ABSTRACT
This project is seriously discussing the function and the role of which the
micro financebank played in Economic development in Nigeria.
The project is specifically subdivided in to three major chapters.
These chapters bell the
roles and subdivided the role of which they played. For instance the chapter
one discuss the introduction and background of his story which discuss about
the history of micro financebank and how the micro financebanks are being
operated.
Chapter two continues with the related review and defunction of the bank.
In this chapter the objectives of the micro financebanks were also discussed,
infact the different between the micro financebank and peoples bank were also
expanciated upon.
The chapter three discusses about the summary of findings, the conclusion and
recommendations were also discussed.
All these mention are discussed in this project and widely expanciated.
TABLE OF CONTENTS
CHAPTER
ONE: INTRODUCTION
1.1 General
Background to the Subject Matter
1.2 Problems
Associated with the Subject Matter
1.3 Problems
that the study will be Concerned
With
1.4 The
important of studying the Area
1.5 Definition
of important Terms
1.6 Reference
CHAPTER
TWO: LITERATURE REVIEW
2.1 The
origin of the Subject Area
2.2 School
of Thought Within Subject Area
2.3 The
school of Thought Relevant to the Problem
of Study
2.4 Different
Methods of Studying the Problem
2.5 Summary
2.6 References
CHAPTER
THREE:
CONCLUSION
3.1 Data
Presentation
3.2 Analysis
of the Data
3.3 Recommendation
3.4 Conclusions
3.5 References.
CHAPTER ONE
INTRODUCTION
1.1
GENERAL BACKROUND OF THE SUBJECT MATTER
Scriptural looking into the Bible when God created Man, He left man with a
divine injunction as rewarded in the Holy Scripture, which Says, be fruitful
and multiply and replenish the earth and subdue it, and have dominion over the
fish of the sea and of the air.
And every living thing that moves upon the earth (Genesis 1.28) was the
command. The wheel of change has been rolling on throughout the entire
world transforming virgin lands, desert, ocean and sea to economic advantage of
Man. Nigeria was unknown then.
The first step in the British acquisition in Nigeria Ondon who later becomewas
the annexation of Lagos in 1861. This marked the first step taken by the
British Government in the 19th century to acquires economic and
political domination over the people of Nigeria.
The Hunder land of Nigeria north of Lokaja was being administered on behalf of
the British by a Government had declared a protectorate over areas cleared by
the land company in 1887. Then on January 1990, it took over direct
administration of the area from the Royal Niger Company and named it the
protectorate of Northern Nigeria with Lugard as its first High
Commissioner. This great political unit was christened “Nigeria” in 1990
by “Floral Show” Forum colonial correspondent of the times of London who later
become Lugards Wife (Onwubike 1973). Lastly the two separate Government in the
colony and the defectorate of southern Nigeria and the protectorate of Northern
Nigeria were alonagated as the colony and protectorate of Nigeria on January 7
St 1914, Lugard became the Nigeria first Governor General. He continued in the
March towards development in every fact of life as a new emerging
nation. In the West African region and by October 1st 1960, Nigeria
was further granted with a follow- up step by its political freedom and
emancipation when she was granted an independent status. She was also
granted the Republican status in 1963.
Furthermore, the plans for the growth and development of Nigeria was granted in
one year 1970 – 1974 but was extended to one year 1975 in the third month and
experienced a lot of problems. Recovery from one civil war displayed one
implementation of some project. The fund that were anticipated were not
forth coming and there was a lack of technical partners needed to carryout some
aspect of the plan (Anderson 1976). Also came the third development
plan. The plan covered a period of 5 years consecutively 1975 –
1980. The principal long – run objectives are similar to those of
the proceedings past independent plans.
The objectives are to
make Nigeria.
(a) A great
and dynamic country.
(b) A united,
strong and self- reliant nation.
(c) A just
and exaltation society.
(d) Aland of
bright and full opportunities for all citizens.
(e) A free
and democratic society.
