ETHICAL LEADERSHIP ANDSUSTAINABLE ECONOMICGROWTH IN NIGERIA

BY
IWUNDUONYEKACHI
Learn to Live Business School, UK
EMAIL:iwunduonyekachi@gmail.com
PHONE: 08035489691
DOCTORATE LLBS. 2024

INTRODUCTION

Leadership starts with influence and builds from there, that is, everything rises and falls on leadership. By implication, if we want to influence changes that are systemic in any organization, institution, or country, it must start with its leadership ethics and mindset Maxwell (2016). In other words, the people who manage and administer the country must have a strong leadership philosophy that will affect the way they do things in the country. Hence, Nigeria as a country cannot rise beyond her leadership ethics, because, the way a country develops and makes progress is tied to her leadership ethics. Singapore proved this during the regime of Lee Kuan Yew, whereby the country moved from a third-world country to an industrial hub (Wikipedia, 2019). The country has achieved remarkable feats in education, technology, and industrialization which have promoted national growth and development that they are witnessing today as a result of ethical leadership.

The concept of ethical leadership cannot be tired of emphasized especially in a country where prebendalism (corruption) has become the system of the day among political officeholders. Unethical Leaders have some features that make them to be seen as unethical. Some unethical attributes include but are not limited to: insincerity, lack of accountability, intemperate, callousness, and corrupt insular and evil. Therefore a leader who possesses the opposite of these features is termed an ethical leader, and such can lead the people to their promised land (Barbara, 2014). Based on this view, the ethical leader is a person who can inspire his subordinates and the people, in general, to behave in a particular manner without the people perceiving him as engaging in bribery and corrupt practices for selfish motives. Leadership is a process where a person influences a group to achieve a common goal (Okechukwu et al 2016). Ethical leaders are leaders who use their social and positional power in their decisions, their actions, and their influence on others in such a way that they act in the best interest and opinion of followers and do not enact harm upon them by respecting the rights of all parties (Kanungo, 2014). These definitions have a clear ethical dimension because they refer to a common goal. A common goal requires that the leader and followers agree on the direction to be taken by the group. In Nigeria context is the situation the same? The effort to answer this question by the leaders would open the door for economic development. Leaders need to consider their own and followers’ purposes while working toward goals that are suitable for both of them. Ethical leaders can build a community and when a community is built, economic development is built. Ethical leaders build a community by serving others through their political positions. This is what we may call “ethical altruism”. Leaders who serve or occupy positions to serve people are altruistic because they make the masses’ welfare foremost in their plans. Lasthuizen (2018), explicitly considers ethical leadership to comprise both the quality of leaders to consistently make decisions and act following relevant moral values, norms, rules, and obligations as well as their ability to cultivate such decision-making and behavior among followers. To encapsulate the concept, Treviño, Hartman, and Brown (2020) specifically, stated that ethical leadership may be conceived as resting on three fundamental ‘pillars’ The first concerns the personal integrity of the leader, also termed the ‘moral person’ pillar of ethical leadership. The second emphasizes the extent to which a leader can cultivate integrity among his or her followers, i.e. the ‘moral manager’ pillar. The third pillar is about the quality of the leader-follower relationship, which bridges the moral person and moral manager components and facilitates their effects on followers (Heres and Lasthuizen, 2015). In a nutshell, when the leaders are ethically abiding, will lead to good governance. In the nonexistence of ethical leadership, underdevelopment thrives. This will take us to the next concept of economic development.

A lot of definitions have been put forward to depict what is economic development. It is an elusive term meaning different things to different groups of social scientists. Some believe that development has to do with a rise in real national income. Meaning that it must be a sustained secular rise in real income accompanied by changes in social attitudes and customs, which have in the past impeded economic progress (Anyebe, 2016). In a technical sense, economic development refers to economic growth within an economy.

