Nigerian Commercial Banks Research Articles

Leadership Succession and Strategic Change in Nigerian Commercial Banks

The relationship between leadership succession and strategic change is generally examined. However, more needs to be covered in the area. The paper proposed to provide a framework that will examine the relationship between leadership succession and strategic change in the Nigerian Banking sector. The model will help to a better understanding of the direct relationship between leadership succession and strategic change, hence, regulatory agencies, shareholders and board members, as well as management team will benefit from the study outcome.

Testing for Competition in the Nigerian Commercial Banking Sector

The study determined the degree of competition in the banking sector between 1990 and 2009 using Panzar and Rosse (PR) methodology. The data for the study were obtained from the annual reports and statement of accounts of fifteen commercial banks in Nigeria which were purposively selected for the study. The data collected were analysed using dynamic panel generalised method of moment estimation technique with fixed effect. The results of the analysis showed that the Nigerian commercial banks were characterised by monopolistic competition with H-statistic significantly different from zero for all sample periods and sub-sample periods. The value of H-statistic ranged between 0.0925 and 0.1168. The study concluded that the banking industry in Nigeria exhibited monopolistic competition which supports the results obtained from previous studies in the developed economies.

Corporate governance compliance and its effectiveness in the Nigerian banking industry

This paper examines the extent of compliance to the Central Bank of Nigeria (CBN) 2006 Corporate Governance Code by 24 Nigerian commercial banks and reveals a compliance level of 76.6%. The major non-compliance areas include non-constitution of a board committee consisting of non-executive directors, that regulates the compensation for executive directors, and the non-inclusion of independent directors on the main boards of many banks. Furthermore, the analysis shows that the benefits resulting from the changes for compliance outweigh the additional layers of supervisory checks and bureaucratic overbearing associated with the Code. The Code has brought about more effective corporate governance, accountability and greater transparency despite a low frequency of supervision and examination of the banks by the CBN.

An Exploration of the Relationship between Technostress, Employee Engagement and Job Design from the Nigerian Banking Employee’s Perspective

The introduction of technology in the banking sector has induced benefits to this sector. ICTs has facilitated the delivery of efficient and reliable banking services. Despite all the benefits associated with the use of technology, organizational researchers have argued that technology is a double-edged sword because its ability to induce stress in its users, this kind of anxiety is technostress, a strain that is caused by the lack of knowledge of individuals to cope and adapt to the use of technologies. The increasing use of technologies has resulted in work-family conflict, role-overload, work-overload, and multi-tasking. Additionally, technologies have resulted in consistent task reengineering, which has created knowledge gaps for employees. Past studies on technostress have demonstrated that can affect employees, performances, organizational commitment, and job satisfaction. However, the association of technostress with employee engagement and job design has not been established. Hence, the objective of this current study is to explore the association of job design with technostress and employee and the impact of technostress on employee engagement. Using a purposive sampling method, a total of 319 Participants were recruited from front desk employees of the Nigerian commercial banks and data has been analyzed using smart PLS. The findings of the study show a significant positive relationship between job design and technostress and positive relationship between technostress and employee engagement contrary to the negative relationship proposed based on the stress and engagement literature is an indication that job design alone may not reduce the impact of technostress if other organizational-stressors are not addressed. While technostress does not reduce employee engagement instead a moderate level of stress can serve as a motivator, but extreme stress can have a damaging impact on employees and the organization. Equally, the study also found a positive association between job design and employee engagement, while technostress has a mediating effect on job design and employee engagement.

Why Nigerian Banks Appear to Have Lost Their Way

Many Nigerian commercial banks have focused on attempting to create long term value from a commoditised business. This point of view provides a guide to help their cause.

Leadership Self-efficacy and Managerial Job Performance in Nigerian Commercial Banks

The objectives of this study is to examine the relashionship between leadership self efficacy and managerial job performance in the Nigerian commercial banks. Data was collected among the branch managers of the banks. A total of four hundred and thirteen responces were used for analysis. SPSS software for windows version 16 was used to conduct a factor analysis, reliability test and the correlations analysis. The result shows that leadership self efficacy is related to managerial job performance.

