The level of economic development is a sum total of all the
effective and efficient business activities of the country weather home or
abroad. The financial institutions have a very important role to play in this
development. The survival and future of a given country is hooked on to the
volume of business activities going on that country also the availability of
fund financing the activities is necessary.
The sole purpose of financial institutions is to aid private
individuals and government to finance their business project. Finance could be
termed as the propeller that causes business activities to progress.
There are financial institutions that deals with physical cash
transaction these institutions are known as banking Financial Institution for
examples First bank Nigeria Plc. Also there are other financial institution
though not bank but they complement the activities of the banks in financial business
projects these institutions are known as the Non-Banking Financial
Institutions, they include insurance companies, National Provident Fund (NPF).
The comparative societies, investment companies, financial companies, pension
In addition, there are various markets that made-up the financial
institutions. There are as follows:-
a. Liquid Capital and Money Market: Long and short
term lending and borrowing instruments are treaded by the owners and users of
b. Stock Exchange Market: In this market the share
of companies are declared for interested agents to buy.
c. Foreign Exchange Market: The market creates
opportunities for foreign exchange for the benefits of investors in carrying
out international business.
For the purpose of this study; the researcher will be writing on
the banking financial institution but before limiting it to the case study
below is a brief history of commercial bank in Nigeria.
COMMERCIAL BANKS IN
Commercial banks in Nigeria dates back to the early colonial
period. The decline in barter system of trade and the rise in financial
transactions of the colonial government, government required an institution in
the form of a commercial bank for safety and transmission of funds. It was
based on this reason that African banking corporation in South African was
invited in the year 1982 to established a branch in Lagos by the trade
depression that year in Lagos could but allow it existence.
In 1894, Bank of British West Africa took over its operations. The
bank of Nigeria was established by the Royal Niger Company in 1899. In 1912,
the bank of British West Africa absorbed the bank of Nigeria and exercise
monopoly over banking in Nigeria. However, in 1925, the Barclay Bank started
operations in Nigeria and in the later years other colonial banks joined.
In 1973, the banking industry was indigo used by the Federal
Government and this brought about the end of existence of expatriate banks in
1.1.1 BRIEF HISTORY OF FIRST BANK NIGERIA PLC
For over a century, first bank Nigeria PLC, has distinguished
itself as a leading banking institution and a major contributor to the economic
advancement and development of Nigeria.
In 1894, the bank commenced as a small operation the office of
elder Dempster and company in Lagos by a shipping magnate from Liverpool sir
It was incorporated as a limited liability company on 31st March 1894 with head office at
lever pool. It started business under the corporate name of the Bank for
British West Africa (BBWA) with a paid up capital of 12,000 pounds sterling
after absorbing its predecessor; the African Banking Corporation, which was
established earlier in 1892. This lead to the prominent position, which the bank
was to establish in the banking industries in West Africa.
In the early years of operations, the bank recorded an impressive
growth and work closely with the colonial Government in performing the
traditional functions of a Central Bank, such as issue of space in the West
In 1896 a branch was opened in Accra in Ghana so as to justify its
West Africa coverage also in 1898, another branch was opened in Freetown,
Sierra Leone. This operation marks the beginning of the bank international banking
1900, the bank established a second branch in Nigeria and this was
located in Calabar, two year later the operation was extended to the Northern
part of Nigeria.
The bank has a network of 315 branches throughout the federation
including a branch in the city of London and it maintains the largest branch
network in the banking industry.
To grant customers satisfaction, First bank has diversified into a
wide range of banking activities and services. These include corporate and
retail Banking, Registrar-ship, Trusteeship and Insurance brokerage.
1.2 STATEMENT OF THE PROBLEM
Banking is a long-term undertaking of which expected funds are
committed to enterprises to pay back within a period of time, for about twenty
(20) years depending on the type of loan.
As a result of unforeseen circumstances, many enterprises are
constrained to request for extension as failure to pay back could be due to
instability of government policies.
Problems such as frequent appointment of directors, government
subventions that is structural adjustment programme (SAP), diversion of loans
by directors into personal or private use, the privatization and
commercialization drive nonchalant attitude to work, over lending or
descriminary lending, poor recovery machinery and may be inefficiency on the
part of the management.
PURPOSE OF THE STUDY
The sole purpose of carrying out this research is to identify the
role of financial institutions (Banks) in enhancing business activities in the
Nigeria economy, particular reference will be made to First Bank of Nigeria PLC
The research will boil down to the topic of the research work and
all the problems it encounter the nation’s economy development and as well
recommend some possible solutions.
SCOPE OF THE STUDY
This research work covers the specific roles financial institution
plays in enhancing business activities and its consequence effect on the
Nigeria economy during the process of executing the roles. Special reference
will be on First bank of Nigeria PLC as a case study.
1.5 RESEARCH QUESTION
The quest to find out the role of financial institutions in
enhancing business activities has brought about the following research
a. To what extent does your bank allow over draft
b. Dose your bank offer loans to customers?
1.6 RESEARCH HYPOTHESIS
The researcher will make use of the following hypothesis
Ho: Customers are not satisfied with
services rendered by First Bank Nigeria Plc.
Hi: Customers are satisfied
with services rendered by First Bank Nigeria Plc.
Ho: Customers do not often come for
Hi: Customers often come for advisory
1.7 SIGNIFICANCE OF THE STUDY
This research study will be of help to the entire economy, the
government various business organizations and other banks in their policy
decisions as well as help to improve their performance. The significance of the
study in based on the importance of financial institutions towards the
enhancement of business activities in the Nigeria economy.
DEFINITION OF TERMS
duty in an undertaking
management of money
of instituting social activities.
to add value to something
encourage, supporter of business activities.
The act of carrying out business activity with somebody or an organization.
Being active in business. Programme going on in the business would.
TERMS AND CONDITIONS APPLY
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