Economic development can be defined in terms of an increase in the economy’s real national income over a long period (Jhigan, 1980). If we look at the definition, one may ask what happens when there is a discrepancy between national income and the people that is the population. The two must have to go hand in hand for real economic development to be said to have been achieved. According to Rodney (2012), economic development is a process where a society develops economically as its members jointly increase their capacity for dealing with the environment. The author cleared the air with an opinion that economic development should not be seen purely as an economic affair, but rather as an overall social process that is dependent upon the outcome of man’s efforts to tackle problems in his environment. Buchanan and Ellis (2015) defined economic development as income potentialities of underdeveloped areas by using investment to effect those changes and to augment those productive resources that promise to raise real income per person. More subtly, Anyebe (2016) defined economic development as a process whereby the real per capita income increases accompanied by a reduction in inequalities of income and the satisfaction of the preferences of the masses as a whole. This definition is satisfactory because it tries to marry the reduction in inequalities with the increase in per capita income. In Nigeria, the gap between the rich and poor is very alarming. The rich keep enriching themselves while the poor become poorer. Such an economy cannot bring about development.

In all the definitions of what economic development is, none attempted to look at economic development as what to do with the absence of corruption in the attempt to increase per capita income and reduction of inequalities in income. Therefore, for this study, economic development is viewed as the absence of corruption of any kind in ensuring an increase in per capita income accompanied by a reduction in inequalities of income and satisfaction of the preferences of the masses as a whole.

The definition can be accepted because efforts toward ensuring economic development cannot be fully achieved when there are unethical exercises surrounding the process. Nigeria has had many good development strategies but the problem arises on the leaders (Achebe, 1983). World Bank (2011) declares corruption as “…among the greatest obstacles to economic and social development” by undermining the rule of law and weakening the institutional foundations on which sustainable development depends.

Every developing country, especially in Africa, strives towards ensuring economic development Nigeria as a developing country is not outside the track. Nigeria is a country bequeathed with bountiful human and natural resources. Nigeria’s total population in 2016 was projected to be 193,392,517 (NpopC, 2017) cited in Jega (2017). The population has a large size of the well-educated and skilled workforce. Yet, a significant number of the population (67 percent) is said to be living below the poverty line, while many more fall into poverty daily (Olubunmi, 2018). The country’s landmass is immensely comprised of about 924,000 square kilometers, most of which arable, and rich in mineral and non-mineral resources especially large deposits of oil and gas (Onah, 2014). Nigeria’s economy depends on oil as its main foreign exchange earner, in 2002 constituted about 90% of its foreign exchange earnings. Nigeria as a developing country assumes responsibility for general administration as it is done in other governments in developed countries. Nigeria has had a relatively long experience in development planning starting with the Colonial Development Plan (1958-68). Medium-term development plans and national rolling plans were also developed and carried out with mixed output. Other major strategic initiatives – such as the Structural Adjustment Programme (SAP) by the Babangida regime in 1984, the National Economic Empowerment and Development Strategy (NEEDS) launched in 2003, by the Obasanjo administration, the Strategy for Attaining the Millennium Development Goals (SAMDG) in 2000, the 7-Point Agenda, by the Yar’adua administration in 2007, Transformation Agenda by the Jonathan administration in 2011, Vision 20:2020, and the recent Economic Recovery and Growth Plan 2017-2020. – were not seen to have been effectively implemented due to unethical leaders and bad governance.

The Nigerian government assumes an important economic function for national development. Nigeria is said to have her private sectors, though, ethical leadership and good governance existing in the country, are not strong enough to reach the maturity stage of national economic development. This made us introduce a variable called “Corruption”. Economic development cannot flourish well in an economy where the leaders are unethical leading to corruption. Being unethical here means a situation where there is injustice, insincerity in the act of governance, inequality in the distribution of economic wealth, undue favoritism, and uneven development projects in the country. An economy, which is characterized by regional and group crises, youth restiveness, and indiscipline (corrupt leaders) as a result of bad leadership cannot ensure economic development. Corruption may not affect output directly but is put into different transmission channels that have been studied extensively. It can affect the growth rate.

