THE CONTRIBUTION OF THE BANKING INDUSTRY TO THE DEVELOPMENT OF NIGERIA ECONOMY

CHAPETR ONE

INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

Abstract

The banking industry is one of the most regulated industries. It is also generally acknowledge that the availability of financial capital is a prerequisite for rapid development, transformation of any nation economy growth, it follows that bank has a vital contribution in economy by making their vast financial resources available for financial and promoting development. Though the use of interview and questionnaire issued to staff and customers, the researchers was able or know the various ways in which the bank has contributed in nation economy from the finding. It is understood that banks, most especially united bank for Africa (UBA) Nassarawa branch has help the people through its capital formation and supply for economic development through the provision of audit for both small and large scale industries through accepting of deposits, provision of Ioan and incentive to agriculture, mortgage loan for shelter has in no small measure helped to develop and diversify the Nigeria economy.

 CHAPTER ONE

INTRODUCTION

• Background of the study

The banking industry in Nigeria plays a very significant role in economic development of the country. According to Abdullah (2006) the banking industry in particular plays a vital role in the economy development of Nigeria by mobilizing savings and channeling them for investment. Especially in real sector which increase the quantity of goods and services produced in the economy, the national output increase and the level of employment improves. A bank is a sector holding a valid license to carry on banking system, according to section 61 of BOFIA Banking business means the business of receiving deposit on current account, savings account or other similar account paying or collecting cheque drawn by a customer, such other business as the governor may by other published in the gazette designated as banking business. The banking industry In Nigeria plays a very significant and positive role only if it is functioning effectively. According to Beatrice (2009) it is generally acknowledge that the availability of financial is a requisite for rapid development and transformation of any economic growth, it follows that banks have a very vital contribution to the development of the economy by making vast financial resource available for financial activities and promoting development. Several research have been carried out on the contribution of banking industry but the contribution of banking industry to the development of Nigeria economy has not been given adequate research coverage, it is therefore the need to examine the contribution of banking industry to the development of the Nigeria economy, the research is expected to fill the existing gaps and give it`s clear knowledge on the contribution of the banking industry.

1.2 STATEMENT OF THE PROBLEM

The banking industry has contributed to the development of Nigeria economy, yet it has also experienced a lot of challenges, the banking industry has witness some distress phenomenon, this has sent a negative signal to some sector of the economy, this has affected the level of activities in the banking industry, with investors directing their monies to real estate and capital market, in such situation many businesses are folding up and life generally becomes difficult for average Nigerians.

1.3 OBJECTIVES OF THE STUDY

The aim of the study is to examine the contribution and impact of banking industry in Nigeria economy growth (UBA) PLC, Nassarawa state.

The above aim is achieved under the following objectives.

1. To examine various service rendered by the banking industry, especially UBA Plc.
2. To examine the contribution of the contribution of the banking industry to the development of Nigeria economy.
3. To examine how united bank for Africa (UBA) Plc has contributed to the development of Nigeria economy.

 1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H₀:   there are no services rendered by the banking industry, especially UBA Plc apart from banking services.

H₁: there are services rendered by the banking industry, especially UBA Plc apart from banking services.

H₀²: there is no contribution of the contribution of the banking industry to the development of Nigeria economy

H₂: there is contribution of the contribution of the banking industry to the development of Nigeria economy

 1.5 SIGNIFICANCE OF THE STUDY

The research work we be of benefit to operators in the banking industry, and the apex body to keep sight of their resource in order to increase their stake holders wealth. The study will also enable government and banks to take corrective measures to reverse unfavorable trends in the banking sector, in order to build on their positive contribution.

1.6 SCOPE AND LIMITATION OF THE STUDY

The research study will examine the role of banks with a particular reference to united bank of Africa (UBA) Plc, the impact and contribution of the banking industry in Nigeria covers a wide range of study, it will be time consuming to cover all the contribution of bank in the development of Nigeria economy. The researcher encounters some constrain which limited the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities

1.7 DEFINITION OF TERMS

Cheques

Cheque is an unconditional order in writing addressed by one person to another who must be a banker signed by the person giving it, requiring the banker to pay on demand a sum certain amount of money to the order of a specified person or to the bearer.

Bills of exchange

Is an unconditional order in writing addressed by one person to another signed by the person giving it, requiring the person to whom it is addressed to pay on demand or fixed or determinable future time a sum certain amount of money to a specified person or to the bearer.

Banker`s draft

This takes the form of an order addressed by a banker to itself or one of its branches to pay the sum specified therein to the payee these draft are not bills of exchange in cases where the same bank drawer and payee.

Promissory note

Is an unconditional promise in writing made by one person to another signed by the maker engaging to pay on demand or at a fixed or determinable future time a sum certain amount of money to the bearer.

Treasury bills

Treasury bills are promissory notes representing short term loan to the government which are repayable ninety days after issued, they are usually issued for a fixed sum by the central bank of Nigeria acting as agent for the government.

Loan

These are given for longer term and usually for specific purpose which are detailed to the bank personal customer seek these to buy consumer goods such as cars, boats, electrical goods, etc while business customer seek to purchase machinery, building equipment, those items which are known as investment goods.

Overdraft

These are available to both personal and business customer the facility allows customer to draw cheque on their account for sum in excess of that credited in their current account.

Bearer debentures

These are document issued by a company acknowledging its indebtedness to the holder or bearer, they are usually for long term loan to the company at fixed rate of interest and secured on a floating charge on the assets of the company, this means that if the company those not meet the interest payment or repayment the holder of these debenture can sell the asset and take their monies from the proceeds, the holder of a barer debenture of a company is thus secured creditor of the company.

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