Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
An Open Access Journal Available Online
Covenant Journal of Business & Social Sciences (CJBSS)
Vol. 9 No. 1, June, 2018
Publication of College of Business & Social Sciences, Covenant University, Canaanland.
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
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ii Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
Articles
The Causes and Effects of Rural Poverty in Rivers State: Ikwerre Communities‟ Perspective Goddey Wilson 1
Reward System and Public Secondary School Teachers‟ Performance Bawalla Oluwatoyin Gbenga & Nafiu Folarin Yakub 15
Experience and Reactions to Psychological Contract Breach among Nigerian University Academics Omole Iyayi 30
The Value Added Tax (VAT) Administration in Nigeria and the Practice of Estate Surveying and Valuation Caleb Abiodun Ayedun, Daniel Olufemi Durodola, Samuel Adesiyan Oloyede & Abiodun Samson Oni 45
Victims of Medical Errors in Osun State, Nigeria: A Qualitative Study Kamorudeen Adegboyega 55
Mainstreaming Global System of Mobile Telecommunications for Agricultural Development in Nigeria Dr. Micah Damilola John 72
Monetary Policy and Oil Revenue in Nigeria: Pre and Post Effect Analysis Cordelia Onyinyechi Omodero & Christian N. Worlu 87
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June,. 2018
An Open Access Journal Available Online
The Causes and Effects of Rural Poverty in Rivers State: Ikwerre Communities’ Perspective
Goddey Wilson, Ph.D
Department of Political Science, Faculty of Social Sciences, Ignatius Ajuru University of Education, Rumuorlumeni, Port Harcourt. [email protected]
Abstract: The study examined the basic characteristics of the rural poor as well as the causes and effects of rural poverty in rural Ikwerre communities of Rivers State, Nigeria within the period of 2000-2018. Primary and secondary sources of data were used for this study. Social exclusion theory was adopted as the theoretical framework of analysis on the causes and effects of rural poverty. The study classified the rural Ikwerre poor as cultivators and non-cultivators in the society and characterized rural Ikwerre poor as peasant farmers, hunger prone people, less educated, cheap labour, vulnerable people among others. The study identified the activities of oil multinationals; cult groups and gangs; over dependence on the family heads; gender inequality; discriminating state economic policies; poor orientation and education of the youths among others as the causes of rural poverty in rural Ikwerre communities with its attendant effects on the rural poor and the communities. The study made some recommendations on how to alleviate poverty in rural Ikwerre communities of Rivers State, Nigeria. Keywords: Poverty, rural poor, rural areas, Ikwerre communities
Introduction for about 63% of poverty in Rural poverty is a typical poverty communities of the developing states, usually found in the rural areas, which including Ikwerre communities of expresses inability of the rural poor Rivers State in Nigeria. Rural Ikwerre within the context of socio-cultural, communities are characterized by the political and economic inequality. Khan indices of poverty as observed in the (2001) states that rural poverty accounts lack of basic infrastructure, inaccessible
1 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 earth road with poor network, effects of the rural poverty on rural inadequate market for their farm Ikwerre poor and communities of Rivers products, poor health and educational State, Nigeria. facilities, constant conflict arising from Scope of the study struggle for the few available resources, This research was carried out within the poor drinking water, and absence of period of 2000-2018 in rural Ikwerre security leading to human insecurity in communities. The study conceptualized such communities. The indices of rural poverty, and covers the issues of poverty in the rural communities convey the causes and effects of rural poverty in the inability and relative deprivation, rural Ikwerre communities of the four which they suffer and which classify Ikwerre ethnic local government areas them as the rural poor. Hence, in this in Rivers State research, the rural poor are those living Methodology in rural Ikwerre communities, who are In our study on the causes and effects of predominantly farmers and classified as rural poverty in Rivers State : Ikwerre cultivators and non-cultivators, and communities‟ perspective, we used migrant labourers, who lack the basic primary and secondary data. We used needs necessary to live well in the interview and observation methods to communities. Mosely & Miller (2004) collect primary data, and documented see the rural poor as the class of rural facts from journals, books, newspapers, people who are largely deprived and reports etc., as secondary data on the disadvantaged relatively to their subject matter, and content analysis as a counterparts in the urban communities. tool to analyse the study data. The study The deprivation and disadvantage of the population consisted of the people of the rural poor affects their condition of rural communities in Ikwerre ethnic living and by extension the development nationality, covering four (4) local of the community. Incidentally, rural government areas in Rivers State, poverty is not the wholesome creation of namely Port Harcourt City Council; the rural Ikwerre poor, but can be Ikwerre Local Government Area; Obio attributed to the forces of social Akpor Local Government Area; and inequality, capitalist market structure, Emohua Local Government Area. and inadequate state policies. This Conceptual Framework prompts the rural Ikwerre poor to Rural Poverty. persistently search for a better condition To understand rural poverty, it is of living, either through migration to the important to firstly explain rural area urban Ikwerre communities or demand and poverty separately, and later rural for state intervention programmes, as poverty as a concept. Rural area within every Ikwerre person desires to live and the context of community existence is survive, without the fear of hunger, explained as the area geographically scarcity, and human insecurity prevalent located outside the frontiers of the urban in the communities. The prevalence of areas/cities. Ojukwu (2013) explains poverty in rural Ikwerre communities rural area as the area that is prominently has placed the rural poor as helpless a natural environment with basic class of people in Ikwerre communities. characteristics of low population This motivated our research to examine density, low income, and lack of basic the basic characteristics of the rural social infrastructure, with the indigenes Ikwerre poor as well as the causes and
2 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 predominantly farmers. The above such as food, shelter, clothing, as well as characteristics apply in Ikwerre not meeting his social and economic communities located outside the urban objectives, lacks gainful employment area/cities of Ikwerre ethnic nationality and is deprived of the social, health and of Rivers State. Many scholars, educational infrastructure. Poverty including Khan (2001) state that a large deprives people, usually the poor, the population of people in developing opportunity of participation and states, including Nigeria, are living in advancement in life, and reduces their rural areas with its attendant dignity in the society. Ekpo (2000) in development challenges. In rural Wilson (2011:67) adds that poverty is a Ikwerre communities for instance, large situation of inability characterized with population of the people live in low income and low consumption in the conditions where they lack basic society. The above views explain the infrastructure, access to basic needs of prevailing conditions of the rural poor in life, have low income and consumption Ikwerre communities, as they are often rate, and are predominantly peasant classified as people with low socio- farmers, who employ crude farm tools economic, political, and technological in their farming. Indeed, these are the ability, who suffer low income and rural poor in rural Ikwerre communities. consumption rate, and are not gainfully The rural Ikwerre communities include employed, and lack basic needs of life in Rumu-Odogo 1, Rumu-Odogo 2, their communities. The poverty creates a Evekwu, Ovogo, Agba-Ndele, Egamini- wide gap of socio-economic and Ndele, Akpabu, Ozuaha, Omademe, political inequality between the rural Omudioga, Ubimini, Egbeda, Odoha- poor and urban people.
Emohua, Ibaa, Rumuekpe etc., and are Sequel to the above, rural poverty is more located in Emohua and Ikwerre explained as the poverty commonly Local Government Areas than Obio found in rural areas, including rural Akpor Local Government Area and Ikwerre communities, occasioned by Port Harcourt City of Ikwerre ethnic such factors as rural economy, and rural nationality in Rivers State. political system, with the victims
In this research, poverty is explained classified as the rural poor. Rural from different perspectives. Fields poverty is further explained within the (1994) sees poverty as the inability of an context of low income capacity, and low individual or family to sufficiently production and consumption rate of the possess resources to satisfy his or her rural people and accounts for their basic needs of life. This proves that inequality. Rural poverty in rural poverty is the inability of both communities reflect in such areas as individual and groups, and is basically inaccessibility to good drinking water, in area of poor standard of living. The poor health care and sanitation, poor above view explains poverty within the housing facility, poor educational context of socio-economic inability in facility leading to high illiteracy rate, the society, and is more of absolute large number of inaccessible earth road, terms. Similarly, Engelama and poor communication facility, and Bamidele (1997) state that poverty is all absence of good market. Mashika, Haan about the individual not being able to & Baden (1997) add that the social cater properly for his/her basic needs indicators of rural poverty include low
3 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 life expectancy, high infant mortality, inequality in the society. Young (2000) poor nutrition, low household budget on states that those who are often socially food, high illiteracy, poor access to excluded are classified as the poor, and health care etc., and see the above are denied access to participate fully in indicators as common index of social socio-economic and political activities and material welfare associated with the in the society. Vroom & Hoff (2013) rural poor. Rural poverty accounts for identified the major areas where the the high incidence of rural- urban exclusion occurs as “insufficient access migration in Ikwerre communities. The to social rights; material deprivation; rural poor in rural Ikwerre communities limited social participation; and lack of in search of improved standard of living, normative integration”. In most cases, basic infrastructure and basic needs of those deprived carry out collective life, migrate to urban Ikwerre actions to resist their deprivation, but communities such as Eneka, Woji, always loss due to their inability. In Choba, Port Harcourt City, their study, Haralambos & Heald (1980) Rumuodumaya, Rumueme, Rumuigbo, corroborate with the above perspective Rumuola, Ozuoba etc., and create urban on the cause of poverty, and adds that challenges in the state. Although the the social exclusion of people in government has made several attempts activities of the society results to to alleviate rural poverty in rural poverty of the people, and identifies Ikwerre communities. However, it social exclusion as the main cause of appears the attempts were inadequate, as poverty. This study adopts the above the indicators of rural poverty are still explanation on the causes and effects of high. rural poverty, and notes that the root
Theoretical Framework cause of rural poverty in Ikwerre is the Social Exclusion Theory social exclusion of some people from Social exclusion theory became active political, social, and economic prominent in poverty studies in 1990s activities leading to the emergence of the rural poor in the community. after the economic crisis that affected France and subsequent European policy Area of the study: Background agenda on social exclusion. Ever since, information on Ikwerre Ethnic different scholars have giving different Nationality. perspectives on social exclusion. Hillary Ikwerre is one of the prominent ethnic (1994) sees social exclusion as the groups in Rivers State within the Niger process whereby some set of persons are Delta region of Nigeria. Ikwerre is the “systematically” prevented from having single largest tribe in Rivers State, but access to their desired rights and one of the minority ethnic groups in privileges that are normally available to Nigeria. The ethnic group is every member of the community. Such strategically located in the heart of rights and privileges are seen from the Nigerian economy as one of the oil and point of right to good accommodation, gas producing ethnic groups in Nigeria. health care and services, access to Geographically, Ikwerre as a tribe is education, employment opportunity, made up of four (4) Local Government democratic participation etc. The Areas (LGAs), namely Emohua, deprivation is made possible due to the Ikwerre, Obio Akpor, and part of Port inherent social class structure and Harcourt City Council, and is located
4 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 within the Rivers East Senatorial service, jobs and other economic District of Rivers State ( See Appendix activities (Wilson, 2016). As a tribe with 1). National Population Commission several communities in the Niger Delta (2006) holds that the Ikwerre ethnic region, some Ikwerre communities are group has a total population of oil and gas producing. Ikwerre ethnic 1,390,895 people, with Emohua LGA - group is the economic hub of Rivers 210,057 people, Ikwerre LGA -188,930 State, as the area house several oil people, Obio Apkor LGA - 460, 350 multinationals, oil servicing companies, people, and Port Harcourt City - and other industrial concerns. With the 538,588 people, having different high presence of the companies in the villages and clans. The Ikwerre ethnic area, the area accommodates the highest group houses the capital city of Rivers number of migrant workers in Rivers State (Port Harcourt), and many higher State, seeking for greener pasture and educational institutions in the state, such better economic living, thereby leading as University of Port Harcourt, Rivers to population explosion, particularly in State University, Ignatius Ajuru Obio Akpor Local Government Area University of Education, Elele Campus and Port Harcourt City Council of the of Madona University, Elechi Amadi state. The increase in population also Polytechnic, Rivers State School of provides market for both small and large Nursing, Rivers State School of scale traders. With the oil and gas Midwifery, and Rivers State School of exploration and exploitation activities, Health Science and Technology. The the Ikwerre people like other Niger ethnic group shares boundary at the East Delta people are facing environmental with Etche, Eleme, Okirika and Oyigbo and economic challenges in their Local Government Areas of Rivers communities.
State, at the West with Ahoada - East Socio-culturally, Ikwerre people speak and Abual Local Government Areas of Ikwerre language, although with some Rivers State, at the North with minor dialectical differences, but easily Ogba/Egbema Local Government Area understood among them. Due to the of Rivers State and Egbeme/Ohaji Local high presence of strangers in the area, Government Area of Imo State, and at English language is used as the second the South with Asari-Toru, and Degema and official language for Local Government Areas of Rivers communication, and a good number of State. See Appendix 1.. The River the Ikwerre people speak their Sambrayo demarcates the Ikwerre neighbouring tribes languages' such as people and their neighbours at the Igbo, Eleme, Kalagbari, Okirika, western and southern parts. Ikwerre is Ekpeye, and Etche. The Ikwerre people blessed with large farm lands, are peaceful and accommodating, mangroves, forests and rivers. thereby accounting for the high
Economically, the combination of large migration of people to the Ikwerre forest, mangrove, river and farmlands in communities of the state. The people Ikwerre provide opportunity for the have rich cultural heritage and respect people to be fishermen, farmers, for their elders. Some of the Ikwerre herbalists, and traders. With the advent cultures include new yam festival of the western education, some of the holding every August and September of people are now engaged in public the year in their respective communities,
5 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 traditional marriage ceremony, burial purposes, there is Ikwerre General rites, age grade initiation, wrestling Assembly called Ogbakor Ikwerre, competition within and between the where every adult Ikwerre son and communities, etc. Some of the people daughter assemble to discuss Ikwerre carry out different ancestral worship, development, and thereafter, policy thereby making them to be African decisions reached in the assembly is religion worshipers, while many are implemented by the constituent units. Christians, with few Muslims among Politically, Ikwerre communities have them. There are mix sources of origin of traditional political and administrative the Ikwerre people. A popular source system and structures with the families, has it that the Ikwerre people migrated villages and clans serving as the from the Old Benin Kingdom and has constituent units for administrative the Ekpeye and Ogba ethnic groups as convenience, and each headed by the relations (Nyegonum, 2016). Another oldest man as the traditional Prime source has it that the Ikwerre people Minister in charge of the unit. The chief migrated from the Igbo land (Chigere, in each of the unit serves as the 2001) and (Udeani, 2007). However, administrative head of the unit. There is whatever the source, the fact remains a separation of power between the chief that Ikwerre is an independent ethnic and traditional Prime Minister in group with some cultural relativities administration of their areas. The with both the Igbo, Ekpeye, Benin and traditional Prime Minister is the Oha Ogba ethnic groups in Nigeria. (Owhor holder) and is in charge of
Traditionally, the Ikwerre people have traditional and ancestral matters well respected traditional administrative including libation and sacrifices to the institutions for ease of political and ancestors, and mediates between the administrative activities at all units. people and their ancestors. He serves as Such institutions are family, village and the Supreme Court in judgment of clan youth forum, women association, disputes between individuals, families, men association, age grade, general villages, and clans. The chief is the assembly, council of chiefs, and council administrative head in charge of daily of village heads (Owho holders). These affairs of the people and liaises between institutions oversea the affairs of people the people and government for in their communities, settle disputes development purposes in the area. where necessary, and carry out Chiefs in most cases serve as the development projects. Wilson (2016:52) paramount ruler in their communities, as holds that each of the institution is they are usually younger and more charged with specific responsibility to educated. However, there is a strong ensure political and administrative synergy and administrative stability, peaceful co-existence, and collaboration between the chief and development of their communities. traditional Prime Minister in Ikwerre Unfortunately, there is no central head, land. traditionally controlling the affairs of The Characteristics of Rural Poor in the Ikwerre people as obtainable in other Rural Ikwerre Communities tribes like the Eze Ekpeye of Ekpeye The rural poor in Ikwerre communities Kingdom, Oba of Ogba land, Gbeneme are those residing in rural Ikwerre of Ogoni land etc., but for convenient villages, who have limited access to the
6 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 basic needs of life. They are mostly and food price in the communities. women, elderly ones and children Their inability is expressed in their lack (usually fatherless, motherless or of basic needs of life and inaccessibility orphan), and are predominantly farmers, to basic infrastructure. In their quest for fishermen/women, small scale traders, better living, they often migrate to other herbalists, and others who provide cheap parts of Ikwerre and neighbouring labour services in the communities. communities, usually urban They are classified as the poor on communities where their labour will be account of their inability to afford their hired and paid for. This accounts for basic socio-economic and political high indices of rural -urban migration in needs. Generally, the rural poor in the state. The rural poor in Ikwerre Ikwerre communities are broadly communities are further characterized as classified as Cultivators and Non- follows: cultivators. The Cultivators are the Peasant Farmers : The rural Ikwerre group of rural poor who are directly poor in Ikwerre communities are involved in crops and livestock predominantly farmers, who largely production and management, although farm for household consumption, and in small quantity. The cultivators have less for the market. Our field finding limited access to the farmland, either as proved that over 90% of the rural land owners or tenants (rented) to enable Ikwerre poor are peasant farmers, who them farm and earn a living. Farmlands have less access to both private and in Ikwerre community are owned and family farmlands, and therefore lack controlled by the families, and therefore capacity to achieve high productivity, are shared to the adult family members thereby leading to low income and annually, usually in small quantity while consumption. the surplus is sold to others. Due to Cheap Labour and hunger prone inadequate farmland shared to the people : The rural poor provide cheap family members and inability of the manual labour services in the poor to acquire the desired quantity of communities. They work longer than the farmland, they resort to provide their normal working hours, yet are paid labour for others to hire. peanut. They carry out all sorts of Non-cultivators form the largest part of farming activities for others, and yet the rural poor in Ikwerre communities, have no access to the products, and and are considered as the poorest of remain dependent on others for survival. them all. The Non-cultivators are those This results in low income which they without access to farm lands, either as spend largely on household food items, farmland owners or as tenants, and yet cannot afford the needed food for therefore depend solely on their labour the household and therefore they remain power (usually on dry season demand always hungry. for their labour in farming) and other Own less physical properties and lack domestic activities for a living. Many of access to infrastructure. The Ikwerre them are not financial members of the rural poor, particularly, the non- family and therefore are not given cultivators have little or no property to farmlands due them. Non-cultivators their credit in the communities. All they become victims of fluctuation or change own as property is their manual labour, in labour demand, change in wage rate which they hire as services to others at a
7 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 cheap rate. The study noted that over equipped public schools in their rural 70% of the Ikwerre rural poor lack communities and are often deprived sufficient property to attend to their access to educational opportunities from daily needs. Due to this inability, they oil multinationals and state scholarship are easily manipulated by others during programmes, due to their inability to political and socio-cultural activities in access information concerning the the community. They lack good scholarship. In most cases, their children accommodation, good drinking water, are not even admitted to certain public have no access to electricity, lack basic schools on account of inability to pay needs of life and access to social fees/levies. The study noted that 62% of infrastructure. the rural poor children have no access to
equipped schools in the state Limited participation in community decision making: The rural poor are not Have no access to bank facilities : The given equal opportunity to participate rural poor have no access to bank accordingly in Ikwerre community facilities, due to their inability to afford decision making process. They are often bank collateral. Physically, no bank is excluded in the process on account of situated within the rural Ikwerre areas, poor education, inferiority complex and indicating 100% absence of banking other inabilities. In the community facility in rural Ikwerre communities, general assembly, they are neither and therefore accessing information recognized nor identified to participate about bank facility becomes a problem. in political activities other than using This makes the rural poor in Ikwerre them for manual labour works. All they communities to operate on limited participate is in their immediate economic infrastructure leading to their household decision affairs. This low productivity. limitation creates more inability in them, More vulnerable to risk : The rural thereby increasing the socio-cultural poor in Ikwerre communities are inequality of the rural poor in Ikwerre. exposed to all kinds of risk in the
Depend largely on charity and public communities arising from their inability. facilities: Our interview with some of The rural poor, particularly the women the rural Ikwerre people indicates that and children become victims of the Ikwerre rural poor have a unique trafficking and in most cases get involve poverty character of high dependence on in prostitution for a living. Their free donation and support from the children abandon school for casual multinationals and can only access those labour to earn income to support the facilities provided by charity family for a living, and in return are individuals, organisations, and the state exploited by their masters. The rural such as public schools, health centers, poor are usually the first to suffer any water, etc. This is on account of their epidemic and disease in rural Ikwerre inability to afford such facility privately. communities. They are the worst hit in
Less educated: The rural Ikwerre poor event of any communal violence and and their children face the risk of less exposed to hazardous economic and educational opportunity due to high cost political challenges in Rivers State. of education in the state. The rural They suffer intimidations and all forms Ikwerre poor have no access to quality of discriminations from others in the communities. education. They only attend the ill
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The Causes and Effects of Rural communities. These groups carry out Poverty in Rural Ikwerre several activities and operations that are Communities inimical to community development, This section of the study analyses the particularly rural communities. They causes and effects of rural poverty on facilitate communal crisis and violence, rural Ikwerre communities of Rivers rape women, kidnap people for ransom, State. and in the process, the rural Ikwerre
The activities of oil multinationals in people run away from their communities the communities. Wilson (2013) stated to other communities in search of peace that on several occasions, the inability and security. In their new settlement, of oil and gas multinationals - Shell BP due to inadequate farmlands and poor and Agip Oil companies to manage its economic resources, the people are oil installations led to the oil pipe line neither opportune to farm adequately to explosion and pollution of River cater for their family food needs nor are Sambrayo, which affected the riverine they able to carry out trading activities Ikwerre communities such as Agba- to earn income. Even when they are Ndele, Rumuekpe, Ogbakiri, Emohua, willing and able to hire out their labour Rumuodgo 2, Rumuewhor etc. Wilson as services to others, they are hired at a (2013) sees the activities of the oil and price not commensurate to their labour gas multinationals in Ikwerre input, and therefore cannot earn communities as the cause of adequate income to afford their basic environmental pollution in the area with needs. The people of Rumuekpe, Ibaa, its attendant implications on both the Omudioga, Ogbakiri, Rumuji, Obelle, people and the communities. Nsirim- Elele Alimini communities, etc were Worlu (2012) adds that the operation of causalities of the such groups' activities the multinationals in the area have in their communities, and suffered food negative impact on the environment of scarcity and human insecurity at several the area. The upland communities such times. as Ibaa, Omudioga, Iguruta, Elele etc Large family system and dependency were not excluded from the oil pollution for livelihood on the head of the of their farmlands. As a result, fishing family. and farming activities are cut short in Ikwerre culture encourages the man to these communities, leading to low food marry as many wives as he desires, and production, low income, and hunger and attribute the wives as the man's assets. scarcity in the Ikwerre communities and The man (father) becomes the head of culminating in the poverty for the rural the family and is saddled with the Ikwerre people. responsibility of feeding the wives and
The activities of cult groups, gangs children and providing their basic needs. and militants in Ikwerre This makes the large family to depend communities. Rural Ikwerre solely on him for survival. In most communities, like other Niger Delta cases, due to the large capacity of the communities, are not devoid of cult family, the man hardly can afford to groups, street gangs and militancy provide the basic needs of all the family activities. Wilson (2017) classified the members, including some children, cult groups, gangs and militants as Non- thereby depriving such children access State Security Actors in Niger Delta to basic education, good food, good accommodation, health care, etc and this
9 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 is responsible for the poverty in the deprives them access to bank loan to family, and by extension the enhance their farming and other communities. economic activities. This contributes to
Gender inequality in enforcement of poor agricultural productivity and low right of inheritance and possession of economic activities in rural Ikwerre farmlands and other properties. communities, and increases the list of Ikwerreboy (2015) holds that Ikwerre the poverty of the rural Ikwerre poor. people have rich cultural heritage, with Activities of Corrupt Politicians and some harmful practices. In Ikwerre Public Bureaucrats. Corrupt politicians culture, all farmlands are owned and and public bureaucrats in the state controlled by the families. In the family, services use the instrumentalities of the the men are considered first in state power to deprive the rural Ikwerre farmlands allocation during farming poor of infrastructure. Every year, the season. However, the women may be government at all levels make budgets given small portion if the farmland for the development of the rural areas, remains after extensive sharing to the including rural Ikwerre communities in men. In most cases, the women are not such areas as provision of good and considered at all, despite the available accessible roads, electricity, drinking quantity of farmlands for the season. On water, health care facility, education for event of death of the head of the family all, affordable accommodation, (husband), only the male children are economic empowerment of the poor, recognized and considered to inherit the etc. At the end of the year, the monies farmlands and other properties of their budgeted for these development items father, with the first son possessing the are expended by the politicians and largest portion of the farmlands and the bureaucrats without any development in highest properties. The female children, the rural areas, as the rural poor remain irrespective of their number and age are the same. Despite the regular annual landless members of the family. This budget for drinking water projects, traditional inequality accounts for the health care, affordable accommodation deprivation of the women and female through state housing, electrification children in rural Ikwerre communities. and construction of motorable roads in They are deprived access to adequate Rumuodogo 1&2, rehabilitation of farmlands even when they are willing Agba-Ndele road, Rumuekpe road and and able to farm in large quantities. This electricity, Akpabu road, Ibaa road, etc, results in poverty, as they cannot afford these and other rural Ikwerre to provide the needed food for their communities exist without good roads to families, particularly the widows in rural transport their agricultural products to Ikwerre communities. the urban markets. This denial of the
Discriminating State Economic basic infrastructure to the rural poor Policies. Some of the State economic accounts for their poverty. policies are against the rural Ikwerre State Acquisition of Rural Ikwerre poor and account for their poverty. The Farmlands for State Projects. The bank policy on obtaining bank loan with State through its Lands Reform Policy collateral is against the rural poor, who acquired large portions of Ikwerre have no collateral to present. Their farmlands and converted same for its inability to afford the bank collateral projects. Farmlands were acquired in
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Choba, Aluu and Rumuekini Crude Farming Equipment and communities for University of Port System: The rural Ikwerre poor, who Harcourt and its allied institutions; are predominantly farmers still use Nkpolu Oroworukwo farmlands for crude farming equipment, usually knife Rivers State University and its allied and hoe and operate on land tenure institutions; Rundele, Rumukalagbor system. These crude equipment and and Rumuorlumeni communities system limit them from carrying out farmlands for Ignatius Ajuru University farming activities in large scale for large of Education; Ogonigba, Rumuomasi scale productivity, and therefore account and Ogbum-N'abali communities for their low productivity and low farmlands for industrial layout (Trans- income in the community.
