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.       


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         


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. 
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? 
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. 
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. 
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. 
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. 
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. 
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.


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)  
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   
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.  
(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. 
(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.
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.
 The area of this project in Enugu, the research is to determine how foreign exchange could be effectively managed in Nigeria by CBN.   
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.   
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).            



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.       
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.   
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). 
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. 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. 
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.   
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.   
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


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. 
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. 
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.
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. 
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. 
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. 
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. 
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.


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.    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.
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. 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.   
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. 
H0:   There is no significant relationship between the independent variable and GDP. 
H1: There is a significant relationship between the dependent variables and GDP.   
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.    
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.





Poverty has steadily increased in Nigeria in the last ten years. Both world bank reports and human development reports can lend credence to the above assertion in 1087, Nigeria was ranked 54th and was classified as middle income nation by the 1981 world development report. By 1957 Nigeria had lost her status a middle income nation and by 1991, if has joined the club of the poorest countries of the world with such other countries as Tanzania, Somalia Bangladesh, laws, Malawi, Nepal, chard, Burundi, sierra, Leone and Madagascar (new swatch January 13, 1992) Nigeria income per capital has also declined steadily from and 800 in 1980 and 250 in 1989.


It is a common knowledge that the third would countries are generally poor. Even though there are poor people in developed world they are not comparable to the developing world. In African Nigerian is regard as the giant of African because of its abundant natural and human resources.

        In Nigeria today, the poor get poorer and the rich gets richer this raises serious question on the existence of true democracy and one Nigeria. it is against this bank ground of suffering and deprivation of the poor that this research work is designed to investigation how encourage growth in Nigeria to reduce poverty among Nigerians.


This study if successful conducted and this recommendation implemented can changed the country are reduced poverty this can systematically attract the much needed conduction to reduce poverty in Nigeria.


The significance of this study is to achieve a great success in contributing the little researcher can, if not a great deal in alleviating the suffering of Nigeria masses by improving their living standard.

            The study also is expected to improve Nigeria economy and national development.

            It is a well know fact that a hungry nation is an angry nation and a healthy nation is a wealthy nation.

            When the nations citizens are healthy, the national development will be improve because the nations development is determined by the working capacity of her citizens.   


In order to prevent ambiguity, the following terms used in this project writing has been defined as follows.


Poverty here means a living condition in which an entity is faced with economic social, political, cultural and environmental deprivation to which a person house hold, community or nation can be subjected.

Third World Countries

This is a collective team used to refer to most or all the developing and under developing countries mostly found in Asia, Africa and Latin America in which Nigeria is classified also.

Poverty alleviation

Various effort put in by public and private entities to reduce poverty.





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.


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)?


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).


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.


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.


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.


–              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.  





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.


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.


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.





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.


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.


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.


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.


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.





In Nigeria, the first and prime objective of any business in the private sector is to make profit but the uncertainty interest today’s economic environment.  Threatens the survival of every business and makes sound liquidity and cash retention the vocal point for the management rather than the achievement of maximum profitability in experience of past few years had shown that no business or industry larger or small in Nigeria Today could claim to enjoy immunity from the financial, the threats to economic survival that had development recession.  Shrinking government revenue from domestic taxation and oil acute shortage of foreign exchange removal of petroleum subsidy and the creeping-devaluation of the Nigeria currency in view of above situation, management attention should therefore be focused on the management principles & techniques that can help the business to survive within the uncertain economic environment?


In recent years, the rate of business liquidates and winded up has increased tremendously.  In Nigeria, the last ten years witnessed winding up of banks & other multipurpose firms.  These recent change has be unfortunate development has created lack of trust on the side of the investors.  Investors had lost millions of Naira in these liquidated businesses.  Furthermore foreign investors have turned their back of Nigeria economy owing to fear of business Falian these led to acute unemployment low productivity & non payment of dividends to the share holders to this end a study towards solving this problems is indeed a welcome development.


The purpose of this study is to carryout research on the problems in management of recessionary economy of Nigeria the study with three for be guided by the following objectives.

1.         To determine the problems of a recessed economy

2.         To determine how these problems effect the management of business in a recessed economy.

3.         To proffer a solution to solve the problems of management in a recessed economy.


The significance of this research work is for its out come to throw more light on the management of a recessionary economy.  The outcome will hope fully help to recommend solutions to those problems I also hope that this work will be of great relevance to other researchers of the same field.


1.         Economy:-       A given environment of business and other activities.

2.         Management:- It is the are of doing things through and with people.

3.         Budgeting:-     To on how money & other items should be bought & spent.

4.         Accounting:-   The process of showing how financial obligations

were carried out.



This study was on the study of recapitalized commercial banks and their SME customers in Nigeria. This study was guided by the following objectives; to determine the relationship between Commercial Banks and the performance of Small Business Entrepreneurs in Nigeria, to determine whether bank recapitalization led to increase in funds for financing SMEs and to examine the accessibility of Small and Medium Enterprise Equity Investment Scheme (SMEEIS) funds to SMEs. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the chi-square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 60 SME owners Port Harcourt branch.

The study findings revealed that there is a positive significant relationship between commercial banks and the performance of small business owners in Nigeria although the relationship is 70% but if more effort is added at least they can be up 90% efficient in their assistance; based on the findings from the study, the Nigerian banks and indeed all stakeholders should improve on the funds made available to SMEs in Nigeria. 




Obio/Akpor Local Government Area in the metropolis of Port Harcourt is one of the major centres of economic activities in Nigeria and one of the major cities of the Niger Delta, located in Rivers State. The Local Government Area covers 260 km2 and at the 2006 Census, held a population of 878,890 with about 70% of the population engaging in Small and Medium scale Enterprises (SMEs) or in agricultural production.

Small and Medium Enterprises (SMEs) play a vital role in the development of  any national economy. Due to their importance and the crucial role they play in the economic development and growth of any nation, much attention has been placed on the financing of small and medium enterprises, since they are major contributors to the economy of Nigeria. These enterprises are drivers of the economy; therefore policy attention has to be given to them especially in developing economies because of their impact on many sectors of the economy. Their impact is felt in the following ways: Greater utilization of local raw materials, employment generation, encouragement of rural development, development of entrepreneurship, mobilization of local savings, linkages with bigger industries, provision of regional balance by spreading investments more evenly, provision of avenue for self employment and provision of opportunity for training managers and semi skilled workers.

In Nigeria generally, credit has been recognized as an essential tool for promoting small and Micro Enterprises (SMEs), hence the need for the recapitalization of commercial banks in Nigeria. Bank recapitalization which was effective from 2006 is aimed at making Nigerian banks stronger and better positioned to finance all sectors of the economy including the major drivers of the economy which are Small and Medium Scale Enterprises.

