Nigerian Journal of Risk and Insurance

FORENSIC BACKGROUND INVESTIGATION TECHNIQUE AND INSIDER FRAUD THREATS: EVIDENCE FROM THE LOW-LEVEL SUPPLY CHAIN FIRMS IN NIGERIA

Damilola Gabriel FAGBORO — 2024-03-07

The paper explores the nexus between forensic background investigation techniques on employees and insider fraud threats in Nigeria's low-level supply chain firms. The research design adopted for the study is a survey. Primary data are gathered from the 109 volunteered sole-business owners used for the analysis; descriptive and inferential statistical tools are deployed to analyse the data.

Findings reveal that sole-business owners rarely conduct background investigations on their employees during recruitment. The background intelligence gathering among the firms' employees is significantly low. Slack employment policies, misplaced trust, and uncoordinated internal control systems among the firms mostly create avenues for employees to commit fraud. The study concludes that both tactical and strategic approaches to intelligence gathering on employees are suitable methods to build up a detailed signal of threats to a business. Initial assessments and background forensic investigation processes on employees help make timely decisions about how to respond to insider fraud threats and identify what protective measures to take. The study recommends that sole business owners protect their investments by employing trustworthy persons, ensuring the safety of the assets, and upholding the reputation of the firm’s image. Preemployment and on-the-job forensic background investigation techniques and tactical intelligence evaluation on the employees should be part of the standard anti-fraud strategies of a small-size business firm. Credibility in the information gathered, and intelligence products generated by each employee must be a hallmark of the employing firm.

CONTRIBUTION OF SMALL AND MEDIUM SCALE ENTERPRISES TO ECONOMIC DEVELOPMENT OF NIGERIA

Abass A. SHIRO — 2023-11-13

Nigeria’s economic challenges have been attributed to excessive reliance on crude oil and as a result of the government's concentration of large-scale industries at the expense of Small and Medium-sized Enterprises (SMEs). In this study, we investigate the effect of electricity power supply on the productivity of SMEs as well as to which these Small and Medium scale Enterprises SMEs contribute to the economic development of Nigeria. Secondary data were extracted from CBN Statistical Bulletins covering the period between 1997 and 2020. Multiple Econometric Method was used to analyse the data, and the results were tested at a 0.05 significance level. The findings from the analyses of the study showed that SMEs’ productivity (SMEP), employment generation by SMEs (EG), electricity power supply and credit available to SMEs have significant positive effects on the economic development of Nigeria. Based on the findings, it was recommended that the government should ensure that SMEs’ productivity is improved by ensuring adequate credit availability to SMEs at reasonable interest rates, adopting macroeconomic policies that will reduce the level of inflation rate, ensuring regular and affordable electricity power to SMEs by allowing state independent power generation and supply. We believe that improving the SME's operational base will provide the needed catalyst for Nigeria's economic growth and development.

NON-OIL EXPORT AND ITS EFFECTS ON ECONOMIC GROWTH IN NIGERIA (1981-2020)

Abass A. SHIRO — 2023-11-13

Over the decade, Non-oil exports played a vital role in the growth of the Nigerian economy. Focusing on Nigeria's real economic growth, inflation, exchange rate and nonoil export, this study investigates the impact of non-oil exports on the economy of Nigeria using data from the years 1981 to 2020. The goal was to determine whether non-oil exports have an impact on Nigeria's real GDP. A model was developed to attain these goals, and the Autoregressive Distributed Lag (ARDL) Cointegration Technique was employed as the analysis approach. In addition to other tests, the variables in the study were submitted to a stability test, a bound test, and the Augmented Dickey-Fuller (ADF). The study demonstrates that, unlike other procedures, the ARDL Cointegration technique does not require pretests for unit roots. When dealing with variables that are integrated in various orders, I(0), I(1), or a mix of the two, the ARDL Cointegration technique is preferable and robust when there is a single long-run relationship between the underlying variables in a small sample size. The F-statistic (Wald test) detects the long-term relationship of the underlying variables. The ARDL results revealed, and the t-test of hypotheses examined, that non-oil exports, oil exports, and exchange rate have no effect on Nigerian economic growth and that there is a long-term link. According to the coefficient of determination, the dependent variable captures 79% of the independent factors. According to the report, for oil export and non-export to have an impact on Nigerian economic growth, a stable exchange rate and inflation must be monitored through regulations.

