to create more of their own structure in advanced entrepreneurship courses. In both courses and programs, there is a sequence from more structured to less structured as the students advance through the courses or program. Courses requiring a very high tolerance for uncertainty and ambiguity are often elective rather than required course, allowing students who are not comfortable with uncertainty and ambiguity to avoid courses that would be unpleasant for them. But allowing students to avoid experience with uncertainty and ambiguity undermines their entrepreneurial training and can lead to inaccurate perceptions of entrepreneurial careers.

As students’ progress to less structured educational environments, the entrepreneurship teacher’s role changes from teacher to mentor or advisor. Because it is difficult to excel at both of these roles, teachers tend to specialize. Those with a primarily academic background tend to be more involved in the structured, introductory courses. Teachers with more practical experience or with extensive teaching experience tend to teach the less structured, more applied entrepreneurship courses. Just as some students are more comfortable with uncertainty and ambiguity, so too are some teachers. The nature of the teacher’s background helps to explain this difference, but it is also likely that underlying personality traits affect both teachers’ career paths and their tolerance for uncertainty and ambiguity.

Structure is essential to entrepreneurship and entrepreneurship pedagogy. Entrepreneurship teachers need to provide the structure for their assignments, courses, and programs, but entrepreneurship students need experience creating structure, especially in contexts of high uncertainty and ambiguity. Entrepreneurship teachers need the benefit of structure, but they also need to selectively refrain from providing structure and to push their students to develop their own structure.

No matter how dedicated, industrious, intelligent, innovative, and experienced entrepreneurship teachers are, they cannot do everything they would like to do for their students because helping entrepreneurship students in one way often hurts them in another way. For example, providing more pedagogical structure facilitates learning but fails to prepare students for the uncertainty that will face as entrepreneurs. Building students’ confidence makes them stronger entrepreneurs but also makes them less careful. Teaching students’ practical knowledge eases their transition to entrepreneurial careers but also narrows their knowledge base. Encouraging students to imitate others helps them develop a practical skill but undermines their learning. Fostering entrepreneurship preferences directs some students to rewarding careers but leads others to inappropriate careers. There is nothing that entrepreneurship teachers can do to eliminate these abiding trade-offs. Entrepreneurship teachers are caught between a rock and a hard place; they face a dilemma.

As entrepreneurship education has advanced, so has our understanding of what is required to learn and practice entrepreneurship. Today greater attention is placed on cultivating the entrepreneurial mindset of students, and such a mindset is the precursor to both behaviour and action. The entrepreneurial mindset is learnable and teachable.

4.0       Research Methodology

Otokiti (2005) identifies the following nine types of research methods as those commonly used in entrepreneurship research: experiment, survey, case study, action process, grounded theory, ethnographic, archives, ipso facto, and observation. The choice of method depends on the research questions asked and the objectives of the research. A quantitative research method was adopted for this study. The study was designed to combine primary survey-based data with secondary information from polytechnic documents. For the purpose of this study, the cross-sectional method was used. Again, a number of modes of survey administration exist, but for the purpose of this study, the written (questionnaire) mode was employed. Overall, a well-structured questionnaire was administered on teachers who take entrepreneurship courses, and semi-structured interviews were conducted with senior academics/schools including directors of the entrepreneurship development centers in the sampled polytechnics. The idea behind this was to obtain cross-referencing data and some independent confirmation of data, as well as a range of opinions.

4.1 Sources and Method of Data Collection

This study combined secondary and primary data. The primary data were sourced through a well-structured questionnaire. We utilised a questionnaire to obtain information needed on the challenges facing entrepreneurship education in Nigeria. Interview sessions were also scheduled with some senior academics/faculty to document the process, nature and mode of teaching of entrepreneurship programmes in Nigeria. The secondary data were obtained mainly from the curriculum and course specifications issued by the NBTE for the various programmes run in the polytechnics.

4.2 Population of the study

The population of the study is divided into eight strata, with each stratum representing a polytechnic. Taraba State Polytechnic was excluded from the study due to non-accessibility of information. Respondents were then drawn from the eight strata (polytechnics). The respondents consist of teachers who teach any entrepreneurship subject including small business management in all the eight polytechnics within the Northeast geopolitical sub-region of Nigeria.

4.3 Sampling Techniques and Sample Size Determination

We utilised a mix of probability and non-probability sampling techniques were utilised in selecting the sample respondents for the study. The probability stratified random sample was used in selecting the sample polytechnics. In stratified sampling, we first divide all elements of the population into strata, then we select independent respondent samples within each stratum. The selection of respondents from each stratum (polytechnic) utilised the snowball non-probability sampling technique. Programme coordinators are selected as the first set of respondents. The number of programme coordinators to be selected from each stratum (polytechnic) is limited by the number of programmes run in the polytechnic. The higher the number of programmes in any given polytechnic, the higher the number of respondent coordinators that were selected. These respondent coordinators were then requested to select staff who are teaching entrepreneurship and or small business courses or have taught same in the last five years. Finally, each programme coordinator is asked to suggest 2 teachers, presumably one each for entrepreneurship course and small business management course. In addition to programme coordinators as respondents and teachers of entrepreneurship and or small business management courses, one director of entrepreneurship development centre from each of the eight participating polytechnic is selected as respondent too.

As mentioned earlier, the total number of fully and interim-accredited programmes (both ND and NHD) available in the eight selected polytechnics was used as the basis in determining the proportionate size of respondents to select from each participating polytechnic. Table 4.1 shows the distribution of fully and interim accredited programmes in the eight polytechni2cs under study. Based on Table 4.1 therefore, the final sample size for this study is 241 as disaggregated in Table 4.2 according to participating polytechnics and respondent types.

Table 4.1: Distribution of Full and Interim Accredited Programmes
  Institutions Accreditation   HND   ND   Total
Interim Full
Federal Polytechnic Bali 6 – – 6 6
Federal Polytechnic Bauchi 13 38 27 24 51
Federal Polytechnic Damaturu 8 11 8 11 19
Federal Polytechnic Mubi 25 25 18 32 50
Mai Idris Alooma Polytechnic Geidam 3 – – 3 3
Ramat Polytechnic Maiduguri 15 22 15 22 37
Abubakar Tatari Ali Polytechnic Bauchi 3 5 – 8 8
Adamawa State Polytechnic Yola 16 3 3 16 19

Source:

Table 4.2: Distribution of Respondents by Institution and Types
  Institution   A   B   C Total Respondents
Federal Polytechnic Bali 6 1 5 12
Federal Polytechnic Bauchi 51 1 5 57
Federal Polytechnic Damaturu 19 1 5 25
Federal Polytechnic Mubi 50 1 5 56
Mai Idris Alooma Polytechnic Geidam 3 1 5 9
Ramat Polytechnic Maiduguri 37 1 5 43
Abubakar Tatari Ali Polytechnic Bauchi 8 1 5 14
Adamawa State Polytechnic Yola 19 1 5 25
Total 193 8 40 241

Key: A = Programme coordinators; B = Directors of entrepreneurship centres; C = Teachers of entrepreneurship and small business programmes

4.4 Distribution of Questionnaires and Response rate

A total of two hundred and forty-one (241) copies of the questionnaire were administered across the five states in eight polytechnics of the Northeast geopolitical sub-region covered by the study. The distribution of the questionnaire was based on the distribution of the participating polytechnics as well as the number of programmes run at both ND and HND levels in the polytechnics. Following the principles of snowballing, the programme coordinators at the various polytechnics were first chosen, and subsequently each one of them were to suggest a further five respondents each.

4.5 Data Collection Methods and Research Instrument

Several data collection methods considered for this study include participatory observation, in-depth interviews, postal surveys, telephone surveys and a well-structured questionnaire. A well-structured questionnaire and in-depth interviews were considered as the most appropriate data collection instruments for this study. However, it was not possible for the researcher to meet the 623 respondents considered for the study, the assistance of clients’ loan officers was sought. The service of research assistants was employed and they worked with the loan officers for maximum co-operation. The questionnaire ensured that questions posed to all respondents are uniformly phrased, so as to allow objective comparisons of results obtained. The questionnaire was structured to elicit information on the challenges of entrepreneurship education in Nigerian polytechnics. The questionnaire is a combination of closed and open-ended questions. The open-ended questions permitted the respondents to give detailed answers, most of them being actual figures. The questionnaire was divided into twelve sections.

4.6 Method of Data Analysis

The data collected for this study was analysed using both descriptive and analytical statistics. Descriptive statistics deals with those methods involving the collection, organisation, presentation, and characterization of a set of data in order to properly describe the various features of that set of data. Accordingly, the appropriate location and covariance of the variables under study were calculated and interpreted. Inferential statistics, on the other hand, deals with those methods that make possible the making of a decision concerning a population based only upon sample statistics.  Thus, the measures of location and covariance calculated will further be used in explaining, predicting, and generalising the purport of the results of the study.

5.0 Data Presentation

The results of this study and discuss same according to the serial presentation of the objectives of the study. This is informed by the logic in the listing of the objectives. The first objective sets the tune of the research by extracting what the respondents feel is or are the main ends of entrepreneurship education. The ends usually influence the choice of means by which such ends may be achieved. Thus, the subsequent results explain and deepen our understanding of the challenges facing entrepreneurship education in Nigeria. It should be noted that data on some of the objectives mentioned above were captured using Likert-like scales featuring SA=Strongly agree, A=Agree, D=Disagree, and SD=Strongly disagree as anchors for the scales.

5.1 Main Goals of Entrepreneurship Education Programmes

We utilized Interman’s (1992) typology of entrepreneurship to present our respondents with four main goals of entrepreneurship education: namely, entrepreneurship awareness, business creation, small business development, and training of trainers. Our respondents differ widely as to what is or are the main objectives of entrepreneurship education.

Table 5.1: Perception of Goals of Entrepreneurship Education
Main Goals of Entrepreneurship Education Degree of Agreement
SA A DA SD
F % F % F % F %
Awareness 101 41.90 93 38.92 40 16.60 7 2.90
Business creation 93 38.92 58 24.07 77 31.95 13 5.39
Bus. development 123 51.04 36 14.94 22 9.13 60 24.90
Training trainers 0 0.00 47 19.50 92 38.17 102 42.32

On the average, data in Table 5.1 shows that most of the academics/faculty responsible for implementation of entrepreneurship education in Nigerian polytechnics are of the view that the main objective of the programme is three-pronged: to elicit from students an awareness of entrepreneurship, and use such awareness to hopefully set up businesses of their own or assist in the development of existing business. Most of the respondents are, however, emphatic that the programme is not a train the trainer programme, meaning that the students are actually the end product of the programme with no expectations for spin-off effect such that future associates of the beneficiary students are not taken into account as likely second-level beneficiaries of the entrepreneurial competencies the students acquired.

When queried about the nature of the entrepreneurship education offered in their polytechnics, the respondents were divided along three dimensions (Table 5.1). Some were of the view that their main task is to prepare students to be able to create businesses after graduation. This we term entrepreneurship education for enterprise. Others were of the opinion that entrepreneurship education is meant to merely raise students’ awareness about the usefulness of entrepreneurship as a catalyst for self-reliance in the future. This we term entrepreneurship education about enterprise. Yet others averred that the programme is designed with existing entrepreneurs in mind to train them to be able to develop and grow their existing business ventures. This we term entrepreneurship education in enterprise.

Table 5.2: On the Nature of Entrepreneurship Education
Nature of Entrepreneurship Frequency %
Entrepreneurship education about enterprise 186 77.18
Entrepreneurship education for enterprise 50 20.75
Entrepreneurship education in enterprise 5 2.07

Table 5.2, however, shows that most of the teachers and faculty (77.18%) responsible for implementing the programme in the polytechnics firmly believe that entrepreneurship education is all about enterprise, just to arose students’ awareness about entrepreneurship as a possible career option. This inclination has important consequence on the methods and strategies they employ in teaching the entrepreneurial courses assigned to them.

5.2 Learning Objectives of Entrepreneurship Education

To determine what learners are expected to ultimately take away as a result of taking an entrepreneurship course, we use Johannsson’s (1991) schema to probe what our respondents’ views concerning the learning objectives they seek to achieve in teaching entrepreneurship to their students. Learning objectives are what students will be able to do on completion of any given entrepreneurial programme. To determine this important objective with respect to entrepreneurship courses taught in our participating polytechnics, we accordingly asked our respondents to indicate their level agreement with respect to the five dimensions of Johannsson’s (1991) entrepreneurial learning objectives.

The data in Table 5.3 makes it very clear that teaching staff handling entrepreneurship courses are greatly influenced by their conception of the overarching goals of entrepreneurship education. It has been shown in Table 5.3 that most of the teachers of entrepreneurship agree that the most important objective of entrepreneurship education is to raise students’ awareness of the importance of entrepreneurship. This may explain why over half of them (69.30%) strongly agree/agree that the most important learning objective of the entire entrepreneurship education programme is to develop in participant an appreciation of the why of entrepreneurship is important in the overall programmes they study.

Table 5.3: Learning Objectives of Entrepreneurship Education
Entrepreneurship Learning Objectives Degree of Agreement
SA A DA SD
F % F % F % F %
Develop the know why 89 36.93 78 32.37 52 21.58 22 9.13
Acquire the know how 59 24.48 59 24.48 62 25.73 61 25.31
Gain the know who 50 20.75 50 20.75 72 29.88 70 29.05
Master the know when 49 20.33 51 21.16 73 30.29 69 28.63
Attain the know what 45 18.67 49 20.33 79 32.78 69 28.63

5.6 Teaching Methods and Strategies

We investigated the teaching methods and strategies teachers used in delivering to students the objectives the entrepreneurship courses they handle. Table 5.6 below shows the distribution of our respondents with regards to the teaching methods they most frequently use. Respondents were informed that they can select multiple methods provided they use them frequently in teaching entrepreneurship courses.

Table 5.4: Distribution of Respondents by Use of Teaching Method
  Teaching Methods Frequency of Use
VF F S R N
F % F % F % F % F %
Case study 80 33.20 61 25.31 50 20.75 30 12.45 20 8.30
Business plan 85 35.27 75 31.12 10 4.15 55 22.82 16 6.64
Lectures 125 51.87 105 43.57 11 4.56 0 0.00 0 0.00
Entrepreneurs 18 7.47 11 4.56 20 8.30 91 37.76 101 41.91
Feasibility 0 0.00 0 0.00 11 4.56 125 51.87 105 43.57
Site visit 0 0.00 0 0.00 11 4.56 125 51.87 105 43.57
Handouts 120 49.79 105 43.57 11 4.56 3 1.24 2 0.83
SIWES 241 100 0 0.00 0 0.00 0 0.00 0 0.00
Project 0 0.00 0 0.00 0 0.00 0 0.00 241 100
Simulation 0 0.00 0 0.00 0 0.00 0 0.00 241 100
Discussions 18 7.47 12 4.98 18 7.47 93 38.59 100 41.49
EDCs 40 16.60 32 13.28 40 16.60 65 26.97 64 26.56

VF= Very frequent; F=Frequent; S=Sometimes; R=Rarely; N=Never; EDCs=Entrepreneurship development centres.

We discover that most of the respondents utilize the lecture method to the utter neglect of other approaches universally deemed more appropriate to entrepreneurship education. Indeed, the traditional forms of teaching such as lectures and course notes (popularly called handouts) are quite inappropriate with respect to the development of psychomotor and affective competences critical to the emergence of entrepreneurs and entrepreneurship culture in the society. As shown in Table 5.6 above, the dominant teaching methods used by most of our respondents are lectures and course notes (handouts), which may or may not be delivered in a manner designed to stimulate entrepreneurial behaviour or develop entrepreneurial skills and attributes in the students. These methods approach are anti-entrepreneurial modes of teaching because of their emphasis on rational/analytical analysis (cognitive) rather than intuitive decision-making and creative experiment. We noted that case studies and business plan preparation are used with significant frequency. In case studies, students discuss a fictional or factual narrative that illustrates specific concepts. A large number of entrepreneurship-related teaching cases are available, and new ones can be developed or adapted quickly. However, lack of sufficient local content coverage is a common complaint against cases, but if the instructional goal is to develop thinking and ability to apply content knowledge to new problems, this should not be a significant weakness.

In general, the most popular teaching methods in entrepreneurship education are creation of lectures, business plans, and case studies in that order of frequency of use. If the objective of the education is to increase the understanding of what entrepreneurship is about, the most effective way to accomplish the objective is to provide information through public channels such as lectures. These methods are effective in terms of sending the relevant information to the target student population in a relative short time period. If the objective is to equip individuals with entrepreneurial skills, which are applicable directly to work, the lecture method is the most inappropriate one to employ. In such case, the best method is to provide education and training that enable individuals to involve directly in the entrepreneurial process, such as SIWES. Lastly, if the objective of the education is to prepare individuals to act as entrepreneurs, the most effective technique is to facilitate experiments by trying entrepreneurship out in a controlled environment, for instance through business simulation or role playing.

5.7 Methods for Assessing Students’ Performance

Analysis of the how students’ performance in the entrepreneurship courses were assessed also revealed further challenges facing entrepreneurship education in Nigerian polytechnics. Information in Table 5.7 shows that most of the teachers of entrepreneurship courses use the same assessment method in evaluating students’ performance in their course, with almost all of them using paper-based examination in the form of course work and course test, and just a negligible number of them (4.56%) using some form of practical.

Table 5.5: Respondents’ Use of Assessment Methods
    Assessment system Use/Non-Use
Yes No
Frequency % Frequency %
Course Work (Examination) 241 100 0 0.00
Course Test 241 100 0 0.00
Practical 11 4.56 230 95.44

Table 5.6: Allotted Marks in Entrepreneurship Courses (Standard)
Distribution ND (%) HND (%)
Course work (Examination) 75 40
Course test 25 20
Practical 25 40
Other – –
Total 100 100

Source: ND/HND Business Administration and Management Curriculum and Course Specifications, 2004

Table 5.8 shows that at the ND level, examinations and tests take 75% of the marks, with only 25% reserved for practical (which include projects, business plans, site visits, etc.). this is the standard as contained in the Curriculum and Course Specifications manual. This distribution of marks is heavily skewed towards cognitive rather than affective and psychomotor competences crucial to gaining entrepreneurial education. Similar scenario obtains for the HND programme, with its practical content allotted 15% more than the ND practical allotment. However, our interviews with a number of programme coordinators reveal that the actual marks allocation specified in the official Curriculum and Course Specifications manual was not actually followed. An even less action-oriented assessment model (see Table 5.9) that totally discounts practical was followed.

Table 5.7: Allotted Marks in Entrepreneurship Courses (Actual)
Distribution ND (%) HND (%)
Course work (Examination) 60 60
Course test 40 40
Practical – –
Other – –
Total 100 100

Examinations and tests measure cognitive abilities rather than practical know how with regards to setting up and running businesses. The assessment methods used are veritable reinforcement for learning by rote (a system where students lean by memorization and repetition) in contradistinction to active learning where students’ overall faculties are stimulated and set upon the road to lifelong learning. The dominant assessment methodologies followed in the polytechnics studied are therefore antithetical to the core reasons behind engrafting the entrepreneurship courses onto polytechnics programmes as a means to engender enterprise development and its attendant chain effects. The expectation that participation in the entrepreneurship courses to be the catalyst for future engagement in entrepreneurial activities is therefore forlorn.

5.8 Appropriateness of the Assessment Methods

When asked about the appropriateness of the assessment methods they used in grading students’ performances in entrepreneurship courses, the respondents were divided. Table 5.10 shows the distribution of our respondents with regards to their perception of the appropriateness of the assessment method they employ. Nearly have of the respondents agree to the inappropriateness of tests and examinations as the only evaluation method used in gauging students’ performances in entrepreneurship courses. This is in spite of the fact that tests and examinations are the methods they employ. When some of the respondents in this category were probed in interviews why they still use tests and examinations as assessment yardstick knowing that it is not appropriate, they reported following policy handed down to them by their respective Academic Boards.

The respondents who claim appropriateness of tests and examinations as assessment methods explain via interviews that most of them see entrepreneurship education as part and parcel of the social sciences, and that they merely use the most common assessment yardstick in the social sciences. Further, they also point to the official stand stipulating that students be assessed on the basis of 60% final examinations and 40% tests.

Table 5.8: Appropriateness of Tests and Examinations as Assessment Methods in Entrepreneurship Education
Level of Appropriateness Frequency %
Absolutely inappropriate 21 8.71
Inappropriate 70 29.04
Slightly inappropriate 18 7.47
Neutral 0 0.00
Slightly appropriate 22 9.13
Appropriate 30 12.45
Absolutely appropriate 80 33.20
Total 241 100

We have observed that many teachers are willing to experiment and assess students’ performance in more entrepreneurial ways, but this often conflicts with the norms of the Polytechnics and what constitutes quality instruction. It should be noted that the primary purpose of assessment in entrepreneurship education is to inform teaching and improve learning, not to sort and select students or to justify a grade. This maxim, however, runs counter to the ongoing practices in the polytechnics studied, where assessment is conducted primarily to sort students into grades based on their individual performances in the written examinations administered on them. This situation notwithstanding, analysis of the assessment methods should proceed based on the fundamental characteristics of effective assessment explained below.

  • It takes place over a period of time and is continuous. Learning is assessed regularly
  • and the records of learners’ progress are updated throughout the year.
  • Assessment supports the growth and development of learners. Learners become active participants in learning and assessment, understand the criteria that are used for assessment activities, are involved in self-evaluation, set individual targets for themselves, reflect on their learning and thereby experience improved self-esteem.
  • Assessment provides feedback from learning to teaching. Feedback is a crucial element in formative assessment. Methods of feedback include appropriate questioning, focusing the teacher’s oral and written comments on what was intended to be achieved by an assessment activity, and encouragement to a learner.
  • It allows for integrated assessment. This may include assessing a number of related learning outcomes within a single activity and combining a number of different assessment methods. Competence in particular learning outcomes can be demonstrated in many different ways. Thus, a variety of assessment methods and opportunities must be provided by means of which learners can demonstrate their ability.
  • Assessment uses strategies that cater for a variety of learner needs (e.g. language, physical, psychological, emotional and cultural). Continuous assessment allows teachers to be sensitive to learners with special educational needs and to overcome barriers in learning through flexible approaches. In any group of learners, there are different rates and styles of learning. All learners do not need to be assessed at the same time and in the same away.
  • It allows for summative assessment. The accumulation of the results of continuous assessment activities provides an overall picture of a learner’s progress at a given time. Summative assessment needs to be planned carefully from the beginning of the year so as to include a variety of assessment strategies, such as exercises, tasks, projects, and school and class tests, which will provide learners with a range of opportunities to show what they have learnt and how they have grown in their learning.

5.9 Factors Affecting Effective Teaching of Entrepreneurship

A number of factors have been identified constraining the effective teaching of entrepreneurship courses in the polytechnics studied. These include: large class size, inadequate funding, poor mindset of students toward entrepreneurship, lack of well-equipped entrepreneurial development centres, lack of training and instructional materials, inadequate power supply, inadequate number of qualified teachers with academic and industry experience, and inadequate provision for practical work. This list is by no means exhaustive; there are others, especially relating to the overall management of the polytechnics as well as the prevailing culture that determines the quality of relationships among staff and between staff and students. However, we restrict our analysis to problems that directly link with the teaching of the entrepreneurship courses. Table 5.11 details the staff perception on these problems. From Table 5.11, it could be seen that the problem that receive the most overwhelming agreement from teachers surveyed (97%) as hindering teaching of entrepreneurship courses is infrastructural: power supply. In a technical institution expected to acquaint students will skills in the operation of relevant machineries, the lack of power is indeed a big problem. Our follow interviews reveal that departments have to rely on small power generating sets to be able to conduct the most rudimentary teaching in the laboratories.

Table 5.9: Factors Militating Effective Teaching of Entrepreneurship
    Factors Level of Agreement
SD D NEU A SA
F % F % F % F % F %
1 11 4.56 26 10.79 0 0.00 68 28.22 136 56.43
2 43 17.84 22 9.13 103 42.74 20 8.30 53 21.99
3 16 6.64 21 8.71 14 5.81 60 24.90 130 53.94
4 12 4.98 12 4.98 7 2.90 111 46.06 99 41.08
5 89 36.93 98 40.66 15 6.22 30 12.45 9 3.73
6 5 2.07 2 0.83 0 0.00 104 43.15 130 53.94
7 89 36.93 99 41.08 1 0.41 42 17.43 10 4.15
8 10 4.15 16 6.64 0 0.00 69 28.63 146 60.58

SD= Strongly Disagree; D=Disagree; NEU=Neutral; A=Agree; SA=Strongly agree.

1 = Large class size; 2 = Inadequate funding; 3 = Poor mindset of students toward entrepreneurship; 4 = Lack of well-equipped entrepreneurial development centres; 5 = Lack of training/instructional materials; 6 = Epileptic power supply; 7 = Inadequate qualified manpower; 8 = Inadequate provision for practical work.

However, the most disturbing problem is the lukewarm attitude of students to entrepreneurship education. Staff interviewed report that most of the students are only interested in getting marks and not the knowledge and skills they stand to acquire by taking entrepreneurship courses. In fact, had it not been compulsory for all students to take the course, some would have gladly refused the classes in entrepreneurship. This problem has to do more with the “certificate mentality” that bedevils the Nigerian economy where students suffer to undergo studies ostensibly to acquire certificates as tickets to gain employment (most in the public service). This poor student mindset now gets compounded by large class which is not ideal for teaching entrepreneurship courses as well as poor instructional infrastructure and consumable resources.

5.10 Summary

The results of this study have unearthed a number of dysfunctions with the overall programme structure of entrepreneurship education in Nigerian polytechnics. First, the perceptions of teachers taking entrepreneurship courses is at variance with the generally agreed focus of entrepreneurial education, which is to equip the educates with business, financial, and social skills and motivation necessary in the make-up of entrepreneurs. Thus, teachers deliver to students only theoretical knowledge about entrepreneurship in a get-to-know fashion rather than plan the course’s activities to deliver true entrepreneurial experience. This perception is further strengthened by housing entrepreneurship courses in schools/departments of business and thus supporting the mistaken notion common among both teachers and students that entrepreneurship courses are actually meant for business students only and have not much relevance to those who are training in the engineering and sciences programmes.

A more worrying finding is that most of the teachers almost exclusively rely on the lecture mode and tests/examinations in carrying out teaching and students’ assessments respectively. This approach fails to develop the affective and psychomotor competences crucial to the development of the entrepreneurial spirit in students. These problems have their genesis in the curricula and course specifications handed down by the NBTE to polytechnics to implement which place greater emphasis on the cognitive aspects of the entrepreneurship courses. This problem will have been mitigated somewhat where the teachers have industry experience to draw upon in teaching the subjects, but unfortunately, most of the teachers not only lack this crucial characteristic but also fail to avail the use of practicing entrepreneurs to complement the entrepreneurial experience provided to students.

Other major factors militating against the effective delivery of functional entrepreneurial experience to students include the non-use of entrepreneurship development centers in teaching and learning of entrepreneurship, lack of adequate funding, lackluster commitment to the entrepreneurship project by almost all stakeholders and the non-alignment of the entrepreneurship course offerings with the requirements and focus of individual programmes.

6.0 Conclusions

In view of the findings of this study as supported by theoretical explanations, we conclude that the conception, development, and implementation of entrepreneurship education in Nigerian polytechnics through the engrafting window are not in tandem with the dictates of good thinking and systemic planning, and therefore may not produce the intended impact of producing a corps of entrepreneurs upon whose activities some of the social and economic problems of Nigeria will find satisfaction.

7.0 Recommendations

This section suggests recommendations for practical implementation by the Nigerian polytechnics and the regulatory authorities in an effort to improve entrepreneurship education mechanism in the country.

7.1 Entrepreneurship Programmes

Entrepreneurship courses should be made as a compulsory subject and integrated in all programmes polytechnics offer in the country. Currently, not all programmes have the mandatory entrepreneurship development programme. The entrepreneurial courses should be tailor-made to fit with the nature and level of the various programmes available in the polytechnics. Further, the programmes should feature entrepreneurial knowledge and skills, such as business planning, entrepreneurial finance, creativity and innovation, marketing and field projects. The courses could involve innovative co-curricular programmes, outside the classrooms, focus on students live entrepreneurial programmes, as a comprehensive venture accelerator of student- run entrepreneurial organizations and forums, and entrepreneurial ecosystems as in the educational institutions in the emerging countries.

7.2 Entrepreneurship Curricula

Entrepreneurship curricula should consider the features to start up business ventures and include teaching of the fundamentals needed for those employment skills. The teaching of core structures should include: critical thinking, experiential learning methods, visits to industries and business areas, inviting guest speakers who are successful entrepreneurs. Though these skills are not sufficient enough to make successful entrepreneurs they are able to prepare the polytechnic students for involvement in entrepreneurship careers in future. The Nigerian polytechnics will benefit if they have collaboration with partnership programmes, or consulting relationships from world-class institutes, such as Massachusetts Institute of Technology, Stanford University, which have a leading brand in entrepreneurship education. Through these partnership programmes the polytechnics will gain the support for the development and management of the entrepreneurship programmes, the infrastructure of centres set up for entrepreneurship courses, and advice on the management and operations of the programmes. The groups of students will jointly develop state of art curricula, perform research on entrepreneurial development, and initiate collaborative projects with international partners.

7.3 Teaching and Learning Methods

Entrepreneurship is a process of identifying an opportunity, understanding and acquiring resource requirements, planning and implementing. The teaching of entrepreneurship courses should not be undertaken in mere classroom settings, but rather as a process which involves start-up businesses, entrepreneurial activities, design-based learning and reflective practices. Starting businesses as part of coursework by the students in the first year of their courses is a way of encouraging them for the entrepreneurial process, as the focus is on entrepreneurship recognition, resource planning, team development, holistic thinking and value creation. Incorporating real-world practice of business creation into the entrepreneurship courses will assist the students in developing a level of insight and confidence from practicing methods for navigating unknown territories, experience success and failure, gain knowledge and importance of leadership, managing human resources, decision-making and effective communication skills.

Hands on learning approaches including business plan competitions and experimental games in the entrepreneurial curricula make it more interesting. The purpose of this method of teaching is to compact business creation process, in order to map the creation of organizational culture through the way the student, as an entrepreneur, uses his or her time and money in relation to the business, employees and the community.

Entrepreneurship courses are better served by design-based learning and teaching. The design-based learning method equips skills in observation, synthesis, critical thinking, searching alternatives, feedback, problem-solving and value creation. Teaching entrepreneurship through a design-based approach can help the students to identify and act on unique venture opportunities, using a tool-kit of observations, fieldwork and understanding value creation across multiple stakeholder groups. Entrepreneurship is a continuous cycle of action learning, testing, experimenting and developing students as reflective entrepreneurs, and the focus should be on reflection-on practice (doing, learning, thinking as a process) and reflection-in-practice (doing, learning, thinking as a behaviour), as part of a pedagogy portfolio. It should not involve teaching entrepreneurship but teaching how to navigate entrepreneurship.

Entrepreneurship education is dependent on teachers, and, if teachers lack experience and confidence in their ability to teach actionable entrepreneurship, even the well-founded and good-intentioned programmes will quickly become irrelevant. It is critical to develop effective training programmes for teachers. Effectively teaching and learning entrepreneurship requires a less traditional approach. While many teachers are willing to experiment and teach in more entrepreneurial ways, this often conflicts with the norms of academic institutions and what constitutes quality instruction. A related challenge is how teacher training can be delivered in a way that is efficient and ongoing. There are opportunities for new ways of training and updating the skills and competencies of teachers so that they can teach in different settings, on different platforms, and to different audiences.

