My aim of researching on this topic; “problems of Banking Services Among commercial Institution in Nigeria.
(a case study of New Nigeria Bank Plc)
the research will focused on the evolution of commercial banks their function and problems affecting the banks.
The study will help other to know some of the problem that is affecting commercial banks; it will also examine the extent at which the problem can be solved and possible solution.
The entire project work will be divided into five chapters and the data for the study will be group into primary & secondary sources, the researcher will also make use of questionnaires, textbooks, literally materials and journals.
This work will also contain a very vital and current information which is believed will be of help to future researchers on this topic.
CHAPTER ONE
Introduction
1.1 Statement of problem
CHAPTER TWO
Evolution of banking in Nigeria
2.1 The Nigeria banking system
CHAPTER THREE
3.0 Data presentation and Analysis
CHAPTER FOUR
4.0 Introduction
CHPTER FIVE
Summary of findings
5.1 Conclusion
Banking is a commercial business in Nigeria economy and effective circulation of flow of capital (money) through the given economic units. It is meant to encourage economy growth and development in the Nigeria Economy.
Historically, the idea of banking in Nigeria dated back to the olden days when money was introduced in different forms as the means of exchange especially precious metals.
Peoples deposited their precious metals with goldsmith who in turn issue them receipts. As time went on, the goldsmiths realize that not all the money deposited with him is withdrawing at the same time.
He therefore decided to put all surplus money at his disposal into use as to earn return in addition to the cost charged for safe keeping.
This idea of banking continued into the earlier period of colonial administration in Nigeria.
Indeed, it will be, vetted that it was during the free – banking era that the three biggest foreign banks and two indigenous banks were established
The foreign banks were:
The Bank of British West Africa Limited (BBWA)
The Barclays Bank Dominion colonial and overseas.
The British and French Bank.
The Africa continental Bank limited was established in Lagos in 1894 and took over the Africa banking corporation establishment two years earlier in 1892.
The Bank of British west Africa therefore was the first surviving banks in Nigeria and remained the only bank in the country until it was joined by Barclays Bank eighteen years later in 1912.
Also, Barclays Bank becomes part of the Barclays group of bank in 1925.
The first Nigeria owned bank was established in 1929, the industrial and commercial bank of Nigeria. The bank however, went into liquidation a year letter after it was established because of bad financial management, inadequate capital & wave of economic depression, which affected the whole world at that time.
Two years later the Nigeria mercantile bank was formed in 1931, and in 1936 it also went into voluntary liquidation for the same reason. Before 1952, many indigenous banks were established but collapsed one after the other leaving the National Bank of Nigeria, Wema Bank and the Africa Centripetal bank as the only surviving Banks.
The failure of these banks led to the first banking legislation known as the 1952 Banking ordinance.
The ordinance required all banks to have a minimum capital of N50,000. It also defined the system licensing, as well as the provision, of liquidity requirement, maintenance of reserve and bank supervision.
Inspite of the enactment of the Bank ordinance of 1952, banks were still indulging in some malpractices, which the Act could not effectively control.
Therefore, the necessity of establishing a central bank to supervise and control the banks because more apparent and pressing.
Thus this led the passing of an ordinance in 1958, establishing the central Bank of Nigeria (CBN) commencing operation on 1st July 1959.
In order to create a shift to rural areas, the central Bank of Nigeria proposed a programme of Rural banking in 1977 with the primary objective of extending banking facilities to the rural area.
Under this scheme, the commercial banks were required to established new branches in the rural areas of the country. Each of the banks was allocated to specific geographical areas for this purpose.
With regard to the title of the study, “problem of Banking services Among commercial institutions in Nigeria”. A case study of New Nigeria Bank Plc Enugu; the aim of carrying out this research work will not be far fetched knowing fully well that our commercial banks are being called upon to leave up to expectation by the society, one therefore wonders what must be responsible for this low performance by the commercial banks.
Having viewed the whole situation critically for the improvement of their services to the society, we should first and foremost identify their problems.