WHISTLEBLOWING PRACTICES AND CORRUPTION PERCEPTION INDEX: THE NIGERIAN EXPERIENCE IN THE CONTEXT OF A COMPARATIVE ANALYSIS

Temidayo ALABI — 2023-11-14

The study evaluates the veracity of whistleblowing policy in addressing incidence of corruption in Nigeria in the context of a comparative analysis. Structured questionnaire was adopted to gather primary data from the respondents cutting across experienced professional forensic accountants in the Country. Pearson’s correlation and regression analysis were used to analyse the data obtained. The findings reveal that whistleblowing practices in Nigeria are done without an enabling legal framework contrast to most countries in the world; the level of awareness of the whistleblowing policy among the stakeholders is low; reward system implementation procedure is tainted with uncertainties and bottlenecks; the mechanisms to protect the whistleblowers are inherently weak and redundant; and reporting channels for perceived workplace corrupt practices are marred with intimidations. The study concludes that corruption in Nigeria has become a growth industry and complex in nature. The Nigeria Government has consistently failed to adequately mitigate the menace of corruption in the Country. Globally, whistleblowing policy is designed as a key framework to curtail corruption and protect whistleblowers. Hence, for whistleblowing policy to achieve its desired goal in Nigeria, the study recommends that: Appropriate legal framework should be provided to guarantee credibility in Nigeria. Rewards for whistleblowers should be commensurate, timely and transparent. Wrongdoing reporting channels should be clearly specified and open. Consistent and concerted efforts should be made to create more awareness among the stakeholders, while providing ethical trainings for the employees.

IMPACT OF GOVERNANCE ON FAMILY BUSINESS SUSTAINABILITY IN LAGOS STATE, NIGERIA

Olufemi Olabode OLAYEMI — 2024-03-07

Family business is vital to economic growth of Nigeria. Various literatures exist on governance and family business, but little research have explored how governance impact family business sustainability in Lagos, Nigeria. To bridge this gap, this study investigated governance impact on family business sustainability in Lagos, Nigeria. A multistage sampling technique was used, in which the study area was initially selected using judgmental sampling and respondents were subsequently chosen from the designated site using convenience sampling. SPSS was used to analyse data, specifically, multiple regression analysis was employed. Findings demonstrate that CEO Duality and Ownership Structure significantly impact the sustainability of family businesses in Lagos, Nigeria. The study drawn the conclusion that CEO duality and ownership structure consideration remain paramount in enhancing sustainability of family. It was recommended that family firms concentrate on creating a well-defined ownership structure while carefully weighing the pros and downsides of CEO duality.

DIFFERENTIATION STRATEGIES AND ITS EFFECTS ON ORGANISATIONAL PERFORMANCE: A STUDY OF SELECTED HEALTHCARE FIRMS IN LAGOS STATE, NIGERIA

Olufemi Olabode OLAYEMI — 2024-03-08

Effective strategies are more vital than ever in today's rapidly evolving global landscape with heightened competition and demanding clientele. This study examined how differentiation strategies affect the performance of a healthcare firm, making a valuable contribution to the field of strategic development. It focused on differentiation strategies as deployed by health companies. Non-probability purposive sampling was employed, targeting customers of the Healthcare firm who were deemed capable of providing meaningful responses regarding the relationship between adopted differentiation strategies and organisational performance. The findings revealed a low level of consistency among the four key constructs: differentiation strategy (0.797), organisational performance (0.862), customer loyalty (0.836), and customer patronage (0.831). While differentiation strategies strongly impact organisational performance, they do not appear to be the primary driver of customer loyalty and patronage within the Healthcare firm. The study recommends that organisations delve into customer insights to identify the factors that foster customer loyalty and patronage.