7.4 Attitude of Students towards Entrepreneurship

Students enrolled for entrepreneurship courses require a different learning approach from the other courses. Entrepreneurship students are considered as proactive, creative and innovative learners, and should possess exceptional personality traits and skills, directed to entrepreneurship. Considering this, the Nigerian polytechnics should design a curriculum that would suit to entrepreneurial learning purpose, and change their conventional teaching methods to more on hands-on learning approach and experiential learning. Entrepreneurship students should have access to unconventional teaching methods such as: internships, entrepreneurial simulations and activities, spin-offs, business plan competitions and focus on more technology-related business activities. They should be exposed to more on analytical, creative thinking, problem-solving, innovative, decision-making and effective communication skills, in their entrepreneurial programs and activities to motivate them towards entrepreneurship. A student-centered learning approach, instead of a teacher-centered learning approach is more suited to entrepreneurship students.

7.5 Establishment of Entrepreneurship Departments

Entrepreneurship education in the polytechnics studied is carried out in the form of 2 or 3 contact hour subjects in some of the programmes. There is no entrepreneurship programme run at the ND or HND levels. To provide the necessary focus, concentration and impact, the NBTE in collaboration with practicing entrepreneurs and academics and drawing upon best practices around the world, should design entrepreneurship programmes to be run at both ND and HND levels and housed in a Department of Entrepreneurship.

7.6 Establishing Links with External Bodies

The polytechnics should have strong links with industries, where they could send the students for internship programmes or gain practical experiences in entrepreneurship the present industrial attachment need be enhance and make very effective for the benefit of the students. With recent adopting entrepreneurship as compulsory for all polytechnic’s students, is crucial and logical for them to learn and apply the practical knowledge during their working time. These initiatives are vital and beneficial to the students in acquiring the entrepreneurial knowledge and skills for operating in the business ventures.

Many entrepreneurship programmes require a greater degree of resources than conventional classroom instruction. Regardless of core programme funding sources, there are many opportunities to secure supplemental resources in order to strengthen and expand programmatic elements. Private foundations, NGOs, other governmental entities, individual volunteers, Chambers of Commerce, etc. all offer potential. The evidence is mounting that entrepreneurship education funding does have a return on investment. Entrepreneurship education is a prime opportunity to test the development of public-private partnerships.

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Influence of Entrepreneurial Competencies on Performance of Small Business in North-eastern Nigeria

INFLUENCE OF ENTREPRENEURIAL COMPETENCIES ON PERFORMANCE OF SMALL BUSINESS IN NORTH-EASTERN NIGERIA

By

Dr. Yunusa Mohammed Kaigama

 School of Business Studies

Federal Polytechnic Damaturu Yobe State

Tertiary Education Trust Fund (TET Fund) Sponsored Study

Abstract

This study was aimed at examining the influence of entrepreneurial competencies on the performance of small business by developing causal model using data obtained from small business in north-eastern Nigeria. Even though many studies have been conducted on small business performance, but specific studies on the relationship between entrepreneurial competencies and performance of small business are limited. Therefore, drawing perspectives from resource-based theory, this study was designed to examine the aforementioned relationship and to help to increase further understanding on how entrepreneurial competencies are buffering small business performance. A quantitative research approach was employed with aid of structural questioners to collect primary data from 307 small business owners/managers. Partial least squares (PLS) algorithm and bootstrap were employed to test the developed hypotheses. The outcomes indicate that entrepreneurial competence plays an influential role in influencing small business performance. Specifically, five out of the seven competencies areas that is relationship competencies; conceptual competencies; organizing competencies; strategic competencies; commitment competencies, and learning competencies; positively influence small business performance. On the other hand, the results suggested negative influence of opportunity competencies and commitment competencies. This study provides insights regarding the importance of entrepreneurial competencies on small business performance. Finally, the competency measurement of this study provides a unique scope for designing such training and development programs for owners/managers.

Keywords: Entrepreneurs Competencies; Small Business Performance; Spatial Least Square Structural Equation (PLS)

1.0       Background of the Research

Scholars and policy makers in both emerging and advanced economies have recognized the vital role-played and still being playing by small business in the development process of modern economies (Folorunso, Abodunde, and Kareem, 2015). Unfortunately, a well-known challenge with small businesses is their poor performance that most a time lead to high exit rate (Abeer, 2014). This is particularly true, because empirical evidence established that in most developing economies small businesses performances are poor (Ahamad, Rani and Kassim, 2011).

Among the mentioned challenges attributed to the low performance rate among small business are, absence of requisite capital and poor entrepreneurial competencies (SMEDAN.2012). In addition, there is always a level of risk involved in managing small business. However, well they may be performing, poor performance will prevail particularly where the owners/managers lack the requisite entrepreneurial competencies. Although, the owners/managers may, without any fault, sink his fortune and in some extent the entire business.  Unfortunately, till date effective approach to mitigate small business poor performance and stimulate start-ups is lacking and not forthcoming (Ahamad et al., 2011). This in itself demonstrates the crucial need for the present research.

The growing drive toward efficient performance of small business, that is aim at influence entrepreneurial activities and enhancing economic development are yet to be attained.  This effort has been negatively hindered by poor performance among small business especially in developing economies (Ahamad et al., 2011). 

Therefore, in an attempt to advance empirical explanation this study developed a model to examine the relationship between entrepreneurial competencies and small business performance in the context of six North-Eastern Nigerian states.  The primary aim is to come up with a model that can effectively mitigate and influence performance among small business. Small business performance is conceptually defined as firm’s ability to attain pre-determined results, this is measured against its intended outputs and encompasses outcomes related to financial and market performance that ultimately, guarantee sustainable performance (Fraser et al., 2015).  Thus, a compulsory exit, after a specific time in business is due to absence of adequate capital or opportunity to continue in the venture.  This exit is related with business poor performance (Lampadarios, 2016).

It is therefore imperative to understand how and what influence small business performance particularly with regards to the level of entrepreneurial competencies among small business owners/managers. According to Abiola (2011), entrepreneurial competencies are important predictors of small business performance. The researchers observed that these factors influence owners/managers ability to mitigate failure risk in the long run and are positively related with small business efficient performance.

Furthermore, the key themes in the mainstream literature on the challenges and causes of poor performance of small business suggested that a vast number of new small businesses become unproductive within initial five years of operation (Zimmerrer et al., 2008; Ahmad et al., 2011).  Studies have linked this low performance rate with the low level of entrepreneurial competencies among small businesses as the crucial threats to small business as a competitive enterprise (Lampadarios, 2016).

Empirical evidence, specifically concerned with small business performance suggested that absence and ineffective entrepreneur competencies reduces the profitability and long-term performance of small business (Man, Lau, and Chan, 2002; Man et al., 2002; Kuwahara, Yoshino, Sagara,). Thus, this affects the crucial role of owners/managers of mitigating poor performance risk in the small business sector.  A competent and skilled entrepreneur or operator is prudent in making financial decision and effective in overcoming the intimidations of external environmental factors (Rahhman et al., 2011). Consequently, due to poor entrepreneurial competencies among small businesses owners/managers, which resulted to poor handling of financial matters and revenue (Hsu et al., 2014).

Regrettably, there is a significant lack of up-to-date evidence to account on the scale and basic features of the small business sub-sector, especially in relation to poor performance issues (Babandi, 2017). Thus, authority and policy makers are struggling to confine the challenges and intimidations of small business and emphasized to improve the prospective actions towards betterment of small business infrastructure in Nigeria (Kanayo, Jumare, and Nancy, 2013). Therefore, due to intensive gap between practice and theory; the small business poor performance is sloping towards edge that demand extensive, constant research work by the entrepreneur and researchers to enhance small business development for effective economic growth (Oke and Aluko, 2015).

Therefore, for effective performance of small businesses and in order to move the field in that direction, this study adopted conceptualized multidimensional performance variables  by drawing a perspective from resource-based view (RBV) and contingency theory (CT) to examine the relationship between entrepreneurial competencies and small business performance in Nigerian context.  The adoption of RBV and CT is a logical choice in this area due to its emphasis on explaining how firms use strategic resources to improve firm performance.  Small businesses are at a critical point today where the interaction between entrepreneurial competencies, and long-term performance are no longer seen as externalities to the firm, but as being inextricably tied (Hart and Dowell, 2010).      

1.1 Overview of Small Business in Nigeria

Nigerian is a developing country endowed with abundant human and material resources.  However, these resources are not put to proper use. Inflation and economic recession are the order of the day as prices continues to go up and standard of living is on the sloping-edge.  The current global down turn, which was further triggered by the advent of Covid-19, resulted in fall on price of crude oil globally. This has resulted to shift of emphasis by the policy makers in the country to industrial sector where small businesses are crucial drivers. 

This is particularly true if one acknowledge the vital role played and still being played by small business in the country in the areas of: employment creation, provision of manufacturing input, developing rural technology, attracting foreign exchange earnings; and generally supporting the entire economy and social service development in the country (Folorunso et al., 2015). Although, recent years, witnessed growing number of studies to find the signals conveyed by small business performance on national economic development (Moruff et al., 2017).  Studies have highlighted the important contributions of small business in the national economic development and its innovative roles.  Small business sub-sector contributes nearly 75% share in all enterprise of Nigeria, providing employment for over 43.6 million people and contributing about 46.5% share in annual GDP of the country (SMEDAN, 2013).  In fact, like other developing economies, of the Nigeria economy is significantly based on the operational capacity of small enterprises.

According to Omolomo (2015) the role of small business cannot be underestimated due to its significant contribution toward poverty reduction, creation of employment opportunities, growth and development of national economy, income re-distribution, wealth creation and improved standard of living of the poor who are the vast majority of Nigerian population. Due to socioeconomic importance of small business, overcoming these problems is a major challenge for all types of economies, researchers and policy makers.  With this development in mind and the heated identified challenges, this study is articulated to examine the influence of entrepreneurial competencies on performance small business in Nigeria.

1.3       Statement of the Research Problem

Researchers and policy makers in both developing and developed countries have acknowledged the vital role played by small business in the development process of modern economies (Abeh, 2017). Despite the significant role played by small businesses, many businesses remain stagnant in growth stages for many years, and several more have not been able to attain maturity, which has led to their failure (Byrne and Shepherd, 2015). Globally, 50% of small businesses are unable to maintain their business operations after the first 5 years of initial setup because of poor entrepreneurial competencies (Singh et al., 2015).  In fact, in most developing economies the main challenges of small businesses are that of poor performance that resulted to high failure rate (Ossai, 2017).

Prior empirical evidence examined the post entrance of new small business in seven (7) OECD countries established 20-40% of start-ups small business failed within the initial two years and 40-50% carry on further (Bartelsman et al., 2005).  According to Ahmad et al. (2011), in Malaysia approximately 80% to 90% of small businesses fail within 5-10 year.  Additional evidence on the scale and nature of failure rate in Nigerian small business is provided by Ishola et al. (2013) studies who established that only 20% of newly established small business survive up to the fifth year (i.e., an 80% failure rate), and the trend worsens to 15% fifth-year survival rate in just two years (SMEDAN, 2013).  Even though many studies have been conducted on small business performance, specific studies to account for the causes poor performance of small business poor performance that resulted in high failure rate from developing economies perspectives is lacking.

Scanning through the prevailing literatures, poor entrepreneurial competencies are the most mentioned problems that account small business poor performance (Ossai, 2017). Unfortunately, prior researches attempt to mitigate the aforementioned problems lacks an appropriate and systematic approach.  This led to the prevalence of inconclusive and often contradictory findings with huge theoretical and empirical gaps that may have practical and policy implications (Abiola, 2011; Mohd and Syamsuriana, 2013).  Hence, the ability to determine effective performance of small business poses a greater challenge to researchers, policy makers and owners/managers.

Undoubtedly, the above highlighted situation has stressed the need and significance of the present study, of investigating the relationship between entrepreneurial competencies, and small business performance. This is aim at coming up with a performance model within the context of small business particularly from prospective of developing economies like Nigeria.

This is particularly significant because till date only limited studies have been carried out to examine this in relation to the aforementioned issues and small business performance and to advance an appropriate framework that can be applicable to emerging economies settings.  Therefore, for this and many reasons the researcher argued and emphasised the need to fill this research gap to understand how entrepreneurial competencies can influence small business performance.  Thus, to effectively accomplish this, perspectives were drawn from RBV and CT with aims of bridging the observed research gap and advancing a model that can effectively mitigate poor performance of small business and influence their long-term survival rate.

This is justified, because empirical evidence on the relationship between entrepreneurial competencies and small business performance is lacking and have not been intensively tested in Northeast, and where it was tested the findings suggested contradictory and inconclusive results (Abiola, 2011; Mohd and Syamsuriana, 2013). Such inconclusive and conflicting evidence have contradictory and conflicting consequences for theory, practice as well as policy making therefore, need for further intensive research, to advance the theoretical conception in that direction.  As well as, strengthen small business profitability to improve their chances of long-term survival, and contribute to industrial development, job creation and economic prosperity of the country.  Thus, filling the observed research gap, by further extending the RBV and CT logics to explain how the proposed research framework used entrepreneurial competencies in validating the aforementioned conceptualization and gain deep understanding of small business performance in Nigerian context.

1.4       Objectives of the Research

            The problem associated with small business poor performance as presently obtainable in Nigeria’s small business sub-sector especially in the Northeast Geo-Political Zone underpins this research study. Accordingly, the general purpose of this study is to evaluate the influence of entrepreneurial competencies on performance of small business and expected outcomes of improve small business performance with a view to developing a more outcome-focused alternative that helps generate the critical mass of entrepreneurial activities upon whose subsequent socio-economic development of the region in particular and the nation in general rests. Specifically, the study seeks to attain the following objectives:

  1. To examine the relationship between opportunity competency and small business performance
  2. To examine the relationship between relationship competency and small business performance
  3. To examine the relationship between conceptual competency and small business performance
  4. To examine the relationship between Organizing competency and small business performance.
  5. To examine the relationship between strategic competency and small business performance.
  6. To examine the relationship between commitment competency and small business performance
  7. To examine the relationship between learning competencies and small business performance.

2.0 Literature Review

Reviewed literature has highlighted the roles of entrepreneurs for the business performance of SMEs. Entrepreneur develops and grows businesses through innovation and creativity, either by introducing new line of products or services, or by improving the existing techniques of production or service (Gerli et al., 2011). Therefore, the competencies of entrepreneurs make a business more effective and attain sustainable competitive advantage (Abdullah et al., 2017).  Entrepreneurial competencies are connected with the firm long-term performance and its competitiveness (Mitchelmore and Rowley, 2013), performance and success of the venture (Uchebulam et al., 2015). Empirical evidence demonstrated that entrepreneur’s psychological and behavioural, demographic characteristics, managerial and technical skills are the pre-requisite determinants for the survival and performance or failure of small businesses (Abdullah et al., 2017). It is therefore crucial to appreciate entrepreneurial competencies in the context of developing economies since the entrepreneurial competencies needed for firm performance in developing economies are different from those of in developed nations as well as that of small firm is also differ from big firm (Olowa and  Olowa, 2015) argued that entrepreneurial competencies differ according to economic contexts and ways at which competencies can be attained.  Therefore, present study argues that in Nigerian context, entrepreneurial competencies play a vital role in enhancing entrepreneurial activities which positively reflects on performance of small businesses.

2.1 Components of Entrepreneurial Competencies

The entrepreneurs have to play diverse roles that are more complicated than that of managers of the firm since their involvement in diverse function, management and entrepreneurial roles.  Such roles sometime are multitudinous and can be optimally accomplished through articulated behaviours (Davis et al., 2016).  Such behaviours are the key components of entrepreneurial features such as: knowledge, traits, beliefs, motives, values, social-network, self-image and skills (Abdullah et al., 2016; Mitchelmore and Rowley, 2013) that influences on the capability of the entrepreneurs to execute the activities of business in most strategic approach (Tingko and Wenyi, 2017).

However, in describing competencies in terms of knowledge, traits, beliefs, motives, values, social-network, self-image and skills possession, researchers have tried to classify these entrepreneurial features into strategic competency areas.  For example, Huck and McEwen (1991) established that management, planning and budgeting, and marketing are the three key competency areas for Jamaican entrepreneurs. On the other hand, Minet and Morris (2000) contend that adaptation is the core of entrepreneurial competency.  Chandler and Jansen (1992) argue that to perform efficiently in entrepreneurial role, strategic competencies such as, ability to recognize and opportunity taking advantage and effort for firm creativity, which demands the capacity to generate intense effort for long working hours are requisite. Baum et al. (2001) differentiate between particular competency and general competency.  Specific competency consists of industry skills and technical skills, while general competency includes organization skills and opportunity recognition skills.  Onwuchekwa et al. (2017) decompose entrepreneurial competency into four dimensions: management skills, industry skills, opportunity skills and technical skills. 

In a similar vein, Man et al. (2002) defined entrepreneurial competencies as higher-level characteristics encompassing personality traits, skills and knowledge, which can be seen as the aggregate capability of the entrepreneur to effectively accomplish a job.  Seven major competencies areas are classified in their study: (a) opportunity competencies, (b) relationship competencies (c) conceptual competencies (d) organizing competencies, (e) strategic competencies, (f) commitment competencies, and (g) learning competencies; these competencies areas are recognized in most literature and are categorized according to (Man et al., 2002).

Therefore, present research adopts the entrepreneurial competency components proposed by Man et al. (2002) to serve as independent variable that may effectively influence small business performance for several reasons.  Firstly, these components of entrepreneurial competency are not only applicable in entrepreneurial studies but also in other related fields, particularly, firm performance (Ala’a. 2016).  Secondly, the components are sufficient enough as it taps various entrepreneurial features such as: knowledge, traits, beliefs, motives, values, social-network, self-image and skills advanced by (Tingko and Wenyi, 2017) that may positively influence firm performance (Ahmad et al., 2010). Finally, because of its widely acceptability in developing economies.

2.2 Opportunity Competencies

Opportunity competencies is a unique competency area for the entrepreneur, for example, Li (2009) argued that “to see and act on opportunities” is a requisite for entrepreneurs to be successful and attain firm survival. Chandler and Jansen (1992) observe that one of the most significant entrepreneurial tasks is the capability to scan and identify and take advantage of opportunities within the operational environment.  This sets of competencies involves entrepreneurial activities in recognizing opportunities, actively seeking new opportunities, and developing the opportunities to enhance firm long-term survival (Adriana et al., 2014).

According to Man et al. (2002) opportunity competency refers to the ability to recognize the opportunities in the market through diverse mechanism.  Man et al. (2002) operationalized by measuring different behaviours such as identifying the services or products needed by the customers, perceiving unmet needs of the customers, looking for beneficial product and services for the customers, and availing the best opportunities.  De koning (2003) related the opportunity development with the entrepreneur’s capability to pursue, explore, develop and assess better existing opportunities in markets.  On the other hand, Allison, Chell, and Hayes, (2000) argued that main characteristics of entrepreneur is the ability to effectively perceive or identify the opportunities where non-entrepreneur cannot do so (Tingko and Wenyi, 2017).

2.3 Relationship Competencies

This group of competencies relates to person-to-person or individual-to-group based interactions, e.g., building a context of cooperation and trust, using contacts and connections, persuasive ability, communication and interpersonal skill (Man et al., 2002).  To successfully do so, the entrepreneur needs to possess competencies in relationship building, communication, persuasive and interpersonal abilities (Olowa Olowa, 2015). Bird (1995) described this relationship building activities as entrepreneurial bonding, which includes not only the creation of relationship, but also the restructuring of relationships as the company grows or a partnership is dissolved.  Evidence suggests that small firms in particular are critically dependent on their networks, because it is through these that they gain advice and support from professionals and experts such as lawyers, accountants, and consultants, government bodies, research and training institutes, and even suppliers and customers (Shehu and Mahmood, 2014).  Evidence suggested that relationships competency have positive influence small firm performance (Barazandeh, 2015).

2.4 Conceptual Competencies

According to Izquierdo et al. (2005) and Man et al. (2002) this area involves different conceptual abilities that the entrepreneurs reflect in their behaviours. Such as innovativeness, risk taking, decision skills, observing and understanding complex information.  Whereas according to Chandler and Jansen (1992) this competency reflects the mental capability to coordinate all the activities of the business (Syed et al., 2015). Man (2001) operationalized this area of competency by measuring the following behaviours: (1) taking suitable risk related with job (2) understanding the understanding of the observations and issues (3) translating the ideas and observation of business into the context of business (4) monitoring progress towards the achievement of objectives in risky actions (5) exploring new ideas (6) looking problems in new ways (7) and treating the new problems as opportunities.  Man (2001) identified that through factorial analysis this area of competency can be divided into innovative and analytical domains.

2.5 Organizing Competencies

The second group of competencies is similar to the managerial competencies suggested in the literature.  For instance, McClelland’s (1987) “efficiency orientation”, “concern for high quality of work”, and “monitoring” should be the required competencies in managing various functional areas in a firm so as to keep the firm operating efficiently. Wang et al. (2015) and Chandler and Jansen (1992) also suggested the importance of managerial roles of an entrepreneur in human competence.  In general, organizing competencies are similar to the managerial competencies identified in the literature (Shehnaz and Ramayah, 2015).  This group of competencies calls for the ability to lead, control, monitor, organize, and develop the external and internal resources towards the firm’s capabilities through the entrepreneur’s organizing competencies in different areas.

2.6 Strategic Competencies

According to Man et al. (2002) this competency is related with the establishing, evaluating and executing the strategies for the firm.  Man (2001) operationalized this area of competency by measuring the following behaviours: (1) knowing clearly the expected directions and the impact of changes on firm’s performance (2) giving priority to work that aligns the business goals only (3) redesigning the firm to achieve the goal in a better way (4) linking or associating the current actions with strategic goals (5) observing progress towards strategic goals (6) analysing results against strategic goals (7) establishing strategic actions by assessing cost and benefit (Man, 2001).  Hence, managing change as a component of strategic competence that can be associated with competitive success of all those firms operating in highly competitive environment.

2.7 Commitment Competencies

Successful entrepreneurs are often characterized as diligent people with a restless attitude in their work. In other words, they have a strong competency in totally committing, determining and dedicating, as well as taking proactive actions towards their responsibilities and duties (Tehseen and Ramayah. 2015).  This corresponds to the entrepreneurial role of the drive to see firm through to fruition applied by (Kabir et al., 2017). Another aspect of this competency area is the initiative or proactive orientation, which calls for the entrepreneurs taking actions before being asked or forced to by events (Hossein and Alireza, 2015).  To sum up, commitment competencies are those drive the entrepreneur to move ahead with the business.

2.8 Learning competencies

McClelland (1987) argued that entrepreneurship is about learning the requisite skills required to undertake the risk of starting a venture, adopting and executing effective strategies with entire strength, determination and desire required to attain business objectives of long-term survival. Mitrani et al. (1992) refer to learning competency as an essential distinctive feature of an entrepreneur, which is causally connected to efficient or superior performance at business or work.  This competency suggests the capability of the entrepreneurs to learn from diverse behaviours and conducts, maintain themselves up to date in the appropriate area, proactively learn, and then employ learned skills into practical business operation (Umeze  and Ohen, 2015).  In the present contemporary social era the new skills are learnt and disseminated quickly therefore, the entrepreneurs need to be sophisticated and dynamic in learning competency to stand the mentioned challenges and mitigate the risk of changing environment that might affect business negatively (Hossein and Alireza, 2015), entrepreneurs with adequate learning competency are more likely to manage business effectively. Learning competency is crucial for entrepreneurial performance because it supports the entrepreneurs to generate the skill and manage failure risks (Ward, 2004).

Additionally, in a business setting entrepreneur with high learning competency perform more effectively and proactively than others with less learning competency for such are less likely, to be motivated to manage business effusively and attain long-term survival. This competency indicates the ability of the entrepreneurs to learn from various ways and means, keep themselves up to date in the relevant field, learn proactively, and then apply learned knowledge and skills into practical activities (Syed et. al., 2014).  In the new modern social era the new knowledge is created and disseminated rapidly thus, the entrepreneurs require the learning competency to meet the demands of changing environment (Wolff et al., 2015). Learning is critical for entrepreneurial process because it helps the entrepreneurs to generate the knowledge and reduce risks and uncertainty (Nancy et al., 2016).  Stokes and Blackburn (2002) conducted a study regarding business failure experiences of the business owners and revealed that their three-quarters of the respondents had improved skills in the areas of personal management after experiencing business closure.

2.9 Entrepreneur Competencies and Small Business Performance

As observed by Man (2001) entrepreneurial skills and competency among small business operators strongly influence performance of their business. This in essence suggesting the influence of entrepreneurial competency development of small business and how it enhances firm performance (Lasar and Paul, 2015)

On the other hand, Tahseen et al. (2015) and Ahmad et al. (2011) argued that small business performance or growth are product of fundamental strategic features such as knowledge, generic innovation, skill, and motives put in practice by entrepreneur.  Thus, empirical evidence has established that skills are the pre-requisite for entrepreneurs’ accomplishment (Lazar and Paul, 2015).

Furthermore, Nuthall (2009) and Bakar et al. (2014) established that entrepreneurial competencies have been recognized as a particular collection of competencies appropriate to the operation of successful small business venture.  Hence entrepreneurship is often related with the performance and development of small and new venture, and in the perspective of entrepreneurship, competencies are specifically associated to the start and performance of a new business venture (Barazandeh, 2015).  It can effectively suggest that, there is common opinion from the literature reviewed on the roles entrepreneurial competencies possessed by entrepreneur in transform their firm, through application of diverse acknowledged and skills. Entrepreneurial competencies are necessary for effective small business operation and long-term performance (Abdullahi and Burcin, 2017).

Wickramaratne et al. (2014) examined small businesses success and established that competencies, personal characteristics among small business entrepreneurs, and managerial skills are key contributors for survival. Tehseen and Ramayah (2015) argued that competencies of the entrepreneur or operator are positively related with performance of small firm.  Likewise, internal locus control and need for achievement Personal characteristics of an entrepreneur contribute significantly to performance of small firm further observed by (Renko et al., 2015). Therefore, with above empirical evidence in mind we can argue, that entrepreneurial competencies can influence small business survival. Similarly, small business survival is influenced by the skill and the ability of the owner/manager. Appreciate the role of owner/manager gives a better insight about what competencies needed by entrepreneurs to ensure the survival of the business.

The decision of focusing on the influence of  entrepreneurial competencies on small business performance is because entrepreneurial competencies involved broader entrepreneurs attributes, such as, beliefs, knowledge, skills, abilities, personality, expertise and behavioural tendencies needed for small business performance (Ahmad et al., 2010). Analysis of entrepreneurial competencies shows that entrepreneurial competencies are deeply rooted in the entrepreneur’s background (traits, personality, attitudes) and that this could be acquired at work or through theoretical or practical learning (skills, knowledge, and experience).  Entrepreneurial competencies significantly relate with small business performance (Rey-Martí et al., 2015; Man et al., 2002). Ahmad et al. (2010) posit that entrepreneurial competencies are a predictor of small business performance in Malaysia, that its influence more strongly for stable business environment. 

Thus, entrepreneurial competencies of the owners/managers are universally regarded as one of the most powerful factors that have positive or negative impact on small business survival (Zoysa and Herath, 2007).

Therefore, owners/managers need to pay more attention on the developing their competencies to effectively influence small business performance. In situations where entrepreneurs are willing to exercise the willingness to equip themselves with requisite competencies, they possess the capability to mitigate small business failure risk, thus may lead to efficient performance. Research and practice associated with competencies are usually driven by aspirations to achieve firm efficient performance (Mitchelmore and Rowley, 2010).

3.0 Methodology

The data for this study were collected between September and November 2022, with the help of the Small business owners/managers in Yobe state using a structured questionnaire. G* power software was employed for sample size calculation with the aid of the following settings: f2 (effect size) = 0.10 (small), a = 0.05, the number of predictors = 7 and the power was set at 95%. Therefore, the required sample size was 307 to test the model. The researcher sent out cross-sectional survey questionnaire to approximately 421 small businesses located across Yobe state. The researcher collected the database with the help of SMEDAN. The researcher employed improved version of total design test method to improve the response rate. Therefore, 421 small businesses were targeted for data collection. As a requirement of study, the respondents were small business owners/mangers. It is equally significant to mention that the data collection approach is exceptional, considering the distinctive nature of socio-economic parlance of Yobe State and to mitigate against possible bias that may lead to poor response rate. The researcher was able to collect a total of 307 complete and usable responses, having an effective response rate of about 72%.

4.0 Analysis using Descriptive Statistics

The seven key items in the demographic profile of respondents were analysed using descriptive statistics.  The profile included a total of 307 respondents, out of which 266 (87%) were males and 41 (13 %) were females.  The outcomes suggested the percentage of male is much greater the females’ owners/managers this demonstrating the different on career orientation perceptions among male and female small business owners/managers (Refers table 4.1).  Whereas, the age group of respondents revealed that 143 (47 %) fell in the category of 20-30 years, which is the normal age; 31-40 (35%) fell in the category, similarly, category 41-51 and above 50 were 10% and 8% respectively.

The education levels accomplished by the sample respondents as demonstrated on (Table 4.1).  The outcomes show that 48% of the total respondents hold bachelor’s degree, which demonstrate that the small business owners/managers are among the educated group in the population. More significantly, the total frequency showed that 146 respondents are bachelor’s degree holder which was higher than any other (See Table 4.1).  Similarly, the educational qualifications shown that 106 (35%) had master’s degree, whereas 30 (9%) had Ph.D. while others are 25 (8%).  The level of education has been mentioned as a crucial factor for success in enhancing small business survival potentiality and mitigate failure risk to improve business profitability. 

With respect to working experience, it indicated that 61 (20%) have Less than 1 year working experience, while, 179 (58%) worked 1-5 years’ experience, whereas, 6-10 years working experience are 41 (13%), similarly, 26 (9%) represent 10 years and above working experience.  These outcomes are in line with results from preceding studies which argued that small business which survive beyond five years. These results are consistent with findings from previous studies which suggest that microenterprises which survive beyond five years maintain their pre-inception features but do hardly expand (Abiola, 2011).

The position distribution of the business owners and managers suggested that 67 (22%) managers, while owners represent the significant percentage of (78%) 240. With regards to business type, 61 (14%) are sole proprietorship while 201 (65%) are partnership, whereas, limited liability company showed 45 (16%). Finally, sector which represented by seven items, agriculture was 73 (24%), while 12 (4%), were engaged in manufacturing sector, 33 (11%) were involved in building and construction, similarly, 125 (41%) are involved in information technology and communications, whereas, educational establishments 23 (7.4%), while transportation are 5 (2%), and finally, 3(1%) presented other sector. This suggests that majority of the small business involved in information technology and communications and agriculture which may be owing their small size and limited capital to develop (See Table 4.1).

Table 0.2: Demographic Profile

  Frequency Percentage
Gender
Male 266 87
Female 41 13
Age
20-30 years 143 47
31-40 years 110 35
41-50 years 31 10
50 years and above 23 8
Educational Qualification
Bachelor Degree 146 48
Masters 106 35
PhD 30 9
Others 25 8
Experience
Less than 1 year 61 20
1-5   years 179 58
6-10 years 41 13
10 years and above 26 9
Position
Manager 67 22
Owner 240 78
Business Type
Sole proprietorship 61 19
Partnership 201 65
Limited Liability Company 45 16
Sector
Agriculture 73 24
Manufacturing 12 4
Building and Construction 33 11
Information Technology and Communications 125 41
Educational Establishments 56 17
Transportation 5 2
Others 3 1

4.1 Internal Consistency Reliability

Internal consistency reliability indicates the level at which every item on a specific (sub) scale are evaluating the same concept (Bijttebier et al., 2000).  Cronbach’s alpha coefficient and composite reliability coefficient are the commonly adopted indicators of the internal consistency reliability of an instrument in structural study (Peterson and Kim, 2013).  Therefore, in the present study, composite reliability coefficient was adopted to establish the internal consistency reliability of measures employed.

