impact of boko haram on banking in nigeria

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  • Quantitative and Qualitative Analysis of the Impact of Boko Haram on the Banking Sector in Nigeria

    Contributors: Adeniyi Akofiranmi, Awodele Bola, Abe Bolanle, Onamuti Sanya, Ijeoma Chukwu, Frank Obel, et al

  • Definition of Terms

  • About Boko Haram

    Boko Haram, is a jihadist terrorist organization based in the northeast of Nigeria It was founded by Mohammed Yusuf in 2002 The organisation is a Muslim sect that seeks to abolish the secular system of government and establish Sharia Law in the countryIt propagates that interaction with the Western World is forbidden and it is also against the Muslim establishment and the government of Nigeria. The group includes members who come from neighbouring Chad and Niger and speak only Arabic language.Disruption of economic activity ( especially banking operation) in the Northern part of Nigeria Deterioration of confidence associated with an attack can reduce the willingness to spend than to save in banks Mass movement of individuals from the most affected northern states Damage to communications system

  • Banks Affected in Yobe State

  • Aim, Scope and Hypothesis

  • Literature ReviewAnthony, (2014) revealed that the sect have attacked commercial hot-spots like markets, parks, government agencies and even banks, in one of which they harvested N41 million, as recently revealed by the sects top shot, Abu Qada, currently in detention.ALAWIYE writes on challenges being faced by the banks. Indications have emerged that some Deposit Money Banks in the country may close some of their branches in the North, especially those in Borno and Kano states, where attacks by the Boko Haram sect are crippling business activities. Our correspondent gathered from sources in the banking sector that branches in the north had continued to record losses due to poor patronage and decreasing business activities. (Excerpt from Punch Newspaper May 14, 2012.Amuchie, (2012) stated that, last year alone, Boko Haram struck 115 times and killed 550 peopleFarouk, (2012) quoted The attack on Kano is so significant because the city has always been the commercial centre of Western Sudan for the past 500 years, ever before the evolution of Nigeria. So, when you destabilize peace in Kano you threaten the foundation of economic and social well-being of the northern region,

  • Presentation and Analysis

    of Data

  • Presentation and Analysis of DataThe responses on the survey questionnaire were analyzed using SPSS version 11.0. Alpha (significance value) is set at 0.05, to test at the 5% levelFirst part of this analysis is for classifying the respondents based on their bio dataSecond part is the descriptive analysis and interpretation of the findings. Two hundred (200) questionnaires were administered and one hundred (100) were valid questionnaire returned, eighty (80) were partially filled and twenty (20) were not returned.Questionnaire used for quantitative aspect

    Dear Respondent,

    REQUEST TO COMPLETE QUESTIONNARE

    We seek your mutual understanding and co-operation in completing this questionnaire. We shall be grateful if the questionnaire is thoroughly read and completed with all sincerity.

    All information given shall be fully utilized for this study and shall be treated with utmost confidentiality.

    QUESTIONNAIRE

    The objective of this questionnaire is to carry out an analysis of the impact of the catastrophic violence and insecurity as a result of insurgency of boko haram for the past 5 (five) years in Nigeria on the Banking sector.

    Please check the appropriate box that best represents your opinion on each question below.

    SECTION A

    RESPONDENTS BIODATA

    Sex: Male Female

    Age: 21-30 31-40 41-50 51- 60 60 -above

    Marital Status: SingleMarried Divorced Separated Widowed

    Highest Qualification: WASSCE/GCE OND/NCE HND/B.Sc MBA/M.sc

    Religion: Islam Christianity TraditionalOthers

    Management Cadre: Lower Manager Middle ManagerSenior Manager

    How long have you been with this organisation? 1- 5 6-10 11-15

    16-20 21- 25 26- 30

    SECTION B

    Please select the responses that best answer the following questions by ticking the appropriate box marked Yes or No

    1. Are you aware of the Boko Haram insurgency plaguing the Northern part of the country?

    Yes

    No

    2. Have your banking activities been directly or indirectly affected by the negative impacts of the Boko Haram insurgency?

    Yes

    No

    If yes, please specify: ________________________________________________

    3. Do you think the effects of Boko Harams activities have been felt in other banks/ branches in other parts of the country other than the affected States in the North-East?