Amadi), Elele, Ipo, Ozuaha, Omademe, Strategies to Reduce Rural Poverty in Omerelu, Akpabu, and Ubimini Rural Ikwerre Communities farmlands for Palm Estate (SIAT) etc. This section states the strategies to These large portions of farmlands alleviate the rural poverty in rural acquired by the state deprives the rural Ikwerre Communities of Rivers State. farmers' the opportunity of farming The state in collaboration with adequately for their survival, and the affected Ikwerre encourages idleness and poverty in such communities should engage the rural communities. rural youths in educational Cultural Value, Poor orientation and programmes and regular Education of the Youths : Ogoloma orientation on the need to adapt (2003) sees the Ikwerre culture as a to change in the communities. rigid entity that is not dynamic enough This will enhance the to accommodate modernization, thereby educational capacity of the affecting the people orientation and youths and their productivity in growth. Culturally, the strength and Ikwerre communities value of Ikwerre men/women are The rural development agencies determined by the capacity of farmlands should enforce its policy he/she is able to possess and farm objectives for the development effectively. This prompts many youths, of the rural areas, including particularly in the rural areas to engage Ikwerre communities. themselves in large farming activities, There should be opportunity for although in crude farming system in the rural Ikwerre poor to access order to be recognized and attain the bank facility for farming needed cultural status, thereby keeping activities without much away from western education. The long restriction through collateral. -run effect is that most of the rural- The state should encourage the youths are poorly oriented and educated, banks to establish at least a but highly valued culturally due to their branch in rural Ikwerre physical strength and farming activities. community, particularly in This poor orientation and education of Emohua Local Government the rural youths account for their Area of the state. poverty of the mind, and deprives them Government at all levels should access to greater opportunities. Indeed, implement rural development it leads to their socio-economic poverty budget for the development of even in their communities. 11 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
the rural areas, including involve in corporate social Ikwerre communities to reduce responsibility projects for rural poverty in Ikwerre rural Ikwerre communities‟ communities. development. There should be a reform on Activities of the ethnic militias Ikwerre cultural right of and cult groups/gangs should be inheritance and access to checked and controlled by the farmland and other properties to State Security Agents to reduce give equal and better violence and suffering of the opportunity to both male and poor. female children. The government should The oil and gas multinationals empower the rural Ikwerre poor, operating in Ikwerre who are farmers with improved communities should maintain seedlings, farming equipment their oil facilities to avoid and train them on new farming pollution of the host skills to improve their farm communities and seriously yields.
References Hillar, S. (1994) Social exclusion and Chigere, N. H. (2001) Foreign social solidarity : Three paradigms. missionary background and International Labour Review. indigenous evangelization in Igbo 133(5-6). pp 531 – 578. land, www.books Ikwerreboy (2015) Ikwerre people with goole.com/books. Retrieved on cultural and political advantage. 10/11/2017. www.nairaland.com Ekpo, H.H. (2000) Poverty alleviation Khan, M.H. (2001) Rural poverty in and substance of democracy in developing countries: Implications Nigeria. In E.G. Uya & J Okoro for public policy. A publication (eds). Civil Society and the of International Consolidation of Democracy in Monetary Fund. Nigeria. Calabar: University www.imf.org/external/pubs/ft/issue Calabar Press. s26. Retrieved on 8/10/2017. Engelama, A. & Bamidele, A. (1997) Mashika, R., Haan, A. De., & Baden, S. Management issues in poverty. (1997) Urbanisation and Urban Selected paper for the 1993 Annual poverty : A gender analysis. A Conference of the Nigeria report prepared for the gender Economic Society on Poverty equality unit, Swedish International Alleviation in Nigeria. Development Cooperation Agency Fields, G. (1994) Poverty changes in (Sida). developing countries. In H. R. Mosely, J. & Miller, K. (2004) Special Vander & R. Anken (eds.) Poverty variations in factors affecting Monitoring: An Internal Cancer. poverty. RURI Ryral Poverty New York : St. Martins Press. Research Centre. Haralambos, M. & Heald, R. M. (1980) www.missouri.edu/files/ipp/attach Sociology : Theme and ments/spatial-vahation-in-factors- Perspectives. New Delhi : Oxford affecting-poverty. Retrieved on University Press. 10/10/2017.
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Nyegonum, A. N. (2016) Facts about survey approach to the Benin origin of Ikwerre tribe. multidimensional measurement of www.edonationstatelie.blogspot.co social exclusion. Socila Indicators m.ng/2016/07/facts-about-benin- Research. 113(3). pp 1261-1287. or... Retrieved on 10/11/2017 Wilson, G. (2011) Poverty and Nsirim-Worlu, H (2012) Oil production democratic consolidation in and changing cultural pattern in Nigeria, 1999-2010. Nigerian Ikwerre Journal of Social Development Ethnic nation. : Acase of Obio-Akpor. Issues. 8(1), 62-79. Academic Research International. Wilson, G. (2013) The politics of youth 2(1). 103-110. violence in Rumuekpe and its Ogoloma, F. L. (2013) Traditional impact on Rumuekpe community settlement of dispute among development, 2004 -2010. Ikwerre ethnic Mediterranean Journal of Social nationality in Rivers State, Nigeria Sciences. 4(6), 73 – 82 : An appraisal . African Research Wilson, G. (2017) Non-State security Review. 7(1) 61-72 actors and community Ojukwu, U. G. (2013) Understanding development in Niger Delta rural and urban development in Region, Nigeria, being a paper Nigeria : Theory and practice. presented during the 5th Annual Nimo : Rex Charles & Patrick Conference of Nigerian Political Limited. Science Association (NPAS), Udeani, C. (2007) Inculturation as South East Zone at Abia State dialogue : Igbo culture and the University, Uturu, Nigeria on 12th - massage of Christ. www.books 15th November, 2017 with the google.com/books. Retrieved on theme : State, Security and 11/11/2017 Economy in Nigeria. Uya & J. Okoro (eds.) Civil Society and Young, I. M. (2000) Five faces of the Consolidation of Democracy in oppression . In M. adams (ed.) Nigeria. Calabar: University of Readings for Diversity and Social Calabar Press. Justice. New York : Routledge. pp Vroom, J.C. & Hoff, S.J.M. (2013) The 35-49. disadvantage among the Dutch : A
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June,. 2018
An Open Access Journal Available Online
Reward System and Public Secondary School Teachers’ Performance
Bawalla Oluwatoyin Gbenga & Nafiu Folarin Yakub
Department of Sociology, Olabisi Onabanjo University, Ago-Iwoye, Nigeria. [email protected] & [email protected]
Abstract: This paper investigated the challenges facing public secondary school teachers in Ogun State. Nigeria education is faced with lots of challenges which are so enormous and inhibit the meeting up with the advanced quality of education. The study adopted expectancy theory. Six (6) officials of the Ministry of Education, Science and Technology in Ogun State, the Teaching Service Commission, Ogun State and, six (6) executive members of Nigerian Union of Teachers and the Academic Staff Union of Secondary Schools were interviewed through key informant interview and in-depth interview respectively. Results revealed teachers were not satisfied with their pay and are not motivated by rewards in which the state played a prominent role in agitating for good wages and working condition for teachers. In addition, participants stated the drastic fall in federal allocation to the state which reduced by 60% as the reason for it. The study recommended that the government should allow principals, vice principals and experienced teachers direct the affairs and activities in the Ministry of Education, Science and Technology and TESCOM, Ogun State. Keywords: Challenges, Rewards, Public Secondary Teachers and Ogun State. Word count: 181
Introduction respect for justice, rule of law and more Globally, the United Educational, importantly on human rights. However, Scientific and Cultural Organisation to achieve the best education and good (UNESCO), there main vision is to standard of living, the UNESCO contribute to peace and security among recommended all nations to budget 26% nations through education, science, on education. This recommendation was culture and communication for universal strictly complied with by the developed
15 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 countries across the globe while in some schools belong to was set up in July, developing countries like Nigeria failed 1931. The purpose of the union was to to yield and this invariably is affecting foster unity and progress, have spirit of or perhaps affected the educational co-operation and to raise the status of growth in Nigeria. For instance, the the teaching profession through Nigeria budgetary allocation to improved quality of education, welfare education between year 2010 to 2016 and condition of service among include N234.8biliion, N306.3billion, teachers. The poor remuneration of 400.15billion, 493.53billion, teachers, and more importantly, failure 392.2billion, 369.6billion respectively, of the state government to implement with all these figures less than 13%, and the agreed 27.5% increment could be recently this year (2017) the Nigeria contributory factors to teachers‟ budget on education amount to absenteeism, late-coming, failure to 448billion representing just 6% on funds assess students‟ works, lack of sense of devoted to education which is expected belonging and redundancy at work. All to cut across all the three tiers of these are indicators of poor level of job education (Primary, Secondary and commitment. tertiary institutions). This adversely put The public secondary school teachers Nigeria to continuing witnessing under the umbrella of Nigeria Union tremendous decline in the academic Teachers (NUT) in Ogun State often go performance of public schools. This on strike because of poor conditions and continues to happen at a faster rate and inadequate reward system. For instance, the trend may not be abated until the in Ogun State, between 2009 and 2015, government changes its attitude to the public secondary school teachers school management (Ogunlade, 2011). who are affiliated to the Nigeria Union Public schools have been left unattended of Teachers (NUT), went on strike in to by the government as it has been February 2009, October 2009, argued by Sistus (2008) who laments the September 2012, October 2013 dilapidation that characterize the (Adesulu, 2012), January 2015 and primary and secondary school buildings October 2016 owing to fluctuation in in all parts of the country. There are no gross net pay of staff salaries; delayed available chairs for the students to promotion and non-adjustment of receive lessons. The quality of education salaries after acquiring additional delivered by teachers and the academic qualification; failure of the state achievements of pupils of any school is government to pay the agreed 27.5% dependent on several factors and, increment; the poor condition of service availability of school facilities is and delay in payment of teachers paramount. School facilities are material salaries. Arising from these, the reports resources that enhance teaching and of students' performance in WAEC in learning, by making the process the last few years in Nigeria, as reported meaningful and purposeful. It is the in the Premium Times (2014), are not belief of teachers that public schools are encouraging. Each year comes with a being neglected and teachers are not gradual decline and this is worrisome. reckoned with. As indicated by the Nigerian Federal
The Nigeria Union Teachers (NUT) Ministry of Education, Examination under which the public secondary Malpractice Blacklist, Volume 1 (2011),
16 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 the top five states out of the thirty-six and wisely dispense teacher pay. The states of the federation and the Federal most recent policy trend in education is Capital Territory involved in accountability. The world has moved educational malpractice are Edo from the excellence movement of the (19.4%), Benue (11.1%), Lagos (8.3%), 1980s and the restructuring movement Enugu (7.1%) and Ogun State (6.8%). If of the 1990s to the age of accountability. this is not adequately arrested, public (Kobojunkie, 2011). As experts and secondary schools in the states will stakeholders discuss teacher completely lose their prestige. accountability, they also discuss
Looking at this pathetic situation is the teachers‟ pay structures. Qualified proof that the last eight years have teachers should given salaries that are recorded 80 per cent failure in WAEC, commensurate with their levels of NECO and JAMB examinations. competency.
Students now have a popular term to Recent reports have found out that one describe examination malpractices. in three teachers leaves the profession There exists a special WAEC within the first three years and almost examination centre where examination half leave within the first five years. The malpractices are "officially" allowed at world in general is experiencing a crisis the payment of certain amount of funds. in teacher retention. Some might think These centers are known for "miracle that smaller class sizes and teacher centres". It is based on these that the retirements are causing the shortage. study intends to investigate the roles of The fact is that since the 1990s, colleges unions and challenges faced by the and universities are graduating enough government in enhancing teachers pay teachers to meet demands, but too many for public secondary schools teachers in of them are leaving within the first three Ogun State. to five years (National Center for
Aim and Objectives of the Study Educational Statistics, 2006). In Nigeria, The aim of this research is to identify graduates see teaching profession as a the main challenges in enhancing good stepping stone due to unemployment in reward management for teachers as well the labour market. For close to twenty as the state and conditions of facilities in years in Nigeria, most of those who went public secondary schools in Ogun State. in for the teaching profession at the The objectives of the study include: elementary or foundational level were to identify the challenges faced by those who could not make five credits at the state government in enhancing a their West African School Certificate good reward management. Examination (WASCE) exams and who to know the role of union in teachers could not get into the universities or pay and remuneration in their service polytechnics to pursue other professions delivery (Akande, 2000). This inadvertently could lead to why the image of teachers Literature Review and Theoretical and their rating within the Nigerian Framework society plummeted rapidly within the To ensure efficient and prudent use of period. Effective school reform demands educational funds, and to satisfy that the government should replace taxpayers calling for sound results for these teachers with the best and their invested taxes, educational brightest. To attract the best and retain policymakers must understand, analyse, 17 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 them, the teaching profession must be effective teaching and learning. Thus financially rewarding and intellectually make the process of education rigorous satisfying (Hershberg, 2005 and and uninteresting to both students and Goldhaber, 2006) teachers. The argument of public
Secondary education being the link schools teachers over the years has between primary and tertiary education basically been that they are dissatisfied is unique for the educational with unfavorable working environment, development of a child. The knowledge, and the poor pay given to teachers. skills and values which a child acquires Owuamanam (2005) argues that the lack during this period will complement of infrastructural facilities and lack of those acquired at the primary level. maintenance for available facilities are When these are combined, they will the major problems facing Nigerian prepare such a child for tertiary educational system. Owoeye, (2000) is education. In spite of the important role of the view that the insufficient, of secondary education, Ajayi, (2002) deterioration and lack of maintenance of and Omoregie, (2005) reported that this these facilities often spell doom for the is spread with crises of various teachers and students in the teaching and significance and dimensions all of learning activities. Negligence in the which combine to suggest that it is at maintenance of school facilities has crossroads. The poor motivation of many negative consequences. teachers arising from more than a The poor remuneration of teachers is a generation of poor rewards, despite the major challenge facing education in condition of service, is largely Nigeria. To make ends meet, teachers' responsible for the debilitating standard resort to 'individual help projects'. Most of education. Teacher‟s rewards are primary and secondary teachers engage never forthcoming; salaries and wages in petty trading in their various schools, are denied; and promotion of teachers is most especially teachers in the rural only in the air and subjected to political areas. Some other teachers demand variables. 'money for scores'. High grades and A lot of scholars, intellectuals, scores are reserved for the highest researchers, administrators and bidders. Thus, most teachers spend little educational planners have confirmed time helping students to learn. This has that school facilities in Nigerian schools led to most institutions been are inadequate and a few available ones compromised. Another great challenge are fully used in excess owing to the to education is the problem of astronomical increase in school disruptions of academic programmes at enrolment. Ikoya and Onoyase, (2008) all levels of Nigeria education. At the claim that about 26% of secondary heart of these disruptions is the issue of schools in Nigeria have school funding of education. Academic staff at infrastructures that are inadequate in all levels (primary, secondary and both quality and quantity. Ajayi (1999) tertiary) declare industrial actions for observes that most of the Nigerian improved funding, better and improved public schools are dilapidated due to working conditions and upgrading of inadequate funding while most tertiary teaching and learning facilities. These institutions are living on their past disruptions affect school calendar and glories. These pathetic situations hinder often led to school closure for weeks or
18 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 months. Most times, students are denied magazines are published to establish the opportunity to make up for lost communication with their members, times. This results in low students make the latter aware of union academic accomplishments and policies and stand on certain performance. principal issues and personnel < The Economic Functions of Nigeria matters concerning members, such Union of Teachers as birth, death, marriage, promotion As stipulated in the NUT constitution and achievement. and mini handbook, the union 5) Research: Recently, research has executives‟ members are expected to gained importance and is often perform the following economic intended mainly to provide updated functions in moving the union forward information to union negotiators at to achieve the purpose of its the bargaining table. This type of establishment. These activities may be research is more practical than grouped under the following headings: academic; they are more concern 1) Welfare activities: These are with problems relating to the day-to- provided to improve the quality of day affairs of the union. Some of the work life, such activities include research activities are: organisation of mutual funds (i) collection and analysis of wage andcooperative credit societies for data, including fringe benefits, and providing housing, cooperative other benefits and services through stores, cultural programmes, surveys of comparative practices, banking and medical facilities and data on working conditions and training for women in various crafts welfare activities; to help them to supplement their (ii) preparation of background family income. information like making a short 2) Education: This has to do with notes for court cases and also the education of members in all position papers for union officials; aspects of their working life and including improving their civic life, (iii) collection and analysis of creating an awareness of the enormous data relating to the environment around them and economy and specific industrial sectors. enhancing their knowledge, particularly with regard to issues All the above mentioned activities and that concern them, their statutory services are considered as the normal and other rights and responsibilities activities and duties of unions as and workers participation in stipulated in the Trade Unions Act, management. which state the objectives on which
3) Schemes and Procedures for Re- general funds of the union can be spent. dressing their Grievances: Some However, it should be noted that all central union organisations are also these economics functions of the union assisting the government in are duly performed by their members, implementing the workers‟ the series of incessant strikes by public education schemes. secondary school teachers in Ogun state 4) Publication of witnessed between 2009 and 2016 can Periodicals: Newsletters or
19 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 be attributed to the union economic psychological disturbances. functions. Education has help trade unionism
The Role of the NUT in National in handling scientific related matters Development such as issues that are related to
The NUT, in pursuance of its devastating industrial upheavals. professional and trade union objectives NUT embraces dialogue, systematic undertakes various activities that and methodical to resolve industrial ultimately contribute to human resource disputes. development in Nigeria. Some of them (5) In-Service Education for Members: are summarised below: The NUT holds different (1) Service in government educational professional and in-service bodies: The NUT help to contribute programmes aimed at upgrading towards the standpoint of policy teachers‟ skills to meet innovation formulation and execution of in the content and structure of educational programme through education and to facilitate the direct interaction with government understanding of members‟ attitudes or by serving in various bodies set to government policies on education up by government, which affords it so as to facilitate understanding and the opportunity of participating in effective execution. Besides, it is taking decisions concerning clear that the NUT makes various education. kinds of contribution to the pool. (2) Economic service: The NUT Arising from the above on the roles of encourages and does not run the union towards national development, cooperative services which have the union had been doing the needful to very salutary effect on the economic ensure national development in the welfare of its members and country by providing the necessary vicariously of the nation. This is a support to ensure that there is effective growing trend that is experiencing and efficiency in the running affairs of great expansion throughout the secondary school except when country. Seminars held on government failed to fulfill the agreement with the union. cooperative matters enable teachers to organise cooperative societies Theoretical Framework
outside the realm of NUT. Vroom (1964) emphasises the idea that (3) Leadership education: Although this individuals are motivated by expected is confined to the NUT leadership, it outcomes that they value. Expectancy is is the expectation of the union that the process that an individual undergoes the new orientation and leadership to make choices. The theory emphasizes skills acquired will certainly the need for government to relate transform participants to union rewards directly to performance and to leaders, leaders of schools, ensure that the rewards provided are cooperatives societies and those rewards deserved and wanted by community endeavours. the recipient. The theory explains the (4) Union education: A nation torn in behaviourial process through which turmoil cannot progress, industrial individuals choose one behavioural disputes if improperly handled, option over another. It also explains dwindle productivity and cause
20 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 how they make decisions to achieve the challenges faced by the Ogun State end they value government in enhancing good reward
This expectancy-value model states that management system for public a behaviour is motivated by the secondary school teachers in the state. subjective probability of successfully The population of this study includes the reaching the behavioural goal. The executive members of the two unions theory states that three perceptions can representing the interest of teachers in affect a person‟s motivation: valence, the state, the Nigeria Union Teachers instrumentality and expectancy. Valence (NUT) Ogun State Chapter and the refers to the degree to which an Academic Staff Union of Secondary individual values the consequences of Schools, (ASUSS) Ogun state chapter the specific goal. Instrumentality refers and the officials of the Ogun State to the connection between achieving the Ministry of Education, Science and goal and experiencing the consequences. Technology, and Teaching Service Expectancy refers to belief that the Commission, (TESCOM). person has about whether he or she can The NUT was purposively chosen since reach the goal (Vroom, 1964). the union has the mandate to protect the
Expectancy theory has implications for interest, welfare and also give support to teacher pay changes. The changes in pay the teachers. It also serves as the must be valued by teachers. Any umbrella union of teachers recognised monetary reward or incentive must be by the law. TESCOM is the agency consequential enough so that teachers saddled with the responsibility of regard it as being worthwhile. Teachers managing public secondary education in must perceive that they can and will the state. The study is purely qualitative, attain the positive rewards before they deploying Key Informant Interview will be motivated. Increase in pay or (KII) and In-depth interview. However, bonuses must be funded in a stable way six (6) KIIs and six (6) IDIs were such a weak economy does not affect conducted for the study. The two the payment process. Teachers must qualitative methods involved face to understand the criteria for receiving a face interaction between the researcher reward and, believe they have the skills and the respondents in order to elicit and ability to meet the criteria. And also information for this study. Data were important here is the issue of teachers analysed using thematic analysis. Every working conditions, relationship, and effort was made to observe relevant self-actualization are also very ethical issues on human subjects in significant to teachers in discharging social scientific research work. their duties accordingly for better Results performance most especially for Types of reward enjoyed by teachers students in the terminal classes. from Government-owned School
Methodology The study examines the type of rewards
This study used the descriptive survey enjoyed by the teachers from the state research design which according to government-owned schools. One of the Cooper (1996), is concerned with the in- respondents commented thus: depth analysis of a phenomenon. Thus, Primarily, every worker needs the design is appropriate for the study as to be motivated for effective it will allow for the investigation of the productivity, teachers needs to
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be motivated both financially of this will they do (IDI, Male and non-financially. Teachers ASUSS Official, 2016). that are not happy can‟t perform As a union member, we are or discharge their duties obliged to enhance the social effectively. We, teachers prefer and economic well-being of our the financial rewards because members and establish welfare there is nothing like non- funds for the benefits of financial rewards in the members. It is a constitutional teaching profession. All we obligation to embark on know and see is our salaries. economic and welfare schemes (IDI, Male ASUSS Official, for our member, and more 2016) importantly, to represent the
Another union official also clamoured interest of our fellow members for financial rewards thus: in rewarding teachers adequately. For instance, this Teaching profession is a noble present government owes us 11 profession. Teachers need to be months‟ deductions of our rewarded by both financial and salary and he had only managed non-financial means. But in our to pay just 1 month. Presently, situation we actually prefer the the state is paying half salaries monetary reward. Given any for teachers. The balance of our teacher a recognition award will salary is the deductions I‟m only be with ordinary certificate talking about. We continue to and no funds or cash prizes are engage government in attached to such awards. discussions as regard this (IDI, Teachers generally prefer the Male NUT Official, 2016) . financial rewards (IDI, Male NUT Official, 2016). Another respondent argued thus: We continue to have problem The Influence (role) of the unions on with our pay because of the fact public secondary schools teachers pay that round peg are put in square enhancement hole. This is because those The study attempted to obtain the views managing and directing the of the unions on the role being played affairs of the Teaching Service towards public secondary schools Commission are core civil teachers‟ pay enhancement by them. servants which are wrong, an Responses from the IDIs avers thus: experienced teacher or perhaps The union had been having vice principal or principal are to series of meeting with the state be the Directors and Permanent government on numerous issues Secretaries in the Teaching bothering the educational sector Service Commission. Take for in the state. Among them are instance, the activities of the teachers not been rewarded Civil Service Commission adequately, the poor state of managed and directed by core facilities across the state, the civil servants, the Local non-promotion of teachers at Government Service due time, teachers welfare in Commission is also managed general and policies on and directed by retired local education in the state and so on. government chairman. The We continue to engage the Judiciary Service Commission government of the day but little is managed and directed by a renowned lawyer, the head of
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state hospital management in the state (KII, Female board also is a medical doctor. TESCOM Official, 2016). If other professions are A respondent averred that: controlling their sphere why The only rewards I‟ve seen so should teachers not control their far here, to be frank and candid, management bodies instead of is that salaries of teachers are putting a core civil servants to paid at the appropriate time but direct the acting of teaching deductions are not paid. What service commission. This is do we call this? To public unfair, but we are doing our servant and civil servants, best, we believe a messiah will deductions are more important soon come and liberate us from and paramount to teachers than this mess (IDI, Male ASUSS salaries. Teachers are not all Official, 2016). that interested in awards or
Change in teachers‟ pay by the whatsoever, from my findings, government of the day getting their full salaries is more The respondents were asked about any germane than giving them half changes seen in teachers pay by the salaries (IDI, Male ASUSS Official, 2016). government as compared to the past administrations. One respondent Delay in implementing the 27.5% commented that: teachers‟ special structure by the state There has been a consistent and government. “give to all” rewarding process The study also examined what is for teachers since the inception delaying the government in of this administration. This is implementing the 27.5% teachers‟ traceable to 27.5% approved special structure by the government, as Teachers Peculiar Allowance agreed to by the Nigerian Governors for all (though 15% is being Forum, since August 2008. One of them paid currently with a view to commented thus: receiving the balance very soon Our teacher-friendly governor from our amiable Governor, has successfully implemented a more power to his elbow). larger part of the agreement Payment of Rural Allowance to (that is 15%). So it would not be all teachers at the outskirts difficult for the state schools is also commendable government to balance it soon. I (KII, Male TESCOM Official, guess the huge financial 2016) commitment and crisis of the One of them equally noted that: state is a must-win war (KII, The government is really trying Female, TESCOM Official, its best to reward teachers 2016). adequately. After all, since the Another respondent argued that: commencement of his The state is not taking the issues administration, he has been of 27.5% as a priority, the giving awards to best teachers position of the state government in primary and secondary was that there is no money but schools across all the senatorial they have money to do other districts in the state and this is things that are not relevant to highly commendable and the teachers‟ peculiar allowance applauded even by the teachers (KII, Male, Min. of Education Official, 2016).
