Library Philosophy and Practice 2012
Investment Status of Librarians in Tertiary Institutions of Kogi State, Nigeria
Moses Adekunle Omoniwa
In Nigeria, governments constitute the largest employer of labour – Federal, State, and Local Governments, including their parastatals. As a result of this, the burden of paying retirement benefits appear to be too much for each succeeding government of the day – pension and gratuities have remained unpaid for years by the various levels of government.
Because of this, many workers, upon retirement have nothing to fall back upon, and therefore, languish and eventually die prematurely and in penury. In extreme cases, retirement benefits were only paid posthumously to the next-of-kin of deserving workers.
Generally, Nigerian workers/employees in public or private sector of the economy have a very poor attitude to saving/investment. The general feeling or attitude is that one must earn 'enough' to be able to save or invest. Nigerian workers hardly have savings or investments. Investment in the stock market is seen largely as for the super-rich. Therefore, only a very tiny segment of the Nigerian workers are familiar with the operations of the capital market.
This study covers four tertiary institutions in Kogi State, namely:
i. Kogi State University, Anyigba
ii. Kogi State polytechnic, Lokoja
iii. Federal College of Education, Okene
iv. Kogi State College of Education, Ankpa
The study was targeted at the professional librarians in those institutions. The choice of librarians, excluding other library staff – intermediate and junior staff was a deliberate decision by the author. It was designed to test our earlier assumption or observation that Nigerian workers are poor at saving or investment. The author wanted to find out the extent to which this assumption is true of librarians in Kogi State tertiary institutions.
The knowledge of whether librarians invest in the capital market is necessary to be able establish their investment status or profile. As a group of professionals, who are engaged in information dissemination, the author was of the view that the type of information they disseminate to workers should include stock market news to staff and students on their various campuses. Of course, if they themselves are ignorant of the stock market, it necessarily means that they would have nothing to offer to their clientele.
The objectives of this study include:
i. To establish the investment status/profile of librarians working in the selected tertiary institutions
ii. To sensitize librarians on the immense opportunity that can be derived from investing in capital market.
iii. To establish whether librarians who invest in the capital market have investment plan, and
iv. To establish the purpose for which librarians invest.
Statement of the Problem
Investment in the capital market or savings in whatever form is a sacrifice – it means denying oneself of the full enjoyment of what the money invested or saved can afford now. It requires discipline to invest in shares on regular basis. The wrong notion that one has to be rich to be able to invest or save is wrongly held among Nigerian workers. Investment of windfalls – arrears, unexpected payments, although offer the opportunities for investment, yet, it has not been the case.
The poor performance of government and her agencies/parastatals in paying gratuities and pensions as and when due, to workers after retirement is a pointer that workers should do something to help themselves, the advent of the national pensions scheme not withstanding. Even if pensions and gratuities are paid as and when due, retirees still need extra stream of income, which investments in the capital market will bring.
As Ologe (2007) rightly pointed out at least, there are six benefits derivable from investing in shares: dividend payment, bonus shares, capital appreciation, share as capital assets (share certificates), share as liquid assets and membership of companies where investors own shares.
There is an urgent need for librarians to be properly informed and enlightened about the operation of the capital market. By what we read in the newspapers and magazines, there is at present a high level of ignorance, even among the highly educated groups in the Nigerian tertiary institutions. Many prefer to engage themselves in direct buying and selling with all risk factors involved. Investments in the capital market are managed properly by experts, whose sole duty is to ensure that such quoted companies remain profitable.
The responsibility of the investor is to seek professional or expert advice before investing in any quoted company either from stockbrokers or through extensive study and research into the status of the companies one wants to invest in. To benefit maximally, investors in the stock-market must be conversant with the operations of the market.
As has been said elsewhere in this paper, whenever Governments review salaries and pay arrears to workers occasions offer the best opportunity for investment in the capital market. Such delays of immediate consumption will yield bountiful harvest in the future. Such investment will save workers, who have served meritoriously form dying prematurely in penury, which usually occurs when pension and gratuities are not paid to workers over a long period of time after retirement.
Although there is a lot of literature on investment generally and on shares in particular, yet literature that the non-professional person can read and understand is limited to general business newspapers and magazines, especially business papers. Professor OLoge's work (2007) is one of the most informative work for the ordinary Nigerian, since it was written out of the authors's personal experience as an investor. The book You don't Have to be Rich to Invest in Shares was intended to assist others to begin to invest in shares.
The business pages, especially, the capital market page of the Guardian Newspaper provides useful hints and trends in the Nigerian Capital Market. Prospective investor will find the information very useful. In the same manner, the business pages of This Day Newspaper and the business pages of The Punch provides useful information to the ordinary investor. The Nigerian Financial Annual and The Monthly Investment Market Report is a publication that an average educated person can read and understand. It is a useful guide to investors in the capital market; it is published by First Securities Limited (a subsidiary of First Bank PLC).