The adoption of composite reliability coefficient was primarily based on two main reasons.  Initially composite reliability coefficient was very effective in controlling estimate bias of reliability than Cronbach’s alpha coefficient, because the latter assumes all items contribute evenly to its predictor without reflecting the real contribution of specific loadings (Gotz, Liehr-Gobbers, and Krafft, 2010).

Table 0.3: Results of Measurement Model

Constructs and Indicators Loadings Composite Reliability Average Variance Extracted  
Microfinance Bank Services  0.908 0.664
MB01 0.762  
MB02 0.838  
MB03 0.850  
MB04 0.824  
MB05 0.788      
  Opportunity Competency   0.872   0.632  
OC01 0.748  
OC02 0.821  
OC03 0.819  
OC04 0.736      
Relationship Competency 0.886 0.610  
RC01 0.753  
RC02 0.874  
RC03 0.791  
RC04 0.721  
RC06 0.751      
Conceptual Competency 0.885 0.659  
CC01 0.768  
CC02 0.849  
CC03 0.790  
CC04 0.816  
CC05 0.746      
Organizing Competency 0.895 0.588  
OG01 0.799  
OG02 0.849  
OG03 0.779  
OG04 0.730  
OG05 0.786  
OG06 0.722      
Strategic Competency 0.911 0.673  
SC01 0.755  
SC02 0.866  
SC03 0.877  
SC04 0.781  
SC05 0.757      
Commitment Competency 0.893 0.625  
CM01 0.828  
CM02 0.857  
CM03 0.807  
CM04 0.753      
Learning Competencies 0.899 0.640  
LC01 0.846  
LC02 0.826  
LC03 0.764  
LC04 0.861  
LC05 0.731      
Small Business Performance 0.895 0.587  
BSP01 0.709  
BSP02 0.768  
BSP03 0.741  
BSP04 0.761  
BSP05 0.781  
BSP06 0.764      

The structural model was tested using mediating variable as presented in Table 4.3. As indicated Table 4.3, of the seven (7) mediation hypotheses, only three (3) were found to be significant. The direct effect model for the significant findings showed that entrepreneurial competencies have a significant positive direct influence on small business performance. Particularly, relationship competency, and learning competencies, which in turns predicted small business performance in a positive direction. Specifically, Hypothesis 1 predicted that opportunity competency has direct positive influence on performance of small business, result (Table 4.3) showed no significant direct effect of opportunity competency on SBP (β = -0.18, t = 3.17, p < 0.01). Hence, this hypothesis was rejected.

Figure 0.1       Structural Model

Table 0.4: Results of Mediating Effect Model

Hypotheses Relationships Direct Effect SE t-value Bootstrapped Confidence Interval Findings
95% LL 95% UL
H1 OC ->SBP 0.01 0.01 0.67 -0.01 0.02 Not Supported
H2 RC ->SBP 0.04 0.02 2.21 0.00 0.07 Supported
H3 CC ->SBP 0.05 0.02 2.55 0.01 0.09 Supported
H4 OG ->SBP 0.00 0.01 0.08 0.01 0.01 Supported
H5 SC ->SBP 0.02 0.03 0.90 0.03 0.08 Supported
H6 CM ->SBP 0.02 0.01 -1.18 -0.05 0.01 Not Supported
H7 LC ->SBP 0.07 0.03 2.39 0.01 0.12 Supported
 Opportunity Competencies = OC; Relationship Competencies = RC; Conceptual Competencies = CC; Organizing Competencies = OG; Strategic Competencies = SC; Commitment Competencies = CM; Financial Literacy = FL; Learning Competencies = LC; Small Business Performance = SBP

Similarly, Hypothesis 1 posit that opportunity competencies has positive direct influence on performance of small business, result indicated that opportunity competencies had no significant direct relationship with SBP (β = -0.01, t = 0.67, p < 0.01, [-0.01;0.02]).  Hence, Hypothesis 1 is not supported. Regarding the direct influence of relationship competencies on performance of small business, results demonstrate a significant direct effect (β = 0.04, t = 2.21, p < 0.01, [0.00; 0.07), thereby confirming hypothesis 2. The direct influence of conceptual competencies opportunity on performance of small business was also found to be significant (β = 0.05, t = 2.55, p < 0.01, [0.01; 0.09]) confirming hypothesis H3 as rejected. Conversely, the direct influence of organization competencies, strategic competencies were found to be positive. On the other hand, commitment competencies on performance of small business were not found to be significant.  Specifically, these findings demonstrated non-significant coefficients as follows: (β = 0.00, t = 0.08, p > 0.10, [ -0.01;0.01]), (β = 0.02, t = 0.90, p > 0.10, [ -0.03;0.08]), and (β = -0.02, t = -118, p > 0.10, [ -0.05;0.08]) for Hypothesis 4, Hypothesis 5, and Hypothesis 6, respectively. Finally, Hypothesis 7, which predicted that learning competencies have direct influence on small business performance was found to be significant, hence, Hypothesis 7 is supported (β = -0.07, t = 2.39, p < 0.01, [ 0.01;0.12]).

4.2 Discussions

The outcomes of the study offer a solid theoretical explanation and contextual understanding regarding the relationship between entrepreneurial competencies and small business performances. The findings of this study specifically suggest that all the entrepreneurial competencies, except strategic and opportunity competency, lead to the performance of small businesses. The evidence further indicates that these competencies are crucial for managing entrepreneurial activities. Thus, the long-term discrepancies in the firm’s performance can be explained by the entrepreneurial competencies. Some researchers have used entrepreneurial orientation instead of entrepreneurial competencies and linked it with the performances of small businesses. For example, Li et al., (2009) proved a positive association between entrepreneurial orientation (competitive aggressiveness, autonomy, innovativeness, proactiveness, and risk-taking attitude) and firm performance while considering the knowledge creation process as a direct role in this relationship. Oppositely, contradictory findings have also been found in the previous literature. There is no link between entrepreneurial orientation and small business performance in the context of Nigeria. However, others have explored a positive association of small business performances with entrepreneurial orientation in the same context of Nigeria. Similarly, explored no significant relationship between the management know-how competency of entrepreneurs on the business success of small business in the context of Malaysia. Despite this fact, a series of training and development programs would enhance the competencies of the entrepreneurs instead of simply giving them a positive environment and some resources for business. Additionally, the specific aspects of each entrepreneurial competency can provide a more focused approach to initiating entrepreneurial training and development programs. As explained, the survey instrument or competency measurement of this study can provide such a unique scope of designing training and development programs for each competency.

Similarly, the findings of quantitative analysis further suggest that the lack of formal training and development can be an extent of hindrance and less satisfactory performance for the two competency domains, instance, strategic and opportunity competency. Oppositely, entrepreneurs are more comfortable and satisfied with their commitment, relationship, learning, and organizing and leading competencies. Thus, high-performed and low-performed competency domains are significantly correlated with the trait-based and skilled-based competency areas. Skilled-based competencies depend on training and development programs, while trait-based competencies rely on the entrepreneur’s personal experiences and involvement in the business development process. Owing to the congruence with the research findings of this study suggests that training would need to be instilled to enhance the strategic and opportunity competencies of the entrepreneurs. Oppositely, an entrepreneur can acquire from experiences through day-to-day business performance and maintenance, commitment.

4.3 Significant Role of Entrepreneurial Competencies on Small Business Performance

The current study has also offered empirical evidence on the important role of entrepreneurial competencies on performance of small business.  While most preceding studies (Abiola, 2011) have largely focused on investigating the indirect linkage between entrepreneurial competencies and performance of small business, this study incorporated entrepreneurial competencies as an independent variable on these relationships for the following reasons.

Firstly, effortful effective managerial skills such as entrepreneurial competencies may be able to override and influence small businesses owner’s/managers automatic tendencies toward long-term performance (Sarwoko et al., 2013), because owner’s/managers with high levels of entrepreneurial competencies operate positively and hedonistic in business approach than those with low levels of entrepreneurial competencies (Abdulwahab and Al-Damen, 2015).

Secondly, entrepreneurial competencies are expected to have direct relationship with small business performance because owners/managers with poor entrepreneurial competencies tend to be less effective, and they find it difficult to control and operate business profitably and also exhibit poor risk management ability (Atya et al., 2016). Ahmad et al. (2011) established that business performance or growth are crucial features of, experience, motives, and skills.  Earlier studies in emerging economies (Jasra et al., 2011) have suggested that skills and external factors are the most critical for entrepreneurs’ accomplishment. Therefore, there is an agreement that entrepreneurial competencies are owned by owner’s/managers, who initiate and transform their firms, and an extensive recognition that the variety of skills and competencies requisite to control a small business are quantitatively as well as qualitatively unique from those required in bigger business (Barazandeh et al., 2015).

Therefore, the whole of this study has augmented the body of knowledge in the area of performance of small business and the research results could be a robust basis for future studies on small business as well as entrepreneurial competencies.

4.4 Theoretical and practical contributions

This study provides both theoretical and practical implications. Theoretically, the study contributes to the body of literature concerning the direct influence of entrepreneurial competencies and small business performance. Furthermore, the study provides initial evidence on the direct influence of small business performance which is not sufficient in the literature. Though there exists the direct relationship between entrepreneurial competencies and small business performance, the mechanisms under which entrepreneurial competencies influences small business performance are under research. The study fills this gap by revealing that such mechanisms greatly influence small business performance as compared to the direct effects. For managers and entrepreneurs, since entrepreneurial competencies contribute to both small business performance, managers and small business owners should address their competency deficiencies to develop more capabilities like management and marketing capabilities which could enhance better small business performance. To be specific, they should pay special attention to building networks through which they are exposed, learn and become more innovative as well as better decision makers and implementers.

4.5 Limitations and Future Research Directions

Limitations have been observed by the researcher. The data represents a limited variety of small businesses located in the north eastern Nigeria which is an emerging economy. Therefore, readers should assess the findings from the viewpoints of its limitations. On the other hand, readers should not generalize the findings of this study to all small businesses regardless of their size globally. Therefore, future studies can be conducted to scrutinize small businesses from different settings such as developed countries or from different time frames to ensure important environmental dynamism in the data. Similarly, future studies can be conducted to compare SME performances between a group of developing countries linked with entrepreneurial competencies along with developed countries to provide more generalized findings. In addition, there is avenue to upsurge the domain of entrepreneurial competencies in future studies. Further studies could also investigate whether there are any moderating or mediating roles between small businesses performances and entrepreneurial competencies. Additionally, future studies might employ longitudinal data to mitigate the likelihood of bias from a unit respondent’s cross-sectional approach.

5.0 Conclusion

From the outcomes of this study, it can be concluded that small business performance can be improved by enhancing entrepreneurial competencies. This could be done at individual level by entrepreneurs or managers taking advantage of any training opportunities through which skills and knowledge are attained or through specialized sector trainings organized by authorities like ministry of trade, industry and cooperatives. It’s evident that when entrepreneurs possess competencies such as organization competencies, strategic competencies, and relationship building, their business performance tends to improve. Therefore, entrepreneurs need to attain such competencies as a way to spur improved small business performance. This will also influence the increase of small business capabilities given the fact that small businesses have resource limitations. This implies that entrepreneurs with high networking, relationship building, and innovative thinking competencies able to create firm capabilities in form of marketing, market linking, and management capabilities. To sum up, the significant contribution of this study is to influence small business performance. It is revealed that where these managers focus on building the overall organization competencies, strategic competencies, small business capability, as a conduit to promote performance, firms perform better through the direct effect of entrepreneurial competencies.

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Ukraine and Russia Conflict: Its Implications on the Global Economy

UKRAINE AND RUSSIA CONFLICT: ITS IMPLICATIONS ON THE GLOBAL ECONOMY

FRANCIS CALLISTUS AZUBUIKE

DEPARTMENT OF POLITICAL SCIENCE

NNAMDI AZIKIWE UNIVERSITY, AWKA, ANAMBRA STATE-NIGERIA

cf.azubuike@unizik.edu.ng

SHEDRACK, CHUKWUEZEUGO IGBOKE

DEPARTMENT OF POLITICAL SCIENCE

NNAMDI AZIKIWE UNIVERSITY, AWKA, ANAMBRA STATE-NIGERIA

sc.igboke@unizik.edu.ng

Abstract

The Russian-Ukrainian war came when the whole world was about to recover from the devastating effects of COVID-19 pandemic which threw the global sociological and economic conditions into comatose. In this paper we tried to trace the historical overview of the Ukrainian nation so that we can understand the remote and immediate causes of the conflicts. We also understudied the immediate causes, its effects to the global community so that we can propose likely recommendation that can prevent future occurrence. In the course of the study we found out that Ukraine has had a rough road to independent and that since after their independence in 1991 from the Soviet Russia, they have battled with the heavy Russia influence and control. To save itself from this threat of a neighbor, Ukraine resorted to seeking alliance with America, Western Europe and NATO, which infuriated Russia that led to this war. Data used was gathered from documented evidence, and descriptive and qualitative data analysis was employed. The study adopted power theory of Laswell and Kaplan, H.J. Margenthau, etc as a theoretical guide. Our findings proved that the war has brought a lot of global economic, social, environmental and energy crisis, migration problem, food crises at a global level especially in Ukraine. The work recommended among others global alternative channels of food and energy supply to cushion the effects of the war in Ukraine.

Key Words: Ukraine, Russia, War, Conflict, Inflation, Global energy crises, Refugee and Nuclear Weapon.

INTRODUCTION

Historically, Ukraine as a country and people is a nation which has experienced a great deal of war, violence rule, conflicts, and external rule and control in their quest for self-determination, self-actualization, independence and defense of their nationhood, sovereignty and territorial integrity.  David Marples (2016) stated that “upon gaining its independence in 1991, Ukraine had several distinct regions and a number of significant ethnic minorities, most prominent of which were Russians.” He went further to state that “the only part of Ukraine with a Russian majority was the Autonomous Republic of Crimea, but Russians comprised significant communities in the far eastern oblasts of Donetsk and Luhansk, as well as in Dnipropetrovsk, Odessa, Kharkiv, and others.” This explains why Russia has gone on to annexed some of these areas mentioned here in the course of this crisis.

Therefore, in trying to study the recent Ukraine-Russia conflict we will like to do a brief historical background review on the Ukraine and marry it with her relationship with Russia overtime, this will help us to understand the remote and immediate cause or causes of this present conflict between the two countries.  Historically, Ukraine was at the heart of the first Eastern Slavic state of Kyivan Rus, and of course, during the 10th and 11th centuries it was the largest and most powerful state in Europe. It lost this status because of the internecine quarrels and Mongol invasions, which resulted in the incorporation of Kyivan Rus into the Grand Duchy of Lithuania and eventually into the Polish-Lithuanian Commonwealth, (Bureau of European and Eurasian Affairs, Department of State Fact Sheet July 30, 2013).

According to K. Niemeyer Rex, G and J.K.B. Lough (2022), “what is now Ukraine became a geographical and cultural entity between 1590 and 1700, within the territory of the first Russian state, Kievan Rus’. The region enjoyed brief independence in the mid-17th Century, in the form of the Cossack state. An alliance with Muscovy in 1654 led to its partition between Poland and Muscovy, and then incorporation in the Russian Empire in the 18th Century”. The cultural and religious legacy of Kyivan Rus laid the foundation for Ukrainian nationalism through subsequent centuries. A new Ukrainian state, the Cossack Hetmanate, was established during the mid-17th century after an uprising against the Poles. Despite continuous Muscovite pressure, the Hetmanate managed to remain autonomous for well over 100 years. During the latter part of the 18th century, most Ukrainian ethnographic territory was absorbed by the Russian Empire. According to Andreas Kapeler, (2014), “when the Tzar dynasty of Russia collapsed in 1917, Ukraine was able to enjoy a short period of independence which lasted from 1917-20, and again was re-conquered and forced to endure a brutal Soviet rule that ushered in two forced famines 1921-22 and 1932-33 which cost them 8 million deaths.”

Furthermore, in World War II, German and Soviet armies were responsible for some 7 to 8 million more deaths (Bureau of European and Eurasian Affairs, Department of State Fact Sheet July 30, 2013). Apparently, final independence for Ukraine was achieved in 1991 with the dissolution of the USSR, but the expected democracy and prosperity remained elusive because the legacy of state control was marred by endemic corruption and this stalled efforts made towards economic reform, privatization, and civil liberties. This led to a peaceful mass protest called the “Orange Revolution” in the later months of 2004 which forced the authorities to overturn a rigged presidential election, to allow a new internationally monitored vote that swept into power a reformist state under Viktor Yushchenko. As a result of this development, internal political disagreements erupted in the Yushchenko camp, which made his rival Viktor Yanukovych to stage a comeback in parliamentary elections and become prime minister in August of 2006.

An early legislative election, brought on by a political crisis in the spring of 2007, saw Yuliya Tymoshenko, as head of an “Orange” coalition, installed as a new Prime Minister in December 2007. Viktor Yanukovych was elected president in a February 2010 run-off election that observers assessed as meeting most international standards. The following month, Ukraine’s parliament, the Rada, approved a vote of no-confidence prompting Yuliya Tymoshenko to resign from her post as prime minister. In October 2012, Ukraine held Rada elections, widely criticized by Western observers as flawed due to use of government resources to favor ruling party candidates, interference with media access, and harassment of opposition candidates. This cycle of internal political crises continues coupled with the ethnic and linguistic diversity made Ukraine weakened the country’s unity and this brought in Russian interference. Due to the fact that the Ukrainian conflict has developed, at least partly, as a consequence of existing divisions that has exacerbated the differences between various groups, regional political leaders with Russian background always look up to Russia for support. 

In its quest for independence, Ukraine faced formidable challenges in unraveling peacefully its close bonds with Russia. The large Russian minority in Ukraine and Ukraine’s integration into the Russian economy raise interconnected issues, none readily soluble, which could easily destabilize Ukraine politically and economically, endangering its independence. Moscow to a large extent finds it very difficult in adjusting to the concept of Ukrainian independence, since they instinctively regard Ukraine as inseparably linked with Russia. (Klaus Niemeyer, 2022). Ukraine’s eastern border with Russia is only administrative, and could be questioned if relations with Russia deteriorate. Romania could then try to take advantage by pursuing claims to historically Moldavian territories in Ukraine. Ukraine’s policy to western neighbours, particularly Poland, will be very important, because Ukraine looks at Poland as a channel to the West.

The war between Ukraine and Russia started in February 24th 2022, when Russia invaded Ukraine. Although the conflict actually began in 2014, when Russia backed the separatists elements in Ukraine, which led to the annexation of Crimea and Donbas by Russia (Nezavisimaya, 1992).

 As a result of this development, the protests and demonstrations by pro-Russian groups in the Crimea and Donbas region of Ukraine escalated into a war, resulting in the removal of pro-Russian president of Ukraine Viktor Yanukovych in February 2014 with US support and their allies, which led to the emergency of a pro-US president Volodymre Zelenskyy. In this regard Russia organized a widely criticized referendum, which outcome was for Crimea to join Russia, though Moscow denied been involved.

In 2021 and earlier 2022, there was a heavy Russian military buildup around Ukraine’s borders, which made NATO to accuse Russia of planning an invasion on Ukraine. In response to NATO accusation, president Putin criticized the enlargement of NATO as a threat to his country, and demanded that Ukraine should be barred from ever joining the military alliance. Putin maintained that Ukraine have rights to exist as a sovereign nation and stated wrongful that Ukraine was created by soviet Russia. However on February 21st 2022, Russia officially recognized the two self proclaimed separatists’ states of Donbas and Crimea and openly sent troops into the territories, and the war started.

Methodology

This study is based on descriptive and qualitative analysis of data collected. It relied on the secondary data collection. Content analysis and logical reasoning served as the instruments applied in the data analysis, while Power Theory of Laswell and Kaplan, H.J. Margenthau, Erich Kaufman, Karl Baker, Herbert, Edward Shills and Catlin was employed as a theoretical guide in explaining the links between the two major variables. Power theory is defined, with special emphasis on the development of military power of state, according to Obasi Igwe, (2002) as “the capacity to achieve an outcome through an actual use or threat of coercion …” This becomes evident in 1939, when Hitler used force against Czechoslovakia to get back the parts of Germany handed over to it after the treaty of Versailles (1919). Again Hitler wanted Poland to return the German territory given to it by the treaty of Versailles, Poland refused, Hitler invaded Poland and 2nd world war ensued, though Hitler was defeated by the combination of Allied forces. The same scenario of territorial dispute and the use of power to achieve compliance are playing out here between Russia and Ukraine. Here Russia believes that it can coerce Ukraine into given up some of its internationally accepted territories to them (Russia) or her allies, or better still achieve change of political leadership in Ukraine that will institute pro-Russia regime in Ukraine. Moscow has before now instigated internal political crisis in Ukraine, which resulted to secession moves, and caving out of some Ukraine territory as separate countries by some rebels in Ukraine. This move has been resisted by Ukrainian government, and therefore Moscow resorted to war, because they believe that they have greater military strength that will subdue Ukraine to succumb to their desire, which is either allegiance to Moscow, balkanization of Ukraine or regime change in Ukraine and this gives credence to Clausetwiz assertion that war   “is the continuation of policy by other means” (Obasi Igwe, 2002).       

CAUSES OF THE RUSSIAN-UKRAINIAN WAR

  1. Application of Ukraine to Join NATO in 2008

In 2008, Ukraine and Georgia applied to join NATO under the membership of Action Plans (MAP) but NATO refused with the pressure from the Western European countries and their allies, in order to avoid antagonizing Russia, while the US president then George W Bush, and her western allies in the Europe pushed for their admission.  President Putin of Russia on the other hand who was the major target for regime change opposed the Ukraine and Georgia application for NATO membership. In this regard NATO in their double standards issued a controversial statement agreeing that these countries will become members of NATO. Shortly thereafter, Russia invaded the Crimean Peninsula in 2014, resulting in violence in Donbas and fierce fighting in the Russian-Ukraine border (Anton Bebler, 2015).  In January 2022, Ukraine re-applied to join NATO due to security threats from Russia as a result of the request, there was a heavy Russia military buildup around Ukraine borders, which NATO accused Russia of planning an invasion. In response to NATO accusation, president Putin criticized the enlargement of NATO as a threat to his country. On February 24th, 2022 Russia invaded Ukraine which attracted a global condemnation from the international community, accusing of breaking international law and violation of Ukrainian sovereignty. The bottom-line is that Russia does not want Ukraine to join NATO because of US dominance of the organization and their interest in Ukraine, which will give US opportunity to control Russia and other countries in Europe through NATIO and her allies.

  • Regime Change in Ukraine by Russia

According to Muhammad E, Mansur E and Nilufar I (2022), the reason behind the Russian invasion is that, Russia is threatened from Ukraine being a liberalized country, out of the Russian influence, and seeks cooperation with the Western countries in trade, security, and politics including the possibility of access to NATO and the EU, which threatens Russia’s national security and these reasons push her towards this military operation with the aim to establish a new Ukrainian government loyal to Russia. The removal of pro-Russian president Viktor Yanukovych in February 2014 who protects and promotes Russian interest and who was also anti-NATO is the key push and pull factor of Russia and Ukraine war, which led to the emergency of pro-US president Volodymr Zelenskyy. In this regard Russia supported and organized widely criticized referendum which outcome was for Crimea to join Russia. In April 2014, protest by pro-Russian in the Donbas region of Ukraine escalated into a war between the Ukrainian military and Russian backed separatists of the self declared Donetsk and Lahaska Republics. As a result of this development, there was a heavy Russian military vehicle crossing into the border of Donetsk Republic. On 24th February, 2022 Russia invaded Ukraine for regime change hoping to install a pro-Russian government against the existing pro-US government in Ukraine. Thus abinitio; the US and her allies such as Britain, France and other European allies condemned Russia for its action in Ukraine.

From the above background on the cases of regime change in a foreign countries, Russia maybe borrowing from United States previous actions in Middle-East and Africa, when the US due to their interest and that of their allies (NATO) under George W Bush administration invaded Iraq in 2003 and killed Saddam Hussein based on mere allegation of possessing weapon of mass destruction. There was no iota of truth in the US allegation on Iraq after investigation from the International Atomic Energy Agency (IAEA) under the United Nations mandate Eze (2017). However, the outcome to this condition is the emergence of pro-US leader in Iraq and the control of their oil which is the main purpose of the regime change. Muyuada (1993) avers that, “now that the cold war is over, the US emerged as the sole great power. This uni-polarity means they can literally walk into any country and do anything it wants to in order to promote the “free world” agenda.

From forgoing, the US can now directly or indirectly via the UN, NATO and her western allies intervene in any country especially in the middle-east region to ensure the steady assess to oil which is the major determinant of the US foreign policy in the region. According to Siegel (2008:59 sited in Eze 2017), the united states intervention in the stand-off between Iraq and Kuwait leading to the 1990 Gulf war, the invasion of Iraq in 2003 that led to the removal of Saddam Hussein from power, the war against the Taliban in Afghanistan and their present efforts to ensure that Iran does not attain nuclear capability are purely because of oil in the region. This is because a nuclear Iran can change the balance of power in the Gulf region and can undermine the United States interest in the area.

In this regard, one of the primary purposes of Russia invasion of Ukraine is regime change of pro-US president Volodymr Zelenskyy. Another good example of regime change are the invasion of Kuwait by late Saddam Hussein which is a pro-US country, the US intervened and liberated Kuwait from Saddam because of her strategic interest and pushed for a regime change in Iraq. Pro-US regime change in Libya through 2011 Arab Spring which provided an ample opportunity for US and her Western allies to effect the change. However, the NATO forces aided the anti-Gadaffi rebels and eliminated Gadaffi and his regime. Regime change in Egypt 2013 and regime change in Syria is some of the examples that are precursor to the main causes of war between Russia and Ukraine. From the background, the war in Ukraine is between US and its allies and Russia and its allies because Russia wants a regime change in a pro-US country (Ukraine).

  • American Hegemony and Russian Quest for Bi-polarity

In line with global dominance, hegemony is a method whereby one state holds a preponderance of power in the international system, allowing it to a single-handedly dominate the rules and arrangement by which international political and economic relations are conducted. Joshua (2013:190). It simply means the global predominance of the United States and her Western allies through UN, NATO, IMF, World Bank and other non-state actors. After the 2nd World War 1939-1945) in the 19th century, Britain emerged predominance in a global system followed the defeat of their arch-rival France in the Napoleonic war. Both world trade and naval capabilities were firmly in British hands, as Britain rules the waves. However, US predominance followed the defeat of Germany and Japan (and exhaustion of the Soviet Union, France, Britain and China in the efforts) (Joshua, 2013:58). The use of alliances and arms control to balance power topically followed one of two distinct patterns (Morgenthau, 1985). In the pattern of “direct opposition” one powerful state tries to prevail over another powerful state, which raises arms or seek allies to offset its adversary’s strength (Charles 2010). By and large, each increase in military capabilities by one side calls forth and increases by the other. According to the eminence realist Hans Morgenthau, (1985), if no state possesses overwhelming military superiority, world politics follows either the pattern of direct opposition or the more complex pattern of ever shifting competition. From foregoing, US emerged only global power position (uni-polarity) after the Second World War because of her military superior, rich economy and control the weapon of mass destruction. She used the position to influence the course of her relations with other states and organizations such as UN, NATO etc. The clash between Russia and US started immediately after the 1917 October revolution of the socialists in Russia. According to Eze (2017:47), US resorted  to intervention in Russia, and refused the nascent soviet government, pursued a policy of sabotage, sanctions and embargo and conducted subversive activities and propaganda against the new soviet state in order to maintain her dominance position in the international system.

In this regard, the recovery of the Soviet (Russia) economy and the growth of its military capabilities with the emergence of China economy eroded the US supremacy and gave rise to a new distribution of world power. The Soviet broke the US monopoly on atomic weapons in 1949 and exploded a thermo-nuclear device in 1953, less than a year after the United States. This achievement symbolized the creation of a bipolar system of direct opposition in the hands of the rival “superpowers”, each heading its own bloc of allies. More so, the formation of the NATO, linking the US to the defense of Western Europe, and the Warsaw Pact, linking the former Soviet Union in an alliance with its Eastern European clients, reinforced this bipolar structure. The current Cold War between United States and Russia that led to the Russia and Ukraine war bred insecurity among all countries of the world. Although cold war ended between 1989 and 1991 which brought seemingly healthy relationship between US and Russia, where both worked together to secure Russian Nuclear weapon cooperation to stabilize the Russian economy, and reached an agreement to allow NATO expansion to some former Warsaw Pact members.

  • Conflict between Russia and US over Ukraine Alliance

In 2008, Russia fought a war against Georgia over a disputed territory and NATO application, and we know that Georgia is a strong US ally from the Eastern Europe. US always use NATO to fight their enemies in any part of the world, via UN. For example, during the Libya pro-democracy violent rebellion against Muammar Gadaffi, the US with her Europe allies, because of their national interest (oil) and her age-long efforts for regime change in Libya, secured UN resolution via her permanent representative, for the protection of the civilian population from pro-Gadaffi forces by anti-Gadaffi rebels (Eze, 2017:61). The US supported the anti-Gadaffi rebels through NATO and her western allies and killed Gadaffi and achieved regime change agenda. In this regard, at the 2008 Buc-harvest Summit, Ukraine and Georgia applied to join NATO which caused division among NATO members and was strongly opposed by Western European countries in order to avoid antagonizing Russia, but the then US president, George W. Bush pushed for their admission. Putin opposed the Georgia and Ukraine NATO membership bids. Both Georgia and Ukraine are strong US allies in Europe. Russia invasion of Ukraine on February 24, 2022 was because of their application to join NATO in January 2022, for security reasons and threats from Russia.

  • Ideological Differences between the US and Russia in key Policy Areas.

On several issues in regards to control of global system, Russia and the US do not agree, even when the Cold war has ended from 1989-1991.  According to Joshua (2013), US are committed to NATO expansion towards Eastern Europe, which Russia considers a direct threat to its security. The formation of Northern Atlantic Treaty Organization (NATO) was engineered by US and her Western allies to control Western Europe, while Warsaw Pact was established by former Soviet Union (Russia) and her Eastern Europe allies to control Eastern Europe which reinforced bipolar structure in the global system. The opposing blocs were formed because the superpowers competed for allies (Charles, 2010:247).  The world power structure is divided into two blocs each side of the bloc is led by a superpower which breeds global insecurity. On the other hand, US are also committed to the deploying anti-ballistic missiles in Europe, which Russia opposes as a security threat to Eastern Europe. More so, America withdrawal from the anti-ballistic missile treaty in 2001 spurred Russia fears that US would engage in another arms race. On policy decision making in UN that affects global system, Russia do not agree with the US, especially on pro-Russia countries, for example, during the build-up to the 2003 Iraqi war, Russia consistently opposed America’s effort to gain UN security council approval, threatening to veto any resolution proposed by the US. From the above background, ideological differences between US (her allies) and Russia (her allies), is the main cause of Russia and Ukraine war. Russia wants to take Ukraine from US at all cost because the current president of Ukraine is pro-US.   

Implications/Effects of Ukraine and Russian war on Africa

The under listed are some of the effects of the Russian-Ukrainian war on the global space, namely;

  1. Global Inflation and Economic Crunch

The inflationary pressures caused by surging commodity and food prices have accelerated monetary policy tightening heighten the risk of stagflation, and increase poverty and inequality across global economy. Market-based measures of long-term inflation expectations in the United States, Germany, UK, Africa, and  Asia have reached their highest levels on records, this according to the World Bank records (2022). According to the World Bank Group, (2022), “global financial conditions have already tightened considerably since February. Many countries of the world have been plunged into high inflation, where costs of goods have skyrocketed; currencies are losing value consistently causing political, social and economic crises globally. Violent protests, agitations are rampant across the world in response to hard economic crunch experienced. Nations like the UK and Lebanon have witnessed dramatic changes in their political landscape courtesy of the rising economic uncertainties caused by the effects of the Russia-Ukraine war.