More so, it should be noted here that banking is an industry and that they all have some identical problem. What union bank Plc. Suffers can be applicable to Afri – bank Plc. Also the problem experience by New Nigeria Bank Plc. Can likeness be applicable to zenith Bank Plc.
The fact that commercial banks have a common list of problems, the purpose of this study therefore is to treat a particular commercial Bank which is New Nigeria Bank (NNB) with its problems but with occasional reference to other commercial banks.
The purpose of narrowing the study to a particular bank is to create room for effective coverage as far as collection of data is concerned. Since one bank’s problem is common to other banks, invariably whatever the researcher shall be coming up with in this research study is looked upon as applicable to other commercial banks.
1.1 STATEMENT OF PROBLEM
Many bankers are ignorant of how to improve their services to their customers who are very much valuable to them. Most bankers do not consider the important of their customers welfare and this have be devilled the bankers/customers relationship.
Most commercial banks are encountering numerous problems and the researcher’s bank is an exception.
The following research question can therefore arise from this study:
Are there qualified personnel to efficiently and effectively manage the affairs of the banks in customers depositing and withdrawing of money?
Are the laid down conditions of granting loans and advances to customers properly followed?
The fact that customer spends more time in banks than thy expect, is it a result of the lackadaisical attitude of the banks staff?
1.2 OBJECTIVE OF THE STUDY
The objective of the project work is to analyze the problems associated with commercial banks/institution in Nigeria with special reference to New Nigeria bank and proffer solutions.
Some problems to be considered include the following.
Poor loan and advances
Under capitalization
Government Regulation
Liquidity Problem
Inadequate Mordern banking technologies
Lack of qualified personnel.
1.3 . SIGNIFICANCE OF THE STUDY
This research work will be of immense help to the bankers, banks management e.t.c. The fact is that through this study, problems and prospects of banking services among commercial institutions in Nigeria will be analysed and recommendation as to how the problems could be solved given. This would help the bank on how to improved on their day to day running of the banks.
In addition, this study will also benefit banks customers, as through this research works, commercial institutions will see to it that their customers are properly take care of.
This study will also serve as a guide to research students carrying out study on similar or related topic.
1.4 SCOPE OF THE STUDY
This study cover the “problems of Banking services Among commercial Institution in Nigeria” a case study of New Nigeria Bank Plc.
1.5 LIMITATION OF THE STUDY
Considering the few months in which the project work has to be carried out simultaneously with our usual class work, time and money without doubt are really limited factors.
In carrying out a research such as this, we are going to insure substantial transportation cost in traveling and going around from one area office to another. Thus, this would be constrained by lack of time, money and date.
1.6 RESEARCH METHODOLOGY
The method of collecting information and data for this study is solely centered on personal and oral interviews with the commercial banks’ staff, with special reference to the New Nigeria Bank, Enugu.
Relevant information was also collected from a cross section of customers that operate with the commercial banks through personal and oral interviews. This techniques was used because of the fact that not all customers and bank staff can respond when questionnaires method is used.
In addition, the secondary source of information gathering was through the use of some selected textbooks, journals, periodicals and business papers as financial times, business times etc.
1.7 STATEMENT OF HYPOTHESIS
Ho Commercial Institution in Nigeria are not efficient in granting of loans and advances to customers.
Hi Commercial Institution in Nigeria are efficient in granting of loans and advances to customers.
1.8. DEFINITION OF SOME TERMS
CBN – Central Bank of Nigeria. It control all the banking activities in Nigeria.
NDIC – Nigeria Deposit Insurance Corporation
BOFID – Bank and other Financial Institution
SHORT TERMS LOANS – Loans lent to individual borrowers with maturity period less than one year.
MEDIUM TERM LOANS – loans lent to individual borrowers with maturity period of 3 – 5 years.
LONG TERM LOANS – Loans lent to individual borrowers with maturity period of 5 years and above.
LIQUIDITY RATIO – Bank ration between their deposits with the CBN to its total deposit liabilities
PORTFOLIO – a list of security/investment held by an investor
PLC – Public Limited Company
LTD – Private Limited Company.
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