IMPACT OF DEBT FINANCING ON THE GROWTH OF MANUFACTURING FIRMS IN NIGERIA

CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND TO THE STUDY
Manufacturing firms are considered important in both developed and developing countries. They are producer of goods and services which help to increase economic growth and contribute significantly to employment creation. Although they play a crucial role in economic growth and employment and their operations are often crippled by lack of adequate financing from financial institutions. The main purpose of this research is to examine the impact of debt financing on the growth of manufacturing firms in Nigeria. A manufacturing firm can finance its operations either through equity or debt. 
Debt financing is cash borrowed from a lender at a fixed rate of interest and with a predetermined maturity date. The principal must be paid back in full by the maturity date, but periodic repayments of principal may be part of the loan arrangement. Debt may take the form of a loan or the sale of bonds; the form itself does not change the principle of the transaction: the lender retains a right to the money lent and may demand it back under conditions specified in the borrowing arrangement. 
Lending to a manufacturing firm is thus at least in theory safer, but the amount the lender can realize in return is fixed to the principal and to the interest charged. Investment is more risky, but if the manufacturing company is very successful, the upward potential for the investor may be very attractive; the downside is total loss of the investment. Manufacturing firms can obtain debt financing from a number of different sources. Private sources of debt financing include friends and relatives, banks, credit unions, consumer finance companies, commercial finance companies, trade credit, insurance companies, factor companies, and leasing companies. Public sources of debt financing include a number of loan programs provided by the state and federal governments to support manufacturing firms. Manufacturing firms need capital in their operations. They can finance their operations using internal funds, debt and equity. 
Debt finance is raised by borrowing from financial institutions. A lot of research has been carried out focusing on the impact of debt financing on growth of firms. The results from these studies are inconsistent. Cecchetti et al. (2011) studied the effects of debt on firms and concluded that moderate debt level improves welfare and enhances growth but high levels can lead to a decline in growth of the firm. Rainhart and Rogoff (2009) argued that when debt impacted positively to the growth of a firm only when it is within certain levels. When the ratio goes beyond certain levels financial crisis is very likely. The argument is also supported by Stern Stewart and Company which argues that a high level of debt increases the probability of a firm facing financial distress. 
Over borrowing can lead to bankruptcy and financial ruin (Ceccetti et al., 2011). High levels of debt will constrain the firm from undertaking project that are likely to be profitable because of the inability to attract more debt from financial institutions. The nature of debt is an important determinant of the growth of a manufacturing firm. Jaramillo and Schiantarelli (1996) stated that the availability of long-term finance allows manufacturing firms to improve their productivity. If a firm has access to long-term debt finance, it can invest in new capital and equipment which helps to increase productivity. 
According to Marcouse (2003), by investing in more modern and sophisticated machines, productivity per worker increases. Ventire et al. (2004) adds that modern know-how fuels greater output per unit of effort. The manufacturing firm can also invest in new technologies which are more productive. The inability to access long-term finance can force manufacturing firms to use short-term debt to finance long-term projects. This will create mismatches of assets and liabilities and depletes working capital. Depletion of working capital will negatively affect firm operations. It is crucial that the primary source of loan repayments should be cash flows from the project. 
1.2   STATEMENT OF THE PROBLEM
For a manufacturing firm to grow, there need for the firm to operate efficiently in production. This can be achieved when the firm has enough funds for investment in productive new technologies. Manufacturing firm can invest using internal funds, debt or equity. Nigerian manufacturing firms emerged from a severe economic-downturn which resulted in dilapidated infrastructure. There is need for massive investment in machinery and latest technologies in order to raise the operations of the manufacturing firms. Many manufacturing companies are closing down operations although financial institutions have been financing them. However, the examiner seeks to examine the impact of debt financing on the growth of manufacturing firms in Nigeria. 
1.3   OBJECTIVES OF THE STUDY
The following are the objectives of this study: 
1.  To examine the impact of debt financing on the growth of manufacturing firms in Nigeria. 
2.  To identify the sources of Finance for manufacturing firms in Nigeria. 
3.  To ascertain the level of growth in the Nigerian manufacturing firms. 
1.4   RESEARCH QUESTIONS
1.  What is the impact of debt financing on the growth of manufacturing firms in Nigeria? 
2.  What are the sources of Finance for manufacturing firms in Nigeria? 
3.  What is the level of growth in the Nigerian manufacturing firms? 
1.5   HYPOTHESIS
HO: Debt financing has no effect on the growth of manufacturing firms in Nigeria. 
HA: Debt financing has effect on the growth of manufacturing firms in Nigeria.
1.6   SIGNIFICANCE OF THE STUDY
The following are the significance of this study: 
1.  The results from this study will be a useful guide for manufacturing companies in Nigeria on debt management using the information obtained from the relationship between debt financing and the growth of manufacturing companies in Nigeria. 
2.  This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic. 
1.7   SCOPE/LIMITATIONS OF THE STUDY
This study on the impact of debt financing on the growth of manufacturing firms in Nigeria will cover all the sources of funds e.g. loans to the manufacturing firms in Nigeria. It will also cover the effect of debt financing on the profitability of manufacturing firms in Nigeria. 
LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).  
Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.   

IMPACT OF INTERNET BANKING ON CUSTOMER SATISFACTION

CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND TO THE STUDY
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is also defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products or its services (ratings) exceeds specified satisfaction goals (Farris, Paul W et.al.2010). And yet another definition of customer satisfaction is it refers to the extent to which customers are happy with the products and/or services provided by a business. Further definition of customer satisfaction is it is a term generally used to measure a customer’s perception of a company’s products and/or services. It’s not a straight forward science however, as customer satisfaction will vary from person to person, depending on a whole host of variables which may be both psychological and physical. 
The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale (Westbrook, 1980). Technology is making a tremendous impact upon banks in general and the financial services sector is no exception. The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamentals importance and concerns to all banks and indeed a prerequisite for local and global competitiveness in banking industry. As a result of this technological improvement business environment in financial sector is extremely dynamic and experience rapid changes and demands banks to serve their customer through the use of internet. 
The evolution of internet banking started from the use of Automatic Teller Machine (ATM) and Finland is the first country in the world to have taken a lead in internet banking (Mishra,R. and Kiranmai,2009). Internet banking has been widely used in developed countries and in developing economies; however, the spread of internet banking is much limited. Today, almost all banks are adopting internet banking as a means of enhancing service quality of banking services. They are providing internet banking to their customers to increase customers‟ satisfaction in banking service (Shittu, 2010). 
Customers in Nigeria are late adopters of the Internet and its applications with regards to internet baking. However, issues like machine out of order, machine out of cash, no printing statements, cards get blocked, frequent breakdown of ATM service, unreliability of ATM service, lack of sufficient technicians in all bank who solve breakdown of ATM machine, lack of sufficient alternative system which substitute ATM service for the customer when temporary problem happen in the machine, lack of convenience of internet-bank service, lack of mobile banking service, lack of reliable TelInternet banking , lack of credit card service, under-development of technological infrastructure, low level of relevant knowledge creation and innovation, interruption of network, lack of suitable and regulatory frame work for e-commerce, resistance to changes in technology among customers and service providers as result of fear of risk, lack of fair distribution of internet banking service in all over Nigeria. All these has created doubts in the minds of customers thereby affecting their level of satisfaction.   
1.2   STATEMENT OF THE PROBLEM
The introduction of internet banking in to the banking sector is to bring customer satisfaction there by to enhance the banks‟ profitability. Unless this technology bring increase customer satisfaction than the traditional brick and mortar branches customer may perceive as the same as different branches rather than a new means of delivery channels. 
Daniel (1999) and Mols (1998) described that compared to ordinary banking system; internet banking is providing the competitive advantage by lowering the cost and providing best satisfaction of customer needs. The old age people are generally shy of use of ATM because of perceived risk of failure, complexity, security, and lack of personalized service (Moutinho, 2000). Applegate (1996) also described the benefit of internet banking from customer point of view; convenient and valuable source to deal with funding because it provides convenience to access account throughout the day that is access is not limited to banking operation hours and available around the clock. This study is analyzing the impact of internet banking on customer’s satisfaction. 
1.3   OBJECTIVES OF THE STUDY
The following are the objectives of this study: 
1.  To examine the components of internet banking in Nigeria. 
2.  To examine the impact of internet banking on customer’s satisfaction. 
3.  To determine the factors limiting the use of internet banking by Nigerians.
1.4   RESEARCH QUESTIONS
1.  What are the components of internet banking in Nigeria? 
2.  What is the impact of internet banking on customer’s satisfaction? 
3.  What are the factors limiting the use of internet banking by Nigerians? 
1.5   SIGNIFICANCE OF THE STUDY
The following are the significance of the study: 
1.  Outcome of this study will be a useful guide for the managements of banks in Nigeria at determining the impact of internet banking on customer satisfaction. 
2.  This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic 
1.6   SCOPE/LIMITATIONS OF THE STUDY
This study on the impact of internet banking on customer satisfaction will cover all the components of internet banking with a careful examination of its impact on customer’s satisfaction.   
LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).  
Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

IMPACT OF ELECTRONIC BANKING ON CUSTOMER SATISFACTION

CHAPTER ONE
INTRODUCTION
1.1.    BACKGROUND OF THE STUDY 
The rapid changes in business operations in contemporary times in the form of technological improvement require banks in Nigeria to serve their customers electronically. Traditionally, banks have been in the forefront of harnessing technology to improve their products and services. The banking industry and its environment in the 21st century is highly complex and competitive and therefore the need for information and communication technology to take center stage in the operations of banks (Stevens, 2002). Electronic banking is critical in the transformation drive of banks in areas such as products and services and how they are delivered to customers. Thus, it is seen as a valuable and powerful tool in the development, growth, promotion of innovation and enhancing competitiveness of banks (Gupta, 2008; Kamel, 2005). 
Given the significant role of electronic banking in the developmental drive of banks, information technology has been found to lead to improvement in business efficiency and service quality and hence attract customers as well as retain them (Kannabiran& Narayan, 2005). According to Chang, (2003), Electronic banking contributes significantly to the distribution channels of banks such as automated teller machine (ATM), Phone –banking, Tele-banking, PC-banking and now internet banking (Chang, 2003). In addition, transfer of funds, viewing and checking savings account balances, paying mortgages, paying bills and purchasing financial instruments and certificates of deposits processes have improved significantly as a result of internet banking (Mohammed et al., 2009). This implies that, Electronic banking has resulted in efficiency in service delivery in the banking sector because customers can transact business from one side of the country to another and from both long and short distance. 
Other scholars argued that, electronic banking has transformed traditional banking practices to the extent that it has been found to create a paradigm shift in marketing practices resulting in positive performance in the banking sector (Gonzalez, 2008; Maholtra& Singh, 2007). This shows that the delivery of efficient and quality service is facilitated by information technology. Similarly, Christopher et al. (2006) indicated that electronic banking provides an important channel to sell products and services of banks and is perceived to be a necessity for banks to be successful. Therefore, service quality and efficiency in the banking industry has increased tremendously worldwide in the world due to the integration of information technology into banking operation. The present study seeks to investigate the extent to which the electronic banking concept has impacted on customer satisfaction in Commercial Banks.  
1.2. STATEMENT OF PROBLEM
All banks compete with each other to attract their customers in different ways through providing convenient, accessible and acceptable services or/and products to their customers. One of the most important of these services is the electronic services that have contributed significantly to increase the distance between costumers and the bank (Almazari and Siam, 2008). E-banking was adopted by banks so as to improve their service delivery, decongest queues in the banking hall, enable customers withdraw cash 24/7, aid international payment and remittance, track personal banking  transaction, request for online statement, or even transfer deposit to a third party account. 
Despite the effort of banks to ensure that customers reap the benefits of e-banking, the bank is met with complaints from customers as regards, malfunctioning Automated Teller Machines (ATMs), network downtime, online theft and fraud, non-availability of financial service, payment of hidden cost of electronic banking like Short Message Services (SMS), for sending alert, mandatory acquisition of ATM cards, non-acceptability of Nigerian cards for international transaction amongst others. This study is aimed at finding out the reason why these problems occur and in most cases persist, and then to make recommendations based on the outcome of the study.    
1.3. OBJECTIVES OF THE STUDY 
The general purpose of the study is to investigate the impact of electronic banking on customer satisfaction in Guarantee Trust bank plc. However, the study specifically seeks to:                           
1.  Identify the Electronic banking services offered by GTB and its usage by customers 
2.  To determine the impact of electronic- banking services on Customer Value.
3.  Examine the impact of electronic banking on service delivery; 
4.  Identify customers‟ level of satisfaction with service delivery given the introduction of electronic banking services. 
5.  Identify the benefits to customers for using e- banking services. 
6.  Identify the challenges facing effective implementation of electronic banking system in Nigeria   
1.4. RESEARCH QUESTIONS/HYPOTHESIS
Based on the research objectives, the study will test the following questions:  
1. What are the electronic banking products of Guaranty Trust Bank Nig Plc? 
2. Has the introduction of e-banking significantly affected service delivery of Guaranty Trust Bank NigPlc? 
3. Has e-banking positively affected service delivery in Guaranty Trust Bank NigPlc? 
4. What are the possible solutions to e-banking challenges in Nigeria? 
5. Given the usage of Electronic banking services, how satisfied are customers of the bank?       
Based on the study problem, this study aims to test the following hypotheses:   H0: Electronic banking products and services have not significantly improved customers satisfaction   
HA: Electronic banking products and services have significantly improved customers satisfaction       
1.5. RELEVANCE/SIGNIFICANCE OF THE STUDY
The introduction of electronic into the banking industry has affected service delivery in the service industry. Many banks are shifting gradually from the traditional way of banking and are gradually introducing electronic technologies into their service delivery. The outcome of this study will be of immense benefit to the management of GTB Bank Nigeria Plc, since it will help identify most of the challenges faced by the banks as well as the complains table by the customers. Solutions will then be proffered on theses identified challenges. This will go a long way to help the bank achieve its stated objectives, and in the long run increase shareholder’s wealth. Furthermore, the study would enable banks executives and indeed the policy makers of the banks and financial institutions to be aware of electronic banking system as a product of electronic commerce with a view to making strategic decisions.   
1.6  LIMITATIONS OF THE STUDY
There were some limitations during the study 
1.  Respondents were too busy to read the questions properly and tick the answer just for the sake of completing the survey quickly so there is no guarantee that the data collected is 100% correct and hence while analyzing the researcher has considered level of significance. 
2.  At most cases I had to ask respondents questions in local dialect 
1.7  DEFINITION OF TERMS
Electronic banking: The definition of e-banking varies amongst researches partially because electronic banking refers to several types of services through which a bank’s customers can request information and carry out most retai l banking services via computer, television or mobile phone (Lustsik, 2004). Electronic banking can be defined as the provision of information or services by a bank to its customers, describes it as an electronic connection between bank and customer in order to prepare, manage and control financial transactions (Karjaluoto, 2002).

