CHAPTER ONE

INTRODUCTION

1.1 Background To The Study

Air transportation in Nigeria like other African countries was a child of necessity during the British colonial rule as the need to reach out to other colonies including Nigeria by the British government became imperative.  Nigeria just as other African countries created its government-owned national carrier to serve air transportation need of the country as well as that of other continental and intercontinental countries.

 

Being statutorily the national carrier and sole domestic passenger carrier (Daramola, 2007), the airline had an overwhelming competitive advantaged position conferred on it by statute and commercial monopoly (George, 1990), and had its fair share of the air transportation market both at the national and international level; and flourished at some point as a reliable airline with the best of manpower support. However, that momentum could not be sustained over a long period of time as it soon began to have challenges which led to its demise.

The Nigerian Government, after the demise of the national carrier in 2004, has been toiling with the idea of a new national carrier. There seem to be incongruence as to the relevance or otherwise of another national carrier. More so, as some think it is out of vogue, others feel that the issues which led to the demise of NAL if not properly addressed may also lead to the failure of a new one.

 

Aviation sector plays a vital role in facilitating economic growth and development, and provides numerous economic and social benefits. The air transport (aviation) industry consists of activities that directly involve transporting people and goods by air, which includes airlines, airports and general aviation services. Some of the main economic impact of aviation arises from its ability to generate employment opportunities, wealth and effectively supporting global businesses and tourism  and  offers countries,  especially  developing  ones,  the opportunity  to  facilitate  trade and  enable linkages in the global supply chain. According to Air Transport Action Group (ATAG, 2014) the global economic impact of aviation (direct, indirect, induced and catalytic) is around $2.7 trillion, equivalent to  3.5% of the world’s gross domestic product (GDP) and the aviation industry generates 62.7 million jobs around the world. This suggests that aviation forms a very significant part of the global economy through generating jobs directly and indirectly and providing a transportation platform for global businesses to grow. In addition, it has catalytic effects in areas such as trade, tourism and consumer welfare. Therefore, its role in facilitating economic growth in developed and developing countries cannot be overemphasized.

The aviation industry generated 6.9 million jobs and $80.5 billion in GDP in Africa (ATAG, 2014). During the 2010-2015 period, Africa was declared the third-fastest growing region in the aviation world (Armoo, 2015). Globally, including the tourism impacts, Africa accounts for 12% of the jobs and 3% of the GDP supported by the aviation industry in 2012. From 2011 to 2012, African airports witnessed a 7% growth in passengers handled and of the top 20 African airports, three (3) are based in South Africa, and another three (3) in Egypt, making these two countries the biggest air transport markets in African continent. The aforementioned statistics suggest the enormous economic benefits of aviation in terms of employment and contribution to GDP of African countries’ economy, and hence provides an added incentive for African governments to reformthe sector to make it more efficient and responsive to travelers’ requirements.

On the contrary, the aviation industry in sub-Saharan Africa has been described as comparatively small and young by the International Civil Aviation Organisation (ICAO). Africa has been riddled with poor safety records and a lack of liberalized skies within the continent despite the efforts of Yamoussoukro Decision of 1999 to liberalize international air travel within Africa. Also, widespread political instability has not helped with the industry’s growth. Despite these challenges, there are many prospects and opportunities that would abound should the continent overcome these challenges. The imminent emergence of the middle-class income earners in the continent can only help boost the aviation industry.  In light of the forgoing, this paper is set up to uncover the collapse of  the indigeneous airlines in Nigeria

 

1.2 STATEMENT OF THE PROBLEMS

The aviation industry in Nigeria has been facing a lot of challenges since its inception in 1920. These challenges range from poor safety and security measures, inadequate funding and resources, obsolete and inadequate airport infrastructure, inadequate skilled manpower,lack of enabling and regulatory frameworks, distance and limited connectivity, and  to high cost of operations and maintenance.

Safety and security challenges: Safety is one of the most pressing challenge facing the aviation sector in Nigeria. There have been a series of many plane crashes and near collisions and emergence landings in Nigeria over the last two (2) decades. The first plane crash in Nigeria was on November 20, 1969 when Nigeria Airways BAC VC 10 crashes on landing killing 87 on board and the second one on January 22, 1975 when Royal Jordanian Airlines flight 707 carrying 171 Nigerian Muslims returning from Mecca and 5 crew men died in the crash in Kano, Nigeria. Since then, there have been many other crashes and emergency landings in the country. The frequency of plane crashes stems largely from inconsistency in the implementation and enforcement of internationally accepted safety standards and practices in the country. These include inadequate infrastructure, use of obsolete airport facilities, human error, poor emergency response guidelines, procedures and capabilities to combat air among others.