In Obio Akpo, the local government has recognized that for sustainable growth and development, the financial empowerment of the people is vital. If this growth strategy is adopted and the latent entrepreneurial capabilities of this large segment of the people is sufficiently stimulated and sustained, then positive multipliers will be felt throughout the economy. To give effect to these aspirations, various policies have been instituted over time to improve rural and urban enterprise production capabilities Olaitan (2006).

The central Bank of Nigeria on July 6th 2004, announced the recapitalization of banking sector from N2 billion to N25 billion with effect from 1st January 2006. This was with a view to make the sector internationally competitive, sound and improve its ability to provide credit to all the productive sectors of the economy. In order to meet this obligation, banks embarked on strategies of mergers and acquisitions, floating of new shares and so on. At the end of the exercise, Twenty-five (25) new banks emerged. It was hoped that the consolidation will make the banks stronger to be able to provide large amount of funds to the productive sectors of the economy which is predominantly dominated by SMEs, thereby making them grow into large firms with enough resources to contribute to the economic development. Also, in December 2005, the CBN introduced new Micro-finance Policy (MFP) which was designed to be public and private sector driven.

The purpose of the policy was to strengthen community banks in order for them to be able to grant collateral and non-collateral loans to finance micro economic activities in the economy. The policy also aims at providing many people with access to financial services who otherwise will have no access to these services even in the grass root level.

A sound and well-developed financial system in a local government has been recognized to play the role of efficient financial intermediation, thereby helping to bolster general economic growth and development. Through their financial intermediation functions, financial institutions link up savers and borrowers. They also create liquidity in the economy, reduce information costs, provide risk management services, reduce the risks of financial transactions, diversify assets and mobilize savings from the surplus unit of the economy for investment into the most productive ventures.

These benefits motivate financial reforms in the local government where the system is considered undeveloped in order to increase the size of domestic savings, improve the efficiency of financial intermediation and enhance the effectiveness of the financial system. One of the main thrusts of bank recapitalisation in the country is to address the financial problem of the Small and Medium Enterprises (SMEs), which dominate the productive sector that forms the main driving force and the engine of economic growth and development of the economy (Soludo, 2006). SMEs in Obio Apko Local Government Area, falls in the category as defined in the CBN‟s revised Guidelines on Small and Medium Enterprise Equity Investment Scheme (SMEEIS), which are categorized as enterprises with a maximum asset base of N500 million (excluding land and working capital), and with no lower or upper limit of staff.

SMEs in Obio Akpo have a crucial role to play in the development of an economy, they are training grounds for local entrepreneurs, they encourage local savings and ensure equitable distribution of wealth thereby reducing rural- urban migration of human resources.

To this end, government should collaborate with private sector in order to create an enabling and conducive environment for SMEs, so that they can contribute positively towards the development of the economy.

To this end, it is the aim of this research to assess the effect of bank recapitalisation on funds availability and performance of SMEs in Obio Akpo Local Government Area in Rivers State 


The recapitalization development led to various financial activities in the Local government’s financial sector and the country as a whole with most banks initially opting for additional source of fund from the capital market via floating of shares.

However, the consolidation of the banking sector presented new challenges to the banks in Obio Akpo as they require more effort to control their costs and increase their efficiency; this in turn has affected the volume of credit facilities granted to small and medium scale enterprises in Obio Akpo.

According to Iloh (2012) the gap between deposit money bank deposits (DMBD) and commercial bank lending to SMEs from year 2000 upward (the year that saw the end of merchant banks) has increased. There is a wide margin between the two variables because while deposit money bank deposits rose very high, commercial bank lending to SMEs declined from 2004 to 2010. The gap between commercial bank deposits and its lending to SMEs reveals the shift in focus from lending to SMEs to lending to major investors (customers). Regardless of the direct impact of community/microfinance bank on SMEs, SMEs still cry for lack of funding and that is to say that lending to SMEs in Obio Akpo is still poor. This is so because their capital reserve and deposit are very small and insufficient to meet the needs of small and medium entrepreneurs.

It has been argued that SMEs in Obio Akpo have not performed well so far as their role in the economic growth and development of the state is concerned. The situation is even more disturbing when the performance is compared with that of many other states. Recent literatures that include Ganbold (2008) and Beck, documents evidence that the degree of vibrancy of SMEs significantly affects the level of poverty, unemployment and standard of living of the citizenry. Financial constraint is arguably said to be the main problem of SMEs. In recognition of the importance of SMEs, The Local Government has set up various credit schemes, programmes and institutions aimed at developing the sector and solving its financial predicament since the early years. Despite some recorded successes, the programmes seem to have failed to promote the development of SMEs in Nigeria to the expected level. 


The primary objective of the study is to examine the effects of bank recapitalization on small and medium scale enterprises in Obio Akpo Local Government Area of Rivers State. Specific objectives of the study are:

To determine the relationship between Commercial Banks and the performance of Small Business Entrepreneurs in Obio-Akpo Local Government area of Rivers State.

To determine whether bank recapitalization led to increase in funds for financing SMEs in Obio-Akpo Local Government area of Rivers State.

 To examine the accessibility of Small and Medium Enterprise Equity Investment Scheme (SMEEIS) funds to SMEs in Obio-Akpo Local Government area of Rivers State. 


In-order to achieve the above stated objectives, the researcher formulated the following research questions:

What is the relationship between commercial banks and the performance of small business entrepreneurs in Obio-Akpo Local Government area of Rivers State.

Does bank recapitalization increase funding for SMEs?

How accessible are Small and Medium Enterprise Equity Investment Scheme Funds to SMEs in Obio-Akpo Local Government area of Rivers State? 


The following hypotheses are formulated in line with the objectives and research questions of the study:

Ho: There is no significant relationship between Commercial bank and the performance of Small Business Owners in Nigeria.

Hi: There is a significant relationship between Commercial banks and the performance of Small Business Owners in Nigeria.

Ho: Bank Re-capitalization has not led to the increase of funds to SMEs

Hi: Bank recapitalization has led to the increase of Funds to SMEs

Ho: Small and Medium Enterprise Equity Investment Scheme funds are not easily assessable to SMEs

Hi: Small and Medium Enterprise Equity Investment Scheme funds are easily assessable to SMEs 


Robust economic growth cannot be achieved without putting in place well focused programmes to reduce poverty through empowering the people by increasing their access to factors of production, especially credit. The latent capacity of the poor entrepreneurs would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self-reliant; increase employment opportunities, enhance household income and create wealth.