IMPACT OF MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY. CASE STUDY OF NIGERIA BOTTLING COMPANY

CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND TO THE STUDY
Although, there is general agreement among psychologists that man experiences a variety of needs, there is considerable disagreement as to what these needs are and their relative importance (Van Rooyen, J.  2006). One of the basic problems in any organization is how to motivate people to work. Motivating people to work entails, meeting their needs. This is because people working in the organization to meet workers needs affect the satisfaction, which the workers derive from their job. The satisfaction that the workers derive from their job can affect their motivation to work. 
People are motivated by various factors at different times, according to Wilkinson et al (2007) the first factor is the combination of the individual perceptions of the expectations other people have of them, and their own expectations of themselves. This happens because people come into work situations with various expectations.  When they arrive at the work place, they meet other people who also have expectations of them; positive individual and group expectations serve as positive motivational factors for the worker. This is why a balance must be struck as much as possible between organizational objectives and individual aspirations (Sulcas, P.  2007). 
The essence of this is to ensure a situation where the individual is motivated while the organization is achieving established objectives. The second factor deals with the issue of self-images and concepts as well as life experiences and personality. These factors have to be positively motivated in the worker to yield proactive behaviour. This can be achieved through a carefully planned reward system, which is a type of reinforcement directed at modifying people behaviour. Those who occupy management positions in organizations encourage behaviour basically through the means of positive reinforcement. Positive reinforcement boosts favourable consequences that go a long way to encourage the repetition of particular behaviour (Adonisi, M.  2005).  
It is therefore important for the management to ensure that they motivate their employees to achieve the set goals and objectives of the organization. The management of an organization can motivate its employees if it’s able to study the characteristics of the employee and know what actually motivate them to productivity. It is in view of this that this study wants to look at motivation of employees as tool for improving organizational productivity, by using the Nigeria Bottling Company as a case study. 
1.2   Statement of the Problem
Organization exists for the purpose of rendering some services. For the organization to meet its objectives, people are employed in the organization in order to help the organization meet its objectives. Thus, in order to ensure that people employed in the organization perform optimally towards the realization of organizational goals, they need to be motivated to work. Motivating people to work entails meting their needs. 
There is a great controversy over the issue of motivating people. Some people are of the view that such extrinsic factors like money, praise, and quality of supervision and company’s policy can motivate people to work, while others are of the view that such extrinsic factors like advancement quality of the job done by person, recognition and growth can motivate workers to productivity. It is in view of these controversies that this study wants to look at the motivation of employees in the organization by using Nigeria Bottling Company as a case study; and in doing this, the following questions arise: 
1.3   Research Questions 
It is in view of the above problems that the following questions arise: 
1.   What are the factors that motivate employees to perform in an organization? 
2.   What are the available techniques of motivating employees for higher productivity? 
3.   Do motivation actually steer employees productive capacity? 
4.   What are the problems militating against employees motivation, and 
5.   How can these problems of employees’ motivation be addressed in order to improve productivity in the organization? 
1.4   Objectives of the Study.
This research work hopes to achieve the following objectives: 
1.   To examine the factors which motivate employees to perform in the organization 
2.   To look at various techniques of motivating people to performance in the organization, 
3.   To ascertain the effect of motivation on workers productivity. 
4.   To identify the problems associated with the motivation of workers in the organization. 
5.   To suggest the solutions to such problems, if any. 
6.   Finally, to improve people’s knowledge in this area of organizational behaviour.   
1.5   Research Hypotheses
The following hypotheses will be tested in this study: 
1.           Ho: The quality of supervision will not motivate workers productivity.
              Hi: The quality of supervision will motivate workers productivity.
2.           Ho: A worker’s perception of what obtained in his organizational will not motivate him to greater productivity. 
              Hi: A worker’s perception of what obtained in his organizational will motivate him to greater productivity. 
3.           Ho: A worker’s perception of organizational appraisal policy will motivate him to greater productivity. 
              Hi: A worker’s perception of organizational appraisal policy will not motivate him to greater productivity. 
4.           Ho: The worker’s satisfaction with its fringe benefits will not motivate him to greater productivity. 
              Hi: The worker’s satisfaction with its fringe benefits will motivate him to greater productivity. 
1.6   Significance of the Study 
This study will educate the management of the organization (especially the organization under study, Nigeria bottling company) on how to motivate their workers to productivity. The findings of this study will generate people’s interest in researching into other areas of motivation in the organization will enrich the literature on motivation as a phenomenon. Finally, the study hopes to enrich people’s knowledge in this area of organizational behaviour and management of people in the organization. 
1.7   Scope of the Study 
This study is on impact of motivation on organizational productivity. The study will also covers the various techniques of motivation and theories of motivation as they impact on employees productivity in an organization. The study will cover a period of ten (10) years of organizational performance. 
1.8   Limitation of Study
The study is limited to the employees’ motivational factors, and its effect of organizational productivity. The study does not consider other variables and as such is limited to only those areas specified above. Also, it does not cover all sectors of the Nigerian economy. The Power Holding Company of Nigeria is only one area of the economy that is responsible for power generation and distribution in Nigeria, and as such the study does not look into how these motivational factors work or influence productivity across other sect ors. 
1.9   Organization of Study 
For an orderly presentation of this study, this research essay has been divided into five (5) chapter; the first gives an introduction of the study, chapter two focuses on literature review, chapter three talk about the methodology, chapter four is the analysis and presentation of data for this study, and the last chapter summarizes the study and gives useful recommendations. 
1.10   Operational Definition of Terms
The following terms were defined as used in this study: 
Productivity: Is the ratio of output or production capacity of the workers in an organization. It is the relationship between the amount of one or more inputs and the amount of outputs from a clearly identified process. 
Employeesare the workers in an organization, working for the accomplishment of the organizational goals. In this study, the employees are those staffs of the organization, PHCN. 
Motivation: Motivation is a decision-making process, through which the individual chooses the desired outcomes and sets in motion the behaviour appropriate to them”. 
Adequate Motivation:  These are factors (familiarity, concern and driving force), which exist or are provided in a work situation either physically or psychologically which determine the input and productivity level of the worker.
Intimacy:  Intimacy or Familiarity could be described as the feeling of warmth and friendliness based on interpersonal relationship among people.
Consideration: Consideration or Concern refers to a situation where both their colleagues and managers treat staffs with understanding. In this case, there is both a personal and human touch in dealing with workers. 
Morale: Moral refers to staff emotional and mental level of zeal.       

INFLUENCE OF INFORMAL GROUPS ON PRODUCTIVITY IN AN ORGANISATION

CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND OF THE STUDY An organization’s development is a vital exercise that must be carried out with a successful conclusion if technological bondage is to be avoided in the nation. In our society today there is need for adopting a creative approach for our technological take off. The reason is to encouraged employees to cultivate the ability of making maximum use of resource available to them, develop new ways of resources utilization that may come in the course of their job.           
Since Nigeria independence, the nation has gone through a gradual rise in the level of industrialization and the evolution of both small and complex organization. An organization as defined by Griffin (1984:86) is a combination of people, or human efforts, working in pursuit of certain common purposes called organization goals. It is any group of two or more people working to achieve a goal or goals. Organization range from the small business units to the very large and complex corporate bodies. There are two groups the formal and informal groups. The formal group come into being as a result of organizational hierarchy which defines expected relationships among its workers in most cases, a group of people come together and discuss about the problems of the company, individual problems and how the problems should be handled. Also, talk about those with different opinion from other and how such people should be treated or handled. Furthermore, this kind of group will usually have its mission or area of activity spelled out.           
Informal groups, on the other hand, Michael (1985:1990).develop in response to the needs of the people making up the group. As a result they do not have an explicitly stated set of goals nor are there institutionally defined in and position of authority. These aspects of an informal group develop as a result of group of individual with the same objectives. Hence, informal groups are not set up by the management of the organization but arise as a result of people with similar interest interacting and also as a result of friendship association. Most cases, group of people come together and discuss about the company’s problems, some individual problems and how they should be dealt with, does who have contrary opinion from others would be convinced, are forced to accept the opinion spell out by other members of the groups.            
The above comment succinctly shows the existence of informal groups in an organization. These groups although not created by the management of the organization are very powerful and have considerable influence on individual members. Members are observed to be often committed to the achievement of the group objectives. These objectives of the informal groups sometimes go contrary with organizations objectives.           
Therefore it is very important for the management to be aware of the existence of these groups and understand how they work. Some managers fail to realize the fact that informal groups work under certain conditions which dominate the formal organization and neglect the efforts of management.           
Moreover, they can be pervasive with some managers themselves belonging to the informal groups. Depending on whether they are favourable or unfavourable, this may result to the increase or decrease in the productivity of the organization. Improper management of the informal groups may also lead to dissatisfaction of workers, absenteeism, personal turnovers, grievances and conflicts and these may adversely affect the stability of an organization. As a matter of fact, there are potential benefits to be tapped from the existence and activities of the informal groups. The management can only tap the benefits when it is willing to work with them effectively without engaging in measures to suppress the informal organization. 
1.2Statement of the Problem
Management of organizations have been trying to improve individual productivity through researches and product development, employment of high skilled and experienced workers. Despite these efforts, productivity is declining in a organization who is to be blamed is still declining or has remained low and unimpressive. What is actually responsible for the continuous decline in productivity despite serious efforts by the management, who have control over these group is yet to be achieved from the above assertions, it become imperative or necessary to research and conduct an assessment on the influence of informal groups on organizational productivity. Do informal group activities influence organization decision-making? To provide answers to this problem motivated the researcher to carry out this project. It become imperative or necessary to research and conduct an assessment on the influence of informal groups on organizational productivity. 
1.3  Objective of the Study
The objectives of this research are: 
1.     To determine the effects of informal group activities on organization productivity. 
2.     To find out the actual relationship between the informal groups and management in the organization. 
3.     To discover the concern and contribution of informal groups towards the realization of the organizations objectives. 
1.4Research Questions
The researcher formulated under listed questions to provide a guide in the course of this research. 
1.     To what extent do informal group activities affects organizational productivity? 
2.     What is the actual relationship between  informal groups and management in the organization? 
3.     To what extent informal group influence the organizational productivity?
4.     To what extent do informal group activities contribute to the realization of the organizational objectives? 
1.5   Significance of the Study The existence of informal groups in organizations have negative or positive influence which may pronounced or silent but vital to the achievement of organizational objectives. Understanding and controlling the informal group activities might become possible when an empirical study has been conducted and some facts about the relationship existing between these factors informal groups, formal groups and the management within an organization are revealed the identification of the needs of the individual workers will help the management to motivate the workers better for improved productivity.           Thus, the research would be useful to organizations, academia and consultants to organizations. If also provide a platform for further work on the topic by other scholars. 
1.6  Limitation of Study
Research works are subject to one form of limitation or the other especially during a period of economic meltdown. Thus the researcher was financially constrained to elaborately, thus this research was limited to University of Nigeria Teaching Hospital, Enugu. During the course of the study, the respondents got a lot of information concealment. Equally time constraints affected the research considerably as the period was too short for submission of this research. 
1.7    Scope of The Study 
The scope of this study was limited to cover type of groups, reasons for joining groups, activities of informal groups infor mal group leadership roles, problems of informal groups and the effects on the productivity in the organization. 
1.8    Definition of Special Terms
For easy understanding of this work the following technical terms are necessary to be interpreted by the researcher: 
UNTH: University of Nigeria Teaching Hospital 
WAEC: West African Examination Council 
HND: Higher National Diploma 
OND: Ordinary National Diploma 
BSc: Bachelor Degree of Science         

INVENTORY MANAGEMENT AND CONTROL: A STRATEGY FOR EFFECTIVE PRODUCTION

CHAPTER ONE 
INTRODUCTION 
1.1     BACKGROUND OF STUDY 
It is generally accepted that the primary objective of most business enterprise is to make profit by identifying and serving the needs of customers. Thus, profit being the principal source of growth and continue existence of the business enterprise, serves as and index by which the performance of an enterprise can be evaluated over time. In manufacturing Organizations, profit maximization is made possible through sale promotion, production of high quality products and effective control of inventory. Inventory constitutes a significant part of product cost. 
According to Okoye A.E. (1997) inventory constitutes over sixty percent of the cost of production. In view of this, inventory management and control is important in a manufacturing organization. Effective production relate to the process of identifying the needs of customer and delivery goods or services to meet their needs. Control of inventory enable manufacturing Organization to keep stock; inventory that are necessary to satisfy the needs of customers and have a balance between maximum and minimum stock level. If production and delivery of goods could be instantaneous, there would no need for inventory except as a safe guard against price changes. 
Despite the achievements of computers, automation and scientific management. Inventory control is necessary from the time orders are placed for material to the time they are consumed. The importance of inventory control lies in the fact that any saving made in reducing the cost of production, improves profitability of the business. In a competitive business environment, inventory control in the long run determines not only the growth but also the survival of the business Organization. 
Trends in the global business environment indicate that most manufacturing organization have continued to experience negative fortunes in their business. This is often traceable largely to poor or lack of inventory control, low quality products, ineffective sales production etc. Inventory control is therefore the method of ensuring that the right quality and quantity of the relevant stock is available at the right time and at right places. The stock can be raw materials, work in progress or finished goods awaiting dispatch. Inventory control requires a thorough knowledge and wisdom to decide what, how and why holding a particular stock. 
1.2    STATEMENT OF THE RESEARCH PROBLEM 
Trends in the global business environment indicate that most manufacturing organizations have continued to experience negative sale promotion, low quality products, inefficient management team and poor inventory control. Poor inventory control usually leads to a number of critical problems which affect ultimately the continue existence and survival of business organizations. It is in the light of these ugly trends which are occasioned by poor inventory control that the study is design to seek tentative answers to the following research questions; 
1.      How cost associated with inventory can be reduced? 
2.      What quantity of inventory will be sufficient for effective production?
3.      How effective are the methods adopted for the control of inventory? 
1.3    OBJECTIVE OF THE STUDY 
The study is intended to achieve the following aims 
1.      To find out how cost associated with inventory can be reduced. 
2.      To examine the level of inventory that be sufficient for effective operation 
3.      To investigate and evaluate the effectiveness of the methods used in the management of inventory 
4.      Make recommendation in the light of findings from the above objectives. 
1.4    SCOPE OF THE STUDY 
This study is directed at manufacturing sector, but the focus is on Nigerian Bottling Company Plc, because of the impossibility of reaching all manufacturing companies in Edo state.   This research work is an exploratory one, which seek to evaluate the effectiveness of Nigerian Bottling company inventory management. The work will be based largely on empirical evidence on the analysis of data of inventory control for eight-year period (2001-2008) in Nigerian Bottling Company. It will also involve a study of the general practice of inventory control method adopted in the company. 
1.5    SIGNIFICANCE OF THE STUDY 
Inventory management problems are prevalent in most Nigerian manufacturing concerns or entities. Ineffective management and control can result in a serious problem. A study of this type is justified when one consider the fact that if inventory are poorly managed, it is likely to cause delay in production, customers dissatisfaction, lack of goodwill and addition to this, the working capital of the organization will be affected negatively. Moreso, the study is relevant as it helps to balance conflicting objectives such as those associated with stock out and overstocking problem. However, it is hope that the findings and recommendations will assist the Nigerian Bottling Company to understand the implications of their present inventory management system and formulate strategies to improve their inventory system for better performance. 
1.6    RESEARCH HYPOTHESIS 
For the purpose of this study, the following hypotheses which have been formulated,   
i.      Null Hypothesis (Ho): inefficient inventory management does not have effect on the performance of Nigeria Bottling company Plc. 
ii.     Alternative Hypothesis (Hi): inefficient inventory management do have effect on the performance of Nigeria Bottling Company Plc. 
1.7    THE RESEARCH METHODOLOGY 
The study will make use of questionnaire designed to collect necessary information with respect to the inventory system of Nigerian Bottling Company Plc. The questionnaire will be formal and structured to explain the reasons for the information sought and encourage its disclosure. In addition to the questionnaire, oral interview will be conducted with appropriate employees of Nigeria Bottling Company. The production process will be observed to see the flow of goods in the conversion process. Materials handing and inspection procedures will also be observed. Secondary data will also be obtained from Nigerian Bottling Company Plc, the Library, textbooks and journals will be exploited. 
1.8      LIMITATION OF THE STUDY 
In a study of this nature, there are bound to be some impediment, this study is not an exception. The following have been the most militating factors. 
1.   The limited time schedule for the completion of this project is too short to carry out an intensive and exciting study of this nature. 
2.   Confidentially of information: Business entities normally considered research as a stranger, hence access to certain information was difficult. The extent to which the employees of the organizations shall be willing to complete the questionnaire administered to them and the importance they attached to the study.