A 9% per annum rate of growth of Gross Democratic Party (GDP) was assumed for
the plan period and the total consumed and capacity invested was to be N30
Billions, the plan strategy was to utilize the country’s resources to develop
the production capacity of the economy. The plan was received up wards in
1976 (Ojo 1982). Some of its highlights of these plans were
agricultural N1.400 million. The building of the two new oil
refineries at Warri and Kaduna while the one at Port Harcourt was to be
expanded. The iron and steel industry with features in both the previous
plan was to be established at Ajaokuta in Kwara
State. A total
of N6000 millions allotted to the industrial sector. Development of
the infrastructures also took a large shy with a total of N4000
millions being allotted. More roads were to come under the control of the
Federal Government (F.G) and a modernization of the railways was planed.
The electricity capacity was to be extended to 1500 megawatts with N 2000
million going to education, while health services were to be expanded
=N=2400 million were budgeted for armed forces (Anderson 1976).
The forth plan lasted for 4 years 1981 – 1985 and it described adequately the
development of Nigeria.
Development could be
defined as a displayed discipline which is the mooing force behind the socio –
economic transformation of society.
Most micro
financeleaders saw development as more provision for schools, health centers,
hospitals, post offices, town halls, churches, mosques, good roads, portable
waters electricity and telephones (Ewulu 1996). However, in the
post-independent era, the development process came to put more emphasis on the
improvement in the “materials” condition and living (of man) through the use of
resources available to him. In other words, development came to stress
production and productivity.
Some of the indications
of development are as follows:
1. Economics power (per capita income)
2. Employment
3. Savings investment
4. Level of literacy
5. Rural population
6. Nature/ Systems of Agricultural production
7. Quality of goods (1996)
Subsequently, several
programmers and strategies have been actively encouraged, promoted and
supported by the government amongst which are as follows:
1.
Various agricultural development programme operation feed the Nation (O F N).
Green Revolution, National Acceleration Food Project (NARFPP) and the
Agricultural Development Project (ADP).
2.
Directorate of Food, Roads and Rural Infrastructure (DFRRI).
3.
The promotion of co-operatives:
4.
Agricultural Credit Government Scheme and,
5.
Rural Banking Policy.
The transformation of
country into an economic giant has engaged the attention of successive Nigeria
government through the listed economic efforts and various developing plans.
1.2 PROBLEMS
ASSOCIATED WITH SUBSECT MATTER
Despite all the
institutional frame work put in place and the above development in Nigeria, the
giant stride expected to be made in the economical development have been
abysmally low and the situation has been yearning for a well laboured
attention.
The oiling rehabilitating and growling rate of development economically has
caught the attention of the researcher and prompted her into making statements,
she visualized that the problems acting is a load in the wheel of economic
progress of Nigeria.
Since Nigeria detached
itself from the dominion of British rule in 1960 by using politically
independent, it has not detached from British in terms of policy formation and
articulations. Most of the policies embarked upon from 1960 even to greater
extent today are fashioned after the British modalities.
1. Some of the economic policies initiated are
being done, obvious of the fast that other co-operating restitution that will
be argue in the development are not yet in place like micro financeBanks that
will address adequately the need of the realities which are integrated parts of
the geo-political entity called Nigeria.
2. Where the banks exist or existed they could not
as an economic catalyst because some of the reasons of inadequate collaterals
or to some on right lack of collateral to pledge against the loan being sought.
3. Some of the economic development policies being
vigorously and also religiously pursued seen the side treat in the rural areas
where he 65% - 70% of the population resides.
4. Another problem observed then was that, it has
been in link up to full realization of our economic dreams in improper
re-appraisal of the lapsed policies with a view to know the difficult areas in
terms of meeting the envisioned target.
5. Other problem is to the transformation of
Nigeria into a strong viable and reliable, a robust economic collision dreamed
is the death of banking habit or culture among the citizens.
The chemically of role funds from the surplus
sector of the economy to the deficit could not be made. These worries were
trying follow in a pillow or banned aground in various homes.