Human resources development in Nigerian commercial banks: An empirical investigatio

Article history: Received October 18, 2011 Received in Revised form February, 2, 2012 Accepted 28 March 2012 Available online April 7 2012 Human resources development is one of the management functions that are aimed at maximizing the return on the investments. It is a combination of training and education that ensure continual improvement and growth of all stakeholders. The growth witnessed in banking sector of Nigeria has been attributed to many factors among which are the human resources available. The influx of human resources into the banking sector from different disciplines and observed restrictions on employees have necessitated the need for human resources development. Therefore, an attempt is made with this research to investigate the human resources development situation in the sector, with a study of one thousand employees of different commercial banks selected, randomly. Data was collected with a well structured questionnaire and analyzed using descriptive statistics. Hypotheses formulated were tested with t-test and the result shows that manpower from different disciplines are employed in Nigerian banking sector, the sectors has absorbed many from labour market, the new entrants are trained at inception, an average employee in commercial bank hardly has time for personal development effort. © 2012 Growing Science Ltd. All rights reserved.

The Influence of Affective Commitment on Citizenship Behavior and Intention to Quit among Commercial Banks’ Employees in Nigeria

The purpose of this study was to investigate the influence of affective commitment on discretionary work behaviour and intention to quit among employees in selected post-consolidation Nigerian commercial banks. Using the quantitative approach, data were collected through a structured questionnaire administered to full-time employees of eight Nigerian post-consolidation era commercial banks out of which 303 were returned. The research results, based on respondents’ perceptions, revealed that affective commitment had a statistically significant relationship with organizational citizenship behavior and voluntary turnover intentions. The practical organizational and managerial implications of the results were discussed.

Human Resource Development Climate and Employee Commitment in Recapitalized Nigerian Banks

This study was undertaken to measure employees’ perception of their affective, normative and continuance commitment in relation to the prevailing developmental climate within the Nigerian banking sector in the context of reforms and change. The sample comprised 303 employees of selected recapitalized Nigerian commercial banks. Data for the study were gathered through self-administered questionnaire. The data collected were subjected to appropriate statistical analysis using the Statistical Package for Social Scientists (SPSS) to produce the mean, standard deviation, variance and Pearson product moment correlation coefficient of variables. The formulated hypothesis was tested at 0.01 level of significance and the result of statistical analysis indicated the existence of positive relationship between HRD climate and Organizational Commitment.

Effects of merger and acquisition on the performance of selected Commercial Banks in Nigeria

The paper examined the effects of merger and acquisition on the performance of selected commercial banks in Nigeria with greater emphasis on gross earnings, profit after tax and deposit profile as financial efficiency parameters. For this paper, seven Nigerian commercial banks were selected using convenience and judgmental sample selection methods. Data were collected from the published annual report and accounts of the selected banks and were subsequently analyzed appling regression analysis through statistical package for social sciences. The results showed that post merger and acquisition period was more financially improved than the pre merger and acquisition period.Therefore, the study recommended that banks should be more proactive in driving for profit for enhanced financial performance to reap the benefit of mergers and acquisition bid in the Nigeria banking sector.

Human Resource Development Climate as a Predictor of Citizenship Behaviour and Voluntary Turnover Intentions in the Banking Sector

This study aims to examine the relationships among human resource development climate (HRDC), organisational citizenship behaviour (OCB) and voluntary turnover intentions (VTI) in the banking sector. Questionnaires were distributed to working adults in Nigerian commercial banks to guage the employees’ individual perception, and thus data obtained was treated as an individual data source. About 600 questionnaires were distributed and a total of 303 were receieved representing a response rate of 50.5%. Of these, 233 were usable for data analysis as others were incomplete. The results indicate that the HRDC has a significant relationship with OCB and VTI. However, OCB shows no significant relationship with VTI. The study findings and their implications for organisations in general and Nigerian banks in particular are discussed.