Inadequate funding and resources: A major impediment to Aviation development in Africa in general and Nigeria in particular is the issue of funding. Most African governments run huge debt portfolios which makes increased borrowing to fund aviation development low on their priority. 33 out of the 40 Countries classified as highly indebted poor countries (HIPC) are in Africa. Aviation business is highly capital intensive and requires huge amount of investment in aircraft, spare parts and other infrastructure requiring massive capital outlay(Chattopadhyay, 2015).The capital expenditure is not only limited to equipment alone but to the training of requisite manpower such as pilots, cabin attendants, engineers, store-keepers.

Obsolete and inadequate airport infrastructure: The air transport industry in African countries, Nigeria included faces various challenges including poor airport infrastructures, lack of physical and human resources, limited connectivity, and lack of transit facilities. Although substantial progress has been made during the past decade, Africa still lags behind other regions in terms of “soft” and “hard” infrastructure.Many airports in Nigeria are in a state ofcomplete disrepair, lacking basic infrastructure such as adequate runway capacities and terminal facilities are often lacking at major airports in the country (Phillips, 2015).

Inadequate skilled manpower: For the past several years a major obstacle in Africa’s inability to meet its safety oversight functions in aviation industry is the lack of requisite competent manpower(Pam, 2013). According to the World Bank, Africa will find it very challenging to produce the number of development professionals needed to sustain economic growth in the aviation sector without a serious change in the continent educational and labour policies. A conservative estimate from Boeing in 2012 dictates that Africa needs to provide an additional 725 pilots and 810 aircraft engineers every year for the next 20 years to be able to man its aviation sector planned capacity. Nigeria’s’ population is 18% of Africa’s, and thus, this means that the country is expected to provide the appropriate 18% of the manpower. Failing to meet this target means Africa will have to mitigate the shortfall by employing expatriates. These will eventually repatriated both the acquired skills and revenue back to their home countries to the detriment of this continent. Nigerian Civil Aviation Authority (NCAA) has recently reported that most Nigerian airlines prefer employing foreign pilots, to the detriment of local pilots who are often also well qualified.

Lack of enabling and regulatory frameworks:The existence of growth-hindering policies and regulations, such as multiple taxation and poor consumer protection laws, have been major challenges to the Aviation sector in Nigeria (Phillips, 2015). The bottom line of the problems facing Aviation Industry in Africa in general and Nigeria in particular lies in the variance between policy formulation and the government’s political will to implement such policy(Omoleke, 2012).

Another major concern in the Nigerian aviation legal framework is the rigidcontrol of the supervising Ministry. Nigeria Aviation Management Agency (NAMA) for instance, is under the supervision of Ministry of Aviation as far as its functions and responsibilities are concerned, even though by law, it is a corporate body which can sue and be sued on its corporate name. Again, this is one of the problems generally militating against efficient delivery of social services by the State-owned enterprises. This assertion lends credence to Omoleke (2008) when he remarked that the Agencies, Commissions, Corporations and other parastatals are not given free hand to operate their organizations, instead, they are tied to the whims and caprices of the supervising Ministries. He added that such government policy tends to frustrate and kill the managerial initiatives of the Chief Executives of such Enterprises.

 High cost of operations and maintenance: There are so many costs incurred in aviation business, among which, cost of aviation fuel is the highest expenditure item for airline carriers. For instance, in 2008, based on a sample of 45 major global airlines, fuel represented 32.3% of the total operating costs (IATA, 2010). In Africa, aviation fuel is about 20% more expensive, when compared with other continents according to 2015 Annual Review of International Air Travel Authority. Also in Nigeria, experts say the high cost of aviation fuel also known as JET A1, cost airlines operating in the country about 40 per cent of their income, adding that the high cost of aviation fuel has not only make the cost of operation high, ithas also make it impossible for local airlines to break even.In a widely circulated publication the NCAA reported that Nigerian airlines spend about USD$16.3 million every year on pilot recurrent simulator training. Approximately 70% of this cost is expended on acquisition of relevant visas, flight tickets, subsistence allowances, hotel accommodation and other sundry expenses.

Other challenges facing airlines are multiple entries granted to well-funded and efficiently managed international airlines by the Federal Government Nigeria through the Ministry of Aviation, poor management, lack of enough aircrafts in their fleet to operate their scheduled routes, lack of maintenance facilities in the country where domestic airlines can carry out major checks such as C and D instead of taking their aircraft abroad, inability to access funds for expansion of their airlines, double digit interest rate paid on loans from financial institutions, lack of feasibility study before embarking on airline business, lack of financial discipline, management indiscipline, introducing chargesthat cannot be explained and government policies, which often a time somersault thereby affecting the operations of airlines.