Realizing the importance of ethical leadership and good governance in a developing country like Nigeria is necessary and of great concern and therefore, cannot be overemphasized. Achebe (1983), in his work, opined that “the trouble with Nigeria is unquestionably and squarely a failure of leadership”. This implies that for Nigeria to be economically developed there must be good leadership in the country”. Continue with Achebe as cited in Izueke (2015) “There was nothing wrong with the Nigeria character, land, climate, air or anything else, including money”. Leaders are like cattle rearers, wherever they take or direct their cattle they would follow. Leaders are like parents in a family which first give a child societal values and norms. Leaders are teachers, when they fail to teach well, students are bound to fail woefully.

The above illustrations imply that Nigeria’s economic development is dependent on ethical leadership. Bad leadership is alleged as one of the root causes of all evil within our society and economic underdevelopment (UNESCAP, 2013). In Nigeria, the problem is aggravated by the high rate of corruption. The vast majority of African people remain impoverished while the few unethical elites enjoy the proceeds of corruption (Lerrick, 2015). The World Bank defined corruption “as the abuse of public office for private gain”. This is the most common definition employed by scholars (World Bank, 2018). This definition of corruption in the public or governmental realm informed our decision to embark on this study. A widely quoted estimate by the World Bank (2013), puts the total amount of bribes paid in both developing and developed countries in 2001/2002 at 1 trillion dollars, about 3 % of world GDP at the time which Nigeria is not excluded. This estimate does not comprise embezzlement of public funds or theft of public assets, which are extremely difficult to estimate. Okechukwu et al (2016), contended that public service in Nigeria has deviated from the standard inherited from the British system of administration.

Ethical leadership on its side entails that leaders should relate to others with respect. That is why Philosopher Immanuel Kant (1724-1804) argued that we must treat others with respect. To do so, therefore, means to treat others as ends in themselves and not as means to ends. As Beauchamp and Bowie (2018), distinguished, “Persons should be treated as having their right and autonomously established goals and must not ever be treated strictly as means to another’s personal goals.” These writers then suggested that treating others as ends rather than as means requires that we treat other people’s decisions and values with a sense of respect: failing to do so would signify that we were treating them as a means to our ends. Do our leaders treat us with respect for the level of inequalities and corruption in the country? It is against this background that the study aims to investigate ethical leadership and Sustainable Economic Growth in Nigeria.

Statement of the Problem

The pivot interest here is that a significant level of unethical leadership in Nigeria cannot take the Nigerian economic development strategies to maturity, embezzlement of public funds is a major problem plaguing the Nigerian economy. Unethical leaders should expect that people will be poor, poor funding of education, poor infrastructures, and others which the overall result would be economic underdevelopment. It is like a vicious circle. Furthermore, it is observed that project costs are often inflated, while programmes and projects which can potentially deliver the best value for money are frequently abandoned in favor of projects which do not offer maximum economic and social value as a result of unethical leaders. The Edelman Trust Barometer Poll (2011), conducted among the richest 25% of the population of 23 countries on five continents and with a total sample of 5,075 interviewees, on ethics and economy, produced clear confirmation of the widespread social demand for ethics in the economy that is now widespread in much of the world. The attention to ethics in the economy is fed by the weight of the lack of ethical values in the management of our resources. This aroused the interest of the researcher to explore ethical leadership as a solution for unstable economic growth in Nigeria. Such an effort would enable leaders to tackle the seemingly conspicuous corruption that has bedeviled Nigerian economic development which was propagated throughout the globalized world. Therefore the study aims to investigate ethical leadership and Sustainable Economic Growth in Nigeria.

Purpose of the Study

The main purpose of this study is to investigate ethical leadership and Sustainable Economic Growth in Nigeria.

Objectives of the Study

1. Investigate how ethical leadership practices influence sustainable Economic development in Nigeria.

• Examine how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria.

• Determine the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.

Research Questions

1. How does an ethical leadership practice influence sustainable Economic development in Nigeria?

• What does ethical leadership contribute to the achievement of sustainable development goals related to economic growth in Nigeria?

• What are the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth?

Hypotheses

HO1: There is no significant between male and female respondents on how ethical leadership practices influence sustainable Economic development in Nigeria.

HO2: There is no significant difference between male and female respondents on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria.

