Table of Contents
Abstract. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study. 7
1.4 Research Questions. 8
1.5 Research Hypothesis. 8
1.6 Significance of the Study. 8
1.7 Scope of the Study. 9
1.8 Limitations of the Study. 9
1.9 Organization of the Study. 10
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE.. 12
2.1 Introduction.. 12
2.2 Theoretical Review.. 12
2.3 Conceptual Review.. 14
2.3.1 Overview.. 14
2.3.2 Causes of the Skill Gap.. 14
2.3.3 Consequences of the Skill Gap.. 15
2.3.4 Implications for Economic Development. 15
2.3.5 Strategies for Bridging the Gap.. 15
2.3.6 The Role of Government Policies. 16
2.3.7 Harnessing Emerging Technologies. 16
2.3.8 Collaborative Initiatives. 17
2.3.9 Measuring Progress and Impact. 17
2.4 Empirical Review.. 17
2.5 Summary of Literature Review.. 19
CHAPTER THREE.. 20
RESEARCH METHODOLOGY.. 20
3.1 INTRODUCTION.. 20
3.2 AREA OF THE STUDY.. 20
3.3 POPULATION OF THE STUDY.. 20
3.4 ETHICAL CONSIDERATIONS.. 22
3.5 LIMITATIONS OF THE STUDY.. 23
3.6 SUMMARY.. 23
CHAPTER FOUR.. 24
DATA ANALYSIS AND INTERPRETATION.. 24
4.1 Preamble. 24
4.2 Socio-Demographic Characteristics of Respondents. 24
TABLES BASED ON RESEARCH QUESTIONS.. 28
4.3 Analysis of the Respondents’ Views on Research Question one:. 28
:- Mean for Item one =3.19 N/B: This is applicable to all items.. 33
4.4 Testing Hypothesis. 38
CHAPTER FIVE.. 43
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 43
5.1 Summary. 43
5.2 Conclusions. 44
5.3 Recommendations. 45
REFERENCES.. 46
QUESTIONNAIRE.. 49
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In the dynamic landscape of Nigeria's banking sector, the integration of Information Technology (IT) has become increasingly paramount for sustained growth and competitiveness. However, a significant challenge looms large: the glaring IT skill gap among banking professionals. This gap poses a formidable obstacle to the sector's ability to harness the full potential of technological advancements and meet the evolving needs of customers in an increasingly digital era. As Nigeria positions itself as a regional financial hub, addressing this skill deficit is imperative for the sector's long-term viability and resilience.
According to recent studies (Ajayi, 2023; Bello et al., 2022), the shortage of IT skills in the Nigerian banking sector is evident across various domains, including cybersecurity, data analytics, and digital banking solutions. This deficiency not only hampers operational efficiency but also exposes banks to heightened cybersecurity risks and limits their capacity to innovate in line with global trends. Furthermore, the pace of technological evolution exacerbates this gap, making it essential for banking professionals to continually update their skills to remain relevant in the digital ecosystem (Oyewole & Adebayo, 2021). Failure to bridge this gap could impede the sector's ability to adapt to changing customer preferences and regulatory requirements, ultimately jeopardizing its competitiveness.
To address the IT skill gap, concerted efforts are needed from both the public and private sectors. Investment in specialized training programs, collaborations with educational institutions, and the adoption of talent development initiatives are crucial steps (Aderinto & Akintunde, 2020). Furthermore, fostering a culture of continuous learning and incentivizing employees to acquire and apply IT skills will be instrumental in narrowing the gap (Adesope et al., 2024). By prioritizing human capital development in IT, Nigerian banks can enhance their capacity for innovation, strengthen cybersecurity frameworks, and deliver superior digital banking experiences to customers, thereby bolstering the sector's resilience in an increasingly competitive global marketplace.Top of Form
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1.2 Statement of the Problem
The Nigerian banking sector stands at a crossroads, grappling with a pressing challenge that threatens its long-term viability: the pervasive information technology (IT) skill gap among its workforce. Despite the sector's increasing reliance on digital technologies to drive innovation and enhance operational efficiency, there exists a glaring deficiency in IT skills among banking professionals. This deficit not only undermines the sector's ability to harness the full potential of technological advancements but also exposes it to heightened cybersecurity risks and impedes its capacity to meet the evolving needs of customers in an increasingly digital landscape.
Recent research findings (Adesina & Ogunleye, 2023; Ibrahim & Aliyu, 2021) underscore the severity of the IT skill gap in Nigeria's banking sector, revealing a significant disparity between the demand for IT expertise and the available talent pool. From cybersecurity vulnerabilities to the inability to leverage data analytics for strategic decision-making, this gap manifests in various dimensions, hindering the sector's competitiveness and inhibiting its ability to innovate in line with global trends. Moreover, as digital transformation accelerates across industries, the pace of technological evolution further exacerbates this challenge, necessitating a swift and comprehensive response from stakeholders within the banking ecosystem.Top of Form
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1.3 Objectives of the Study
The main objective of the study is to examine Information Technology Skill Gap in the Banking Sector of Nigeria. Specific objectives of the study are:
- To identify the specific IT skills most in demand by Nigerian banks.
- 2. To understand the root causes of the IT skill gap in Nigerian banks.
- To analyze the potential impact of the IT skill gap on the Nigerian banking sector.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- What IT specializations are most actively sought after in job postings by Nigerian banks?
- To what extent do educational institutions in Nigeria equip graduates with the IT skills required by the banking sector?
- How could the IT skill gap hinder the adoption of new financial technologies FinTech by Nigerian banks?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between Information Technology Skill Gap and the Banking Sector of Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Select Money deposit banks in Lagos. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
