study is conducted on an Assessment of Contribution of Commercial Banks in the
Economic Development of Nigeria. The concept is also on eye opener to the
society and business as well. The research was carried out by means of
questionnaires and oral interview with the official/staff of the bank selected
on which the following questions that need to be tested are based on the
contribution of commercial bank to the economic development.
this research some relevant hypotheses have been formulated and their validity
has been proven by the findings and analysis of relevant data obtained. It is
hope that this study will give the readers, the societies and business world as
a whole the need for effective understanding of the concept in order to achieve
a sound atmosphere between the society and organization.
TABLE OF CONTENTS
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Hypothesis/Research Questions
1.4 Objective of the Study
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitation of the Study
1.8 Historical Background of the Case Study
Framework and Review of Related Literature
2.2 Introduction to Banking Industry in Nigeria
2.3 Meaning of Commercial Bank
2.4 Functions of Commercial Banks
2.5 Objectives of Commercial Banks
2.6 Problems of Commercial Banks
2.7 Suggested Solution
2.8 Recent Development in Commercial Banks in
2.9 Definition of Term
3.2 Research Design
3.3 Population of the Study
3.4 Sample and Sampling Techniques
3.4.1 Method of Data Collection
3.5 Method of Data Analysis
Data Presentation and Analysis
Summary, Recommendation and Conclusion
5.4 Further Study
OF THE STUDY
as a nation is characterized by a developing economy due to the fact that the
various sectors responsible for economic development are not optimally utilized
as a result of which we have not being able to tap fully the natural resources
that Nigeria is blessed with as it could increase our national earnings leading
to an increase in per capita income instead. We have a reverse situation were
there is low per capital income. Low standard of living increase in the level
of insecurity etc.
first task every government put in its table of priority is economic
development. Nigeria among other nations of the world is not excluded. In order
to keep the development of the country in progress Bank plays a pivotal role
especially the commercial banks. It is of importance to not that of this point
the bedrock of every economy is the banking sector, of which the commercial
bank is a leading pace. As a matter of fact, no country in the world in this
present dispensation can boast of having developed or tested development
without the adequate and timely contribution of commercial banks.
one of the major setbacks to economic development in countries today is the
inadequate supply of capital. It is in this regard, the commercial banks serve
as ling between those who need capital and those willing to save and make the
money available to investors. They are expected to provide to an extent large
credit facilities and divert voluntary savings into productive channels. In
addition, they are to offer technical advice to industrialist by way of
feasibility studies which ensure that investment are made in the right
there are numerous agencies/sectors involved in economic development, but of
all the sector that stimulate growth and development into the economy of
Nigeria is the commercial banks perhaps the commercial banks the most important
role such as help to pool savings and excess liquidity from millionaires or
rather millions of individuals and firms within the country making them available
to those that require them for various purposes.
development requires sustained improvement in social welfare that are pervasive
through the society and modern economic growth that is confined to a small
enclose within a developing society particularly if a non-indigenous people
dominate that enclose, it is not economic development. Economic development
requires that modern economic growth affect a broader segment of the total
populace in a way that will enhance their welfare. It entails the provision of
basic needs, acceleration of economic growth, reduction of inequality and
unemployment, eradication of absolute poverty as well as changes in attitudes.
to the above provisions that stimulated the establishment of commercial banks
in Nigeria is to meet the aspirations of the citizenry. This research work is
aimed at identifying the contributions that commercial banks have made to the
development of the Nigerian economy.
over the world strive to articulate well meaning polices that would extinct
them from obscurity. Nigeria as a nation is also on the queue alongside other
countries that quest for economic prestige. That is why the country had
established various commercial banks to salvage the economy. However, in spite
the establishment of the commercial banks, Nigerians still decry of inadequate
capital for investment, high level of unemployment. The reduction in the Gross
Domestic Product (GDP) which were the care issues that the concept for the
establishment commercial banks was conceived to address.
is the statement which shows the relationship between two variables.
for the purpose of this study, the hypothesis are as follows:
The establishment of commercial banks in
Nigeria has contributed to economic upliftment of the country.
The establishment of commercial banks in
Nigeria has not contributed to economic upliftment of the country.
Increase in bank lending will reduce
unemployment in the country.
Increase in banks lending will not
reduce unemployment in the country.
Increase in banks lending will increase
the country’s Gross Domestic Product (GDP)
Increase in banks lending will not
increase the country’s Gross Domestic Product (GDP)
OF THE STUDY
study is primarily aimed at examining critically an assessment of contribution
of commercial bank to the economic development of Nigeria. Specifically, the
study aim to;
Evaluate the contribution of
commercial bank to the economic growth of Nigeria.
Investigate the role of commercial
bank in the development of the economy of Nigeria.
To make suggestions on how the
activates of commercial bank could bring about investment
To appraise the extent to which commercial
bank has been affected as a result of economic meld-down.
The study also aim at taking a
critical look at the cause of the economic meltdown and how to manage it.