Adeosun's (2004) investment in shares of quoted Companies as a source of living and Aina (2006) on how to create wealth through investment in shares, Bond, Unit Trust, Treasury Bill and insurance Scheme are other books that existing investors and prospective ones can read to become well informed. Dada's (2003) – the Nigerian Capital Market: Development, issues and policies, provide a good knowledge of The Nigerian Capital Market. For a comprehensive and general knowledge about the Nigerian Stock Exchange, a glance at the Nigerian Stock Exchange book, an annual Publication would be very rewarding to read. The cited publications provide basic and general information to prospective investors in the Nigerian Stock Market.
The survey method was employed in carrying out this study. The method used to collect data was the questionnaire and the documentary method. The documentary method provides the writer with general background information on the investment in shares in the Nigerian Capital Market. The questionnaire consists of 20 items designed to collect general and specific information form the respondents. The total population of the study was 22 librarians from 4 tertiary institutions in Kogi State. Surprisingly, all the 22 respondents completed the questionnaire, which gives the study 100% return rate.
Administration of Questionnaire
The questionnaire was delivered to Head librarians in each of the institutions selected. The administration was done by the secretary to the head librarians. The completed questionnaire was also submitted to the secretary's office from where a staff of the author was dispatched to collect them.
Data Presentation and Analysis
The data obtained through the responses to the questionnaire items were statistically treated through the assistance of Dr. Oladipo of the Department of Mathematical Sciences, Kogi State University.
The data analyzed and presented below were computed from the response to the questionnaire items by the respondents. The data are organized into tables, and each table deals with one aspect of the investment status of librarians in the selected tertiary institution of Kogi State, as presented below.
Table 1. Work Experience
The table above shows that the bulk of the respondents have relatively low working experience (31.8%) and these are within the 0 -5 years bracket. This is followed by 22.7% who are within the 6 -11 years bracket. What this means in terms of investment opportunity is that most of the librarians in tertiary institutions in Kogi State still have many years before retirement and indirectly more years to invest, only 13.6% of the respondents have had over 25 years of working experience.
Table 2. Investment in stock market
The Table shows that all the respondents 22 (100%) invest in the stock market. This is very interesting and encouraging. It shows that librarians in the tertiary institutions of Kogi State are conscious of the benefits of investing in the Nigerian Stock Market.
Table 3. Duration of investment according to rank of respondents
With respect to how long respondent have been investing, it is also interesting that 19 (90.47%0 of them started investing in the past 5 years. From the table above, it is clear that 4.76% have been investing for the past 10 years and some 4.76% have been in investment business for well over 10 years. If the 90.47% of the respondents continue to invest, the generality of librarians in the four tertiary institutions of Kogi State will have no economic anxieties when they retire.
Table 4. Introduction to capital market
Table4 above shows that majority of the respondents (34.8%) were attracted into the capital market by reading about it, while 30.4% were introduced into the capital market by friends. 21.7% came into the capital market through their contact with stock brokers. Only 13.0% came into the capital market by sensitization of their institutions. This shows that institutions need to do more to sensitize their staff to the benefits of investing in the stock market.
Table 5 Purposes for investing
The purposes for which the respondents invest from the above table are not only interesting, they are positive, 50% of the respondents invest to prepare for themselves and family in the future, when they are out of regular employment. This is followed by 17.9% and 17.9% for extra income and for future comfort respectively. 14.3% also invest to save for the raining day. All the purposes indicate one clear definition of investment: postponing the comfort of today to the future.
Table 6. Sectors for investment.
Table 6. Above shows various sectors in which the respondent invest. The banking sector tops the list with 47.2%, followed by the Food and Beverages sector with a distant 11.1%. The building sector followed with 8.3%. With the consolidation that has taken place in the insurance sector, it is hoped that many of the respondents will invest in that sector in the future.
Table 7. Satisfaction with level of investments
Table 7 above shows the level of satisfaction with their level of investment. It is interesting that 73.9% of the respondents were not satisfied. They wished they had invested more or had started investing much earlier. However, 21.7% said they were satisfied with their level of investment.
Table 8: Sustainability of investment
In investing, frequency or regularity of investment is very important, because it requires commitment, discipline, and purpose to invest on regular basis. However, majority of the respondents from table 8 above (81.8%) invested only when it was convenient for them. Only 18.1% invest quarterly, No respondent invests on a monthly basis. Investing systematically, or on regular basis is very necessary, especially in the first few years of investing. For instance, leave bonuses can be dedicated to investment in addition to wind falls such as arrears of promotions or new salary review. Investment can be made on annual or quarterly basis. Monthly savings can be cumulated for 3 or 4 months before investing. In investment, sustainability is very important for investments to grow.