  • Disruption of Supply Chain

The military operations during the Russian invasion of Ukraine have affected operations in many sectors and this to large extent has disrupted global supply chain. The embargo placed on Russian exports by America and her Western allies and its resultant the retaliatory responds against foreign imports by Russia, which included Russia’s refusal to allow foreign shipments through its airspace and waterways have disrupted the global supply chain. This led to scarcity and rise in the imported goods prices. Firms in expectation of this disruption from cross-border blockades and bans on transit trade resorted to hoarding supplies resulting to higher prices, and the same results have occurred after the COVID-19 lockdown (Zhitao, Adel, Laoucine and Abdelfatteh 2020). Moreover, restrictions on commercial flights around the Ukraine-Russian border, besides the increased security checks at refugees’ camps in neighboring states so far has led to the disruption in the flow of cargo and border operations as cross-border goods and supplies has been stalled or delayed because of the border officials handling refugees before attending to cross-border goods (Zhang Yu, 2021). This has exacerbated the disruption in global supply chain thereby increasing the price of imports across the globe.

  • Global Food Crisis  

Muhammad E, Mansur E and Nilufar I (2022) opines that the impacts of the war in Ukraine are being felt not only regionally, but around the world because of the region’s significant contribution to food and energy supplies. According the Food and Agriculture Organization of the United Nations (FAO) (2022), Russia and Ukraine are prominent players in global trade of food and agricultural products. Again combined sunflower oil exports from both countries represented 78 percent of global supply. This shows that both countries are food baskets of the world. In the area of agricultural allied products, Russia plays a very significant role as she is a key exporter of fertilizers. This will give us the picture of what the world will suffer if this war continues.

  • Global Energy Crises and Rising Cost of Transportation

Energy markets were already experiencing tight supply before the start of the crisis, following strong consumer demand and high GDP growth in 2021 caused by the effects of the COVID-19. Before the Russian invasion of Ukraine, energy prices were increasing because of multiple factors such as the COVID pandemic, lack of energy supplies and the rising tensions between Russia and Ukraine. During this period, oil prices have been stable within the price range of US$80 to US$95 prior to the invasion (Igor Sikorsky, 2022).

The war between Russia and Ukraine escalated the situation because of so many economic sanctions and counter sanctions that followed the outbreak of the war. Examples are, immediately the war started, Germany suspended the approval of the Russian “Nord Stream II” gas pipeline project aimed at distributing energy to Europe (CNBC, 2022). The United States has also banned all Russian imports of oil and gas (The White House, 2022). The European Union also banned the sale, supply, transfer or export of oil refining technologies to Russia (The European Commission, 2022). The UK followed by announcing that it will phase out Russian oil by the end of 2022 (The Guardian, 2022). All this sanctions has a spiral effect on the energy market across the globe, thereby increasing oil price as well as transportation prices in so many parts of the world especially developing economies like Nigeria. This is because Russia is the world’s second largest oil producer and sells most of its crude oil to European refineries. Russia is also the largest supplier of natural gas to Europe, providing about two-fifths of its supplies (EIA, 2021). Because of Russia’s large share of oil export, the Russian invasion of Ukraine has led energy supply shocks and a steady rise in energy prices. This effect exacerbated because of Russia’s retaliatory export embargo on energy supplies to Europe, especially Ukraine and her allies. This retaliatory embargo on energy exports has caused a significant disruption in the international energy supply chain, and thus increases the energy prices across the globe. The Russia-Ukraine conflict could make the price of oil exceeds $140 per barrel and could significantly lower the outlook for global economic growth, plunging some European and non-European countries into a recession (Hamilton, 2003).

  • Refugee Crisis  

Over 7 million people have been displaced within Ukraine, while UNHCR is reporting the number of refugees (to neighboring countries) at 4.7 million as of the 15th of April (IOM 2022; UNHRC Data Portal 2022). A large share of refugees is women and children. Of the estimated 7.5 million children in Ukraine, 4.3 million (57 percent of the total) has been displaced: 1.8 million (24 percent of total) are estimated to have fled to neighboring countries as refugees, and another 2.5 million (33 percent of total) are internally displaced (IOM 2022; UNHRC 2022). This has also caused social problem to the host communities and countries where these Ukrainian internally displaced people and refugees are. The health, education, and social protection systems in some host countries already had challenges to deliver services to more remote areas and to include marginalized groups. This could impact host countries’ abilities to provide basic services and impact refugees (UNHCR 2021). Accommodating the sudden arrival of a very large number of refugees with extensive needs is a challenge for host countries which puts pressure on public finances and the delivery of basic services. If protracted, refugee crises may also foster social tensions and political fragmentation. In countries such as Moldova and Poland, the ratio of refugees to local populations could reach extremely high levels, and many may only be on transit.

  • The War has caused high level of Humanitarian Crisis in Ukraine.

Since the beginning of the war, urban centers in many parts of the country have been badly destroyed, maritime, road and rail transit have been severely disrupted, and vital economic and social service infrastructure including power generation, digital infrastructure, bridges, and ports has been destroyed or rendered unusable. As of the end of August, more than 6 million Ukrainians had little or no access to safe water. About 12 million people are estimated to have been displaced as of mid April and a similar number of people especially the elderly and sick urgently require humanitarian assistance (UNHCR 2022). The war is also substantially eroding human capital. It is likely to have a particularly acute impact on children by increasing malnutrition and stunting, reducing years of schooling, and worsening labor market outcomes (Akresh, Caruso, and Thirumurthy 2022; Acosta et al. 2020).

CONCLUSION

This paper was inspired by the quest to understand what actually prompted the Russian invasion of Ukraine on the 28th February 2022, and the implications of that invasion in Ukraine and globally. In the course of the study, it was established that the war was prompted by Russian’s bid to protect their dominance in the Eastern Europe, change the existing pro-USA government in Ukraine, re-emphasize bi-polarity in the global system and instill fear in the minds of her neighboring countries who may dare to question their dominance. The result of this power play between Russia and United States of America was the invasion of Ukraine and this has brought a lot of destruction in Ukraine, lives, properties, investments, have been destroyed. The global economy has been badly affected, humanitarian challenges, refugee crises, global hunger and food crisis are on the increase and this got to stop. The war has lingered more than envisaged, taking more dangerous dimensions as it continues and as such calls for global intervention to stop what looks like another rough road to World War III

RECOMMENDATION   

Based on the findings, the paper provides the following recommendations:

  • Accelerated acceptance of Ukraine into NATO with full protection before it becomes too late to stop further Russian damage on Ukraine.
  • Alternative channels of food and energy supply should be worked out by international system to make up for the shortage caused by the war in Ukraine so that its global economic and humanitarian negative effects will be properly handled.
  • United Nation should increase their commitment towards the management of refugee crisis and the issues of IDP cases caused by the war, and also stand up on their responsibility to maintain world peace by getting directly involved in the conflict.
  • Global increase in the military and humanitarian support to Ukraine so that they can defend themselves, and to cushion the effects of the war.

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Varma, S.P (2006), “Modern Political Theory”, Vikas Publishing House PVT LTD Jangpura: New Delhi.

Volvach, Yaroslvana (18th February, 2022) “How Russia Proxy Forces are attempting to provoke the Ukrainian Army and are lying about a new Ukrainian offensive.” Archived from the original on the 18th February, 2022. Retrieved 18th February, 2022.

Wang, W. (2015). “Impact of western sanctions on Russia in the Ukraine crisis.” Journal of Politics and Law, 8, 1. DOI: 10.5539/jpl.v8n2p1.

Zhitao Xu, Adel Elomri, Laoucine Kerbache, Abdelfatteh El Omri, (2020). Impacts of COVID-19 on Global Supply Chains: Facts and Perspectives. IEEE Engineering Management Review, Vol. 48, No. 3, Third Quarter, September 2020. DOI: 10.1109/EMR.2020.3018420.

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Environmental Accounting and Caliber of Financial Reporting of Nigerian Quoted Firms

ENVIRONMENTAL ACCOUNTING AND CALIBER OF FINANCIAL REPORTING OF NIGERIAN QUOTED FIRMS

Oranefo, Patricia C.

Department of Accountancy

Nnamdi Azikiwe University, Awka

Mail: rollandchi@yahoo.com

Abstract

This study therefore examined the environmental accounting and the caliber of financial reporting of Nigerian quoted firms. The study employed survey research design. The entire number of service companies listed on the Nigerian Stock Exchange (NSE) made up the population of this study.  Data were generated through questionnaires distributed to respondents. Pearson’s Chi-square method was employed to test the hypothesis. The result shows that capitalizing environmental resource expenses including those for hiring, choosing, training, education, welfare, contributing to a pension fund and subsistence allowance allows for better accounting of these costs. As a result, they must be capitalized and reported as assets. When this is done, listed service businesses in Nigeria can be more accurately valued, and their financial reports can more reliably convey important financial data for use by different report users. Based on the result, it was recommended that backup plans for dealing with unusual and unintentional discharges as well as programs for reducing waste should be required of businesses.

Keywords: Environmental accounting, Financial reporting and Service companies

Introduction

Environmental accounting covers the identification, measurement, and allocation of environmental expenses, as well as their integration into corporate operations and dissemination to stakeholders. Since it incorporates transparency into its societal actions, it is a comprehensive strategy for ensuring excellent corporate governance. Because of some people’s rude attitudes and lack of respect for environmental accounting, performance falls short of expectations. This is because environmental accounting makes it possible for the company to keep track of all the money it spends on the environment. This helps the company figure out how to cut those costs (known as environmental expenses) and make more money for the business. Additionally, environmental accounting assists in demonstrating a company’s environmental stewardship to the outside world (Ahmad & Courtis, 2022).

In order for societies to transition from manufacturing-based to information-based and eventually to knowledge-based societies, certain processes and procedures—like those pertaining to management, accounting, and finance—must be unfrozen. In today’s knowledge society, all economic activity revolves around environmental accounting. The creation and application of knowledge are the primary drivers of wealth creation in a knowledge economy (United Kingdom Department of Trade & Industry, 2019). Therefore, knowledge workers rather than machines are the primary resource in knowledge-based economies. As a result, without stressing the significance of environmental accounting, it will be impossible to report the financial performance and position of knowledge-based enterprises (also known as service-based companies).

Due to the fact that the term “financial accounting” is frequently used in relation to monetary terms (Bartolomeo, et al., 2020), the distinction between regulatory and environmental accounting dates back to a time when regulatory agencies introduced external accounting.2020). It is clear that environmental accounting can be used not only at the organizational level, but also at the plant, company, regional, and national levels. In order to inform their stakeholders, businesses currently voluntarily account for physical and financial information (Bartolomeo et al.,2020).

The remarkable expansion and financial impact that the banking sector, the technology and communication industry, and other service-oriented businesses have had on the Nigerian economy over the past ten years demonstrates the significance of the service sector. Over the past ten years, activity at the Nigerian Stock Exchange (NSE) has been dominated by the service sector, particularly the banking sector (NSE Fact Book, 2020). During that time, investors expressed a significant amount of interest in the shares of the service sector and made substantial investments in that sector. Investors and other stakeholders in this scenario heavily rely on the service companies’ published financial reports when making investment decisions. They expect service providers to provide sufficient data to present a true and accurate picture of their business practices, which may be crucial to all parties involved.

When a listed service company publishes its financial performance and position for a particular time, it is anticipated that all significant and pertinent information will be included. If these businesses fail to disclose their key asset (environmental accounting), the adequacy and significance of their financial information disclosure is questioned. Therefore, the intangible assets that corporations do not record, primarily environmental resources, frequently play a significant role in the difference between their shares’ book value and market value (Abubakar, 2020; Lev, 2021).

When this company only mentions the value of its corporate buildings, furniture, and technological devices without mentioning the value of its environmental resources, should the financial statements be considered to be true and fair? The probability of a negative response is higher. A significant number of intangibles are also indicated by the size of the disparity between the company’s book value and market value. This study therefore examines the environmental accounting and the caliber of financial reporting of Nigerian quoted firms.

Literature Review  

Environmental Accounting

The early days of environmental accounting were marked by uncertainty. According to studies from that time period, the first studies in the field of environmental accounting began in 1970 and were more descriptive. Between 1970 and 1980, environmental accounting went through four stages (Vasile & Man, 2020).There have been conversations about the job of bookkeeping in revealing data about natural drives from 1981 to 1994.During this time, researchers have become more interested in this topic, and environmental accounting is starting to get more attention from managers and even accountants. Additionally, research on social accounting has suffered as a result of an increase in environmental accounting researchers (around 267) (Vasile & Man, 2020).

Between 1995 and 2001, environmental accounting entered its mature phase. An environmental audit is currently being carried out, and environmental information is now beginning to be taken into consideration. Theoretically and practically, environmental accounting was also discussed, particularly in developed nations. Environmental reports are still the primary subfield that researchers have focused on, but the number of studies from this time period is beginning to significantly increase. The adoption of environmental management standards, which have been dubbed the “cornerstone” of environmental accounting (Vasile & Man, 2020), has sparked interest in this subfield. Rules for environmental accounting and reporting environmental data have also been published since 2002.

Financial Reporting

According to Nzekwu (2019), the supply of key quantitative representations of individual corporations that support a wide range of contractual relationships and enhance the information environment as a whole is referred to as corporate financial reporting. He added that the nature of monetary revealing of an element influence on the company’s income as well as impacting the expense of capital on which the incomes are limited. It can also help investors and managers find and analyze investment opportunities. This definition focused on how an entity provides information and how that information affects the reporting entity’s cash flow.

From a different point of view, corporate financial reporting is thought to be an important and effective way to spread financial information. According to Salawu (2019), corporate financial reporting is the public reporting of a company’s operating and financial data through annual reports and accounts. It is a process that has many benefits for the people who use the reports, who use them more often to make decisions. However, Beuselinck and Manigart (2017) identified a number of major issues with corporate financial reporting, including the use of outdated technology, the use of outdated technology, a lack of timely information, increased printing costs, and limited copies available to a select market. Accounting records are the primary source of information for the preparation of annual financial statements and for the effective operation of an organization’s affairs, making up an organization’s financial reporting (Barth, Landsman, Lang, & Williams, 2016;Lee, 2016). As a result, it’s critical that they serve their intended functions accurately. According to Mainnes & Wahlen (2016), the accounting and information systems that are used to prepare financial reports need to provide a foundation for the generation of management information that is required for the organization’s effective and efficient day-to-day operation. This information needs to be consistent and compatible with the information that is included in the financial statements. Members’ responsibilities to the organization and its stakeholders are fundamentally supported by the records and reports they generate.

Empirical Review

Field (2021), who has written a lot about the economics of natural resources, looked at the benefit-cost analysis method by discounting environmental project and activity input and output values based on the future. The regulatory Evaluation Impact Assessment (EIA) study on the environment has largely served as the method for measuring benefit-cost analysis. Using T-test statistics, Pearson product-moment correlation, and regression analysis, Enahoro (2019) discovered that environmental accounting disclosure differs between Nigerian quoted companies. Bassey, Sunday and Okon (2016) then again utilized Pearson’s item second relationship examination of oil and gas organizations in the Niger Delta district of Nigeria. They observed a positive correlation between the company’s profitability and environmental costs. According to Epstein (2016), the costs of environmental degradation include emissions into the air, water, and land. It also includes quantities of solid water that must be disposed of, possibly through land spreading or incineration, as well as aspects of untreated domestic waste outflows into rivers and coastal oceans. Airborne S02 emissions from power plants caused by stack-gas scrubbing, which results in a highly concentrated sludge, and degradation, such as illegal dumping along the sides of roads or in remote areas at night, are examples of pollution.

METHODOLOGY

Research Design

With a large sample size of 102 quoted service companies in Nigeria and approximately 9100 respondents, this study combined descriptive and survey research methods. Questionnaires are typically regarded as a more objective research strategy that can produce generalizable results when the sample size is large.

This study’s population consisted of all service businesses listed on the Nigerian Stock Exchange (NSE). The review populace is classified into NSE areas and is believed to be limited. On the NSE, there are 35 different industries, 13 of which are housing service-oriented businesses. The information about the service-oriented industries as well as the number of businesses in each industry is presented in Table 1.

The questionnaire was used in this study to test a particular hypothesis by utilizing the Pearson’s Chi-square method and questions 7 through 15.

23 quoted service providers made up the sample, or 22.55 percent of the total population, according to the calculations. Every person in the population had the same chance of being selected for the sample when proportional and basic random sampling methods were combined.

Questionnaires Administered

Where the number of respondents is quite vast, Yemane (1967) sampling technique was thought to be better suitable (Eric, 2009). It was taken into account and used in this investigation for this reason. Due to the nature of the research, emphasis was placed during the administration of the questionnaire on the executive officers and other management personnel of the companies. Using practicality and value judgment, the number of questionnaires distributed to additional types of respondents was determined.

Data Analysis Methods

The study hypothesis, which was based on rankings of environmental expenditure, was put to the test with the help of the Kendall’s Coefficient of Concordance (KCC) as a tool. The respondent’s agreement with the significance placed on environmental expenditures for capitalization as assets was determined using this method.

Model Requirements for Validation of the Developed Model

EBO (1995) Model was utilized to determine the value significance of the “Salisu environmental accounting Model” on the caliber of financial reporting of listed service firms in Nigeria. Here, we want to test hypothesis 2 by demonstrating empirically the effects of the “Salisu environmental accounting Model” (2). Accordingly, the study developed the following equations to determine the outcomes of multiple regression utilizing the EBO (1995) Model.

AMPi is equal to I plus i1BVPS  +     i. ………………………………..i

AMPt = t+ t1BVPS + ———————————————————–ii

AMP stands for Average Annual Market Price.

Book Value Per Share is BVPS.

  Data Analysis

  Basic Descriptive Statistics

In this section, the descriptive statistics, tolerance and Variance Inflation Factor (VIF) are presented and discussed. The objective here is to provide explanations on the basic features of the data used. Table 4.9 below shows the mean, standard deviation, tolerance and VIF values of the variables considered.

Table 1:  Descriptive Statistics Results

Variables With HR Value:   BVPS   AMP
Mean Std. Deviation Tolerance VIF   12.0858 8.20164 0.305 3.278   24.9867 15.58926 N/A N/A
Without HR Value: Mean Std. Deviation Tolerance VIF   12.1275 8.20164 0.307 3.260   24.9867 15.58926 N/A N/A  

Source: SPSS Regression Results

When the HR value is excluded from their financial reports, the figures in Table 1 show that the average BVPS of the banks under examination is N12.13. However, when the HR value, which was calculated using the “Salisu HRV Model,” is taken into account, the BVPS is N12.09, which represents a 4k drop. Low standard deviation coefficients for each of the independent variables (BVPS) show their importance to the “Salisu HRV Model.”

The tolerance and VIF values are used to evaluate the multicolinearity of the variables taken into consideration.

Table 2: Regression Results Computed from the Data on Table 4.8

Statistical Variables Without HR Value With HR Value Difference
R 0.914 0.922 +0.008
R Square 0.836 0.850 +0.014
Adjusted R Square 0.775 0.794 +0.019
F Statistics 13.594 15.126 +1.532
t – values: BVPS 0.342 0.741 2.146 0.064**  
Significant 0.002* 0.001*  

Source: SPSS Regression Result

Because estimated R is greater than 0.875, the statistical findings in table 2 above indicate that there is a significant connection between AMP, the dependent variable, and BVPS in both scenarios. The EBO regression model was found to be broadly fit based on the two scenarios’ modified coefficients of determination (R2) values of 83.6 and 85.0 percent, respectively. This suggests that 83.6 percent of the changes in the market share prices of the Nigerian banks chosen for quotation are explained by BVPS, which does not take HR value into account. Similarly, if HR value is incorporated, BVPS account for 85.0 percent of the variances in the selected Nigerian banks’ market share prices. This demonstrated that the variable whose HR value is included in the selected banks’ financial reports has a greater impact on the share price.

CONCLUSION AND RECOMMENDATIONS

Although it employs mathematical modeling techniques, this study is more of a survey. The questionnaire itself was used as the data source for the study. The responses to the questionnaire were analyzed using chi-square, tables, percentages, problems, Kendall’s coefficient of Concordance, respondents’ knowledge of existing models for the use of environmental resources and their shortcomings, and potential approaches for including environmental resource value in a service company’s financial statements. All aspects of environmental accounting, both controversial and noncontroversial, were covered in detail in the surveys, which also required respondents to rank certain well-known expenditures on environmental resources.

In addition to the developed model, this study’s findings demonstrated that quoted service providers in Nigeria receive higher valuations for their environmental resources when all relevant expenditures are capitalized. As a result, accounting for environmental resource expenses, such as hiring, choosing, training, education, welfare, and subsistence allowance, can be improved by capitalizing these costs. They must therefore be reported as assets and capitalized. When this is done, Nigeria’s listed service businesses can be valued more accurately, and their financial reports can reliably provide various report users with important financial data.

The concept of environmental accounting was thoroughly examined in the research paper. To put it another way, the findings of the study demonstrated how crucial it is for service organizations to value the environment as an asset in their financial reporting and to account for it. Based on the majority of the existing literature, the study came to the conclusion that the cited service providers can gain in a way that is sufficiently justifiable from using the created model to evaluate and report environmental data. The justifications are supported by scientific evidence in the study.

Recommendations

  1. Backup plans for dealing with unusual and unintentional discharges as well as programs for reducing waste should be required of businesses.
  2. The government ought to mandate environmental reporting in annual reports because the majority of businesses rarely document their environmental activities.

REFERENCES

Abubakar, S. (2020). Environmental Accounting: An Assessment of the Valuation Models and Methods. Nigerian Journal of Accounting Research, Vol. 4, No. 2, June, pp. 80-102.

Ahmad, K., & Courtis, J. K. (2022). Association between Corporate Characteristics and Disclosure Levels in Annual Reports: A Meta-Analysis. British Accounting Review, 31, 35–61.

Barth, M., Landsman, W., Lang, M. & Williams, C. (2016). Accounting Quality: International Accounting Standards and US GAAP. Working paper series.

Bassey, E.B; Sunday, O. E & Okon, E. E. (2019). The Impact of Environmental Accounting and Reporting on Organizational Performance of selected Oil and Gas Companies in Nigeria Delta Region of Nigeria. Research Journal of Financial and Accounting, 4(3).

Beuselinck, C. & Manigart, S. (2017). Financial Reporting Quality in Private Equity Backed Companies: The Impact of Ownership Concentration. Small Business Economics, 19, 201-214.

Enahoro. J.A (2019). Design and Bases of Environmental Accounting in Oil and Gas and            Manufacturing Sectors in Nigeria. Ph.D Thesis, Covenant University Ota, Nigeria. p.92.

Epstein, M. J. (2016). Making sustainability work: Best practices in managing and measuring corporate Social, environmental, and economic impacts, UK: Greenleaf Publishing  Limited

Field, B.C (2021). Natural Resource Economics, An Introduction, Boston, McGraw-Hill

Lee, T. A. (2016). Financial Reporting and Corporate Governance. Chichester, England: John Wiley & Sons.

Lev, B. (2021). Intangibles: Management, Measurement, and Reporting. Washington, D.C.: Brookings Institution Press.

Maines, L. & Wahlen, J. (2016). The Nature of Accounting Information Reliability: Inferences from Archival and Experimental Research. Accounting Horizons, 20(4), 399-425.

Salawu, R. O. (2019). Financial Reporting on the Internet by Quoted Companies in Nigeria. A Paper Presented at a Conference on “Repositioning African Business and Development for the 21st Century”, Ife, Osun State.

United Kingdom Department of Trade and Industry (2019). Corporate Reporting under a Knowledge Economy. London: Jossey-Bass.

Vasile, R. L. & Man, R. C. (2020). Discussion: R.G. Barry Environmental resource Accounting, In The Behavioural Aspects of Accounting Data for Performance Evaluation, Edited by Burns, T.J. Columbus: Ohio State        University.

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Analysis of Causes and Effects of Water Scarcity at Njuwa Lake of Rugangye Irrigation Farming in Yola South, North-Eastern Part of Nigeria

ANALYSIS OF CAUSES AND EFFECTS OF WATER SCARCITY AT NJUWA LAKE OF RUGANGYE IRRIGATION FARMING IN YOLA SOUTH, NORTH-EASTERN PART OF NIGERIA

By

ABDULQADIR ABUBAKAR SADIQ1, HAJARA YAWALEBOLTINGO2, MARYAM ABDULLAHI3 & ABUBAKAR BELLO4

1,3&4Department of Agricultural Technology, Adamawa State Polytechnic, Yola P.M.B 2146 Adamawa State Nigeria

2Department of Agric Extension and Rural Development, Modibbo Adama University, Yola Nigeria

Corresponding Author: sadiqhsadiq6@gmail.com. 070-68036372

ABSTRACT

This study aimed to analyze the causes and effects of water scarcity at Njuwa lake of Rugangye irrigation farming in Yola South, North-eastern part of Nigeria. Data were obtained from the well defined and structured questionnaires that consisted of four (4) parts: demographic data of the respondents, causes of water scarcity, effects of water scarcity and coping strategies aspect, randomly administered to the selected sampled farmers of 250 in the area. Simple descriptive statistics was used in analyzing the data. The results show that frequent and excess irrigation (25%) and poor management (22%) were the most agronomic causes of water scarcity. The hydro-climatic causes are water discharge (24%) and high evaporation rate (22%),  managerial and institutional causes include abandoning of Chochi irrigation project and linkage of Njuwa Lake each were as assessed (22%). Similarly, siltation of Njuwa lake (28%) and slope extent (21%) were the edaphic causes of water scarcity and other anthropogenic caused encompasses livestock consumption (29%) and water pollution (26%) respectively. The most evident effects experienced include low crop productivity (16%), loss of fishing activities (13) and abandoning of farm due to loss of capital (12%) correspondingly. Use of early matured crop varieties and digging of wells (20%) were among the most adopted coping strategies of water scarcity in the area. To address this problem, it therefore recommends the completion of Chochi irrigation project should also be considered by the federal government in order to realize sustainable food production for the growing population in the area. Similarly, the farmers need to be trained on the effective water use and management.

Keywords: Analysis, Causes, Irrigation, Njuwa Lake and Water scarcity

  1. INTRODUCTION

Adequate food production to sustain the high demand of the rapid population can be achieved through expansion of irrigation farming in the global scale. However, water scarcity is the major threat affecting irrigation farming most especially in the developing countries caused by various factors. Global demand for food may double over the period 1990-2030 with an increase of 2.5 to 3 times in developing countries as a whole and much as 5 times in the countries of sub-Saharan Africa (Daily et al., 1998; Asadu et al., 2004). To support this growing population, food production will need to respond to the growing demand. Increases in production could potentially come from increases in irrigated agriculture, which currently produces approximately 40 percent of total cereals (Mark et al., 2002). About 20% of total arable cropland is under irrigation, producing 40% of the global harvest (Bruinsma, 2003; Timm et al., 2008).  With continuing population growth and limited potential to increase suitable cropland, irrigation becomes an increasingly important tool to ensure sufficient global supply of food in the future (Wichelns and Oster, 2006). Therefore, it may be said that without irrigation, increases in agricultural yields and outputs that have fed the world’s growing population would not have been possible. Today’s 250 million hectares of irrigated area, worldwide, is nearly five times the amount that existed at the beginning of the twentieth century (Mark et al., 2002). However, agriculture is accountable for the largest extraction of water and thus considered the chief ‘culprit’ under conditions of local absolute scarceness (COAG, 2007). Thus, irrigation is the dominant user of water accounting for 72 percent of global water withdrawals, of which 90 percent is used in developing countries (Mark et al.,2002).

 Food production through irrigation farming is seriously faced with the problem of water scarcity most especially in developing countries of Africa. Ladan, (2019) explained that the issue of availability or shortage of water for irrigation farming has recently attracted the attention of scholars and the media particularly in Northern Nigeria. The United Nations has estimated that by the year 2050, about 4 billion people will be seriously affected by shortage of water (Garg et al., 2007). This is because water scarcity can cut production and badly impact food security worldwide. According to Tahir (2014) the brutality of the water crisis has prompted the United Nations to conclude that it is water scarcity, not to be deficient in arable land that will be the most important limitation to increased food production over the next few decades. Vicious positive feedback between water scarcity, food production constraints, undernourishment and poverty has tended to delay socio-economic development in water-scarce regions in Sub-saharan Africa (Rockström et al., 2007; Grey and Sadoff, 2007; Falkenmark and Lannerstad 2010). In Nigeria, the construction of dams particularly in the north began earnestly following the effects of the Sahelian drought of 1972 – 1975 when aggravated food shortage prompted the various levels of government to embark on a rigorous policy to increase food production (Ladan, 2019).

Increasing water scarcity for agriculture not only limits crop area expansion but also slows irrigated cereal yield growth in developing countries. Water scarcity can induce increases in food prices and, hence, decreases in food demand. The insufficiency of water resources to meet the needs of adequate food production for the growing population is a critical issue that requires ardent attention. Therefore, improved understanding of historical developments can provide a basis for addressing future challenges. Increasing agricultural water security through irrigation to complement soil moisture deficit has driven improved agricultural production in large regions of the world (Falkenmark, 2013). In Yola South LGA, Rugangye irrigation farming is the major area where intensive irrigation activities are carried out seasonally. The area is located at the flood plain of River Benue which has a flat to undulating topography that allows intensive dry season farming due to its proximity with Njuwa lakes which sourced its water from river Chochi as minor tributaries to river Benue (Sadiq, 2019). Irrigation farming is becoming more intensive along Rugangye flood plain of River Benue which significantly improved the livelihood and socio-economic status of people living in the area. However, the irrigation farming system in the study area is still faced with water scarcity challenges which eventually reduced the expected output of the farm produce caused by various factors (see plates 1 below). There is ardent need to analyze the prevailing factors that caused the water deficit and its effects on agricultural activities. To this end, this paper aimed to analyze the causes and effects of water scarcity at Njuwa Lake of Rugangye irrigation farming in Yola South, North-eastern part of Nigeria.

January, 2020               February, 2020                  March, 2020            April, 2020

Plates 1. Depicted the sequential drying of Njuwa Lake from January to April, 2020 which may be due to agronomic, hydro-climatic and edaphic factors imposing tremendous effects on agricultural production in the area  

  • MATERIALS AND METHODS

Study Area

The study was conducted in Rugangye flood plains of Yola South LGA, North-eastern part of Nigeria which lies on latitude 9o 14’N and 9o 20’N of the equator and longitude 12˚25’E to 12˚28’E 120 25’E and 120 28’E of the Greenwich meridian, it has total population of 336, 648 persons as of 2010 (National population commission of Nigeria, N.P.C. 2006). The average annual rainfall in the study area ranges between 850mm-1000mm with over 41% of rain falling in August and September. Temperature also has a significant temporal variation in the study area; with an average maximum temperature of 42oC with an average relative humidity of about 29% (Upper Benue River Basin Development Authority Yola,  2018).

Sampling Techniques and Data Collection.

This study was quantitative in nature which largely based on data collection where total numbers of 250 sampled farmers (62.5 % of the total farmers) out of the 400 registered farmers in the study area were selected randomly as the respondents. The survey adopted face-to-face quantitative survey approach using well defined and structured questionnaires that consisted of four (4) parts: demographic data of the respondents, causes of water scarcity, effects of water scarcity and coping strategies aspect, randomly administered to the sampled farmers. On-farm oral interviews and evident pictures were also observed in order to achieve the objectives of the study. Additional relevant data such as journal and textbooks were exploited as secondary sources from library, internets, institutions and agencies respectively.