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Another respondent averred that: salaries are paid and also ensure Schools are not productive that they do not owe any financially, the incessant strikes workers salaries (KII, Male by the NUT/ASSUS in the last TESCOM Official, 2016). 5 years would not have gotten a Senior male respondents from the State significant adverse effect but I Teaching Service Commission think with what the governor commented thus: said recently in one of his Well, probably lack of enough interviews, the financial funds, like distribution of position of the state is not all federal monthly fiscal that encouraging. Although he allocation, for instance, has has increased the state IGR dropped tremendously so the tremendously, there are also state is using the state IGR to other sectors as important as augment what comes from education that he also takes care Abuja. The federal allocation of. (KII, Male, Min. of and local allocation must be Education Official, 2016). upgraded (KII, Female, The financial position of the state in TESCOM Official, 2016). rewarding teachers No comment. This is because I The study also sought to know more don‟t know anything about the about the financial position of the state state monthly allocation. The in rewarding teachers in relation to the best man to give you an incessant strike by NUT and ASUSS appropriate answer to that is the officials in recent times. A respondent state Accountant-General, or perhaps, the Governor himself. averred thus: Do you want the government to The issue of strike cuts across suspend me or dismiss me from the country and is not only service? Did you hear of what peculiar to Ogun State. Tell me happened recently? (KII, Male, which sector in Nigeria has not Min. of Education Official, experienced incessant strike in 2016) the country. Strikes are not To the best of my knowledge peculiar to Ogun State alone, and from what I heard within with the present economic the ministries, it is absolutely meltdown and crude oil price not sufficient. The government dwindling, one should expect is even struggling to pay such to happen and Ogun State workers salaries and it is always ensures that the strike because the Governor has a doesn‟t last by making sure conscience and has proven to be students return to work as soon a father to all civil servants as possible (KII, Female, (KII, Female TESCOM TESCOM Official, 2016). Official, 2016). A respondent described the situation Advise for the government on thus: I can‟t really say; but from the improvement for teachers pay look of things, I‟m of the The study also attempted to inquire into opinion that it is insufficient, in the kind advice for the government on the case of our state, salaries the improvement for the public may be delayed like one or two secondary schools teachers pay. The weeks but the government participant spoke thus: surely ensures that workers
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Teachers need to be rewarded, peg in a round hole and not a just like their counterparts in round peg in a square role. (IDI, other professions like doctors, Male NUT Official, 2016) nurses, pharmacists and engineers. Teachers also want to Discussion of Findings give the best education to their On the rewards enjoyed by teachers children, so they need to be from the government, the study showed rewarded like other professions. that teachers see their monthly salaries There is other alternative route as the only financial reward granted to than to motivate teachers them. The respondents‟ views effectively. Increasing teachers complement the view of Ogomorach, allowance in rural areas is a (1994) which refers to financial rewards necessity for actualisation of as money incentives offered over and good performance from the above employees‟ salaries with the view students. They will have interest to stay in rural areas and the to motivating them and enhancing their urban centres will be job commitment. But this is also decongested. For instance, contradictory because there are also nurses are being paid shift other allowances that motivate workers allowances, doctors are paid call perhaps than monthly salaries. The duty allowances, and journalists financial allowances, like housing are paid dressing allowance. allowances, transport allowances, What will you use to distinguish medical allowances and welfare teaching as a profession? It is allowances should be offered if job teachers‟ peculiar allowance. commitment is to be enhanced. Kazeem Government needs to find a means to compensate and (1999) argues that teachers and other motivate teachers (IDI, Female school workers tend to remain contented ASUSS Official, 2016) and reasonably motivated as long as salaries are paid on time and they are This was buttressed by another promoted regularly. School principals respondent: often complain about teachers not being Yes, it can be improved upon, willing to work because of delay in the provided either retired school payment of their salaries (Ayeni, 2005). teachers/principals with vast In Nigeria, prompt payment of salaries knowledge and experience in induced greater commitment to teaching the public secondary schools are (Ubom, 2002). allowed to steer the leadership in both Ministry of Education The study also revealed that the unions and Teaching Service in the state are up and doing and had Commission, not what we have being engaging the state government on now. In the last dispensation, the plights of teachers and numerous imagine a barrister was in issues that bother on the development charge of the Ministry of and promotion of educational goals in Education and Science and line with the mission and vision Technology. Where do we go statement of the Nigeria Union of from there? How do you set out Teachers. The participants‟ revealed that a good policy on education, talk less of proper monitoring and teachers are dissatisfied with their implementation? Government remuneration package. The study needs to go by putting a round revealed that public schools teachers are
25 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 not satisfied with the remuneration that the present governments have also package of the state government. In implemented the 15% out of the 27.5% September 2012, the Nigeria Union of of Teachers Peculiar Allowance as Teachers ordered teachers to go strike agreed by the National Union of over the failure of the government to Teachers in Ogun State and the state pay the 27.5% increase agreed upon by also promised to commence the full the Governors Forum in 2008 (Taiwo, payment of Teachers Salary Structure as 2012). And the government owed soon as the state revenue increases. teachers several deductions which are Ubom (2002) asserts that prompt yet to be paid. The unions have also payment of salaries induces greater been engaging the government in commitment to teaching. But the discussions on this. The above suggests deductions are also part of the salary of that there should be an alliance between teachers. To the respondents, the governments and unions to bring about deductions are key because they are the institutionalization of qualitative saving some part of their salaries for education in the state. In some cases, future needs. these discussions lead to ideas about The officials of TESCOM and the creating a kind of alliance between Ministry of Education, Science and government and unions on any matters Technology, revealed that the financial relating to teachers‟ plight. Fredriksson, position of the state has been difficult. Fumador and Nyoagbe (1999) aver that Hence, the state has not been able to it could be important for unions to adequately reward teachers and other reflect on how they can improve the workers. These findings support Taylor situation for their members, in terms of (2016) who opines that the Ogun State being well remunerated, and developing allocation dropped tremendously and the education system in the long run. To that the state had lost over 60% of do this, it would be necessary to adopt a statutory allocation due to the financial long-term programme. Such an meltdown being experienced in the approach includes formulating a vision country. The state used to collect of the desired development of the between N3.5 billion and N4.8 billion in education system. Essential elements in a month but with the recent drop in the such a vision are likely to be: education price of oil in the international market, it for all, equal opportunities and is now N1.3 billion and the state wage improving the quality of education bill is in excess of N7 billion in a month. On the change in teachers pay by the Although, the allocation of budget to present government, the findings educational sector between year 2011 to buttress the 2014 report of the of 2016 are 19.8%, 20%, 21%, 21%, Research, Planning and Statistics 20.6% and 21.28% respectively (Ogun Department in the Ministry of Ministry of Budget and Planning, 2017).
Education, Science and Technology that The study showed that secondary school the state government pursued its quality teachers are not treated like other and affordable education for the citizens professionals and also competent hands of the state by making it a point of are not in charge of affairs in education. responsibility to reward teachers The study is of the opinion that if the adequately yearly. This is also supported right people are in the affairs of by the report from the TESCOM 2014 education in the state, the issue of
26 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 teachers pay and rewards would not be Secondary Schools in the state have an issue to the extent that unions will be been having series of meetings with the embarking on incessant strike which state government on teachers pay for invariably affects students‟ public secondary schools in the state and performances. Nakawacha (2005) avers issues relating to teachers welfare, that rewards and job performance are improved educational standard in the economic gains one secures from a job, state as well as on the policy on and include things like salaries, job education as prescribed by the state bonuses and fringe benefits. Cole (1997) government. The teachers are of the emphasises that the provision of stable opinion that in the formation of any monetary rewards contributes to policies on education, selected school employees‟ commitment, high job principals and vice principals and performance and stability on the job. experienced teachers needs to be Armstrong (2001) claims that monetary involved. The study recommended that rewards have a powerful effect on the government is enjoined to ensure freedom from worry, fear and that principals, vice principals and contamination by the organisation experienced teachers direct the affairs environment. If fair monetary rewards and activities in the Ministry of are given to employees and their basic Education, Science and Technology and needs are met, their levels of the Ogun State Teaching Service commitment will rise. Commission. This means that senior
Policy Implications and school principals and experienced Recommendation teachers should be allowed to direct the The study concluded that teachers in the affairs as commissioner, permanent Ogun State public secondary schools secretaries and chairman in the state were not satisfied with their Ministry of Education and Teaching remuneration packages. It was Service Commission for proper established that public secondary school implementation, monitoring and teachers are only rewarded with their evaluation of policies in the education salaries. The Nigeria Union of Teacher sector. and the Academic Staff Union of
Reference Ayeni, A. J. 2005: The effect of Adesulu, D 2012: „Teacher strike principals‟ leadership styles on Paralyses Schools in Ogun State‟ A motivation of teachers for job newspaper report on Teachers performance in secondary schools Strike in Ogun Pub by Punch in Akure South Local Government. Newspaper, Oct 24, 2012. An Unpublished Dissertation Akande M. O 2000: The Place of submitted to the Department of Teachers in Society, Nigeria Educational Administration and Association of Educators. Planning. Obafemi Awolowo Ajayi I. A 2002: Resource factors as University, Ile-Ife. correlates of secondary school Cole, G. A. 1977: Personnel effectiveness in Ekiti State. Nigeria management theory and practice Journal on Counseling Applied (4th ed.). London: Ashford Colour Psychology 1(1):109-115. Press.
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Cooper, M. C. 1996: Logistics as an Kobojunkie R. 2011. „The condition of element of marketing strategy, both public schools‟ inside and outside the firm, http://allafrica.com/stories/201101 Proceedings of the Council of 280188.html Logistics Management Conference. Nigeria Federal Ministry of Education Boston. McGraw Hill. Examination Malpractice Blacklist, DuFour, R. and Eaker, R. (1998). Volume 1, 2011 Professional learning communities National Center for Education Statistics at work: best practices for 2006: Retrieved June 8, 2006 from enhancing student achievement. http://nces.ed.gov/quicktables Alexandria, VA: National Nakacwa, J. (2005). Rewards and job Educational Service. performance of secondary school Eguridu E. (2014), Premium Times; teachers in Kawempe Division. Again, Over 70 percent of WAEC Unpublished Masters Proposal, Candidates “fail” Examinations Makerere University, Kampala, Fredriksson, U., Fumador, A. and Uganda. Nyoagbe J. (1999) Structural Ogunlade B.E 2011. „Educational adjustment, education reforms, and administration In Nigeria‟, trade union strategies: Ghana as a concept, practice and issues, case study. Lome: Education Badmos Publisher International. National Center for Educational Goldhaber, D. 2006: Teacher pay Statistics, 2006 reforms: the political implications Omoregie N, 2005: Re-packaging of recent research. Washington, D. secondary education in Nigeria for C.: Center for American Progress. great and dynamic economy. Paper Retrieved December 29, 2006, presented at the 2nd Annual from www.americanprogress.org. National Conference of Hershberg, T. 2005: Value-added Association for Encouraging assessment and systemic reform: A Qualitative Education in Nigeria response to the challenge of human (ASSEQEN). 9th-11th May. capital development. Phi Delta Owoeye,J.S. (2009). The effect of Kappan, 87: 276-283. interaction of location, facilities Ikoya, P.O. and Onoyase, D. 2008: and class size on academic Universal Basic Education in achievement of secondary school Nigeria: Availability of students in Ekiti State, Nigeria. Infrastructures for Effective Unpublished Doctoral Thesis, Programme Implementation. University of Ibadan, Ibadan. Educational Studies. Owuamanam,D.O. 2008:.Threats to Kazeem S. O 1999: Correlates of job Academic Integrity in Nigerian motivation of workers in selected Universities. Lead paper presented public and private secondary at the conference of the National schools thesis. Deparrtment of Association of Educational Educational Foundation & Researchers and Evaluators, Counseling, Faculty of Education, University of Ado-Ekiti, June 13- Obafemi Awolowo University, Ile 17. Ife Ogomarach, R. 1994: The impact of professional allowances on job
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satisfaction among lecturers in Taiwo T. 2012: „An article on Nigeria National Teachers‟ Colleges in Union of Teachers and New Uganda. Unpublished Master of Teachers Salary Scale‟ Pub by Arts in Educational Management Nigeria Premium Newspaper, Dissertation, Makerere University, September 24, 2012. Kampala – Uganda Taylor A., 2016 Ogun state‟s federal Sistus, O.T. (2008) Problem of allocation has dropped by 60% – Education in Nigeria. The Nigerian National Dailies, Observer. Retrieved Sunday 27 The Punch Newspaper April 11, 2016. March 2011 from Vroom, V. H. (1964). Work and www.nigerianobserversnews.coma motivation. New York: Wile. Ubom, I.U. 2002. Teachers attitude, motivation and job performance: implications for guidance and counseling” A Journal of Basic Education in NigeriaVol. 2 No.2.
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June,. 2018
An Open Access Journal Available Online
Experience and Reactions to Psychological Contract Breach among Nigerian University Academics
Omole Iyayi
Department of Business Administration, Faculty of Management Sciences, University of Benin, Benin City, Nigeria. [email protected]
Abstract: The objective of this study was to find out university academics experiences and reactions to psychological contract breach. In other to achieve this goal 297 academics from two (2) universities located within Benin City, Edo State were selected for inclusion in the study. A total of 554 questionnaires were administered to academic staff from both universities and 297 questionnaires were returned and found useable. The data obtained, due to its nature was analyzed using content analysis and from that analysis we found that academics experienced psychological contract breach in two main areas: the working environment and training & development. The study also found that academics resorted most frequently to “self-help” strategies in order to address breaches of their psychological contracts. We recommended that, among other things, academic institutions take the necessary steps to improve the working conditions of academics.
Keywords: academics, psychological contract, psychological contract breach, Nigerian universities.
1. Introduction concept is largely due to both qualitative Since first being introduced by Argyris and quantitative studies detailing such (1960), and after more than fifty years aspects of the psychological contract as of development, the concept of the its: Formation and Operation psychological contract has come to be (Rousseau, 1995; Robinson, Kratz & accepted by academics and Rousseau, 1994; Knights & Kennedy, professionals as an important tool for 2005 and Schalk & Roe, 2007), Content understanding the employment (Conway & Briner, 2009; Coyle- relationship. This acceptance of the Shapiro & Kessler, 2002; Shen, 2010
30 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 and Kirovokapic-Skoko, O'Neil & of and reactions to psychological Dowell, 2010) and Types (Rousseau & contract breach among academics from Parks, 1993 and Uen & Chien, 2010). two (2) Nigerian universities.
Another important area that has 2. Literature Review emerged from the research into 2.1 The Psychological Contract psychological contracts is what happens Seen as an application of the when an employee perceives that his / philosophical concepts of social contract her employer has failed to live up to its theory to organizations (Schein, 1980 obligations. This is referred to as and Roehling, 1997), the psychological Psychological Contract Breach (PCB) contract is a representation of workplace and some authors (Rousseau & expectations that exist between Robinson, 1994; Morrison & Robinson, employers and employees as perceived 1997; Chen, Tsui & Zhong, 2008; by the employee. Freese (2007) defines Sutton & Griffin, 2004; Knights & the psychological contract as “an Kenedy, 2005; Oluwafemi & Balogun, employee‟s beliefs regarding mutual 2008; Pierce, Desselle, Draugalis, Spies, expectations and obligations, in the Davis & Bolino, 2012 and Reimann & context of his relationship with the Guzzy, 2016) have studied this aspect of organization, which shape this psychological contracts, focusing on relationship and govern the employees how these breaches occur, what areas of behaviour”. These expectations between work life breaches occur, how employers and employees represent employees react to these breaches when those which cannot be stated in they occur and also the effect of contracts or job publications and breaches on both employees and their sometimes are even difficult to express organizations. While utilizing different but nevertheless are very influential on methods, samples & locations and thus employee and employer behaviour arriving at diverse findings, one similar (Anderson & Schalk, 1998). conclusion from these and most likely Krivokapic-Skoko, O'Neil & Dowell other studies is that the experience of (2010) further assert that psychological PCB can have negative consequences contracts have the potential to enhance for both organizations and employees. organizational performance, facilitate
Despite the importance of psychological engagement of employees, help contracts, there have been few employee alignment with organizational discussions of the concept within the decisions and planned organizational context of the Nigerian university changes. Psychological contracts have system. The importance of such also been identified as useful tool for discussions becomes apparent in the understanding the employment light of the current state of and relationship and its impact on key work dissatisfaction with the quality of attitudes and employee performance education provided by higher (Robinson, Kraatz, & Rousseau, 1994; institutions in Nigeria (Ajayi & Shore & Tetrick, 1994). As stated Ekundayo, 2010; Ige, 2013; Olayemi, earlier, psychological contracts are 2011 and International Organization for concerned about perceived mutual Migration, 2014). This study attempts to obligations and expectations within the generate the much needed literature on context of the employment relationship. the subject by studying the experiences These expectations and obligations
31 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 constitute the contents of psychological workers perceive that their organisation contracts and according to Makin, has not lived up to their expectations Cooper & Cox (1996) will generally and failed to meet one or some of its include the employee obligations of promised obligations to them hard work, loyalty & commitment and (Robinson, et al, 1994; Zhao, Wayne, the employer obligations of high pay, Glibkowski & Bravo, 2007). Consistent advancement, training & development with the nature of psychological and job security. Psychological contracts, PCB is subjective, resulting contracts can also to be considered to from an individual employee‟s have both transactional and relational interpretation of how well his/her elements. Transactional elements are organization has fulfilled its obligations. associated with pay, working hours, the Thus different employees are likely to employment time-frame, short-term have different reactions to similar relationships and mutual self-interest. situations involving an organizations Relational elements on the other hand inability to meet its obligations. associated with career prospects, Rousseau (1995) identified 3 factors that responsibilities, work place stimulate the occurrence of PCB: opportunities, trust and loyalty (Shen, divergent interpretations of obligations 2010 & Dainty, Raiden & Neale, 2004). in the employment relationship,
Due to the subjective nature of mitigating circumstances preventing one psychological contracts, the content and or both parties from fulfilling its elements of contracts will vary from obligations and the reneging or refusal person to person and Rousseau (1995) of one party to honour its obligations states that contracts and hence their despite being capable. contents are shaped by messages that Studies (Robinson & Rousseau, 1994; communicate intentions about the future George, 2009) have sought to identify and as such represent commitments to specific areas within organizations that future actions. These messages can employees experience PCB. Their come in a variety of forms, such as: studies identified job security, Overt statements (statement by a HOD promotion, compensation, training and about training and development); development, intrinsic motivation, Observations (observing how promotion nature of the job and intrinsic exercises are carried out); Expressions recognition as the major areas in which of organizational policies (brochures, employees experience PCB. Studies rule books, prospectuses or hand books) within academia reveal slightly different and Social constructions (reminding a results. Krivokapic-Skoko, O'Neil & colleague that certain positions have Dowell (2010) studied PCB among always been filled from within the academics in an Australian University organization). and identified promotion, job security,
2.2 Psychological Contract Breach profession autonomy, workload and (PCB) poor management as areas in which According to Morrison and Robinson academics reported experiencing PCB. (1997) PCB is the cognitive comparison Another study (Pierce et al, 2012) found of what the employee perceives was teaching load, freedom to select taught offered by the organization and what courses, adequacy of support staff, was actually offered. It occurs when support for personal development, office
32 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 space, annual salary adjustments and prior experiences of PCB & marital moving expenses as the areas in which status play a crucial role in determining academics reported experiencing PCB. employee responses by modifying the These studies suggest that employees relationships between PCB and are likely to experience irrespective of employee reactions. The Content factors their location or line of work. on the other hand posits that the area of
2.3 Reactions to Psychological work life in which the breach occurs Contract Breach (PCB) (wages & benefits, fairness of In analyzing responses to the breaches procedures, interpersonal treatment, psychological contracts, the framework promotion, training & development) of Hirschman (1970) is often employed will determine how employees will respond. by authors. Building on this framework several authors (Farrell, 1983; Whitey & Studies on employee reaction to PCB, Cooper, 1989; Shore & Tetrick, 1994; show some support for these theories on Robinson, Kraatz & Rousseau, 1994; employee reaction to PCB. Increased Herriot & Pemberton, 1996 Van de Ven, turnover and turnover intentions, which 2004 and Schalk & Roe, 2007) have fall within the Exit categorization, were focused on the issue and while different shown to have a positive relationship terminologies have been used by these with PCB (Freese, 2007; Umar & authors to describe employees actions Ringim, 2015; Malik & Khalid, 2016). following PCB, all such actions may be Similarly, Revision, in the form of summarized into 4 responses: Exit, reduced Organizational Citizenship Voice, Silence & Revision. Exit Behaviour (OCB), productivity and involves a complete withdrawal from organizational commitment were also the organization by the employee due to found to be positively linked to PCB experiencing PCB; Voice involves (Knights & Kenedy, 2005; Sutton & actions involves actions on the part of Griffin, 2004; Oluwafemi & Balogun, the employee to reinstate the 2008; Chen et al, 2004; Coyle-Shapiro psychological contract back to its & Kessler, 2002; Lester et al, 2002; original or better terms. With Silence, Gulem, 2007). Several factors have also the employee appears to do nothing and been shown to moderate PCB and accept the breach. Revision, involves the employee reactions. Adebayo, employee altering either perceived Akanmode and Udegeb (2007) found employer or employee obligations or spirituality affected how police officers both. reacted to PCB and Milward (2006)
Numerous studies have identified found experiencing motherhood affected factors moderating the experience of how female employees, evaluated the terms of their psychological contracts. PCB and the resulting reactions by employees. These, factors can generally 3. Methodology be grouped into two categories: 3.1 Subjects & Methods Situational & Content Factors. The To achieve the objective of this study, Situational factors suggests that 554 academics, made up of 316 from the situational variables such as age, sex, state owned university and 138 from the nature of the labour market, ability & private university were selected and willingness of the employer to fulfil questionnaires administered on them. obligation, possibility of punishment, Respondents were randomly chosen and
33 inclusion was based on availability and questions, asking lecturers to identify willingness of respondent to participate instances in which they believed, their in the study, however we made attempts institutions failed to live up to its to ensure that all ranks within the obligations and the actions, they took to academic cadre were represented. Out of rectify the situation. A conventional the 554 questionnaires administered, approach to qualitative content analysis, 297 questionnaires, were returned and in which coding categories are derived found useable. 213 (72%) of these were directly and inductively from the raw from the federal university, while 84 data was utilized to analyze responses (28%) were from the private university. simple percentages were used to
Analyzing the 297 questionnaires quantify these different categories. revealed that 187 (63%) of the 4. The Data respondents were male, while 110 4.1 Perception of who the Employer is (37%) were female. Assistant lecturers The first objective of this study was to 80 (27%) represented the largest block identify who academics perceived their of respondents. employer to be. The results relating to
The questionnaire utilized for the study this inquiry are shown below in Table 1 consisted of closed-open-ended of
Table 1 – Perception of who the Employer is S/N Employer Frequency % 1 The Federal Government of Nigeria 98 33 2 The Vice Chancellor 65 22 3 The University Council 59 20 4 President of the University 33 11 5 Head of Department 27 9 6 Dean of the Faculty 15 5 TOTAL 297 100 Source: Authors Fieldwork, 2017
4.2 Experience of Psychological live up to its obligations. The various Contract Breach responses to this question are shown Respondents were asked to describe an below in Table 2. incident in which the employer failed to
Table 2 – Experience of Psychological Contract Breach S/N Nature of Experience Frequency % 1 Working Conditions 146 49 2 Wages and Benefits 53 18 3 Training and Development 50 17 4 Promotion 33 11 5 Work / Life Balance 15 5 TOTAL 297 100 Source: Authors Fieldwork, 2017
Table 2 shows that the majority of grouped under this category, included lecturers (49%), reported experiencing instances in which lecturers detailed PCB in the work area we classified as instances in which they felt their "Working Conditions". Responses institutions had failed to provide an
34 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 adequate working environment or “Results needed to be typed and provide the necessary tools for them to printed out for a board of studies perform their jobs. In analyzing the meeting and the printer in the responses, several themes emerged from department was out of ink. I was this area, including: poor or lack of told by the HOD that I would be held responsible for failure to proper work tools, lack of office produce the results and that I furniture, poorly furnished offices, could not do it in a business overcrowded offices, lack of office centre because of security space, poor departmental support in reasons. I had to get a colleague achieving results, poor internet facilities to bring his printer to my office and insufficiently lit classrooms, Below so I could print the result”. are some of the responses provided by Another response we classified under the respondents. this category was provided by a lecturer In describing attempts at furnishing his describing conditions under which office, one lecturer wrote: invigilation of examinations occurred: “I was allocated to a new office “Invigilating exams in some but all attempts to get the office classrooms beyond 5pm is furnished failed, because we impossible, because the were told the application was classrooms are not properly lit still being treated and despite a and sometimes lights don’t even lot of time passing we were still work. When NEPA takes light, being told the same thing. I had there is no backup generator”. to make do with chairs and Yet another response we grouped here, tables from other places”. was this by a lecturer describing, lack of Another staff had this to say about internet facilities: office accommodation and the number “I was put on a team, charged of occupants in an office: with clearing new students who “When I started work, initially I had gained admission into the had no office allocated to me, so university. To do this, we needed I had to stay with friends or in internet connection but that the Departmental office. When I provided by the university was was eventually allocated an unavailable most times or slow in office, it was with 4 other staff connecting. I had to use my own and in an office that seemed too modem in order to clear the small for all of us. It often led to students”. the office being overcrowded A final example of one of the responses with different students or no we put in this category was from a space to move around”. lecturer, who detailed his experience Still related to the issue of office with toilet facilities: accommodation, was this: “In my faculty we have few toilet “Due to heavy rain fall, a part of facilities that work. I end up my office now leaks when rain having to go to other floors, off falls, I have been told to write campus or even holding it till I letters which I have done but the get home. This is very problem has not been fixed, so I disappointing for an institution try to avoid the office during the like this. Working toilets should raining season”. be basic provisions”. For instance with, regard to preparing The second highest area in which results, one lecturer stated: academics reported experiencing PCB
35 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 was in connection with their "Wages They claimed it was because I and Benefits” (18%). Responses had not submitted a particular included in this category, revealed letter, which I actually had. I had instances in which academic's believed to personally trace the that their institutions, failed to meet its whereabouts of the letter and ensure that it got to the right financial obligations to them. Some of office before I was finally paid the themes covered include: failure to after about 2 months. Salary is pay promotion arrears, non-payment of very important and institutions certain benefits, failure to pay salary and should always ensure that lack of reimbursement for expenses. everybody gets paid”. Some of the actual responses included The third area academics reported PCB the following: was related to "Training and
In describing non-payment for courses Development" (17%). Within this area taught, one lecturer wrote: academics reported instances which “I taught certain courses and their institutions failed to provide proper was promised that I would be training, induction and development paid for doing it, but nothing has opportunities. 4 major themes emerged happened so I have stopped from our analysis: failure to support teaching on the programme”. self-development efforts & failure to Another lecturer, in describing issues deliver financial assistance for self- related to promotion arrears stated the development, lack of induction following: programmes and denial of admission.