    Yes

    No

    If yes, please explain: _________________________________________________

    ___________________________________________________________________

    ___________________________________________________________________

    4. Do you think the Government is doing enough to tackle the Boko Haram menace?

    Yes No

    If No, please advice, __________________________________________________

    __________________________________________________________________

    __________________________________________________________________

    5. Do you think Boko Haram is an insurgent/terrorist group with no political undertones/backing?

    Yes

    No

    6. Do you think Boko Haram is a politically funded and motivated group created to discredit and destabilize the present Government of the country?

    Yes

    No

    SECTION C

    The statements of this section of the questionnaire are to be rated on a 5 point scale with options ranging from: Strongly Agree (SA), Agree (A), Neutral (N), Disagree (D) and Strongly Disagree (SD). Please tick () the one that most accurately conveys your

    (S)

    (A)

    (N)

    (D)

    (SD)

    1. Banks domiciled in the north have witnessed significant reduction in operation due to boko harams activities.

    (

    (

    (

    (

    (

    2. Profits of your bank has been affected by boko haram insurgence

    (

    (

    (

    (

    (

    3. Your bank has lost fixed asset to insurgence

    (

    (

    (

    (

    (

    4. Many staff in boko haram infested area have lost their lives or those of relatives

    (

    (

    (

    (

    (

    5. Violence by boko-haram has adversely affected the revenue of your bank.

    (

    (

    (

    (

    (

    6. Patronage by customers in areas affected by boko haram insurgence has greatly reduced.

    (

    (

    (

    (

    (

    7. Projects funded by your bank in affected areas are at risk.

    (

    (

    (

    (

    (

    8. Operating Cost has gone up due to increased security budget.

    (

    (

    (

    (

    (

    9. Some bank branches have been shut down due to boko haram activities.

    (

    (

    (

    (

    (

    10. Employee Transfer requests have increased tremendously due to insurgence

    (

    (

    (

    (

    (

    11. Employee turnover has increased in your bank due to book haram activities.

    (

    (

    (

    (

    (

    12. Suggest surviving strategies for the players in the banking sectors if this situation continues unabated____________________________________________________

    ___________________________________________________________________

    ___________________________________________________________________

    THANK YOU FOR YOUR PARTICIPATION!

    PAGE

  • Biodata ClassificationSection A

    Table 1: Gender Distribution

    100 respondents: 64.0% are Male and 36.0% are Female which means there are more male than female in the Nigerian banking sector.

    Table 2: Age Distribution

    Majority of the employees belong to the productive age as a result of this the banking sector is expected to be productive

    Table 3: Marital Distribution

    Among the respondents, 33.0% are single and the remaining 67.0% are married.

    FrequencyPercentValid PercentCumulative PercentMale6464.064.064.0Female3636.036.0100.0

    FrequencyPercentValid PercentCumulative Percent21- 30 yrs2727.027.027.031- 40 yrs 5151.051.078.041 - 50 yrs2222.0 22.050 60 yrs---61yrs & above

    Total100100100.0

    FrequencyPercentValid PercentCumulative PercentValidSingle3333.033.033.0Married 67 67.067.090.0Divorced--- 100.0Total100100.0100.0

  • Biodata Classification Contd

    Table 4: Educational Qualification Majority the respondents possess first degree certificate.Table 5: Religion Distribution 34% of the respondents are Muslim and the remaining 66% are Christians.Table 6: Managent Cadre

    30.0% of respondents are middle level manager, 25.0% of them are senior level manager and the remaining 45.0% are lower level manager.

    FrequencyPercentValid PercentCumulative PercentO level----OND/NCE 44.04.04.0BSc/HND62 62.0 62.066.0MSc/MBA3434.034.090.0100Total100100.0100.0

    FrequencyPercentValid PercentCumulative PercentValidIslam3434.034.034.0Christianity 6666.066.0100.0Traditional- - -Others--

    Total100100.0100.0

    FrequencyPercentValid PercentCumulative PercentValidMiddle mgr3030.030.030.0Senior mgrLower mgr254525.045.025.045.055.0100.0Total100100.0100.0

  • Biodata Classification Contd

    Table 7: Length of Service 42% of the respondents have sp

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