However, the lack of required financial support from the microfinance banks to Micro Business operators in Port Harcourt state has become a major concern in Nigeria. Hence, this study shall be relevant to policy makers in the areas of finding out the impact of micro financing on the small scale investors. Also, this study shall enhance further research in the subject area. 


The scope of this research work is the recapitalized commercial banks and their SME customers in Obio Akpo Local Government Area. However, due to the fact that there are many SME’s, the research is limited to SME owners in Port Harcourt. 


Time and financial constraints were the major limitations of the study. Since the researcher could not afford the cost of reaching out to more banks, money became a challenge. The researcher was also engaged in other school activities which also limited the time used for the project. 


Economy: An economy is the total sum of product and service transactions of value between two agents in a region, be it individuals, organizations or states. An economy consists of the economic system, comprising the production, distribution or trade, and consumption  of limited goods and services between two agents, the agents can be individuals, businesses, organizations, or governments.

Mergers and Acquisitions: Mergers and acquisitions (abbreviated M&A) is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture.

Recapitalization: Recapitalization is a sort of a corporate reorganization involving substantial change in a company’s capital structure.

SMEs: Small and Medium Enterprises

SMEEIS: Small and Medium Enterprise Equity Scheme 





         The first bank as a commercial bank is a profit making organization it’s objective include profit maximization, maximization of earning per share and maximization of share price through increase virtual banking and other programmers. The level of achievement of there objective is essentially a measure of business efficiency.

         The need therefore arises for the first bank to rigorously pursue it’s goal by making effective use of all the resources at it’s disposal. Hence it has become ever more important in recent time due to the general economic downtown and sector by the government for the banking to move from one sphere into other areas of commerce and industry which are deemed to be profitable as asset portfolio adequately meet this needs.

         However, it should be noted that it is folio but rather, it is mandatory that the organization aims at working with the optimal combination of investment and the financing thereof which would produce the desired result, and this calls for effective management.

         Bearing in mind that investment induces the killing of an option; the option of productivity investment at any time in the future, the manager of the portfolio should exercise adequate skill and caution an efficient and effective manager would take into consideration. The high volatile and unpredictable nature of the money and capital markets in working out an investment policy and such policy should in be highly flexible so as to absolute the disadvantage by changes in government fiscal and monetary policies.


         The following which constitute the research question, stand at the heart of the research problems.

To what extent do first ban assets manager portfolio theory in practices?

How does assets portfolio diversification reduce risk in an empirical situation?

What factors actually determine the investment mix that reduces risk taking into account the Nigerian situation?

How difficult is portfolio management in practices?

  How what extent does first bank participate various market, the money and capital market the real estate sector e.t.c

Does management of bank portfolio requires a financial expert?


Portfolio management and its impact on profit ability level of banks in Nigeria is therefore a venture that requires adequate skill (s) and intellectual application gained through experience and bank practices. However there is one great asset of portfolio management which is a special note and this is the ability of portfolio managers to significantly reduce risk through diversification.

The following objective comes to mind in the choice of the topic:

1)   To determine to what extent portfolio management theory is applied in practice by first bank in the assets portfolio management.

2)   To determine the similarities and the difference in the portfolio management strategies between the banks.

3)   To determine the relative importance of effectively managed assists to first bank operational to absolve the disadvantage created by change in fiscal and monetary policies.


         It is intended in this study to appraise thoroughly the theoretical foundation on which the actual practice of assets portfolio management and it impact on the profitability level of banks in Nigeria is built in order to be acquired with the basic factors about investment markets, price movement and firm analysis, previous works on the theory of assets portfolio management and its impacts on profits level will be looked upon extensively. The researcher will examine the extent to which the practice agree with theory portfolio management as far as marking investment decision is theory concerned, establishing the objective of the bank investment policy, formulation of flexible policies and strategies delegation of authority and control etc.

         Also to consider is the impact of assets portfolio on the operational results of the bank which includes the effectiveness of bank management, by measuring actual performances of the department against the set goals and measuring equally the return on investment against the system of portfolio in the bank.


         Considered against the induction that the first bank obligation in terms o f maximized profits and maintainers of adequate liquidity level it’s highly significant that this is carried out to ascertain how the first bank effectively apply the principles of portfolio  management in actual practices  in order to maximize optimize profit within its liquidity constants and safety.

         In other words, the significance of the study it to examine the assets portfolio management and its impact on profitability level in first bank in order to determine how first bank can enhances their portfolio management and the level of profit earning capacity. Knowing fully well of the unavailable conflict between necessary liquidity and desired profitability.


         The following are statement of research hypothesis which are subject to empirical validation.

(i)   Ho: central bank of Nigeria regulations on first bank affects banking sector participation in the capital market.

(ii)   Hi: central bank of Nigeria regulation on first bank does not effect banking sector participation in the capital market.

(iii)  Ho: the first bank portfolio management are not applying management theory to satisfaction.


         In this research study secondary data was used for the analysis there are data collected from first bank instrument such as journals manuals and newspapers publication accounts of the relevant literatures (s) like the central bank of Nigeria of Nigeria publication e.t.c

         Primary data is also used: and these  following methods were used for the data analysis.

1)   Personal interview was held with member staff of first bank plc (Benin and Ekpoma Branch.)

2)   Questionnaires were issued out to various experts in the field of financial management and portfolio management.

The data analysis techniques of questionnaire and presented in tabular format. Also analyzed by using simple percentages for ordinary questions and ch-square for the hypothesis validation.


         With the view of carrying out such a study in an academic environment, some constraints actually hinges or limit portfolio management  the extent to which the research work should be been carried out they are:-

FINANCE: much fiancé was expended on transportation to get data needed for the research study.

TIME: time was not available enough to carry out this research work. Knowing fully well of the stress it imposes, combining academic personal routine and distance altogether. Time / inadequate for the research. Also in addition lots of time and money were been wasted while searching for data moist available are inconsistent with the current guideline issued by monetary authorities as reform pervades the banking sector.


         In order to achieve an orderly presentation of this work, the study is divided into five chapters

Chapter one deals with introductory aspect of research work a general historical background of the first banks operation in Nigeria since 1894.

Chapter three deal with the research methodology adopted together with the research of the tested hypothesis.

Chapter two focuses on the exiting literature review. Which forms the background for practical assets portfolio management and it’s impact on profitability level of banks.

Chapter five deal with the summary conclusion and the recommendation of the project essay.


         In order adequately comprehend the content of this research work some key terms are defined as follows:

Primary market: A market in which an investor purchases an asset directly firms the issue of that asset. The purchase of newly issued share of cooperate stock.

Secondary market: A market in which an investor purchases an assets form an investor rather than assuring cooperate firm.