“Despite being promoted to a One response we picked which new rank, my salary has not yet represented the failure to support self- reflected this promotion. I have written to the bursary, but all I development include the following: hear is that the matter is being “I was issued a query by my treated. It is quite HOD because I missed an exam disappointing”. invigilation. I missed the exam Another response, we included in this because I was preparing for a professional exam but the category, was this from a lecturer department does not even describing failure on the part of his encourage this so I had to do it institution, to reimburse him for secretly which is sad because we expenses, he incurred carrying out are in a university where official assignments: learning is supposed to be “I had to take students out of the encouraged”. jurisdiction of the University for Another example of the lack self- a Competition. However my development theme was this: employer, made the release of “There was a time I applied for the necessary funds for the trip financial assistance to attend a pretty difficult. I had to spend my conference to present a paper own money to promote the image outside the state that my of the school”. organization is in. the process of
The final response placed in this processing the money took ages, category, was one explaining non- though I went for the conference payment of salaries: expecting to be reimbursed later by presenting the conference “At the end of a particular receipt. However this did not month, I was not paid my salary. 36 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
happen, despite my submission of “I had a really unpleasant the necessary documents”. experience during one promotion Another response which we included in exercise. I was not going to be this category, was this by a lecturer, around during the period but I suggesting failure of the universities to had prepared my documentation provide induction programmes: and handed it to a colleague to “When I started this job, there submit when the time came. I was was no formal training or informed by him that I would not induction whatsoever. I had to be successful because of some ask around about teaching changes to which journals were techniques and rules and now acceptable. I had to make a regulations of the university. No lot of changes to my CV and form of training is provided, you submitted journals. If such are just expected to know how to changes had been known to me lecture and you are put straight before, I would not have had to go into teaching of classes”. through all the stress”. A final example of one of the responses Responses we put that lead to the that repressed admission denial theme emergence of the failure to get promoted was this: theme, included: “I started the job with the belief “I was due for promotion and that I would be given admission therefore filled all the necessary into the M.Sc programme and I forms and made the photocopies applied. But I was denied that were required of me. admission, because I was told However I did not scale through that I needed to wait a full year and when I made enquiries about before applying. This is contrary why, I was told it was because I to what goes on in other was “troublesome”. faculties”. The final example of one for the The fourth area in which lecturers responses was this: reported experiencing PCB was in the “Due to delays in the system, it area of “Promotions” (11%). Themes took a longer than expected time for me to complete my M.Sc and I that emerged from our analysis of the couldn’t apply to be converted responses from the academics include: from a GA to an AL. At some point changes in promotion criteria and failure my salary was stopped and to get promoted as at when due. nobody seemed to care about it.
Examples of responses that fit into the Eventually, I got the result, was change of promotion criteria theme converted and my salary include: resumed”. “I was up for promotion and I The fifth and final area that emerged assumed I had the right spread of from our analysis of responses was articles but I was informed my "Work / Life Balance (WLB)" (5%). application was not successful This category of responses revealed because I did not meet the new academics perceived their institutions criteria for the rank I applied for. had failed in its obligations of ensuring I was not aware that any changes academics have enough flexibility had been made because there was within their work to be able to balance no prior information”. the demands of their personal lives & Another stated: work lives and also to show concern for the personal lives of workers. 37 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
Some of the responses that fit in this to check up on me. Also if you category include: are having financial difficulty, you are on your own. There are “No provision is made for the no provisions for staff welfare, personal lives of workers. I have within the Department or had to keep my children waiting in Faculty”. school or ask a colleague to help me pick them because I was The final example of responses from threatened with a query if I left the this category, was this by a lecturer, exam hall to go and pick them”. describing accommodation issues: Another stated: “When I newly picked up my “I had an incident of an ill appointment, I was told I could relation which prompted my request for temporary coming to work late for an accommodation at the guest invigilation of an examination and house, if I had nowhere to put up. without contacting me to find out But I got to find out that this the probable cause of that, I was offer was not genuine and that a issued a query by the Dean”. lot of politicking was involved. I Similar to the above example another had to put up with relatives of lecturer stated: mine, until I was able to sort things out”. “There was a time my HOD needed me to do an assignment 4.3 Reactions to PCB but I had an accident on my way Respondents were also asked to state to work, instead of having what actions they took to rectify the empathy he was really angry and instances, in which their institutions had he threatened me with quarries”. failed up to live to its obligations. Table Also related to issues of ill health, one 3 below, shows how the various lecturer added issues of financial categories that emerged from our difficulty, stating: analysis of the responses that were If one is sick, one is on his own. I provided. was out sick for a period of time and the HOD did not even bother
Table 3 – Reactions Psychological Contract Breach S/N Reaction Frequency % 1 Self-Help 127 43 2 Silence 118 40 3 Voice 52 17 TOTAL 297 100 Source: Authors Fieldwork, 2017
Table 3 shows that dominant reaction to satisfactory working conditions, most PCB by academics was to engage in academics resorted to providing these “Self-help” (43%). This was followed items like printers, tables, chairs, by “Silence” (40%) and “Voice” (17%). laptops, modems, and light-bulbs by
“Self-help”, represented actions themselves. Other forms of self-help undertaken by academics aimed at actions included: applying to other eliminating or at least mitigating the schools, resubmitted letters, personally outcomes of PCB. For example, when carried files/letters to the required their institutions failed to provide offices, paying for conferences out of 38 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 their pockets, resubmitting or altering 5. Discussion promotion applications, seeking The purpose of this study was to study interventions from senior colleagues, PCB among academics in Nigerian getting colleagues to pick up children universities. Specifically, we sought to and borrowing money from identify who respondents perceived as cooperatives. their employer, areas in which they
“Silence”, represented inaction on the experienced PCB and their reactions to part of academics to rectify outcomes PCB. related to PCB. From our analysis, Our study found no consensus among the “Silence” took two forms. First, academics about who they considered academics simply did nothing and their employer to be. This is in line with accepting the results of the PCB. Some arguments made by several authors academics who were denied admission (Marks, 2001; Morrison & Robinson, for example, waited for the next 1997; Rousseau & Tijoriwala, 1998; admission periods and others accepted Yan, Zhu, & Hall, 2002) about the their offices the way they were and difficulty and complexity of identifying made the best of the situation. The who the organization / employer is in second form in which "silence" studies on psychological contracts, since manifested among academics, was by the contracts exist essentially in the their expression of displeasure or anger minds of the employees. One possible regarding the experience of PCB, implication of this for PCB, is that however these expressions were to aggrieved employees due to PCB, may colleagues and seemed more to serve as voice their grievances, to different a venting of anger or frustration process, individuals, depending on whom they rather than genuine attempts to seek perceive as the employer. The differing redress for PCB. perceptions on who the employer is,
“Voice” was used to characterize the could also lead to mixed and conflicting third and final groups of responses. messaging within the organization. “Voice” from our study involved Rousseau (1995) has argued that only academics attempting to seek redress for messages from individuals, employees PCB and it was manifested in various consider to powerful / influential in the forms. Some academics expressed organization are interpreted as reliable displeasure directly to those in promises or commitments to future managerial positions, for example, their actions. Given the different sources of Head of Department, the Dean of their power found within organizations Faculty, the Bursar or the Registrar of (French & Raven, 1959; Igbinomwanhia, the Institution. For some academics 2011) it is very likely, that employees displeasure was expressed via an will have different views on the power intermediary, usually a higher ranking and influence of individuals and certain or more influential colleague, who then messages will be interpreted differently took their complaints to the relevant as either constituting authority figure. A final form of "Voice" commitments/promises or not even when identified among the academics, originating from the same source. involved the utilization of the staff's This study further revealed that union to express displeasure resulting academics experienced PCB in the areas from PCB. of working conditions, wages, training
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& development, promotion and WLB. factors within academics institutions This is consistent with findings from that encourage silence and discourage other studies (Robinson & Rousseau, direct approaches to authority figures. In 1994; Turnley & Feldman, 1999 and their studies of academics institutions George, 2009) which focused on the (Umar & Hassan, 2013 & Fapohunda, experience of PCB in organizations. 2016) identified these factors as to However when compared with studies include: the fear of being labelled that focused on academics (Krivokapic- negatively, reluctance to damage Skoto & O‟Neil, 2010 & Pierce et al, esteemed relationships, expectations of 2012) some differences emerge. For absolute loyalty from superiors, respect example, while autonomy & job security for the superior and prevention from were found in those studies, they were rising to top positions. The utilization of not found in our study. The finding of self-help strategies to address PCB WLB related PCB, is not all that within academics institutions, was found surprising because several authors to be the most prevalent form of (Adisa, Mordi & Mordi, 2014 and Iyayi employee reactions to PCB. This might & Igbinomwanhia, 2017) have not be unconnected to the issues of highlighted the apparent disregard for silence in organizations discussed WLB, issues in Nigerian organizations. above, such that, in order to avoid some The experiences of PCB related to of those negative consequences, working conditions, promotion and academics just make attempts to solve training & development seem to lend problems by themselves. Self-help support various assessments of the strategies might also be a reflection of education sector (Ajayi & Ekundayo, the poor state of education as identified 2010; Ige, 2013; Olayemi, 2011 and earlier and will most likely also result in International Organization for revision or destruction of psychological Migration, 2014), all of which indicate contracts, as obligations previously that it is in a sorry state. It is however considered to be the responsibility to the still surprising, that despite the poor employer, are undertaken by the conditions present, academics still employees. perceive obligations in these areas. Finally it is worth noting, that exit or the
The final objective of this study, was to threat of exit was not found in our study examine, actions academics took to as a response to PCB. Two reasons restore balance to their psychological might account for this: the first being contracts, after experiencing PCB and 3 that no breach was considered severe of such actions were identified: silence, enough to warrant exiting the institution voice and self-help. The findings of and second, being external factors such silence and voice, fit into the typologies as the economic situations present in the identified by different authors country (National Bureau of Statistics, (Hirschman, 1970; Robinson, Kraatz & 2017) prevent such academics from Rousseau, 1994; Shore & Tetrick, 1994; existing their institutions. While the lack and Schalk & Roe, 2007) and discussed of employee turnover due to PCB, might earlier in the work. The findings from appear positive, it could also have long- this study of silence, in addition to the term negative consequences for both utilization of intermediaries in voice, academic institutions and their staff might also suggest the existence of because research on PCB suggests that
40 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 the psychological contracts of economic conditions as Nigeria. In order employees who continue working after to mitigate some of the negative experiencing PCB become more consequences associated with PCB, transactional (Atkinson, 2007 & Pate, Nigerian tertiary institutions need to not Martin & McGoldrick, 2003). This only improve the physical working could also lead to several of the conditions of staff but ensure the consequences, such as reduced OCB, processes and procedures associated productivity and organizational with promotions, training & commitment discussed earlier in this development and wage administration work. are not only properly streamlined but are
6. Conclusion also fair and transparent.
The primary objective of this study was Although this study has contributed to to identify areas in which academics the literature on PCB in general and reported experiencing PCB and also PCB within the context of Nigeria their reactions to rectify such situations. specifically, 2 limitations exist which Working conditions, wages, training & might prevent the extent to which these development, promotion and WLB were findings can be generalized. The first, of the areas that emerged from our study. which was the sample size utilized for This landed support to the numerous this study and the second, was the pronouncements about the poor state of moderate response rate recorded. Future education in Nigeria. Three (3) studies on PCB within academia can responses by academics to PCB were expand the number of institutions also identified: voice, silence and self- utilized. Such studies can also cover the help. While voice and silence fit into sources of perceived employees already identified reactions to PCB, self- obligations, emotional reactions of help strategies appear to be a new academics and the actual work-related reaction to PCB and one that might me impact of PCB on tertiary institutions. unique to countries will similar
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June,. 2018
An Open Access Journal Available Online
The Value Added Tax (VAT) Administration in Nigeria and the Practice of Estate Surveying and Valuation
Caleb Abiodun Ayedun1, Daniel Olufemi Durodola2, Samuel Adesiyan Oloyede3 & Abiodun Samson Oni4
1,2,3,4Department of Estate Management, Covenant University, Ota; Ogun State Nigeria [email protected]. [email protected] [email protected]
Abstract: Value Added Tax (TAX) is a consumption tax chargeable on the value added to a product in the process of production. Like all other indirect taxes, it is a tax that targets the final consumer of goods and services. The purpose of VAT in Nigeria is to increase governments‟ (federal, state and local) revenue from non-oil sector thereby reducing the government‟s dependence on oil revenue majorly. This study evaluates the effect of VAT on Estate Surveyors and Valuers practice and their clients. Based on secondary data and personal interviews with eight principal partners of Estate Surveyors and Valuers firms in Ikeja axis of the Lagos metropolis, the study revealed that VAT has a significant effect on the spendable income accruable to the clients of the practising Estate Surveyors and Valuers and by extension the income of the Estate Surveying and Valuation firms since these clients often see the firms as the agents of government being the channels through which government collect VAT on the services they render to clients. The study recommends adequate enlightenment of property owners and by extension all whose goods and services are VATable.
Keywords: Estate Surveying and Valuation, Value Added Tax, Revenue, Taxation, Nigeria
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1. Introduction centres on its structure and Taxation, generally, is the imposition of administration. At the structural level, it levies by governments on individuals, has peculiar socio-economic character, groups, corporate bodies and services goal and problem of the country. While for the purpose of generating revenue at the administrative level, it is argued for the defrayment of government that the machinery and procedures for expenditures (Igwe-Kalu, 1998). The implementing the tax system are importance of taxation lies in its ability inadequate and therefore accounts for to generate revenue for the government, the consistent low yields and inter group influence the consumption pattern of the inequality. people, regulate the economy by It is against the aforementioned defects influencing such vital economic that the Federal Government of Nigeria variables such as income, employment, introduced a new tax system known as prices and other parameters in the Value Added Tax with the promulgation economy. Tax can therefore be defined of Decree No. 102 of 1993. The new tax as a means by which government system came into effect on 1st January, appropriates part of the private sector‟s 1994. Value Added Tax (VAT) is income. Regardless of how tax or collected by the Federal Government taxation is defined, the concept has its and shared amongst the three tiers of implicit functions. Slinger (1995) and government in the country in the Ola (1985) identified revenue following proportion; Federal generation, income and wealth Government 50%, States 35% and Local redistribution and fiscal policy as the Governments 15% to augment their three basic functions the introduction of other sources of revenue. Even though tax/taxation are meant to accomplish in the rationale behind the introduction of any economy. However, Umeh (1975) VAT in the country is laudable but its listed revenue raising, social justice, collection tends to impinge on the income redistribution, capital formation, operations of practising Estate planning and economic development as Surveyors and Valuers as well as their the functions of taxes. Therefore, tax clients who are made to bear the effect and indeed taxation is important and of the tax by way of reduction in their serves as source of revenue on which incomes. It is on the premise of the the life of government and indeed above that the study sets out to examine societies are sustained. The ability of the operation of the Value Added Tax government to generate enough revenue system as it affects Estate Surveying and from this sector often affects services Valuation practise in Nigeria being rendered as the political, 2. Review of Related Literature economic and social development of Literatures germane to taxation are any country depends on the amount of hereby reviewed. It is structured into revenue generated. One of the major three sections namely; conceptual theory means of generating revenue for of taxation, concept of value added tax providing the needed infrastructure and (VAT) and VAT administration, services in any economy is through a Registration and Vatable well-structured tax system. However, in services/products in Nigeria. Nigeria one of the criticisms often levelled against the country‟s tax system
46 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
2.1 Conceptual Theory of Taxation found a good place in Nigeria because Taxation can be defined as a all the phenomenon that made it a “compulsory levy imposed by the success in America, such as voluntary government through its agent on compliance system, competence of tax income, capital and consumption of its payer, efficient data processing system subjects” (Adegboyega; 1998). Taxation which aids detection of fraud, are not is also defined as kind of levy imposed present in the Nigeria context. by government against the income, Consequently, this disadvantage has profit or wealth of an individual, adversely impacted on local government partnership or corporate organisation. tax system in the country. Such impact Business Dictionary on the other hand has generally been based on problems defines taxation as “a means by which associated with collection, assessment governments finance their expenditure and returns procedures in each local by imposing charges on citizens and government council area. There is doubt corporate entities”. Ariwodola (2001) on how efficient the tax authority and described tax as a compulsory levy other bodies participating in the imposed by the government authority collection of tax and make returns to the through its agents on its subjects or his local and State government. In an property to achieve some goals. Arnold economy, such as in Nigeria, where and Mclntyre, (2002) define tax as a great reliance is placed majorly on compulsory levy on income, allocation from Federal government as consumption and production of goods source of revenue by both State and and services as provided by the relevant local governments, the understanding legislation. Tax is a charge imposed by and appreciation of the significance of government authority upon property, tax, as a source of revenue, is of individuals, or transactions to raise paramount importance. This is to enable money for public purposes. The those at the helm of affair the Nigerian tax administration is in line opportunity to examine potential with the British model of tax revenue generated in the State but to administration since 1960 and has been enable the decision makers and operating this up to 1990 when the self- government to appreciate the need for assessment scheme came into play administrative changes within the which seems similar to the American context of tax system. model of tax administration system Many countries of the world today have (Adesola 2004). The British model of been striving very hard to achieve rapid tax administration assumes tax payers overall development through optimum are incompetent as to the tax process tax collection and expanded revenue and as such tax authorities do not base. New forms of taxes are selectively always rely on information supplied by being introduced, particularly by the less tax payers. Hence, returns of the tax developed countries. One of such payers are carefully verified through the modern forms of taxation is the Value application of the set standards and Added Tax (VAT) introduced into the models to ensure the information and Nigeria tax system as a replacement to data supplied by the tax payers are the sales tax. The Federal Government genuine and correct. The American of Nigeria introduced Value Added Tax model, despite the advantages that can by virtue of Decree No. 102 of 1993, but be derived from its application, has not the implementation of the law did not 47 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 commence until 1st January, 1994. Prior the Rome Treaty signed by European to the introduction of the tax, a Union Countries in the late 1960s. committee was set-up by the Federal Value Added Tax is practiced in more Government in 1991 to review the entire than 60 countries of the world cutting tax system in the country and one of the across Europe, Latin America, Asia and recommendations of that committee was Africa. Some of these countries include introduction of Value Added Tax in the Japan, Argentina, Switzerland, United country. Presently, the Federal Inland Kingdom, the Netherlands, France and Revenue Service (FIRS) is saddled with Zimbabwe among others. For Instance, the responsibility of collection of the Burgess and Stern (1993) argue that the value added tax. structure of taxation in developing 2.2 Concept of Value Added Tax countries differs from that of developed. (VAT) For developing countries, we have Value Added Tax is a tax on the supply roughly two-third of tax revenue coming of goods and services which is from indirect taxes like VAT while for eventually borne by the final consumer developed countries two third come but collected at each stage of the from direct taxes. The duo suggested production and distribution chain. VAT that tax structure can change over time is a consumption tax on economic to maximize economic growth rate. operations which include imported Table 1 provides information about goods and services and are borne by VAT regarding date of introduction, tax consumers of goods and services. rates and mode of application in some History has it that VAT originated from countries of the world including Nigeria .