PROBLEMS OF TAX COLLECTION IN NIGERIA A CASE STUDY OF UYO LGA

CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
One of the recurrent problems of the three-tier system in Nigeria, a case study of Uyo LGA is dwindling revenue generation as characterized by annual budget deficits and insufficient funds for meaningful growth and viable projects development. Local governments are the nearest government to the people at the grassroots in Nigeria, a case study of Uyo LGA; they are strategically located to play a pivotal role in national development. Since they are responsible for the governance of about 70 percent of the population of Nigeria, a case study of Uyo LGA, they are in vantage position to articulate the needs of the majority of Nigeria, a case study of Uyo LGAns and formulate strategies for their realization (Ekpo and Ndebbio, 2001).  
Local administration in Nigeria, a case study of Uyo LGA can be traced to the colonial period. Available record shows that the first local administration ordinance was the Native Administration Ordinance No. 4 of 1916 which was designed to evolve from Nigeria, a case study of Uyo LGA’s old institutions the best suited form of rule based on the people’ s habits of thought, prestige and custom (Bello-Imam 1990). These local administrations were used in the north eastern and western parts of the country while the indirect rule was introduced in the rest of the north. For example, in 1926, a centralized budget system was introduced. Following the creation of Northern, Western and Eastern regions in 1946, a decentralized public revenue structure began to emerge. The first revenue commission was set up in 1946. 
During the colonial period, four revenue commissioners were created. The principles, criteria and allocation formulas recommended by the commissions are well documented (Ekpo, 2004).  Macpherson constitution of 1948 initiated some remarkable changes; the regions introduced some reforms in their local administrations in the 1950s which aimed at enhancing performance. Though, the reforms gave local administrations to collect rates and levy pools and income taxes to finance their activities, the regions had overall control of the taxes. Local administration lacked self-determination, hence their resource were inadequate. Though, the local authorities were partially successfully in the North but unsuccessfully in the Eastern and Western regions.    
Adedeji (1990) blames the ineffectiveness of local administration on the following reasons:  (a)  Lack of mission or lack of comprehensive functional role (b)  Lack of proper structure (i.e. the role of local governments in the development process was not known). (c)   Low quality of staff; and  (d)  Low funding.  According to him, these problems led the local governments into a vicious circle of poverty because inadequate functions and powers lead to inadequate funding which result in the employment of low skilled and poorly paid staff.    
Local government administration in the country experienced fundamental changes in 1976. The 1976 local government reform created for the first time, a single-tier structure of local government in place of the different structure in the various states. Our interest in the 1976 reform hinges on the restructuring of the financial system. The reforms instituted statutory allocation of revenue from the federation account with the intention of giving local government fixed proportions of both the federation account and each state’s revenue. This allocation to local government became mandatory and was entrenched in the recommendations of the Aboyade Revenue Commissions of 1977.  The 1979 constitution empowered the national Assembly to determine what proportion of the federation account and revenue form a state to allocate the local government.  
In 1931, the National Assembly fixed these proportions at 10percent of the federation account and 10 percent of the total revenue of a state. In 1985, the state’s proportion was reduced to 10 percent of the internally-generated revenue; local governments’ allocation from the federation account was later adjusted to 20 percent. It was further increased to 25 per cent with the arguments that local governments are expected to take on larger developmental responsibilities. The revenue allocation has continued to vary in proportion over time.   At present, local government receive 20 per cent of the federation account. In addition, proceed from the value added tax (VAT) are also allocated to them. Presently, VAT’s allocation is 35 per cent based on equity of states (50 per cent), population (35 percent) and derivation (2 percent). The 1976 local government reforms states the internal revenue sources of local governments to include: (a)  Rates, which include property rates, education rates and street lighting.  (b)  Taxes such as community, flat rates and poll tax.  (c)   Fines ad fees, which include court fines and fees, motor park fees, forest fees, public advertisement fees,  market fees, regulated premises fees, registration of births and deaths and licensing fees; and  (d)  Miscellaneous sources such as rents on council estates, royalties, interest on investment and proceeds from commercial activities.  
Despite this clear demarcation, states and local government still clash over sources of internal revenue.  There has been a significant increase in the number of Local Governments over the years. There were 96 divisions in 1967. By 1976, they had increased to 300. The number was increased to 774 after five yeas (Adedokun A.A. 2004) we will like to emphasize here that the rise in the number of Local Governments as implications on the assignment of public revenue responsibilities among the tiers of government. And more importantly, have effect on local government development. Development is highly associated with fund, much revenue is needed to plan, execute and maintain infrastructures and facilities at the local government level. The needed revenue collected for such developmental projects. Like construction of accessible roads, building of public schools, health care centers, construction of bridges among others are soles generated from taxes, royalties, haulages, fines and grants from states, national and international governments. Thus, the Local government cannot embark, execute and possibly carryout the maintenance of these projects and other responsibilities without adequate tax collection. This is the basic reason why development is skeletal at some Local Government councils in Nigeria, a case study of Uyo LGA. 
The issue of poor tax collection is not exceptional to local governments in both Ikpoba Okha and Oredo Local Government of Edo State. This has been one of the problems encountered by most local council’s administration in Nigeria, a case study of Uyo LGA. This however pronouncedly affected development negatively in local government councils. In this research project, the issue to address is how far this poor tax collection can affect revenue generation and more importantly developmental implications for Ikpoba Okha and  Oredo Local Government Area of Edo State.   
1.2     STATEMENT OF THE PROBLEM 
The Local Government Council takes direct care of the grassroots people that is the people in the rural areas. These groups of people sometimes lack essential facilities and condition of modern civilization. They lack pipe bore water to drink, do not have electricity, accessible roads, poor educational infrastructure and facilities to mention but a few. This is one of the major reasons of rural – urban migration of movement. This has made our cities to be congested and increase in many criminal activities. 
Based on the above and foregoing assertions, it is obvious that local government has to adopt an effective taxation system which will enhance revenue generation. This no doubt is no doubt over the years has become a serious problem. the local government administration has not live up to the expectation in terms of grass root  development. This might be as a result of poor revenue generation or tax collection. If Nigeria, a case study of Uyo LGA is to achieve her desired goal of vision 2020 and possibly meet the millennium development goals (MDGS) target, the issue of tax collection must be addressed squarely. Hence, the researcher is bothered to find out the importance of taxation as a source of government revenue in Nigeria, a case study of Uyo LGA..   
1.3     OBJECTIVE OF THE STUDY
The broad objective of the research is to examine the problems of taxation as a source of government revenue in Nigeria, a case study of Uyo LGA.  The other objective of this study includes: 
i.       To determine the level of modern social amenities available in Etsako West and Etsako East Local Government of Edo State. 
ii.      To find out the level of poverty associated with the rural people as a result of poor development 
iii.     To find out the degree of rural-urban migration. 
iv.     To make useful suggestions to solve the problem of poor tax collection as development depends on revenue generated.    
1.4    RESEARCH QUESTIONS
i.      Does taxation has any effect on local government revenue 
ii.     Does effective taxation system enhance local government development? 
iii.    How can revenue generation in Ikpoba Okha and Oredo Local Government of Edo State be improved?     
1.5   Statement of Hypotheses 
1.     H0: taxation is a viable source of local government revenue 
        H1: taxation is a viable source of local government revenue     
2.     H0: There is no significant relationship between taxation and development in local governments in Nigeria, a case study of Uyo LGA 
        H1: There is a significant relationship between taxation and development in local governments in Nigeria, a case study of Uyo LGA   
3.     H0: Poor taxation policies have negative effect on local government revenue generation 
        H1: Poor taxation policies have positive effect on local government revenue generation.   
1.6   SIGNIFICANCE OF THE STUDY
The significance of any human endeavour is measured by its relevance to solving human problems. The findings of this study would help Local Governments in Nigeria, a case study of Uyo LGA to identify the problems associated with revenue generation and its consequences on development. However, this study will be of great significance to managers of organizations, entrepreneurs, and investors especially those whose organizations’ tax are within the purview of the local government administration; as it reveals the irregular tax policies and practices that can jeopardize the effectiveness and sustenance of their businesses. It as well enable local councils capitalizes on their gains while focusing on areas of comparative advantage. Also, major beneficiaries of this study are auditors and accountants, as well as financial analysts, government personnel and the revenue taxation board will benefit from this study.     
1.7     SCOPE AND DELIMITATION 
The study is focused on the importance of taxation on government revenue. The study focus on the impact of revenue of Ikpoba Okha and Oredo local government, and how it affects development of the local government areas. It will also involve the analysis of problems associated wit revenue generation and its impact on the development of the local government councils.   
1.8   LIMITATION OF THE STUDY
The study is confined to local government in Edo State, particularly Ikpoba Okha and Oredo local government, the study only identify  with the taxation as it affects revenue of the local government areas stated above. It will also involve the analysis of problems associated wit revenue generation and its impact on the development of the local government councils.   
1.9   DEFINITION OF TERMS
Some concepts require proper explanation to enhance our understanding of the theme where necessary opinion of scholars will be cited to explain the terms. The researcher will also give some fundamental definition of terms.  
Tax:  Tax can be defined as a compulsory levy by government on goods, services, income and wealth. It provides definite source of revenue for government expenditure. (Udeh O.S. 2008). It is the way by which government obtain extra money. It spent from income of individual and companies. Tax could be direct or indirect tax. A tax is a payment made by the taxpayers and used by the government for the benefits of all the citizens. 
Taxation: Therefore is the process of imposing levies, taxes and other duties on an individual or body, therefore, sourcing revenue for the local government in carryout their aim and objectives. 
Local Government: According to Lawal (2000) Local Government as a political sub-division of a nation in Federal system which is constituted by law and has substantial control of local affairs which includes the power to impose taxes or exact labor for prescribed purpose. According to William Robson (2006) Defined Local Government as involving the conception of territorial, non-sovereign community possessing the legal right and the necessary organization to regulate its own affairs.    
Revenue: Revenue could be defined as the funds generated by the government to finance its activities. In other words revenue is the total fund generated by government (Federal, state, local government/ to meet their expenditure for a fiscal year. This refers also to the grand total of money of income received from the source of which expenses are incurred. Revenue could be internal or external revenue.  
Expenditure: Public expenditure refers to the expenses which the government incurs for its own maintenance, in the interest of the society and the economy in order to help other countries.  
Tax evasion:  Tax evasion means illegal reduction in one’s tax liabilities, thereby paying less than the appropriate amounts and not paying at all.  
Tax avoidance: Tax avoidance is the act of streamlining one’s financial affairs within the law so as to minimize the tax liabilities.  
Development: According to Ake (2001) Development is thus the process by which people create and recreate themselves and their life circumstances to realize higher levels of civilization in accordance with their own choice and values. It also a type of social change in which new ideas are introduces into a social in order to produce higher per-capital income and levels of living through more modern production methods and improved social organization.

MANAGEMENT OF FOREIGN EXCHANGE BY CENTRAL BANK OF NIGERIA: PROBLEMS AND PROSPECTS

CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND OF THE STUDY It has already been stated that money is a common denominator in which the rate relative values of goods and services can be expressed.  Throughout history any community which form itself into a nation for the purpose of self-government immediately introduces its own distinctive unit of account-monetary unit of account (legal tender). In the words of Endel (1973-77) in the international realm no legal tender exist vales must be measured, accounts kept and payments made by conversion of one currency not another, this conversion process is known as foreign exchange.         
Foreign exchange can be acquired by a country through the export of goods and services, direct investment inflows, aids and grants.  When foreign exchange receipts, the surplus is added to reserves.  These reserves which are also savings from foreign exchange transactions are held by the authorities to finance short falls in foreign receipts and to safeguard the international value of the domestic currency. 
When there is disequilibrum in the foreign exchange market which is caused by in adequate supply of foreign exchange reserves, pressure may be exerted on foreign exchange reserves.  If the reserves are not adequate, it will deteriorate into balance of payments problems, hence the  need to manage a nation’s foreign exchange resources so as to reduce the adverse effect of foreign exchange volatility. The management of foreign exchange resources is further informed by the need to set an appropriate cleaning price in the foreign exchange market. Therefore the act of foreign exchange management in a conscious attempt to harness foreign exchange resources, deploy them to service the economy so as to prevent the economy from experiencing shocks due to foreign exchange volatility.         “The practice of managing the foreign exchange resources has therefore evolved broadly in line with the globalization and liberalization of economics and financial markets”.  (Anifowose, 1997:19)  
1.2      STATEMENT OF THE PROBLEM
The primary objective of foreign exchange management is to reduce foreign exchange instability and its adverse effect on the economy. Despite government efforts to achieve this objective through the central bank of Nigeria (CBN), foreign exchange (monitoring and miscellaneous provisions) Decree No promulgated in 1995 and the introduction of the use of forms  A and 19 in 1996, a handful of problems are still identified with foreign exchange operations in Nigeria.  These problems include  
(i)    Inadequate inflow of foreign exchange 
(ii)   Continuous depreciation in the value of the Naira 
(iii)   Balance of payment problems 
(iv)   Problem of finding Sectorial allocation of foreign exchange in the foreign exchange market   
1.3      OBJECTIVES OF THE STUDY
The objectives of the study are: 
(i)   To examine the roles of the central bank of Nigeria in managing the country’s foreign exchange 
(ii)   To examine the impact of foreign exchange rate policy in the foreign exchange management. 
(iii)   To examine the effects of the activities of parallel market on the foreign exchange. 
(iv)   To examine the impact of foreign exchange decree No. 17 of 1995 and other control measures in managing foreign exchange in the country. 
(v)   Examine the problems facing exchange management in Nigeria.  
1.4   SIGNIFICANCE OF THE STUDY
(i)   This work is in partial fulfillment of the requirement for the award of Higher National Diploma (HND) in Accountancy. 
(ii)   The work will be immense help to future researchers who will make their own investigation into this subject area. 
(iii)  The work will help the Central Bank of Nigeria (CBN) regulate the activities of the banks with a view in gathering them to fund foreign exchange market adequately, increase foreign exchange inflow and Balance of payment surplus, determine a realistic exchange rate and adequate foreign exchange control system. 
1.5      RESEARCH QUESTION
(i)   How do you assess the role of the central bank of Nigeria in managing the country is foreign exchange. 
(ii)   Do you think that the impact of foreign exchange rate policy has been encouraging? 
(iii)   Is it true that the activities of the parallel market operators negatively affect the effective operation of the foreign exchange management in Nigeria?
(iv)   How would you assess the impact of foreign exchange decree No 17 of 1995 and other control measures in managing foreign exchange in the country?
(v)   What are the problem facing foreign exchange management in Nigeria.
1.6   HYPOTHESIS
The following hypothesis is have been designed for analysis: 
(i)     Ho:  The role of Central Bank of Nigeria in managing the country’s foreign exchange is not impressive.  
        Hi:   The role of central Bank of Nigeria in managing the country’s foreign exchange is impressive. 
(ii)    Ho:   The impact of exchange rate policy in the management of foreign exchange in Nigeria is not encouraging.
        Hi:    The impact of foreign rate policy in the management of foreign exchange in Nigeria is encouraging 
(iii)   Ho:   The activities of the parallel market operators negatively affect the effective operation f the foreign exchange management in Nigeria.
        Hi:    The activities of the parallel market operator do not negatively affect the effective operative of the foreign exchange management in Nigeria. 
(vi)    Ho:   The impact of foreign exchange degree No 17 of 1995 and other control measures in managing foreign exchange in the country is not impressive. 
        Hi:    The impact of foreign exchange decree No 17 of 1995 and other control measures in managing foreign exchange in the country is impressive.
1.6      SCOPE AND LIMITATION SCOPE
 The area of this project in Enugu, the research is to determine how foreign exchange could be effectively managed in Nigeria by CBN.   
LIMITATION
In the process of carrying out this study the researcher encountered some problems which include:  Finance the cost of transportation to area where data are to be collected was too high.   The negative attitude of CBN officials toward disclosure of information was a limiting factor. Finally, time for data collection and attitude lectures was a limiting factor.   
1.8   DEFINITION OF TERMS
EXCHANGE RATE:   This is the number of units of one currency, which exchange for a given number of units of anther country.   
FOREIGN EXCHANGE MARKET:   This is a market in which one national currency is brought in exchange for another national currency.   
FOREIGN EXCHANGE RESERVE:   These are foreign currencies held by the Central Bank of Nigeria (CBN).            

