ABSTRACT
This project work titled
problems of money transmission in Nigeria banks (A case study of United Bank
for Africa Plc Agbani Road Branch, Road) is intend to evaluate the problems of
money transmission in Nigeria banks. Towards this end, the researcher
employed questioners, interview and secondary source of data such as text books
working mineral etc to source the data for the researcher work.. The
researcher also employed percentage frequency statistical techniques to analyze
the collected data. The researcher discovered or found out from analysis
of data that there is a serious inefficiency and ineffectioness of
communication network in the country Nigeria which hinders effective money
transmission services etc. she therefore recommends that the bank, the
Central Bank of Nigeria (CBN), the monetary authorities as well as
communication service providers should evolve a more effective policy(ies) that
would and growth of the bank and in Nigeria economy general. Also effort
should be geared towards ensuring steady power supply needful in effective
transmission and communication networking.
TABLE OF CONTENTS
CHAPTER 1:
INTRODUCTION
1.1
Background of the
Study
1.2 Statement
of
problem
1.3
Objective of
Study
1.4
Research
Hypotheses
1.5
Significant of
study
1.6
Scope and
Delimitation
1.7
Definition of
Terms
CHAPTER 2: REVIEW OF
RELATED LITERATURE
Payment System in
Nigeria
Channel of Money
Transmission
Money Transmission
Instrument
Cheque
Draft
Mail and Telegraphic
Transfer
Money and Postal
Orders
CHAPTER 3: RESEARCH
DESIGN AND METHODOLOGY
3.1
Introduction
3.2
Sample size and sample
method
3.3
Method of Data
Collection
3.4
Questionnaire
3.5
Method of Data
Analysis
3.6
Limitation of the
Study
CHAPTER 4:
PRESENTATION/ANALYSIS OF DATA
Interpretation of
Data
CHAPTER 5: SUMAMRY OF
FINDINGS, RECOMMENDATION AND CONCLUSION
5.1
Summary of
Findings
5.2
Conclusion
5.2
Recommendation
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The banking decree of
1969 in defining the banking business incorporated all the functions of the
institutions. However, in terms of what services banks offer to the
public, three stand out distinctly deposit and payment mechanism, finance and
credit and money creation.
The role the banks play
by facilitating payments for goods and services without the need to hold hand
to hand currency cannot be overemphasized. By the use of the deposit and
payment by cheques the settlement of debts by means of coins and note have
become unnecessary. In the definition of money supply, demand deposits
are distinguished from time deposit because cheques are in most societies,
generally accepted means of payment.
Consequently, in a
system where the payment mechanism does not allow for the force and full use of
cheques, it becomes unnecessary and anomalous to distinguish between demand
deposit, and hand to hand currency on the one hand and time deposit on the
other hand.
The next role-played by
banks and which is of tremendous interest to businessmen is that of providing
finance and credits for business the bank serve as intermediaries between
lender and borrower.
In the process of
lending banks creates money by borrowing to investors who pay interest on these
funds given to them. How much a bank can create money depends on their
reserve ratio. Banks increase and decrease the quantity of money in
circulation through their actions.
Having discussed these
categories of services; I do intend to appraise how adequately the banks have
provided these services to the Nigerian public. Section 39 (11) of the
central bank of Nigeria Act 1958 requires the central bank to “promote and
maintain as three to four months to be cleared, in spite of the provision of a
maximum period of 21 working days from the data of lodgment as stipulated by
the Central Bank of Nigeria (CBN) in the “Bankers Tariff.
In some cases, customers
are allowed to cash their open drafts over the counter because the draft over,
did not arrive until months after the drafts have been presented for
payment. Statements of account are not sent to customers regularly.
In other cases, standing orders are delayed.
Some of the incidents
have attracted public criticisms, this made the author to develop interested in
carrying out a research into the problems of one of these services, rendered,
money transmission.
1.2
STATEMENT OF THE PROBLEM
Of the many services
which the banks render in our economic system and which people criticize are
being inadequate; money transmission appears to be the least resolved in terms
of solutions for optimization.