Data Analysis

The data collected were subjected to descriptive statistical analysis where simple percentages, frequency distribution and charts were obtained.

  • PRESENTATION OF RESULTS & DISCUSSIONS

Demographic Data of the Respondents

Results on the demographic data of the farmers in the study area were presented in table 1. It was revealed that 26 % of the respondents were within the active age (41- 50 years) as 20.4 % of them were within 31-40 years while those within 51-60 years were found to be 16 % and only 5.2 % of the farmers were >70 years respectively. Similarly, 36 % of the farmers obtained secondary school certificate as level of education, while tertiary certificates attracted 23.6 % of them and those with primary school certificate were recorded 9.2 % of the respondents. For occupational status, majority of the respondents ( 29.6 %) were revealed to be farmers then followed by civil servants with 24 % of them while pension 15. 2 %, businessmen received  11.2 % each and only 9.2 % of the respondents in the area were artisan workers. Likewise, monthly income level also received considerable responses where 32.8  % of the respondents earn 2701-36000 Naira while those gross up > 36000 Naira monthly were 28 % of them and 16.8 % of the respondents obtained the sum of 18001-27000 Naira respectively.

Table 1. Demographic Data of the Respondents.

VARIABLES CATEGORY FFREQUENCY N= 250   PERCENT % P = 100
  ≤ 20 24 9.6
Age of the Respondents 21-30 36 14.4
  31-40 51 20.4
  41-50 65 26.0
  51-60 40 16.0
  61-70 21 8.4
   ≥70 13 5.2
   
  Never been in school 32 12.8
  Religion school 46 18.4
Level of Education Primary school 23 9.2
  Secondary school 90 36.0
  Tertiary school 59 23.6
   
  Civil servant 60 24.0
Occupational status Private servant 27 10.8
  Business 28 11.2
  Pensioner 38 15.2
  Farmer 74 29.6
  Artisan 23 9.2
  < 9000 22 8.8
  9001-18000 34 13.6
Monthly Income level (Naira) 18001-27000 42 16.8
  27001-36000 82 32.8
  >3600 70 28.0

Source:  Field Survey, (2020).

Agronomic Causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

Frequent and excess irrigation (over pumping)

Results on the agronomic causes of water scarcity in the area were presented on table 2. It was revealed that frequent and excess (over pumping) irrigation was appeared as the major agronomic caused of water scarcity with 25% of the respondents. It is a known fact that groundwater is depleted when pumping rates exceed the rate of natural recharge. This finding concurred with result of Mark et al., (2002) stated that pumping groundwater at unsustainable rates has contributed to the lowering of groundwater tables and to saltwater intrusion in some coastal areas. Inefficient and uncoordinated water use depletes aquifers, reduces river flows and degrades wildlife habitats, and it has caused salinization on 20 percent of the global irrigated land area (FAO, 2016). Similarly, in parts of the North China Plain, groundwater levels are falling by as much as one meter per year (Mark et al., 2002). In the West Indian state of Gujarat, over pumping from coastal aquifers drove a rapid expansion of agricultural production in the 1960s and 1970s. But the over pumping caused saltwater to invade the aquifers, leading to a similarly rapid collapse of production (Molden et al., 2001). Overdraft or mining of groundwater at a higher rate than recharge increases pumping lifts and costs from the lowered water table, causes land to subside (sometimes irreversibly damaging the aquifer), and induces saline intrusion and other degradation of water quality in the aquifer (Mark  et al., 2002). At the same time, increasing irrigation withdrawals and spatial and temporal variability in rainfall and surface flows are causing water scarcity in many parts of Tanzania such as the Pangani and Rufiji River basin (United Republic of Tanzania, State of the Environment Report, 2006).

Poor irrigation scheduling and management

Poor irrigation scheduling and management by the most of the farmers was assessed 22% to have caused water scarcity in the area (table 2). Appropriate scheduling and management facilitate effective water use efficiency in irrigation farming in the area. Thus, it is revealed that enhancing water management can reduce the impact of water scarcity (Falkenmark and Molden, 2008; Hanjra and Qureshi, 2010; Tahir, 2014). Therefore, the success of irrigation in ensuring food security and improving rural welfare has been impressive, but past experiences also indicate that inappropriate management of irrigation has contributed to environmental problems including excessive water depletion, water quality reduction, waterlogging, and salinization (Mark  et al., 2002).

Poor bed and furrow constructions

20 % of the respondents agreed that poor bed construction and furrows led to water deficit in the lake and drying off (table 2). The findings are in conformity with recent result of Sadiq (2019) who explained that furrows and inlet are poorly constructed to provide adequate water supply to the beds consequently leading to the drying up of beds due to lack of adequate skills and technical know-how among the farmers in the area.

Used of late matured crop varieties

It was revealed that 18 % of the farmers conceived that used of late matured crop varieties was among the agronomic factors affecting water shortage in the irrigation area (table 2). The used of local crop varieties with longer life cycle such as Lantan, and Jamila rice varieties have been identified by some farmers in the area where the drying of the Lake occurred at flowering stage consequently reducing the expected the yield. Sadiq (2019) explained in his findings that, Njuwa Lake is subjected to seasonal drying which leads to reduction of crop yield due to insufficient of water at flowering stage.  

Used of crop varieties with high water potentials

Only 15 % of the farmers agreed that used of crop varieties with high water potentials had also attributed to water shortage (table 2). It is another contributing factor that led to exacerbated reduction of water in the area. Because some crop varieties required high amount of water for their physiological and biochemical processes of growth and development than another crop respectively.

Table 2 Agronomic Causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

S/n Factors Frequency (n= 250) Percentage (100%)
1 Poor irrigation scheduling and management 55 22
2 Frequent and excess irrigation (over pumping) 63 25
3 Poor bed construction 50 20
4 Used of crop varieties with high water potentials 37 15
5 Used of late matured crop varieties 45 18

Source: Field Survey, (2020)

Hydro-Climatic Causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

Water Discharge from Njuwa Lake

Water discharge from Njuwa Lake attributed to 24 % of the farmers to caused water scarcity on the Njuwa Lake ass depicted on table 3. The Njuwa Lake was linked to River Benue with the aim of water harvesting by the Chochi irrigation Project which eventually led to the excessive water discharge from the lake to the Rive Benue due to abandoned of the project. This has adversely caused a significant reduction of water storage capacity of the lake to hold water all the year. Thus, the higher the water discharge from water source the lower the amount of water hold by the source.

High Evaporation Rate

22 % of the famers had conceived that high evaporation rate was the second hydro-climatic factor that resulted to water scarcity in the irrigation (table 3). Due to high temperature experienced in the study area most especially around December to April period when irrigation activities are carried out imposed water molecules from water bodies to cohesively detached leading to high evaporation rate. Thus, Sadiq (2020) explained that if the rate of evaporation is higher than the precipitation  the ground water surface will eventually reduce or deplete which consequently might lead to hydrological drought leading to drying of reservoirs, lakes, streams, rivers and cessation of spring flows and fall in the groundwater table.

Low Rainfall

Water scarcity in the area was also assessed by 20 % of the farmers to have caused by low rainfall amount experienced (table 3). The study area is seriously faced with decline in rainfall amount most especially in the recent decades affecting water availability in streams, reservoirs, lakes and dams respectively. According to the scenarios described in the IPCC Special Report on Emissions Scenarios (Jiménez et al., 2014 , Bates et al.,2008), changes in precipitation and temperature may lead to changes in runoff and water availability, which, in turn, could affect crop productivity (Jiménez et al 2014). Climate change directly have significant impacts on agriculture by increasing water demand, limiting crop productivity and reducing water availability in areas where irrigation is most needed or has a comparative advantage ( FAO, 2016). In addition, spatial and temporal variability in rainfall and surface flows are causing water scarcity in many parts of Tanzania such as the Pangani and Rufiji River basin (United Republic of Tanzania, State of the Environment Report, 2006; World Bank, United Republic of Tanzania, 2006).Thus, changes in precipitation patterns, the intensity and frequency of extreme events and soil moisture, runoff and evapotranspiration fluxes have already been observed and more important changes are expected in the future (Bates et al., 2008). Low rainfall years can lead to severe water shortages even in regions in which water is relatively plentiful in most years. (Mark et al.,  2002).

 High atmospheric temperature

High atmospheric temperature was evaluated by 19 % of the respondents that led to water deficit affecting irrigation farming (table 3). This is because an increase in atmospheric temperature is directly influencing the rate of evaporation, the high the atmospheric temperature the greater the susceptible of increase of evaporation from water bodies. The study area was characterized by increase in atmospheric temperature most especially during irrigation period (dry season) from December (33.4oC mean) to May (39oC mean) every year (UBRBDA, 2018). Thus, the combined effect of higher temperature and the reduction of water availability in regions affected by falling annual or seasonal precipitation leads to the increase of crop evaporative demands, with the consequent reduction in crop yield and agricultural productivity, where temperature constrains crop growth (FAO, 2011). High temperature facilitates evaporation rate while low temperature reduces the rate of water, moisture and vapour loss from the ground surface (Sadiq, 2020).

Low Humidity

14% of the farmers conceived that low humidity also contributed to water scarcity in the area. It is a known fact that if relative humidity of an area is high there would be high possibility of drought and offset of rainfall (table 3). The low humidity in the area during dry season may also be considered as climatic factor of water scarcity in the area. This is because the extent of saturation depends on the quantity of water vapour present in the air which might give rise to condensation and later excessive precipitation (Sadiq, 2020).

Table 3. Hydro-Climatic Causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

S/n Factors Frequency (n = 250) Percentage (p=100 %)
1 Low Humidity 35 14
2 Low Rainfall 50 20
3 High Atmospheric Temperature 50 20
4 High Evaporation Rate 55 22
5 Water Discharge from Njuwa lake 60 24

Source: Field Survey, (2020)

Managerial and Institutional causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

Linking of Njuwa Lake with River Benue

Linking Njuwa Lake with River Benue contributed greatly to the increased water scarcity in the area with about 22 % of the respondents as portrayed on table 4. The River Chochi irrigation project by the federal government had led extension of Njuwa Lake to link with River Benue with the aim of diverging water from river Benue to the dams to expand the irrigation farming in the area under Upper Benue River Basin Development Authority. Unfortunately, the project was abandoned for more than 9 years which led to release of water from the lake into the river Benue thereby holding less amount of amount than before. However, a little moved have been by the present government towards completion of the project in her effort to boost food production for the growing population. This result is in conformity with the report of Mark et al., (2002). In some basins, excessive diversion of river water has led to environmental and ecological disasters for downstream areas.

Abandoning of Chochi dam construction

Similarly, abandoning of Chochi dam construction project was also assessed by 22 % of the farmers causing water deficit in the area (table 4). Since, 1998 federal government started the construction of river chochi dam till date the project was uncompleted (plate 2) which in turn led to water scarcity in the area, the water expected to store in the dams are being passed away to river Benue. According to recent findings of Sadiq (2019) explained that the river is seasonal in nature which dries up before the onset of rainy season as a result of artificial rejuvenation constructed by the federal government to established River Chochi Irrigation Project.  Since 1998 the project was abandoned for about 22 year and yet not been completed to curtail the insufficient of water source in the study. Thus, in order to harness the precious water resources of a country, dams are constructed across streams and rivers. The construction of a wall type obstruction across a river helps in the storage of water upstream, forming what is known as reservoir (Garg et al., 2007). The creation of a dam is considered as a viable way of providing sufficient water for year round irrigation for improving agricultural productivity (Ladan, 2016).

Plate 2. The uncompleted structures of river Chochi irrigation project in the study area. (Adopted from Sadiq , 2019).

Poor drainage construction

16 % of the respondents agreed that poor drainage constructions in the farms had led to exacerbated water scarcity in the area (table 4). Farmers are locally and manually constructing furrows or gaps between beds to flood the water either from the boreholes or lakes into the sunken beds through minor water inlet (Sadiq, 2019). Moreover, poor irrigation practices accompanied by inadequate drainage have often damaged soils through oversaturation and salt build-up (Mark et al.,2002).

Lack of modern irrigation equipment

The farmers (14 %) in the area agreed that lack of modern irrigation equipment also facilitated towards shortage of water in the irrigation farmlands (table 4). Due to the use of local equipment and it was only few farmers who received technical training on the methods and techniques of irrigation farming before engaging in the practice and majority of them were not received any training (Sadiq, 2019) which may also be attributed to water scarcity in the area. Similarly, managerial factor received the second major factor; this is because most farmers are not equipped and trained on irrigation practices by the extension agents, and therefore they find it difficult to properly manage the crops as well as maintain the generators effectively (plate 3).

Plate 3. Shows the poor management and maintenance pump engine by some of the farmers in the study area (Adopted from Sadiq, 2019).

Rejuvenation of river Chochi

Rejuvenation of river Chochi by the Federal government was among the managerial and institutional causes of water shortage at Njuwa Lake in the irrigation area with about 14 % of the sampled population (table 4). Likewise, some farmers along river Chochi which directly takes water to Njuwa lakes in the area used the river as water source for irrigation. Even though, the river is seasonal in nature which dries up before the onset of rainy season as a result of artificial rejuvenation constructed by the federal government to established River Chochi Irrigation Project since 1998 which was abandoned for 20 years as was reported by the (Scope news report on 20th March, 2018; in Sadiq, 2019)

Lack of technical services

Lack of technical services among the farmers contributed about 12 % to an increased water shortage causing low crop yield in their irrigation farming (table 4). Similarly, Sadiq (2019) reported that few farmers were received technical training on the methods and techniques of irrigation farming before engaging in the practice and majority of them were not received any training. Thus, might also link to water mismanagement in the study area.

Table 4. Managerial and institutional causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

S/n Factors Frequency (n=250) Percentage (p=100%)
1 Lack of modern irrigation equipment 35 14
2 Lack of technical services 30 12
3 Rejuvenation of river Chochi 35 14
4 Abandoning of Chochi dam construction 55 22
5 Linking Njuwa Lake with River Benue 55 22
6 Poor drainage construction 40 16

Source: Field Survey, (2020).

Edaphic Causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

Siltation and sediment deposition

 Siltation and sediment deposition over Njuwa Lake over years appeared as the main factor limiting water availability by majority of the farmers (26%) affecting the yield negatively as presented on table 5. Hence, Mark et al.,(2002) further explained that deforestation causes rapid increases in erosion and sediment loads in rivers, in turn causing faster sedimentation of reservoir storage. In addition, Sadiq et al., (2019b) revealed that deforestation is among the main factor of soil degradation in the area thereby exposing the soil to ease of detachment and transportation during erosional process and deposited them into streams and lakes respectively. Sediment which reaches streams or watercourses can accelerate ban erosion, clog drainage ditches and stream channels, silt in reservoirs, cover fish spawning grounds and reduce downstream water quality (Wall, 2019). It was reported by Sadiq et al., (2019a) that averages of 41-80 hectares of land were destroyed by the flood in the study area of which sediment depositions are quite among.

Slope extent 

Similarly, slope extent accounted about 22% of the respondents to have contributed on the water scarcity scenarios in the area (table 5). Still some land remains uncultivated due to its distance from water source and topographic nature which might not support local manpower operations (See plates 4). Expansion of the farmland is achievable through inclusion of governmental and other related agencies into the project (Sadiq, 2019).

Plates 4. Shows the uncultivated land in the study area due to high terrain and remoteness of water sources (pictures taking by the Author: on 10th March, 2020) 

Siltation of tributary

18 % of the farmers revealed that siltation of tributary to Njuwa Lake had also led to water shortage that caused poor crop growth and low profitable farming (table 5). Some farmers along river Chochi which directly takes water to Njuwa lakes in the area used the river as water source for irrigation. However, river Chochi has a seasonal flow which dries up before the onset of rainy season caused by gradual deposition of sediment materials thereby reducing the depth of the river (plates 5). Thus, the Benue River is perennial and it has a rather low flow in the dry season and most of its tributary rivers are seasonal flowing only in the rainy season (UBRDA, 2012; Sadiq, 2019). Therefore, the farmers mostly cultivate vegetables than cereals to avert from drying up effects of the river. Generally, the bulk of the irrigation water is sourced from rivers and dams and conveyed via open channels or pipelines to irrigated farms for storage before use or direct application to rootzones (Richard and Philip, 2018). Upstream effects may include siltation, salination, and deforestation; (Curtin 2000; World Bank 1995; Berger 1994; Seckler 1992).

Plates 5. Shows the drying up of River Chochi in the study area (Adopted from Sadiq, 2019).

High rate of soil infiltration

High rate of soil infiltration has been conceived by 18 % of the farmers in the area to have caused water deficit below the irrigation requirement in the area (table 5). Clayey and loamy soils were the predominant soils in the area characterized by low infiltration rate due to the presence of micro-pore spaces and the soils possessed high water holding capacity which might not have significant effect of water deficit in the area. Thus, Quantification of infiltration is necessary to determine the availability of water to crops and to estimate the amount of additional water needed for irrigation (Ogban, 2017). According to the recent findings of Sadiq and Ardo (2020) in the area revealed that presence of high clay (60 %) content with moderate porosity (38 %) which may not favour good infiltration therefore resulting to high runoff on the arable lands and eventually developing rill to gully erosion.

Soil type

Only 16 % of the respondents in the study area agreed that soil type in the farm locations was among the edaphic factors that caused insufficient of water for agricultural activities in the area (table 5).  However, the clayey-loam soil characteristics are described by low infiltration and high hydraulic conductivity which may link to gradual formation of crusting thereby having low impact on reduction of water in the irrigation site respectively. Soil textural characteristics, specifically the percentage clay and sand, affect infiltration, because they determine whether infiltration rate is dominated by gravity forces or capillarity forces, under a given rainfall intensity (Ogban, 2017). Thus, clayey nature of the soils may easily predispose soils prone to erosion, because of the micropores availability in the soil which might lead to low infiltration and subsequently increasing run off progressively (Sadiq and Ardo, 2020). Hence, soil water is one of the principal factors limiting the growth of plants not only in the arid and semi-arid environment where total crop water requirements usually exceed water supply (Ogban, 2017).

Table 5. Edaphic Causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

S/n Factors Frequency (n=250) Percentage (p=100%)
1 Soil type 40 16
2  Slope extent  55 22
3 High rate of soil infiltration 45 18
4 Siltation and sediment deposition  65 26
5 Siltation of tributary 45 18

 Source: Field Survey, (2020).

Other Anthropogenic causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

Livestock consumption

Among other anthropogenic causes of water scarcity in Njuwa Lake Ruganye irrigation farming,   livestock consumption was the main factor revealed by the majority (26 %) of the farmers in the area as depicted on table 6. The Fulani pastoralist in the area usually carries their cattle and sheep to Njuwa Lake for drinking purpose, consuming a significant amount of water leading to gross reduction of water in the lake respectively. Similar report by Mark et al., (2002) revealed that direct water consumption by livestock is very small, but given the rapid increase of livestock production, particularly in developing countries, livestock water demand is projected to increase 71 percent from 1995 to 2025.Agriculture, animal husbandry and fishing, the three most prevalent industries in the region, have all been badly affected by water scarcity and low water quality (IOM; UNDP; IAU Iraq, 2011)

Water pollution

26 % of the respondents expressed that water pollution also contributed to the insufficient of water in the Lake where intensive irrigation activities are carried out (table 6).  Farmers in the area used chemicals and chemical fertilizer in excess which eventually contaminating the water in the lake consequently contributed to reduction of water quality and quantity affecting crops, animals and farmers health in the area respectively.  Many water quality problems have also been created or aggravated by changes in stream flows associated with water withdrawals for agriculture. Particularly problematic in situations of water scarcity, pollution reduces the volume of water available for safe use, and increases the cost of water treatment (Mark et al., 2002). Water pollution from agricultural crop production can be reduced at both point and non-point sources through integrated pest and plant nutrition management, and pollution control (e.g. stringent regulation and enforcement, and payments for ecosystem services). Water pollution stemming from intensive aquaculture and livestock production requires good management practices (Mark et al.,2002).

Fishing activities

Similarly, fishing activities accounted about 24 % of the farmers agreed to had led to water paucity causing negative effects on farming and farmers socio-economic status (table 6). Njuwa Lake is known with an intensive fishing festival over 40 years before the apparent effects of siltation affected the area. Some fishermen in the area uses water pumps engines and other techniques in harvesting fish in the lake which led to physical disturbance of the water in consequence reducing the water level in the lake at a detriment to other agricultural uses.

Industrial use

12 % conceived that industrial uses of water from the lake have also caused water insufficiency among the arable farmers in the area (table 6). However, there is few or no utilization of water by the industries in the area. Even though, some dwellers at Rugangye area used the water in the lake for building purposes and also those building along the lake due to rapid urbanization of an increased population in the area. According to (UBRBDA, Yola, 2012;  Festus, 2016) further explained that the flood plain of River Benue has a flat topography that allows the expansion of settlements and proximity of river as a source of water for various uses are major factors that attract various land users to the flood plain area thereby  causing large scale land cover conversion.

Domestic uses

Domestic uses of water from the Njuwa Lake in the area was received only 12 % of the respondents in the area causing unavailability of water for agricultural farming as portrayed on table 6 respectively. Considering the fact that the water in the lake is unsuitable for domestic use (cooking, drinking bathing etc) due to numerous health problems associated. This might be connected to low percentage of the respondents in the area. Thus, sources of water are many and varied, the levels of contamination also vary, and consequently a high degree of public health hazard can be associated with drinking water (Onweluzo and Akuagbazie, 2010). Similar finding was reported by Market al.,(2002) explained that the domestic and industrial sectors use far less water than agriculture, growth in water consumption in these sectors has been rapid Domestic water is used for drinking, cooking, bathing, and cleaning. Access to safe drinking water and sanitation is critical in terms of health particularly for children. Thus, unsafe drinking water also contributes.

Table 6. Other Anthropogenic causes of Water Scarcity at Njuwa Lake Irrigation Farming Area

S/n Factors Frequency ( n = 250) Percentage (p = 100 %)
1 Livestock consumption 65 26
2 Fishing activities 60 24
3 Industrial uses  30 12
4 Domestic uses 30 12
5 Water Pollution 65 26

Source: Field Survey, (2020)

Effects of Water Scarcity on Agricultural Activities of Water Scarcity at Njuwa Lake Irrigation Farming Area

Low crop productivity

Low crop productivity revealed as the major (16%) negative effect of water scarcity on irrigation farming in the area as presented on table 7. This result concurred with the finding of Igidi (2015), who reported that water scarcity has hit Sokoto State farmers around the border town of Illela people that engage in farming most at times incur losses because the plants drop and die and even when they survive, they yield just little produce. Growing water shortages are a particularly important source of yield growth decline (Mark et al., 2002).

Loss of fishing grounds

Similarly, loss of fishing grounds appeared as the second most negative effect of water scarcity on Njuwa Lake conceived by 12 % of respondents (table 7).  Fishing festival had known to take place over 40 years in the area which eventually discarded due to deposition and siltation of debris, sands and pebbles over the lake. According to recent result of Sadiq  et al., (2019), explained that Njuwa lakes is an ox-bow lake, which used to host the annual Njuwa fishing festival, until recently when it dried up mainly as a result of siltation effects thereby losing the festival and reducing the fishing activities which in turn affects the socio-economic status of the people directly.

Loss of capital and increase in poverty

12% of the farmers agreed that loss of capital and increase in poverty rate was appeared as the problem imposed by water scarcity in Rugangye irrigation area (table 7). Water scarcity in the area had led crop failure, decline in fishing activities and livestock starvation which are the primary occupation of the dwellers in the area which directly affects their income and led to poverty growth in the area. Similar report by NTA (2017) indicate that more than 150 irrigation farmers using water from Musawa dam in central part of Katsina State have lost 30 million Nigerian Naira (about 85,714 US Dollars) following sudden drying up of the dam.

 Abandoning of irrigation farming

Likewise, abandoning of irrigation farming by the farmers due to water deficit in the area attracted 12% of the respondents (table 7). Due to annual increased in drying up of Njuwa lake prompted most small scale farmers in the area discarding fertile land for irrigation in the area as depicted on plates 4. Similarly, Igidi (2015) reported that water scarcity has hit Sokoto State farmers around the border town of Illela where large tracks of land are unfarmed due to the scarcity of water.

Physiological stress and low crops growth

Physiological stress and low crops growth also attributed to 10 % of the respondents to had caused negative effects due to insufficient water in the area (table 7). Rice crop is the major crop grown at Njuwa Lake which requires sufficient quantity of water for its physiological development from emergence to physiological maturity. Therefore, any form of water deficit will reflects on the crop growth and subsequently to the yield respectively.  In Katsina State, crops covering 150 hectares of tomatoes, potatoes, maize, wheat, onions and other vegetables were damaged as they became wilted forcing some farmers to commence early harvest to salvage what they could of the crops (NTA, 2017).

Loss of employment opportunities

Also 10% of the respondents agreed that loss of employment opportunities appeared among the effects cause by water scarcity at Njuwa Lake (table 7). Some farmers in the area with low income cannot be able to cope with the water shortage through digging of wells and boreholes they have no option rather than to discard the farming operation, likewise the fishermen in the area. Findings in Iraq revealed that scarcity of water had led to increased levels of unemployment (IOM; UNDP; IAU Iraq, 2011).

Livestock starvation

Livestock starvation accounted about 10 % of the total respondents due to water deficit in the area (table 7). Water reduction and drying up of Njuwa Lake is rapid before the onset of rainfall coupled with the low quality of the water, most of the livestock grazing in the area are seriously affected which imposed them moving to river Benue scavenging drinking water.  Similarly, Monitors in Muthanna have reported that, in some villages, up to 90% of livestock have died as a result of scarce and low quality water supplies(IOM; UNDP; IAU Iraq, 2011)

Drop in water table and drying of soils

Drop in water table and drying of soils surfaces also ranked among the effects of water scarcity by 10 % of the farmers (table 7). In consequence it may lead to insufficient of water required for proper crop growth. The solution to decline of water table is expense which required construction of standard boreholes with powerful machines which is beyond the financial capability of most of the farmers in the area.  Correspondingly, in a number of regions in India water tables have been falling at average rates of two to three meters per year as the number of irrigation wells grows (Mark et al.,2002). The resultant depletion of groundwater aquifers has some analysts predicting that 25 percent of India’s harvest may be at risk in the coming years (Brown 2000; Gleick 2000; Mark et al., 2002). Likewise, in the year 2016, Saddiq (2016) reported that irrigation farming is endangered in Katsina State as source of water is drying up.

Waterlogging

Only 4 % of the respondents revealed that water logging on farmland is the result of excessive watering by some farmers in the area (table 7). Thus, Waterlogging develops when the soil becomes saturated because of a high or perched water table. It often occurs in more humid regions and is generally caused by over-irrigation or inadequate or poor drainage system and inconsequence it leads to poor plant growth due anaerobic soil conditions created. According to the report of FAO (1996) about 60–80 million hectares are affected to some extent by waterlogging and salinity on a global scale.  

Salinization

Salinization also conceived by only 4 % of the farmers to have imposed by water scarcity in the area as described on table 7 respectively. Salinization can be seen as the accumulation of salts in the soil through water evaporation from the upper soil layers—can occur naturally but is generally a problem under irrigated conditions. Salinization generally leads to decreased production levels, although in some cases the problem may be severe enough to obstruct agriculture altogether. It is estimated that on a global scale there are about 20–30 million hectares of irrigated lands severely affected by salinity (Mark  et al., 2002).

Table 7. Effects of water scarcity on agricultural activities at Njuwa Lake Irrigation Farming Area

S/n Effects Frequency (n= 250) Percentage (p=100%)
1 Low crop productivity 40 16
2 Physiological stress and low crops growth 25 10
3 Loss of employment opportunities 25 10
4 Loss of fishing grounds 30 12
5 Livestock starvation 25 10
6 Loss of capital and increase in poverty 30 12
7 Abandoning of irrigation farming 30 12
8 Water logging 10 4
9 Salinization 10 4
10 Drop in water table and drying of soils 25 10

Source: Field Survey, (2020).

Coping Strategies Adopted by the Farmers towards Mitigating Water Scarcity at Njuwa Lake, Rugangye Irrigation Area

The farmers in area having experienced the gross and rapid reduction of water in the study area in the recent decades have saddled strategically in adopting different ways in order to cope with the situation for proper crop performance. Result from table 8 shows that the use of early matured crops and digging of wells by the farmers were revealed as the main coping strategies adopted by most of the farmers (20 % each ) in the area, This result agreed with findings in Iraq which revealed that most agricultural areas identified as water scarce, where many farmers have been forced to change their crops to varieties that require less water, as in Missan (100% of assessed farmers), Basra (99%) and Wassit (96%) respectively (IOM; UNDP; IAU Iraq, 2011). In addition, a study conducted by Ladan and Sule (2017) shows that shortage of water is among the constraints to agricultural development in Bakori LGA. The study reported that irrigation along the Jare river has become difficult as farmers from both Bakori and Tsiga districts had to dig deep to reach the water table to collect water for irrigation purpose. The use of low water potential crop varieties was used by 16 % of the farmers as coping techniques on the insufficient problem of water faced in the irrigation site. Other farmers (14%) migrated to near Njuwa Lake as a main source of water in the area (table 8). Igidi, (2015) reported that the water scarcity has forced some young farmers to migrate to nearby Niger Republic where the Government provides water to farmers who later pay token fees after harvest In addition, proper irrigation scheduling and frequencies 12 % and rationing of water received 10 % of the total respondents as a strategic plan to mitigate water deficit affecting the crop performances. Only 8% of the farmers adopted mulching techniques to ameliorate the existing shortage of water at Njuwa Lake as presented on table 8.

Table 8. Strategies adopted by the farmers towards coping with the scarcity of water at Njuwa Lake, Rugangye Irrigation area

S/n Coping strategies Frequency (n =250) Percentage (p=100%)
1 Use of low water potential crop varieties 40 16
2 Use of early matured crops 50 20
3 Mulching techniques 20 8
4 Proper irrigation scheduling and frequencies 30 12
5 Migration to nearby water sources 35 14
6 Rationing of water 25 10
7 Digging of wells 50 20

Source: Field Survey, (2020).

  • CONCLUSIONS

It is obvious that food production demand for the growing population is increasingly affected by declining water availability for irrigation farming particularly in the Guinea Savannah region and semi-arid of the northeast part of Nigeria. This is associated with low rainfall amount, high temperature and evaporation, poor infrastructure development, rapidly increasing populations and poor water management strategies among most of the farmers. Similarly, in Yola South North-eastern Nigeria, Rugangye irrigation area appeared as the main area where intensive and profitable farming activities are carried out due to the water resources at Njuwa Lake for over forty years. The socio-economic benefits are apparent among the farmers and the people in the area. Until in recent years, the food production and farming operation are affected by the water scarcity due to increased reduction of water quantity on Njuwa Lake which is the main source of water for irrigation practices. Thus, there are quite factors that led to water shortage in the area which include agronomic factors (frequent and excess irrigation, poor management), hydro-climatic factors (high evaporation rate low amount of rainfall and high atmospheric temperature), managerial and institutional factors (Abandoning of Chochi dam construction and linking of Njuwa Lake with River Benue), Edaphic factors (silation and sedimentation of Njuwa Lake and slope extent) and other anthropogenic factors ( livestock consumption, water pollution and fishing activities) respectively. Among the major exacerbated effects of water deficit in the area include: low crop productivity, loss of fishing grounds, abandoning of farming, loss of capital and increase in poverty etc. In an attempt to cope with the existing problem farmers adopted various techniques in mitigating the predicament through the use of early matured crops, digging of wells among others. Therefore, there is need for complementary effort to maintain water supply reliability at technical, managerial, and institutional levels to reduce water scarcity for irrigation in order to meet up food production through irrigation in the area.