Determinants of Commercial Banks’ Lending Behavior in Nigeria

This study investigated the determinants of commercial banks’ lending behaviour in the Nigerian context. The study aimed to test and confirm the effectiveness of the common determinants of commercial banks lending behaviour and how it affects the lending behaviour of commercial banks in Nigeria. The model used is estimated using Nigerian commercial banks loan advance (LOA) and other determinants or variables such as their volume of deposits (Vd), their investment portfolio (Ip), interest (lending) rate (Ir), stipulated cash reserve requirements ratio (Rr) and their liquidity ratio (Lr) for the period; 1980 – 2005. The model hypothesizes that there is functional relationship between the dependent variable and the specified independent variables. From the regression analysis, the model was found to be significant and its estimators turned out as expected and it was discovered that commercial banks deposits have the greatest impacts on their lending behaviour. The study then suggests that commercial banks should focus on mobilizing more deposits as this will enhance their lending performance and should formulate critical, realistic and comprehensive strategic and financial plans.

Determining the Strategic Consolidation of the Capital Base of Nigerian Commercial Banks

The reformation of the banking industries by the Central Bank of Nigeria requiring banks’ to consolidate their capital base to N25 billion (about $166.7 million) became an optional concern to various managers in the banking industry. It thus became a necessity on the corporate managers of banks to decide on the different alternatives available to them by considering different criteria in order to strategically consolidate. This paper employed Analytic Hierarchy Process (AHP) as an evaluative tool for strategic reconsolidation of capital base by banks, using the recent experience of six merger/acquisition banks. The aim of the study specifically was to evaluate whether decisions taken by the various groups of banks in meeting the $166.7 million capitalization level could be proved right scientifically. The results confirmed that decisions taken by most of the groups of banks conformed to our scientific result with the exception of only one bank confirming the appropriateness of the AHP approach in such decision-making scenario. Keywords: strategic consolidation, capital base, Nigeria commercial banks, analytic hierarchy process.

Organisational Culture and Corporate Performance: Empirical Evidence from Nigeria

The purpose of this research article is to examine various concepts on organisational culture and strives to ascertain the importance of the relationship between organisational culture and corporate performance in a business context. The study adopted survey research design. The population of this study is the entire employees of Nigerian commercial banks. Primary data were used for this study. Data were collected through a questionnaire that was administered to the selected respondents, The two hypotheses proffered were tested and relevant recommendations were made. The conclusion drawn from the study is that organisational culture plays a vital role in an organisation’s general performance. This study contributes to organisational culture’s literature by showing that employees would commit themselves to organisational goals and work actively in achieving those goals when they buy into cultural norms of the organisation and thus increase organisational performance.

Information and communication technology and bank performance: the case of Nigerian commercial banks.

Different sectors of world economies are rapidly being affected by improvedtechnology. Banking sector is also witnessing the trend in Nigeria. Information and communication Technology is said to have impacted the banking sector massively as the banks in Nigeria introduce products that would help improve their efficiency. The heavy investment in this area has led people into questioning the associated gains. This paper therefore, investigates the impact of these new technologies on the performance of the Nigerian banks for the period 1970 to 2008, using the t-ratio (difference between means) and found that the introduction of information technology has positively impacted on the performance of the banks.Key words: Information communication technology, performance, banking,new generation banks.

Management Perceptions of Internet-Based Banking Services in Nigerian Commercial Banks

AbstractThis study investigates management perceptions of internet-based banking services with special references to commercial banks in Nigeria. There was a significant difference between male and female management perceptions of internet-based banking services; management had significant positive rather than negative perception of Internet-based banking services; there was a significant difference between strategic and tactical management perceptions of Internet-based banking services. Gender age, work experience, management cadre and computer experience/training strongly influenced the management perceptions of Internet-based banking services in the Nigerian commercial banking system. Suggestions are proffered on how to further enhance management's positive perceptions of the Internet-based banking services in Nigerian commercial banks.