Table 1: Details about VAT Introduction and Application in Some African Countries Country Year Introduced Mode of Levy Tax Rate (%) Cote D‟ivoire 1960 Wholesale 5,11,25,35 Guinea 1960 Retail 6,13 Kenya 1960 Retail 5,18,30,50,75 Madagascar 1960 Retail 15 Senegal 1961 Retail 7,20,30,34 Mauritius 1983 Retail 5 Togo 1984 Retail - Morocco 1986 Retail 7,14,19 Niger 1986 Retail 10,17,24 Tunisia 1988 Manufacturing 1,17,29 Malawi 1989 Retail 10,35,55,85 Benin Republic 1991 Wholesale 18 Mali 1991 Wholesale 10,17 South Africa 1991 Retail 14 Algeria 1992 Retail 7,13,21,20 Tanzania 1994 Retail - Nigeria 1994 Wholesale 5 Sources: 1. Feria, R. and Schoeman, A. (2016) 2. Bodin, J.P. and Koukpaizan, V. (2009)
A cursory look at Table 1 indicates that African countries. While the tax is there is variation in the mode of charged at the wholesale level in some application and administration in the countries, majority of the countries
48 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 apply the tax at the retail level while in a 2.3 VAT Administration, Registration country like Tunisia, the application of and VATatable Services/Products in the tax is at the level of manufacturing. Nigeria In the same vein, the rate (i.e per cent) The Decree that established the of the taxation equally varies. introduction of the tax bestowed the In Nigeria, VAT is computed at a flat administration and management of VAT rate of 5 per cent of prices of goods and on the Federal Board of Inland Revenue services but a zero rate on exports. The and specifically empowered the Board rate is imposed on goods and services at with the responsibility for the various stages of distribution from assessment and collection of the tax and manufacturing, importation through account for the entire amount so whole sale to retail and then consumers collected in accordance with the of such goods and services. provision of the Act. VAT was adopted in Nigeria as a sales With regards to VAT registration, this is tax in 1994 to: a process of identifying those who are i. Broaden the country‟s revenue expected and/or required under the base; provisions of the VAT Decree to be ii. Effect an equitable tax; registered or liable to be registered and iii. Provide incentive for export consequently required under the Decree oriented production; to be charged and account for VAT iv. Shift taxation towards collections and subsequent remittance to consumption rather than savings; the government appropriate authorities. and Hence, all domestic manufacturers, v. Reduce the incidence of tax wholesalers, distributors, importers and evasion suppliers of goods and services in The introduction of VAT in the country: Nigeria are expected to register for 1. Covers a wide range of goods VAT. and services and as a result, A taxable activity for the purpose of provides an avenue for high VAT includes any activity, other than revenue generation for the those in exempt list, conducted as government at all levels in the business, vocation, trade and profession. country. It includes the activities of public or 2. Being a consumption tax, makes government authorities, associations and it impossible to avoid or evade as clubs. It does not matter whether or not could be commonly done with the activity is carried out on a profit, but income tax and some other form it should involve the supply of goods of taxes. and services to another person for 3. VAT is progressive in nature, consideration. Besides those expressly since the more goods or services exempted by law, a number of activities consumed, the more the tax the are not taxable activities. These are: consumer of such goods or a. Salary or wage from services pay. employment; 4. It is tied to consumption, thus b. Hobby activities; helping government to c. Private transactions such as the rationalize the consumption occasional sale of domestic or pattern of the society. household articles, furnishings, personal effects etc; and 49 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
d. House rent. Textiles, clothing, carpets and rugs Some of the exempted goods from VAT Beer, wine, spirit, soft drinks and payment include: bottled water i. Medical and pharmaceutical Perfumes and cosmetics (including products; toiletries) ii. Basic food items; Cigarette and tobacco iii. Books and educational materials All vehicles and their spare parts iv. Baby products All air crafts, air crafts bodies and their v. Commercial vehicles and their spare parts spare parts; and agricultural Soaps and detergents equipment and products, Mining and minerals fertilizer and veterinary Office furniture and equipment medicine. Electric materials of all description vi. All exports; Such other goods as may be determined vii. Plant and machinery imported by the Board from time to time as for use in the Export Processing taxable goods Zones; All services rendered by financial viii. Plant, machinery and equipment institutions (excluding mortgage purchased for utilization of gas institutions) down-stream petroleum Accounting services including any type operations; of auditing, book-keeping or any other ix. Tractors, ploughs and related services agricultural equipment Legal services including services purchased for agricultural supplied there with purposes. Computer including the provision of Exempted services from VAT bureau facilities, system analysis, include: software design, site development and a. Medical services; and training b. Services by Community/Peoples Services supplied by Architects and (now Microfinance) banks and other allied services such as Estate Mortgage Institutions; Surveying and valuation c. Plays and performance Services supplied by Brokers conducted by educational Services supplied by Security institutions as part of learning. companies and enterprises Below is a breakdown of the schedule of Courier services the VATable goods and services as spelt Repair, alteration, processing or any out in the law that established the other services provided in connection introduction of Value Added Tax in with designated goods by designated Nigeria and a flat rate of 5% is charged dealers on all. Telecommunication equipment All goods manufactured or assembled in installation and maintenance services Nigeria Letting of video tapes or any audio All goods imported to Nigeria visual recording or hiring, copying, All second hand goods rewriting of video tapes and other Household furniture and equipment similar services Petroleum and all petroleum products Entertainment services including plays Jewels and jewelleries and performance, crime shows and
50 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 music concerts including plays and Board of Nigeria (ESVARBON), as a performance conducted by educational corporate body empowered to regulate institutions as part of learning the profession of Estate Surveying and Air travels and car hires Valuation in Nigeria. Any other services as may be 3. Methodology determined by the Board from time to The methodology used involved review time as taxable services of relevant literature on the subject of
2.4 Estate Surveying and Valuation study and interview with eight principal Profession partners of selected Estate Surveying The profession of estate surveying and and Valuation firms having their offices valuation is defined as the art, located within Ikeja axis of Lagos science and practice of: Metropolis with a view to ascertaining (a) Determining the value of all their views on the effects of Value description of property and of the Added Tax on their practice and by various interest therein; extension, the effects of the law on their (b) Managing and developing estates clients.
and other businesses concerned with 4. Value Added Tax and Real Estate the management of landed property; Practice in Nigeria (c) Securing the optimal use of land and Professionals such as Accountants, its associated resources to meet Lawyers, Engineers, Architects, social and economic needs; Quantity Surveyors, Estate Surveyors (d) Determining the structure and and Valuers, etc, who provide condition of buildings and their professional services to their clients are services and advising on their required to register under the law maintenance, alteration and establishing the tax. Estate Surveying improvement; and Valuation firms as a profession, (e) Determining the economic use of essentially provide services such as land resources by means of financial property valuation, estate agency, appraisal for the building industry; feasibility and viability appraisal, and property management, property (f) Selling (whether by auction or development, project management, etc otherwise) and buying or letting (as and for these services, fees are charged agent) of real and personal property or chargeable. Therefore, Estate and any interest therein. Surveyors and Valuers, in their The Nigerian Institution of Estate professional capacities provide services Surveyors and Valuers which is a non- and these services are VATable or profit voluntary, professional subject to payment of VAT. It is worthy organisation set up in 1969 to cater for of note for professional Estate the interest of the landed profession in Surveyors and Valuers to realise that: Nigeria. The Institution and by i. VAT is a tax on spending and as such, extensions, the profession was accorded the tax is borne by final consumer of official government recognition in 1975 goods and services because it is with the promulgation of Estate included in the price paid for goods Surveyors and Valuers (Registration, and services under the law etc.) Decree Number 24 of 1975. The authorising the tax; decree also established the Estate ii. The tax is flat rate of 5 per cent; Surveyors and Valuers Registration
51 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 iii. The tax is collectable on behalf of Schedule 2 of the Decree (Act) under government; items 7 and 9 identified the services iv. A business or organisation which has rendered by Estate Surveyors and registered for VAT is classified as a Valuers as VATable services. Therefore, “registered person”; an Estate Surveyor and Valuer is v. The registered person has to make regarded as taxable person. Section 8 of regular returns monthly to the local the Decree also requires that Estate VAT office; and Records and Surveyors and Valuers who engage in accounts have to be kept. private practice are required to register The Estate Surveyor and Valuer have an with any of the VAT offices of Federal obligation under the Value Added Tax Inland Revenue Service for purposes of Decree 102 of 1993 to register at the tax. Sections 14, 15 (1), 28 and 31 of the nearest VAT office. As a VATable Decree (Act) amongst others spelt out person, Estate Surveyor and Valuer is penalties that await defaulters and/or required to keep proper records and offenders under the law. In line with the books of all transactions, operations, provision of the law establishing Value importance and activities sufficient Added Tax in the country, any Estate enough to calculate the correct amount Surveyor and Valuer just like other of VAT payable at every material time. professional organisations who These records include cash books, sales knowingly or intentionally fails to and purchases day books, ledger register under the Decree (Act) is guilty accounts, balance sheets etc. In addition, of an offence which is punishable in VAT accounts need to be kept. This can accordance with the dictates of the law. be in form of ledger card. To make VAT Also, an Estate Surveyor and Valuer returns, Estate Surveyor and Valuer is who fails, to collect VAT or submit required by law establishing VAT to returns, is equally liable to pay penalty. render a return to his or her local VAT In accordance with Section 1 of the office on monthly basis using VAT Decree (Act), the value of taxable goods Form 002. and services shall be determined as
Failure to comply with the provisions of follows: the VAT Decree (Act) by any practising (a) If the supply is for a monetary Estate Surveyor and Valuer or any consideration, its value shall be professional constitutes a serious deemed to be an amount which, offence attracting various degree of with the addition, of the tax punishments. Some of the acts that chargeable, is equal to the constitute offence under the provision of consideration; Decree (Act) establishing VAT in (b) If the supply is for non-monetary Nigeria include: failure to register; consideration, the value of the failure to furnish required information; supply shall be deemed to be its making false claims; failure to keep market value. proper records and accounts; failure to Therefore, all fees receivable for various collect tax; obstructing VAT inspectors; services being rendered by practising and failure to submit VAT returns. Estate Surveyors and Valuers (Estate 5. The Role of Estate Surveyors and Agency, Valuations for various Valuers in the Administration of purposes, Property Management and Value Added Tax (VAT) in Nigeria Property Development, including all
52 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 rents and Service Charges payable on all to be treated separately. Rather they are type of properties as well as well required to indicate their fees and VAT property lettings) are VATable. Estate separately. The typical way of preparing Surveyors and Valuers just like other professional fees and VAT account is professionals are not expected to build shown in Table 2: VAT into their fess as they are expected
Table 2: Typical Statement of Value Added Account in Respect of Fees Chargeable on Management Property by Estate Surveyor and Valuer
Particulars/Details of Services Rendered Subtotal Total (N) Collected Rents 500,000.00 Professional Fees @ 10% of Total Rent 50,000.00 Value Added Tax deductible at source as mandated by Federal Government of Nigeria being 5% of the Professional Fees 2,500.00 Total Amount to be remitted to the Client 447,500.00
From Table 2, it can be seen that the The conclusion that can be drawn from deduction of 5 per cent for VAT the introduction of Value Added Tax is purposes has led to reduction of the that the law, has in a way, added to the spendable income of the landlord with tax burden of house owners or anyone the sum of N2,500.00 which the Estate employing the services of Estate Surveyor and Valuer managing such Surveyors and Valuers or any other properties is expected to deduct from the professional for any services. rent collected on behalf of the landlord.
Table 3:Typical Statement of Value Added Account in Respect of Fees Chargeable for Valuation Assignment by Estate Surveyor and Valuer
Particulars/Details of Services Rendered Fees Chargeable (N) Total (N) Valuation figure/estimate - 5,000,000.00 Professional Fees based on the Nigerian Institution of Estate Surveyors and Valuers Scale of Fees 750, 000 Value Added Tax payable to Federal Inland Revenue Service by the Estate Surveying and Valuation firm that carried out the valuation 37,500 Total Amount Payable by the Client 787,500
Table 3 reveals the scenario of the his professional charge and on the basis situation in the case of typical valuation of the law which established value assignment undertaking by Estate added tax in Nigeria, the Valuer Surveyors and Valuers for their client. involved is expected to pay five per cent On a valuation assignment whereby the (5%) of his professional charges in the Valuers arrive at valuation figure of five sum of thirty seven thousand, five million naira (N5,000,000.000.00), hundred naira (N37,500.00) as tax to based on the approved scale of the Federal Inland Revenue Service. The professional charges, the Valuers that additional 5% payable to the Federal carried out the valuation assignment is Inland Revenue Services by the firm of obliged to charge seven hundred and Estate Surveying and Valuation as VAT fifty thousand naira (N750,000.00) as constitute additional burden which in
53 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 most cases, clients do complain about as tax as it tend to result into reduction in additional expenditure and burden their spendable income and as such impinging on their spendable income. often vent their anger on their consultant
6. Conclusion Estate Surveyors and Valuers whom The introduction of Value Added Tax they often perceived as being (VAT) has since been negatively responsible for adding to their financial impacting the practising Estate burden since they (Estate Surveying and Surveyors and Valuers due to the fact Valuation firms) are responsible for that their clients are not favourably collection of the tax from their clients disposed to the implementation of the on behalf of the government.
References Fraud and Evasion Through Legal Adegboyega A.J. (1998). Analysis of Design. A Paper Presented at VAL Taxation Principle, Book I , Symposium held in South Africa Ibadan, University Press (October). Arnold, J. B. & Mclntyre, J. M. (2002) Igwe-Kalu, A. (1998): Landed Property International Tax Primer, Second Taxation and Rating in Nigeria: An edition, Kluwer Law International, Unpublished PhD Thesis, The Hague, the Netherlands. Submitted to Abia State Ariwodola J. A. Company Taxation in University, Uturu. Nigeria Including Petroleum Profit Ola, C.S. (1985): Tax Planing and Tax: 2nd Ed Auditing in Nigeria. University Adekola O. A. (2010). Essentials of Press Ltd, Ibadan Public Finance, Ibadan, EFACTA Slinger, B.F. (1995); Local Government Plus Revenue: An Overview in Bodin, J.P. & Koukpaizan, V (2009) Municipal Policies and Local The Rise of VAT in Africa: Impact Government Finance. Aronson J.R. and Challenges; International VAT and Schwartz (eds) Monitor @ IBFD Umeh, J.A. (1972): Land and Fiscal Burgess, R. and Stern N. (1993): Policy in Nigeria; A Paper Taxation and Development, J. presented at a seminar in Ibadan on Econ Lit 31, pp.762-830 Land Administration and the Feria, R. & Schoeman, A. (2016) VAT Development of Africa. Anti-Fraud Policy in African Countries: Addressing
54 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June,. 2018
An Open Access Journal Available Online
Victims of Medical Errors in Osun State, Nigeria: A Qualitative Study
Kamorudeen Adegboyega
Department of Sociology, Ahmadu Bello University Zaria-Nigeria [email protected]
Abstract: The Nigerian health care system has recorded unimaginable incident of medical errors. This is partly attributable to difficulty in accessing responsive health facilities by many Nigerians. When accessed, patients receive compromised health care from ill-equipped health facilities, thus, exposing patients to suffer medical errors. The study utilized the political economy approach in its theoretical and analytical thrust. Using a qualitative approach, this study sought to determine profiles of the victims, types, factors responsible for medical errors suffered by victims in Osun State. The findings revealed that medical errors manifest in various ways. These include diagnostic, medication, surgical, procedural and injection errors, among others. The study revealed that low socio-economic status of patients forced them to patronize incompetent health practitioners and ill-equipped hospital facilities and subsequently exposed them to suffer medical errors. Aligning its recommendations to the Political Economy of Medical Errors in Nigeria, this study recommended that the public healthcare system in Nigeria should be rejuvenated in order to address the challenges posed by medical errors in the country. In addition, victims of medical errors or their relatives should be encouraged to report erring healthcare providers to appropriate authorities. Key Words: Compromised Health Care, Incident, Erring, Victims and Challenges
Introduction errors. Thus, as health workers deal with Despite advances in medicine, hospitals the life and health of patients, they also and other health facilities have become face the challenge of medical errors. places where patients suffer medical Incidents of medical errors therefore
55 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 constitute global health problem. For the empirical and reliable data necessitated purpose of this study, medical errors are the researcher‟s interest to identify the considered as unintended, negative victims in order to analyze and outcomes (injuries, disability, prolonged document the challenges associated with hospitalization or death to the affected the incidence of medical errors. patients) directly linked to the Investigation into the victims of medical healthcare services provided to clients. errors is important because beyond their Medical errors are also considered as cost in human lives, medical errors exert unplanned mishaps resulting from health other significant tolls on patients and practitioners‟ carelessness, either society. This argument corroborates that unawareness, ignorance or a of Vincent (2006), who advocated that combination of these factors, causing the victims‟ perspective of medical either injuries, losses or increase in errors is informative in the development disabilities (Adegboyega, 2016). To of initiatives designed to improve understand the problem of medical patient safety, public confidence and errors, this study situates its analysis satisfaction with healthcare. This study within the context of the political therefore aimed at gaining a deeper economy of health care in Nigeria. This understanding of medical errors suffered is because the individual patient‟s by victims in Osun State, Nigeria. wellbeing is influenced by the Statement of the Problem prevailing social, economic, political, Occurrence of medical errors constitutes cultural and environmental factors serious concern for health researchers where such care is provided. The and members of the public. This is application of this approach means that because medical errors expose victims the occurrence of medical errors in to hardships, which may manifest in patient care is due to the modern forms of loss of work, permanent medical system failures. This is because disability, poorer quality of life, and the actions of individual healthcare other calamities. Other costs are providers play a central role in expenses incurred such as those for healthcare outcomes, but their special food or diet. Similarly, the immediate working environment and victims of medical errors may not be wider organizational processes influence able to perform other activities such as their thinking and behavior. These routine religious recreation, sports and manifest in form of poor family obligations. Additionally, fear of communication, unclear lines of incurring medical errors may lead authority among some healthcare patients to procrastinate in searching for providers and poorly staffed healthcare medical help, which may allow their facilities (Adegboyega & Hellandendu, illnesses to worsen. The doctor-patient 2014). relationship may be characterized by a
Abioye and Adeyinka (2002) had earlier morbid fear on the side of the patient. reported that many patients have In terms of responses, medical errors suffered medical errors in Osun State come to the attention of the law through because of unsafe vaccinations, the complaints that arise from the injections, blood transfusions, victims or their relatives. However, the counterfeit drugs or unreliable medical healthcare environments do not equipment. Therefore, the need for encourage voluntary reportage of
56 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 medical errors by health practitioners consequences of medical errors suffered who committed them. In addition, by victims. This study therefore is because of religious and other capable of contributing to the stock of sentiments, relatives and victims seldom knowledge by analyzing the victims‟ institute court actions or lodge profiles, types of medical errors complaints to regulatory bodies for experienced by the victims and; factors redress. The identified factors among responsible for the errors. others, contribute to low public Review of Literature and Theoretical awareness about the challenge of Orientation medical errors in the Nigerian health Studies have indicated that medical sector. However, Chuwuneke (2015) errors exist all over the world‟s health established that victims of medical systems, compromising the patient errors in Nigeria, are mostly the less safety. Report from the United States privileged, who also do not have the Institute of Medicine (1999) emphasized wherewithal to file legal actions against that most medical errors are systems the hospital or medical practitioner in related. The identified system failures the event of medical errors. He stressed include poor communication, unclear further that in an environment where lines of authority of physicians, nurses, ignorance and poverty are common, and other care providers. Others are people‟s fundamental rights are often disconnected reporting systems within a violated, as poor victims may not have hospital, inadequate systems of the means to seek redress against erring information about errors etc. practitioners. Consequences of a poor workplace
Even though cases of medical errors are culture, such as a lack of common in both privately and publicly communication and teamwork, therefore funded health facilities, it is worthy of have serious implications for patient note that most of the cases only appear outcomes. A study conducted by on the pages of the Nigerian Alemdar & Aktas (2013) in Turkey newspapers. While appreciating the found that the causes of medical errors roles of mass media in creating public among healthcare providers were awareness on medical errors, it is tiredness, increased workload and long important to state that mass media lack working hours. Paul (2014) reported that capacity to provide comprehensive a 3.46 medication related error per knowledge about the magnitude of the prescription due to poor handwriting problem in the country. The importance and recording among healthcare of the identified knowledge gap must personnel in Bangladesh. The study also not be underestimated as it is considered identified poor documentation in a serious limitation to understanding the prescription as a major cause of patient extent of the challenge posed by medical morbidity and mortality in the country errors on victims in Nigeria. This study as at the time of study. is relevant for implementing measures Khoo, et al. (2012) reported incidence of capable of enhancing the safety of medical errors among patients on clients, as data generated from it will admissions between 2008 and 2011 in enhance victims‟ and healthcare different clinics in Malaysia. The practitioners knowledge the causes of distribution of the reported errors were medical errors, the types and as follows; documentation errors
57 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
(18.0%), medication errors (21.1%), medical errors among patients in sub- investigation errors (21.7%), decision- Saharan Africa to poverty and low level making errors (14.5%) and diagnostic of education. The study opined that errors (3.6%). The study also most patients live in rural and semi established that most of the errors were urban areas and are not able to get to preventable and 40% of errors were hospital quickly in an emergency. The viewed as having a potential for causing study further found that these patients serious harm. Examining the physician were malnourished, could not afford the and public perceptions of the causes of cheapest medicine and were reluctant to medical errors, a study conducted by travel long distances for routine Blendon and Robert (2002) revealed checkups and screenings in centralized that both differed in their judgments. services of tertiary health institutions in The study highlighted that the physician urban area. The study concluded that the believed that the two most important socio-economic factors mean that some factors contributing to medical errors patients were not likely to afford were the understaffing of nurses in multiple interventions necessary as part hospitals while the few on duty at shift of their care. A critical look at this study who are overworked, stressed are shows that poor socio-economic statuses fatigue on the part of healthcare among patients affect their health professionals. On the other hand, the seeking behavior negatively as the poor study established that members of the patients delay medical treatment and in public identified the shortage of nurses some cases, patronized quacks. and the overworking of healthcare A study conducted by Chukuezi & professionals generally as contributing Nwosu (2010) identified reasons for factors to medical errors. These were surgical errors in a tertiary health important findings because they showed facility in Nigeria to include delay in that practicing physician and the public treatment, error in judgment, limited view medical errors differently. hospital resources and poor Similarly, Warren (2015) revealed that infrastructure on the ground. Ojerinde, misuse and flaws related to medical Olabisi and Adejumo (2014) also equipment and mistakes in the attributed the incident of medication laboratory are common causes of errors among nurses in a public health medical errors. The study highlighted facility in Nigeria to multiple factors, that more than 50% of errors are caused which include exhaustion due to work by a mistake during the use of devices pressure, wrong dose calculation, because the person using the device was inadequate knowledge about the drug, not adequately trained on how to use it. poor documentation, wrong Findings from this study contributed to prescription, poor labels/packaging, the stock of knowledge on medical distraction and failure to match patients errors, as it provides various dimensions name with prescription. Others are on the drivers of medical errors. misinterpretation of prescriptions,
Recognizing the importance of patients‟ confusion between two similar terms, socio-economic backgrounds and illegible prescription, absent- vulnerability to medical errors, a study mindedness and wrong time of conducted by Atiyeh, Gunn & Hayek administration. Ajemigbitse, Omole, (2010) attributed the occurrence of Ezike and Erhun (2014) attributed the
58 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 occurrence of medication errors among additional life-sustaining treatments, health workers in Obafemi Awolowo which can contribute to patients‟ death.