Reserves requirement: Percentage of bank and its balance stipulated by central bank and its particularly effective for sterilizing excess liquidity in the banking system through which CBN can contrast or expand the money supply.

Diversification: Is an abetment strategy to reduce risk by selecting securities in different companies or industries. Portfolio effect: the effect obtained when assets are combined into portfolio the interaction of the assets can provide risk reduction such the portfolio standard deviation may be less than the standard deviation of any single assets in it.

Capital assets pricing model: A model by which assets is valued based on their risk characteristic. It allows for viewing the possibility of any assets of superior investment opportunity by combining some position of risk free assets with the efficient fiotier. Efficient potolio: a portfolio combine assets so as to minimize standard deviation for a given level of return.

Efficient frontier: a set of portfolio of investments in which the investor received minimum risk for a given level of return.

Capital market line: Capital market line is a graphic representation of the range of risk and returns with various portfolios of assists.

Liquidity: the capacity of an investment to be returned for cash in short period of time with a mimumum capital loss.

Profit obtaining an advantage or benefits from a venture or Endeavour.

Commercial paper: this is the bank that the public in terms of acceptance of deposit provision of ban/overdraft management of business on behalf of the owner in some and offering of advices for present and potential.


This research work is conceived with the effect of employee participation in management decision making in Federal Poly Oko Anambra State. The study involved a survey in which a total of two hundred employee were used as subjects, fur (4) research question were as tested. Questionnaire was used to elicit information from employees in Federal Poly Oko. The data collected were analyzed using mean scores. The effect of employee participation in management decision making in Federal Poly Oko. The researcher found out that sometime decision made by Junior staff of the institution will not be used and most of the staff have known time to go for meetings finding of the respondents in table 3 shows more respondents with higher measures in table 3 shows more respondents with higher measure in the respond. We found that employees in Federal Poly Oko have a higher involvement in decision making. Based on the findings of the study it could be conclude that workers in the study institution are much more involved in the management decision making.

1.1 Background of Study
Over the years, the practice of organizational management demanded that employer/management could expect that workers will do the work that is set before them. While this was a perfectly typical method of getting results through others in the early days of assembly line and scientific management, it is no longer true of today’s business, the trend has changed in that management expects more from its workers than doing simply what is put before them. It has also changed in that work expects that more can be got from them by simply working according to the direction of the boss. However, with the rise of such theories as “participation management” and with increasing recognition those employees often have something valuable to contribute (beyond the accepted units of their normal job duties (Adewumi F. 2005).
Many companies are now actively seeking ways of getting employees to participate more in decision affecting them; the workers on the other hand expects to be asked how he feels about his job, and what his ideas are on how the work can be done more easily, better and faster. The reason for this change in emphasis is that management has discovered hat there are tangible business values in soliciting and using the ideas of people at all levels in the organization. As the main objective of every business organization is long-term survival and in addition to have a competitive advantage over and above its competitors rather than being like the biblical seeds that fell on the way side and perished. The secret of having his competitive advantage over others then lies on the productivity of the enterprise. The increase in productivity can only be achieved mainly through the organizational work force (Dunlop. 2007).
Increase in work life and productivity in an enterprise starts with the mind. It starts with the improvement of an individual self-esteem and self worth. It starts with helping an employee develop a higher degree of self regard. In tracina the background of this concept of employee participation in decision making, one can inter it to be a household name in many countries of the world. (Dunlop J. 2007). Japan’s success in the business world is attributed to employee participate. Decision making is shared at all levels of management. It is observed that decision making in Japanese firms are focused on defining questions or issues rather than on finding solutions. Thus all levels of the organization are involved in this process, in the United States, Industrial democracy is practiced, employee are encouraged to buy shares in companies thereby enabling them to have a say in the management of their organization. In other developed countries like Britain, Yugoslavia and Germany, participatory management is popular In Britain and Yugoslavia. It is known as joint consultation and self management respectively while in Germany, it is known as co-determination. In Nigeria, participatory management has come a long way. The Nigeria military government in 1977 decided t democratize industrial ownership in Nigeria by promulgating the Nigerian Indigenization decree part of which provides “that 10 percent total equity share of any enterprise on schedule, 2 and 3 should be reserved for workers (Fashoyin, T. 1992)
1.2 Statement of the Study
The issue of whether participation in decision making exists in the Nigeria industrial set up is very controversial. Some companies in Nigeria practice participate decision making and government has in the past encouraged participation in decision making though registration on the contrary, some management writers n Nigeria are of the opinion that reason is that the necessary pre-requisite conditions encourage participation in Nigeria are not available. The research is aimed at the effect of employee participation in management decision making in Federal Poly Oko.
However, research into Federal Poly Oko has exposed employee desire for involvement in decision making in their various organizations. Employees are at the same time important elements of the accomplishment of the school goals, in order to standard and remain as a Federal Institution. The reason basically rests on the fact that employees are operators and are in better position to know the problem they encounter in doing a particular task and how best to solve them. This study is therefore set to determine the extent of practice of participating in decision making in Federal Poly Oko.

1.3 Purpose of the Study
Specifically, the research intends to determine the effect of employee. Participation in management decision making in Federal Poly Oko.
1. To ascertain the level employees with low educational qualification have more influence in decision making in Federal Poly Oko.
2. To it employee: Opinions are made used off after being collected by the management of the institution.
3. To employees are allowed to make decision in Federal Poly Oko.
4. To examine the employees participation in decision making result to responsibility and independence.
1.4 Significance of the Study
The study is designed to provide information to the populace on how Federal Poly Oko have faired in their practice of participative decision making and its contributions to the staff and the school. It is expected that this study will be benefiticial to the management by giving enough insight into the benefits of employee participation in decision making, workers, students of business administration and the society at large are equally the hope that the study would provide a basic on which further research would be carried out.
1.5 Research Question
1. To what extent employees with low educational qualification have more influence in decision making in Federal Poly Oko.
2. To what extent employees opinion are made use off after being collected by the management of Federal Poly Oko.
3. To what extent employees are allowed to make decision in Federal Poly Oko
4. To what extent the employee’s participation in decision making result to responsibility and independence.
1.6 Hypothesis (Optional)
The following testable hypotheses were formulated to guide the attainment of the research objectives.
Ho: An employee in higher job position tends to exercise more involvement in management decision making than another in lower job position.
H1: An employee who possesses higher educational qualification would tend to have more influence in management decision making that other who possess lower educational qualification.
1.7 Scope/Delimitation of the Study
This study is about the effect if employee participation in management decision making. The extent of employees participation and the problem encountered in its practice will be examined. Government press and a few. Other selected private institution and University in Anambra State will be limited because of time and finance being faced by the researcher and also unwillingness of some management in using their organization or institution for research. Despite these limitation, the study will explore every necessary available information to be attain its set objective.
1.8 Definition of Terms


