THE ROLE OF FINANCIAL INSTITUTIONS IN THE DEVELOPMENT OF THE NIGERIA ECONOMY (A CASE STUDY OF SELECTED FINANCIAL INSTITUTIONS IN ENUGU)
The Study investigated the role of financial institutions in the development of the Nigeria economy. The objective is to find out whether the role of financial institutions is improving the growth and development of Nigeria economy, to know what the government doing to maintain or encourage the financial institutions in the development of the Nigeria Economy. We tested two hypothesis using chi-square methods. In hypothesis one, we tested the relationship between financial institutions and economic development. After calculated it was discovered that chi-square calculated is greater than chi-square tabulated. So the null hypothesis was rejected and all the alternative is accepted which said that, there is a relationship between financial institution and economic development. In hypothesis two, we tested the relationship between financial institutions and implementation of government policies. After calculated, it was discovered that chi-square calculated is greater than chi-square tabulated and the alternative is accepted which said that there is relationship between financial institution and implementation of government policies. The study among others recommend that financial institution should channel to the key productive sector of the economy such as agricultural sector and manufacturing sector which will lead to rapid growth and diversification of the economy.
1.0 BACKGROUND OF THE STUDY
Having chosen this topic to write on, my objectives is to find out the roles played by our financial institutions in our present economic situation whether they being followed in this time of economic recession their effects on the economy and the extents to which they have gone in helping to revamp the economy. Financial institutions.
The historical background or theses financial institution are made up of banking and non-banking institutions. The historical background of these financial institution is mode of operation which is an important aspect of this study. By their historical background. We can now know the aims purpose, objectives of these financial institution in our economy. In 1st July 1959, the first central bank of Nigeria (C.B.N) which was the apere bank that control other financial institution in the country was established. Commercial bank is the oldest of all banking institutional in Nigeria, it dates back to 1892 when. It was known as the bank of British West Africa (Now First bank of Nigeria) was established. This was followed in 1917 by the Barchys bank (Dominidu, colonia and overseas) (DCO) (Now union bank in 1933. the first successful Indigenous commercial bank was named National bank of Nigeria was established in 1948. African continental bank (ACB) was established by 1960 at independent, these were (12) twelve banks operating in the country with a total number of 160 offices and branches scattered in different locations of the country. Many specialized credit instutitons have in the past two and half decades developed. These includes the Nigeria Merchant banks, Nigeria industrial development bank (NIDB) Nigeria bank for commerce and industry (NACB) established 1973 and restructured in the 1978 to include the finance of co-operative bank established in the federal mortgage bank of Nigeria constitution in July, 1977, merchant banks then are relatively new business which were trance to 1960 when Selected financial institutions in Enugu was established. The Non-bank financial institution includes finance companies, the oldest finance Ltd was established in 1959.