Table 9. Confidence of respondents
Since the majority of respondents had said elsewhere that they were investing to take care of the time when they would be out of regular employment – post retirement, it is interesting to see from the above table that 80.9% of the respondents said they were already confident that life before retirement, they would have invested enough to take care of their economic needs in retirement. However, 19% said they were not confident because of the low investment status. The responses in the 'Yes' and 'No' categories here should provide food for thought to all librarians in the selected institutions.
Table 10. Attitude toward olleagues who do not invest
The feelings of respondents towards their colleagues who are not yet into investment is very revealing. The table above shows that 41.6% thought such colleagues were ignorant, while 33.3% thought such colleagues had no plan for their future. 25% of the respondents said out rightly they were sorry for their colleagues who were not into investment. The different responses should be food for thought for librarians, who are not into investments yet for whatever reason.
Table 11.Too Late to invest?
When the respondents were asked if they thought it was too late to invest .the table above shows the overwhelming response of 100% which says that it was not late to invest yet. This is a welcome development; it shows that the door to investment opportunities should never be closed. It all depends on the reason or purpose for investment.
Table 12 Regrets
The response from the above table is also interesting. All the respondents (100%) said they had no regrets for investing part of their income. Using good information and professional advice in making decision as to what companies or sectors to invest in, one should have no regrets.
Table 13. Advice to colleagues who are not investing
As to what advice those respondents who invest for their colleagues who do not, 43.5% simply advice they should act wisely by investing (34.8%) advise them to get informed while 21.7% advised that they should start immediately.
Table 14. Shares owned by respondents
The table above shows the respondent's unit of shares held. 36.3% were in the range of 1 – 3000 while 22.7% belong to the range of over 10,000 and another 22.7% belongs to the range of 5001 – 10,000 shares. Another 18.2% belong to the range of 3001 – 5000.
Given the relatively low figures, samples of the respondents were queried. Many of them confessed that they did not declare the correct figures. They had more than they declared. This was attributed to the limitation imposed on them by the questionnaire used for this study. The questionnaire then underestimated the ability of librarians to be mega investors.
Table 15. Retirement
The table above provides information as regards the time when the respondents would be due for retirement. 94.7% of them claimed that they still had over 6 years to retire from service only 5.2% had 2 -5 years to retire from service.
Conclusion and Recommendations
This study has shown very clearly that librarians in tertiary institutions of kogi State are investors in the stock market. This is encouraging against the background that Nigerian workers are weak in investment or savings. The librarians also invest with a purpose – providing for the retirement period, and to provide a reliable stream of income when they are no longer in regular employment. As information providers, librarians are also at a vantage position to preach the gospel of investment to other academic and non-academic colleagues in their institutions.
With this study, we can also make some generalizations about the investment status of librarians in the four tertiary institutions of Kogi State:
(i) They are generally aware of the benefits of investing in the stock market.
(ii) They are investors, although they may be rated low investors.
(iii) They were drawn to investment by friends and through reading newspapers, magazines, and
(iv) Sensitization by the institutions on investment is very low in the tertiary institutions of Kogi State.
1. Librarians In tertiary institutions of Kogi State need to invest on a regular/systematic basis, e.g. monthly, quarterly, or half yearly.
2. Tertiary institutions need to do more of mobilization of their staff for them to key into investment in the stock market.
3. Librarians should accept the philosophy that it is never too late to start investing: the rule is that it is better late than never.
1. Ologe, Kingsley O.(2007). You don’t have to be rich to invest in shares and make money. Abuja: Impact Consulting Limited.
2. Ologe, Kingsley O. (2007) Op. cit. pp. 19- 80.
3. The Nigerian Guardian Newspapers (2011) Business Pages 78- 79.
4. Nigerian Daily Trust (2011). Business/Finance.
5. Nigerian This Day Newspapers (2006). Business Page, p. 51.
6. The Nigerian Punch Newspapers (2004) Business Page, pp. 18-19.
7. Nigerian Financial Annual Monthly Investment Market Report by First Securities Ltd.
8. Adeosun, Adebayo Aderemi (2004). Investment in Shares of Quoted Companies as a Source of Living. Practical Concepts Limited.
9. Aina, Odunlami Oluwole (2006). How to create wealth through investments in shares, bond, trust units, treasury bills, and insurance schemes.
10. Dada, Isaac Olusola (2003). The Nigerian Capital Market: Development, Issues and policies. Nigeria: Spectrum Books.
11. Securities and Exchange Commission (2006). Securities Quarterly: a Quarterly Magazine of the Securities and Exchange Commission.