EQUIPMENT LEASING AS A SOURCE OF FINANCE, PRACTICE, PROBLEMS AND PROSPECTS (A CASE STUDY OF FIDELITY MERCHANT BANK ONITSHA). A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
PROPOSAL
In the course of my research work at Fidelity Merchant Bank(FMB) in Onitsha, I have found out that equipment leasing has become a source of finance. Also, my in depth study on equipment leasing has proven that is establishment will help very tremendously in financing investments.
Though the relevance of equipment leasing cannot be over –emphasized, it has its practices, problems and prospects. Having critically studied the problems associated with equipment leasing, I shall proffer solutions to them in conjunction with the authorities in the field with a particular reference to Fidelity Merchant Bank, Onitsha. My aim is geared towards putting in place a smooth leasing system as well as running the bank efficiently and effectively.
ABSTRACT
This aim of this study is to find out how the establishment of equipment leasing in the federation helped in financing investments. To carry out the study, four research questions and four hypothesis were formulated some are derived from the review of related literature.
In the study, a questionnaire was used to collect relevant data from the staff of fidelity merchant bank, onitsha, the case study and from some investing firms.
The findings revealed that FMB has positive perception that the establishment of equipment leasing in the federation helped in improvement of investments while lessess also have positive perception, better perception on all the issues raised in the research work.
The relative recent development of leasing in Nigeria as compared to other forms of credit has been said to be the reason for the stunning lack of information about it and the options it offers to the business concern in Nigeria. This lack of information is pitiful in that most members of the public are not even aware of its presence in Nigeria. The need for organized and comprehensive information could not be over emphasized.
Furthermore, being new, most investors are not really well informed as to the profitability or otherwise of leasing as finance option, hence, the low level of forms that engage in leasing which goes to compound the problem of the Nigeria investor not having much choice as to the best alternative available to him.
Subsequently, this study will go a long way in projecting the profitability and future prospects of leasing business in Nigeria and also contributing to the development of leasing in Nigeria which under the present economic conditions, its importance can not be over-emphasized.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Available records indicate that first lease transaction in Nigeria was said to have taken place in the early ‘60s through off-shore united kingdom leasing companies. With the outbreak of the civil war in 1967, these leasing transactions become impossible due to stringent exchange control measures introduced by the military government of the day.
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