University Teaching hospital, Ile-Ife, Miller and Zhan (2004) reported that Nigeria to many factors, such as medical errors in hospitalized children workload, multitasking, rushing and are associated with significant increases tiredness. Other factors were distraction, in length of stay, healthcare costs and low morale, unfamiliar patient, lack of deaths. A study conducted by Sousa, support from senior colleagues and Uva, Serranheira, Nunes and Leite nervousness. (2014) revealed that 58.6% of patients
Other studies also reveal that medical who experienced medical errors errors pose negative consequences for prolonged the length of stay in hospital victims, relatives and friends. For on average for 10.7 days, with instance, Duclos, Eichler, Taylor, additional direct costs of €470,380.00. A Quintela, Main, Pace and Staton (2005) study conducted by Orkuma and Ayia found that patients experienced (2014) in Nigeria revealed that the physical, emotional and financial trauma effects of medical errors on victims because of medical errors they sustained include economic and non-economic in medical errors. Gallagher, Waterman, damages. Economic damages include Ebers, Fraser and Levinson (2003) also lost wages and medical expenses on the found that patients described feeling part of victims. On the other hand, the sad, anxious, depressed and often angry non-economic damages include pain, that their hospital stay was prolonged sufferings and physical impairments, due to the medical errors. Gilmour emotional torture, inconveniences, loss (2006) expressed that the incident of of companionship and humiliation. medical errors suffered by victims in Theoretical Orientation: The Political Canada resulted in permanent disability, Economy of Medical Errors in while some victims die because of the Nigeria errors. A study conducted by Starfield This study adopts the Marxian Political (2000) in the United States found that Economy framework to explain the medical errors are the third leading intricacies of medical errors, which cause of death. The study also showed manifest in Nigeria‟s health sector. The that there were 2,000 deaths/year from Political Economy of Medical errors unnecessary surgery; 7,000 deaths/year hinges on the materialist conception of from medication errors in hospitals; the history of healthcare delivery in 20,000 deaths/year from other errors in Nigeria (Falola & Ityavyar: 1991; hospitals; 80,000 deaths/year from Milward: 2010; Ticktin: 2010). The infections in hospitals; 106,000 Marxian Political Economy approach deaths/year from non-error, adverse has three basic theoretical thrust. Firstly, effects of medications. Osmon, Harris, the approach takes as its starting point Dunagan, Prentice, Fraser and Kollef the assumption, that human society is (2004) studied the reporting of medical materially rooted and constituted. The errors in an intensive care unit implication of this is that relations of experience where it was concluded that power permeate the way in which a medical errors are common among society conducts its economic life, in patients in the intensive care unit and terms of the production and distribution that an error can result in the need for of scarce resources. This is what is
59 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 referred to as relations of production. the colonial military and other officials. Secondly, relations of production This discriminatory approach to health determine the life chances of individuals care in favor of elite became the and social classes in society in terms of operating principle in Nigeria even in those who benefit from economic the post-colonial era, and resulted in the transactions, and those who loss out. denial of healthcare access to the less Thirdly, the Marxian political economy privileged. Nigeria‟s post independent approach posits that the material world national healthcare policy continues to has dialectical relations with social reflect a health system modeled along existence. This holds that social realities the colonial pattern (Ityavyar, 1983). cannot be grasped outside the realms of This partly explains why in the 21st economic realities. In effect, the century Nigeria, government general Marxian political economy theory sees hospitals are still poorly staffed and the economy and politics as dialectically equipped and still primarily serve the linked (Marx, 1976). poor population who cannot afford Contributing to the debate, Alubo anything better. In a similarly study, (1995) opined that political economy is Adegboyega & Hellandendu (2015) a tool for the analysis of mode of submitted that the challenges associated production; which also helps us to with the Nigerian health sector understand social stratification, the role predisposed the privileged Nigerians to of State and the dynamics of production go for medical tourism abroad. and reproduction in human society. Similarly, the political economy Tuohy and Glied (2012) also provided a theoretical approach is useful to explain descriptive narrative of the role of the correlations between hyper- government in the health care system by unemployment, increasing level of identifying the factors and forces that poverty among Nigerians and its determine the direction of that role. implications on patients‟ health seeking They examine the extent to which the behavior and the potential for their political economy applies to our vulnerability to medical errors. The understanding of the challenges paradox of the deepening crisis of mass associated with healthcare delivery. poverty in Nigeria and the enormous Their analytical strength draws from wealth in the country is pathetic. It both economics and politics to further shows that indicators of health understand the intricacies inherent in the are a mirror of what goes on in the health sector. They emphasized that wider society as majority of the government policies play a critical role population are deprived of the material in health care delivery in a polity. This benefits of the economy. Balancing this is because the failure or success of equilibrium is therefore a function of healthcare has a dialectical link to history, politics and economic policies existing socioeconomic system. These (Stuckler, Feigl, Basu, & McKee, 2010; include the extent to which health care Gish, 1979). It is within such a context expenditure and quality of health that the volume „the Political Economy infrastructure is considered as a public of Health in Africa‟ by Falola & good and priority. In an extended Ityavyar (1991) is situated. The book contribution, Ohwona (1991) also took a historical review of major phases argued that the British colonial welfare of health services in Africa. Their study services were restricted to the needs of 60 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 analyzed health as an integral part of the equipment, some of which could not be deepening crises in Africa‟s installed or adequately operated. The underdevelopment, pointing out that the significant of this can be located in the Western paradigm of health care economic contribution of hospital delivery systems have not only made construction to primitive accumulation, health care less accessible for most corruption, award of inflated contracts African people, but that it has also for profiteering. This laid the foundation created countless number of problems for the problems that continue to ravage for the health sector. Part of the the health sector, including the problems as identified by Ezejiofor, preponderance of medical errors. To Okafor & Okoro (2013) is that most of buttress this point, the World Health the public health facilities in Nigeria Organization (2011) reports indicates have fewer physicians and lack essential that total public expenditure on the tools such as drugs, syringes, needles, Nigerian health sector which stood at coolers and beds. They also explained 7.05% in 1995 dropped to a low of further that gaps and dysfunctions exist 4.22% in 2000, rose slightly to 6.41% in the area of clinical services, 2005 and dropped again to a low of specifically clinical audits, performance 4.4% in 2010. Similarly, the political appraisals, educational training and re- economy theoretical approach is useful training of health care personnel, and to explain the correlations between quality improvement of patient safety. hyper-unemployment, increasing level This makes it difficult to enhance or of poverty among Nigerians and its evaluate healthcare performance and implications on patients‟ health seeking patient safety. With these scenarios, the behavior and the potential for their health care environment becomes a vulnerability to medical errors. The fertile ground for the occurrence of paradox of the deepening crisis of mass medical errors. poverty in Nigeria and the enormous
Political economy theory enables us to wealth in the country is pathetic. It understand the social and economic further shows that indicators of health contexts of medical errors in Nigeria, are a mirror of what goes on in the provides the key to un-lock, and wider society as majority of the analyzes other components of the population are deprived of the material problems, such as corruption in the benefits of the economy.
Nigerian health sector and its impact on It is also instructive to state that the the quality of services received by political economy theory influences patients. Over the years, provision of victims and healthcare providers‟ health services has always been an responses to medical errors. Illustrating avenue for primitive accumulation and this statement, Ahmed-Kazeem (2016) corruption. Situating how the provisions explained the legal options available to of health care encourage corruption in victims of medical negligence in the post-colonial Nigeria, Abba, Nigeria, with emphasis on the Code of Abdullahi, Abubakar, Kwanashie, Medical Ethics (Rule 29.4), which Abubakar, Oculli, Kyari and Usman, stipulates professional negligence. The (1985) opined that health policy in rule includes failure to attend promptly Nigeria was pre-occupied with capital to a patient requiring urgent attention construction, and expensive medical when the practitioner is in position to do
61 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 so, incompetent assessment of the responsibilities for healthcare condition of a patient, making wrong professionals and managers. diagnosis even when clinical features Healthcare statutory bodies must are glaringly obvious to have informed a serve to enhance patients‟ rights correct diagnostic exercise. Others are and serve as watchdogs to ensure the delivery of healthcare strictly making a medical error in terms of abiding by ethical codes of amputation of the wrong limb, wrongly conduct. The ethical and moral terminating pregnancy, prescribing a dilemmas that healthcare wrong drug or dosage; failure to refer a professionals and managers are patient to a more competent and faced with daily, place additional qualified medical consultant; failure to strain on the system. do be reasonable in handling a patient; As a theoretical tool used in this study, failure to see a patient and relatives as the „Political Economy of Medical frequent as the medical condition Errors‟ reveals that Nigeria‟s corrupt required. While the foregoing rules are and weak healthcare system, which is given, in actual practice, the social, characterized by primitive political and economic realities of every accumulation; inadequate health society are the main determining factors facilities; ill-trained medical that can ensure that medical professionals; low socio-economic professionals meet the requirement background and poor awareness by enshrined in such medical rules and majority of Nigerian patients; all ethics. Karodia and Soni (2015:123) combine to contribute to the incidence located the heart of the Political of medical errors in the country. Economy of Medical Errors in their Arguing on a similar theoretical thrust, discourse of the intersection of politics Ichoku, Fonta & Ataguba, (2013) with utilization of scarce resources thus: demonstrated that lack of progress It is therefore important to towards universal health care coverage concentrate upon the political and other related health challenges in economy of healthcare sub-Saharan Africa (Nigeria inclusive) management in relationship to is largely due to the elitist, pro- public health issues. Advances in capitalist, primitive capital accumulation preventive medicine or public and „free market‟ system that drives it. health depend on the prior allocation of scarce economic This economic structure set the resources, primarily through foundation for many challenges that are actions in the political arena… It associated with the health care delivery therefore, has to be clearly in the sub-continent. understood that demand for From the foregoing, the political health expenditures must economy theory has demonstrated the compete with other priority areas basis for the occurrence of medical such as defense, education, social errors, in Nigeria, as it describes how security and housing… more systemic factors, such as inadequate difficult, and this places a huge funding of health sector, primitive burden on the resources available and the mobility of the labor accumulation of health resources, ill- force. The length of stay in equipped health facilities and ill-trained health institutions, levels of medical providers predisposed patients disease (acute) and chronic lead to medical errors. It could therefore be to far more work and greater stated that the Nigerian healthcare 62 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 environment is fertilize for the order to have full knowledge of occurrence of medical errors. categories of patients and members of
Methodology the public that have suffered medical The study was carried out in Osun State, errors in Osun State. A total number of Nigeria. The health situation in the State 80 victims of medical errors participated is very much like the national one in the study. The distribution of the characterized by poor health, such as victims indicate that there were 28 shortages of competent health facilities males (35.0%) and 52 females (65.0%). and absence of regulatory mechanisms The result indicates that females were historically worsened by rapidly more than males, it can therefore be growing population that stretches health concluded that there is relationship resources. between gender and patient vulnerability
The research design was exploratory, to medical errors in the study area. The employing qualitative research plausible explanation is that females approach. To capture the issues and experience gynecological diseases and questions raised, in-depth interviews as such, making women susceptible to (IDIs) were conducted with the victims medical errors. The study also revealed and other research participants in the that most of the victims were between study area. Interview guides designed the ages of 31 and 40 years while a few were aged between 10 and 20 years. for data collection were semi-structured to accommodate flexible and adaptable In terms of the formal educational sessions during data collection. Eighty attainment, significant numbers of the (80) laypersons comprising victims of victims were holders of primary medical errors, their relatives and school/senior secondary school community leaders participated in this certificates. However, some participants study. The samples were selected using possessed higher educational snowball sampling, where participants qualifications such as NCE, OND, HND were drawn based on their availability and First Degree in various disciplines and their knowledge of the research not related to medicine; while some topic. Such participants referred the participants were in various higher researcher to others known to them who institutions of learning as at the time of had suffered medical errors. All research conducting this research. The participants agreed to participate in the implication of finding is that there is study by giving verbal consent and relationship between patient educational approval. Before commencing attainment and vulnerability to medical interviews, participants were asked if errors. This is because patients‟ they were willing to be audio-recorded educational attainment influences their and reassured that any information health seeking behavior. It should not be provided would be treated with a strict considered an overstatement to say that confidence. patients of low educational background
Presentation and Analysis of Findings may not possess relevant information Profiles of Identified Victims of capable of influencing where they could Medical Errors in Osun State seek health services, thereby This section presents and analyzes predisposing to patronizing unqualified profiles of the victims of medical errors health practitioners and those who do in the study location. This is done in not understand the standards of care. 63 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
The low educational attainment occupational statuses of the victims‟ therefore exposed the clients‟ to suffer also explains why most (56.3%) of them medical errors. Inference from this patronized patent medicine vendors who study therefore is that patient with little were not competent enough to render or no formal educations were more quality healthcare delivery to clients. vulnerable to medical errors. This could be explained from economic
This study also found that 65.3% of the point of view that most of the patent victims resided in rural areas. Given the medicine vendors render services at fact that most of the rural dwellers in lower rates and therefore attracting Nigeria find it difficult to receive clients from low economic status. treatment from competent health Types of Medical Errors Experienced facilities, rural dwellers patronize the by the Victims available healthcare providers in their To identify the types of errors, the communities. While most of the health victims were asked about the genesis of practitioners in the rural areas did not the errors made on them. Prompts were operate within the rules and regulations made to elicit the full context of guiding the safety of clients, the chances victims‟ experiences of the medical are therefore higher for the occurrence errors. Most victims also presented of medical errors when clients patronize stories of both their own mistakes and the existing health facilities in their errors experienced by their friends and communities. The absence of relatives. The narratives indicated that appropriately staffed and equipped medical errors such as delay in healthcare facilities in the rural treatment/errors of protocol, injection, communities therefore has effect on the medication, surgical errors and wrong health seeking behavior of the rural discharge from hospitals were common dwellers. in the studied area.
In terms of occupational status, this The participants, who experienced study revealed that most (68.8%) of the errors of delay, attributed it to some victims were dependents (students, workers‟ poor habits of delaying to the unemployed or retirees). The results also extent of ignoring patients who need provided information about the urgent medication. Others perceived economic status of the victims, which health workers as people who did not suggest that most of the victims of have human feelings at heart, especially, medical errors did not have regular when it was expected that health incomes. Given the fact that most of the workers were trained to save lives by victims were dependents, their health rendering prompt medical services to seeking behavior would be directly the sick. Responses from the influenced by their income or by the participants further revealed some of the predisposition of the person, they challenges facing government-owned depend on. This implies that patients health institutions. These include health who were financially weak would find it workers‟ poor attitudes towards their difficult to patronize reliable health responsibilities, thereby exposing facilities and in a bid to seek medical patients to suffer delays and other help from cheaper but less effective inconveniences. healthcare facilities, they become Other victims attributed the delays to vulnerable to medical errors. The excessive bureaucratic protocols in
64 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 various health facilities. The participants at the receiving end. This backfires in in this category cited instances where form of delay of treatment, subsequent healthcare workers insisted on seeing complications and deaths. official report from the security Other participants, especially, enrollees personnel before providing medical of the National Health Insurance services (including first aid treatments) Scheme (NHIS) complained about the to survivors of road accidents and delays they experienced whenever they including patients in critical conditions, sought for medical interventions in who died before security reports could primary healthcare institutions. These be obtained. They further explained that included poor response to laboratory test no matter the position of the hospital requests and deliberate refusal by management, health workers are personnel to dispense drugs to them, supposed to render first aid medical even when those drugs were covered attention to patients in critical and available in the NHIS pharmacies. conditions, while observing other The problems associated with delay in protocol related issues. A participant response to patients‟ requests as narrated how such bureaucratic documented by this study were cases protocols in a tertiary health facility led where patients developed complications to the death of a motor accident victim such as fainting, unconsciousness and thus: deaths.
My uncle was involved in a motor Some participants also reported that accident along Ibadan-Ife road in they suffered errors attributable to faulty 1998. Though, I boarded a different administration of injections. These vehicle, I got to the accident spot emanated from child immunization, immediately after it happened. We wrong combinations of injections, and then took the survivors to a tertiary hospital in Osun State. As we injections at the wrong sites of the arrived the emergency unit of the bodies, among others. Interviews hospital, we were asked to submit conducted with some victims‟ showed police report, to ensure that the that errors related to immunization were victims were not armed robbers. attributable to lack of competence on the We pleaded that the victims were part of adhoc personnel to render the motor accident survivors but our health services. The participants in this pleas were ignored; saying that it category said that the majority of the was part of their professional ethics personnel employed to render the and protocols. As we tried to immunization services were appointees convince the health workers, my uncle became hypertensive and of political stakeholders and people who died (a 65-year and relative of a had not acquired any skills in any of the deceased of victim of error of medical sub professions. The delay). participants also alleged that healthcare The plausible explanation to the providers in most of the communities narratives above is that the health care were poorly qualified. The narratives setting is a complex structure, guided by from the participants revealed that it was rigid rules. The workers in the public a common practice to see people who health facilities follow stringent did not acquire any medical training protocols while carrying out their rendering medical treatment to clients in responsibilities. In this case, clients are various communities. The participants
65 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 attributed this to paucity of well-trained personnel. It is worth noting that the medical practitioners in various major trust in the medical profession is communities. Very poorly qualified the need for the providers to adhere to people therefore provide medical protocols while rendering services to services for serious ailments such as patients‟ to advance standard of care. malaria, antenatal care, typhoid and Here, the participants gave graphic even delicate services like heart related accounts of how healthcare providers illnesses, among others. breached protocols while rendering
Apart from the immunization vaccines healthcare services to them. related errors, some participants Other victims of medical errors, reported cases where healthcare especially those who patronized patent providers either gave them wrong medicine vendors (PMVs) narrated their injection or injected them at wrong sites. own experiences too. The affected One of the participants who experienced victims in this category were those error of wrong injection recalled: living in rural areas, suburbs and slums Six weeks ago, I went to a clinic where there were no modern healthcare close to my house when I noticed facilities. This is in addition to the that I had malaria symptoms. The challenge of transportation to facilitate nurse on duty told me that I would their movement to more available health receive four different types of facilities. Thus, most of the participants injection, though I cannot recall their names. I received all the in this category stated that the PMVs injections as recommended served as their first point of care (simultaneously). Three days later, whenever they were ill. They justified one of my legs started swelling. … their stance by highlighting that the I did not understand what went PMVs provided them medical treatment wrong, until my daughter; a promptly at affordable costs. The medical student came home to identified factors, among others check the affected leg. Based on enhanced higher patronage of the PMVs my explanation of the illnesses, she by the participants. One major concluded that the nurse who revelation from this study was that administered the injection had committed an error, as she was not majority of the PMVs had no formal supposed to combine the injections training in any field of medicine. Rather, (a 53-year-old man who suffered the participants explained that the PMVs error of injection). obtained their training as apprentices Procedural errors in this study, which and on the-job-training. The study also some victims suffered include failure of revealed that the PMVs operated as healthcare providers to embark on general practitioners and therefore thorough diagnoses of patients‟ before claimed to be able to treat various services are rendered and failure of categories of illnesses such as malaria, healthcare providers to refer typhoid, antenatal/post-natal services, complicated illness to appropriate levels dysentery, tuberculosis, and of care where required. Others are hypertension, among others. wrong documentation of patients‟ record, wrong diagnoses, surgical error and poor handling-over of patients‟ medical details to other health
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Factors Responsible for Occurrence shops for utilization of health services of Medical Errors Experienced by the made them suffer medical errors.
Victims Similarly, some participants opined that The major assumption among the the medical errors they suffered were participants is that patients‟ low socio- attributable to poor awareness of quality economic status predisposed them to of health facilities prior to their medical errors. Given the fact that most patronages. This manifested in the form of the victims of medical errors were of victims poor knowledge of where from low socio-economic background, effective medical services should have this study revealed that the factors been sought, victims‟ difficulty in responsible for the medical errors understanding medical instructions and suffered were social and economic in their failure to seek for clarifications on nature. These were poverty among the issues related to illnesses and victims, victims‟ ignorance of useful treatments. The findings further healthcare information and poor access established that health information and to effective modern healthcare facilities. patients‟ awareness were important
For the victims who attributed the determinants of patients‟ vulnerability to medical errors they suffered to their low medical errors. In a situation where economic status, they blamed the patients‟ did not have information on combinations of unemployment, health care providers from which to irregular payment of monthly salaries, make choice, the chances are higher that low-income among others, which made such patients‟ might experience medical them vulnerable to medical errors. The errors. In this regard, the victims were major trend among the victims in this mostly ignorant of basic relevant health category is that most of them lack information, which could have definite and sustainable source of prevented them from being vulnerable economic livelihood, and subsequently to medical errors. Therefore, rather than affecting their health seeking behavior. attributing medical errors, they suffered Therefore, in the event of sickness, such due to negligence from healthcare as malaria, typhoid, body ache, and even providers; they stated that ignorance on routine clinic visit like antenatal and their parts served as the major driver of postnatal care and child immunization, the medical errors. the participants said that they patronized Deduction from elicited data is that patent medicine vendors, there is a connection between the costs pharmaceutical shops and any available of care, patients‟ ignorance of healthcare providers in their constitutes competent care, poverty and neighborhoods. Some participants in patronage of substandard health this category also said that the financial facilities and victims vulnerability to costs of treatment in most of the patent medical errors. Thus, patients‟ prior medicine stores and pharmaceutical knowledge about quality of health shops were affordable, which facilities could serve as a driver for their encouraged their patronage. However, involvement in medical errors. In other the victims also observed that their words, the social and economic statuses „partnership‟ with the owners of patent of the patients influenced their health medicine vendors and pharmaceutical seeking behavior and where medical interventions are sought. The
67 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 combination of these factors determines Recommendations patient vulnerability to medical errors. Based on the findings, this study
Conclusion recommends the following; The occurrence of medical errors when The spate of medical injuries in Nigeria patients receive care from healthcare gives renewed weight to the importance providers constitutes public health of regulation in preventing and challenge in most countries of the managing incidents of medical world, Nigeria inclusive. In specific negligence. Patients should also be more terms, medical errors constitute threat to proactive in their health and medical patients‟ safety, as it exposes them to treatment; while medical personnel injuries, delay hospitalization and may should take more responsibility for the lead to patient death. This study cases that they handle. The government therefore provided evidence on the should also begin to take citizens health extent and gravity of medical errors more seriously by building more suffered by health consumers in the hospitals and better equipping the study area. Specifically, the systemic existing ones, in order to see a decline in factors, which include shortages of cases of medical errors. Similarly, competent health personnel, non- proper awareness should be given to the conducive working environment, weak citizens by relevant government regulation, poor awareness among agencies and mass media about the patients‟ and professional negligence, dangers associated with the patronage of among others predispose patients to ill-equipped health facilities. This will medical errors. Findings from this study not only reduce the proliferation of revealed that patients who are able to incompetent health practitioners but also access medical services receive sub- mitigate the occurrence of medical errors. standard care in many cases due to negligence on the part of one health care Since good quality of healthcare provider or the other, even in tertiary delivery encourages individual to seek health establishments. Those who for health care promptly, clinicians and cannot afford the services of healthcare providers should because of professionals go to quacks that may their obligations endeavor to deliver provide cheaper but sub-services, with a safe and ethically sound clinical care greater risk of harm or damage to the always even in the face of adverse patients and their families. The economy. Clinicians should also be occurrence of medical errors in patients‟ aware of the existence of the basic care is therefore a serious public health human rights and equity considering the problem with major implications for values and dignity of patients before health policy, planning and resource making decisions or taking actions that allocation. Healthcare providers are may affect them. prone to commit medical errors but the Victims of medical errors or their existence of comprehensive structure relatives should also be encouraged to and framework could mitigate such report any erring healthcare providers to occurrences. The foregoing is an the appropriate regulatory bodies, indication that medical errors cannot be government agencies and non- isolated from the politics, economy and governmental organizations for society of Nigeria. clarifications, compensation and redress.