1.3  Aims and Objectives of the Study

The main thrust of this paper  is on the Collapse Of Indigenous Airlines In Nigeria 1990-2018

The specific objectives are thus:

1 to investigate the root causes of the collapse of Nigerian Airline

2 to analyze the socio-economic impact of the Nigerian airline

3. to examine the implication for the collapse of the Nigerian airline

4 to investigate the Current State of the Nigerian Aviation Industry

 

1.4 Significance of the Study

It is hoped that this study, while serving as a reference material for esearchers, will equally elicit intellectual debate and contributions for solving the controversies generated by the issue of collapse of the Nigerian airline.

 

1.5 Scope of the Study

This work is on The Collapse Of Indigenous Airlines In Nigeria, it was restricted to the period of  1990-2018.

1.6 Research Questions

1. What are the root causes of the collapse of Nigerian Airline?
2. What are the socio-economic impact of the Nigerian airline?
3. What are  the implication for the collapse of the Nigerian airline?
4. What are the Current State of the Nigerian Aviation Industry

1.7 Operational Definition of Terms

NCAA : Nigerian Civil Aviation Authority (NCAA) is the regulatory body for aviation in Nigeria

Aviation: Aviation means all forms of flying, as well as what aircraft is actually used for. It is divided into two principal areas – military aviation and civil aviation. While military aviation deals with the use of aircraft by military forces, either as a weapon or as a platform from which other weapons are launched; civil aviation deals with the organisation and use of aircraft for commercial transportation.

 

Air Traffic Control (ATC): Air Traffic Control, a function performed by NCAA, involves keeping surveillance on aircraft from one airport to another.

ABSTRACT

 

The study investigates the Work stress and employee retention A case study of GT Bank. Employees work stress is due to unpleasant emotional situation that an individual experiences when the requirements of job are not counter balanced with his ability to cope the situation. This affects the employee’s job satisfaction. The study adopts descriptive research approach. So as to achieve the objectives of this study, information was gathered from staff of Guaranteed Trust Bank in three branches in Anambra state through self administered questionnaire from a sample of 192 The study was adopts both probability and non-probability sampling method. The data collected from the questionnaire were processed by using SPSS 16.0 version and analyzed by using descriptive statistical tools such as mean and standard deviation. The mean rank of Friedman was used to rank the factors contributing for work stress, and the Pierson correlation was used see the relationship between work stress and job satisfaction. The study finding indicate that causes of work stress significantly were working environment, inflexibility at work, , personal issue factor, lack of financial resource, and management systems. In addition the finding shows there is less job retentionin the case study due to limited work promotion, unfair salary lack of confidence in management, lack of employees work relationship, limited learning opportunities, and un-advancement in job. Then the correlation analysis, employees are facing work stresses that have caused less job retentionit indicates negative relationship

CHAPTER ONE

INTRODUCTION

• Background of the study

Stress has become a very common phenomenon of routine life, and an unavoidable consequence of the ways in which society has changed. This change has occurred in terms of science and technology, industrial growth, urbanization, modernization, and automation on one hand; and an expanding population, unemployment, and stress on the other.

The term “stress” was first used by Selye (1936) in the literature on life sciences, describing stress as “the force, pressure, or strain exerted upon a material object or person which resist these forces and attempt to maintain its original state.” Stress can also be defined as an adverse reaction that people experience when external demands exceed their internal capabilities (Waters &Ussr, 2007).

Work stress is thought to affect individuals’ psychological and physical health, as well as organizations’ effectiveness, in an adverse manner. Workers who are stressed are also more likely to be unhealthy, poorly motivated, dissatisfied, less productive and less safe at work. The organizations are less likely to be successful in a competitive market. Stress can be brought about by pressures at home and at work. Employers cannot usually protect workers from stress arising outside of work, but they can protect them from stress that arises through work. Stress at work can be a real problem to the organization as well as for its workers. Good management and good work organization are the best forms of prevention. If employees are already stressed, their managers should be aware of it and know how to help (Rajinish Ratna, 2011).

Organizations today are pursuing complex objectives that are often difficult to reconcile; those of becoming more competitive, more productive and more profitable. To attain these objectives, they must constantly evolve (change how they organize production and work; introduce technological innovations, new human resources management policies, and innovative forms of work organization, etc.  (De Coninck & Gollac, 2006).

 

The speed at which changes are taking place in organizations is resulting in work intensification, with consequences for workers and organizations alike. For individuals, the increased work stress has adverse effects on their health and safety at work, such as musculoskeletal disorders, psychological distress, fatigue and accidents (Du Tertre, 2006; Grumberg, 1986; Krause, Scherzer, & Rugulies, 2005; Sarazin, 2001).