PROMOTION OF SMALL SCALE ENTERPRISES AND THEIR CONTRIBUTION TO THE ECONOMIC GROWTH OF NIGERIA


CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The production of goods and services in the most efficient manner has continued to be the only viable and reliable option for development, growth and survival of any economy. SMEs have been fully recognized by government and development experts as the main engine of economic growth and a major factor by extension in promoting the realization of the financial systems strategy 2020. This is because the development of this sub-sector is an essential element in the growth strategy, not only in contributing to improved standard of living; they also bring substantial local capital formation and achieve high level of productivity and capacity. From a planning stand point, SMEs are increasingly recognized as the principal catalysts for achieving equitable and sustainable industrial diversification and dispersal and in most countries SMEs account for well over half of the total share of employment, sales and value added (Udechukwu, 2003). This is not surprising because the industrial sector in Nigeria has no significant record of meaningful contribution to economic development since independence in 1960 because it has not experienced any notable growth, traceable to indigenous industrial entrepreneurship (Adewale, 2007). The Nigerian economy, since the early seventies, has been dependent on oil products. As a result of the enormity of revenue generated from oil, very little attention has been paid to proper development of the industrial sector. The reason for the lacklustre performance of the industrial sector is mostly associated with the poor attention paid to the promotion and development of the small and medium scale sub-sector, which is accepted worldwide to be the engine of economic growth and the basic foundation for the industrialization process of any nation that desires to experience solid development. This is more so because entrepreneurship development is a critical aspect of skills development and keystone for economic revival and growth. Furthermore, the vital role of small and medium scale enterprise (SMEs) as the only authentic foundation for accelerated industrialization, growth and development, as witnessed in all the Newly Industrialized Countries of South East Asia, referred to as Asian Tigers, is recognized for its accelerative effect in achieving macro-economic objectives such as full employment, income distribution, development of local technology and stimulation of indigenous entrepreneurship, mitigation of rural-urban migration, support and linkage of the entire industrial sector by training of semi-skilled and non-skilled manpower as well as the manufacturing and supply of spare parts and raw materials to large scale industries.       
1.2 STATEMENT OF THE PROBLEM
Several studies have identified financial constraint as the major obstacle to Small and Medium Scale Enterprises Development in developing countries including Nigeria. For instance, Adelaja (2003) argued that the access to institutional finance has always constituted a pandemic problem for SME development in Nigeria. He recalled that in the past, a number of schemes have been put in place to provide special credit lines/windows for SMEs but this achieved very limited impact.
The primary focus of this study emanates from the fact that small scale enterprises owners do not have sufficient finance to carry on their due to the low saving culture of the people in this part of the world. The reason for this is not far fetch: low level of income basically. While it is an established fact that Small and Medium Scale Enterprises face financial challenges, no research has been conducted to investigate the effect the financial problem on their contribution to economic development. Asaolu et al (2005) and many other authors and researchers have deduced that the financial challenges mar the developmental role of Small and Medium Scale Enterprises. But this may not be true especially in the case of Nigeria where the informal sector, which is constituted largely by the Small and Medium Scale Enterprises play a very important role in the development of the nation’s economy. Therefore, this study seeks to evaluate the promotion of Small and Medium Scale Enterprises (SMEs) in Nigeria and their contribution to economic growth.   
1.3 OBJECTIVES OF THE STUDY 
The main purpose of this study is to identify and consequently analyze the most effective and efficient way through which Small and Medium Scale Enterprises could be financed and promoted.
In view of the above, the researcher intends to find out the following:
The role played by government towards promotion and development of Small and Medium scale Enterprises (SMEs).
1.  To examine the contribution of Small and Medium scale Enterprises (SMEs) to the economy growth of Nigeria.
2.  To identify the various challenges militating against the promotion of Small and Medium scale Enterprises (SMEs) in Nigeria.
3.  To find suitable strategies that will improve the development, growth and survival of Small and Medium scale Enterprises (SMEs). 
1.4 RESEARCH QUESTIONS
The study would examine the following questions:
1. What is the trend of financial support given to SMEs in Nigeria?
 2. What impact do Small and Medium Scale Enterprises make to Nigeria’s economic growth?
3. What contribution has the financial system made to the growth of SMEs in Nigeria?
4. How could the growth of Small and Medium Scale Enterprises be enhanced in Nigeria?  
1.5 HYPOTHESIS OF THE STUDY 
1. Ho: The activities of Small and medium scale enterprises have not contributed to the economic growth of Nigeria. 
Hi: The activities of Small and Medium scale Enterprises have contributed to the economic growth of Nigeria. 
2. Ho: Small and Medium scale enterprises are not adequately promoted by the government of Nigeria. 
Hi: Small and Medium scale enterprises are adequately promoted by the government. 
3. Ho: SMEDAN officials have not effectively and efficiently  promoted SMEs in Nigeria 
Hi: SMEDAN officials have effectively and efficiently promoted SMEs in Nigeria. 
1.6 SIGNIFICANCE OF THE STUDY 
Small and Medium scale Enterprises (SMEs) in Africa rely largely on own savings, not only to grow but also to innovate, firms often need real services support and formal finance assistance, failing which under-investment in long term capabilities (training and R&D) may result, (Oyelaran-Oyeyinka, 2003).
Besides finance, there are critical elements (including: knowledge, skills and experience of staff; capacity and quality of internal facilities; information and knowledge of market; intellectual and managerial leadership; external infrastructure and the incentive system at the micro and macro levels) that lacking within technology support institutions themselves. These undermine the effectiveness of their support to Small and Medium scale Enterprises (SMEs). This study is significant because it would help to evaluate the operations of a vital segment of the industrial sector – Small and Medium Scale Enterprises (SMEs) , which have been identified as having very high potential in promoting economic growth and development (Oni and Daniya, 2012). The evaluation shall be done with special focus on their financing thereby adding to the existing literature on the subject matter.   
1.7 SCOPE OF THE STUDY 
This research work focuses on the promotion of Small and Medium Scale Enterprises (SMEs) in Nigeria paying special attention to the impact the government of Nigeria has on the development of Small and Medium Scale Enterprises. The research intends to study the essential problems encountered by Small and Medium Scale Enterprises and suggest ways by which they can be adequately and efficiently financed.
Most of the information and data needed f or the study would be gathered from existing literature and from relevant government agencies such as the  National Bureau of Statistics (NBS) and Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) etc. 1.8 LIMITATIONS OF THE STUDY
The only limitation faced by the researcher in the course of carrying out this study was the delay in getting data from the various respondents. Most respondents were reluctant in filling questionnaires administered to them due to their busy schedules and nature of their work. The researcher found it difficult to collect responses from the various respondents, and this almost hampered the success of this study.   
1.9 DEFINITION OF TERMS
Business: The Oxford Learner’s Dictionary defines business as a commercial activity, a means of live hood, a trade, profession, occupation, etc. 
Capital: capital can be defined s man-made productive asset that are set aside for the production of other assets. In other restricted cases, it is defined as money set aside to start business. 
Economic Development: it can define as the process whereby a country’s real per capital gross national product of income increases over a sustained period of time through continuing increases i.e. per capital productivity. 
Economic Growth: Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to obviate the distorting effect of inflation on the price of the goods produced. In economics, “economic growth” or “economic growth theory” typically refers to growth of potential output, i.e., production at “full employment“. 
Economy: the word is used to mean a particular system of organization for the production, distribution, and consumption of all things people use to achieve a certain standard of living. . 
Entrepreneurship: The willing and ability of an individual to seek out investment opportunities in an environment, and an environment, and be able to establish and run an enterprise successfully based on the identified opportunities. 
Role: according to Merriam-Webster’ dictionary is defined a function or part performed especially in a particular operation or process or major. 
SMEs: Small and medium enterprises or small and medium-sized enterprises (SMEs, small and medium-sized businesses, SMBs, and variations of these terms) are companies whose personnel numbers fall below certain limits. The abbreviation “SME” is used in the European Union and by international organizations such as the World Bank, the United Nations and the World Trade Organization (WTO). Small enterprises outnumber large companies by a wide margin and also employ many more people. SMEs are also said to be responsible for driving innovation and competition in many economic sectors. 
SMEDANThis is The short form for Small and Medium Enterprises Development Agency of Nigeria. (SMEDAN) was established by the SMEDAN Act of 2003 to promote the development of the MSME sector of the Nigeria Economy. The Agency positions itself as a One Stop Shop for MSME Development. Micro Enterprises are included in the clientele of the Agency since they form the bedrock for SME’s

PROSPECTS AND CHALLENGES OF MOBILE BANKING IN NIGERIA

CHAPTER ONE
INTRODUCTION
1.1  Background of the Study
Technological developments particularly in the area of Telecommunication and Information Technology are revolutionizing the way business is done. Electronic Commerce is now thought to hold the promise of a new commercial revolution by offering an inexpensive and direct way to exchange information and to sell or buy products and services. This revolution in the market place has set in motion a revolution in the banking sector for the provision of a payment system that is compatible with the demands of the electronic marketplace (Journal of Internet Banking and Commerce, 2008).     
In line with global trends, banking business in Nigeria too has been undergoing tremendous changes Since independence in 1960. The first step in the evolutionary process was the gradual deregulation of the financial sector, which commenced in the 1989. Then, in the 1990s the introduction of Automated Teller Machines (ATMs) was considered as the first and most visible piece of evidence of the emerging electronic banking in Nigeria (Abor, 2008). This was then followed by the introduction of Telebanking, PC-banking and Internet-banking. The next imminent step in this evolutionary process inevitably appears to be mobile banking (M- banking). 
The use of a mobile phone to conduct payment and banking transactions (M- banking) is at an early stage in a number of developing countries. Because mobile banking uses the existing rapidly expanding mobile phone infrastructure, it has the potential to be deployed rapidly and affordably to expand access to financial services among unbanked people. Access to financial services is one of the necessary ingredients to fight poverty (Otabil, 2008). Poverty alleviation is at the heart of most donor-supported programmes in Africa, and improving banking services through technology-driven initiatives could be part of pro-poor policies necessary to change the plight of the poor. A study by Bankable Frontier Associates (2006) has identified mobile banking as critical to poverty alleviation in developing countries.     
In Asian countries like China, Bangladesh, Indonesia and Philippines, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high (at least 80% of the consumers use a mobile phone), mobile banking is likely to appeal even more (Wikipedia, 2008). This opens up huge markets for financial institutions interested in offering value added services. With mobile technology, banks can offer a wide range of services to their customers such as doing funds transfer while traveling, receiving online updates of stock price or even performing stock trading while stucked in traffic. 
According to the German mobile operator Mobilcom, mobile banking will be the “killer application “ for the next generation of mobile technology (Wikipedia, 2008). In the last four years, banks across the globe have invested billions of dollars to build sophisticated Internet banking capabilities (Wikipedia, 2008). As the trend is shifting to mobile banking, there is a challenge for Chief Information Officers (CIO’s) and Chief Technical Officers (CTO) of these banks to decide on how to leverage their investments in internet banking and offer mobile banking, in the shortest possible time. However, there are several issues including the lack of adequate legal framework and security of mobile transactions which tend to hamper the continued progress of developing this sophisticated mobile banking application. Due to the issues raised in this section and the importance of mobile banking, it is important that a study is carried out to identify the prospects and challenges of mobile banking in a developing country like Nigeria.     
1.2  Statement of the Problem
Banking is a centuries old industry, yet, in a country like Nigeria, there is still a large proportion of the populations that have no bank account, or do not have any formal banking relationship, like accessing credit-loans or overdraft with any bank. It is estimated that this proportion could top 80% of the population (Otabil, 2008). But, technology, as one of the forces behind globalization, has driven mobile phone usage to impressive levels in Nigeria. There are now more mobile phone users in the country than bank account holders (Otabil, 2008).     The relationship between the telecoms operators and banks could therefore drive down transaction cost and improve customer service for both industries. Customers will also benefit from efficient and effective services rendered by both the telecoms and the financial institutions.
Holding cash comes at a high price to poor people because of the risk of crime in many poor countries (Bankable Frontier Associates, 2006). Therefore appropriate financial services help poor people to access usefully large lump sums of money, which may either enable a pathway out of poverty through investment in income generating activities (such as microenterprises) or asset creation (such as housing) or may reduce vulnerability to cashflow, as a result for example, of illness or climate conditions, mobile banking therefore has a major role to play in this area.     
As poor people in many countries are forced to rely on informal financial services, which may be unsafe, or fringe formal financial product which may be expensive as well as unsafe, it is important that mobile banking is improved in these countries by the banks so that customers will make informed decisions about their finances. In other words, their exclusion from formal financial services has economic and social impacts which may exacerbate their poverty (Otabil, 2008). Nonor, (2009) reports that most banks in Nigeria now employ very innovative and cutting edge technologies to offer accessibility to their customers. One of such innovations which is fast catching up with a lot of Nigeriaians in the banking sector is Mobile banking, also known as M-Banking, SMS Banking, etc.
In the opinion of mangers, though education of the service was limited across the country, a lot more of their customers may be willing to change the traditional banking way of queuing in banking halls to avail the convenience of mobile banking services.  It is therefore important that a study be carried out to find out the prospects and challenges of mobile banking since it may enhance the socio-economic development of Nigerians.     
1.3   Significance of the Study
 This study has numerous significance. Firstly, improved information communication technology (ICT) could help Nigeria leapfrog development challenges, and mobile banking through ICT could soon reflect general economic improvement among people through lower transaction cost. Secondly, it is also hoped that the results of this study will extend current knowledge on mobile banking technology. Furthermore, the study will provide deeper insight into what is needed in order for bank customers to accept this emerging technology and, thus, allow for improvement in banking strategies to attract potential users of mobile banking.     
1.4   Objectives of the Study
 The objectives of this study were to:     
(1)   find out the perceived advantages and disadvantages of mobile banking to the customers.   
(2)   find out expectations regarding future development of mobile banking.  
(3)   identify factors that may hinder its implementation in Nigeria.   
(4)   identify factors that may enhance its implementation in Nigeria.
1.5   Scope of the Study
For the purpose of simplicity, this study refers to all providers of banking business and financial services as banks and does not differen tiate between credit institutions and financial services institutions. Thus all the customers of these institutions were targeted.     
1.6   Structure of the Study
This study consists of five main chapters. Chapter one dealt with the introduction to the topic, problem statement and significance of the study. In addition, objectives and limitations of the study were also covered here. Chapter two gave a review of relevant literature on the topic. In particular this chapter looked at definitions, services offered in mobile banking, various mediums employed and key challenges of mobile banking. Chapter three provided the methodology adopted for the study. It included the number of participants and their characteristics. The test, scales, interviews or questionnaires schedules and how resulting data was analyzed. Chapter four presents the analysis of information gathered. Conclusion of the study, a Summary and recommendations to enable banks that are thinking of introducing mobile banking were covered in chapter five.     
1.7   Limitations
Data for this study was collected from Students of University of Uyo. This is because of the costs involved and the limited amount of resources available in collecting data from the general public.