OF THE STUDY
research project aim at critically looking into an assessment of contribution
of commercial banks in the economic development of Nigeria with special
reference to First Bank of Nigeria Plc. Nevertheless this study is significance
in that it tries to analyze the assessment of commercial banking in relation to
economic development. In addition this study will contribute to the existing
literature and it will serve as a reference to any researcher or organization
who may be conducting research in similar or related field in the future.
the institution, it shall be something to be referred to in years to come
therefore. It shall be placed in the institution meaning other students of the
institution involved in research work can benefit from the work.
the bank, particularly First Bank of Nigeria Plc, it will serve as an appraisal
of their performance therefore they can make amendments where they are missing
and serving as a means of encouragement where they are doing well.
the external users include prospective shareholders the government and the
general public can use these project as a way of encouragement. To the
shareholders, it can encourage them to invest especially if the bank is
performing well. This is because they are sure that they will not run into loss
at the end of the day or their investment in stock. To the government, it shall
serve as a mirror to see the effect of directives in respect of bank lending
and how it affects economic development of the country. And in addition to the
government decision and policy it can use the bank as a means of channeling
it’s capital project through the bank.
the general public especially customers of the bank due to the sound track
record, recorded by the bank in term of service delivery and the safe keeping
of customer money and valuables, these study is sure of increasing the level of
confidence to the bank customers.
OF THE STUDY
main thrust of this study is essentially in assessing the contributions of
commercial bank to the economic development of Nigeria. The study based its
reference to First bank of Nigeria Plc, shall concentrate mainly on the lending
of commercial bank and how it affects the economic development of Nigeria.
OF THE STUDY
time and resources constraint the researcher encountered some problems in the
cause of gathering materials and analyzing data. The bank uses unwilling to
release all the necessary data for the research work, probably for the fear of
competitors. This passed a little problem for the researcher. Information that
is vital to this study is considered secret and as such not released.
uncooperative attitude of some respondents which led to the non-return of some
questionnaires was another setback to the researcher. The time given to the
researcher to complete the research work was limited couple with daily lecture’s,
the time allowed for this project is too short considering the academic
activities all tied up with a short period of time.
BACKGROUND OF CASE STUDY
Bank of Nigeria Plc. For over a century has distinguished itself as a leading
financial institution and a major contributor to the economic development and
contribute to the advancement of Nigeria economy.
bank was incorporated as a limited liability company on march31, 1894 with head
office in liver pool by Sir Alfred Jones, a shipping merchant. It started
business in the office of Elder Demporate. A company in Lagos under the
corporate name of the bank for British West Africa. (B.B.W.A) with a paid
capital of 12,000 pounds stealing established earlier in 1892. In its early
years of operation the bank recorded an impressive growth and worked closely
with the colonial masters in their governance performing the traditional
functions of a central bank such as issue of specie in the West Africa
coverage, a branch was opened in Accra, Ghana in 1896 and another in fret won,
Sieraleone in 1898. This marked the genesis of the banks international banks in
Nigeria. Was in the old Calabar in 1900 and two years late services were
extended to Northern Nigeria.
bank had at various times embarked on restructuring initiatives. In 1957, it
changes its name from Bank of British West Africa to Bank of West Africa. In
1969, the bank was incorporated locally as the standard bank of Nigeria Limited
in line with the Company Decree of 1968. Changes in the name of the Bank
introduced a decentralized structure with five regional administrations.
further enhance the Bank’s operational efficiency. This was reconfigured into
sixteen area offices in 2003. In view of the foregoing, it was therefore a
natural progression when in 2001, the Bank began in earnest gained momentum in
2003 and was launched on Tuesday, April 27, 2004 with the introduction of a new
corporate identity. First Bank got listed on the Nigerian Stock Exchange
(N.S.E) in March 1971 and has won several award like the 2008. Best bank,
Nigerian Global Finance magazine, 2008. Best foreign exchange provider Nigeria,
Global finance Magazine, 2008. Financial institution Award petroleum Technology
Association of Nigeria, 2008 Best Bank in Manufacturing financing. Nigerian
Bankers Award, 2008. Super brands Nigerian Award, 2008. Diamond Award 2008.
Youth and Gender Network 2008. While in 2007 External Award includes quoted
company of the year. Nigeria Stock Exchange 2007. Winner, 31st
Annual President’s merit Award. Nigeria Stock Exchange 2007. Annual Reports and
Accounts merit Award. Nigeria Stock Exchange 2007. In addition, the Nigerian
Stock Exchange president’s merit award was won by the bank of event time for
the best financial report in the banking sector.
In line with the banks mission statement,
remain true to our name by providing the best financial services possible “and
its brand essence “dependably dynamic” the bank will consistently transform
itself as it forges ahead in its second century of qualitative banking to the
the years, the bank had experienced phenomenal growth with its shareholders
funds growing to
N42 billion as at March
2004. The bank’s total asset was N207.18
billion at March 2004. Also, the profit before tax for the period increased by
33 percent the First Bank of Nigeria Plc. on the 6th march, 2006
recorded a remarkable total of 24.48 percent in gross earnings for nine month
ended December 2005. The gross earning grew from N40-60 billion in March 2005 to N50.54
billion. The profit after tax increased from N8.75
billion to N11.67 billion a 33-35
bank vigorously engage in the promotion of entrepreneurial, corporate and
national economic development during the review period providing
N13.3 million for the 2008 economist
conference organized by the economist magazine, N13.5 million for the 5th Nigerian China Business and
investment. N12 million for the 13th
Nigerian Economic Summit N10 million
for the First Edition of West African Mining Investment Conference 2007 and N8m for the 1st Annual Banking
Conference of the Charted Institute of Bankers of Nigeria(CIBN).
First Bank has seven subsidiaries that are into registership, trusteeship,
insurance, brokerage, merchant banking, SME Financing and venture Capital,
mortgage banking and pension fund management. Also the bank offers a wider
array of financial services to diverse customer base through its local and
offshare offices including 396 branch offices (strategically spread across the
country) and the head office in Lagos.
Financial Innovation and Access, 2008, Finscope Nigeria.
G. (1981) Nigerian financial system. London. Macmillan Publishers pp.48,164
Finance Certificate Programme. A Study Manual NDIC/CBN