HO3: There is no significant difference between male and female respondents on the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.

METHODOLOGY

The research design adopted for this study was a descriptive survey design. This research was carried out in Enugu East Local Government Area of Enugu State. The occupation of the people in this is civil servants. The population of the study consists of civil servants working in different government parastatals owned by the state and federal governments. The simple random sampling technique was used to draw one hundred and fifty (150) civil servants from five (5) selected state and federal organizations in Enugu East Local Government Area of Enugu State. The instrument used for data collection is a questionnaire. The instruments after structuring were arranged and submitted to two experts. Using Crombach Alpha Statistics to test the reliability of the instrument, the result yielded a co-efficient index value of 0.85 indicating that the instrument is reliable. Mean was used to answer the research questions. The rating scale is; Strongly Agree (SA) 4points, Agree

• 3 points, Disagree (D), 2 points, Strongly Disagree (SD)1 point. The decision rule was that any mean up to 2.5 and above was accepted as “Agreed” while a Mean score below 2.5 was rejected as “Disagreed.

FINDINGS

Research Question 1: How does an ethical leadership practice influence sustainable Economic development in Nigeria?

Table One: Responses on how an ethical leadership practice influences sustainable Economic development in Nigeria

s/n	Items	SA	A	D	SD	N	EFX	𝒙̅	DECISION
1.	Ethical leadership reduces corruption	100	60	25	15	200	645	3.23	Agree
2.	Ethical leadership increases productivity and profitability	80	30	10	80	200	510	2.55	Agree
3.	Ethical leadership practice increases access to a wealth of natural resources in the nation	100	60	25	15	200	645	3.23	Agree
4.	Ethical Leadership helps to foster economic development for the poorest of the poor in the nation	80	40	20	60	200	540	2.70	Agree
	Grand mean: 2.70							10.80	Agree

Table 1 above shows various responses given by the respondents to the research question seeking to explain how ethical leadership practices influence Sustainable Economic development in Nigeria. The mean scores responses for question items 1, 2, 3 and4 were above the threshold of

2.5 (that is 3.23, 2.55 3.23, and 2.70). This implies that the respondents agreed that ethical leadership practices influence sustainable Economic development in Nigeria.

Ho1:   There is no significant difference between mean ratings of male and female civil servants on how ethical leadership practices influence sustainable Economic development in Nigeria.

Table 4:                   Z-test comparison of the mean and standard deviation ratings of opinion of female and male civil servants on how ethical leadership practices influence

                                 Sustainable Economic Development in Nigeria                                                     

Civil Servants

Female 76 2.88 0.90 Male 19 2.84 0.87

N                            𝐗          SD             df              z-cal           p-value      Decision

193                                                                         -0.14          0.888                NotSignificant

The analysis in Table 4 shows that the calculated value (z-cal=-0.14) is not greater than 1.96 or less than -1.96, the null hypothesis is accepted. This is further affirmed by the probability value of 0.888, which is greater than 0.05, meaning it is not significant. This result implies that the hypothesis is accepted, meaning there is no significant difference between the mean ratings of female and male civil servants on how ethical leadership practices influence sustainable economic development in Nigeria.

Research Question 2: What does ethical leadership contribute to the achievement of sustainable development goals related to economic growth in Nigeria?

Table 2: What does ethical leadership contribute to the achievement of sustainable development goals related to economic growth in Nigeria?

S/N	ITEMS	SA	A	D	SD	N	EFX	𝒙̅	DECISION
5	Eradication of extreme poverty and hunger in a nation	100	60	25	15	200	645	3.23	Agree
6	Development of global partnership for sustainable  development	80	40	20	60	200	540	2.70	Agree
7	To achieve universal primary education	54	55	28	13	150	450	3.0	Agree
8	Development of infrastructure of a nation	48	52	28	22	150	426	2.84	Agree
	Grand mean							2.67	Agree

Table 2 above shows the mean score responses for question items 5 -8 with mean scores of 3.23, 2.70, 3.0, and 2.84 were above the cut-off mean score of 2.5 this means that the respondent agreed.