An Assessment of the Determinants of the Nigerian Banking Industry Profitability Using Panel Evidence From Nigerian Commercial Banks

Prominent studies abroad which focused on the determinants of bank's interest margin and profitability have focused on whether banks in a particular country or panel have tended to exhibit different profit determinants and deposit behaviours. One question that these studies have not yet addressed is the actual determinants of bank profitability in Nigeria. Using the panel of respondents drawn randomly from 10 sampled banks based on their total deposit position at the entry point of the period of study 1996-2005, the study established that in Nigeria, the volume of operations more than any other factor determined the operating profits of commercial banks. The other factors include the level of market capitalisation, peer group ranking and combination of other important factors as determined by the tempo of the macro economic environment. This finding posed serious challenge to bank executives to identify important explanatory variables or determinants affecting their annual earnings to their forecast and build them into their chosen forecasting and profit planning models to improve forecast accuracy. The study calls for more commitment to trainings and model development based on the internal peculiarities of banks under study. The Information Manager Vol. 7 (2) 2007: pp. 14-20

Information accessibility and utilizatoin as factors influencing decision-making of managers in commercial banks in Nigeria

This study investigated information accessibility and utilization as factors influencing decision-making of managers in commercial banks in Nigeria. Single stage random sampling with equal allocation method was used to select 550 managers from the 66 licensed commercial banks. The study revealed that there was a significant positive relationship between academic qualifications and information utilization in decision-making of the respondents (r = 0.88, P < 0.05). Information accessibility and utilization, when taken together significantly influenced decision-making of the respondents (F = 48.67, df = 2; 507, P < 0.05). Also, each of the two factors independently has a significant influence on decision-making of the respondents information accessibility (&#946; = 0.6214; df = 507, T = 10.71, P < 0.05) and information utilization (&#946; = 0.8246, df = 507, T = 12.49 P < 0.05). The study also found that information utilization has a greater relative influence than information accessibility on decision-making of the respondents. Information accessibility and utilization was found to have significant positive multiple relationship with decision-making of the respondents (R = 0.8428, P < 0.05). It is therefore recommended that the management should make relevant information accessible on time for the use of managers for improved decision-making in the Nigerian commercial banks. Keywords: Information accessibility, information utilisation, commercial banks, managers, Nigeria.Ghana Library Journal Vol. 18 2006: pp. 1-24

Assessment of the Use of Information Management Systems in the Banking Industry: A Case Study of the Nigerian Commercial Banking System

AbstractThis study investigates the information management in Nigerian Commercial banks; the survey method was adopted for the study. The population constituted the 365 and 248 branches of First Bank and Union Bank respectively. Both purposive and random sampling procedures were used to select the two oldest banks and 129 branches as samples for the study and the 279 samples of the respondents surveyed. The findings revealed that information sources generated are technical reports, statistical data and articles from magazines and newspapers. The technology most used to manage information is electronic mail and computers. Information technology is most important in the storage of data and dissemination of information. The findings indicate that information is used in managerial functions such as planning, controlling, organising, directing and staffing.

Risk management practices in IS outsourcing: an investigation into commercial banks in Nigeria

This research work focuses on the risk management practices adopted by Commercial Banks in Nigeria that are related to the outsourcing of information systems (IS). The need for the research emerged from the lack of studies addressing these problems in developing countries in general and in this country in particular. The research reported in this paper shows that despite the globally increasing trend of IS outsourcing in the sector, Nigerian commercial banks are lacking in both strategic and operational risk management practices. Consequently, they are especially prone to the adoption inappropriate IS solutions and are vulnerable to IS failure and fraud. The research is empirically based drawing on an extensive literature and case study review as well as an extensive survey of banks in Nigeria. The main method of data collection was a questionnaire sent to 15 commercial banks, which was aimed at respondents in three distinct categories: executive management, systems managers and users. The analysis of the data included both a quantitative and an inductive qualitative approach. The latter was used to draw inferences on the current situation. The findings revealed that managers of commercial banks understand the nature of IS outsourcing and that they all agreed that adopting risk management practices is important. Nevertheless, the situation is critical. A significant proportion of the commercial banks have no documented and structured outsourcing strategy or policy; consequently no programme or procedural guidance is available at any level. The study also discovered that contrary to practice in developed countries, the regulatory authorities in Nigeria have not formulated substantive guidelines or procedural rules to be adopted nationally by commercial banks.