SOLD BY: THE CONTRIBUTION OF THE BANKING INDUSTRY TO THE DEVELOPMENT OF NIGERIA ECONOMY
(A CASE STUDY OF UNITED BANK FOR AFRICA NASARAWA BRANCH)
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
1.1 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 RESEARCH 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.
- To examine various service rendered by the banking industry, especially UBA Plc.
- To examine the contribution of the contribution of the banking industry to the development of Nigeria economy.
- To examine how united bank for Africa (UBA) Plc has contributed to the development of Nigeria economy.
1.4 SIGNIFICANT 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.
1.5 HYPOTHESIS
H0 – there is no
significant relationship between the contribution of the banking
industry to the development of Nigeria economy growth.
H1 – there is a significant relationship between the contribution of the banking industry to the development of Nigeria economy.
1.6 SCOPE OF 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.
1.7 LIMITATION OF THE STUDY
- Poor responses from the respondent – Most of the respondents were ignorant of the purpose of the research as such were not willing to disclose certain vital information.
- Time factor – This is one of the major challenge encountered by the researcher, having to cover the united bank for Africa (UBA) Plc, in order to distribute the questioner lots of time.
- Finance – this is another challenge encountered by the research, having to cover the whole study areas, requires money.
1.8 OPERATIONAL 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.
REFERENCES
Sebastian O.V (2004) Core Bank Management 1st Edition, Precision Publisher Limited
Okaro C.S (2010) Monetary Banking Methods and Processes
Adegoke F. (2007) Law and Ethics of Banking
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