1.1 Background of the Study
The concept of delegation of authority as it happens in industries services and business organization has altered money psychologists and educationist. These great people have carried out series of research on it with each, there coming up with a theory as it affect decision making organizations.
Yet no one theory or negotiation can alone satisfactory explains the concept. This is because of the complex in human behavior.
Delegation means entrusting to or duplicating or representing.
Management is described as a socially process entailing responsibility of an effective planning and regulations of operation of achieving the objective of a business organization in the most efficient way.
However, all organization is it small or large has to take decision. The purpose of decision making as earlier said, it is to direct human behavior towards a future goals. Decision-making is the selection from among alternative that have skills knowledge, experience on jobs duties. There should be need for a decision ¬making in any plan; there must be decision on to take. Therefore, it can be said that planning leads to decision guided by organization policy and objectives. Therefore, planning in the other hands plays the major roles in decision making, it has to do deciding in advance what to do, how to do it, when to do it, and how result can be evaluated.
Historical Background
First bank of Nigeria plc was established in 1894 as bank of British West Africa. It metamorphosed into its current name in 1979, and true to its name, it is now the biggest bank in Nigeria with assets over 700 billion Nigeria. In repositioning the bank for both domestic and global competition it had recourse to raising additional capital. The bank achievement was again reinforced when it becomes the first bank gusted company in Nigeria to achieve the feat of hitting the union naira work in market capitalization.
The bank offers retail banking services, corporate taking services, E- banking services and card services. The banks customer service is good. Inter¬brain connectivity is good except for certain occasions, when there are issues of network failure that can be annoying. On these occasions the ATM machines will not dispense cash and you cannot cash a cheque that is from another bank even if it’s another first bank branch.
Though many Nigeria network services provides have this terrible habit of charging out-throat fees and providing network connectivity. The bank has good success wish assuring and managing loans, recent promote has seen the bank offer winners mouth-watering cash price.

1.2 Statement of the Problem
For some years now, records have shown that many organizations are on decline or have totally shutdown because of the management incapability of taking right decision with the right people and at the right time. There are many problems associated with delegation of authority with regards to make good decision for the some employer do not know, the important of employees participation and satisfaction and able to achieve better result in short ensure that delegates his authorities to a capable hand, and at the same time, authority should be delegated with equal responsibility. The research work will enable the management to know the answer of the following.
i. What are the effects of delegation will about equal responsibility?
ii. What are the impacts of delegation on management decision making?
1.3 Objective of the Study
The major task or objective of this study is to identify and provide solution to delegate problem as they affect organization decision-making. A lot of research has been made in the area of management delegation. Attempt will be made to identify some of the findings of this research under Nigeria environment assigning to them any task to perform. They manager must not only delegate routine matter, but also task repairing the use of initiatives.
Objectives of this study therefore include the following:
1. To show that effective and efficient decision-making process could be enhance through effective delegation.
2. To examine the under living principles of delegation as it relates to decision¬ making.
3. To find solution to some of the already existing problems of delegation.
4. To show that delegation of authority could be effectively implemented.
5. To investigate on the cause of poor delegation on management decision¬ making.
6. To determine whether to delegation strategy employed first bank plc Onitsha, has help improve decision-making in the bank.
7. To identify strategies that can be implemented in order to improve management decision-making through delegation.

1.4 Significance of the study
It can scan from the problem started that business organization does not employ delegation in management in decision-making. It is noted that the study will help the bank and other firm to adopt strategies that will improve the impact of delegation of their decision-making process. The study also will the organization to know that the success of a business depend also on good image of the company and will also help the researchers knowledge about the various strategies available and how they can be applied to improve the company perform of the business.
Above all, the study will also help people to know the value of delegation and it can used to improve business information.
1.5 Research Questions:
1. Does impact of delegation on management decision-making investigate on the course of poor delegation?
2. Does underling principles of delegation relates to decision-making?
3. Does any leadership style adopted through organization in decision-making?
4. Does effective and efficient decision-making process could be enhance through effective delegation?
5. Is there any significant relation between delegation and commitment to work?
6. Can production process be faster through delegation of authority?
1.6 Scope/Delimitation of the study.
These scope of the study as restricted to the importance feature on the impact of delegation on management decision-making in First Bank Plc Onitsha. The researcher intends to cover the area of management decision-making in First Bank Plc Onitsha.

1.7 Definition of terms.


The aim of this work is to examine the importance of organizational structure in effective management of general cotton mill Onitsha on issue affecting the management and employees. To uncover the trend of events in the scene, a review of related literature was carried out. As a method of gathering data a structured and closed-ended questionnaire was designed, validated, reproduced and administered on a sample of 50 out of which 40 were retrieved while 12 were lost due to logistic problems. Data based on these were presented and analyzed. It was discovered among other things that, communication, workflows, authority and responsibility are all valid relationships that exist between different dimensions of organizational structure that can affect managerial efficiency. It was concluded that the manner in which an organization is structured is evident in the effectiveness of the management of such organization and also there only a low degree of difference existing between the structural designs of the department within the organization. The following recommendation are made by the researcher based on the organizations generally and general cotton Mill Onitsha must review there organizational structure with the intention of adopting or creating one that will be completely free from communication hitches and hiccups so that cohesiveness will rule in such organizations and better understanding of tasks, expectations etc. can be upheld at all time.

