ABSTRACT: The entrepreneur must have a range outlook on the intended business investments, business investments, examine the alternative uses of capital and account for financial requirement and carry sensitivity and risk analysis. This study promises an analysis and illustration of the principles of feasibility and viability appraisals and highlights the essence of the subject matter. It also brings into focus the accountants essential contributions, which have hitherto tended to be cost in wide diffusion. In view of the objective of the study, the literature review examines the views of various writers on the subject matter. Its emphasis is on meaning, importance and components of feasibility and viability studies historical perspective and the role of the accountant thereof. Research design and methodology details the method used in carrying out the research for the project. It specifies the sources of data, target population, sampling method and also describes the research instruments and method of administration and analysis of data. Data presentation and analysis presents a feasibility case study of household cassava – starch milling plant. It details the findings of the researcher regarding the project and examines.Specifically the marketing, technical economic and social factors involved. Financial analysis and evaluation provides an illustration of the role of the accountant in a practical project appraisal situation. It details the application of the data presented above in making relevant financial projections for 5 years. Also a matching of the projected cost against the projected revenue is done. In conclusion, this study centered on the role of an accountant in a project evaluation which has been demonstrated in this study by the viability appraisal of operating a starch milling plant.
TABLE OF CONTENTS
CHAPTER ONE
1.1 Background to the study
CHAPTER TWO
2.1 Meaning and significance of feasibility and viability appraisal
CHAPTER THREE
3.1 Research design
3.2 Population and sample size
3.3 Research instrument used
3.4 Design of interview guides
CHAPTER FOUR
4.1 Data presentation and analysis of result
CHAPTER FIVE
5.0 Summary of findings, recommendations and conclusion
References
Appendix I
The rigours and strains of borrowing, especially in Nigeria and Africa in general are not doubt enormous.
The fault is not that of the lenders (banks) alone as critics claim that the borrowing public is partly responsible for the frustrations. A large portion of the borrowing public is substantially under-educated (about borrowing with this regard, they approval heir prospective lenders unprepared and largely ignorant of the whys and what’s of their request. A substantial number of people who approach banks for loans have no business going to the banks to borrow in the first place. If at all their business and needs are gerund, perhaps they should have tried their friends, relatives or associates first before going to bank to borrow. No one can fault the bank (lender) on their criteria because the bank is also in business to stay and grow.
Among all other activities of the bank lending is the most vital bank undertaking which should be carefully emphasized, may because it is the most profitable undertaking of the bank or its contribution to the economic growth of the country in general
The federal reserve’s system,. Financial intermediaries, government and business can be thought of making up the financial environment within which we all strive to achieve our goals but which largely is beyond the control of any single decision unit. Due to the lack of substantial knowledge about the behaviour of this financial environment, however, we are advised to enhance that knowledge. It seems clear to me that we all have an interest in the development of empirically substantiated theories of behaviour of a financial economy. After-all, failure of broad section of the economy, whether in the form of inflation’s, mass bank failure or in dispread business closing is a situation whereby large portion of the borrowing with the result that they approach their prospective lenders unprepared.
The burden of proof is therefore in the prospective borrows should be educated, and get educated is therefore the message of this topic. It is a further contribution to the promotion and development of an improve business culture by helping to educate the borrowing public. The most critical Turing in a loan proposed are really simple ordinary things that many borrowers especially first time borrowers and small scale enterprises regard as unnecessary and in consequential. The borrower should know that the loan officer cares about the neatness of the documents presented, the language of ht proposal, its substance, the character of the promoters and borrowers is of consequence to the loan offer decisions criteria because he associates. These with the ability of the borrower to perform maintain control and achieve the designed results and finally to pay back the loan.
Areas of general interest to lenders include,
This study represents a modest effort to provide substantial information about that part of the financial environment which is the criteria of borrowing and repaying business loan as a guide towards economic development
1.1 BACKGROUNDS; THE DEVELOPMENT OF BANKS IN NIGERIA
The development of banks may be divided into three periods, partly arbitrarily as any such periodization may be. A preparatory period ending in 1950 to 1960’s during which time the essential features of banking, as we know them developed.