Ethical leadership contributes to achieving sustainable development goals related to economic growth in Nigeria.

Ho2    There is no significant difference between the mean ratings of male and female civil servants on how ethical leadership contributes to achieving sustainable development goals related to economic growth in Nigeria.

Table 6: Z-test comparison of the mean and standard deviation ratings of male and female civil servants on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria

Civil Servants

N                   𝐗              SD             df            z-cal        p-value     Decision

Females                   79            3.03           0.87

Males                       19            2.93           0.92           193           -0.136         0.892   Not Significant

The analysis in Table 6 shows that the test statistic, particularly the calculated value of z-cal (- 0.136) is not greater than 1.96 nor less than -1.96, which means the null hypothesis is accepted. This is further affirmed by the probability (p-value) associated with the calculated value. The p-value is 0.892, which is greater than the 0.05. It is implied that it is not significant. Therefore the hypothesis is accepted, which is interpreted that there is no significant difference between mean ratings of male and female civil servants on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria.

Research Question 3: What are the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth?

Table 3: Responses on the barriers to the implementation of ethical leadership practices in Nigerian for sustainable economic growth

s/n	Items	SA	A	D	SD	N	EFX	𝒙̅	DECISION
9	Absence of accountability and transparency among leaders of the country	80	30	10	80	200	510	2.55	Agree
10	Lack of rule of law	100	60	25	15	200	645	3.23	Agree
11	Corruption  Challenges	54	55	28	13	150	450	3.0	Agree
12	Poor Resource Management	48	52	28	22	150	426	2.84	Agree
	Grand mean							2.67	Agree

Table 2 above shows the mean score responses for question items 9 -12 were 2.55, 3.23, 3.0 and

2.84 was above the cut-off mean score of 2.5 this means that the respondent agreed that there are barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.

Ho3    There is no significant difference between mean ratings of male and female civil servants on the barriers to the implementation of ethical leadership practices in Nigerian for sustainable economic growth

Table 7:                   Z-test comparison of the mean ratings and standard deviation of the responses of male and female civil servants on the barriers to the implementation of ethical leadership practices in Nigerian for sustainable economic

Group                             N               𝐗              SD             df            z-cal        p-value     Decision

Students 176 3.32 0.92 Lecturers 19 3.08 0.92

193                                                                                                     -0.126           0.9                Not

     Significant

Table 7 shows that the calculated value (z-cal=-0.126) is not greater than 1.96 nor is it less than

-1.96, therefore the null hypothesis is accepted. In the same token, the probability value (p-value) is 0.9, which is greater than 0.05 significance level, which can be decided as not significant. These two values imply that There is no significant difference between the mean ratings of male and female civil servants on the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.

DISCUSSION OF FINDINGS

Research question one was carried out to investigate how ethical leadership practices influence sustainable Economic development in Nigeria. The finding revealed that ethical leadership reduces corruption, ethical leadership increases productivity and profitability, ethical leadership practice increases access to a wealth of natural resources of the nation and ethical leadership helps to foster economic development for the poorest of the poor in the country. Findings were also in line with the findings of (Rahman 2016) who said that to achieve this, leaders at both national and organizational levels would have to adopt leadership styles that engender a sense of shared responsibility toward the attainment of this goal; one that is focused on the long term, and thus would establish systems that would persistently ensure the pursuance of this goal in the future; one that understands the need for collective effort (at both national and organizational levels) toward the attainment of the sustainability goal; one that is willing to learn; and, finally, one that is in itself ethical, and thus would impress upon followers the need to behave in a like manner. This is because the sustainable development agenda requires an all-hands-on-deck approach through a collective leadership approach between players in industry (including civil society groups) and government. However, as can be gathered from the African leadership landscape, it is evident that leadership in Nigeria lacks this approach to ethical leadership. This situation thus shrouds the possibility of Nigeria attaining sustainable development. The researcher also contributed that for African leaders, in both industry and government (especially government), to succeed in forging on toward the attainment of such a goal, they would have to conduct themselves in a responsible, transparent, and accountable in making good decisions for sustainable economic growth and development.The result from a test of hypothesis one indicates that there is no significant difference between mean ratings of male and female civil servants on how ethical leadership practices influence sustainable Economic development in Nigeria. This affirms the results from research question one and is in line with the submissions of Okoro (2020) and Adeyemi (2021).