  • RECOMMENDATIONS

 Based on the research findings obtained from this study, it therefore recommends the following in order to address the challenge posed by the increasing water scarcity for agricultural activities in the area;

  • The extension workers should intensively train the small scale farmers on effective water use and management such as frequency, scheduling, efficiency of water use, crop water requirement, water productivity etc with the aim of minimizing excess use of water by the farmers.
  • Federal government should intensify effort on completion of the Chochi irrigation project commissioned since 1998; this will sufficiently store water for agricultural activities in the area.
  • Similarly, government at all levels and related agencies should therefore compensate for the negative impact of growing water scarcity on agriculture by alternative means through promoting the diversification of farming into less water-intensive crops, and supply of modern equipment for irrigation.
  • Rejuvenation and expansion of Njuwa Lake by removing the sediments deposition and silted materials to store substantial quantity of water should also be considered by the government and also to promote the use of sediments lying in the river, as building materials to the people in the area.
  •  Formulation of agricultural research and policy efforts on improving irrigation farming for sustainable food production.    

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Assessing the Quality of Peri-Urban and Urban Irrigation Water and Irrigated Soils Using Heavy Metals as Indicators in Minna, Nigeria.

ASSESSING THE QUALITY OF PERI-URBAN AND URBAN IRRIGATION WATER AND IRRIGATED SOILS USING HEAVY METALS AS INDICATORS IN MINNA, NIGERIA.

1BELLO, A., 2DAPELLUM, A.U, 3ALIYU, A.A. and 4AWELE OSAMUDIAME OSA-AFIANA4

1&2Department of Agric Tech. Adamawa State Polytechnic, Yola, Nigeria.

3Department of Crop Science, University of Jos, Nigeria.

4National Oil Spill Detection and Response Agency, Abuja Nigeria.

Authors’ Correspondence (email: abubakarbello663@gmail.com)

Abstract

This research work aimed at assessing the quality of Peri-urban and Urban irrigation water and irrigated soils using heavy metals as indicators in Minna, Nigeria. Water sample from five (5) irrigation sites namely: Kanfanin Kutare, Gidan Mongoro, Opposite Federal Secretariat, Morris and Ketaren Gwari all within peri-urban and urban Minna were collected  and their heavy metal pollutants concentration were determined, expected annual loading rate in the soil  and their values in the irrigated soil. The results revealed that only cadmium at site Ketaren Gwari was discovered to be above permissible limit (0.023 mg L-1 ) and at the same vein exceeding the expected annual loading rate in almost all the study sites while for analyzed soil values  only zinc and copper were recorded in all the sites but in small quantity. Therefore, it is recommended that periodic monitoring of the water and the irrigated soil analytically and agronomic approach (bio-remedy) with sound legislation should be adopted.

Keywords: Heavy metals, Irrigation water, Minna, Quality, Soils

1.  INTRODUCTION

            Irrigation is the artificial application of water to supplement rainfall as an aid to crop production. It is practiced during brief dry spells to supply all or nearly all the water required by the crops on farms in regions of low rainfall. There are various sources of water for irrigation but surfaces stream is the most popular (Bennett, 2009). Water quality is a measure of the condition of water relative to the requirements of one or more biotic species. The water quality used especially for irrigation is essential for soil quality and productivity (Lennteh, 2017). Human activities such as urbanization, agricultural practices, poor land management and sewage disposal have directly or indirectly affected the quality of water and making it unsuitable for some or all agro ecosystem component. Agricultural water sources may be of poor quality as a result of natural causes, contamination or both, hence, the need for improvement becomes paramount for the water to stand the test of any given use (Tsado et al., 2016).  Parameter use in evaluating quality of water is numerous, depending on the purpose for which the water is intended to be used for: aquaculture, drinking or irrigation. For purpose of this study some heavy metals pollutant (Lead, Cadmium, Chromium, Zinc and Copper) were used as indicator for evaluating the quality of the irrigation water as well as their rate of loading on soils irrigated by the water. Heavy metal are metal with density greater than 4gm-3 or the density of water, some of which are natural constituents of the earth crust while others are discharged into soil by irrigation with waste water as demonstrated by Nyamangara and Mzezewa (1999).  A number of the heavy metals are essential, example: iron, manganese, cobalt (Omar and Al-Khashaman, 2004). However, there are also heavy metals like Arsenic (As), Cadmium (Cd), Chromium (Cr), Mercury (Hg), Lead (Pb) which are non essential for living component of agro ecosystem and are toxic even at low concentration (Alloway and Ayers, 1993; Pulford, 2007).

            These water sources that were evaluated in this work comes from drainage channels that runs through the city of Minna, north central Nigeria receiving waste discharged at various points along its length from both domestic and commercial areas that include industrial effluents as well as waste from automobile mechanic workshops, thereby substantially affecting the quality of the water that is ultimately used for irrigation. According to Nyamangara et al., (2005), the quality of irrigation water is affected through discharges of partially and untreated effluents into rivers or stream that supply water for agriculture. Studies have been performed to assess quality of irrigation water within and around Minna (Tsado et al., 2014). But, there is dearth of information on quality of irrigation water with respect to heavy metals and their level of concentration on farming soil. The aim of this research was to ascertain the quality of the irrigation water using the following heavy metals: Lead (Pb), Cadmium (Cd), Chromium (Cr), Zinc (Zn) and Copper (Cu) as variables and to determine their level of concentration on the irrigated soil.

2. MATERIALS AND METHODS

2.1 Study Area

The study area was Minna (90 14′ N, 60 30′ E) in the Southern Guinea savanna of Nigeria. The climate is sub-humid tropics with mean annual rainfall of about 1200 mm (90 % of the rainfall is between June and August). The mean daily temperature rarely falls below 22 0C with peak of 40 0C and 36 0C between February to March and November to December respectively. The soils of Minna are predominantly Alfisols (USDA) developed from Basement Complex rocks ranging from shallow to very deep soils overlying deeply weathered gneisses and magmitites with some underlain by iron pan to varying depths (FDALR, 1990; Adeboye et al., 2011).

2.2 Study Site

The study was conducted at five (5) selected irrigation sites namely: Kanfanin Kutare (opposite IBB Specialist Hospital), Morris Fertilizer site, Ketaren Gwari (Mechanic village), Opposite Federal Secretariat and Gidan Mongoro all within Minna and its environs. These fields are under continuous cultivation both during the rainy and dry seasons. However, Kanfanin Kutare  has a natural body of water as its source of water for irrigation which serves as the control because it was presumed to have been devoid of so much contamination, the other four sites have drainage channels used as sources of water for irrigating the vegetables produced  during the dry season farming. The drainage channels run through residential areas and places of various activities. There geo reference were captured as follows:  Kanfanin kutare  (090  31‘ 54.7” N / 0060 35‘ 16.3” E, 090 31‘ 55.9” N/ 0060 35‘ 17.3” E and 090 32‘ 00.9” N/ 0060 34‘ 56.0” E), Morris  Site (090 35‘ 44.4” N/ 0060 32‘ 14.4” E, 090 35‘ 53.5” N/ 0060 32‘ 13.4” E and 090 35‘ 53.3” N/ 0060 32‘ 12.9” E), Ketaren Gwari (090 36‘ 14.9” N/ 0060 32‘ 16.1” E, 090 36‘ 16.1” N/ 0060 32‘ 16.5” E and 090 36‘ 12.9” N/ 0060 32‘ 16.9” E), Opposite Federal Secretariat  (090 37‘ 31.9” N/ 0060 31‘ 34.0” E, 090 37‘ 32.0” N/ 0060 31‘ 34.2” Eand 090 37‘ 33.6” N/ 0060 31‘ 34.9” E) and Gidan Mongoro (090 33‘ 40.3” N/ 0060 30‘ 29.0” E,090 33‘ 40.3” N/ 0060 30‘ 30.0” E and 090 33‘ 40.5” N/ 0060 30‘ 28.9” E).

2.3 Sampling and Analysis of Irrigation Water

Water samples at each site three (3) times at intervals during irrigation potential period in a year (December, March and June), considering the fact that water sample from the same source do differ in quality with time. Composite water samples at each sampling period were  collected  in the morning with  polyvinyl chloride (PVC) bottles that were first rinsed 3-4 times  with the water at the exact site of  sampling before taking samples and finally kept in dry cool shaded place prior to analysis (Pennstate, 2018). In the water samples, heavy metals (cadmium, chromium, lead, copper and zinc) were determine using atomic absorption spectrophotometer after digesting with 5 mL concentrated  nitric acid plus per chloric acid in 3:1 as described by Rodajevic and Bashkin (1999), concentration of total  heavy metals (lead, cadmium, chromium, zinc and copper) were determined in the sampled water by digesting the water with 5mL  concentrated nitric acid plus per chloric acid in 3:1 and analyzed by atomic absorption spectrophotometer (AAS) at a wavelength of 283.3 nm (Pb), 228.8 nm (Cd), 357.9 nm (Cr), 213.9 nm (Zn) and 324.7 nm (Cu). Total metals were determined by digesting and analyzing unfiltered sample.

2.4 Soil Sampling and Analysis

Composite soil samples were collected from the five (5) selected farmlands whose size ranged between 0.5-1.5 hectares that were irrigated with the sampled water.  Three (3) soil samples from each of  selected farmlands were collected using augering method at a uniform depth of 0-15 cm  amounting to fifteen (15) soil samples which were air dried,  disintegrated with wooden mortar and pestle  and sieved with 2mm sieve for heavy metals determination according to standard methods as follows; Heavy metals (cadmium, chromium, lead, copper and zinc) were determined using atomic absorption spectrophotometer after digesting the soil samples using aqua regia digest method (Baker and Amacher, 1982). Soil samples were digested for heavy metal analysis using the aqua regia digest method. One gram of soil for each sample, in duplicates, were transferred into a 100  ml digestion flask to which 10 ml of aqua regia (a mixture of concentrated HCl and concentrated HNO3 in the HCl:HNO3 ratio of 3:1) was added before covering the digestion flask with a watch glass and allowing the mixture to react over night (for at least 12 hrs). The next day, the mixture was heated progressively and boiled under reflux for 2 hrs after which the digestion flask was allowed to cool. The cooling column was rinsed with 15 ml of distilled water recovering rinse water in the digestion flask. The mixture was separated using a centrifuge at 1500 rpm for 5 min after which a supernatant solution was collected into a 50 ml volumetric flask before diluting to the mark with hot 2 M HNO3. The soil extract was analyzed for Pb, Cd, Cr, Zn and Cu using an atomic absorption spectrophotometer (model: Philips AA-10). Standard solutions were prepared in the concentration ranges of 0-5 mg L-1 for Pb, Cr, Zn and Cu while 0-1 mg L-1 for  Cd. A blank determination was also carried out.

Annual heavy metal loading expected in the soil of the study site was estimated using the following equation:

 ALR= C*Q*D*F*S*10-6 …………………………………………………………Equation    1

Where: ALR= annual loading rate, C= Elemental concentration in sample water (mg/ L), Q= Quantity of irrigation water (L/ hr/ ha), D= Duration of irrigation (hrs/ day), F= Frequency of irrigation (days/ week), S= Length of season (week/ yr) and 10-6= Conversion factor from mg /L to kg/L.

3. RESULTS AND DISCUSSION

3.1 Irrigation Water Analysis          

 Concentration of Lead (Pb) in all collected water samples ranged from 0.010-0.017 mg L-1 with zero value recorded at the control (Kanfanin Kutare) site, Morris and Opposite federal secretariat  (Table 1). The entire results obtained were less than standard permissible limit (0.05 mg L-1) in water set by World Health Organization (WHO) for Pb in water as reported by Zigham et al. (2012). Exchangeable Cadmium (Cd) content in water samples from the various sites ranged from undetectable to 0.023 mg L-1 (Table 1). The Cd contents in all samples were within the permissible limit of 0.01 mg L-1 recommended by WHO (Zingham et al., 2012) except that of Ketaren Gwari, which was 0.023 mg L-1 a double value to the maximum permissible limit. Similarly, Cr content in the sampled water for the sites ranged from not detected to 0.060 mg L-1. Samples from the control site Kanfanin Kutare and opposite Federal Secretariat recorded noting while concentration in sample from Ketaren Gwari was the highest followed by Gidan Mongoro with the corresponding values of 0.060 mg L-1 and 0.057 mg L-1 respectively (Table 1). Nevertheless none of the samples fail WHO rating of 0.1 mg L-1 (Zigham et al., 2012). Zinc (Zn) concentration in the sampled water varied from 0.023–0.440mg /l (Table 1)  for all the water sources, with the control (Kanfanin Kutare)  having  0.023mg L-1 while Ketaren Gwari has 0.440mg L-1. Reference to permissible limit allowed by WHO for Zinc in water of 5 mg L-1  as quoted by (Zigham et al., 2012). One will concluded that these values for the water are by far less than the established maximum limit. Mean concentration of Cu in all the collected water samples for the period of review from the different sites are between 0.043–0.083 mg L-1 (Table 3.1). All the values reported were below the permissible limit of 2 mg L-1 allowed by WHO for Cu in water (Zigham et al., 2012). Keteran Gwari source takes the lead virtually in almost the analysed variables this may link to its closeness to the mechanic village. 

3.2 Expected annual loading rates (ALR) in kg/ha/year of heavy metals

Regarding to Expected annual loading rate (ALR) limits in  kg ha-1 Year-1 by United Kingdom as quoted by Nyamangara et al. (2005) of 7.5, 15, 0.15, 15,15 kg ha-1 Year-1 for Cu, Zn, Cd, Cr and Pb respectively. Cadmium was the only metal found above the set limit in all the sites with exception of Morris (Table 2). The reason for cadmium exceeding limit may be attributed to its high mobility and bioavailability in relation to other metals (Singh and McLaughlin, 1999).

3.3 Heavy metal Concentrations in irrigation water samples at the study area over time (Seasons)

Row results of irrigation water quality indices depicted in the Table 3 show that there were variability between the replications (seasons), this may be partly as a result of differences in the season of sampling.

3.4 Heavy metal content in soils of the study area

All the metals analyzed, ( lead (Lb), cadmium (Cd), chromium (Cr), zinc (Zn) and copper (Cu) one will authoritatively said the results presented in table 4 did not exceed limit. Generally, Ketaren Gwari site top the list in concentration for all the analyzed metal across all the locations with exception of Chromium which was higher at Morris but the differences are in close range. These unveiled results may be due to close proximity of Ketaren Gwari site with automobile mechanic workshops whose workers may turn the site as dumping ground for their repairs waste which are mostly metal base.  In fact, there were some metals that was not even detected at other sites like Pb in Kanfanin Kutare and Opposite Federal Secretariat, same to Cr at the former. Also, Cu were reported in appreciably amount a cross all the sites even though it did not exceed set limit, this could be as a result of usage of Bordeaux mixture which is copper base in controlling fungi in the study area as attested by farmers during interaction at the cause of the research. Continuous application of Bordeaux mixture on soil could lead to gradual built up of some metals particularly copper to a toxic level for agro ecosystem according to Agbede (2009).

Table 1:  Means values of heavy metals in the irrigation water of the study areas.

Properties Kanfanin Kutare Gidan Mangoro Ketaren Gwari Morris Opp. Fed. Secretariat
Pb (mg/L) ND 0.010 0.017 ND ND
Cd (mg/L) 0.003 0.003 0.023 ND 0.010
Cr (mg/L) ND 0.057 0.060 0.017 ND
Zn (mg/L) 0.023 0.120 0.440 0.230 0.197
Cu (mg/l) 0.070 0.083 0.057 0.047 0.043

ND: Not Detected

Table 2: Expected annual loading rates (ALR) in kg/ha/year of heavy metals at the study sites

Metal Sites
A B C D E ALR Limit in Kg/ha/yr
Pb 0 0.37 0 0 0.56 15
Cd 0.19 0.19 0.56 0 0.75 0.15
Cr 0 1.12 0 0.37 1.12 15
Zn 0.37 2.25 0.94 4.31 8.24 15
Cu 1.31 1.5 0.75 2.62 1.12 7.5

A= Kanfanin Kutare, B= Gidan Mongoro, C= Opposite Federal Secretariat, D= Morris, E= Ketaren Gwari

Table 3: Heavy metal  Concentrations in irrigation water samples at the study area over time.
Time   Source   Pb   (mg/l) Cd   (mg/l) Cr    (mg/l) Zn    (mg/l) Cu   (mg/l)
December, 2017 Kanfanin Kutare 0 0 0 0.01 0.04
Gidan Mangoro 0.02 0 0.06 0.13 0.04
Opp. Fed. Secretariat 0 0 0 0.19 0.01
Morris 0 0 0.01 0.17 0
Ketaren Gwari 0.04 0.01 0.08 0.36 0.02
March, 2018 Kanfanin Kutare 0 0.01 0 0.01 0.03
Gidan Mangoro 0.01 0.01 0.04 0.12 0.03
Opp. Fed. Secretariat 0 0.03 0 0.17 0.01
Morris 0 0 0.03 0.22 0
Ketaren Gwari 0.01 0.03 0.06 0.39 0.01
July, 2018 Kanfanin Kutare 0 0 0 0.05 0.14
Gidan Mangoro 0 0 0.07 0.11 0.18
Opp. Fed. Secretariat 0 0 0 0.23 0.11
Morris 0 0 0.01 0.3 0.14
    Ketaren Gwari   0 0.03 0.04 0.57 0.14

Table 4: Some heavy metal content  in soils of the study area

Parameter Kanfanin Kutare Gidan Mangoro Opp. Fed. Secretariat Morris Ketaren Gwari
Lead(Pb) (mg/kg) ND 0.19 ND 0.12 0.41
Cadmium(Cd)  (mg/kg) 0.13 0.20 0.11 0.21 0.68
Chromium(Cr)  (mg/kg) ND 2.48 0.17 4.91 4.18
Zinc (zn)  (mg/kg) 4.63 8.15 3.09 8.47 13.04
Copper (Cu) (mg/kg) 9.62 18.7 3.50 4.63 24.82

ND: Not Detected

4. CONCLUSION

The results of  irrigation water from all the selected sources: Kanfanin Kutare (opposite IBB Specialist Hospital), Morris Fertilizer site, Ketaren Gwari (Mechanic village), Opposite Federal Secretariat and Gidan Mongoro reveals that all the tested variables: Lead (Pb), Cadmium (Cd), Chromium (Cr), Zinc (Zn) and Copper (Cu) are within the permissible limit with exception of cadmium at Ketaren Gwari site exceeded the standard(0.02mg/L) and this could be attributed to known chemistry of the variable for high mobility, perhaps this should be the reason for the estimated expected annual loading rate values showing only cadmium was found to be above the set limit in almost the sites. Conversely, of all the heavy metals evaluated on the soil of the study area zinc and copper were the only two found to be present in all the sites. This may be due the agronomic practices apply in controlling fungi using  Bordeaux mixture a copper base substance by farmers of the study area and/or drained water from the zinc roofing since the study area was an urban, to some extent semi-urban settlement. The research suggested periodic monitoring of the irrigation water analytically, addition of  organic matter to the soil to stem down cadmium mobility, proper farm sanitation as a means of controlling fungi instead of chemicals and sound legislation on building/town planning and waste disposal.

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Tsado, P. A., Lawal, B.A., Igwe, C. A. & Eze, P. C. (2016). Evaluation of River Water Quality for Irrigation Purpose in Niger State, Nigeria. Gashua Journal of Irrigation and Desertification Studies, 2(1), 129-138. ISSN: 2489-0080.

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Social Identities Matter: Diversity and the Quagmire of Ethno-Religious Identification in Workplaces in Nigeria.

SOCIAL IDENTITIES MATTER: DIVERSITY AND THE QUAGMIRE OF ETHNO-RELIGIOUS IDENTIFICATION IN WORKPLACES IN NIGERIA.

Miebi Ugwuzor

Department of Management, Niger Delta University, Wilberforce Island, P.M.B. 071, Yenagoa, Bayelsa State, Nigeria. +2348036666332. miebi.ugwuzor@ndu.edu.ng

ABSTRACT                                                                

The examination of identity issues bothering employees and hindering the full attainment of their productive potentials were the major focus of this work. Nigeria’s informal social makeup comprises of persons of diversified ethnic and religious extractions variably distributed in a vast population size of persons with ample potentials and diversified strengths capable of usefully contributing to the fortunes of workplaces. However, this has not played out as expected. This work highlights the behavioral implications of social-identification in workplaces and intends to lend a voice to the discourse on social identification, stressful work experiences as well as workplace behavior management. It also raises questions on phenomenological interpretations in the minds of contemporary compatriots of Nigeria as a nation of people bound in freedom, peace and unity. The social-identity and the social stress theories were explored in an attempt to explicate the interpretations of the meanings persons make of their behaviors and those of their colleagues at work.  The outcome of such ingrained analysis depicts the extent to which identities they assume matter in the situation being experienced. This paper suggests amongst others that firms should stress and institutionalize the primary focus of corporate success over primordial sentiments in workplaces for the betterment of individual, workplaces as well as for national development.

Keywords: Development, diversity, ethnicity, equity, identity, religion, Nigeria

INTRODUCTION

The 1914 amalgamation of the Northern Nigeria Protectorate together with the colony and protectorate of Southern Nigeria as a unified British Administrative Colony may have signaled the effective take off of the Project Nigeria which is still very much on course and with very great potentials for higher developmental goals attainment. Nigeria’s natural, human as well as other apparent and latent resources are enormous and could be more beneficial to her citizenry and for national development if harnessed and properly utilized.  However, several features of sub optimization have been observed in the state of her national development over time and possible solutions proffered for the reasons adduced (Adams, 2019; Ugwuzor, 2019). Suffice it to say that concerted attempts are ongoing at articulating the mores, values, norms, codes of conduct, legislations as well as other efforts at putting the right developmental building blocks in place.

Nigeria has very talented and industrious persons many of whom are willing and able youths ready to be positively engaged in productive ventures. The amassed work behavioral outcomes of persons who are engaged in the various productive sectors of an economy culminate to its success or failure depending on the direction of the outcomes. It is the desire of this work that the direction of employee outcomes is highly positive. However, this could be possible only if employees are in their right frame of mind.   Undoubtedly, the average employee working in the contemporary Nigerian work environment could be inundated with myriads of issues capable of destabilizing the mind frame and adversely affecting work behavior. However, if an employee is bothered by a basic unit of demography such as identity which he/she may not be able to do much about, the tendency of the work behavioral outcome to nose dive is high (Jaja & Ugwuzor, 2014). One’s identity is who one is.  Persons may have identity crises when they either lose track of who they are or do not feel happy with who they are. A major transformation in a person’s personality and the way they do things may occur if they have an identity crisis. Nigeria is made of about 250 ethnic groups with several languages and dialects (The World Factbook, 2019). The beauty of such diversified strengths is that the uniqueness of each group compliments the other and when pooled together in a coherent manner will be for the mutual benefit of all.  This may also imply that the population may comprise a vast array of potentially skilled persons of diverse creeds and skill sets which are variably distributed among the groups and are available to do meaningful work. However, this has not been the case as the various outputs of productive sectors have left much to be desired.  It is apparently perceived that each ethnic group attempts to assert dominance over the other in the eyes of the other. This perceptual position seems to be permeating workplaces.

One of the contemporary workplace practices is to promote diversity in their employment profile by bringing in persons of various levels of diversity not only to be able to get various shades of opinions representing the various groups and interests but as a social responsive stance. However, misconceptions, misunderstanding, mistrust and misinterpretations, due to ethno-religious lines of thought, have over the years made Nigeria to miss growth and developmental opportunities. There is an apparent disconnect between the supposed national values, beliefs and orientation and actual behavioral display as exhibited by employees in workplaces. Ethnic and religious bigotry have destroyed shared corporate culture and interest of commitment to excellence which should be the driving force towards corporate success. This man-made, self -inflicted and self-destructive behaviors seem to thrown the doctrines of unity in diversity to the winds in spite of all the cogent efforts through such lofty programmes of National orientation   and re-orientation such as the National Youth Service Corps (NYSC) Scheme, the Federal Unity Colleges and guided implementation of the Federal Character Principle which is intended to make every ethnic group eligible to be considered equally in the scheme of things in workplaces in Nigeria.

The multilingual, multi-religious, multicultural nature of Nigeria’s informal social makeup makes it imperative for individuals to tend to identify themselves every now and then along these lines  as these social groupings tend to define and determine perks accruable at any particular time. One definition of social identity refers to a person’s sense of self, derived from perceived membership in social groups. When one feels that one belongs to a group, there is the tendency that one may very well derive at least a portion of sense of identity from that group (Charness & Chen, 2020). One’s ability to identify oneself with the social categories with the most privileges and benefits at any point in time will tend to be most attractive and beneficial to the individual. Thus perpetrating the drawbacks of the in-group- out-group favoritism and undermining the meritorious use of one’s skills and ability to contribute to society. Whether one chooses to identify with an ethnic and/ or religious group or not, persons will tend to categorize themselves and others along such social categorizations and treat them with their own preconceived biases.

The examination of social identity issues bothering employees as well as the workplace implications of their work behavioral manifestations necessitated this work. This work promises to contribute to the discourse on social identification, stressful work experiences and workplace behavior management in a diversity laden work setup with overtones for diversity and inclusion strategies for the betterment of individual, workplaces as well as for national development.

THEORETICAL BACKGROUND

Situational factors such as the name one bears, the friends one keeps, as well as social group, location or associates at any given time, seem to be a determining factor in the definition of oneself. In other words the individual or social nomenclature adopted, associated with or presented may be an object for persecution or concession. To this end, persons tend to be overly conscious of and concerned about ones identifier at any given time in order to garner as much privileges as possible. Mustapha and Ehrhardt (2018) posited that indigeneship translates economic competition into interfaith or political confrontation as well as intensifies  the ethnic or religious nature of the struggle over ownership, control and resources The quagmire of ethno-religious identification in Nigerian workplaces seems to make mockery of the ‘unity in diversity’ being largely proclaimed. Social identification is the way oneself is defined in the context of the social situation one finds oneself. In workplaces in Nigeria, the inability of one to see oneself as the same irrespective of the environment is of great concern. Despite the professed unity in diversity, persons seem to lack trust in the system as they perceive inequity and lack of transparency which makes them overly worried about how they identify themselves. For example, when persons feel that career advancement is a function of specific in-group membership as well as other inherent autochthonous claims, the fear of sabotaging their career makes them tend to assume different identities at different times. This work relies on the social stress theory as well as the social identification theory to elucidate the innuendoes of social identification and the dynamics in an ethno-religious conscious work environment.

The Social Stress Theory highlights issues of social inequality and disparities. The theory postulates that persons with disadvantaged social status are more likely to be exposed to stressors and to be more vulnerable to stress because they have limited psychosocial coping resources (Mossakowski, 2014). Depressive symptoms as well as other presentations of such dispositions tend to lead to a higher risk of mental health and well-being issues (Mossakowski, 2014; Ward, Feinstein, Vines, Robinson, Haan & Aiello,2019). The Social Identity Theory sets the tone on how persons identify, categorize and compare themselves and the groups they belong to with other individuals and groups in social settings (Tajfel & Turner, 2004). The theory provides the fundamentals in the understanding of the psychological foundation for intergroup prejudice. Ujoatuonu, Kanu, Ugwuibe and Mbah (2019) have opined that Nigeria is  a heterogeneous and multi-ethnic state beset by numerous cleavages and centrifugal tendencies. The Country is characterized by ethnic, religious and cultural pluralism which has been part of the very fabric that defines people’s identity. The Nigerian situation seems to be an abuse of social identification as this is often used as an instrument of exploitation, manipulation and ennoblement to obtain the most privileges to the detriment of the generality. Primordial sentiments have been indicted as being responsible for the dearth of national patriotism, values and respect for democratic cultures all of which affects nation building (Sokoh, 2019). The consequential effects of identity could be both positive and negative for firms.  As a positive force, Mossakowski (2018) observed that a strong ethnic identity, which encompasses ethnic pride and knowledge, involvement in ethnic practices, and a cultural commitment or feeling of belonging to one’s ethnic group, significantly benefits mental health. On the other hand, one’s sense and commitment to a social group could be dangerously limiting. The issue of self-identity, in the negative sense which is the hallmark of in identity politics, has been seen as a veritable tool which has unfortunately been used more and more as a wedge to separate subgroups (Charness & Chen,2020). The Social Identity Theory provides a basis for gaining a more precise and ingrained comprehension of interpersonal interactions in cases of ethnic and religious mixes.

 Ethnicity and religion are two key diversity dimensions which have bedeviled the progressiveness of the productive capacities of several workplaces in Nigeria. Osimen, Balogun and Adenegan (2013) have noted that ethnicity, tribalism, politics of prebendalism, elitism, greed, antagonism, civil strives, corruption and so on have  motivated crises and underdevelopment  in Nigeria. Osaghae (2020) on his part adduced that ethnicity is a problematic phenomenon whose character is conflictual rather than consensual. Osaghae (2020) further stressed that ethnicity is a conscious behavior based on ethnic identity or loyalty in a competitive situation involving more than one such identity, which is aimed at furthering interests of the individual and/or group. It has been noted that power and resource allocation are monopolized by a selected few in the pluralistic society at the expense of other groups (Onwumere, 2019). The reoccurring ethno-religious conflicts therefore, is inextricably tied to the problem of identity and the problem of citizenship which are rooted in the psycho-political perception of Nigeria by an average Nigerian (Sokoh, 2019). Thus, making bickering and rivalry among the diversity dimensions of the component units a major challenge in the quest for unity among the diverse groups. This situation may not be too different in the case of religion where the primordial sentiments tend to be exploited by religious bigots through epithets of derogatory and pejorative allusions as well as other myopic and self-destructive tendencies that cause divisions and intolerance in order to gain access to power and control of resources. Ogunleye (2021) seem to insinuate that religious pluralism in Nigeria may be expressed informs of oppression, domination, exploitation and manipulation.

BEHAVIORAL IMPLICATIONS OF SOCIAL-IDENTIFICATION IN WORKPLACES

The more people are overly consciously reminded of who they are or the social grouping to identify with in workplaces, the more certain behaviors antithetical to growth, creativity and harmonious working relationships, become manifest. Some of the said behaviors will be highlighted in this section to lend a voice to the discourse diversity and inclusivity and amplify the behavioral implications of self-identification.

OPPRESSIVE TENDENCIES

A measure of diversity Management is the extent to which employees are bothered about issues that differentiate them from others. In other words diversity will be said to have been adequately managed in workplaces if and when employees do not have concerns on what differentiates them from colleagues at work.  In work scenarios where certain individuals or groups believe that the structure and mandate for the control of power and resources in the firm lie within them,   there is the tendency to want to lord it over, and invariably, bully the other individuals or groups as the case may be. The place will be devoid of the basic elements of a progressive work climate.  The oppressed party or parties feel threatened, intimidated and humiliated. Ojedokun, Oteri and Ogungbamila (2014) believe that the workplace is supposed to be a second home for employees and that certain social etiquette and norms for appropriate interpersonal relationship ought to be adhered to. When this is not the case, then workplace bullying occurs. Workplace bullying include hostile   behavioral expressions in the workplace that tend to use physical, verbal, or psychological cues to cause intimidation fear, or distress to the victim (Namie & Namie,2011).

TURNOVER PROPENSITY

 Progressive firms ought to hiring and make conscious efforts to retain their best hands. Under-performing employees may also be spurred to higher performance by understudying high achievers. This is for the benefit of the firm. However, when the workplace does not have an atmosphere of friendliness and employees do not feel appreciated for their valued contributions especially because of their social identities, the employee turnover propensity is likely to increase. Pawirosumarto, Sarjana and Gunawan (2017) have observed that creating a safe, equitable and welcoming work environment is  challenging but when critically considered could result in positive employee performance and job satisfaction. Zambrana, Valdez, Pittman, Bartko, Weber and Parra‐Medina (2021) put forward that workplace discrimination triggers stress levels as well as depressive symptoms and affect employee early morbidity and premature departures.