6. Lastly, another problems in the economic development
of Nigeria is the topside economic concern various orthodox banks station in
the rural areas act as cash centers and the funds mobilized are not ploughed
into development. The areas rather they are reputed to the township head office
for onward lending to beneficiaries outside the catchments areas from where the
said funds were mobilized.
1.3 IMPORTANT
OF STUDYING AREA
With decree 46 of 28th April
1990 establishing micro financeBanking System. It marked another landmark in
the annual of Nigeria Economic development. The researcher has the under listed
purpose when venting to address the issues of micro financebanking System in
Economic Development of Nigeria.
a) To know the extent the
establishment of micro financebanking system wills galvanize economic
development in Nigeria.
b)
To ascertain thinking trend of doming influence of “Few money bag” in the
conventional banks have been put to list by micro financedevelopment
association. Having a controlling share of 30% of the called
and fully paid up sharks capital.
c)
To determine to what extent funds guaranteed from the rural areas are extended
to them to subsidies economic development in these areas.
d)
To assess how personal reorganization to collateral has succeeded in leading
people into taking loan to generate economic activity.
e)
To asses how adequately it has utilized the provision of section 4:1:12 of the
revised micro financebank prospectus which read “perform non-banking functions
that promotes grass root development such as supporting individuals co-operate
and group formation activities assisting clients in making of agriculture, in
rural individuals and others products and providing financial and other
extension chart and other micro financemembers.
f)
To determine to what extent the banking of micro financebanking system as
contain in sector 4:1:13 of caused micro financebank prospects which read inter
ales “shall not engage in soplusticated banking services like foreign exchange
transaction or international micro financepapers, corporate finance in order to
enable them retain their local focus and concentrate on micro financeservices
will determine economic development in Nigeria.”
g)
Ascertaining the impacts of central Banking of Nigeria (CBN) and other
financial institution Decree (BOFID) and companies allied matters Act (CAMA) on
the micro financeBanking system in its vowed determinant to coach this country
into economics.
h) To
re-appraise the negative input of non-provision of a centre clearing house for
the micro financebanking system in the economic development training in
Nigeria.
i)
To know to what extent the unfriendly disposition of the conventural banking
system terms of shifting bank charges for service reudened to these micro
financebanks will be another barricade in the movreh to a new economic down for
Nigeria.
j)
Finally, to evolutes how the funds of the micro financebanks trapped in the
distressed commercial merchandise and financial house has been putting legs of
economic development art from moving at the expected pace.
1.4
IMPORTANT TERMS
This research work may
be of valuable assistance to individuality managers of
financial institutions, small and medium scale industrialist policy makes and
other researcher in this field.
Some of the affendant benefit include the following; Industrialist,
small and medium scale industrialist will be able to see micro financebanking
system as another source of financial at its disposition, which they had hither
to been ignorance of.
To the managers of financial institution including orthodox banks. It
will expose to them how unfriendly by disposition to this micro financebanking
system in terms of change or services affected on their behalf will geopardize
the dream of a giant economic nation. Also, it will expose how miss-
appropriation of placement made in these institution by micro financebank have
adversely affected, since a lot of them have closed shops as a
result of illegitimatize occasions by distress syndromes that has set a
shifting hand into the banking sector.
To the policy, it will act as an eye opener, so that when policies are being
made, it should be well articulated and every minutes detailed built in so,
that such policy should be avoided to loose – ends. Such loose-ends and
in articulated policy characteristics of the micro financebanks decree is the
non- provision of clearing house of the micro financebanking system which left
them and the many of the micro financebanks, in item of detrimental charges
handed down to them.
To student, researchers and those which curiously and injury wound. It
will extend itself as a pedestral or subtraction upon which expansionary and
follow up study offering courses on micro financebanking, it will be added to
the words of literature available for references.
Department | Banking and Finance |
Project ID Code | BFN0271 |
Chapters | 3 Chapters |
No of Pages | 25 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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