Researcher in organizational behavior has shown that an individual could suffer from significant health complications backaches, headaches, gastrointestinal disturbances, anxiety and depression amongst others if subjected to stress over a long time. Behavioral changes in the form of excessive tobacco smoking and alcohol consumption, nervous disorders, heart diseases, diabetes, obesity also related to stress. Work stress is known to lead to job dissatisfaction, which in turn reduces the productivity (Madeline, 1983).

 

As mentioned by George A. (2002), the main conventional distinction between public and private organizations is their ownership (Rainey et al., 1976). Whereas private firms are owned by entrepreneurs or shareholders, public agencies are owned collectively by members of political communities. This distinction is associated with two further public/private contrasts. First, unlike their private counterparts, public agencies are funded largely by taxation rather than fees paid directly by customers (Niskanen, 1971; Walmsley and Zald, 1973). Secondly, public sector organizations are controlled predominantly by political forces, not market forces. In other words, the primary constraints are imposed by the political system rather than the economic system (cited by George A., 2002).

Effectiveness of GT Bank services is, therefore, determined partly by the satisfied employees the organizations maintain. According to Bram (2002), if job retentionis going down among workers in the public sector, it will have negative effects on the quality of the services. Not only because lesser motivated workers will deliver services of a lower quality, but also because it will make the public sector less attractive as an employer. This certainly will have adverse repercussions in a tight labor market.

This study, therefore, investigated and the Work stress and employee retention A case study of GT Bank.

 

• Statement of the problem

Stress at work can be a real problem to the organization as well as for its workers. Work stress is thought to affect individuals’ psychological and physical health, as well as organizations’ effectiveness, in an adverse manner. This will happen both at public and private organization.

 

Workers who are stressed are also more likely to be unhealthy, poorly motivated, less productive and less safe at work, which brought less job satisfaction. The study by Frank M. Gryna , (2004) suggests stress is one of the factor that affect the organization productivity either in public and private organization.

 

Stress can be brought about by pressures at home and at work. According to, Chan et al., (2000) the ultimate results of this pressure have been found to one of the important factors influencing work stress in their work. Rapidly changing global scene is increasing the pressure of workforce to perform maximum output and enhance competitiveness. Indeed, to perform better to their job, there is a requirement for workers to perform multiple tasks in the workplace to keep abreast of changing technologies (Cascio, 1995; Quick, 1999).

 

 

In line to the above stated problem the researcher assessed work stress resulted from work environment, lack of financial reward, personal issue, management problem and inflexibility at work. Hence, the study looks such factors to fill the study research gap of work stress factors on GT Bank employee’s job retention

 

 

• Research question

The following research questions are addressed, in line with the above stated problem statement. These are :

1. What are the causes of work stress in GT Bank?
2. What are the effects of work stress on employees’ job retention in GT Bank?
3. What could be the magnitude work stress on a GT Bank employees job

Satisfaction?

4. What are the major to be taken to reduce work stress and improve job satisfaction?
   • Objectives of the study

The following general and specific objectives are set for the study.

General Objectives:

• To assess indicating factors toward work stress on employees job retention of GT Bank employees

Specific objectives:

• To investigate working environment stress toward job retention.
• To identify how Inflexibility in work stress influence workers job retention.
• To assess whether work stress limits job retention due to Lack of financial rewards
• To identify how work stress limits the interactions of workers with colleagues to prompt Personal issues
• To look management system stress at specifications regarding job satisfaction.
• To offer suggestion, on the basis of the study results, ways and means for reduce work stress and improving Job retention on the employee and more effective and efficient.

 

 

 

 

• Significant of the study

The current study come up with good and relevant finding about work stress and employee job retention of the study area. Primarily, the results of this study benefits to the selected organizations in particular and governmental organizations in general; that makes to understand the state of work stress and its effect on employee satisfaction. It helps the organizations to take corrective measures. Furthermore, it will be used as reference for other researchers who are interested to conduct study related to this problem.

 

• Scope of the study

The Scope Of This Study Focus On Work Stress And Employee Retention A Case Study Of Gt Bank

 

 Limitation of the study

The study was only conducted in four public service enterprises which limits the genralibility of the research findings. Another limitation was lack of recent and relevant literature on the topic, especially at the case study level. Finally financial and time limitation constrained to conduct a comprehensive and detail study by taking large sample and remaining explanatory variables. In spite of these short comings, however, it was attempted to make the study as complete as possible.

• Organization of the study

The studies have five chapters. The first chapter is an introduction which consists of background of the study, statement of the problem, research question, objectives, significance, scope and limitation of the study. The second chapter presented review of related literature. Chapter three presented research methodology. The fourth chapter presents the data presentation and analysis finally chapter five contains summary of results, concluding remarks and recommendations