RISK MANAGEMENT IN NIGERIA BANKING INSTITUTION

CHAPTER ONE 
INTRODUCTION 
1.1   BACKGROUND OF THE STUDY 
The purpose of this project is to highlight the instability, uncertainty, inaccurate planning and budgeting process and loss of effective control management function in the financial institutions, occasioned by the dynamic macro economic variable in Nigeria within the last decade. The economic variables were introduced apparently to achieve or obtain a level of economics sanity in the country, under different names like structural adjustment programme, exchange control deregulation and price control. 
Consequently, the management of policy issues in financial institution has become not only volatile but unpredictably difficult. It has become toughly risky for those institutions to carry on their normal functions. The banking industries are susceptible to all forms of risk. It has an ageing long history in the overall operation of all banks. Risk is a commonly used word. 
The Oxford learning dictionary, defines risk as the possibility of meeting danger or suffering harm or loss. All human and corporate under taking have certain element of risk to avert risk, forward looking in management must show sufficient interest in the management and control of these Operations in the bank and monitor the possible impact these may have on the banking performance. This study attempts to emphasize this point in bank management. 
1.2      STATEMENT OF RESEARCH PROBLEMS 
Research work is carried out to investigate into some areas that need more attention, which has not been focused or where there has been work or ideals put forward in the areas. To this end, this work attempts to find out a certain problems that affect the bank and try to suggest solution in areas of pitfalls some of these problems included the followings: 
1.   Does the bank actually carry out critical assignment before advancing credit? 
2.   Does the bank lack competent handling the sensitive areas of risk control of the bank? 
3.   Does customers effectively utilize the fund borrowed to endure return which consequently lead to payment? 
4.   Are the measures of loans recovering by the bank effective? 
5.   Does the intimacy of some loans seekers with the authorities of the bank inhabit proper risk evaluation? 
6.  These and many more are worth assessing in order to being a position to endurance a more realistic measure, which when followed will bring about positive change in the banking industry. 
1.3      OBJECTIVES OF THE STUDY 
Based on the background information, this study, therefore aims at examining and actually finding out how the banking industry in Nigeria has been faring in management, managing risk in the bank. The purpose of this research is to seek recondition with their risk elements through the polices, as no bank can be in operation without risk, there is a need to take such, risk as would be compatible with profitability, liquidity and prudence. Realizing the profitability are inversely related, it is the good management of risk that will achieved a locus of feasible point exchange or the banks. 
1.4      SCOPE OF STUDY 
This work is restricted to the bank under the study, Union Bank of Nigeria Plc and no attempt was made to compare finding with what is obtainable in other banks within the same sections, although reference could be made in this regard when needed.
1.5      SIGNIFICANT OF STUDY 
The significant of this research work includes among others, the gains that accrue to the research, the bank and invariable to other interested parties. Effective management of risk in banks had been gained. The work will enable the banks to know whether there is risk when giving out credit to customers and whether the risk on existing credit management system is in the line with the recommended credit policy laid down by the central bank of Nigeria and not the necessary in the feature. The result from this study shows that the research frequently hope would provide the policy makers, head of organization most especially the board of director of Union bank of Nigeria plc, a background of this information for proper risk management system in the bank. 
1.6      STATEMENT OF RESEARCH HYPOTHESIS 
Hypothesis could be defined as a statement of association which are yet to undergo verification order to prove their validity or otherwise such as preposition of this work included: 
1      Ho: Some customers have the problems of inadequate collateral securities of the loan requested for. 
2.     Ho: There is a risk in bank leading, because the rules of lending are not often granted when granting credit abilities of customers Hi: Some customers do not have the problem of inadequate collateral securities or the loan requested for.     
3      Ho: Counter –order from superior officers does not influence the lending decision of lending officers. 
1.7      LIMITATION OF STUDY 
The factors that limit the scope of this work can be categorized into two variables, which is a controlled and uncontrolled variable. The formal is based on the time with researcher disposals to carry out the study and financial constraint, while the latter is attributed of the established under study some staffs treat questionnaires administered with competent and resentment which at the number of questionnaire that retired, while some initial information that would have been added to the substance of the work was not given as it was claimed to be management decision and they view such facilities. 
1.8      CORPORATE PROFILE OF UNION BANK 
The evaluation of the union bank in Nigeria cannot distinguish from growth in international trade. Before the advert of European, Nigeria and other west Asia countries had trade link with the worth and East via the Sahara trade routes. In 1917, the colonial Bank which started operation in African in the year 1836, opened branch in Lagos, Zaire and Accra, however in 1925 the colonial bank limited merged with Anglo-Egyptians banks and the national bank of south Africa to form the Barclays bank D.C.O. Dominion colonial and overseas. This was an era when individual could float banks that will subject only to the provisions of the section 2 (1) of the companies ordinances, availability of adequate bank capital, windows banking was common feature since banks poferated at such supervision rate that era could also be described as a rudimentary banking in Nigeria. Prior to 1973, the foreigners were the majority shareholders in Barclay’s banks of Nigeria. Thanks to Nigeria indegenisation decree of 1973, which no longer allow the establishment of foreign banks with a majority of foreign interest. In compliance with this decrees the shareholder, Nigeria owing 28.3% in the year 1997, the Barclays Banking of Nigeria limited, change its name to Union bank of Nigeria with Barclays bank giving up 22% equity. 
Union bank in may 1989, the bank became 100% Nigeria owned and managed making it the first of the kind among the three biggest banking systems in Nigeria, section 29 (2) of the companies and allied matter, decree CAMB 1990, mandated all the public companies in Nigeria limited by shares to end their name with the worlds public limited company in compliance with this section and its subsection of this decrees the bank charge d from limited to Plc after it name now bears the union bank of Nigeria plc. In 1994, at the annual general meeting member approved by a special resolution to increase the share capital of the bank to N250 million as new capitals. 
Union bank of Nigeria plc annual report and account core capital consist 1 paid up capital statutory and other researcher is now very lose to the N1 billion banking history and it confirms the bank story position as the highest enterprises wholly owned and managed by Nigerian among the companies quoted on the Nigeria stock exchange with over 75years of banking services to the nation. The bank assets based has risen to N The bank is the first bank of Nigeria to achieve the N 4.5billion deposit account. The bank has 400 branches nationwide and will filed overseas branches in London. The bank also has over 12,000 staff strength. 
1.9      DEFINITIONS OF TERMS 
MANAGEMENT:- This can be defined as the variability that is likely to occur in the feature returns of the project. Management, This is defined as the process of directing, co-ordination and influencing the operations of an organization so as to obtain desired result and enhance a total performance. 
RISK:- A business organization that requite and hold deposit of funds from others, make loans or extends credit and transfer fund by written order or depositor. The terms occasionally but accurately applied to commercial banks only because of the peculiar types of services that commercial performs, they maintain and create demand deposited (checking account which are part of the nation money supply) a place of business or keeping or lending exchanging and issuing money. 
COMMERCIAL BANKS:- These are financial institutions, which accept deposit and other loans to the customers. 
FACULTY:- A bank faculty is any credit services rendered by a bank. It is distinct from bank services. Bank services included all such function performed by the banks or example opening a saving account, cashing cheque, opening a letter credit foreign remittance e.t.c. Bank facilities is a concession given to trusted customer at times on the pledging of available credit, credit facilities are not mutually exclusives. 
CREDIT:- A transaction between two parties in which one (creditor or lender) supplier money, goods, securities in returns for a promised future, payment by the other of debtor borrower. To sell or lend in the basis of future payment. 
MONEY:- This can be defined as anything which passes freely from hand to hand and is generally acceptable in settlement of debt. 
COLLATERAL:- A property pledge as a guarantee of payment or an obligation or loan.

TAXATION AND LOCAL GOVERNMENT DEVELOPMENT IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1    Background of the Study

Ademolekun (2005) noted that one of the recurrent developmental problems facing local government development in Nigeria is dwindling revenue generation as characterized by annual budget deficits and insufficient funds for meaningful growth and viable projects development. This statement implies that local governments have ineffective taxation policies which to a large extent affect their revenue base. Thus, they so much depend on revenue from the federal statutory account. This background brings us to the study of taxation and local government development in Nigeria. Tax has been defined by various authorities and professionals in various ways. Webster’s Dictionary of the English Language defines tax as a charge imposed by government authority on property, individuals or transactions, to raise money for public purpose. Black’s Law Dictionary describes tax as a ratable portion of the produce of the property and labour of the individual citizen, taken by a nation. Tax is a compulsory levy which a government imposes on its citizens to enable it to obtain the required revenue to finance its activities (Adesola, 2008).   
Examining the various definitions of tax one observes taxation is very important for any government if it has make any meaningful economic development. Thus, this study is concerned with development at the grass root as being the goals of the local government administration. Thus, in attempt to carryout development at all nooks and crannies of the society, the local government as the tier of government that is nearest to the people is saddled with the responsibility of direct development of the people to a certain level.Development is highly associated with fund, much revenue is needed to plan, execute and maintain infrastructures and facilities at the local government level (Okoli, 2000). The needed revenue generated for such developmental projects, like construction of accessible roads, building of public schools, health care centers, construction of bridges among others are soles generated from taxes, royalties, haulages, fines and grants from states, national and international governments. Thus, the Local government cannot embark, execute and possibly carryout the maintenance of these projects and other responsibilities without adequate taxation. This is the basic reason why development is skeletal at some Local Government councils in Nigeria. The issue of poor taxation is not exceptional to local government in Edo State, and Uhunmwode Local Government in particular. This however pronouncedly affected development negatively in local government councils. In this research project, the issue to address is how far this poor taxation can affect development especially in Uhunmwode Local Government.

1.2   Statement of the Problem

The Local Government Council takes direct care of the grassroots people that is the people in the rural areas. These groups of people sometimes lack essential facilities and condition of modern civilization (Udeh, 2008). They lack pipe bore water to drink, do not have electricity, accessible roads, poor educational infrastructure and facilities to mention but a few. This is one of the major reasons of rural–urban migration of movement. This has made our cities to be congested and increase in many criminal activities.

Based on the above and foregoing assertions, it is oblivious that the impact of poor taxation on the development of the rural area is a serious problem. This might be as a result of poor taxation. If Nigeria is to achieve her desired goal of vision 2020 and possibly meet the millennium development goals (MDGS) target, the issue of taxation must be addressed squarely. Hence the researcher is bothered to find out the impact oftaxation on the lives of people at the rural area and how it has affected development in general especially in Uhunmwode Local Government Area.

1.3   Purpose/Objective of the Study

The broad objective of the research is to evaluate the impact created by taxation on the development of Uhunmwode in Abia State. The other objectives of this study include:

To determine the level of modern social amenities available in Uhunmwode. 
To find out the level of poverty associated with the rural people as a result of poor development 
To make useful suggestions to solve the problem of poor taxation as development depends on revenue generated.  

1.4   Research Questions

What are the impacts of poor taxation on the development of Uhunmwode? 
Are there adequate modern social amenities in Uhunmwode? 
Is the poverty level of the rural people high has a result of poor development? 
How can taxation in Uhunmwode be improved?  

1.5   Significance of the Study

The significance of any human endeavour is measured by its relevance to solving human problems. The findings of this study would help Uhunmwode Local Government to identify the problems associated with taxation and its consequences on development.

1.6   Scope and Delimitation

The study is focused on taxation and local government development. The study also looks at the various tax administrations and especially on how revenue generated from taxes are managed for developmental purpose of Uhunmwode Local Government. The study will cover a period of five years (i.e. between 2005 and 2010).

1.7   Limitation of the Study

The study is focused on the impact of poor taxation and how it affects development of the local government areas. It will also involve the analysis of problems associated wit taxation and its impact on the development of Uhunmwode Local Government.

1.8   Definition of Terms

Some concepts require proper explanation to enhance our understanding of the theme where necessary opinion of scholars will be cited to explain the terms. The researcher will also give some fundamental definition of terms. 

Local Government:   According to Lawal (2000) Local Government as a political sub-division of a nation in Federal system which is constituted by law and has substantial control of local affairs which includes the power to impose taxes or exact labor for prescribed purpose. According to William Robson (2006) Defined Local Government as involving the conception of territorial, non-sovereign community possessing the legal right and the necessary organization to regulate its own affairs.

Revenue:   Public revenue could be defined as the funds generated by the government to finance its activities. In other words, revenue is the total fund generated by government (Federal, state, local government/ to meet their expenditure for a fiscal year. This refers also to the grand total of money of income received from the source of which expenses are incurred. Revenue could be internal or external revenue.

Generation:   This is the process of sourcing revenue for the local government in carryout their aim and objectives (Udeh O.S. 2008). 

Expenditure:  Public expenditure refers to the expenses which the government incurs for its own maintenance, in the interest of the society and the economy in order to help other countries.

Tax:   Tax can be defined as a compulsory levy by government on goods, services, income and wealth. It provides definite source of revenue for government expenditure. (Udeh O.S. 2008). It is the way by which government obtain extra money. It spent from income of individual and companies. Tax could be direct or indirect tax. A tax is a payment made by the taxpayers and used by the government for the benefits of all the citizens.   

Tax Evasion:  Tax evasion means illegal reduction in one’s tax liabilities, thereby paying less than the appropriate amounts and not paying at all.

Tax Avoidance:  Tax avoidance is the act of streamlining one’s financial affairs within the law so as to minimize the tax liabilities.

Development:   According to Ake (2001) development is the process by which people create and recreate themselves and their life circumstances to realize higher levels of civilization in accordance with their own choice and values. It also a type of social change in which new ideas are introduces into a social in order to produce higher per-capital income and levels of living through more modern production methods and improved social organization. 