SECRECY

Some desirable features of a good work environment are openness and transparently honest communication and interpersonal relationships.  When firms’ mission and goals are paramount in the minds of employees, they are challenged to make meaningful contributions towards such goals. However, when there are disaffections, rancor, misconceptions and misinterpretations    between individuals and groups, persons may be unwilling to divulge useful information or suggestions that will make the ‘enemy party’ succeed to the detriment of the organization. Workplace rivalry has led to aggression and secrecy which has negatively impacted on employee performance in organizations(Igbadoo, Lawal, Shehu & Ikebuoso, 2021).

CONFLICTS

Personal and social identity are fundamental and symbolic tools with which individuals can adapt to reality which has implications for personal and social adjustment and inclusiveness (Crocetti, Prati & Rubini, 2018). Selfhood and identity are affected by the groups to which people belong as well as the potential benefits for the individual (Ellemers, Spears & Doosje, 2002). Conflict of people interests who gets what power, position, supremacy struggles, with increased cases of factionalization and situations that demand answers to questions such as what benefits accrue to us? Who gets the lion share? What opportunities do I and my group members have in this deal? The coveted social fabric for unity could be abraded by divisive politics, interpersonal conflict, ethno-religious rancor, over consciousness of one’s identity and so on.

DELIBERATE SABOTAGE

An unhealthy workplace is characterized by the prevalence of bitterness, rancor and hostility. In such a scenario, employees perceive the lack of understanding, cooperation, respect, compassion, support, haphazard upward mobility standards, to mention a few. In An unhealthy workplace   employees seem to have no sense of belonging, and find the work as physically and psychologically sapping. Depending on the work structure, employees who work on a nine to five or eight-to –four basis will spend at least one third of the day at the workplace.  If the workplace atmosphere tends to lack cooperation and values of shared purpose as well as understanding of interpersonal relationship, especially when there is lack of trust in the intentions of coworkers, there is ample reason for fear and doubts (Wu, He, Imran & Fu, 2020). Employees could seem paranoid with inter group tensions and distrust with less thought and effort at doing productive work. These will not only affect the functionality of the employees and productivity for the firm but also enhance firm’s chances of failure. Employees feel unhappy and detached from their jobs. They have no desire to take prosocial actions nor any voluntary helping behavior. The employees feel lack of commitment to excellence and may tend to deliberately sabotage the effort of a person in charge of an organizational activity just because the person is not in the desired social in-group. Sabotage is a deviant behavior commonly associated with injustice (Ambrose, Seabright & Schminke,2002) The disgruntled person will vent his/her venom  on any individual or organizational process in order to give him/herself a sense of justice.  This can be evident in an employee’s deliberate attempt at reducing pace, quality and /or quantity of work output, theft of firms resources including time. Ezeh, Etodike, and Nwanzu (2018) have described employee sabotage as a dimension of counterproductive work behavior in organizations by an employee which serves the best interest of the employee without the consideration of the norms of the organization or her goals.

VIOLENCE

Violence could range from physical or verbal assaults, hate speeches, threats to life and other threating tendencies. Not much will be achieved in a workplace where violence holds sway. Osaghae (2020) surmises that the need to belong is a basic human need and that the Nigerian state, as with other African countries, is trapped in a crisis of belonging  and further asserts that Nigeria suffers from deep seated divisions which cause major political issues which are often vigorously and violently contested along the lines of intricate ethnic, religious and regional divisions. Slavich (2022) suggests that many of life’s most impactful experiences that affect interpersonal cognition and behavior involve either social safety such as acceptance, affiliation, belonging, inclusion or social threat such as conflict, isolation, rejection, aggression, devaluation, discrimination and exclusion. It has been advanced that a single maladaptive encounter in the workplace is enough to adversely affect an employee’s stress level (Lazarus, 2020). This inability to cope with high levels of psychological distress could lead to the manifestation of violent behaviors (Hill, Mossakowski & Angel, 2007).

 DELINQUENT WORKPLACE BEHAVIOR

As big shortcomings of social identity, favoritism and discrimination have made employees to adopt certain behaviors and attached certain stereotypical positions towards others outside their categorical groupings. A Nigerian Pidgin English paradoxical aphorism that Monkey dey work baboon dey chop tend to control of the sensibilities of marginalized out-groups.  The axiom implies that marginalized group members feel they work hardest and benefit the least. Disfavoured persons may perceive injustice and tend to behave in certain delinquent manners to the detriment of the firm. Such delinquencies could be expressed as forms of deviant behaviors. Deviant behaviors also known as disruptive behaviors are voluntary behaviors that violate significant organizational norms and in so doing threaten the well-being of an organization itself, its individual members, or both (Afzali, Nouri, Ebadi,  Khademolhoseyni & Rejeh, 2017; Bennett, Marasi & Locklear, 2018). Many reasons have been attributable to cause deviant workplace behaviors. They include individual, organizational, environmental, and social factors such as personality characteristics, dissatisfaction, frustration, anger management issues, perceived injustice and so on (Afzali et al., 2017).

WAY FORWARD

Nigerians are supposed to be Nigerians irrespective of where they come from in terms of linage or origin. Their contributions to society should be reckoned by their skills or abilities. The apparent  rivalry between  and among the majority  and minority ethnic groups, the  struggle and tussle for power and resource control  of the  various dichotomous groups as well as other subtleties in the diversity mapping in the contending situations may have made the Nigerian ethnic  and other in-group- out- group factionalization very convoluted.  Each time the talk of the unity and indivisibility of Nigeria is highlighted and the need to select persons for momentous tasks, the divisions seem more pronounced which negates the core intension which is capacity utilization for National development. As a point of departure from the foregoing precarious and undesirable situations, organizations should have strong institutional frameworks with the right intensions.

The organizations should not be weary in the effort at intensifying employee thought processes towards believing that each person has a common stake and that all employees have a shared ownership of the success or failures of the organization thus eliminating negative stereotypes about social out-groups. By making the organizations success the general focus and interpersonal bonding institutionalized, primordial sentiments could be eliminated.

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The impact of work location models and adaptive performance in oil and gas firms in Rivers State

THE IMPACT OF WORK LOCATION MODELS AND ADAPTIVE PERFORMANCE IN OIL AND GAS FIRMS IN RIVERS STATE.

1Josiah-Hart Inyingiwarifagha Valerie & 2Prof. Omoankhanlen Joseph Akhigbe

1,2Department of Management, University of Port Harcourt

Abstract

This study empirically examines the extent to which work location models relates with adaptive performance in oil and gas industry. Hybrid and remote work location models were considered the dimensions of work location models against adaptive performance. The accessible population of this study was 656 administrative staff from five (5) selected oil and gas firms in Rivers State. The study population was chosen due to easy accessibility to information and for an unbiased conclusion in order to achieve the aim of the study. The sample size for this study was 248 which was obtained using the Taro Yamane’s formula. The primary data was collected with the aid of structured questionnaires which were administered to respondents via online survey. Spearman Rank Order Correlation Co-efficient statistical analysis was employed in analysing the hypotheses in order to determine the correlation between the variables with the aid of Statistical Package for Social Sciences (SPSS). Our findings revealed a significant correlation between on site work and task performance. The study recommended that management of oil and gas firms should embark on proper planning and execution to incorporate the several work location models so as to encourage flexibility and adaptability in order to survive the environmental changes associated with the business world.

Keywords:  Adaptive performance, oil and gas, work location, performance, Hybrid model, remote model

Introduction

Work location Models are work arrangements formulated by the management of an organization and its top executives as regards the definition of objectives, motivation, coordination of activities and allocation of resources (Birkinshaw& Goddard, 2009).  Georgetown University Law Center termed WLM Flexible Work Arrangements (FWA) and defined it as a work structure that alters the time and/or place that work gets done regularly (Sloan, 2010). Work location models simply put, are work arrangements provided or formulated by management as a form of motivation to leave the employee open to choices of preferred work location. Work location models help managers organize the resources and activities of the organization towards achieving organizational goals. Work location models identify with the fact that there is no “one- size-fits-all” approach to work; rather each firm develops a model based on the needs of the firm and the preference of the employee (Griffis, 2021).

Before COVID, all jobs were done onsite except in rare cases where the organization permits work away from the office, also known as telework. Since 2020, traditional work locations have been altered by the pandemic, it drastically increased the rate of change of work models thereby providing employees richness of choice, flexibility and autonomy- humanizing work (Sharply, Simpson, Miller & Dunne, 2020). However, the concept of alternative work location models is not new to the world of business as the idea of telework was first developed in the 1970s by Nilles to describe an alternative work arrangement aided by information communication technology (ICT) as a means of avoiding daily commuting (Nilles, 1975; Nilles, 1976 & Pratt, 1984). After which a number of researchers have experimented on the concept, one of which was in 1994 in a telephone company in the United States of America, AT&T where 32,000 employees worked from home including the CEO. The purpose of this experiment was to examine how much a vast organization could thrive if the workplace is transformed and work is moved to employee, not the employee moving to work (Apgar, 1998). Alternative work location models were examined by managers for a number of reasons; to reduce cost as seen in AT&T’s ability to save up to $550 million in cash-flow from 1991 to 1998 by eliminating offices, to increase productivity, to make the organization more appealing to talented and highly motivated employees, etc (Apgar, 1998). In today’s reality, due to COVID-19 pandemic, the traditional workplace is being challenged with several companies evolving to alternative work models for business continuity. An analysis conducted by Delloite, show that 31% of the workforce in Australia (approximately 4 million) and 50 million across the six nations of ASEAN could shift permanently to alternative work arrangements (Delloite, 2020). Fluegge (2009) in his study of the impact of recreation on job performance divided employee job performance into task performance, organizational citizenship behavior and creative performance; creative performance being a behavioural manifestation of creativity, i.e. the ability to generate ideas, procedures and products both original and useful.

Allworth and Hesketh (1999); Pulakos, Arad. Donovan and Plamondon (2000) and Griffin et al. (2007) focused on the growing interdependency and uncertainty of work systems and the corresponding change in the nature of employee job performance. All three argued that adaptive performance should be a separate dimension of employee job performance. Adaptive performance is defined as the extent to which an individual adapts to changes in a work system or work roles (Griffin et al., 2007). It includes, for example, solving problems creatively, dealing with uncertain or unpredictable work situations, learning new tasks, technologies, and procedures, and adapting to other individuals, cultures, or physical surroundings.

Griffin et al. (2007) further argued for task proactivity as a separate dimension of job performance. Individual task proactivity reflected the extent to which individuals engage in self-starting, future-oriented behavior to change their work situations, their work roles, or themselves.

Sinclair and Tucker’s job-specific framework (Sinclair and Tucker, 2006) also regarded  adaptive  performance as a separate dimension of employee job performance, in addition to task performance, contextual performance, and counterproductive work behavior. In several other frameworks, adaptive performance was not included as a separate dimension, but rather as a part of contextual performance. For example, Hunt (1996) dimension of schedule flexibility, Rollins and Fruge (1992) dimension of adaptability, and Hedge, Borman, Bruskiewicz and Bourne (2004) dimension of leading change all reflected an employee’s ability to adapt to new job conditions or requirements.

Operational Framework

Research Hypotheses

Ho1         There is no significant correlation between Hybrid work location and adaptive performance of oil and gas firms in Rivers State.

H02         There is no significant correlation between Remote work location and adaptive performance of oil and gas firms in Rivers State.

Theoretical Framework

Contingency Theory of Management

Robert Blake and Jane Mouton in 1964 suggested that Marx Weber’s bureaucratic theory of management and F. W. Taylor’s scientific management could not succeed because they failed to acknowledge the role of the environment on management style and organizational structure. The different aspects of the environment were seen as the contingent factors. Therefore, they stated that there could be no “one best way” for leadership or organization. William R. Scott described contingency theory as “an organization is best organized depending on the environment with which it deals” (Scott, 1981).

Woodward (1958) also argued that organizational attributes such as span of control, centralization of authority and formalization are directly determined by technologies.

Methodology

Research Design

The research design adopted was cross-sectional survey research design because it is an empirical study research design used to investigate a cause and effect correlation between the independent variable (work location models) and the dependent variable (employee job performance), the research was carried out with the aid a structured questionnaire.

Population of the Study

Population of a study is a set of homogenous elements within a universe that is chosen for a study. The accessible population of this study is 656 administrative staff from five (5) selected oil and gas firms in Rivers State. The accessible population was chosen due to easy accessibility to information and for an unbiased conclusion in order to achieve the aim of the study. The firms and number of employees are given below.

Table 1            Population distribution of research instruments for oil and gas firms

S/No. Names of Firms Number of Admin Staff
1 Nigerian Liquefied Natural Gas (NLNG) 70
2 Nigerian National Petroleum Corporation (NNPC) 145
3 Halliburton Energy Services Nigeria Limited 220
4 Norfin-offshore Limited 5
5 Shell Petroleum Development Company 216
  Total 656

Source: Human Resource Department of each firm

Sample and Sampling Technique

A sample represents a proportional size of a population that can be handled. The simple random sampling technique, a probabilistic sampling technique will be used in this study. The intention is to get a sample that is convenient to use, accurately represents the population under study because it gives every member of the population an equal chance at being chosen to participate in the survey and it eliminates researcher’s bias in choosing samples. The Taro Yamane’s formula was used for determining the sample size of the study:

            n =  2

Where,

n= sample size or population not known

N= population size known

e= error limit given the population (5%)

With the total population being 656 at 95% confidence and error limit of 0.05

The sample size for this study is 248 which were obtained using the Taro Yamane’s formula. However, the Bowley (1964) formula will be used in allocating the questionnaires to each firm. The formula is given as:

            nh =     nNh

                         N

nh =     The number of questioning distributed to each firm

n  =      The total sample size

Nh =    Number of employees in each firm

N   =    Population

Nature/Sources of Data

The data used for this study were gotten from primary and secondary sources and the nature of the data is quantitative. The primary data was collected with the aid of structured questionnaires which were administered to respondents via online survey and the secondary data was collected from existing literatures from journals, textbooks, the internet; which provided materials for review of literature and company records; from whence population size was derived.

Methods of Data Collection

The data was collected using electronic survey so as to reach all employees despite the work model they employ i.e. on-site, hybrid and remote. The e-forms were forwarded to employees of the chosen oil and gas firms were requested to forward to as many of their colleagues as possible. The link was also posted on the organisations’ Whatsapp groups by a research assistant from each organisation requesting that employees participate in the survey.

Validity/Reliability of Instrument

Validity refers to the extent to which a research instrument measures that which it ought to measure (Baridam, 2001). Gay (1996) opined that validity is the most important characteristic of a standard test as it measures the accuracy of an instrument. He stated that validity is indispensible and no other test can compensate for inadequacy in validity. The validity test for the research instrument will be conducted thus; it will be presented to the supervisor for vetting and validation, professionals in the field will also be consulted and appropriate corrections will be made.

Reliability is a measure to confirm the extent to which an instrument is consistent. It is the mother of science as science maintains consistency. An instrument is considered reliable when it produces the same result every time it is administered. For reliability test, Cronbach alpha test will be used with a benchmark value of  0.7 along with test and re-test because a pilot survey will be conducted before the main survey.

Data Analysis Techniques

The demographic data will be analysed using descriptive analysis. Spearman Rank Order Correlation Co-efficient statistical analysis will be employed in analysing the hypotheses in order to determine the correlation between the variables with the aid of Statistical Package for Social Sciences (SPSS) and the moderating variable will be analysed using partial correlation. The formula for spearman rank order correlation coefficient is given as;

Rh0       =          1-
where,

Rh0         =             Spearman Rank Order Correlation

    =          Sum of squared difference in the ranking of the two variables

n          =          Number of subjects being ranked

Analyses and Findings

Ho1         There is no significant correlation between Hybrid work location and adaptive performance of oil and gas firms in Rivers State.

Correlations
  Hybrid Adaptive_performance
Spearman’s rho Hybrid Correlation Coefficient 1.000 .581**
Sig. (2-tailed) . .000
N 248 248
Adaptive_performance Correlation Coefficient .581** 1.000
Sig. (2-tailed) .000 .
N 248 248
**. Correlation is significant at the 0.01 level (2-tailed).   Source: SPSS Output, 2021.    

Our first test of hypothesis reveals a significant relationship between hybrid work and adaptive performance with a correlation coefficient of 0.581 and a p-value of 0.000. With this, we reject the stated null hypothesis and accept the alternate.

H02         There is no significant correlation between Remote work location and adaptive  performance of oil and gas firms in Rivers State.

Correlations
  Remote Adaptive_performance
Spearman’s rho Remote Correlation Coefficient 1.000 .732**
Sig. (2-tailed) . .000
N 248 248
Adaptive_performance Correlation Coefficient .732** 1.000
Sig. (2-tailed) .000 .
N 248 248
**. Correlation is significant at the 0.01 level (2-tailed).

Source: SPSS Output, 2021.

Our second test of hypothesis reveals a significant relationship between remote work and adaptive performance with a correlation coefficient of 0.732 and a p-value of 0.000. With this, we reject the stated null hypothesis and accept the alternate.

Conclusion

The test results reveal that there is significant correlation between hybrid work and employee adaptive performance. We also reject the null hypothesis and the implication of this could be that when the job is sophisticated and requires modern technology, this creates a sense of satisfaction in workers and makes want to adapt more to the organization. Hilberath et al. (2020) stated that the hybrid work model allows organisations recruit talent better, achieve innovation and create value.

Similarly, our test for hypothesis two reveal there is a significant correlation between remote work and employee adaptive performance. Beno (2021) opined that the positive effects of remote work outweigh the negative. Some positive effects listed include increased employee flexibility, productivity, satisfaction and improvement in WLB. Beno stated that today’s environment is characterized by changes, complexity, interconnectivity and technological development, and new challenges emanate from the external environment which requires flexibility and innovation, as well as the internal environment where employees demand greater autonomy and room for self-expression, hence the need for adoption remote working model by organizations.

Recommendations

Based on the findings and conclusion of this study, the following recommendations are hereby presented:

  1. Employees should be given the opportunity to participate in decision making to choose models as employee insight and involvement will boost work-life balance and morale as well as commitment to the adopted model, leading to improved job performance.
  2. Employees will put in more work hours if given the opportunity to work from home and with flexible timing as there will be no boundary between paid work hour and personal time. This will benefit the firms as they need not pay for overtime.

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Value Relevance and Firm Specific Attributes: Empirical Evidence from Listed Non-Financial Firms in Nigeria

VALUE RELEVANCE AND FIRM SPECIFIC ATTRIBUTES: EMPIRICAL EVIDENCE FROM LISTED NON-FINANCIAL FIRMS IN NIGERIA

Offor, T. N. (PhD) and Akwuobi Bridget Udekwesili

Department of Accountancy

Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State

Mail: budekwesili1@gmail.com

Abstract

This study empirically investigated the value relevance of firm characteristics of non-financial companies in Nigeria using a ten (10) year time frame (2012 to 2021). To achieve this objective, the researchers employed one notable valuation model; Ohlson 1995 Valuation Model with dividend payout ratio as the financial information which was included in the model. Further, the study employed ex-post facto and descriptive research design on a data set sourced from annual financial reports of listed non-financial firms in Nigeria. To this end, the study hypothesized that dividend payout ratio (which is the financial information) has no significant relevant value among listed non-finance companies in Nigeria. Least square Dummy Variable regression analysis technique was employed to obtain estimates and the outcomes were discussed after validating the coefficients which were obtained from the regression analysis. Results obtained from the descriptive statistics showed that on average listed non-financial firms in Nigeria pay about one hundred and thirty-seven naira (137.14) as dividend during the period under consideration. Specifically, the result indicates that the stock market investors reactions towards dividend payout is positive which further strengthen the notion that investors perceive the information on dividend payout as value enhancing rather than value decreasing. This study contributed to the emerging field of value relevance especially in an underdeveloped market such as Nigeria by presenting empirical evidence relating to the relevant value of firm characteristics with practical financial implications that will be most useful to investors.

Keywords:      Value Relevance, Dividend Payout Ratio, Earnings per share

1.0       Introduction

The availability of information to decision makers facilitates strategic decisions. Such information, which may be firm-specific (attributes), is obtained from financial reports generated by the accounting system. Accounting information is relevant because it aids in analyzing the firm’s current performance and value, as well as predicting future financial performance (Menike, Prabath, 2014). Clearly, the value relevance literature is concerned with investigating the relationship between a specific financial information and firm performance in order to provide an assessment of its use or proposed use in financial analysis. Thus, relevance is concerned with information’s ability to influence management decisions. Information in this context is understood to mean changes in expectations in outcomes of events such that financial information is value relevant if it leads to a change in the management’s assessment of the probability distribution of future returns (Ali, & Jadoon, 2022). Barth, Beaver, & Landsman, (2001) note that a sufficiently large change must occur to induce a change in decision marker’s behaviour.

Value relevance studies attempt to determine which factors influence stock prices. In general, stock price movements occur on a daily basis, with some companies appreciating multiple times per day and others appreciating only once. However, such non-linear movement reveals that demand and supply are the most important factors influencing stock prices. Although this theory supports general economic equilibrium in the market, no comprehensive model exists to define price movements and changes in demand and supply. However, many factors, such as the company’s fundamentals, the economic situation, non-financial variables, and investor sentiments, must be considered (Malgharni et al. 2010; Akbar, Shah, & Stark, 2011; Amir and Lev, 1996; Nieh and Lee, 2001; Kahneman et al. 1991) have been adduced in the research to account for changes in demand and supply. Particularly, this study considers one relevant value factor (Dividend) from the literature studied. This factor has been studied but still lacks a comprehensive model of value determination.

Specifically, several studies on how market prices correlate with financial information have been conducted in Nigeria. Prior related studies, however, have not examined the effect of firm-specific attributes (particularly dividend pay-out) on such a relationship, which becomes a key justification for this study. Prior research has demonstrated the value relevance of book value and earnings for Nigerian listed firms (e.g., Chukwu, Damieibi, and Okoye, 2019; Ebirien, Chukwu, and Abiahu, 2019), but the role of dividends in determining stock prices remains an empirical issue. Furthermore, Herbert, Isegba, Ohalede, and Anyahara (2014) found that managers in Nigeria are primarily motivated to pay dividends by two sets of motivations. The “clientele effect” and “signaling” are examples of these. They maintained that dividend policies affect share value and are not determined by residuals, as Miller and Modigllani suggested (1961). Furthermore, related studies on the value relevance of financial information frequently focus on a single sector of the Nigerian economy (Chukwu, 2017; Chukwu, Ohaka, & Nwanyanwu, 2017; Ebirien, Chukwu, & Abiahu, 2019; Chukwu, Damieibi, & Okoye 2019), whereas this study considers data drawn from 75 non-financial listed firms across 9 sectors of the Nigerian economy. This study contributes to the existing literature by examining the value relevance of accounting information and particularly dividend pay-out for firms listed on the Nigerian Exchange Group (NGX) which serve as an example of a less developed market. The findings of this study will provide further empirical evidence on the value relevance of firm characteristics for non-financial firms in Nigeria.

2.0       Review of Related Literature

2.1       Value Relevance

Financial reporting is concerned with providing useful information to users of financial statements in order to help them make informed decisions. Accounting standards setters around the world believe that in order for information to be useful to users, it must have two key qualitative characteristics: relevance and reliability (Mbekomize & Popo, 2020). It is worth noting that the attribute of reliability has been replaced by the characteristic of faithful representation in recent conceptual frameworks of financial reporting, particularly those of the Financial Accounting Standards Board (2010) and the International Accounting Standards Board (2018). The attribute of relevance refers to information that has the potential to influence user decisions. Furthermore, information with the potential to influence decisions must have predictive value (the ability to predict future outcomes) and/or confirmatory value (the ability to provide feedback on previous evaluations) (Financial Accounting Standards Board, 2010; International Accounting Standards Board, 2018). According to Alexander, Britton, and Jorissen (2007), for information to be relevant, it must resonate with why the user needed that information in the first place. According to Chang, Chen, and Chang (2008) and Abiodun (2012), value relevance is defined as the statistical relationship between accounting information disclosed in financial statements and market prices or share returns. This statistical relationship between share price and accounting information can explain the extent of volume of share or share price change following the release of financial information. However, in this study, value relevance of accounting information is seen as the usefulness of financial accounting information, given the investors’ decision to invest or to maintain their investment in shares of companies arising from the relationship between the financial statements and share prices.

2.2       Earnings per Share

When it comes to determining the value relevance of accounting information, earnings is a fundamental and prominent accounting variable. This is because it outperforms cash flow. However, if the earnings figures are perceived to be inadequate, the market will look at both cash flow and net book value (Abiodun, (2012). Earnings per share is a metric that can be used to assess a company’s ability to generate profits and is required to be disclosed by publicly traded companies Valix & Peralta (2009). On the face of their income statements, public companies are encouraged to present their earnings per share (Menaje, 2012). In contrast to previous practices, the Financial Accounting Standard Board (FASB) now requires the disclosure of earnings per share. This new practice of earnings per share disclosure is motivated by the need to conform earnings per share calculation to the international standard and to assist investors in better accessing the effect of potential dilution than that achieved under the primary earnings per share calculation (Livant & Segal, 2000). According to Agrawal (2011), a firm’s earnings are the most influential of the variables that can influence the movement of a share price in the capital market, so listed companies disclose their earnings every quarter. According to Wyatt (2008), among fully diluted earnings per share, primary earnings per share, and basic earnings per share, basic earnings per share explains the least variability in stock price. O’hara et al. (2000) opine that the consistent increase in the earnings per share has positive strong correlation with the share price.

2.3       Book Value Per Share

The market value to book value ratio (MBV) evaluates the firm’s market value from the perspective of an investor in relation to the book value of a share. The market-to-book ratio has been one of the primary sources of inspiration for the costly external financing theory in interpreting capital structure decisions (Olanrewaju & Tabitha, 2017). This variable was chosen because the main goal of this study is to determine the effect of financial performance on capital structure choice of firms listed on the NSE. The book value of a company is an important aspect that provides information on a company’s value. Book values play important roles in company valuation analysis (Ohlson, 2001). The work of Aras and Yilmaz (2008) also reveals that the market to book multiple plays an important role in forecasting stock returns for 12 countries using cross-sectional data from 1997 to 2003. The research proposes a model for predicting the impact of price to book value in stock price prediction.

Market to book value ratio is a valuation ratio used by investment advisors, fund managers, and investors to compare a company’s market value (market capitalization) to its book value (shareholders’ equity), according to Marangu and Jagongo (2014). The market to book value ratio, expressed as a multiple (how many times a company’s share is trading per share compared to the company’s book value per share), indicates how much shareholders are willing to pay for a company’s stock.

2.4       Share Price

Earnings are an important variable affecting the market value of equity share. Company producing and selling goods and services useful to citizens in a society and earning revenue covering its cost of production add and build up its reserve (Retained earning reserve). Once a successful company starts building up reserves it will also look out for expansion in its scale of operations and thus increase its earnings the more. Once a company starts earning attractive sum, the equity share will have more and more demand which will result in increase in market value of the equity (Hendricks, 1976 in Tharmila & Nimalathasan, 2013).

Earnings per share (EPS) and book value per share (BVPS) have been identified as the two most important accounting measures that have a significant positive association with a firm’s market value, as proxied by share prices, according to a large portion of the literature (e.g., Oyerinde, 2009; Alfaraih and Alanezi, 2011; Khanagha, Mohammad, Hassan & Sori,2011, Aruwa, 2016). According to Aruwa (2016), earnings per share (EPS) information is the most important factor for investors when determining share price.

Profit is the goal of any company, and it is frequently used as a basis for measuring company performance. Profitable companies, according to investors, can improve the welfare of their shareholders. Earnings per share are the amount of profit based on the outstanding shares of the company. According to Kashmir (2012), earnings per share are the ratio used to measure the success of management in achieving profit for shareholders.

The success of management in managing capital can be seen in its ability to generate profit. Because the profits earned enable the management to improve the well-being of the stakeholders. Changes in the fundamental factors identified as financial performance and macroeconomic variables Kehinde (2012), as well as market noise, which cannot be captured as a fundamental factor, amplify the movement in the share price of listed firms.

2.5       Theoretical Framework

2.5.1    Agency Hypothesis

This study is anchored on the agency hypothesis which shed light in the agency problem that occurs between the shareholders and the management. Prior empirical evidence suggests that there is a particular reason for the undervaluation of the profit available for dividend as compared with the remaining shareholders’ equity. According to Miller and Modigliani (1961), a dividend policy is irrelevant to corporate valuation. However, previous research suggests that a dividend policy can have an impact on firm value through the signaling effect or the agency problem. Jensen (1986) advocates that the management should be monitored to prevent wasteful investment and to ensure that profit is adequately distributed among shareholders. This implies that the agency problem occurs in a company with insufficient dividend pay-out. Further, DeAngelo et al. (2006) show that, in the United States, a highly significant relationship exists between the decision to pay dividends and the ratio of earned equity to total equity. Therefore, the assumption is that as profit available for dividend increases, more dividend is pay-out is expected, but then firms with a low dividend pay-out will face a comparatively higher agency cost than the one with a high dividend pay-out. Therefore, compared to other companies, the profit available for dividend in the case of a company with a low dividend pay-out is expected to be more under-valuated in the market.

2.6       Empirical Literature

Srivastava and Muharam (2022) conducted a study comparing the “value relevance of accounting information during the International Financial Reporting System (IFRS) convergence period” in India and Indonesia. Ohlson’s Price Model was used in the study, which included 3325 and 815 firm year observations from India and Indonesia, respectively. The findings indicate that the value relevance of book values and earnings improved during the two countries’ IFRS implementation periods. Oden (2022) conducted research on the International Financial Reporting System adoption and the value relevance of accounting information of Nigerian listed insurance companies. Secondary data from 20 publicly traded insurance companies was used over a six-year period (2009-2014). The hypothesis was tested using Ordinary Least Square regression analysis, which revealed that while adopting International Financial Reporting System reduced the relevance value of accounting information, earnings per share, dividend per share, and book value per share decreased in the post-International Financial Reporting System period. Olawele and Hassan (2021) investigated the International Financial Reporting System adoption and value relevance of financial information of Nigerian listed deposit money banks from 2008 to 2015. Correlational and ex-post facto research designs were used, and data was analyzed using the Generalized Least Square regression analysis technique. The regression analysis results show that financial information is valuable in both pre and post-International Financial Reporting System adoption periods.

Sun, Sari, and Havidz (2021) investigated “the impact of International Financial Reporting System adoption on the value relevance of accounting information using Indonesian data”. Panel data from twenty-two Indonesian banks was used over a six-year period (2010-2015). The Ohlson’s Price Model was used, and the results showed that value relevance on earnings increased after the International Financial Reporting System was implemented. Hand and Landsman (2005) examined the information content of dividends to test the differing predictions that emerge from Ohlson’s (1995) model. The findings show that dividends have information content in the United States, and that this content is greatest when earnings are transitory. Omokhudu and Ibadin (2015) investigated the “value relevance of accounting information using Nigerian data. Regression analysis which was employed in hypothesis testing revealed that earnings, cash flow, and dividends are statistically significantly associated with firm values while book values are not statistically significant.

 3.0      Methodology

In investigating whether firm characteristics is relevant for measuring corporate value in listed non-financial firms in Nigeria, this study adopted the Ohlson valuation model (1995), which states that for a listed firm, market value is determined by its annual earnings, book value of equity and any other information that increases the value of the firm (Echobu, Ekundayo & Abu, 2022). Since other information can also positively affect value, the Ohlson model is modified to financial information, represented as dividend payout. The dividend payout which is a financial information to be tested is taken while profitability is included as a control variable. The financial information of the firms was collated from the sampled firms’ annual reports. In this study, ex post facto and descriptive research design on a panel data set of listed 75 non-financial firms was adopted. In the final analysis, least square dummy variable regression analysis technique was employed to obtain coefficient estimates.