Every organization have objectives which has always been to achieve a goal. These objectives are identified through planning. This is simply because through planning, management of organization establish means of achieving objectives invariably, establishing a means for achieving these objectives becomes the prior occupation for management. This brings theme face to face with a major management function which is organization. The organization process is mainly aimed to achieve co-ordination through the design of structure of task, authority and relationships. Meanwhile, the level of objective attainment generally determines the extent of management effectiveness. On the other hand, structure being a direct result of management function of organizing is the framework through which an organization accomplished the task and responsibilities needed to attain its objectives. This may be why Donnelly et al (2004) stated that “structure is a means for achieving the goal established in planning. Coming to task that structure in the present day organization presents, the need for people to organize their efforts in order to attain certain objectives becomes more and more imperative. Hence organization structure defined the format for allocation of work roles to identify the members of the organization. It establishes the line of authority for integration and co-ordination activities. According to Gabraith and Nathanson, (2009) organizational structure means “the organization of work into roles such as production, financial, marketing and so on. The combining of roles into departments or divisions all in an effort to achieve set objectives. We can therefore describe the functional structure in terms of dividing tasks, jobs and delegating authorities thus, this provides some aspects of major challenges faced by management, management in expected to make the appropriate analysis that will help in designing an effective organizational structure.
A sound organizational structure will aid directing, co-ordinating and control, in the overall outset of an organization and its members. Therefore it becomes a network of interaction and relationships between positions, therefore functions and occupants and also a means through which management attempt to achieve organizational goals. The foregoing emphasizes the fact that structure is the result from organizational design. It could therefore be regarded as a guide without which a managerial team will not function effectively. Thus, it is far from surprise that it has been the subject of intensive study which has been adopted in trying to design effective organization structure. Firstly it was the classical theorists who passed the ideal of “one best way for structuring effective organization. Unfortunately the answer provided by the decades of systematic research has proved this notion wrong. Organizations face a wide range of internal and external conditions that there cannot be a single structure or design that will prove successful in all. Thompson (2007), has confirmed that idea by stating that, the best organizational structure is one that can adjust to tackle any situation at hand. At this basic fact has become increasingly apparent, a new prospective on organizational design known as the contingency approach has taken form. Supports of this approach reason that there is, in fact not best single structure. People and environment in the above factor function with the key dimensions of organization structure, which include departmentation, chain of commands, span of control, centralization, conversion staff complexity. The above facts, present a lot of challenges for modern managers. Prescribing a successful organizational structure that agree adjusts to agree with both internal and external environment. Unless, researches are therefore carried out inorder to involve radiated recommendations, they will not be effective in practice.
Brief History of General Cotton Mill Onitsha
The company was incorporated in 1964 as a private company under the companies ordinance (AP 37 to manufacture printed cloths. It came into full operations in 1973 after new equipment were acquired for the spinning/weaving mills to complement the printing process thus becoming a full integrated textile factory. General cotton mill Limited facilitates include 39640 spindles, 1,238 looms and finishing plant for bleaching, drying and printing which include 2 rotary printing machines. The company since its inception maintains two service agreement. It is technically supported by Texas cotton mill limited of Hong Kong and by UAC of Nigeria Plc, for it commercial services. They supply prudent management resources sustain over the years. The authorized share capital of the company is N400,000 share of 50 kobo each i.e. N200,000 only N189,583,330 share are issued and fully paid.

Overtime, organizational structure has been proven to be of basic importance to every organizations existence. Authorities and responsibilities will be clearly defined, every task assigned to a person and the person held responsible for how well or badly he or she performs the job. Duties and tasks are shared into departments and units with a manager overseeing the affairs of such departments and units. These departments must all work harmoniously towards the achievement of set objectives (Udoye, 2011). The problems that are encountered therefore, are problems of duplication of tasks and repetition of process. The importance of organizational structure in management effectiveness cannot be utilized if the best organizational structure is not adopted. Most cases haphazard and unobjective structures are due to management neglect of the importance of organizational structure. The study therefore will seek to highlight deeply, the importance of organizational structure in order to draw the attention of management to it. The study will also identify different patterns of organizational structure and their characteristics so that management can be well informed towards choosing the bets structure that will suit the operations of general cotton mill, Onitsha.

This study is to examine the relationship among some element of organizational structure and managerial effectiveness in Nigeria business organization. Therefore it will seek to:
1. Identify factors in the organizational structure that could affect managerial effectiveness.
2. To determine whether there is problem in the structural design of any department within the organization.
3. To find out if the level of education of subordinate influence the way a manager structures his department.
4. To identify the links between the above variable and the managers degree of effectiveness in meeting up to the objectives he is expected to achieve.
5. Determine whether those variables have the same or different effects on managerial effectiveness in the different departments.

Proper organizational structure in the organization will reduce role conflicts and avoid stress to manager, it will also specify span of control. The study will help many corporate organizations that will go through the work in adopting a sound or proper organizational structure, which will enable them achieve their set objectives. It will also specify the roles the work flows and flow of authority or responsibility from top to the bottom of the organization, which reduces stress and job dissatisfaction among some employee. It will encourage, easy job analysis in the organization. This research will also help top management during job evaluation and performance appraisal.

In order to further guide this research work, the following questions have been advanced.
1. What relationship exists between different dimensions of organizational structure that can affect managerial efficiency?
2. What is the degree of difference existing between the structural designs of the department within the organization?
3. Does the level of education of the subordinates affects or influence the way a manager structure his department?
4. What are the lines between the above variables and managerial degree of effectiveness in meeting up to the objectives he is to achieve?
5. Does the same variable have some or different effects on managerial effectiveness of other organizations?

Due to the nature of this research, it will not be feasible to study the influence of all the structural variable that could affect managerial effectiveness hence, only some of them will be covered in this study. The scope of this study will be limited to General Cotton Mill Onitsha, due to time and financial constraints.
Organizational Structure: Refers to the setting through which an organization accomplished the task and responsibility needed to attain its objectives and goal.
Organization design: Concerned with identifying basic principles that determine the organizational structure of any business organization in relations to the demand of technology and environmental forces.
Technology: This is the conversion process used by an organization to transform inputs into outputs.
Environment: Refers to those elements, institution, organization etc whose activities affects the performance of an organization and are not subject to the organizations control. Hence, the organization must adopt or adjust to their demand or only try to have some level of influence on them.
Centralization: Refers to the degree authority and responsibility are concentrated to key persons in the organization.
Co-ordination: The process of creating an effective links between the components parts of organizational structure which results from departmentalization.
Authority: Is the right to act, it is power vested in a particular person or position and accepted as appropriate and recognized as legitimate not only by the power wielder but also by those over whom he holds such power.





Motivation can be seen as the inner drive, which prompts people to act in a way either towards achieving their personal goals or organizational goals. To a large extent, motivation is “leadership” as it involves getting the whole staff to learn to work willingly and well in the interest of the business. A leader can influence his subordinate only when they are convinced.

Conviction can only come when the entire subordinate accepts those factors that propel actions of individuals, which are referred to as motivation. They may be highly paid, prestigious titles promotion, praises, bonus, etc. The word is an abstract noun applying to the entire class of desired need wishes and similar forces.

Motivation has to do with action which results, to satisfaction closely associated with motivation is the word “miracle” it is injecting of moral and loyalty into the working team so that they will carry their duties properly and effectively with maximum economy.

Motivation is one of the most researched and discussed subject in business administration and management.

Researchers have brought to explain how and why people are motivated to behave in a manner consistent with a supportive of organizational goals.

Behavioural scientists have put forward many theories to explain in the concept of motivation. Dr. John Iboko in his book titled theory and practice of management by objective (M.B.O) Nigeria experience defined motivation as the face that focus human being action towards a chosen and for motivation to take place, there must be a felt need and goals, the accomplishment of which is expected to satisfy it.