TAXATION AS A MAJOR SOURCE OF FUNDING TO THE GOVERNMENT OF NIGERIA

CHAPTER ONE 
INTRODUCTION
1.1   BACKGROUND OF THE STUDY 
Taxation is a major instrument for the conduct of public policy. This is true for both developed and developing countries. Taxation is known to accomplish a number of objectives revenue generation for government, economic stabilization and income re-distribution. Taxation as an instrument of public policy is essentially concerned with the manipulation of financial operations of both the government anti private sectors with a view of furthering certain economic objectives. In Nigeria these economic objectives includes the attainment of appreciable level of full employment, avoidance of excessive inflation, achievement of satisfactory balance of payment position. Appreciable increase in the national income and a reduction of extreme inequality among the citizens, provision of other essential necessities of life like water, school building of bridges roads and others. 
The question now arises, How does the finding of these activities come about? The government can only discharge these duties by generating enough revenue to provide enough finance for the accomplishment of these tasks ahead and the Board of Internal Revenue is by law charged with the responsibility for assessing, collection and accounting of all taxes in Nigeria. The government to the individual and payable to the economic and social responsibilities define taxation as a compulsory levy. In Simon’s income tax (1852) Lord Maccnaghten quoted “ Income tax is a on income. Its not meant to be tax on anything else”.  Dalton (1954:23) defined tax as a compulsory contribution imposed by a public authority irrespective of service rendered in return. 
Income tax law and practice by Njokamma. CA. Defined income tax as a creative of statute. In interpreting its provisions. “ No equity, no intendment” or anything else should be implied. The clean terms of the law should be applied but no necessarily restricted against the revenue. Nevertheless tax is not the only sources of government revenue other sources include. 
¨   Fines and fees 
¨   Motor licensing fees 
¨   Rent on government quotas 
¨   Interest and repayments 
¨   Dividends and Royalties on government 
¨   Share holdings 
¨   Miscellaneous State share of federal government disbursement.
¨   Loans and grants 
¨   School fees 
¨   Hospital fees Revenue from government parastatals likes the water co- operation department. 
The private sector is not left out in the fund generation do their own fund comes inform of borrowing private savings etc The absence of well-organized and locally controlled money markets for borrowing has faced private sectors in most developing countries especially Nigeria to rely primarily on fiscal measures to mobilize domestic monetary resources for fund generation. For instance if profits of taxation, the marginal efficiency of investment will decline and consequently a fall in investment is observed. On the other hand if profit of investment are increased through low tax rate the marginal efficiency of investment will in investment is observed. 
However Duke Man (1962 P .462) said that for an effective tax system that encourages investment, has to some extent be based on high rates, a fact peculiar with the paradox of investment stimulating taxation, and as well discrimination, so long as it is significantly qualitative and psychologically substantial. This suggestion may not augur well for investment activity where retained profits and savings form the buck of capital formation. Realizing the importance to finance as the train wires of economic growth the government initiates financial policies through annual budgets and tax laws to fund and provide necessary extension services for these business enterprises and also through several government financial policy, ensures adequate financing of small scale enterprise. We are now convinced that of all these source of revenue by government that tax contributes the largest proportion. With charges in these considerations above attention have been focused on the fiscal policy best suited to the economic development of the country. As part of the search for desirable fiscal policies high consideration is placed on the value of goods and services payable by the final consumers. The collections of this tax are accountable to the federal government by the federal wand Revenue, while a reasonable percentage is given to the state where VAT is collected from. Nevertheless the implementation of various government measures the their effects are most times, at variance with the objectives of government. Some of the revenue collection agencies are either ill equipped to carry out their functions effectively or equipped with personal of dubious character who trust laudable objectives of the government. 
Most tax papers don’t pay willingly, some take laws into their hands to either evade or avoid tax while others collide with some tax official as well as employ the services of tax experts to explore the tax loophole. As a result of such ill activities towards taxation there is always a short fall in the government-projected revenue. In view of the importance to taxation as a principle source to government funding as well as a powerful instrument in the conduct of public policies. This study is aimed at exploring all avenues of tax collection in Nigeria and the performance of the Nigeria Board of Internal Revenue to keep the flag flying in support of the topic to the study that taxation is a major source of government funding.   
1.2    STATEMENT OF THE PROBLEM 
Tax constitutes the greater percentage of internally generated revenue in Nigeria and as well the major source of fund for the government financing its activities,. Tax however has its fundamental problems in the area of Administration and management. There is deficit in planning, control and Adequate information flow of Tax collection generally. Since the government financial policy and objectives is to ensure adequate fund and conducive environment for the people’s satisfaction through progressive taxation and other fiscal measures designed to end the rapid growth and development of the society for the benefit of the citizenry. 
It is therefore necessary that these avenues of fund are solidified. But on the other way round the implementation of the government taxation policy and the realization of the taxation goal most a times run at variance with the policy outlined in the annual budget as well as the tax laws provisions. Many individuals as well as organization see taxation policy as being harsh and unfavourable. They argue that while few enterprises especially large company continues to benefit from the government support through grants, Subsidies and other tax incentives. Others find the policies unbearable as a result any little opportunity by such people to evade or avoid tax is highly utilized. The results of all these tax evasion and avoidance are that less revenue that envisage is collected through tax by the government and thereby less social amentias than proposed are carried out. These problem will be solved as soon as an efficient machinery is set in motion for effective administration and review of state tax laws if made or amended.   
1.3    PURPOSE/OBJECTIVES OF THE STUDY
The objectives of the study is finding way of making the tax system effective and putting up measure that will help the government realize adequate fund for its developmental activities. Other objectives are 
1.       To discuss and analyze the taxes being administered and Eungu state.&nb sp;
2.       To ascertain the total value of taxes collected during the period year by year. 
3.       To determine other sources from which the Nigeria Government can generate more tax revenue. 
4.       To ascertain other sources of the government revenue improve on them. 
5.       To make suggestions on ways of increasing the total revenue of the state government both tax and other sources of revenue to the Government. 
To really achieve these objectives efforts will be made to: 
1.       Identify all the problems militating against effective tax assessment activities. 
2.       Analyze the problems and execute the suggested solutions
3.       Suggest implementation strategies with a view to assisting the management in carrying out government policies and programmes.
4.       Bring the problem to the focal eyes of the department and government. 
5.       Sensitizes the government and create the awareness on the people with abysmal attitude towards tax payment and its consequence on the economic and social development of the state.  
1.4     RESEARCH HYPOTHESIS 
H0:    Tax is not the major source of Government funding 
H1:    Tax is the major source of government funding 
H0:    There is no significant relationship between tax revenue generated by the state. 
H1:    There is significant relationship between tax revenue and total revenue generated by the state. 
H0:    Tax Administration system in Nigeria is not efficient and there is mismanagement. 
H1:    Tax Administration system in Nigeria is efficient and there is proper management. 
H0:    Nigeria government does not adequately accomplish her taxation problems. 
H1:    Nigerian government adequately accomplishes her taxation problems. 1.5   SIGNIFICANCE OF THE STUDY 
The study will help to evaluate the tax revenue generated and assess the tax collection machinery set in motion in Nigeria. It will also help to evaluate the tax and the government is exploiting other revenue source available to the state and how these source. This study if properly utilized will enable the Board of Internal Revenue and the State Government to know the problems effecting tax assessment and collection in the state. 
The study will also reveal how far the tax policies in Nigeria are being implemented furthermore strategies on improving on the revenues generation has mapped out for the provision of infrastructure.  As a result of this, there will be high standard of living for the tax papers of the state. Finally it is meant to enlighten the citizen of the state to know the objectives of tax and thereby reducing tax evasion and avoidance.  
1.6   LIMITATION OF THE STUDY 
Some circumstance beyond human control has brought some distraction research work, some of these inevitable circumstance are: 
a.     Education System: Abnormalities surrounding the educational system in Nigeria in which Nigeria is not an exception. 
b.     Limitation of Time: The limited number of months given for this research to done is less than 3 three months and normally this is to be done more than this time. The research work is combined with other academic activities in school. All these limiting factors had not allowed a thorough research work to be carried on effectively. 
c.    Financial Problem: Another problem the researcher faced was financial constraints and this limited the work. The high expenses incurred in gathering these materials, photocopying of essential material, typing of document etc. visitation where applicable. 
d.   Lack of Cooperation: Finally, is lack of cooperation with the researcher encountered by the Board not being very active in he release of adequate information. while some staffs were not willing to give out necessary data (Figures) either by ignorance or fear of exposure of such vital information.   
1.7     DELIMITATION OF THE STUDY
This research work is supposed to have covered the tax administration and its revenue generation system and the comparison with other sources of government revenue in Nigeria. Some tax administrated by the Federal Government like Company income tax, petroleum profit tax, capital gain tax, capital transfer tax could have been involved in this research. Due to the limit time constraint, shortage of information supply and financial constraints, the study cannot be extended to these major parts and has therefore been limited to the administration of tax as applicable in Nigeria Government.   
1.8     HISTORICAL BACKGROUND OF BOARD OF INTERNAL REVENUE NIGERIA 
The present day Nigeria Board of Internal Revenue would like most government agencies trace its origin to when the colonialist established their government in Nigeria. The needs for government to generate revenue to enable her execute her programmes brought about the Division of the Ministry and the Independence in 1960 and because of the expending responsibility, the Board of Internal Revenue was established as an autonomous government agency, charged with the sole responsibility of the tax assessment and collection within various jurisdiction in Nigeria. 
1.9     DEFINITION OF TERMS
Some of the terms used during this research, which have special application to study, are defined: 
Revenue: This is the gross receipt or receivable of a governmental unit derived from taxes, custom and other main sources of government revenue but excluding appropriation and allotment from the consolidated Revenue fund (CRF). 
Tax: The Oxford Advanced Learners Dictionary of current English DEFINES tax as “(sum of money purchase etc) to the government for public purpose”. Tax can also be defined as a compulsory levy by natural or cooperate, payable to the government for the benefit of the citizenry. 
Tax Assessment: The calculation the tax due to the paid by an individual. 
Tax Collection: Staff of the Board charged with collection of taxes from the public.
Zonal Tax Authorities: These are senior tax officer charged with assessing and collecting of tax within their zone. 
Tax Law: These are laws made by the government prone to review as well giving the guidelines and draft on how and paid. 
These laws are standard guiding all the tax offices in the federation. Examples are ITMA 1961 Income Tax management Act 1991 etc. Income management Act (ITMA): These are laws committee guiding the collection and payment of tax in Nigeria. This was promulgated in 1961 but since been amended. 

THE CHALLENGES OF BUDGET IMPLEMENTATION IN NIGERIA

CHAPTER ONE
INTRODUCTION
1.0  BACKGROUND OF THE STUDY
A Budget is commonly understood as the focus by a government of its expenditure and revenue for a specific period of time. The general budget can be defined as a government plan for revenue and expenditure for the coming fiscal year. According to Prof. Udabah S I, budgeting has been in operation in Nigeria and indeed other countries for a fairly long period, to assist in policy making and planning and also, to provide the basis for controlling income and expenditure. To him, the major source of anticipated revenue to backup budgetary expenditure by government is from indirect taxation because of the difficulty in the assessment and collection of direct tax from taxable individual. The inefficiency of tax officials and the corruption of some of them make it difficult for adequate revenue to be realized by government through direct tax.
Budget was employed to attain the objective of full employment in the economy, price stability, raising growth in National output, Balance of payment equilibrium and equity in income distribution. The united state of America experienced a budgetary system which places greater emphasis on the revenue than expenditure. The trend of development which places more emphasis on revenue was carried over to all the British colonies. However, in Nigeria, experience was derived from a more mature British system because, the national system was adopted during the time of independence between 1957-1960 in spite that Nigeria did not fail to encounter avoidable problem in the budget.           
Ude M.O. emphasised that government budgeting emerged out of representative democracy. Originally, in England, government budgeting was used as the instrument whereby noble compelled the monarch to be accountable to them for the expenditure of the proceeds from tax imposed by the monarch on the people later periods of Middle Ages. Fiscal and economic policy changes by government at times have destabilizing effect on the entire economy as that of Nigeria should not be disturbed with frequent policy changes. 
1.1 STATEMENT OF THE PROBLEM The Nigerian Economy is faced with series of imbalances in their implementation, despite the availability of the various source of fund to the government. Several budgets have been designed with sole purpose of arresting decline growth in the production sector, check inflationary pressure and correction of Balance of payment deficit and maintaining a reasonable foreign exchange reserve.  
However, the important question that arises is “Why is it that the objectives of government budget have not been achieved in most developing countries like Nigeria”. This has lead to an increase in the level of unemployment and equally to a general low level of standard of living. This project work, therefore, seek to have a look at loopholes that have been responsible for rendering the budget implementation ineffective, thereby not achieving the desired objectives. Though an insight into some budget have being done in the past to generally help in drawing critical analysis of the effect of budget in the economy. 
1.2 OBJECTIVE OF THE STUDY
1.    To study the nature of government budgeting basically in Nigeria. 
2.    To find out why targeted goals have never been achieved in Nigeria. 
3.    To find out the best revenue allocation formula that is suitable for economic growth and development. 
4.    To find out such other factors that is likely to affect budget implementation.
1.3  RESEARCH QUESTIONS
a.   Why is it that the objective of budget have not been achieved  in most developing countries such as Nigeria   
b.   What are the causes of poor implementation of budget 
c.   Why targeted goals of budget have never been met up in Nigeria.  
1.4SIGNIFICANCE OF THE STUDY
1. The result of the work will help policy makers in the area of public finance to know how to tackle some of their problem which has been researched on. 
2.It is also indeed anticipated that this research work will be of immense help to the academic and others who may find study invaluable source of material for their future research work. 
3. This research will help to correlate, compare and co-ordinate the financial administration of the various government departments.   
1.5  STATEMENT OF RESEARCH HYPOTHESIS
HYPOTHESIS I 
H0: The problem of government budget implementation in developing countries has no significant impact on the economic growth. 
HI: The problem of government budget implementation in developing countries has a significant impact on the economic growth. 
HYPOTHESIS II 
H0:   There is no significant relationship between the independent variable and GDP. 
H1: There is a significant relationship between the dependent variables and GDP.   
1.6SCOPE AND LIMITATION OF THE STUDY
To cut down on the constraint this might be encountered in form of death of data and other related constraints to a manageable proportion. the scope and the coverage of this study has been narrowed down, to cover (21years).The study will cover whole of Nigeria and will be limited to an evaluation of the problem of budgetary implementation in Nigeria using some target variable to make a generalization such as government budgeted revenue and government budgeted expenditure for the period 1986-2006.            
There were constraints such as sourcing of data and financial constraints sourcing of data from various government institution such as central bank is not an easy task as these institutions were not ready to co-operate, carrying-out a study of this nature need a lot of money and as a student, there is always a problem of inadequate fund.    
1.7    DEFINITION OF TERMS/ CONCEPTS
PUBLIC EXPENDITURE: These are expenditures that government render on some project like roads, hospitals, street lights, schools, etc. 
CAPITAL RECEIPTS: This refers to loan or grants made to the government. They can be made by other arms of the government or by international organization. 
RECURRENT REVENUE: These are income received by the government annually by way of taxation, fines etc. 
RECURRENT EXPENDITURE: These are expenditure on running cost of government such as salaries and interest on public debts. 
ECONOMIC SERVICES: These are expenditures on productive activities such as agriculture, fisheries, forestry, transportation and communication.
TRANSFER: These are expenditure that is made not on direct productive activities; examples are interest payment on national debt, unemployment benefit, pension payments, and help to other countries.