 3.1      Model Specification

Ohlson (1995) Valuation Model

In accordance with Ohlson (1995) this study model begins by explaining price Pit of stock i at time t as a function of book value per share BVPSit, abnormal earnings per share AEPSit and other information vit: However, in empirical studies, due to data restrictions and the lack of a proper model for calculating normal earnings, earnings per share (EPSit) is commonly used as a proxy for AEPSit (Goncharov et al., 2006; Gu, 2007). Therefore,

Introducing the financial information (dividend pay-out) the model is re-written as:

SPit = α1BVPSit + α2EPSit + α3DIVPit + α4RETAit + μit………………………………………………  (2)

Where:

SP                   = Stock Price

BVPS              = Book Value per share

EPS                 = Earnings Per Share

DIVP             = Dividend Pay-out

RETA            = Return on total Asset

i                       = cross sections (sample companies)

t                       = time effect (2012 to 2021)

μit                           = Stochastic error Term

4.0       Empirical Results and Discussion

The study examines the value relevance of firm specific attributes in Nigeria by drawing samples from non-finance firms listed on the floor of the Nigerian Exchange Group (NGX) for the period 2012-2021. In this study, profitability (measured as return on asset) and dividend pay-out are the firm specific attributes under study.  Specifically, to achieve the objective of the study, least square regression analysis was conducted to check the estimates for possible inconsistencies with basic assumptions of the ordinary least square regression analysis. The diagnostics include test for multicollinearity as well as test for heteroscedasticity. The variables under consideration were described first in terms of the mean, standard deviation, minimum, and maximum values.

Descriptive Analysis

Table 1 displays the descriptive statistics for the variables of interest.

VARIABLES MEAN SD MIN MAX NO OBS
SHPR 34.58 147.30 0.20 1556.50 760
EAPS 1.56 6.07 -20.23 57.63 760
BVPS  10.83 16.74 -8.06 122.58 760
RETA 1.28 17.03 -179.92 176.27 751
DIVP 137.40 2726.95 -935.63 74636.63 751

 Table 1           Descriptive Statistics

Table 1 shows that the mean share price is 34.58 with a standard deviation of 147.30, implying that a unit price of shares is 147.30 on average. During the period under consideration, earnings per share (EAPS) averaged 1.56 with a standard deviation of 6.07. During the period under review, book value per share (BVPS) revealed a mean value of 10.38 with a standard deviation of 16.74, while return on asset revealed a mean value of 1.28 with a standard deviation of 17.03. The variable of dividend pay-out in the table has a mean value of 137.40 with a standard deviation of 2726.95 for the time period under consideration.

Correlation Analysis

In examining the association among the variables of interest, Spearman Rank Correlation analysis is conducted, and the results are presented in the table below. 

Table 2           Correlation Analysis

  SHPR EAPS BVPS RETA DIVP
SHPR 1.0000        
EAPS 0.6501 1.0000      
BVPS 0.7469 0.6413 1.0000    
RETA 0.4244 0.8056 0.3452 1.00  
DIVP 0.4211 0.6114 0.3720 0.5367 1.0000

The correlation analysis results for this study are shown in table 2. The results show that all of the independent variables are positively related to the dependent variable of share price. Earnings per share (0.6501), book value per share (7469), profitability (0.4244), and dividend payout (0.4211) all have a positive relationship with the dependent variable of share price. However, all of the associations are weak (less than 0.80), so there is no reason to suspect the presence of multicollinearity in the model. Furthermore, regression analysis is required to test the study’s hypotheses because correlation analysis does not capture cause-effect relationships.

Regression Analysis  

Specifically, to examine the cause-effect relationships between the dependent variables and independent variables as well as to test the formulated hypotheses, the study used a regression analysis. The pooled OLS results together with the least square dummy variable (LSDV) regression analysis results are presented and discussed below.

Table 3           Regression Result

Variables (Pooled OLS) (LSDV Regression)
CONS. 11.643 {0.001} **    1.707 {0.880}   
EAPS 22.558 {0.000} ***    9.113 {0.000} ***   
BVPS -1.050 {0.000} ***   -1.133 {0.000} ***  
RETA -1.009 {0.000} ***   -0.439 {0.000} ***  
DIVP 0.004 {0.000} ***   0.003 {0.000} ***  
F-Stat 443.03 (0.0000) 153.93 (0.0000)
R- Squared 0.7037 0.9477
VIF Test Hetero Test   1.31     Probability Value = 0.00000 Chi2 Value = 6060.57

Note:   () bracket {} are coefficients and p-values respectively 

(2) **, ***, implies statistical significance at 5% and 1% levels respectively

Considering the results provided in table 3, Variance Inflation Factor (VIF) analysis technique is employed to determine the absence of multicollinearity. A mean VIF value of 10 and above suggests the presence of multicollinearity (Gujarati’s 2004). However, the result implies that the mean VIF (1.31) is within the benchmark of 10 as recommended by Gujarati’s (2004) therefore, no room to suspect multicollinearity in the model under study. Testing for homoscedasticity, the result reveals a 1% statistically significant P-value of 0.0000 with Chi2 value of 6060.57 indicating that the assumption of homoscedasticity has been violated consequently, the ordinary least square regression estimates cannot be relied upon for policy recommendation which makes room for the Least Square Dummy Variable regression analysis employed to obtain the study coefficients. Clearly, the least square dummy variable regression analysis shows an R-square value of 0.9477 indicating that about 95% of the systematic variation in share price is jointly explained by the independent variables during the period under study. However, the unexplained changes in share price are attributed to the exclusion of other independent variables that are not within the scope of this study but may have been captured in the error term. Further, the F-statistics value of 153.93 associated with P-value of 0.0000 indicates that the model is statistically significant at 1% level hence the Least Square Dummy Variable regression analysis is valid and can be employed for statistical inference.

Discussions of Findings

The least square dummy variable regression results indicate that dividend pay-out information is valuable in Nigeria. This is shown as (Coef. = 0.003; P -value = 0.000), indicating that dividend pay-out is relevant information because it increases the value of the share price. As a result, this study contends that dividend payout policy in Nigeria is important to investors because it helps to boost investor confidence through share price increases. Although dividend distribution is not required for a company, as demonstrated by this study, it may signal to shareholders the company’s “health” or future prospects. Higher dividend payments indicate to a shareholder or potential investor that a company will grow in the future, which can lead to an increase in share price. As a result of the findings, the study contends that greater dividend allocation will improve a company’s performance in the eyes of an investor, thereby increasing a company’s share price. Notably, this result is consistent with the belief that positive signals received by investors regarding the company’s ability to generate high profit make the company more appealing for investment as long as this profit is paid as dividend (Abor & Amidu, 2006; Rehman, 2012). However, it is worth noting that this result supports the view that companies that pay dividends are already mature, as newer companies that are still growing tend to reinvest profits rather than pay dividends.

The results of the least squares dummy variable regression model also show that profitability in terms of return on asset is value relevant among Nigerian listed non-financial firms during the study period. This is represented as (Coef. = -0.439; P -value = 0.000). The result indicates that profitability generates relevant value because it has a significant impact on share price. However, based on the findings of this study, it is noted that increased profitability will reduce shareholder confidence, as reflected in the share price, particularly if the company decides to plough back profit rather than pay it out as dividend. This is consistent with the Pecking Order theory, which states that profitability leads to less debt use, which leads to a drop in share prices. The finding is in line with those of Guna and Sampurno, (2018) but negates the signalling theory which suggests that the profits obtained by the company will be a signal from management to show the prospects of a company to investors (Yanti & Darmayanti, 2019). Particularly, it is expected that that higher profits generated by a company will increase the creditor’s confidence to provide loans and will also increase investor confidence to invest capital.

Conclusion

In this study, the value relevance of accounting information and its relationship with firm-specific attributes were tested. The analyzed data set were drawn from the financial statements of ten different sectors of the Nigerian Exchange Group. The data covered a period of ten years 2012 to 2021 and the results of the Least Square Dummy Variable regression analysis show that financial information in the form of dividend payout for non-financial listed firms in Nigeria is value relevant thereby affecting the way equity investors value accounting numbers. As a result, it is recommended that managers of listed non-financial firms in Nigeria consider paying dividends to shareholders; as such a policy will go a long way toward increasing firm value through stock price appreciation.

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Intrinsic Reward Systems and Employees’ Commitment of Deposit Money Banks in Port Harcourt, Rivers State.

INTRINSIC REWARD SYSTEMS AND EMPLOYEES’ COMMITMENT OF DEPOSIT MONEY BANKS IN PORT HARCOURT, RIVERS STATE.

Barnabas S. Stanfast (PhD)

Department of Management,

Faculty of Management Sciences,

Niger Delta University,

Nigeria.

08036716199

Email: stanfastbarnabas@ndu.edu.ng

Sonia I. Stanfast

Department of Management,

Faculty of Management Sciences,

University of Port Harcourt,

Nigeria.

08036716259

Email: stanfastsonia@yahoo.com

Abstract

This study examined the relationship between intrinsic reward systems and employees’ commitment of deposit money banks in Port Harcourt. Cross-sectional survey design was used for the study. The study had a population of 315 respondents’ that cut across 10 selected deposit money banks in Port Harcourt. The study sample was 176 employees of deposit money banks in Port Harcourt derived from the use of systematic sampling technique. The data collected was subjected to analysis using Partial Least Squares (PLS) – Structural Equation Modelling (SEM) with the aid of Smart PLS 3.3.3. The result of the study showed a positive and significant relationship between intrinsic rewards and the measures of employees’ commitment (affective, continuance and normative commitment). The study concluded that rewards system is a driver of employees’ commitment in the Nigerian banking sector as confirmed by the result of the study. Arising from the findings and conclusion of the study, the study recommended that management of deposit money banks should ensure that adequate reward system is put in place to ensure that employees are better committed to their jobs.

Keywords: Intrinsic Reward, Employee Commitment, Affective Commitment, Continuance Commitment, Normative Commitment.

Introduction

Johnson & et al (2010) outlined the aims of reward system to include: attract, retain and motivate employee, to support the attainment of the organization’s strategic and short-term objectives by helping to ensure that it has the skilled, competent, committed and well-motivated work force it needs, to meet the expectations of employees that they will be treated equitably, fairly and consistently in relation to the work they do and their contribution. Neckermann and Kosfeld (2008) draw a distinction between two basic types of rewards namely: Intrinsic rewards and extrinsic rewards. Intrinsic Rewards: Intrinsic rewards often called non-financial rewards are inherent of an activity and their administration is not dependent upon the presence or actions of any other person or thing. Intrinsic is concerned about the feeling of being recognized, praised for a job well done and participation in whatever we do. Extrinsic rewards do not follow naturally or inherently from the performance of an activity but are administered to a person by some external agents. Extrinsic reward concerns such motivations like money, retirement benefits, health insurance scheme, compensation, salary, bonus, etc.

Roshna and Rohan (2016) observed that rewards include awards, recognition, promotions, reassignment and compensation. Mollahosseini et al (2014)) opined that reward management systems should be designed in a way that it ensures maximum benefits for an organization. Armstrong, Brown and Reilly (2009) cited in Korir and Kipkebut (2016) stated reward management system in competitive firms is designed in ways that make them to have accurate predictions on their current and future expected results. Reward management systems can necessitate positive performance like increase in employee commitment, improvement in job satisfaction and increase in the desire to be good organization ambassador.

On the other hand, if reward system is not in place or properly handled, it can result in dampening of moral, reduced engagement in the organization and increase in the intention to leave the organization. Ajmal et al (2015) noted that employee’s satisfaction and positive attitude towards work are linked back with the intrinsic and extrinsic rewards that make employees to work out of the way. Qureshi et al (2013) however stated that the satisfaction of employees also depends on the practices of human resources management based on the fact that they prefer to have a fair rewarding system, judges, investigation, neutral performance appraisal and that they should be rewarded accordingly. Human resource plays a vital role to affect how intrinsic and extrinsic rewards affect employees’ commitment.

Several studies have been carried out on ways to improve employees’ commitment and performance using rewards systems and other constructs. Al-Smadi (2020) examined the impact of intrinsic and extrinsic rewards on employee performance and determining role of human resource practices. Ogbu, Ewelike and Udeh (2020), conducted a study on the effect of reward management on employee performance. In another study, Ajmal, Bashir, Abrar, Khan, and Saqib, (2015) examined the effect of intrinsic and extrinsic rewards on employee attitudes with the mediating role of perceived organization support. Obicci (2015) also examined the influence of extrinsic and intrinsic rewards on employee engagement in the public sector of Uganda. Orajaka (2021) carried out another study on reward of management practices for employee retention and variable payment to public institutions. Noorazem, Sabri, and Nazir (2021) also examined the effects of reward system on employees’ performance. Azeez, Fapohunda and Jayeoba (2017) studied work-life balance and organizational commitment from the perspective of postgraduate students. In a related study, Phamthi, Ngo, Duong and Pham (2021) examined the influence of organizational culture on employees’ satisfaction and commitment in SMEs in Vietnam. Tamunimiebi (2019) examined organizational climate and employee commitment of telecommunication companies in Port Harcourt, Nigeria. Nalugya (2018) also carried out a study on reward management and employee commitment in commercial banks in Uganda.

A lot of research has been conducted focusing on reward and incentives to employee Gohari et al. 2013, Syed, and Yan, 2012). The level of staff turnover in the banking industry has also been on the increase which comes as a result of employees seeking greener pastures. This is likely to be attributed to poor reward policy which has led to de-motivation and job dissatisfaction. However, reward systems are likely to be an influencing factor in enhancing the level of employee performance in the banking sector.  Several instances of long lines to the cash counters and poor attitude of staff while serving clients have been reported in most banks in Nigeria. Despite the various empirical studies above, there is still dearth of studies on how intrinsic reward systems relate with the level of employee commitment in the deposit money banks in Port Harcourt, Rivers State.

Research Questions

The study seeks to provide answers to the following questions:

  1. What is the relationship between intrinsic reward and affective commitment of deposit money banks in Port Harcourt, Rivers State?
  2. What is the relationship between intrinsic reward and continuous commitment of deposit money banks in Port Harcourt, Rivers State?
  3. What is the relationship between intrinsic reward and normative commitment of deposit money banks in Port Harcourt, Rivers State?

Research Hypotheses

The following hypotheses were formulated and tested:

  1. There is no significant relationship between intrinsic reward and affective commitment of deposit money banks in Port Harcourt, Rivers State.
  2. There is no significant relationship between intrinsic reward and continuous commitment of deposit money banks in Port Harcourt, Rivers State
  3. There is no significant relationship between intrinsic reward and normative commitment of deposit money banks in Port Harcourt, Rivers State?

Literature Review

Intrinsic Rewards

Intrinsic rewards are those rewards which are given in non-financial terms. They include recognition, training and development, job advancement, career advancement etc. According to Ajmal et al (2015), intrinsic rewards can be seen as those forms of rewards which are non-monetary in nature. In the view of Alen, Shore and Gritteth (2004), intrinsic rewards are more psychological in nature and they provide internal satisfaction to employees through satisfaction which comes from the inside. Such feeling of self-esteem, citizenship behaviours and other positive attitudes emanating from intrinsic and non-monetary rewards will always give rise to employee performance which can manifest itself in the form of quality output, leading to organizational efficiency and effectiveness. Employees do not only care about the cash they receive for overall work done, they care about those other motivational elements that boost their sense of belongingness and these often come in psychological forms.

Intrinsic motivation refers to the motivation that comes from inside an individual. This type of motivation usually comes with the satisfaction employee gets after the work being done or in some cases during the working process. Intrinsic motivation can be influenced by several factors which are responsibility, freedom to act, scope to use and develop skills and abilities, interesting work and opportunities for advancement. These motivators are used to have a long-term effect as they come from the individual and not from the surrounding environment (Armstrong, 2013).

Torrington and associates (2009) used a different term for non-cash rewards i.e. non-material rewards and concluded non-cash rewards tend to increase the job satisfaction in employees particularly employees that show high productivity as compared to other employees. The study, conducted by the researchers, explains that when an employee is satisfied with monetary rewards, he/she starts searching for something different as cash benefits cannot satisfy the needs and can-not motivate in the same way. The study also emphasized the fact that intrinsic and extrinsic rewards should coexist in a reward system as only a balanced system may adequately meet motivation needs of employees and ultimately lead to optimization of commitment, motivation, and job satisfaction of employees. As a result, the researcher can conclude the third hypothesis which states that intrinsic rewards used in Normet Ltd. have positive impact on the performance of the employees.

Pollack (2004) states that several intrinsic rewards such as great autonomy, recognition, flexibility in the work schedule can be used extensively by organizations to motivate employees. Consequently, Yukl (2009) asserts that recognition of employees’ performance can be in the form of praise, awards or through ceremonies. Recognition of employees’ efforts and performance has positive impacts on the employees’ commitment, job satisfaction and organizational involvement (Romzek, 1985).

On the other hand, Thomas (2009) defines intrinsic rewards as non-formal rewards, nonmonetary/non-cash which can be in form of social recognition, praise and genuine appreciation. He observes that recognition is to acknowledge someone before their peers for desired behaviour or even for accomplishment. Appreciation, on the other hand, centers on showing gratitude to an employee for his/her action. Such rewards enable the employees to gauge themselves and their performance to know whether they are doing well or not (Sarvadi, 2010). Edirisooriyaa (2014) defines intrinsic rewards as the psychological reward that is experienced directly by an employee. He opines that intrinsic rewards steer up the willingness of the employees to use their creativity, abilities and know how in favour of their organizations to achieve optimal performance.

In contrast, intrinsic motivation refers to the motivation that comes from inside an individual. This type of motivation usually comes with the satisfaction employee gets after the work being done or in some cases during the working process. Intrinsic motivation can be influenced by several factors which are responsibility, freedom to act, scope to use and develop skills and abilities, interesting work and opportunities for advancement. These motivators are used to have a long-term effect as they come from the individual and not from the surrounding environment (Armstrong, 2013).

Torrington and associates (2009) used a different term for non-cash rewards i.e. non-material rewards and concluded non-cash rewards tend to increase the job satisfaction in employees particularly employees that show high productivity as compared to other employees. The study, conducted by the researchers, explains that when an employee is satisfied with monetary rewards, he/she starts searching for something different as cash benefits cannot satisfy the needs and can-not motivate in the same way. The study also emphasized the fact that intrinsic and extrinsic rewards should coexist in a reward system as only a balanced system may adequately meet motivation needs of employees and ultimately lead to optimization of commitment, motivation, and job satisfaction of employees (Emelianova, 2019).

Intrinsic rewards are those that exist in the job itself. Examples are achievement, variety, challenge, autonomy, responsibility, and personal and professional growth. They also include status, recognition, praise from superiors and co-workers, personal satisfaction, and feelings of self-esteem (Mottaz, 1985). Intrinsic rewards increase feelings of self-esteem and accomplishment (Honig-Haftel and Martin 1993). Intrinsic rewards are derived from the content of the task itself and include such factors as interesting and challenging work, self-direction and responsibility, variety, creativity, opportunities to use one’s skills and abilities, and sufficient feedback regarding the effectiveness of one’s efforts (Mottaz 1985). Employees are thought to be motivated to work hard to produce quality results when they have pride in their work, they believe their efforts are important to the success of the team, and their jobs are fun, challenging, and rewarding (Mahaney and Lederer 2006).

Intrinsic rewards refer to those incentives that have been given to the employees of an organization. An intrinsic reward is an internal reward that employees achieve from completing their tasks or projects successfully. These rewards are mostly psychological and are based on the effort and abilities of a person (Manzoor, Wei & Asif, 2021). Intrinsic rewards elicit a positive emotional reaction and work to motivate employees to continue to improve as well as make lasting behavioral changes when needed (Ryan and Deci, 2020). For example, when someone completes a task successfully, they will often experience a sense of satisfaction and achievement. This intrinsic reward then motivates the employee to continue to complete that task successfully in the future to further experience those positive emotions. Examples of intrinsic rewards in the workplace include pride in your work, feelings of respect from supervisors and/or other employees, personal growth, gaining more trust from managers, doing work that is enjoyable, feelings of accomplishment, learning something new or expanding competence in a particular area, allowing employees to choose which projects they work on, and being part of a team. The prior studies are in favor of the positive consequence of a reward system on the performance of the employees. Devaro et al. (2017) conducted their research in California, and they examined the relationship between training and internal motivation in organizations (profit and non-profit). The study concluded that training has a high frequency in nonprofit organizations, and these non-profit organizations have lower base wages as compared with for-profit organizations.

According to the study by Tymon Jr et al. (2010), the intrinsic rewards experienced are a critical element in employee retention, satisfaction with the organization, and career success. Stumpf et al. (2013) focused on reducing employee dissatisfaction and withdrawal in major, consultant designed, change programs by increasing intrinsic rewards. The findings of their study showed that intrinsic rewards related positively with satisfaction with the organization and intentions to stay at both time periods, with programs supportive of employee innovation further enhancing employee satisfaction and retention more strongly during the change effort.

Furthermore, Mosquera et al. (2020) evaluated the role of satisfaction with intrinsic rewards in the three largest real estate agencies in Portugal. The results of their study indicated that intrinsic rewards have a positive and significant impact on the job satisfaction of the employee. Bassett-Jones and Lloyd (2005) explained that intrinsic motivation and appreciation play a vital role in the satisfaction of employees rather than money and bonuses. Yang (2008) examined the individual performance and outcomes of his study and indicated that we cannot verify individual performance. Even so, he also claimed that if the performance of the employees is observable, then organizations can use direct bonuses or relational contracts to motivate them based on their performance.

Ajila and Abiola (2004) explained that intrinsic rewards have a positive and significant influence on the performance of the employee in an organization. The results further indicate that intrinsic rewards such as career development, responsibility, recognition, and learning opportunities are less influential on the job performance of an employee as compared to extrinsic rewards like pay, bonuses, promotion, and benefits. The employees prefer to get immediate monetary benefits as compared to the recognition of their works. Barber et al. (1992) determined that flexible benefits have a positive association with the performance of employees and satisfaction. Berdud et al. (2016) conducted their study in the healthcare sector of Spain and investigated the connection between incentives and internal motivation of the employees. They have collected the information with the help of interviews. The study concluded that doctors were intrinsically motivated due to two dimensions which included medical practice and pro-social dimension.

Employee Commitment

Khan, (2010) investigated the impact of employee commitment (Affective commitment, Continuance commitment and Normative commitment) on employee job performance from a sample of 153 public and private and public sector employees of oil and gas sector in Pakistan. The results revealed a positive relationship between employee commitment and employees’ job performance. Therefore, job performance emerged as a determinant of employee commitment. Thus, Khan, (2010) advised managers to pay special attention to antecedents of employee commitment and all the factors which foster employee commitment so as to increased employee performance and subsequently increase organizational productivity.

Habib, (2010) investigated the interdependency of job satisfaction and job performance, effect of employee commitment and attitude towards work on performance using a survey data collected from 310 employees of 15 advertising agencies of Islamabad (Pakistan). They found that employees having greater employee commitment perform well and employees having good attitude towards work are highly satisfied as compared to employees who are less inclined towards their work. Ali, (2010) found that there is positive relationship between corporate social responsibility and employee commitment as well as between employee commitment and organizational performance. They therefore concluded that organizations can improve their performance through employees’ commitment by engaging in social activities since such activities also include the welfare of employees and their families.

Affective Commitment

The affective commitment is referred to an employee’s emotional attachment, involvement, and identification with the organization and its goals. The affective commitment involves in three aspects like the formation of emotional attachment, identification and desire to maintain organizational membership in an organization. The identification and commitment will arise based on employees‟ own willingness to stay in the organization, Allen & Meyer; Meyer et al, (2004). The affective commitment is an emotional affiliation of the employees with the organization and it consist of three factors like beliefs, willingness and desire towards the organizational goal, Porter (1974). A study conducted by Mowday (1982), categorized the affective commitment with personal and structural characteristics, job and work experience.

Continuance Commitment

In continuance commitment, the employees consider the disadvantages of leaving the organization and avoid quitting. Moreover, the continuance commitment represents not a negative situation, though it is considered as a negative commitment type by the organizations. The continuance commitment is low when compared with affective commitment in the organization, Meyer & Allen (1997).

Normative Commitment

The Normative commitment is referred to a gratified feeling of an employee towards organization, and it is a value of loyalty and responsibility of an employee regarding his commitment to the organization, Meyer & Allen (1997). The normative commitment is natural, and it arises from the society due to other commitments like marriage, family, religion, etc. these commitments urge the employees to feel the ethical obligation in the organization, Meyer et al, (2004).

According to Madi, et al (2012) normative commitment refers to an employee’s feeling of obligation to remain with the organization where it based on the employee having internalized the values and goals of the organization. Normative commitment is said to reflect a sense of obligation on the part of the employee to maintain membership in the organization (Meyer & Smith, 2000; Bal, Sullivan, & Harper, 2014). It has also been conceived that the potential antecedents for normative commitment include co-worker commitment where it includes affective and normative dimensions as well as commitment behaviour, organizational dependability and participatory management. And that coworkers’ commitment is expected to provide normative signals that influence the development of normative commitment. It is worthy to mention that organizational dependability and participatory management are key issues that will foster and install a sense of moral obligation to reciprocate to the organization. Normative commitment is said to reflect a sense of obligation instilled in the employee to sustain membership in the organization (Bal, et al, 2014).  

Methodology

The target population consists of the 24 deposit money banks in Port Harcourt, Rivers state. Out of the 24 deposit money banks, 10 deposit money banks were selected for the study due to easy accessibility. However, the accessible population of this study covers 315 employees drawn from the ten (10) selected deposit money banks Port Harcourt. In determining the sample size for this study, the Yamane’s (1968) formula for sample size determination was used to arrive at a sample size of 176.

Hypotheses Testing

Hypothesis One: There is no significant relationship between Intrinsic reward and Affective commitment.

Figure 1 revealed that there is a significant relationship between Intrinsic reward and Affective commitment (p = .000 and β =0.654) hence we find that Intrinsic reward is positively associated with Affective commitment. This means that, an increase in Intrinsic reward will lead to a corresponding increase in Affective commitment and vice versa. Based on the decision rule of p < 0.05 for null rejection; we therefore reject the null hypothesis and restate that there is a significant relationship between Intrinsic reward and Affective commitment.

Hypothesis two: There is no significant relationship between Intrinsic reward and Continuance commitment.

Figure 1 revealed that there is a significant relationship between Intrinsic reward and Continuance commitment (p = .000 and β =0.773) hence we find that Intrinsic reward is positively associated with Continuance commitment and based on the decision rule of p < 0.05 for null rejection; we therefore reject the null hypothesis and accept the alternate: there is a significant relationship between Intrinsic reward and Continuance commitment.

Hypothesis three: There is no significant relationship between Intrinsic reward and Normative commitment.

Figure 1 revealed that there is a significant relationship between Intrinsic reward and Normative commitment (p = .000 and β =0.814) hence we find that Intrinsic reward is associated with Normative commitment and the association is positive. This means that, an increase in Intrinsic reward will lead to a corresponding increase in Normative commitment vice versa. Based on the decision rule of p < 0.05 for null rejection; we therefore reject the null hypothesis and restate that there is a significant relationship between Intrinsic reward and Normative commitment.

Discussion of Findings

Relationship between Intrinsic reward and Affective commitment

The bivariate hypotheses between Intrinsic reward and Affective commitment reveal a noteworthy relationship between the two variables. The Path Coefficient reveals β = 0.654, p = 0.000 which implies that Intrinsic reward has a significant relationship with Affective commitment. Thus, the null hypothesis was rejected and the alternate hypothesis was accepted. The result of the Path Coefficient (β) is 0.654. This thus reveals that there is a strong positive significant relationship between Intrinsic reward and Affective commitment. Thus, enhancing Intrinsic reward will help enhance Affective commitment. Thus, the first objective of the study which sought to examine if Intrinsic reward relates with Affective commitment was achieved. This finding agrees with that of Al-Smadi (2020) who asserted that intrinsic rewards has a positive and statistically significant impact on the employee’s affective commitment. Shahzadi and Farooqi (2014) came up in their study that a good reward and better working conditions have significant impact on employee’s commitment.

Relationship between Intrinsic reward and Continuous commitment

The bivariate hypotheses between Intrinsic reward and Continuous commitment reveal a noteworthy relationship between the two variables. The Path Coefficient reveals that β = 0.773, p = 0.000, which implies that Intrinsic reward has a significant relationship with Continuous commitment. Thus, the null hypothesis was rejected and the alternate hypothesis was accepted. The result of the Path Coefficient (β) is 0.773. This thus reveals that there is a significant relationship between Intrinsic reward and Continuous commitment. Thus, enhancing Intrinsic reward will help enhance Continuous commitment. Thus, the second objective of the study which sought to examine if Intrinsic reward relates with Continuous commitment was achieved. This finding agrees with that of Obicci (2015) who revealed that both external reward and intrinsic reward has a positive and significant influence on employee continuance commitment. Shahzadi and Farooqi (2014) found out that factors like employees’ relationship with their supervisors, training process, opportunities for improvement can greatly influence the performance of employees

Relationship between Intrinsic reward and Normative commitment

The bivariate hypotheses between Intrinsic reward and Normative commitment reveal a noteworthy relationship between the two variables. The Path Coefficient reveals that β = 0.814, p = 0.000, which implies that Intrinsic reward has a significant relationship with Normative commitment. Thus, the null hypothesis was rejected and the alternate hypothesis was accepted. The result of the Path Coefficient (β) is 0.814. This thus reveals that there is a significant relationship between Intrinsic reward and Normative commitment. Thus, enhancing Intrinsic reward will help enhance Normative commitment. Thus, the second objective of the study which sought to examine if Intrinsic reward relates with Normative commitment was achieved. This finding agrees with that of Mbah, Mgbemena and Ejike (2015) who opined that such factors as employee recognition, conducive work environment and staff development were seen as having bearing with employees’ normative commitment.

Conclusion

Intrinsic reward in form of trainings, recognition and other non-financial rewards have a positive and significant relationship with the level of employee commitment to the organization. This goes to show that when organizations are interested in the personal development of the employees, it will aid their commitment to the growth and development of the organization. It also indicates that when organization put in place proper intrinsic rewards, it will enhance the commitment of the employees thereby increasing the employee retention rate while reducing the employees’ intention to leave.

Recommendations

Based on the findings and conclusion of this study, the following recommendations are hereby proffered.

  1. Management should ensure that recognition is given where needed for outstanding performance in order to ensure that the commitment of the employees is at a highest level.
  2. Management of deposit money banks should engage employees in training programmes that are geared towards their personal and career development as it will enhance their skills thereby ensuring that they are committed to the organization.
  3. The use of contract staff which tends not to give job security should be discouraged while permanent employment should be given to employees to make sure that they feel secured about their jobs in the banks.

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Appendices

Figure 1: Intrinsic reward and Measures of Employee Commitment

Source: SmartPLS 3.3.3 Output on Research Data, 2023

Table 1: Summary of the Result and Decision Making

Hypotheses Path Coefficient (β) P Values (p) Predictive Accuracy (R2) Decision on Hypothesis
HO1 There is no significant relationship between Intrinsic reward and Affective commitment. 0.654 0.000 0.427 Reject Null Hypothesis
HO2 There is no significant relationship between Intrinsic reward and Continuance commitment. 0.773 0.000 0.567 Reject Null Hypothesis
HO3 There is no significant relationship between Intrinsic reward and Normative commitment. 0.814 0.000 0.662 Reject Null Hypothesis

Source: SmartPLS 3.3.3 Data Output, 2023

 

 

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