A lot of writers on this
issue, have blamed the poor state of this service on dearth of effective
communication in Nigeria, the tendency for banks to be reasonability careful
because of the high rate of fraudulent activities involving both the public and
some bank staff, such as authorized printing of bank stationary like fake
cheque books, bankers draft, tellers and robber stamps. Others include
manipulating of computer records, signature forgery and nonchalant attitude by
staff as regard their duties.
Among these possible
causes of inadequate money transmission in Nigeria, there have been possible
solutions. However, it is pertinent to mention that most of the
literatures written on this topic lack the merits of an empirical study.
In spite of the numerous solutions offered in these works, the service of money
transmission in Nigeria has remained inadequate.
This indicates that the
central bank of Nigeria in turn requires the commercial banks to provide
adequate services to the Nigerian public. Indeed the Central Bank of
Nigeria can be said to set the machinery for the promotion and maintenance of
adequate and reasonable banking services to the public. They take such
steps by publishing the bankers tariff which set out the amount of charges to
be paid by the public for certain services and those that are expected to be
free, the length of time, certain transaction are to be completed, charges for
consortium lending. But the issue is how effectively are these
specification followed and hence how adequate are our banking services.
Commenting on inadequate
banking services Dr. Pius Okigbo, a banking consultant said: Banking services
can be adequate only if the customer does not have to go through pains to
obtain these services. They can be obtained these services. They
can be adequate if the customer does not have to travel a long distance to find
a banking faculty. They cannot be adequate if the customer has to suffer
humiliation and wait endlessly in long queens to deposit or withdraw his or her
money. They cannot be adequate if the commercial banks cannot rely on
other institutions to provide ancillary services.
These excerpts or
passage from Dr. Okigbo highlights some of the amply in the provision of
adequate banking services by our commercial banks. The following are
district without commercial banks such as:
The problem of under
banking in terms of the number of banks and banking offices per square
kilometer as well as in the density of banking officers per unit of population.
Delay in our banking
system. A visit to any banking hall of any bank anywhere in the country
spell long queues. These often lead to ways of seeking preferential
attention.
Lack of financial
infrastructure to support commercial banking. The delay in transferring
money from one place to another, cheques take as long one to two weeks on the
average.
1.3
OBJECTIVE OF THE STUDY
In any research work,
the setting out of clearly defined objectives is the bedrock of any project
work. In Nigeria, money transmission is very relevant because apart from
any other fact, it is easier for the beneficiary to receive money.
The specific objectives
of the study can be summarized as follows:
i. To
find out whether ineffective communication, both postal and telecommunication
services, inhibit effective money transmission in Nigeria.
ii. To
find out whether efforts to guard against fraud by banks, effect negatively,
their ability to render adequate money transmission services.
iii. To
find out whether there are anomalies in our banking system that inhibit
effective money transmission in Nigeria. This will also include attitude
of bank staffs.
iv. To
also recommend ways of improving money transmission Nigeria based on the
findings.’
1.4
RESEARCH HYPOTHESIS
H0:
Customer does not make use of drafts in United Bank
H1:
Customer does make use of drafts in United Bank
Hypothesis II
H0: System of money
transmission does not proved efficiency in the bank.
H0: System of money
transmission proved efficiency in the bank.
Hypothesis III
H0: There are many
problems in local clearing management.
H1: There are not
many problems in local clearing management
1.5
SIGNIFICANCE OF THE STUDY
One major significance
of this study is to bring out the problems facing money transmission in Nigeria
banks. This study therefore, will enable other financial institutions to
tackle their problems.
Also, this study will be
very useful in developing Nigeria banks in the economy which may positively
affect the growth of the economy.
This study will be
useful to individuals trying to lodge or transfer money on their own thereby
knowing the importance and usefulness of money transmission. Nigeria,
undoubtedly, at present, operates a cash economy. Cheques are not readily
acceptable to transaction business or make purchase in view of people’s
mistrust for cheques. Added to this, there are undesirable delays by
banks in the checking system.