THE EFFECT OF BANK INTEREST RATE DEREGULATION ON THE ECONOMIC GROWTH IN NIGERIA

CHAPTER ONE 
INTRODUCTION
1.0   BACKGROUND OF THE STUDY 

The term interest can simply be define as the cost of using someone else money or viewed from the under point of view, as the price charged for allowing one to use someone else money. The role of interest is the reward for parting with liquid for a specific period of time.   The Nigerian Banking sector is among the most heavily regulated sector of the Nigerian economy. The special interest of government in the banking sector is due to its relevance in the provision of credit facilities of industries and most importantly the provision of soft loan for small scale businesses for development of economy in the country. As financial intermediary, banks help in channeling founds from surplus economics regions to the deficit one’s on order to facilitate business transaction and economic development in general. The real sectors economics are not left out in benefit found from the surplus spenders in the economy.   
Anyonwu (1997) opined that, commercial banks encourage savings. Since investments are made out of savings, the establishment of commercial banks especially in the rural makes savings possible home economic development is accelerated.   Bearing in mind that funds are owned by other people (the investing public / depositor) the banking ethic demands that such funds should be efficiently and effectively managed in order to build and maintain the confidence of depositor investors in the banking system and also uphold the competence and continued soundness of the banking system to reduce drastically the risk or possibility of bank failure or distress.   
The government most of ten may think its necessary to intervene in the operation of the banking system with the intention of correcting the short comings of the price fixing mechanism to ensure that what is commercially rational for an individual bank is appropriately rational for all socially interest rate charged by banks could be regulated to encouraged saving mobilization, ensure and faster adequate investment for rapid growth and development, bearing in mind the view of Goldsmith (1969) that the financial super structure of an economy accelerates the migration of funds to the best user i.e. to the place in the economic system where the funds yield the highest social return.   
The opinion of Greenwood and Jovanoric (1990) clearly approximate the view of Goldsmith (1990). They stated that financial intermediation promotes growth because it allows a higher rate of return to be earned on capital and growth in turn provides means to implement costly financial structure.   According to Akiri and Adofu (2007), the exisitence of externalities and imperfection in the financial markets of most developing economics has often called for intervention by the government through its appropriate agent (the central Bank in the case of Nigeria) to encourage investment and to re-channel credit to those economic unity with high social race of returns but low commercial rate of returns under the deregulated interest rate system, the market forces of demand and supply plays a very prominent role in the determination of interest i.e to arrive at a suitable interest role on both deposit and loans.   
Interest rate being cost of money, the government by deregulation interest intends to stop central on credit expansion by banks. If the cost of money is high, the business sector would not borrow and when they don’t borrow, it will go long way to reduce the inflationary tendencies associated with excess liquidity. This study attempts to find the probate effect of bank interest rate deregulation on economic growth in Nigeria.       
1.2     STATEMENT OF PROBLEM
Generally, banking industry operate on a profit base mobilizing fund from surplus sectors and lending it to into deficit sector in which interest rate is being charged on both the bank usually paid sector but charges higher interest when they want to lend it into deficit sector in order to make profit for banks to fulfill this, care must be taken in lending in order to safeguard the profitability of such banks.       
1.3     OBJECTIVE OF THE STUDY   The study attempt to makes in-dept analysis of the effect of bank interest rate deregulation on the economic growth in Nigeria and thereby assess the effect of the charges in interests rates on saving through the structure and growth of bank deposit implication on the economic growth.       
1.4     STATEMENT OF HYPOTHESIS 
At the end of this research work, the following opinion will be tested.
1.   Hi:   The high interest rate induces savings in banks
      Ho:  The high interest rate does not induces saving in banks
2.   Hi:   The high bank interest rates discourage customers from borrowing
Ho:  The high bank interest rate does not discourage customers from borrowing.   
This study will help the bank to know whether they should be more committed to increasing there changes on rate of interest and to know whether this will increase there customer patronage good will and profitability. To proffer policies, to determine the effect of lending policies on economy of Nigeria, to know the need for partial equilibrium analysis of bank deposit management to assess the effect of the changes in interest on saving through the implication of threat on the economy.       
1.5    SIGNIFICANT OF THE STUDY 
The researcher therefore, that by studying the pricing decision, it will be of benefit to the economy and individual alike, it will be of benefit to the economy in the sense that it will as to determine approximation compensation for labour used in production.  This study will equally enable firms to known how consumer perceive products, the reasons for the high and low price. In addition, the study will serve as reference point for future researchers relevance area.
1.6    DELIMITATION OF THE STUDY  
It is highly imperative to state categorically that this study paves way for others to further studies into areas that are not adequately covered by this researcher. Also there is room for further research into area cover by the researcher.      
1.7    LIMITATION OF THE STUDY 
Apart from the fact the writers intend to have detailed study of the above mentioned target area, writer is limited to these areas because of the following reason:   
1.   Time: – It is indeed pathetic that the researcher have a very limited time to carry out the research therefore, the writer needs to manage the source that is available in order to finish the research within the allocated time.   
2.    Financial Constraint: – The researcher would have loved to moved wider but this is not possible due to limited amount of money the researcher have, the researcher spirit all he could to make  this work successful.   
3.    Inadequate date: – This research work will be limited to the volume of information acquired through materials like national dailies, periodic journals, text books, internet materials and write – up on related subject.   
4.    Uncooperative Attitude of Respondents: – As it unduly know that banks are often busy. So questionnaire administrations were not answered very well because majority of the staff were occupied with the customers. This constraint might be regard as that of non-respo nse during peak periods.          
1.8   DEFINITION OF TERMS 
Interest Rate: – An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a bank as loan or overdraft etc.       
Deregulation: – Is the removal or simplification of government rules and regulations that constraints the operation of bank on interest rate for loan given.
Lending: – Is concerned with granting of credit facilities to customers.       
Normal Interest Rate: – This is the interest on the face value or coupon rate in the case of loans floated as securities.       
Real Interest Rate: – This is the interest adjusted for the effect of inflation. Real interest is only used in performance assessment.       
Prime Lending Rate: – This is the rate banks lend to their first class loan risk customers. For other customers the lending rate will be higher, the difference representing a premium for risk under taken by the lender.        
Interest rate Spread: – This is the differences between lending rate and borrowing rate.       
Borrowing Rate: – Borrowing rate to a banker’s customer the “borrowing rate” i.e. bank’s lending rate.

THE IMPACT OF CASHLESS POLICY ON PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

The importance of managing the economy efficiently cannot be over emphasized. The monetary authorities, by controlling the supply of money, maintain price stability and influence economic activities especially when combined with appropriate fiscal measures (Friedman, 1999). The banking system remains the major channel for monetary control by the Central Bank of Nigeria (CBN) and the monetary authorities in general. Unfortunately, it is estimated that about 65% of the cash in circulation in the Nigerian economy is outside of the banking system, thus severely limiting the impact of the CBN’s efforts at price and economic stabilization (CBN 2012). Consequently, the amount of money in the form of deposits available to banks for the creation of more money is reduced. The profitability of the banks, which to a large extent depends on the amount of money at their disposal for lending, is therefore affected by the large size of this informal sector.

However, the breakthrough in Information Communication Technology (ICT) has revolutionized human society in terms of communication, efficiency in processes, general exchange of information, and in the exchange of goods and services. Within seconds, businesses are carried out online across different geographical location making it impossible for physical cash to be used as a medium of such exchanges (Baddeley, 2004).

The Central Bank of Nigeria (CBN) in collaboration with the Bankers Committee, introduced the cashless policy designed to provide mobile payment services that aim to breakdown traditional barriers hindering the financial inclusion of millions of Nigerians, secure and make convenient financial services to urban, semi-urban and rural areas across the country.

However, implementing the cashless policy requires that the banks make huge investments on ICT and other technologies that would enhance the proper implementation of the cashless system. For banks that barely survived recapitalization, and several others forced into a merger and acquisition, this policy may affect their performances and productivity positively or negatively depending on the strength of the individual banks. Therefore, this study seeks to analyze the impact of this policy on Nigerian banks in relation to their profitability using Fidelity Bank as a case study.

According to (Cobb, 2005), “electronic payments can thus lower transaction costs stimulate higher consumption and GDP, increase government efficiency, boost financial intermediation and improve financial transparency”. She further added that “Governments play a critically important role in creating an environment in which these benefits can be achieved in a way that is consistent with their own economic development plans”.

Fidelity Bank, also known as Fidelity Bank Plc., is a commercial bank in Nigeria. It is licensed as a commercial bank, by the Central Bank of Nigeria, the central bank and national banking regulator. In 2011, the bank was ranked the 7th most capitalized bank in Nigeria, the 25th most capitalized bank on the African continent and the 567th most capitalized bank in the world. As of December 2013, Fidelity Bank Plc. was a large financial services provider in Nigeria with total assets estimated at over US$6.318 billion (NGN:1+ trillion), and shareholders’ equity in excess of US$1 billion (NGN:158 billion). At that time, the bank served 2.3 million customers at about 220 branches nationally (Wikipedia, 2015).

The current enlarged Fidelity Bank is the result of the merger with the former FSB International Bank Plc and Manny Bank Plc (under the Fidelity brand name) in December 2005. Fidelity Bank is today ranked amongst the top 10 in the Nigerian banking industry, with presence in all the 36 States as well as major cities and commercial centers of Nigeria. Fidelity continues to rank among Nigeria’s most capitalized banks, with tier-one capital of nearly USD1 billion (One Billion US Dollars).

1.2   STATEMENT OF THE PROBLEM

The quest for global relevance and sustainable development had led to wide exploitation of the benefits of cashless policy in payments system of Nigerian banks. The study examines the impact of cashless policy on the profitability of banks in Nigeria using Fidelity Bank Plc as a case study. It has become necessary for researchers to make use of values and figures obtained in the cashless services such as Automated teller machine (ATM), Point of sale (POS), and web based transaction (WBT) to examine its impact on the aggregate return on equity (ROE) of deposit money banks in Nigeria with a view of identifying the effect of this cashless policy on profitability of Nigerian Banks.

1.3   OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1.  To examine the impact of cashless policy on profitability of commercial banks in Nigeria.

2.  To examine the overall effectiveness of the CBN’s cashless policy.

3.  To determine the level of acceptance of the cashless policy by Nigerians.

4.  To identify the limitations in the implementation of cashless policy by commercial banks in Nigeria.

1.4   RESEARCH QUESTIONS

1.  What is the impact of cashless policy on profitability of commercial banks in Nigeria?

2.  What is the overall effectiveness of the CBN’s cashless policy?

3.  What is the level of acceptance of the cashless policy adopted by commercial banks in Nigeria?

4.  What are the limitations in the implementation of cashless policy by commercial banks in Nigeria?

1.5   HYPOTHESIS

HO: There is no significant relationship between the cashless policy and profitability

HA: There is significant relationship between the cashless policy and profitability

1.6   SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1.  The outcome of this study will educate stakeholders in the banking industry on how the cashless policy has influenced the profitability in the Nigerian commercial banks.

2.  This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This study on the impact of cashless policy on profitability of commercial banks in Nigeria will cover the level of profit made by commercial banks before and after the implementation of the cashless policy in Nigeria

LIMITATIONS OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

 Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

AN APPRAISAL OF OPERATIONAL PROBLEMS FACING MICRO FINANCE BANK IN DELTA STATE


CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

In Nigeria, the issue of financing active poor in both urban and rural areas through formal financial institutions is difficult (Ovia, 2007). Nigeria is facing various serious problems which are threats to the Nation economy (Anyanwu, 2004). According to National Financial Inclusion, in the provision of financial services, Nigeria lags behind many African countries. In 2010, 36% of adults – roughly 31 million out of an adult population of 85 million –were served by formal financial services. This figure compares to 68% in South Africa and 41% in Kenya/. This is because formal financial institutions deny the poor in both urban and rural areas access to financial services. In order to breach this gap, Nigerian government established various institutions as well as programmes to enhance the standard of living of people, make poor people self–reliance and turn out more entrepreneurs than job seekers in the country. Some of these programmes includes Directorate of food, Roads and Rural Infrastructure (DFRRI), Better Life/Family Support Programme, Family Economic advanced programme, Peoples Bank and Community banks. These programmes failed to achieve their objectives due to poor implementation, corruption and host of other factors. Government did not relent in their efforts to make financial services accessible to the poor, thus, the emergence of microfinance banks as an alternative credit system for the poor (Helms, 2006).

According to CBN (2005), “microfinance is about providing financial services to the poor who are traditionally not served by the conventional financial institutions’. There are three features that distinguish microfinance from other formal financial products. These are:

·        the absence of asset – based collateral;

·        the smallness of loans advanced and or savings collected, and

·        ease of operations.

Microfinance, according to Otero (1999) is “the provision of financial services to low – income poor and very poor self – employed people”. These financial service s include: small loans, savings, current, financing small business for the active poor both in rural and urban areas of the country.

Microfinance is a term used to refer to different methods for giving poor people access to financial services. Microfinance is about providing of timely, affordable, diversified, and dependable financial services to the active poor which otherwise would have little or no access to financial services. It is a financial intervention that focuses on the low – income group of a given society.

Many researchers conclude that in most developing countries, the formal financial system reaches to only 25 per cent of the economically active population. This leaves 75 per cent without access to financial services apart from those provided by money-lenders and family. Savings have continued to grow at a very low rate, particularly in the rural areas of Nigeria. Most poor people keep their resources in kind or simply under their pillows because of inadequate savings opportunities and products. Such methods of keeping savings are risky, yield no returns, and reduce the aggregate volume of resources that could be mobilized and channeled to deficit areas of the economy.

The Microfinance Policy Regulatory and Supervisory Framework (MPRSF) were launched in 2005 and the objectives are to address the prolonged nonperformance of many existing community banks. This lack of performance has been attributed to incompetent management, weak internal controls and high cost of transactions. Other objectives to be addressed by MPRSF are poor corporate governance, lack of well-defined operations, restrictive regulatory/supervisory requirements, and weak capital base of existing institutions. Indeed a huge gap exists in the provision of financial services to a large number of active but poor and low income groups, especially in the rural areas as a result of rigidity operations of formal financial institutions in Nigeria. Problem of funding also militates against the effectiveness of micro finance banks in Nigeria.

However, the conventional micro financing in Nigeria aggravates the inequitable distribution of income and wealth in Nigeria. This is due to the fact that while interest rate on both voluntary and mandatory savings for the clients are between 4.5% and 6% per annum. Lending at this rate is taking the rewards of poor and redistributes it to the rich. The poor borrowers must pay the amount through group pressure even if it resort them to another borrowing or selling their properties.

1.2   STATEMENT OF THE PROBLEM

CBN (2005) maintain that Microfinance banks are aimed at empowerment of the poor and the private sector, through the provision of needed financial services. This empowerment, it is hoped, will enable them to engage or expand their present scope of economic activities and generate employment. Doubts have been expressed about the effectiveness of the operation of the micro finance banks in Nigeria. The general objectives of this study is to find out the constraints that mostly challenged the operations of microfinance bank in Nigeria and to propose strategy that will enhance the elimination of those factors.

1.3   OBJECTIVES OF THE STUDY

The following are the specific objectives of this study:

1.  To examine the mode of operation of microfinance banks.

2.  To examine the operational problems facing microfinance banks.

3.  To identify the factors that can enhance the operations of microfinance banks.

1.4   RESEARCH QUESTIONS

1.  What is the mode of operation of microfinance banks?

2.  What are the operational problems facing microfinance banks?

3.  What are the factors that can enhance the operations of microfinance banks?

1.6   SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1.  Findings from this study will be a useful guide for the government of Nigeria in tackling the operational problems facing microfinance banks with a view providing effective banking services to the rural dwellers.