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This will not only serve as deterrent to among the various healthcare providers the erring healthcare practitioners but in Osun State, Nigeria. also serves as checks and balances
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June,. 2018
An Open Access Journal Available Online
Mainstreaming Global System of Mobile Telecommunications for Agricultural Development in Nigeria
Dr. Micah Damilola John
Department of Sociology Faculty of Social and Management Sciences Adekunle Ajasin University Akungba Ondo State [email protected]
Abstract: Global system of mobile telecommunication (GSM) services play significant role in many facet of human lives. Specifically, it has been demonstrated that GSM services can be used to improve practice of agriculture in society. In line with the above position, this study was designated to examine access and utilization of GSM services in selected rural communities in Ibadan and this contributed to agricultural development. The study was hinged on Merton‟s theory of Manifest Function to explain conceptual issues in the study. Sample of eight hundred (800) respondents was selected from designated population of male and female farmers. Purposive, quota and accidental sampling techniques were adopted for selection of study locations, sample distribution and respondents respectively. Descriptive quantitative statistics and qualitative method was used. Access to GSM services among farmers was described as low (3.0%), moderate (57.4%) and high (29.6%). Again, the utilization of GSM services among farmers was low (4.6%), moderate (28.8%) and high (66.6%). Similarly, 5.6% of the respondents had no formal education or cannot read and write which made it difficult to effectively utilize GSM services. There were 70.1% of the respondents who could adequately utilize GSM services for various activities especially browsing internet to follow updates in daily lives. Respondents however expressed deep feelings that tariffs, quality of services, fraud and arbitrary charges continued to constrain benefits that could be derived from GSM economy. Yet GSM services can serve different purposes especially where it can be used to source agricultural information, crop and animal production practices and other sundry information which can be shared instantly by farmers who are connected on mobile service. Quality of GSM service has remained major problem in rural areas. There
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should be intervention at the level of government and service providers to improve utilization especially in the area of farming information system. Keywords: Farming occupation; Information System; GSM Services
1. Introduction also known for its major population and The advent of Global System for Mobile land tillage for crop production and Telecommunications services (GSM) in animal husbandry. Rural economy is a Nigeria revolutionised every aspect of very significant type for food security social and economic life in the last and food basket of the nation. At the fifteen years. The national statistics of same time, rural economy is the largest tele-density rose from 0.4% in 2000 to employer of labour that include male 107% in 2016 (Nigeria Communications and female, young and old who engaged Commission, 2016). Now there is hardly actively in agriculture. Despite the a household in Nigeria that does not importance of the rural economy, this connect each other on GSM sector of society appears sharply communication. It is not exaggerated to neglected by successive government state that old and young, male and policies which allow for rapid migration female, rich and poor are now connected of energetic youth seeking to benefit on mobile communication to interact, do from the urban sector where more than business and fix appointments for 75% of government investment appears religious, economic or political concentrated (World Bank, 2013). Also, meetings. The services of GSM have if is maintained that GSM services have created social bond among family wide coverage in Nigeria society, this members, friends and colleagues and the may appear an exaggeration if the once boundary of effective reality is compared in most rural areas communication has been broken to where real agricultural services take allow for more flexible information flow place. It is not an overstatement that which has economic, political and social many villages and towns in rural area do significance. Again, access to GSM is not have coverage of GSM services. not a determinant of urbanization. Similarly, where there are services of Interestingly, people in the rural area GSM, it is either that the service attest to widespread coverage of fluctuates rapidly or the willing users services which ensures that rural have to go mountains to search for dwellers are not cut from the grid of services (Micah &Okafor, 2013). electronic communication. It is a known Critically speaking, rural areas are fact that GSM operators erect naturally designed to nurture transmission base masts which in rural agriculture. There are fertile land areas allow for effective operation of cultivations that yield mass production service and uninterrupted of grains, tubers, fibers and cereals. At communication (Micah, 2014). This is a the same time, people that live in these regime of telecommunication that is areas desire to have access to services inclusive for all. that improve quality and also utilise the
Yet population of rural location is services for maximum satisfaction. significant for its agrarian and Studies have shown that GSM services agricultural productivity. This is the have varieties of benefits that cut across location where the bulk of food social to political, business, religion and production is carried out. Rural area is agriculture (World Bank, 2001; United
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Nations Development Programme social transformation especially in the [UNDP], 2009; Micah, 2014). Looking 21st century global society. Spore (2008) at the aspect of agriculture, it has been pointed that half of the world‟s 6.5 shown that GSM service provides billion now use a mobile phone and the access to information that educates Nigeria experience is significant farmers on crop yields, methods and (Nigeria Communication Commission, application to farming and interactive 2016). This is astronomical in the guide in modern farming. This is usually acceptance of the technology which has designed in the form of apps/application contributed immensely to social that can be accessed on phones that are development. In Africa, mobile phone sophisticated like android, iphones and business is the most rapid growing apple phones (UNDP, 2009). However, sector of the economy with over 250 it appears that there is little that can be million active subscribers (Scheen, achieved in the rural economy due to 2008; International Telecommunication poor coverage of GSM services. In Union [ITU], 2015). Yet there are now some rural areas, GSM subscribers most more than 500 million subscribers times climb mountains to search for connected to mobile communication mobile services. At the same time, the (NCC, 2016). Adogla (2009) argued that GSM masts erected in rural areas do not the annualized aggregate growth rate in function maximally to accommodate handset number was pegged at a healthy stable connection. It is also difficult for 58%, a figure that clearly propelled the rural farmers to operate sophisticated African cellular market to outperform phones like android, iphone and apple all others worldwide. This estimate has phone despite the usefulness this type of improved over the years as more users phones can serve to get agricultural now get connected due to relatively information. At same time, the cost of affordable prices of mobile phones the sophisticated phones may be out of (International Telecommunication reach to farmers due to high cost. Yet Union [ITU], 2015). In Nigeria, the agriculture is one of the mainstreams of introduction of GSM services in 2001 national economy that can potentially marked the positive contribution of reduce over reliance on importation of telecommunications to socio-economic food items which can be locally activities of the people. According to produced. This is the main focus of this Nigeria Communications Commission study. [NCC] (2012, 2016), the GSM industry
2. Objective of the Study empowered at least 84.3 million The main objective of the study was to subscribers and with an impressive tele- identify the level of access and density of 95.20. This estimate has utilization of GSM services in rural area gradually improved, now there is 98.7 and to mainstream the utilization for tele-density as at first quarter of 2017 agricultural development. This (NCC, 2017). In Ibadan for instance, significantly has major implication for more than 95% of the sampled food security and gross domestic respondents possessed GSM phones product. used for communication (Micah
3. Literature Review &Okafor, 2013). The breakdown of There is abundant fact to show subscribers revealed that contribution of GSM technology to telecommunications is dominated by GSM users (89%) and distantly 74 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 followed by Code Division Multiple several levels. The pervasiveness of Access system (CDMA) and fixed GSM has brought about rapid social, wired/wireless. Indeed, less than 10% of political and economic transformation, telecom subscribers in Ibadan were which has culminated in a network connected to CDMA (Micah &Okafor, society organized around ICT (Yusuf, 2013). Empowerment of citizens with 2005). Currently e-learning is becoming mobile phones has transformed one of the most means of using ICT to businesses and way of life in urban and provide agric information to farmers. rural areas of the country. The benefit Considering the role of agriculture in spread across different sectors of the national economy and the population economy-health, education, explosion that can be fed by agricultural communication, agriculture, industry, production, the use of ICT in the banking, wildlife and trade. teaching-learning process among In agriculture, the mobile phone holds farmers and the-will-be farmers the ace in the application of modern becomes imperative . This is true information communication because its adoption by the farmers will technologies (ICT) to disseminate enhance improved productivity. information and knowledge to farmers. Undoubtedly, ICT makes access to agric ICTs have the greatest potential to act as information more flexible and reduces a facilitator for specific development barriers of time and place in getting oriented programmes that are currently quick information by farmers to operational at grassroots in Nigeria improve farming system. In addition, (NCC, 2010). Access to ICTs provides communication technologies can also information on prices, markets, enhance the quality of agricultural technology and weather to the farmers. production where it is possible to access Community-based tele-centres have the information in modern farming. The potential to empower rural communities internet has emerged arguably the most and facilitate socio-economic visible component of the information developments in agriculture using and communication technologies (NCC, selected ICTs (e-mail, internet, phone, 2016). The rate of adoption of the radio, TV, print) to accelerate the wider internet exceeds that of all technologies delivery of appropriately packaged before it. Its uses comprise agricultural information and other communication, publishing and relevant information for the poor. In the research. fisheries sub-sector, mobile phones are Recently, information is recognised, as a used to coordinate fishing efforts prerequisite for empowerment (World (Adogla, 2009); product marketing, talk Bank, 2002, 2012) and participation by and to improve safety (Spore, 2008) as encouraging people to be active in the well as linking fishermen and development process, to contribute wholesalers together for business ideas, take initiative, articulate needs (Scheen, 2008). In addition, mobile and problems and assert their autonomy services can serve as sources to acquire (Ascroft and Masilela, 1994). ICT is the training skills for different types of latest in the series of continuing farming where it is possible for users to technological revolutions. A study connect GSM phones to access such conducted in Uganda demonstrated that information. The mobile phone farmers could use mobile phones to find communication benefits agriculture at 75 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 out the latest crop prices and in leads to a significant reduction in the Tanzania mobile phones helped farmers dispersion of fish prices across markets, to save travel time and cost (Adel, as well as a decline in waste. This led to 2005). Phones provide other uses as important welfare improvements for recording tools, listening devices, and both fishermen and consumers; catalysts for dialogue which as well fishermen‟s profits increased by three make relevant contribution to percent, consumer prices declined by agricultural development. Community four percent and consumer surplus radio stations are incorporating mobile increased by six percent. Aker (2008) in phone technology into programming for Niger found that the introduction of advisory services in agriculture mobile phones reduces dispersion of (Gakuru, Winters & Stepman, 2009; grain prices across markets by ten Micah and Okafor, 2013). percent. The effect is stronger for those
Many African countries Kenya, Malawi market pairs with higher transport costs, and Uganda, mobile banking is another namely; those farther apart and linked ICT-based service which has had a by poor quality roads. tremendous impact on the socio- Mobile phones are being integrated into economic status of farmers. It enables existing agricultural trading business farmers to send and receive money chiefly because of the crucial role they using their mobile phones (ITU, 2010). play in improving the exchange of Similarly, a study carried out in India supply and demand of information points towards the strong position of between farmers and buyers (Verheye, established commission agents and 2000). In Uganda, Martin and Abbott traders in local supply chains who are (2011) conclude that farmers used their the major price setters. Traders and phones for a range of farming activities, input dealers also provide an important to coordinate access to agricultural source of information particularly inputs (such as training, seeds or related to agricultural technology and pesticides) (87% of farmers), accessing techniques (Mittal, Gandhi & Tripathi, market information (70%), requesting 2010). Mobile phone usage has sharply agricultural emergency assistance increased and is projected to continue (57%), monitoring financial transactions among rural farmers. African farmers (54%) and consulting with expert advice use mobile phones to obtain information (52%). A study in Peru observes that the about agriculture issues (Gakuruet al., introduction of mobile pay phones in 2009). selected Peruvian villages had raised
Better access to agricultural information agricultural profitability by 19.5% by is expected to improve farm increasing the value that farmers productivity, reduce cost and also received for each kilogram of encourage market participation by agricultural production by 16% and farmers. Jensen (2007) and Aker (2008) reducing agricultural costs by 23.7% both exploit the staggered introduction (Beuermann, 2011). Therefore, the of mobile phone coverage to estimate contribution of GSM mobile services the impact of mobile phones on cannot be undermined in agricultural agricultural markets in developing sector. It is a major concern to check countries. Jensen (2007) finds that the how this contribution can be sustained expansion of mobile phone coverage especially in the case of rural farmers in
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Nigeria which will ultimately improve consisted of crop production, animal economic status of farmers. production and fisheries. Sample size
4. Theoretical Application was 800 respondents and this was The study adopted Robert Merton‟s statistically determined using Cochran‟s Manifest Functionalism to explain basic formula. The sample was derived from concepts. The central tenet of manifest population of farmers in the three functionalism is that an institution is locations of study (IDO, Akinyele and created for intended purpose to promote Egbeda) which were among major area unity, unify society and maintain stable of agriculture production in Ibadan. order. For example the manifestation of According to Oyo State Government family institution is to increase the estimate, the population of registered population of society through farmers in these areas was 2,950 reproduction and nurture individual in (Ministry of Agriculture, 2011). line with norms and values of the Therefore, the application of statistical society. This is to ensure that society formula yielded the sample result. The survives from generation to generation sampling techniques combined (Ritzer, 2011). Merton‟s purpose was to purposive, quota and accidental trace major function of each institution sampling. Purposive sampling was used and the role they played to keep to select locations of study which were cohesion of the society. Therefore, it areas that originally engaged in follows that GSM services not only agriculture such as Ido, Akinyele and design for telecommunication but such Egbeda residents. Quota sampling was communication can be achieved in used for sample distribution where different form. More importantly, GSM respondents selected in each community services now make it possible to get was based on the population percentage information on modern agricultural as contained in Oyo State population methods. It is no gainsay that GSM distribution for communities in the state. phones now contain apps for agriculture The State estimate showed that in Ido, method by which users have access to there were 1100 people who mainly information that can improve farm engaged in agriculture and registered yields in crops and animal production. farmers. There were also 868 registered Yet this can be achieved especially in farmers in Egbeda and 982 farmers in rural zone of agric base where GSM Akinyele area. Quota method using ratio services are stable and have wide of population size in each location was coverage. used for sample distribution in Ido, Egbada and Akinyele. 4. Methodology This study was conducted in the rural Accidental sampling, a non probability communities in Ibadan. This location is method was used to select respondents also called Less City (LC) area because who were drafted to fill the they are largely rural. Cross sectional questionnaire instrument. Similarly, survey was adopted. The study was method of data collection was descriptive and engaged detail field quantitative and qualitative. Whereas work. Population of the study consisted quantitative method generated data for of male and female respondents who the study in statistics, qualitative method were permanent residents and registered generated data in textual format. farmers. The categories of these farmers Questionnaire and in-depth interviews
77
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(IDIs) were used as instrument of data Egbeda and 4 respondents in Akinyele. collection. The questionnaire was A total of 13 IDIs were conducted. structured close ended and classified Method of data analysis was into sections which consisted of socio- quantitative and qualitative. Descriptive economic characteristics, access to statistics of quantitative method which GSM services and utilization of GSM consisted of tables, frequencies and services in rural community. In this percentage was sued. Qualitative case, 298 copies of questionnaire were method used ethnographic summaries distributed and retrieved in Ido and content analysis. Ethical community. There were 235 copies in consideration was upheld for this study Egbda and 268 copies distributed in where respondents were treated with Akinyele according to population ratio. confidentiality and anonymity, safety In-depth interviews were conducted in and security and consent sought prior to each of the locations and this consisted collection of data of 5 respondents in Ido, 4 respondents in
6. Data Analysis: Access and Utilization of GSM Services
Table 1: Distribution of Respondents by Access to GSM Services Questionnaire items Less City (LC) Frequency 100% LC= 800 Percentage Educational qualification No education 90 5.6 Primary school 4 0.3 Secondary education 245 15.3 OND/NCE 199 12.5 HND 93 5.8 B.Sc 116 7.3 Masters 51 3.2 PhD 2 0.3 I have ownership of GSM phone No 69 8.6 Yes 731 91.4 Years of connection to telecommunication e.g. GSM services 61 7.6 Not applicable 97 12.1 Less than one year 69 8.6 1-3 years 257 32.1 4-6 years 291 36.4 7-9 years 25 3.1 10 years and above Locations subscribers purchased SIM cards Not applicable 81 10.1 Telecommunications centre 161 20.1 Hawkers on the street 37 4.6 Mobile telecom bus 85 10.6 Market 144 18.0 Telecom dealers 277 34.6 Other locations 15 1.9 78 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
Numbers of GSM line(s) possessed Not applicable 74 9.3 One 230 28.8 Two 300 37.5 Three 177 22.1 Four 18 2.3 > four 1 0.1 Level of access to telecommunication before GSM services 227 28.4 Low 490 61.3 Moderate 83 10.4 High Level of access to telecommunication after GSM services 104 13.0 Low 459 57.4 Moderate 237 29.6 High Source: Field Survey, 2011
In the table above, educational respondents (8.6%) indicated that they qualification of respondents were did not have access to GSM phone as at shown. Except the 5.6% of the the time this study was conducted. Yet respondents who did not possess formal most of the respondents (91.4%) had education, other respondents had access to GSM phones which they primary education (0.3%), secondary utilized for mobile communication. This education (15.3%), certificate of statistics above is related to subsequent education/diploma (12.5%), Bachelor of report by NCC (2017) which shows Science (7.3%) or Higher Diploma continuous increase in the size of certificate (5.8%) and post graduate subscribers in Nigeria. education (3.5%) Master‟s and Ph.D Respondents were further asked to combined. The implication is that indicate the numbers of years they have despite the prevalence of western of been connected to telecommunication. education, some individuals still remain Specifically, only 3.1% said they had non-literate and this could affect their connectivity more than 10 years utilization of GSM technology which prior to the emergence of GSM phone. provides mobile services for However, 96.9% had access to communication. Notwithstanding, it is telecommunication after GSM services expected that there will be improved were launched in Nigeria and this figure utilization of GSM services when the represented total respondents in this percentage of literate respondents category except those that indicated combined (94.4%) is considered. The access more than 10 years. Respondents finding in table 1 above showed that in this study indicated that there are when respondents were asked whether various locations they could purchase they have access to GSM services or GSM SIM-CARD for connection and not, 91.4% indicated that they had communication. This includes telecom ownership of GSM phones which centre (20.1%), hawkers on the street enabled their access to mobile (4.6%), mobile telecom bus (10.6%), telecommunication services. Some market place (18.0%) and telecom
79 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 specialised dealers (34.6%).Similarly, successful. Most often there would some respondents indicated that they be call disruptions despite had access to one sim-card (28.8%), two covering long distances to access (37.5%), three (22.1%) or four (2.3%) those places. And if you were to sim-cards by which they accessed GSM connect someone outside the country, that is another story services for communication. Again entirely. But today people can call respondents were asked to indicate level any part of the world from the of access to telecommunication prior to comfort of their bedrooms. This is mobile phones. There were low as a result of access people have (28.4%), moderate (61.3%) and high towards GSM services (IDI/GSM (10.4) access. The level of access to Subscriber/Egbeda telecommunication after GSM services LG/Ibadan/2011). were launched also showed low Another respondent alluded very much (13.0%), moderate (57.4%) and high to this when he argued: (29.6%). The implication of the finding I have more than three GSM lines. is that access to telecommunication in This is not because I want to show the regime of mobile phones has soared off or that I am rich in my income. But I am just sick of poor network rapidly high and doubled. This can and arbitrary charges when you further be understood when some views try to connect other GSM services of respondents who were engaged in from your main network. For face to face interviews are considered. instance, my main network is A female respondent who was formerly MTN. Very often I don’t derive connected to NITEL before the satisfaction when I call other deregulation of the telecommunications networks. So for me to remain in sector relived her experience: constant link with my people that The access to GSM is very use other networks, I decided to encouraging. Now, people have acquire different GSM networks opportunities for stable (IDI/GSM subscriber/Ido communication. In the days of LG/Ibadan/2011). NITEL, we used to queue up at the It is obvious from the above views and phone booths in the NITEL experience that GSM services are now centres or other designated areas. widespread and access to this service cut You have to cover long distances across every nook and cranny of before you could access those call residents which enabled them to reach centres. It used to be very tasking family and friends, read Newspapers and time consuming. Sometimes if and access other vital information. you were lucky your calls may be
Table 2: Distribution of Respondents by Utilisation of GSM Services Questionnaire items Less City (LC) Frequency % LC=800 Patterns of utilization of GSM services Make call only 39 4.9 Receive call only 23 2.9 Make and receive call 145 18.1 Send and receive message 26 3.3 Browse internet 4 0.5
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Listen to radio and game 2 0.2 All of the above 561 70.1 Services of GSM mostly utilised Conduct business 90 11.3 Be in touch with families and friends 605 75.6 Make new friends 4 0.5 Browse internet 22 2.8 All of above 7 0.9 Others 72 9.0 GSM service is affordable in terms of recharge cards No 198 24.8 Yes 602 75.2 The frequency of recharging GSM services Daily 136 17.0 Weekly 523 65.4 Every two weeks 59 7.4 Monthly 77 9.6 Never 5 0.6 Numbers of phone calls received daily Less than five 274 34.3 Five and ten 412 51.5 Eleven and sixteen 76 9.5 Seventeen and above 38 4.8 Numbers of phone calls initiated daily Less than five 343 42.9 Five and ten 398 49.8 Eleven and sixteen 44 5.5 Seventeen and above 15 1.9 Level of utilization of GSM services Low 37 4.6 Moderate 230 28.8 High 533 66.6 Source: Field Survey, 2011
In table 2, respondents were asked to and browse internet (2.8%). indicate the pattern of utilisation of their Respondents (75.2%) indicated that GSM services. Some respondents GSM services were affordable and utilized their phones to make calls 24.8% said the price of the services (4.9%), receive calls (2.9%), make and were not affordable. Consequently, receive calls (18.1%) and to send and 17.0% said they frequently recharged receive message (3.3%). Others utilized their GSM services, 65.4% recharged GSM services to browse internet (0.5%) weekly, 7.4% recharged every two and listen to radio (0.2%). Whereas weeks and 9.6% recharged once in a 70.0% of the respondents utilized all of month. Similarly, 0.6% never recharged the above services on their mobiles their services. Although there is now phones. The services most utilized on improved rate at which subscribers mobile phones were to conduct business recharge their services for (11.3%), connect family and friends communication as shown in the survey (75.6%), to make new friends (0.5%) of NCC (2017), arbitrary charges,
81 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 activation of service subscribers do not (IDI/GSM ask for have continued to prevail in the subscriber/Akinyele/Ibadan/2011). sector. The fact that is obvious is that Another respondent said: most respondents eager to keep their I don’t make calls until there is services active which enabled them to urgent need to do it. I am poor. I connect regularly with family and can’t compare myself with people who earn fat salaries as friends and access important government employees. The little information. Therefore, 34.3% of the income from the farming is just to respondents could make less than five keep my family alive. Many times, I calls daily, 51.5% made between five don’t even bother calling friends and ten calls daily, 9.5% made between and families (IDI/GSM eleven and sixteen calls daily and 4.8% subscriber/Akinyele made above seventeen calls daily. At the LG/Farmer/2011). same time, 42.9% received below five Similarly, a male respondent calls daily, 49.8% received between five put in his view when he and ten calls daily, 5.5% received eleven said: and sixteen call daily and 1.9% received I use Globacom and MTN. The above seventeen calls daily. Overall, the services vary. I prefer MTN level of utilization of GSM services was because the network is relatively stable. Globacom has not been very low (4.6%), moderate (28.8%) and high stable for some times now. I use the (66.6%). two lines because the networks The implication is that there is cannot be bad at the same time. If widespread utilization of GSM services one is not good, you can use others. among respondents and this contributed Network is very unstable especially to socio-economic activities among during the period of promos and users. The high utilization of GSM bonanzas. The case in most rural services still persist among Nigerian communities here is that people sometimes climb mountains and users in the present year (NCC, 2016). trees to search network (IDI/GSM Although utilization was high, however subscriber/civil servant/Egbeda this was constrained by some factors LG/2011). which included tariffs, fake GSM A GSM subscriber explained: accessories and poor quality of network. Though the tariff is affordable, it is This problem was clearly affirmed in the outrageous. The charges are views of some respondents. A forty-year exorbitant… too much, compared old male respondent said: to other countries in the world. Deregulation of Citizens in this country are being telecommunications sector is a exploited by government. Though good decision by government. GSM there are infrastructural cannot be compared to NITEL of challenges, yet the charges are the past. When MTN and ECONET overburdened. Another area of (now Airtel) came, their prices concern is fake accessories sold by were high. Now everybody can come marketers. Now there are too afford to buy GSM line and phone many fake phones that do not last at cheaper and affordable prices. at all (IDI/GSM However, GSM tariff is high across Subscriber/Ido/GSM hawker/2011). networks. The tariff should be The problem stated above can have far reduced. Government should check reaching effect on stable utilization of the service providers on high tariffs GSM especially when it is considered in
82 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 terms of benefits to users in the rural Ilesanmi (2016). Therefore, to maximize area. It is rather unfortunate that the the benefits of GSM especially the rural problems identified in the above view context the following recommendations are yet to abate as revealed in national are suggested. survey by NCC (2016) i. The finding established that access 7. Conclusion and Recommendations to GSM services was widespread It is established that GSM services were among residents in the rural available in some of the rural communities studied. Yet quality communities where this study was of services was a major problem. conducted. The implication is that in This study recommends that most cases people who have access to service providers should intensify the services utilized the network to coverage of GSM network in rural connect family and friends, browse the communities to maximize the internet, listen to radio and read benefits. Newspapers on their GSM phones ii. Utilization of GSM services was which also provide access to widespread in the rural information in the area of agriculture. communities. However tariff Yet there were some communities in the regime was a major problem that study area that experienced incessant limited frequent use of the service. service failure or there was no trace of Thus challenge can be overcome GSM coverage. The implication is that where cost of services is subsidized these communities are denied the by government. The subsidy benefits of GSM services, people cannot should especially benefit farmers communicate family and friends in far who are connected to GSM and distance and there is barrier to access to utilize the service to get internet services where information on information on agriculture agricultural science abounds. Critically technology. This can be achieved speaking, most respondents in the study where there is reliable statistics of area have access to GSM services and real farmers to ensure that also utilized the service for various government effort actually reach purposes and in some cases to access this population. agricultural information. However, iii. Finding showed that significant services were not stable to maximize the proportion of rural population use. The farmers in the rural possessed post primary educational communities usually moved from one qualification and some did not location to another to search for service even have formal education. This and sometimes also climbed high suggests that some rural residents mountains to source service. This is a who are farmers cannot read, write major problem that impedes the benefits and communicate in Lingual of GSM services in most rural Franca. Yet GSM language is communities despite the vital role the programmed in English phonetics. technology plays in agriculture This study recommends that revolution. Yet the problem of poor government through its ministries, network connection and lack of departments and agencies should networks in the study areas persist. collaborate with GSM phone Network problem is regularly reported manufacturers to ensure that GSM by NCC (2016), Akindele (2016) and phones are compatible with the
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three national languages, Yoruba, other places in the South-West where Hausa, and Igbo. This will agricultural economy blossoms and the invariably ensure that mobile utilization of GSM services have been phones are user friendly to constrained. Further studies may expand maximize the use among rural the scope of coverage beyond rural residents who are majorly farmers. communities in Ibadan that could reveal
8. Limitation of the Study the importance of GSM services to This study covered agricultural agricultural development. communities in Ibadan. Yet there are
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June,. 2018
An Open Access Journal Available Online
Monetary Policy and Oil Revenue in Nigeria: Pre and Post Effect Analysis
Cordelia Onyinyechi Omodero1 & Christian N. Worlu PhD2
1Department of Accounting, College of Management Sciences, Michael Okpara, University of Agriculture, Umudike, P.M.B. 7267, Umuahia, Abia State, Nigeria. E-mail: [email protected]
2Department of Accountancy, School of Financial Studies, Port Harcourt Polytechnic, Rumuola, Port Harcourt, Rivers State, Nigeria. E-mail: [email protected].