Meanwhile people level of development, values, needs and wants varies, that is why what motivates one person may not necessarily motivate the other.

Fredrick Taylor said that people have been engaging in employment for reasons other than money. He added that a worker can be motivated if reward and penalties are attached to performance.

Modern economics depend to a large extend on motivation more than previous economics. Motivation itself has now become inseparable from modern production for good efficiency and effectiveness of organizational productive and rendering of good services to the customers by the staff can be possible with the aid of adequate motivation.

According to Okpala, he said that motivation comes from intrinsic and extrinsic factors which influence the workers to behave the way they do. The intrinsic source of motivation is the type of motivation that derive a sense of accomplishment and achievement from helping gain a competitive advantage job that are interesting and challenging load to intrinsic motivation, for this type of work motivation result from performing the job itself.

The extrinsic motivation result as a worker acquires material or social reward to avoid punishment the physical condition under such punishment will work well and light, temperature and noise reduction, different salary scale, group standard leadership etc all of this effect the employees performance.


All efforts made by the management of Suleja local government to see to it that their employees carryout their daily assignment efficiently and effectively for the organization to attain to its goals and objectives have proved abortive. This has posed a serious challenge to the organization.

The main cause of this problem is that most of the employees are not well motivated. Below is the problems, this study intends to resolve;

  1. How to create an environment, which will enable the organization to recruit, train and motivate their employees.
  2. The ways of enhancing the job of an employee’s so that they can work more efficiently and effectively.
  3. The things to do in other to reach to the satisfaction and self actualization of the employees.   
  4. The strategies that should be taken into consideration towards achieving the goals and objectives of the organization with the aid of motivating employees.


The impact of motivation on employee’s performance cannot be over emphasized. The main purpose of this study is;

  1. To determine their effect of motivation of the performance of employees on the Suleja local government administration.
  2. Find out whether employees are motivated and the motivational tools used.
  3. To find out effectiveness of the motivational tools used and to proffer solution to the problems.
  4. To find out the factors that is militating against the effective and efficient performance of workers of Suleja local government administration.


The effects of motivation on employee performance cannot be over emphasized. The study reveals the positive results that come out when an employee is being motivated for a particular job he or she is carrying out in the organization. This research is of great significant in the following fields, in the field of academic, it will add to all existing literature on administration. The research is very important to students in the business administration and management who have the feature aspiration to become a manager in an organization. Who will unavoidably need the knowledge on how to motivate an employee, so that the organization in which he or she is managing will be able to attain to its goals and objectives. To the organization it will enable them to enumerate the mutual techniques they will apply in other to motivate their employees so that they will be able to carry out their daily performance more effectively and efficiently.  


  1. What is the various ways of motivating an employee in the organization?
  2. Does job enrichment motivate employees?
  3. Can motivation technique affect the productivity or the service of employees’ performance effectively and efficiently?
  4. Does workers satisfaction in their performance has a significant influence on the rate of absenteeism and labour turnover?
  5. Does motivation of workers has a significant increase in organizational performance and productivity?


The study covers the employees in Suleja local government area. The study examines how their employees carryout their daily performance, the study also involves how good their employees render their services to their customers when they are being motivated to show how fast the employees deliver product to customers urgent demand.






Do we ever settle to think why some organizations recruit better applicants than others, why some business enterprises are more efficient or perhaps, more effectively organized than others? Why some establishments are more productive than others, why some firms make profit while others are folding up? It is possible to answer the above questions with this simple phrase; lack of requisite skills and failure on the part of management to identify and adequately take care of their inadequacies”.

After recruitment and selection of employees, they need to be maintained and motivated towards achieving the organizational goals. And this can be achieved through training and development of the organizations workforce.

Sound and constructive human capital development facilitates optimization of available potentials and provides opportunities/leverage for better repositioning of an organization to achieve global competitiveness. Hence, human resource development is a pre-requisite for organizational survival, sustainability and success. This fact is reinforced by Chinese wise saying, which says thus;

“If you wish to plan for a year, sow seed

If you wish to plan for 10 years, plant trees.

If you wish to plan for a lifetime, develop men”.

The above, summarizes and underscore the indispensability of human resource development in organizations.

Brief History of the Study

The Union Bank of Nigeria has a long and proud history dating back to 1917, when it first opened its doors for business as the colonial bank. In 1925 it was brought by Barclays, becoming Barclays Bank Dominion, colonial and overseas which it remained until the early 1970s.

In 1971, Barclays incorporated the bank locally in Nigeria as Barclays Bank of Nigeria Plc and sold a significant shareholding to the federal government and the Nigerian public. In 1979 the banks name was changed to the Union Bank of Nigeria Plc, to reflect the change in its ownership structure.

In the early 1990s, the Nigerian government started a policy of privatization of state owned asset, which resulted in 1993 in both the government and Barclays selling their remaining stakes in the bank to the public at large, thus creating a truly publically owned bank.

Since the early 1990s, the bank has enjoyed a period of unparalleled growth, acquiring universal Trust Bank Plc. Broad bank limited and Union Merchant Bank as well as increasing shareholder funds through a rights issue in 2005. The Union Bank of Nigeria now has a network of over 400 branches across Nigeria, a subsidiary in London and offices in Ghana, Benin and South Africa. In 2009, it posted gross earnings of US and 980 million and total assets of US and 8.8 billion. The bank’s management team is headed by Emeka Emuwa as the group managing Director/Chief Executive. Other executive management team members include:

Adekunle M. Adeosun – commercial/retail banking (south) and consumer banking.

Philip Ikeazor – corporate, international/investment banking and treasury.

Ibrahim A. Kwargana – commercial/retail banking (North) and public sector.

Mrs. Oyinkan Adewale – chief financial official.


The efficient training and development of human resources in an establishment, which Union Bank Plc is not an exception, requires immediate attention because the negligence given to the establishment which will in turn led to the downfall or bankruptcy of the establishment.

This study seeks to investigate if training and development of human resources is practiced in Union Bank of Nigeria Plc, the approaches of training and development of human resources the negative attitudes of management and supervisors on training and development of their sub-ordinates, as well as the impact of modified behavior, attitude and moral on employees in Union Bank of Nigeria Plc.


The main purpose of this study/research work is to critically define, analyze and clearly identify training and development of human resource in banking institution. And also,

  1. To ascertain the influence of human resource of Union Bank of Nigeria, Oko branch.
  2. To determine the types of training available method and place of training in Union Bank of Nigeria, Oko branch.
  3. Find out whether staff of the bank sees training and development programme as motivating and means of job enrichment and satisfaction.
  4. Evaluate work performance before and after training programme in Union Bank, Oko branch.
  5. Determine whether there is any relationship between labour turnover and availability of training and development opportunities in banks.