Research question two was carried out to ascertain what ethical leadership contributes to achieving sustainable development goals related to economic growth in Nigeria. The findings revealed the eradication of extreme poverty and hunger in a nation, the development of global partnerships for sustainable development, achieving universal primary education, and the development of the nation’s infrastructure. These findings agree with the findings of (Chikendu, 2013) who thinks that to achieve a positive outcome in the sustainable development goals, a long-lasting development must be designed and implemented. That takes the focus on sustainable development. Under normal circumstances, ethical leadership is fundamental to every institution. With ideal ethics, a leader will ensure that he fulfills the socio-economic needs of the group and maintains economic discipline. Lack of ethical or morally upright leadership leads to wastage and embezzlement of public resources, thereby denying society an opportunity to sustain its development. The researcher is also of the opinion that unethical leadership has led to public resources embezzlement. Such a situation impedes the society’s sustainable development. Leadership for development must be accomplished; that is, he/she must work with honesty, fair dealing, and social responsibility, with such features, there will be transparency in resource management, equity in the distribution, and responsibility in administering environmental issues to the expectation of the future society. In this respect, transformational leadership is preferred since it demonstrates a capacity to seek the fulfillment of human possibilities and improve the community’s development in general.

Hypothesis two showed that there is no significant difference between the mean ratings of male and female civil servants on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria. This result solidifies those from research question two so do the studies (Chikendu, 2013).

Research question three investigated the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth. The findings revealed that the barriers are the absence of accountability and transparency, lack of rule of Law, corruption challenges, and poor resource management. The findings are in line with the findings of Ejimabo (2013) who stated that.

In Nigeria, most policymakers and those involved in decision-making are engaged in bribery, egoism, power, and trade liberalization. Fagbadebo (2017) also stated that the Nigerian State is a victim of high-level corruption, bad governance, political instability, and a cyclical legitimacy crisis. In the words of the researcher, the country’s authoritarian leadership faced a legitimacy crisis, and political intrigues, in an ethnically differentiated polity, where ethnic competition for resources drove much of the pervasive corruption, and profligacy, the researcher also made some contributions as the solution for addressing Nigeria’s problems and consolidating democratic governance in the federal republic lies in having a government or leadership that works on the principles of sustainable development and is, most importantly, accountable to the Nigerian people. Good ethical leadership in Nigeria is essential to its stability, growth, and development.

Test of hypothesis three revealed that there is no significant difference between mean ratings of male and female civil servants on the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth. In other words, both sets of respondents concurred with the findings in research question three. Prior studies by Ejimabo (2013) had similar findings as they identified by Fagbadebo (2017) as factors inhibiting the implementation of ethical leadership in the country.

CONCLUSION

Ethical leadership and Sustainable Economic Growth in Nigeria is important and will basically determine the transformation speed in overall economic growth and development in Nigeria.

RECOMMENDATION

1. Practices such as an all-hands-on-deck approach should be introduced as a form of ethical leadership practice to influence sustainable Economic development in Nigeria.
2. The importance of teaching ethics in schools cannot be overemphasized, it is essential for the formation and acquisition of virtues or good characters that are vital for contribution to the achievement of sustainable development goals.
3. Ensuring the building of good personalities from childhood is an intervention towards resolving the leadership crisis.

Implications of the Study

This study has implications for Nigerian leaders. Nigeria needs sound ethical leadership that is rooted in respect, service, justice, honesty, and community. Leaders who place fairness at the center of decision-making, including the challenging task of being fair to individuals as well as to the common interest of the community they serve. The country needs people who are educated, sincere, and honest both in administration and leadership styles. If all these are achieved, there will be improved and sustainable economic growth in the country.

Limitations of the Study

Some respondents were reluctant to give the necessary information required for this study. It took a lot of effort to convince them that the purpose of the information was only for research work.

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