Abstract:. The study investigated the effect of monetary policy on oil revenue in Nigeria taking into cognizance the particular effect of the switching from minimum rediscount rate (MRR) to monetary policy rate (MPR) which took effect from December 11, 2006. The time series data the study employed to examine the pre-adoption effect spanned from 1996 – 2005, while data for post- adoption effect covered the period from 2008 – 2017. The data were collected on Oil Revenue, Minimum Rediscount rate, Money supply (M2), Treasury bill rate, Exchange rate and Monetary Policy rate. All data were sourced from the Central Bank website and Statistical Bulletin, 2016. The OLS technique was employed in analyzing the data and the result indicated that both MRR and MPR had insignificant negative effect on ORV. Although when the pre-adoption investigation was carried out, MNS had significant positive impact on ORV but in the post-adoption test conducted, the result was significantly negative. It was an indication that MPR is not any better than the MRR. Therefore, the study recommends that more strict measures be taken by the Monetary Authority in the Country to review the baseline interest rate which helps to determine money supply. This will help to curtail the negative effect of money supply on oil revenue.
Keywords: Monetary policy, minimum rediscount rate, monetary policy rate, money supply, Oil Revenue. 87 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
1.0 Introduction to align with the prevailing monetary Monetary policy is a major tool used in conditions. The problem could be every nation‟s economy to checkmate attributed to the liquidity challenges the the flow of currency in order to prevent banking system encountered over the excess money in circulation. Central years which led to the ineffectiveness of Bank of Nigeria (2006) defined MRR in transmitting monetary policy in monetary policy as the definite Nigeria, hence the introduction of MPR arrangements a nation‟s Monetary on assumption that better monetary Authority uses in determining the worth policy result could be achieved (CBN, of money, its circulation and cost in the 2016). economy to ensure that the Therefore, this study is focused on government‟s macroeconomic examining the effect of selected objectives are achieved. monetary policy tools on oil revenue, In Nigeria, oil revenue contributes so both before and after the adoption of much to the nation‟s economy. Oil Monetary Policy Rate (MPR). The revenue is derived from the activities of specific objective will be to investigate oil and gas industries that operate in the effect of monetary policy measured Nigeria, through their oil pipeline by Minimum Rediscount Rate (MRR), license fees, royalty on oil extraction, Money Supply (MNS i.e. M2), Treasury rent on oil wells, gas flaring penalty, Bill Rate (TBR) and Exchange Rate sale of petroleum and gas (ATSWA, (EXR) on Oil Revenue (ORV) prior to 2009). Monetary policy affects all the adoption of MPR. facets of the nation‟s economy in terms The time series data to test the pre effect of spending responsibilities and revenue will be from 1996 to 2005. Secondly, sources (which oil revenue forms the the effect of monetary policy on oil major part of it). Invariably, changes in revenue will be investigated using the monetary policies pose the problem of Monetary Policy Rate, Money Supply, having either adverse or favourable Treasury Bill Rate and Exchange Rate effect on the economy at large. to determine the post effect after the Prior to 2007, Minimum Rediscount adoption of MPR. The time series data Rate (MRR) was a major monetary to test the post effect will be from 2008 policy tool the Central Bank of Nigeria to 2017. Central Bank has a good used in determining the lending rate to number of monetary policy instruments, other banks. The introduction and but the ones selected for this study adoption of Monetary Policy Rate influence oil revenue in Nigeria directly (MPR) which served as the replacement and are relevant to the study. for MRR took effect from December 11, 1.2 Hypotheses. 2006 (CBN, 2006). Ho1: Monetary policy measured by
CBN made use of MRR to anchor short MRR, MNS, TBR and EXR do not have term interest rate in the financial system significant impact on Oil Revenue in in Nigeria. MRR was design to give Nigeria (ORV). direction to interest rate and monetary Ho2: Monetary policy measured by policy, yet it failed to achieve the MPR, MNS, TBR and EXR do not significantly influence ORV in Nigeria. objectives despite several adjustments made to it between 1999 and 2005 by 2.1 Conceptual framework. the Monetary Policy Committee (MPC) 88 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
This figures below depict how monetary policy affects oil revenue.
Figure 2.1: The effect of monetary policy on oil revenue.
Minimum Rediscount Rate/ Monetary Policy Rate
Oil Money Supply (M2) Revenue
Treasury Bills Rate
Exchange Rate
Source: Desk Research, 2018.
2.1.1 Monetary policy. & Palesa (2014), monetary policy Monetary policy denotes any deliberate objective is also to sustain balance of action or conscious effort made by the payment equilibrium, ensure price Central Banks or Monetary Authorities stability and promote economic growth. of a nation to control the quantity, 2.1.2 Money supply (MSS). availability or cost of money in an Money is anything of value that is economy with the view of achieving set generally acceptable by the public for goals (CBN, 2016). From the above the purpose of making transactions and definition, monetary policy can be settling debts. It is beyond just currency described as a blend of methods and (notes or coins) but includes other things integrated procedures used by Central used for transactions (CBN, 2016). Banks to normalize the value and Therefore, money supply is the sum of quantity of money in circulation in an all money or monetary assets that can be economy while making sure the desired easily converted to cash at a specific level of economic activity is maintained. time period in an economy. According The effort to regulate money cost and to CBN (2011), it the amount of money availability by Monetary Authorities of that is available to the economy at any nations is an attempt to curb the point in time. In Nigeria, it is measured problem of inflation. Other by: macroeconomic objectives monetary 1). Monetary base (that is cash policy is designed to achieve includes: reserves Deposit Money Banks low unemployment, high output growth (DMBs) have with CBN; rate and stable exchange rate (Musa, 2). Narrow money (that is all Usman & Zoramawa, 2014; Omitogun currencies in circulation and & Ayinla, 2007). As opined by Chipota 89 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
demand deposits) which fluctuating. Fixed exchange rates are households and businesses have decided by Monetary Authority of a with DMBs; nation while the floating exchange rates 3). Broad money (M2) which are determined by the market forces of comprises narrow money, time demand and supply (TET, 2018).
deposits and saving deposits with 2.1.5 Treasury bills rate (TBR). DBMs (CBN, 2016). Treasury bills are temporary currency 2.1.3 Monetary policy and oil revenue. market securities issued by government The receipts from crude oil sales form a with maturities of one year or less. major part of government revenue. The They are disposed at a discount and receipts are in USD and it takes the mature within 3 to 12 months from the CBN to convert them to Naira before date of issue. The bills serve as the transferring same to the federation benchmark risk-free instrument in the account for allocation to the three tiers money market as they are guaranteed by of the government and others. This government. They afford the monetization of crude oil receipts in government with a vastly supple and USD affects money supply and of moderately economical means of course exchange rate plays a major role borrowing money, and are issued too. Exchange rate of the naira through a competitive bid auction determines the worth of a particular (CBN, 2013). Treasury bill rates are receipt from crude oil sales in naira. If market determined following interest naira appreciates, it means the receipt rate deregulation in Nigeria. from oil revenue shared will fall, while 2.1.6 Minimum rediscount rate reverse is the case when naira (MRR). depreciates. The CBN through its MRR is the formal and authorized monetary policy employs all strategies interest rate of the CBN, which helps all to ensure that the shared revenue does other financial institutions in the country not trigger inflation due to the to determine the rate of interest at which possibility of having excess money facilities should be given to the firms supply. Therefore money supply is put and individuals (CBN, 2006). The under strict check to avoid excess flow decision of CBN on the MRR affects the of money in the economy (CBN, 2016). level of economic activities and prices 2.1.4 Exchange rate (EXR). in the country through a number of Exchange rate is the amount at which a channels. Whenever CBN comes up country‟s currency can be given in with a decision to change MRR, market exchange with another nation‟s interest rate is affected in diverse ways. currency. In other words it is the For instance, financial assets such as proportion of an individual currency in stocks and exchange rates will be relation to an alternative legal tender affected thereby influencing the (The Economic Times (TET), 2018). expectations of people and economic Exchange rate targeting signifies the agents. People are encouraged to save setting of the cost of a national currency whenever the interest rate increases, in relation to an alternative legal tender foreigners spend extra cash in with little inflationary effect. It helps to purchasing the domestic currency and as keep inflation under control (CBN, a result the prices of foreign goods are 2011). Exchange rates may be static or reduced (CBN, 2006).
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2.1.7 Monetary policy rate (MPR). ultimately increase aggregate money MPR is the baseline interest rate set by demand and expand output. the Central Bank on which every other 2.3 Empirical review interest anchors on (Duffy, 2017). In Syed, Faisal, and Nasir (2011) studied Nigeria, MPR was used to replace MRR the comparative effect of fiscal, for a more effective monetary policy monetary and trade policy on the result. The MPR controls the amount of economy of Pakistan using co- money in circulation at any given time. integration and time error correction When it increases, money supply model. The study made use of time shrinks, and expands when it is reduced. series date that covered a period from The prevailing economic condition of a 1981 to 2009. Money supply, nation must be carefully studied and government expenditure and trade considered by the Central Bank before a openness were used to measure particular monetary policy measure is monetary, fiscal and trade policy applied (Duffy, 2017). respectively. The study focused on 2.2 Theoretical Review. evaluating the conflict concerning the 2.2.1 The Monetarist View of relative relevance and effectiveness of Monetary Policy three policies (monetary, fiscal and The monetarist view of monetary policy trade) in Pakistan. The co-integration is modern school of thought in monetary result proved that both monetary and policy developed by Friedman and fiscal policy had significant and positive Schwartz (1963). This school of effect on the economy while trade thought is different from the classical policy effect is insignificant. Although, macroeconomics, but a relevant version the coefficient of monetary policy was of the quantity theory of money which greater than the fiscal policy which focused on the supply of money as the suggested that monetary policy had key factor affecting the well-being of a more impact on economic growth than nation‟s economy. The view fiscal policy in Pakistan. The encourages effective monetary policy implication of the study is that the which is capable of stabilizing an policy makers should focus more on economy. Friedman and Schwartz monetary policy than fiscal to improve (1963) believes that the sustenance of a economic growth. The role of fiscal steady economic growth rate depends on policy may be more effective for the growth of money supply at fixed augmenting economic growth by interest rate (e.g. monetary policy rate) eradicating graft, revenue leakages and which should not be altered by the improper use of resources. However, the monetary policy regulatory authority study recommended a suitable blend and (Central Banks of nations). Friedman synchronization of both monetary and equally argued that since money supply fiscal policy. However, this study failed might be demanded for reasons other to investigate the effect of other than estimated transactions, it can be monetary and fiscal policy tools on the held in various forms such as money, economy for a better comparison. bonds, equities, physical goods and Chipote and Palesa (2014) used human capital. Each form of this wealth Johansen Co-integration and the Error has a unique characteristic of its own Correction Mechanism to investigate the and a different yield. These effects will impact of monetary policy on economic
91 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018 growth in South Africa. The study on the economy of Nigeria using time covered a period from 2000 to 2010. series data from 1996 to 2016. The predictor variables employed were Monetary policy in Nigeria determine money supply, repo rate, consumer price the amount of credit available to the index and exchange rate while the private sector and broad money supply dependent was gross domestic product that could be in equilibrium with the (GDP). The result of the study showed level of economic activities in the an evidence of a long run relationship country. The study made use of broad among the variables. However, the money supply (M2) and credit to private findings revealed that money supply, sector (CPS) to measure monetary repo rate and exchange rate had policy while the response variable was insignificant impact on GDP while the the gross domestic product (GDP). The influence inflation exerted was findings from the regression analysis significant. The policy implication is revealed that both the money supply and that inflation is caused by excess money the credit to private sector had no supply and monetary policy of a nation impact on the economy. The result is an should be able to put inflation under indication that, though monetary policy control to avoid negative effect on the is meant to improve the economy economy. through credit availability at low interest
Musa, Usman, and Zoramawa (2014) rates to private sectors, but in Nigeria, analyzed the long and short run business are strangled due to high interest rates. relationship between money supply and revenues in Nigeria. The study Srithilat and Sun (2017) investigated the employed co-integration approach using impact of monetary policy on economic too different functional forms, one development of Lao People‟s showing the effect of money supply on Democratic Republic (PDR) using revenue and the other depicting the annual time series data from 1989 to effect of revenue on money supply. The 2016. The problem of high fluctuation study made use of time series data from of inflation and dollarization became a 1970 to 2010. When money supply was usual phenomenon following the change made the dependent variable, the result in policy from centrally planned indicated that government revenue had a economy to market oriented economy in positive and significant impact on 1986. Therefore, monetary policy in money supply. On the contrary, when Lao PDR faced a lot of constraint which government revenue was made the made it incomplete and ineffective. The response variable, the result revealed no study made use of Johansen Co- evidence of an existence of a long run integration and Error Correction Model relationship between money supply and to analyze the effect of money supply, revenues comprising both oil and non- interest rate, inflation and exchange rate oil. The study concluded that on the real GDP per capita. The government revenue (both oil and non- findings revealed that exchange rate had oil) drives money supply in Nigeria, a positive effect, while the other which in turn helps to improve the predictor variables had negative effect economy. on the real GDP per capita.
Ekwe, Amah, and Omodero (2017) examined the impact of monetary policy
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2.4 Gap in literature. This research is focused on the effect of Syed et al. (2011) investigated the monetary policy on oil revenue in comparative effect of fiscal, monetary Nigeria with particular emphasis on the and trade policy on the economy of pre and post effect of the monetary Pakistan. The study used only money policy changes in Nigeria. The study supply to measure the effect of wishes to examine the effect of MRR monetary policy, but failed to put into and other selected monetary policy consideration, the effect of interest rates instruments on oil revenue before the which directly affects money supply adoption of MPR, then, thereafter the (Duffy, 2017). Although, the study of effect of MPR in conjunction with other Syed et al. (2011) found evidence that tools since after the adoption. This is monetary policy in Pakistan has the existing gap the present study is significant positive effect on the planned to fill which none of the studies economy, on the contrary, the study of reviewed above considered.
Chipota and Palesa (2014) carried out in 3. Model Specification. South Africa found a conflicting This study wishes to investigate the evidence that monetary policy effect of monetary policy on Oil insignificantly influence GDP. Revenue in Nigeria before and after the Musa et al. (2014) focused on the effect adoption of MPR. The research design of monetary policy on government for this study is the ex-post facto, since revenue and vice versa. The findings it is based on historical data. The study revealed that monetary policy did not covers a period from 1996 to 2005 have positive relationship with which is prior to the adoption of MPR government revenue when used as the and the post adoption period from 2008 predictor variable. to 2017. The time series data have been
The study of Ekwe et al. (2017) revealed gathered from the CBN website and statistical bulletin. that monetary policy exerted negative influence on GDP. This is supported by To achieve the objective of this study, the study of Srithilat and Sun (2017) the econometric model adopted is as where the findings revealed that all the follows: monetary policy tools (money supply, ORV = f (MRR, MNS, TBR, & EXR) interest rate and inflation) used had ……………………… (1) negative effect on GDP except exchange The categorical form of equation (1) rate which exerted positive effect on above is symbolized as follows: GDP. ORV = ∝ + β1MRR + β2MNS +
β3TBR + β4EXR + µ Where: ORV = Oil Revenue MRR = Minimum Rediscount Rate MNS = Money Supply (M2) TBR = Treasury Bill Rate EXR = Exchange Rate β (1-4) = Coefficient of independent variables µ = The Error Term
ORV =f (MRR, MNS, TBR, & EXR) ………………… (2) 93 Covenant Journal of Business & Social Sciences (CJBSS) Vol. 9 No.1, June, 2018
The explicit form of equation (2) above is denoted as follows: ORV = ∝ + β1MPR + β2MNS + β3TBR + β4EXR + µ Where: ORV = Oil Revenue MPR = Monetary Policy Rate MNS = Money Supply TBR = Treasury Bill Rate EXR = Exchange Rate β (1-4) = Coefficient of independent variables µ = The Error Term
4.0 Results and interpretations. the same manner, the post effect is The result of the study is presented in shown on tables 4-6, which is when the six (6) different tables. Tables 1-3 monetary policy rate became operational depict the effect of selected monetary as the baseline interest rate by the policy tools on oil revenue prior to the Central Bank of Nigeria. introduction of monetary policy rate. In
Table 4.1: Model Summary – Pre Effect.
Mod R R Square Adjusted R Std. Error of Durbin- el Square the Estimate Watson 1 .993 .987 .976 .06198372 2.355 a. Predictors: (Constant), EXR, TBR, MNS, MRR b. Dependent Variable: ORV Source: Authors‟ Computation, 2018.
Table 4.1 presents a result summary of MNS, TBR, & EXR) variables. The R2 regression model generated from the value of 98.7% connotes that only 1.3% relationship between ORV and the of the changes in ORV cannot be predictor variables (MRR, MNS, TBR, explained by the input variables & EXR) in Nigeria. The R value which captured in the model. The Durbin- is 99.3% represents a strong positive Watson of 2.355 is within the acceptable relationship between the dependent limit, showing existence of no auto (ORV) and the independent (MRR, correlation.
Table 4.2: ANOVA – Pre Effect.
Model Sum of Df Mean F-test Significance Squares Square level. 1 Regression 1.432 4 .358 93.189 .000 Residual .019 5 .004
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Total 1.451 9 a. Dependent Variable: ORV b. Predictors: (Constant), EXR, TBR, MNS, MRR
The joint result reflected by F-test value in Nigeria. The result also signifies that of 93.189 (p-value = 0.000 < 0.05) the model is a good fit and statistically indicates that, the explanatory variables significant at 95% level of confidence. jointly influence the oil revenue (ORV)
Table 4.3: coefficients – Pre Effect.
Model Unstandardized Standardized T-test Significance Coefficients Coefficients level. B Std. Error Beta 1 (Constant) 4.140 .890 4.653 .006 MRR -1.654 .794 -.230 -2.082 .092 MNS .851 .114 .674 7.492 .001 TBR -.307 .382 -.088 -.803 .458 EXR -.660 .146 -.400 -4.538 .006 a. Dependent Variable: ORV
Source: Authors‟ Computation, 2018. The table 4.3 above, showed the result on ORV. Considering the results that of the individual performance of the emerged under the pre-effect condition, predictor variables as they affect the oil the Ho1 is accepted in the case of MRR, revenue. The result reveals that MRR TBR, and EXR but is rejected in the (p-value = 0.09 > 0.05; t-test = -2.082) case of MNS. These findings agreed and TBR (p-value = 0.46 > 0.05; t-test = with Syed et al. (2011) who found that -0.803) have insignificant negative money supply had positive influence on effect on ORV. The result also shows economic growth in Pakistan. On the that EXR has a significant negative contrary, the findings of (Musa et al., influence (p-value = 0.00 < 0.05; t-test = 2014; Ekwe et al., 2017) disagreed with -4.538) on ORV. On the contrast, MNS this result because using money supply exerts significant and positive influence as a predictor variable, the result was (p-value = 0.00 < 0.05; t-test = 7.492) negative both in relationship and impact.
Table 4.4: Model Summary – Post Effect
Model R R Square Adjusted R Std. Error of Durbin- Square the Estimate Watson 1 .956 .914 .845 .12062285 2.460 a. Predictors: (Constant), EXR, MPR, MNS, TBR b. Dependent Variable: ORV
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Source: Authors‟ Computation, 2018.
The result on table 4.4 shows that R is is predictable from the predictor 95.6% which indicates the existence of a variables (MPR, MNS, TBR, and EXR). very strong and positive relationship The result revealed that only 8.6% between the ORV and the input variations of ORV in Nigeria are not variables (MPR, MNS, TBR, and EXR). explained by the model used in this The coefficient of determination study. The Durbin-Watson of 2.460 (denoted by R2) is equal to 91.4%, indicates there is no auto correlation to implying that the proportion of the show concern for. variance in the response variable (ORV)
Table 4.5: ANOVA – Post Effect
Model Sum of Df Mean F-test Significance Squares Square level. 1 Regression .769 4 .192 13.222 .007 Residual .073 5 .015 Total .842 9 a. Dependent Variable: ORV b. Predictors: (Constant), EXR, MPR, MNS, TBR Source: Authors‟ Computation, 2018.
The pool result represented by F-test is analysis model applied for the study 13.222 (p-value = 0.007 < 0.05). This predicts the changes in the ORV shows that MPR, MNS, TBR and EXR significantly well at 5% level of jointly and significantly influence ORV. significance. It also indicates that the regression
Table 4.6: Coefficients – Post Effect.
Model Unstandardized Standardized T-test Significance Coefficients Coefficients level. B Std. Error Beta 1 (Constant) 5.003 2.124 2.355 .065 MPR -1.453 .957 -.635 -1.518 .190 MNS -2.371 .372 -1.277 -6.373 .001 TBR 1.818 .683 1.071 2.659 .045 EXR 4.058 1.187 .634 3.418 .019 a. Dependent Variable: ORV
Source: Authors‟ Computation, 2018.
96 From table 4.6 above, MPR has an Friedman and Schwartz (1963) believed insignificant negative influence on ORV that the sustenance of a stable economic (p-value = 0.19 > 0.05; t-test = -1.518). growth rate hinges on the growth of The MNS equally has a significant money supply at a fixed interest rate negative effect on ORV (p-value = 0.00 (e.g. monetary policy rate) which should < 0.05; t-test = -6.373). On the contrast, not be varied by the Central Banks of both TBR and EXR significantly and nations. The expectation of the CBN is positively impact on ORV (p-value = to see a better monetary policy result 0.045 < 0.05; t-test = 2.659 and 0.019 < emanating from the change from MRR 0.05; t-test = 3.418 respectively). From to MPR (CBN, 2016). From the the result on table 4.6, the Ho2 is regression result of this present study, accepted in MPR and MNS while it has the original aim is really far-fetched, been rejected in TBR and EXR. These unless there could be some other results are in agreement with the measures in the future to realize the findings of Srithilat and Sun (2017) who objectives. examined the impact of monetary policy 5.0 Recommendation and conclusion. on economic development of Lao PDR The findings of this study is something and found evidence that money supply, that deserves a critical attention. interest rate and inflation had negative Perhaps the Monetary Authority in the influence on GDP except exchange rate country will consider it wise to review that showed positive effect on GDP. the MPR and come up with 4.2 Discussion on findings. improvement to drive the economy The common characteristics among the better. Stability of exchange and results of this study is that both the interest rates is very crucial and Minimum Rediscount Rate (MRR) and important since the oil revenue that goes the replacement which is the Monetary to the Federation account for sharing Policy Rate (MPR) do not have positive (CBN, 2016) drives money supply in the influence on Oil Revenue (ORV). The country (Musa et al., 2017). From the results indicated that both of them had view of Friedman and Schwartz (1963), insignificant negative impact on oil the Central Bank of Nigeria should revenue which represents over 70% of design monetary policies that could the government revenue in Nigeria. sustain growth of money supply at a According to Duffy (2017), more favourable fixed interest rate increase/decrease in interest rates, which will help the country have a affects money supply directly. The stable economic growth. monetarist view of monetary policy by
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