It is important to print out that on completion of this research work, it would be of immense significance to the following group of people:

  1. Management and supervisors of Union Bank Plc Oko branch. If the management and supervisors of the bank apply the findings and recommendation of this research work, training and development would be achievable in the bank.
  2. It would also help the management to know how much training and development influences worker’s productivity and performance.
  3. Researchers: the output of this work will serve as a base for further research in future on related or similar topic.


In order to achieve the purpose of this study, some questions need to be considered. Below are some research questions which have been formulated:

  1. Do training and development of human resources influence the operation of the bank?
  2. What type or method of training do your bank adopt?
  3. Are you motivated after the training and development programme?
  4. Are you convinced that your performance improve after the training and development?
  5. Is there any relationship between labour turnover and availability of training and development opportunities in your bank?


In this project work, “training and development of human resource in banking operation” is restricted to Union Bank of Nigeria Plc, Oko branch, Anambra state.




Globalization is one of the major phenomena of our times and its scope is very extensive and versatile affecting factors such as economics, political, cultural, lifestyle and most especially sciences and technological advancements

The process of globalization is said to include the information technology evolution characterized by advancement in electronics, computers and telecommunications made possible by the scientific and technological breakthroughs in miniaturization of integrated circuits, transistors and semi – conductors (Mike 1999:343).

Emerging technologies are playing a vital role in allowing globalization of economic and social activities to thrive. It is correct to say that the era of globalization has brought about the rapid spread and application of computers, the internet, satellite and the mobile phones innovations in the world, particularly in Nigeria where communication has been difficult and communication facilities were inadequate in our major cities, semi-urban and rural areas. Presently, with the introduction of mobile phones, many rural areas now have access to communication facilities and they communicate easily with the rest of the world.

It is important to note that globalization does not eliminate the scope and eliminate the scope and activities or nation or a state, but fundamentally redefines its role and affects its operations. The real issue today is not the debate about whether globalization is real or not, or whether it is desirable or not, but to analyse how the emerging technologies can be better channeled to promote more growth, more trade, greater modernization and better living standards of Nigerians with the aims of helping the country to re-emerge from its present social and economic difficulties. The challenges facing our nation are complex and they required good visioning, sound strategic plans that will correctly identify viable development paths and to resolve to translate such strategic plans into meaningful and fruitful and efficacious action (Abhulimen, 2000).

Globalization and growth of information technology and other emerging technologies do not imply the local production of technology hardware. Many developing countries like India and Malaysia have embraced the emerging technologies, particularly information and communication technology (ICT), and are experiencing unprecedented economic growth as a result of this. Many developing countries however have yet to integrate successfully into global economy.

Some 2 billion people around the world particularly in Sub – Saharan Africa, the Middle East, and the former Soviet Union live in countries that are slow in getting onto the train and are thus being left behind. These countries have been unable to increase their integration into the global economy: their ratio of trade to GDP is either maintaining a flat trend or in some cases actually declining. On average, these economies have contracted; poverty has increased and education levels have arisen less rapidly than in the more globalized countries. (Abhulimen, 2002).

Considering the evolution in information and communication technology (ICT) in Malaysia, India, South Africa and other developing countries with remarkable achievement and comparing their potentials with that of Nigeria, one can say that Nigeria has a better opportunity of evolutionalizing its information and communication technology (ICT) sector than those countries mentioned above. This is obvious, with its teeming population of unemployed graduates, a vibrant labour force, rich crop of high netwoth of individuals imbued with different entrepreneurial spirit, all that is needed is very much available, but the stepping stone of information and communication technology (ICT) evolution is the schools.


Emerging technologies as a result of globalization have effects on economic and social activities of nations, particularly in the area of information and communication technology (ICT). Therefore, the purpose of this research is to find out how some developing countries embraced information and communication technology? Does location of country affect its development in information and communication technology? What are the basic facilities needed to have a viable information and communication technology sector? What are the enabling policies and infrastructures for effective and efficient information and communication technology in Nigeria? These and many other questions are raised from the problem areas that require solutions to enhance the effective assessment of the impact of globalization on information and communication technology in Nigeria. It is hoped that this study will provide the required solutions for effective assessment.


For every action there are objectives. Therefore, the objective of the study is to examine the effect of globalization on information and communication technology (ICT) in Nigeria. And to assess and help Nigeria to be prepared to reap the ample economic and social benefits offered by the emerging information and communication technology that links the whole world together as a global village.

To achieve these objectives, the following were examined:

  1. The awareness of the public on Information and Communication Technology in the country.
  1. The availability of the required facilities for the full application of Information and Communication Technology in Nigeria.
  1. The availability and adequacy of government of policies and strategies for the effective application and utilization of Information and Communication Technology.
  2. The pricing strategies used for the services provided through the Information and Communication Technology in Nigeria.
  1. To suggest how to enhance the effective application of the Information & Communication Technology to achieve adequate communication linkages in all aspects of human endeavour towards improving our standard of living in Nigeria.


This study covers only information and communication technology (ICT) as an emerging technology influenced by globalization. The spanned over a period of six years from 1999 – 2004. This is because, it was in the year 2001, that information technology (IT) policy was formulated tagged “IT 2001”. This period provides an ideal period for assessing the impact of the government policies in encouraging the acceptance and utilization of Information and Communication Technology in Nigeria


For the conduct of this research, secondary sources of data was employed. The population of the study is the Telecommunications which include; telephone (mobile and fixed), internet services and Vsat services. The method used in analyzing data was descriptive statistics; as percentage and barchates.


This research work has its limitations, which posed to making; thorough and exhaustive conclusions. These are:

  1. Time: The time available for the work was not enough for the researcher to travel to many places to gather data.

  1. Finance: It is a known fact that; in any undertaking, availability of funds is very important adequate funds constrained the researcher from gathering enough data for the research.
  1. There is also lack of up-dated statistics, this had constrained the researcher to make comprehensive research work.


This study has a lot of significance to individuals (Public), government, and investors (business).

  1. The study will help in informing the general public the importance and contents of information and communication technology.
  1. Provide the public with employment etc.
  1. It helps to bring out Information and Communication Technology problems for necessary actions by governments
  1. Provide means through which government can improve its foreign exchange generation.


  1. Help businesses to spot problems and make necessary corrections for more profits.
  1. To explore areas of investments.


WEB SERVICES: web services are enterprise applications that exchange data, share tasks and automate process over the internet.

INTERNET SERVICES: Pieces of software written in different languages, or running on different operating systems, to talk to one another cheaply and easily.