PROBLEMS PROSPECTS AND GROWTH OF THE NIGERIAN’S CHEQUEING SYSTEM

ABSTRACT

This study is intended primarily to find out why the Nigeria society appears to have lost confidence in the use of cheques for the transaction. Whether this loss of confidence is a result of people’s misuse of this instrument or due to some lapses in the chequing system itself. Based on the primary motivation, various major problems associated with the use of cheques were identified. However, the use of dud cheques appears to be the base of other problems, which have precipitated into people’s mistrust for a cheque in Nigeria. The result according to the author’s findings is the cash payment basis or bankers draft is usually preferred by individuals, establishments and government agents for settlement of transactions. Furthermore, this study gives a number of solutions and recommendations for a more effective chequing system in Nigeria based on the identified problem. It is believed that the elimination of these problems will usher in a more functional chequing system in Nigeria. Happily, the major finding of this study is that there was an increase in the use of cheques during the currency exchange of 1984 and that more employers now pay their workers with cheques through the bank.

CHAPTER ONE

1.1  INTRODUCTION

The question is does an average Nigerian really understand what cheque is? Does he, for example, know that cheque is supposed to be mind tenders for monetary transactions. How does he use the instrument? Again do banks, government officials and their agents actually encourage the use of cheque and operate the system without necessary suspicion. Have there been any serious efforts to educate banks, customers and the workings of the system? We are going to discuss the causes of this problem. For instance, in America and Britain, most ever transaction is done in cheque or credit card without bordering anybody with the liquid cash. Therefore, Nigerians should be thinking as civilized people, though they can in no way compare their standard of organization, management and their affairs and responsibility with those of industrially advanced nations. The idea of paying forever thing on liquid should be left to the past. Payment by the chequing system should be over handled with the aim of making it function more effectively. However, the writer is optimistic that despite all odds and problems facing the Nigerian chequing system itself has quite a lot of prospects. That never works well in Nigeria may be attributed to the machination of the operator of the system. As soon as the Nigerian society learns to be honest on their dealings and conscious of their work, the chequing system will begin to work effectively people had the feeling that no one can be trusted and this makes them not confide on the cheque. But when the chequing system start to work effectively, people will begin to trust one another, the business transaction will begin to flow smoothly, loss of liquid cash to arrived robbers will be minimized and the naira will look afresh. The aim of the project work is to as much as possible, identify the problem seemingly facing the Nigerian chequing system, the prospects or the growth of all the system if any will equally be high liquated. Therefore suggestion and recommendation will be advanced as a means of making the chequing system work more effectively in Nigeria. To achieve all thee conscious efforts must be made by the operation of the chequing system, and should be geared towards educating the Nigeria public on the importance of the system. In this direction, the government has a part to play. The Banks and other financial institutions should Toin hands to save the Nigerian chequing system from total collapse. There are some solutions for more effective use of cheques on Nigeria, which we are going to treat on the next coming pages in order that Nigeria chequing will prove more effective. And most of these solutions have to be firstly solid by banks. When we look more closely we may fund out that the process of clearing cheques in the bank is always a long process thereby frustrating the customers who are in need of the money thereby discouraging the customers from putting their money in the bank. They prefer to lauding their money without any hassles.

1.2    DEFINITION OF TERMS

PROBLEMS: Problem of Nigeria chequing system or rather ineffectiveness of cheques in Nigeria is problems that hinder the growth of Nigeria’s chequing system.

PROSPECTS: Prospects of Nigeria chequing system is the hope or the height the Nigeria chequing tends to attain in the near future.

1.3    PURPOSE OF THE STUDY

The purpose of this study is to identify the problems, prospects, and growth of Nigeria chequing system out finding will help us to determine how to solve the problems customers encounter in clearing cheque and what could be done to solve the problems of chequing system. And them, to highlight the prospects or the height they want to attain in the near future and then most of their achievement and the growth they have got so far.

1.4       SIGNIFICANCE OF THE STUDY

The researcher believes that this study will be of immense significance to both the reader’s customers to banks and government agencies in a number of ways. By going through this study, the reader will know the problems posed in the country in terms of the Nigerian chequing system. The reader will understand some problems of lack of economic development following the consequence of not putting money in the bank due to delays in clearing cheques.

1.5       STATEMENT OF PROBLEM

This study is centered on the problem prospects and growth of Nigeria’s chequing system. There are so many problems customer banks have in the use of cheque as a medium of exchange. Banks are dishonoring so many cheques. There are frauds in the usage of cheques. Thus a lot of questions are to be answered in this study. What are the conditions on which cheque could be dishonored is the customer to the banks able to make use of cheques issued to him/her. Some people grant cheques knowing fully well that they don’t have an account in the said banks to cash the cheque or that they don’t have enough money in their account, so when people go to banks to present their cheque, it will be dishonored. We have heard details or records concerning forgeries in cheque and manipulation in a cheque, which will be treated in the later payee. When we look in the prospect of cheque in Nigeria system, Banks are in a high prospect or hope in making Nigeria chequing system run smoothly without any problem or to be able to detect fraud in a cheque that is to be cashed in the bank and so banks have high hope of making chequing system in Nigeria run smoothly without any ineffectiveness so that people will be encouraged to put their money on bank to reduce risk.

Related Project Topics :