At the turn of the century, the range of institution included those that specialized in exchange and merchant operation, individual money lenders, rotating credit associations and bank of British west Africa founded in 1980 by sir Alfred Jones. Not until the beginning of the fifties, banking in the main was largely rudimentary, differing greatly from present day institutions not only in size but also in sources and use of their funds.
Banking operations are more of less continued to large centers of overseers trade and even then, the banks had little contracts with nature public except for a small amount f savings business.
In 1957, the two expatriate banks BBWA and bar days bank had in all forty-six branches in west Africa-adding about six indigenious bank was found in 1933 and the beginning of 1951, five more were formed and in the fifteen months between February 1951 and May 1952, not less than 18 indigenous banks were registered with one exception, they had all leased operation by 1945
Bank failure such as these, weekend public confidence in indigenous banks. The failure of these banks appeared to be the cause many Nigerians decided to be keeping their savings at home or in other instruments seeing banks as unreliable. Nevertheless, rapid expansion and evidence of past financial heritable continued and by 1962, there were over two hundred banks offices in Nigeria. From this, one can then say that the banking system has made undertaken over this short periods, a remarkable penetration into domestic business and be hold it continuous operation.
The total number of indigenous banks and other banks was 18 at the of August 1976 with 459 branch offices including offices of the six merchant banks. The earliest attempt to regulate the business of banking was made only in may 1952 when the first banking ordinance was passed. This ought to have been done earlier. By then, a greater number of he public had been induced to deposit money in the banks of indigenous ownership and questionable reliability.
The most of these pseudo-banks failed mainly as a result of dishonestly and incompetent management, inflicting considerable hardships on the unfortunate.
At the time of ordinance, banking in Nigeria was mainly in bank of the two British banks between then, they had a total of 26 branch located mainly in the large towns and although they had even in those days many thousands of African customers maintaining small interest bearing savings, accounts. African current account holders were comparatively few
The business of the British banks at that time consists of conducting the government account and those of British trading companies together with personal accounting civil servants and commercial and professional people, mostly expatriates.
The two British banks did not confine their expansion merely to the numerical total of their contract with African customers became more closer. Not only did they in bother their new and old field press forward their essential tasks of attracting more deposits, they also moved with increasing mention into the much more advections field of indigenous lending.
Here, their tasks were made more difficulties and hazardours then they would otherwise here been by the almost completed absence of acceptable tangible security for advances. For example, Nigeria has Never had a modern system of land tenure or registration most of the hand were still communicably owned and such cannot in law be assigned to a foreigner except by government consent even where forms of registration exist.
The lack of active interest on the African community was the subject of much African criticism they had in succeeding year. Thought the much of the criticism was ill-formed and unjustified, there is no doubt that it played a part in influencing the banks in later years to undertake a more deliberate and forceful penetration into African business.
It was one factor in the tremendous subsequent expansion of the number and spread of their branches throughout the country..
By 1958, ending a sizeable chain of British bank branches had been established. These undoubtedly, proved a solid value in the general advance of the economy. Without then, it would have been far more difficult if not almost impossible for the marketing boards for example to have arranged the orderly purchasing from the peasant growers in the remote district of steadily increasing volume of export crops which also market the period
Meanwhile, some expansion, on a comparatively small scale took peace in those few indigenous banks which weathered the storms of the early and middle fifties.
This project research is only limited to first banks of Nigeria plc for over a century has distinguished itself as a leading banking institution ad major contributor to the economic advancement and development of Nigeria. Founded in 1894 by a shipping magnet from liver pool, sir Alfred Jones. The bank commenced as a small, operation in the office of Elder Dempter and company in Lagos. It was incorporated as a limited liability company on March 31, 1894 with the Head office in Liverpool.
It has a network of 315 branches spread throughout the federation including one in the city of London, the bank maintain the largest branch network in the industry.
In 1957, it changed its name from bank of British west Africa to bank of west Africa in 1969
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