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Open Access
Article
Publication date: 7 April 2020

Abiola Ayopo Babajide, Adedoyin Isola Lawal, Lanre Olaolu Amodu, Abiola John Asaleye, Olabanji Olukayode Ewetan, Felicia Omowunmi Olokoyo and Oluwatoyin Augustina Matthew

The unhealthy drive for deposit in the banking sector has pushed many banks into unethical practices, thereby resulting in high-level corruption cases in the banking sector. The…

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Abstract

Purpose

The unhealthy drive for deposit in the banking sector has pushed many banks into unethical practices, thereby resulting in high-level corruption cases in the banking sector. The purpose of this study is to investigate the short- and long-run linkages between bank net interest income and deposit liabilities interacted with corruption, to establish the influence of corruption in deposit mobilisation drive of banks in Nigeria. Also, the study analysed the causal relationship between selected bank variables and fraud.

Design/methodology/approach

The study used quarterly data on selected variables from 1Q 1993 to 4Q 2017 sourced from Nigerian Deposit Insurance Corporation (NDIC) annual reports and Central Bank of Nigeria (CBN) Statistical Bulletin of various issues. Deposit Money Bank various deposit liabilities are interacted with a corruption index and used as the independent variables, while bank earnings serve as the dependent variable. Error Correction Model (ECM) and Engel Granger approach to co-integration technique were used to analyse the data.

Findings

The findings reveal that various bank deposit liabilities interacted with corruption index has a negative effect on bank profitability in the long run, though only corrupt fixed deposit is statistically significant at the 5 per cent significance level. Bank total asset, total loan and advances and fraud have a significant effect on bank profitability at 1 and 10 per cent significance level. The findings also reveal that banks profit from corrupt fixed deposit and demand deposit in the short run.

Social implications

Text

Originality/value

The literature is awash with bank lending corruption and various institutional factors such as competition among banks, credit bureau and information sharing about borrowers, bank supervisory policies, loan loss provisioning, bank ownership structure and regulatory environment and anti-corruption measures. The aspect of deposit mobilisation and corruption has not been well researched in literature; this study, therefore, fills the gap in the literature by examining the extent deposit money banks contributed to corruption in Nigeria through their cutthroat deposit mobilisation drive.

Details

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

Keywords

Article
Publication date: 2 June 2022

Abiola John Asaleye, Abiola Ayopo Babajide, Henry Inegbedion, Damilola Felix Eluyela, Adedoyin Isola Lawal and Rotdelmwa Filibus Maimako

The issues of ineffective accountability have affected the performance of banks, which led the Nigerian government to introduce various reforms and policies. However, despite…

Abstract

Purpose

The issues of ineffective accountability have affected the performance of banks, which led the Nigerian government to introduce various reforms and policies. However, despite these attempts, the Nigerian banking sector experiences setbacks due to mismanagement of funds, fraudulent activities and lack of proper accountability, which negatively affects employment and income.

Design/methodology/approach

The dynamic least square was employed to investigate the selected indicators of Nigerian banks’ accountability, income and employment. Likewise, the study examined the causal effect using the Granger non-causality approach.

Findings

In the income equation, the total amount of fraud, deposit, total bank asset has a negative relationship with the income, while loan advance and operating expense depicted a positive relationship. In the employment equation, demand deposit, operating cost and bank total asset practices negatively affect employment. In contrast, loan advances and saving deposits have a positive relationship with employment in the long run.

Practical implications

Based on the findings, this study suggests, among others, the need for long-term systematic policies and reforms to improve the level of accountability in the Nigerian banking sector.

Originality/value

To the best of our knowledge, empirical studies examining the nexus between employment and accountability in the banking sector remain scarce in the literature. Therefore, this study examines the causality and long-run relationship between accountability and employment in Nigerian Banks.

Details

Journal of Accounting in Emerging Economies, vol. 13 no. 2
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 13 May 2020

Abiola John Asaleye, Philip O. Alege, Adedoyin Isola Lawal, Olabisi Popoola and Adeyemi A. Ogundipe

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate…

Abstract

Purpose

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate the relationship between cash crop financing and agricultural performance in Nigeria.

Design/methodology

Four crops were considered, namely, cotton, cocoa, groundnut and palm oil. The impact of cash crop finance shock on agricultural performance was investigated using the vector error correction model (VECM), while the long-run relationship was examined through the identification of long-run restrictions on the VECM.

Findings

The variance decomposition showed that financing shock is more sensitive to cause variation in aggregate employment than aggregate agricultural output in palm oil, while for cocoa, cotton and groundnut showed otherwise. The long-run structural equations exert a positive relationship between cash crop financing and agricultural performance, except for oil palm and cocoa financing that has a negative connection with agrarian employment.

Research limitations/implications

The study is limited to the unavailability of data for agriculture sector capital utilisation, which was not used.

Practical implications

These results show that long-run benefit can be maximised by appropriate funding in cotton and groundnut production to promote sustainable growth.

Originality/value

The study examines the impact of cash crop financing on agricultural performance with the aim to promote sustainable growth in Nigeria using identified VECM.

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Abstract

Details

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

Book part
Publication date: 13 May 2019

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

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

Abstract

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

Details

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

Keywords

Content available
Book part
Publication date: 13 May 2019

Abstract

Details

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

Content available
Book part
Publication date: 2 September 2019

Abstract

Details

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

Article
Publication date: 26 August 2020

Evans S. Osabuohien

Abstract

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

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