2.  This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic

1.7   SCOPE/LIMITATIONS OF THE STUDY

This study on the operational problems facing microfinance banks will cover the activities of microfinance banks in Nigeria with a view of identifying the operational deficit.

LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

 Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

THE ROLE OF CAPITAL MARKET IN INDUSTRIAL GROWTH AND DEVELOPMENT IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The capital market has been identified as an institution that contributes to the socio-economic growth and development of emerging and developed economies. This is made possible through some of the vital roles played such as channeling resources, promoting reforms to modernize the financial sectors, financial intermediation capacity to link deficit to the surplus sector of the economy, and a veritable tool in the mobilization and allocation of savings among competitive uses which are critical to the growth and efficiency of the economy (Alile 1984).

It helps to channel capital or long-term resources to firms with relatively high and increasing productivity thus enhancing economic expansion and growth (Alile 1997). Ekundayo (2002) argues that a nation requires a lot of local and foreign investments to attain sustainable economic growth and development. The capital market provides a means through which this is made possible. However, the paucity of long-term capital has posed the greatest predicament to economic development in most African countries including Nigeria.

Osaze (2000) sees the capital market as the driver of any economy to growth and development because it is essential for the long-term growth capital formation. It is crucial in the mobilization of savings and channeling of such savings to profitable self-liquidating investment.

The Nigerian capital market provides the necessary lubricant that keeps turning the wheel of the economy. It not only provides the funds required for investment but also efficiently allocates these funds to projects of best returns to fund owners. This allocative function is critical in determining the overall growth of the economy. The functioning of the capital market affects liquidity, acquisition of information about firms, risk diversification, savings mobilization and corporate control (Anyanwu 1998). Therefore, by altering the quality of these services, the functioning of stock markets can alter the rate of economic growth (Equakun 2005). Okereke-Onyiuke (2000) posits that the cheap source of funds from the capital market remain a critical element in the sustainable development of the economy. She enumerated the advantages of capital market financing to include no short repayment period as funds are held for medium and long term period or in perpetuity, funds to state and local government without pressures and ample time to repay loans.

In 1986 Nigeria embraced the International Monetary Fund (IMF)-World Bank Structural Adjustment Programme (SAP) which influenced the economic policies of the Nigerian government and led to reforms in the late 1980s and early 1990s.The programme was proposed as an economic package to rapidly and effectively transformed the Nigerian economy within two years (Yesufu 1996). However, until SAP was abandoned in 1994, the objectives were not achieved due to the inability of government to judiciously implement some of its policy measures Oyefusi and Mogbolu 2003). The notable reforms include monetary and fiscal policies, sectoral reforms such as removal of oil subsidy in 1988 to the tune of 80%,interest deregulation from August 1987, financial market reform and public sector reforms which entails the full or partial privatization and commercialization of about 111 public owned enterprises. The Nigerian Stock Exchange was to play a key role during the offer for sale of the shares of the affected enterprises (World Bank 1994; Anyanwu 1993; Anyanwu et al. 1997; Oyefusi and Mogbolu 2003).

The introduction of SAP in Nigeria has resulted in a very significant growth of the country’s stock market as a result of deregulation of the financial sector and the privatization exercise which exposed investors and companies to the significance of the stock market (Alile1996;Soyode 1990). Ariyo and Adelegan (2005) contend that the liberalization of capital market led to the growth of the Nigerian capital market yet its impact at the macro-economy was negligible. Again the capital market was instrumental to the initial 25 banks that were able to meet the minimum capital requirement of N25billion during the banking sector consolidation in 2005.The stock market has helped government and corporate entities to raise long-term capital for financing new projects, and expanding and modernizing industrial/commercial concerns (Nwankwo 1991).

Given the roles the capital market has played during the privatization of public owned enterprises, recent recapitalization of the banking sector and avenue of long term funds to various government and corporations in Nigeria.

The major focus of this research is to empirically assess with the contribution of capital market to economic growth in Nigeria.

1.2STATEMENT OF THE PROBLEM

The capital market is one of the main avenues investors invest their hard earned currency in anticipation of good returns or yield. But since the inception of the global economic crunch in addition to a number of causing factors the impact of the capital market has remained rather docile. The federal government effort at revamping it has still not yielded enough result.

In the light of this, the following statement of research questions are being raised.

1.           Does the capital market enhance the growth of the Nigerian economy?

2.           Does the capital market enhance and promote investment in Nigerian economy?

3.           Does the capital market help to increase value of transactions (government and industrial securities)?

1.3RESEARCH OBJECTIVES

This research work seeks to achieve the following objectives.

1.           To ascertain whether the capital market enhance the growth of the Nigerian economy.

2.           To critically examine whether capital market enhance and promote investment in Nigerian economy.

3.           To verify whether the capital market help to increase value of transactions (government and industrial securities).

1.4SCOPE OF THE STUDY

This study is undertaken to evaluate the impact of Nigerian Capital Market as an Instrument in mobilization of investment capital. As such, this study is restricted to all companies quoted on the floor of the Nigerian Stock Exchange market. Temporally or in term of time series, a period of twenty seven years is used i.e. 1981 to 2008 using some market indicators as means of assessing the impact of the capital market in mobilizing investment in Nigeria. It is hoped that this will help to achieve the stated objective of the study.

1.5RESEARCH HYPOTHESIS

The following hypothesis will be tested

Hypothesis I

Ho:   The capital market does not enhance the growth of the Nigerian economy

H1:   The capital market still enhance the growth of the Nigerian economy

Hypothesis II

Ho:   The capital market does not enhance and promote investment on the Nigerian economy.

H1:   The capital market still enhances and promotes investment on the Nigerian economy.

Hypothesis III

Ho:   Capital market does not help to increase value of transactions (government and industrial securities) in Nigeria.

H1:   Capital market helps to increase value of transactions (government and industrial securities) in Nigeria.

1.6SIGNIFICANCE OF STUDY

This research work on its conclusion, together with whatever solution or findings that may arise, will prove useful to some particular group of persons or otherwise for various reasons in accordance with their varying needs.

Beneficiaries

–              Stakeholders: This study will be important and beneficial to stakeholders of an organization to know the role of the Nigerian capital market in mobilizing investment in Nigeria economy.

–              The Government: It will acquaint the government of the importance of Nigerian Capital Market and how it should be properly managed.

–              The public: This study will help to restore the lost confidence of the public as regard the Nigerian capital market and investment mobilization in Nigeria economy.

–              Academic/future researcher: Both academic and other future researchers in this similar subject matter will find it a useful source of learning and research.  

FINANCIAL MANAGEMENT IN GOVERNMENT OWNED COMPANIES

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Nigeria limited, an economic parastatals was incorporated in may 1962 under ordinary company law as a partnership between the form Nigeria government and said machine. The supplied plant to the company and managed the affair until the war broke out in 1967 is only indigenous gas producing company in Nigeria.

            After the war in 1970, the company was reactivated and started production on 1stApril 1975. between 1983 and 1984 there was cram shaft broke down which resulted in the stoppage of production. The company received #733.000 from the state government which was later converted into their share and also as loan.

1.2              STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY

The statement of the problem is to carryout an investigation into the field of financial management practice in government owned companies, with particular reference to Nigeria limited and also highlight the financial problem facing these companies in this problem the main purpose of this study is to:To identify and examine some factors that militate against successful financial management of government owned companies To find out why those problem have been difficult to solve and make recommendation and suggestion on how they should be solved. Explore other areas which in the writers opinion are relevant for effective management of funds. To recommend generally and specifically the study of financial management.

1.3              RATIONALE OF THE STUDY

Financial management vary necessary according to the nature of the enterprise concerned, once the corporation objective have been defined, the examination of the whole business structure and the related financial need as follows:

            The goal and objective of financial management is to maximize the shareholder wealth by this view they should formulating the firms objective in terms of the share holder interesting the main base of financial market is implemented. That mean the firms with better performance will have higher stock price and additional funds can be commonly pressure the aims of financial management is the maximization of the firms value (i.e. profit maximization relative to investment).

To obtain these, some unprofitable short run may be required

Financial management objective of the company is to maximize its value to their share holders.

1.4              SIGNIFICANCE OF THE STUDY

Financial management is very important for the achievement of the firms goal and objective. Because it help the financial manager to carry out their effective project financial management in government owned companies help to see how the field of financial management will contribute to a better improvement of the study of finance, there by minimizing the result of our investment and divided decision by companies.

            It helping the finance manger for decision making by planning for futuristic event that may occur for day to day business activities.

1.5              DEFINITION OF THE TERMS

Financial management may be defined as the function and areas of responsibilities of financial manager such as.The raising of funds to finance project. The employment of funds to raised in viable project The management of the cash flow arising from these project The return of funds to the funding sources. This fund are raised from financial market and allocated among different uses the flow of fund involved in the operation of the enterprise are managed. The financial management in the provision of fund of time it is required any person responsible for finance in any form, is confronted with the prospects of inflow and outflow at receipts and payment and they arise.

LIQUIDITY MANAGEMENT PRACTICE AT FIRST BANK OF NIGERIA

CHAPTER ONE

INTRODUCTION:

BACKGROUND OF THE STUDY

A bank is considered liquid when it has asset and investment in security that are easily reliable at a short notice without a loose to the bank together with the ability to raise fund from he other source, to enable it to meet its payment obligation and financial commitment in a timely manner. In addition there should be financial commitment buffer to meet almost all financial emergency.

Liquidity management of a commercial bank is a very vital issue in the banking industry. It is the ability of the bank to manage its liquidity position so that neither the liquidity nor the profitable will suffer. For this to be effective, liquidity management must contribute to the achievement of the overall cooperate fund management objectives to attain and maintain a balance of profitability, solvency and liquidity.

Obligation of the maximum liquidity owed by surplus unite can only be archived by holding enviable fund as cash since it has maximum profitability. The must invest all fund on loan and average the highest yielding, and most liquid of the entire asset in the bank.

Banks, because of the important role they play in the economy, particularly in monetary and credit aspect of the economy faces a lot of restriction irrespective of the fact that banks are the most highly and closely regulated of all the business, they still have to operate within the confines of the law and solve the problem of liquidity and profitability dilemma in the economy. Apart form the constraints and the dual role of liquidity and profitability, there is virtually no work on the liquidity management in Nigeria commercial banks. In the light of this, the researcher has decided to discuses this topic based on the analysis of the data collected. The researcher will suggest some solution the problem of liquidity management in the country.

STATEMENT OF THE PROBLEMS

Commercial bank asset management is a never-ending thing of war. This war is pitched between efficient liquidity management on one hand and profitability on the other hand. As Liquidity and profitability are two inherent goals in commercial bank, bank managers will continue to experience the conflict o trying provide efficient mechanism of addressing their bank liquid and hence their safety of necessarily arising from the nature of their liabilities.

A high proportion of commercial bank liabilities are made up of demand deposits (current account fund deposits) saving deposit, fixed deposit and fund from other source. Demand deposit are those bank liabilities that are payable on demand. Necessary commercial bank need to keep only liquid asset to meet a considerably volume of withdrawal. Liquid asset earn little of zero return on asset. It is les risky and the less it likely to yield adequate returns. As such, the high the less risky asset, the more banks is expose to experience a bank run or crisis. At that rate will probably not able to recover all its cost and then also make profit for the owners. But behold. Commercial bank are business oriented firm with their share holder interested on profitability. In other to satisfy its share holders, a bank might be attempted to forget liquidity and pursue profitability by investing on a high yielding less liquid asset that are profitable at the expense of liquidity which is dangerous. It is always necessary to balance liquidity and profitability in order to have efficient bank management.

The ratio or the percentage of idle cash balance in the commercial bank are to hold at any point in time and to what form to hold it is very necessary. While doing that, they should bear in mind the importance of satisfactory level of profit. There are many constraints to bank in achievement of their goal liquidity and profitability such as legal reserve requirement and they should maintain adequate liquidity to meet the unforeseen and seasonal loan demand and fluctuations of deposits. Cash reserves are also needed to take the advantage of unexpected profitability investment opportunities. In effect, banks are constrained and have to walk on a tight rope. There is the never ending of war or what I may refer to as dilemma policy commercial bank management in developing country. The Nigerian case is further aggravated by the inconsistency of the monetary policy as administered by the central bank of Nigeria. Is the reticent of the monetary coups detach. You will just walk up one morning and hear over the radio of via circular No XY2 that the central bank of Nigeria has issued a monetary circular No adjusting the private whether upward or downward.

The federal government directive on withdrawal on all federal parasttatals account from the commercial bank is one of such constraint. The stock stirred up aggressive market in the banking industry.

Although all this stock are necessary to produce the desired control of money in the economy, but such tends to give nightmare to the banking management. This directive causes ripples in the banking industry as such cause more discrepancy in the liquidity position of the commercial bank and subsequently the rate of profitability.

OBJECTIVE OF THE STUDY

The objectives of the study are;To look at the liquidity management of the bank in Nigeria with more emphasis on their investment liquidity and profitability portion. To found out why bank need to be more liquidity than any other business organization To solve the liquidity – profitability problems of the banks. To look at the effectiveness and management of the portfolio, by employing and using various approach, theories and instrument in solving their liquidity profitability problems. To examine the bank investment outlet (e.g. loan and advance investment in treasury bills. Banker unite fund, bankers certificate called money, equity participation in small and medium scale firms etc) and the degree of liquidity of such establishment shall be examined. To take critical look of the asset portfolio management of banks with a view to determine if there is a relationship between the rate of profitability and liquidity. To identify why Nigeria banks are excessively liquid and at the same time make high profit.

SIGNIFICANCE OF THE STUDY

The importance of liquidity management in the banking industry cannot be over – emphasized. Since not more contribution was made in the topic liquidity management, the researcher will carefully examine those relevant to efficient liquidity management for a successful achievement of the desired profitability.

It is hoped that the result obtained form the study will benefit the management and the non-bank financial institution, business enterprise and student of financial accounting, banking and finance student and other related course.

Readers of this study/work will be expose as regarding the input of future study. The basis of this research work is the position of liquidity of the Nigerian commercial bank as determinant of profitability.

DEFINITION OF TERM

Portfolio: this is a list of security and investment loan stock, shares and lands held/owned by a bank, individual or and organization

Portfolio management: this goes with the management of the security holding (investment portfolio of a bank or a business firm). A committee or portfolio management department or any other body might manage a portfolio.

Liquidity: it is the ability of bank to pay cash immediately when called upon to do so for all of its demand liability.

Liquidity management: it is the ability of the bank to manage the liquidity position so that neither the liquidity nor the profitability will suffer. It evolves the provision for the withdrawal of deposit, short term, and cash cyclical and satirical cash requirements.

Bank deposit: these are fund deposited in a bank. It is divided into demand saving and time deposits

Demand deposit: this also known as checking the account deposit payable on demand that is without pro notice of withdrawal.

Saving deposit: this type of deposit is usually evidence by a past book under which the depositor customer of the bank is required to notify the bank before withdrawal, but it is not the same in practice.

Asset: these are the entire property of a bank and other investment in other profitable organization.

Asset management: it is the allocation of fund, the basic objective being the maximization of profitability, solvency and regulatory constraints.

Bank run: A run occurs in a bank where there is mismanagement of liquidity and profitability.