Again, the “Dishonoured
Cheques (Offences) Act 1977” which makes it an offence punishable by two years
imprisonment for a corporation or company if their cheques are dishonoured to insufficiency
of funds, did not and was not able to check the abuse of the use of
cheques. Drafts were not honoured until weeks when the cover
arrived. Standing orders were minored, but when the beneficiary resides
somewhere else, there is delay of several weeks before amounted is
received. Postal and money orders were constantly being refused as means
of settlements. The result of these were disenchantment about our money
transmission instruments. People preferred to carry large sums of money
about especially now that we have higher denominations.
However, carrying large
sums of money about have money serious draws backs. Apart from being
bulky, it exposes one to the risk of failing prey to armed bandits and night
murders. There have been numerous cases of money businessmen rendered
useless by armed bandit while carrying about large sums of money. Many
company have been raided by armed robbers while carrying huge sums of money
intended to be used as staff salaries. This research is necessitated therefore
by the need to identify the causes of inadequate money transmission service in
Nigeria, recommended solutions for their improvement and effective utilization
and save Nigerians from the quagmire of a cash economy.
1.7
DEFINITION OF TERMS
This research work
intends to define some terms, and burg our full meaning of some observations,
which will help the reader in understanding the contents in the study work.
i. Bill of
Exchange:-
Section 1 of the Bill of Exchange Act 1982 defines a bill of exchange as an
unconditioned at 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 at a fixed or determinable future time, a sum certain in money to a
specified person.
ii. Cheque:- A cheque may be defined as a bill
of exchange drawn on a banker payable on demand
iii. Draft:- It is known as
bankers draft. It is a bill of exchange drawn by a bank on another bank
office of the same bank.
iv. Fraud:- This is described as
obtaining a material advantage by unfair means.
v. Fraudulent
practices:- There shall for the purpose of this study
include the following forged cheques, signatures and cashiering fraud.
vi. Forgery:- This may
be defined as fraudulent making or alteration of a writing to the prejudice of
another men’s right.
vii. Money order:- This is an
official order bought from a postal office for money to be paid by another post
office to a named person.
ix. Money
transmission:- This is
defined as a process of transferring cash from one person to another through
the means of cheques, drafts, mail money or postal orders and standing orders.
x. Negotiable instruments:-
A negotiable instrument has the following attributions.
a. Title passes by delivery only or by
endorsement and delivery.
b. A transferred taking such an instrument in good
faith and for value, can acquire a better title than that possessed by his
transfer to pay affected by prior equities or branch to pay a specified sum of
money to a named beneficiary.
c. The holder can see in his own name parties to
establish his title.
xi. Promissory
notes:- A 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 money to the bearer.
xii. Poster order:- This is
an official order brought from post office for payment to be made to a named
beneficiary to another post office.
xiii. Standing
order:- This is an
instruction given by a customer to his bank, requiring a certain payment to be
made to a person.
xiv. Telegraphic
transfer:- It is an instruction from one bank to another or
from one branch of a bank to another or from one branch of a bank to another
requiring the bank or branch to pay a specified sum of money to a named
beneficiary.
Organization of Work
This research work
consists of five (5) chapters. Chapter one is introduction, statement of
problem, objective of study, significant of study, scope and delimitation,
definition of terms and organization of work. Chapter two bring out the
theoretical framework (literature review) on preamble channels of monetary
transmission, money transmission instrument, cheque, draft, money and poster
orders, money gram and western union, mail and telephone standing orders and
problems of money transmission in Nigerian Banks. Chapter three elucidates the
research method used, sampling size and method, methods used in collecting
data, the interview format and limitation of the study. Chapter four discusses
data presentation, analysis and interpretation. Finally, chapter five presents
the conclusion and recommendation of the study.
Department | Banking and Finance |
Project ID Code | BFN0260 |
Chapters | 5 Chapters |
No of Pages | 93 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |