The critical causes on why financing small and medium scale industries by commercial banks in Nigeria have not been very effective were evaluated. Not only are the SMEs starved with financial back-up, they are also faced with other external problems such as high interest rates, inconsistency in government industrial policies, lack of infrastructural facilities and internally; poor management practices, high rate of business failure, poor accounting standards, shortage of skilled manpower and financial indiscipline.

In view of these numerous problems, this research work was conducted so as to come out with solutions as this will pave way for banks to have more confidence in financing these SMEs efficiently and effectively as against hitherto, their stringent lending policies and the risk averse behaviour of funding. This has become necessary as it is a well know fact that the survival, growth and development of SMEs of any country depend largely on funding with other factors put in place.

In the light of the findings in this research work, some recommendations and suggestions were made to the government, commercial banks and the small and medium scale entrepreneurs themselves which if implemented will not only sustain the survival, growth and development of this sector, it will also provide employment opportunities and improve the economy situation of Nigeria.



















Title page                                                                                                                    i

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of content                                                                                                          vi



1.0       Introduction                                                                                                    1

1.1       Background of the study                                                                                1

1.2       Statement of the problem                                                                               2

1.3       Objective of the study                                                                                    2

1.4       Formulated of the study                                                                                 2

1.5       Justification of the Study                                                                               3

1.6       Research Methodology                                                                                   3

1.7       Scope of the Study                                                                                         4

1.8       Limitation of the Study                                                                                  4

1.9       Definition of Term                                                                                          5



2.0       Literature Review and Theoretical Framework                                              6

2.1       Introduction                                                                                                    6



3.1       Introduction                                                                                                    13

3.2       Research Design                                                                                             13

3.3       Research Instrument                                                                                       13





4.0       Presentation and Analysis of Data                                                                 16

4.1       Introduction                                                                                                    16

4.2       Presentation of Data                                                                                       16

4.3       Testing of Hypothesis                                                                                     22



5.0       Summary, Conclusion and Recommendation                                                 24

5.1       Summary                                                                                                         24

5.2       Conclusion                                                                                                      24

5.3       Recommendation                                                                                            25


REFERENCE                                                                                                             27

TEST BOOKS                                                                                                              28



General Overview

For both developing and developed countries, small and medium scale firms play important roles in the process of industrialization and economic growth.

All small scale enterprises are established purposely to achieve stated goals and objectives of the establishment. The development of a nation to a great extent depends on the stability of its economy. The establishment of small scale enterprises is usually acknowledge as the engine of economic growth and fast means of underdevelopment economics. In recent times, there has been tremendous increase in the establishment of small scale enterprises worldwide.

Nigeria, like many developing countries of the world has began to realize the important role of small scale business play in the development of a sound industrial base for any nation. The increase awareness of the fact that small scale enterprises, like self-Reliance Economic Advancement programme (SEAP),  constitute the major tool for developing the economy of every nation precipitated great concern by the three levels of government (Federal, State and Local Government). The role performed by small scale enterprises in Nigeria includes the provision of employment opportunities, contribution to the Gross Domestic Product (GDP), utilization of local materials, which encourages self-reliance mobilization of idle capital towards development of urban and rural sector. A small scale enterprises includes restaurant, services, bakery, block industry, barbing, medicine  or chemist store, barbing and hair dressing saloon among others.

Structural adjustment (SAP) which was introduced in (1987) aimed at effective altering and restricting the production patterns of the economy as well as eliminating price distortion, heavy dependence on the export of crude oil and importation.

Nigeria government established some banking and financial institution to help facilitate the implementation of the economic programme. Among these institution were the Nigerian Bank for Commerce and Industry (NBCI), the Nigerian Industrial Development Bank (NIDB), also The People’s Bank of Nigeria (PBN) and Community Bank established to provide funds for small and medium scale enterprises witnessed slow growth rate because of the uncooperative attitude of our financial institutions through bureaucratic red-tapism which tend to  make borrowing difficulty due to certing stringent requirement. Moreover, these institutions usually offer short-term business loans provided mainly working capital. Few industries succeed in utilizing these available opportunities to develop a sound financial base while many others are handicapped by financial constraints, ignorance of the usefulness of financial institution and difficulty in obtaining loans due to rigorous  borrowing procedure.


1.2       Statement of the Problem

One of the main obligation of commercial Bank in Nigeria and else where in the maximum contribution  to the economic development of the nation. Others are maximum profitability owned to the depositors. This research work will concentrate on the maximum contribution to the economic development of the nation, i.e. through financing SMEs by commercial banks. The analysis of the research problem with this pose some questions like. Do commercial banks finance small and medium scale enterprises adequately, if not what are the limitation.


1.3       Objective of the Study

Since the importance of SMEs forwards the development of any country’s economy, as already discussed in chapter one cannot be overemphasized, this write-up is aimed at achieving he following objectives:

  1. To highlight the different sources of finance avoidable to small and medium scale industries in Nigeria
  2. To examine the role of commercial banks in satisfying the financial needs of SMEs in Nigeria taking Union Bank of Nigeria Plc as a case study.
  • To improve the financial assistance to the entrepreneurs by commercial banks


1.4       Formulation of Hypothesis

Hi:       That financing small and medium scale enterprises by commercial banks has been a failure prizes by commercial bans has been a failure

Ho:      That obtaining financial assistance by small and medium scale enterprises from commercial banks is very difficult and that most of the assistance is obtained through savings and borrowing from other sources.

1.5       Justification of the Study

In the modern times, industrial production requires the procurement of equipments, machineries and other inputs. The capitals required in procuring industrialists have access to it considering the type of collateral security required by the banks which must be fulfilled before granting loans. Since Commercial Banks act as intermediaries  between scattered pockets of surplus and the business community desirous of loans for investment at the end of this research work the following will be attained;

  • SMEs Industrial list will be able to known same sources of financial and choose amongst them the best
  • Commercial banks will know how effective and efficient they have been towards economy development.


1.6       Research Methodology

As it is fully aware, the significance, reliability and validity of any research work to a great extent depends on the methodology used. There are two methods of data collection; the primary and secondary methods. The primary method consist of structural questionnaire and personal interview, while the secondary method include published government documents and journals, periodicals notable from central bank of Nigerians’ Publications like Bulletins financial and economic review textbooks ,magazines, budget speech and so on be. This research work will not be exceptional.

  • There will be two sets of questionnaires: one set will be for same top management and employees of UBN PLC. The other set will go to some small land medium scale industrialist through the chairman of NASSIS.
  • There will also be personal interview with some staff in the credit department of CBN, PLC and also some skill of industrial development centre.
  • There secondary method will also be consulted as this will give room to obtaining financial data easily. Also data will be obtained form manuals, reports and handbooks of UBN, Plc. IDC inductive.


1.7       Scope of the Study

This research work is intended to examine the financing of  SMEs by commercial banks with emphasis on UBN, Plc. As seen in the earlier part of this chapter the importance of SMEs towards economic development of a nation cannot be overemphasized the study covers all kinds of industries, production, processing, servicing, e.t.c.


1.8       Limitations of the Study

One of the major limitations is carrying out their work is time. There is time constraint is carrying out this research work due to the face that there are other academic engagements like attending, lectures, writing, assignment, test e.t.c. Another limitation of this study is tat only UBN, Plc is used. The operation in this bank will certainly not represent. The genuine situation obtainable in other banks. This can be as a result of differ policies or the financial capabilities in lending. However, UBN, plc is chosen because of its financial banking and thus represents commercial banks that can fulfill their obligations as seen in the earlier part of this chapter.


1.9       Definition of Terms

  1. Small and Medium Scale Industries (Enterprises) SME: Small and medium scale enterprises are defined as those enterprises with fixed assets other than loan but including the cost of new investments not exceeding #36Million.
  2. Entrepreneur: This can be defied as a person who set and start his own new and small business enterprises
  3. Economic Growth: This is defined as a sustained increase in a nation’s gross national income per capital over a long time period.
  4. Economic Development: This is defined as the structural transformation of all the economic indexes form a low to the high strata.
  5. Financing: This is the process of sourcing for fund or acquisition of funds for financial purpose
  6. Capital: This can be defined as wealth or property in form of money or property, sometimes the basic sum in an investment enterprise.
  7. Collateral Security: Property or something valuable which is used as guarantee that someone will pay such a landed property, insurance policy e.t.c which the bank is authorized to take in the event of a customer defaulting in the loan agreement.
  8. Loan: The sum of money borrowed at an agreed rate of interest. It can be of long term or short term.
  9. Overdraft: This is a financial assistance granted by way of allowing customers withdraw in excess of the balance in their accounts.
  10. Assets: Resources or things of value owned by an economic nit, such as a firm, Individual or household as cash property and right to property



This research work is on inventory control in a manufacturing company with specific reference to Cadbury Nigeria Plc, Lagos where inventory control is under the store section. Inventory otherwise known as stock, are the item of value for use and sales by a company and usually comprises of raw materials, work in progress and finished goods. Inventory controls are essential for an organization. Materials are the lifeblood of industries today, indeed, no organization can operate or survive without them, and expenditure on raw material normally represents a major proportion of operation cost. The question is what ideal level of inventory to carry. How much shall we order to be able to maintain certain level? When and from whom manager is expected to answer because they constitute problem of inventory control. It must however, be noted that the problem of stock cannot be totally eradicated in any manufacturing concern. There are numerous method or techniques that have been used to arrest inventory or stock problems, more often a method or technique that is functional in one form may not be adequate on the same with other industries. It is therefore pertinent to note that there is no one best or general method or technique that is acceptable to all organization on stock control. Thus, adequate stock control help in the efficient control of finance, inadequate control of stock could lead to either loss or tying down of scare resources.


Title page                                                                                                        i

Certification                                                                                                    ii

Dedication                                                                                                      iii

Acknowledgement                                                                                          iv

Abstract                                                                                                          v

Table of content                                                                                              vi


Chapter One

Introduction                                                                                                   1

1.1       Background of the study                                                                                2

1.2       Statement of the problem                                                                               2

1.3       Research question and/ or hypothesis                                                             2

1.4       Research hypothesis                                                                                        2

1.5       Objectives of the study                                                                                   3

1.6       Scope of the study                                                                                          3

1.7       Limitation of the study                                                                                   3

1.8       Significance of the study                                                                                3

1.9       Definition of terms                                                                                         4


Chapter two

Literature review     

2.1       Introduction                                                                                                    5

2.2       Inventory management; definitions and concepts                                          5

2.3       Inventory models                                                                                            7

2.3.1    Re – order level system                                                                                   7

2.3.2    Periodic review system                                                                                   8

2.3.3    The economics order quantity model EOQ model                                         8

2.3.4    EOQ assumption                                                                                             9

2.4       Inventory management                                                                                   10

2.5       Objective of Inventory Management                                                              11

2.6       Problem of Inventory Control                                                                        12


Chapter Three

Research Methodology

3.1       Research Design                                                                                             14

3.2       Area of Study                                                                                                             14

3.3       Population of the Study                                                                                  14

3.4       Sampling Techniques / Sample Size                                                                14

3.5       Instrument for Data Collection                                                                       15

3.6       Method of Data Collection                                                                             15

3.7       Method of Data Analysis                                                                               15


Chapter Four

Data Presentation, Analysis and Interpretation

4.1       Introductions                                                                                                  17

4.2       Data Presentation                                                                                            17

4.3       Analyses of data                                                                                             18

4.4       Testing of hypothesis                                                                                      23


Chapter Five

Summary, Conclusion and Recommendations

5.1       Summary                                                                                                         25

5.2       Conclusion                                                                                                      25

5.3       Recommendations                                                                                          25

References                                                                                                      27

Appendix I                                                                                                      28

Appendix II                                                                                                    29





1.1       Background of the Study

Inventory control and store management grew up with the advent of the industrial revolution in Europe in the 19th century. Inventory control problems are not only related to the manufacturing concerns but also occur in organization such as the armed forces, transport undertaking, hospitals, school, social clubs and government agencies.

Inventory control also involves systems and process in identifying inventory requirements, set targets, provide replenishment techniques, report actual or projected inventory status and handle all function s related to the tracking and management of material.

Inventory control is primarily concerned with determining and controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling cost.

Inventory is defined as detail list of stock items such as raw materials, spare parts, finished goods and work in progress. Meanwhile, control is the process of gathering and feeding back information about performance so that the decision maker can compare actual result with planned result.

Generally, the word inventory is used to mean a detailed list of valuable in the right quality and quality at the right time and at the lowest possible cost. It is paying more attention to what is ending into the store, what is in the store and what is leaving the store. Activities of inventory control means to achieve the following;

  • Ensure the purchases and supplies conform with specification
  • Determining the extent of each item to hold in stock
  • Ensure that items needed for storage are stored
  • Deter mining minimum and maximum stock levels, re-order level and economic order quantity EOQ and
  • Paying attention to economy in storage, ordering cost, pilferage and obsolescence and degenerating costs


The value of the inventory is the cost of acquiring those goods and services. But inventories in manufacturing and service business can take three different forms as follows;

Raw Materials: Any materials purchased for use in production, the value of raw material inventory is the cost of acquiring it.

Work in progress (WIP): Products or services on which production is underway but is not yet complete. The value of work – in- progress inventory includes the cost of purchased materials, production  labour, and production related overhead required to bring them to their actual steps of completion when the inventory is evaluated.


Finished Goods: these are complete products or service that are available for immediate sale to customers. The value of finished goods inventory includes the cost of purchased materials, production, labour, and overhead related to production


1.2       Statement of Problem 

In Nigeria, most companies especially those in manufacturing sector find it difficult, if not possible, to achieve their set objectives. For many firms, inventory difficulties can or do contribute to business failures.

Inventory investment is often faced with two danger levels, that is the danger of inadequate stock which may lead to business stoppage or disruption of production, loss of sales which may in turn lead to loss  of carriage which  ties up capital that might be available for more productive pursuits and it also faced with obsolescence risks. Hence, the optimum level of inventory investment lies between those two danger levels.


1.3       Research Questions and/ or Hypotheses

  • Does inventory control play a vital role in a manufacturing company?
  • Has lack of proper inventory control disrupted production in the organization?
  • Does excessive high level of stock held down the capital of the organization?




1.4       Research Hypotheses

The following hypotheses were tested in this research work:

Ho:      Cadbury Nigeria Plc does not make use of economics order quantity (EOQ)

optimization model to evaluate its inventory

Hi:       Cadbury Nigeria Plc makes use of economic order quality (EOQ) optimization model to evaluate its inventory.


1.5       Objective of the Study

The ability of any business to achieve its objectives efficiently and effectively is a function of its ability to control its inventory. This study is therefore, carried out at Cadbury Nigeria Plc, Lagos with a view to:

  • (i) To determining the optimality in the company’s inventory policies
  • (ii) To balancing the conflicting economies of not wanting to hold too much or too little stock
  • (iii) To describing the inventory management procedure currently in use in Cadbury Nigeria Plc, Lagos.


1.6       Scope of the Study

The scope of the study is to consider the nature of the business of the case study, historical background and the functions of the various posts in the organization, and also to know the importance of inventory control in an organization.


1.7       Limitation of the Study

The researcher faced diversity of problems in carrying out this research work including time constraint resulting from the fact that the work was combined with other academic functions, non availability and un-eagerness of respondents to express their frank and unbiased opinions on issues relating to the company, non availability of up-to-date textbooks, instructional materials covering the subject of the study and financial cost of gathering the information from the related point of the study is very hard to meet.


1.8       Significance of the Study

The accomplishment of the task of this project will significantly affect the company (the case study) positively considering the enormous gain derivable from efficient and effective inventory control. The study therefore, intends to achieve the following:

  • (i) Effective improvement in storage facilities of the organization and the working condition of the inventory control staff.
  • (ii) Total eradication of mis-management in the store
  • (iii) Offer suggestion on planning on effective inventory management
  • (iv) Improvement on operational efficiency


  • Definition of Terms
  • Lead Time: The period of time expressed in days, weeks, month, etc between ordering either externally or internally and replenishment when the goods are available for use
  • Physical Stock: The number of items physically in stock at a given time.
  • Minimum Stock Level: This is also known as buffer stock. It is a stock allowance to cover errors on forecasting the lead time on the demand during the lead time.
  • Maximum Stock Level: A stock level selected as the maximum desirable which is used as an indicator to show when stock have risen too high.
  • Re – order Level: A level of stock at which a further replenishment order should be placed. The re – order level is dependent upon the lead line and the demand during the lead time.
  • Re – order Quantity: The quantity of the replenishment. In some types of inventory control system this is the economics order quantity (EOQ), but in some system a different value is used.
  • Inventory Cycle: The party of inventory graph which regularly repeats itself in a cycle form.
  • Length of Cycle: Is the length of time over which an inventory cycle expands.

Economics Order Quantity (EOQ): This is a calculated ordering quantity which minimizes the balance of cost between inventory holding costs and re – order cost.



The purpose of the research work into look into marketing in public organized with a particular reference to Tuns Farm Company Osogbo, the main aim of this study is to find way in which marketing can be used buy and selling as a control device in state owned establishment. During the process of this work, the researcher realized that the marketing unit and bursary department of works hand in hand by marketing the receipt and cheques issued by the bursary department to reconcile with the ledger prepared by this department. Finally, this research work comment that the marketing and should ensure adequate in internal control and effective means of marketing thorough verification and validation of institution assets and requiring the asset against fraud. Also by organizing symposium or workers to its staff and ensure well farism of the staff e.t.c. all these incentives will finally makes devices used in marketing to be effectives in any state owned tertiary institutions.





















Title page                                                                                                                    i

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of Content                                                                                                         vi



  • Background of the study 1
  • Statement of the Study 1
  • Objective of the Study 2
  • Research Question 2
  • Hypothesis of the study 2
  • Scope of Study 3
  • Limitation of Study 3
  • Significance of the study 3
  • Definition of Term 3
  • Organization Chart of the case study 4
  • Historical Background of the case study 4



2.1       Characteristic of Small Scale Business                                                           8

2.2       Role in the Industrial Development of the Country                                       8

2.3       Problem of Small scale Industrial                                                                   9



3.1       Research Design                                                                                             11

3.2       Area of the study                                                                                            11

3.3       Population of the study                                                                                  11

3.4       Sample and sampling Procedure                                                                     11

3.5       Instrument data collection                                                                              12

3.6       Method of Data collection                                                                              12

3.7       Method of Data analysis                                                                                 12



4.1       Presentation of Data                                                                                       14

4.2       Data Analysis                                                                                                  15

4.3       Testing of Hypothesis                                                                                     17



5.1       Summary                                                                                                         20

5.2       Conclusion                                                                                                      20

5.3       Recommendation                                                                                            21

References                                                                                                      25

Appendix                                                                                                        26




1.1     Background of the Study

The perhaps on the development strategy has enjoyed as much prominence in Nigeria development plans as the small scale industrial (SSIS).

The further relies on the small scale business operation or promoters in the economic development of the nation by knowing the significance of small scale business economy and industry take off in Nigeria. In Nigeria all the tiers of government, the federal, the state and the local government have been making tremendous efforts towards stimulating the modernization.

Establishment growth as development of small scale business in different parts of the nation.

In a similar vein government through Africa especially Nigeria are turning their attention to small scale enterprises right from the attainment of independence in 1960.

In the Nigeria economic, the small scale enterprises are the most common. Form the business the aim of any economy (either industrialized or not) depends largely or how well managed. The small scale industrial are for example: If we take a look at the standard practices of small scale Industries in economically development countries like United Kingdom or United State of America.

General in the small business industry capital is locally sourced through some that financial institutions in West African and in Nigeria in particular depending on the variability of their progress


  • Statement of the Problem

The small and Medium enterprise and mostly managed by owners and relation. The project is set put principally to determine the role of mall scale business in an industrial development in Nigeria by small scale industrialist.

Also to find out how they use locally made materials to produce their product it is general necessary to find out this raw materials are being utilized in industrial development and as well, able role of the government in solving the problem of small scale business or operate.

  • Objective of the Study

The major objectives of the research work is to examine the role of small scale enterprise

  1. To examine the number of employee in Nigeria Industries
  2. To examine the number of trainee under its apprenticeship
  3. To encourage student to go in to small scale industries upon graduation
  4. To encourage Nigeria’s to be their own boss and in the same way help eradicate poverty in Nigeria


  • Research Question

The following research questions are designed to direct the research on the solution of the research problem.

  1. What is the initial operation of he company before the government reimburse the
  2. Do you feel that small scale business contribution to the industrial development


  • Hypothesis of the Study

An hypothesis is a tentative statement, it can be defined, as a set of assumption provisionally accepted as a basis of reading experiment or investigation.

Hypothesis is also a declarative statement subject to inferential testing it is a proposition or condition which state what we are looking for in other word, it is a conjectural statement of relationship between variable.



In this study the hypothesis to be tested are:

Ho: There is a relationship between the role of Small scale business in Nigeria Industrial development has not been a major concern to Nigeria government.

Hi: There is no relationship between the role of small scale business in Nigeria Industrial development has been a major concern to Nigeria government.

However, accept or reject of the hypothesis will be based on the sample. Being charm from the interview and questionnaire of Tune farm Industry, Coupled with result obtained from the test of Hypothesis


  • Scope of the Study

The study covers a while range of research and finding from a sole. Owner of small business (joint owner inclusive) can finance his or their business.


  • Limitation of the Study

The researches also examine the various issues relating the tunes farm industry, the concern played in the industrial development of the nation.

However, during the courses of Carrying out this project work the problem encounter. Include high cost of transportation reduce also the vital Information are the owner of the Tuns Farm Industry.


  • Significance of the Study

The significance of the study is to further educate prospective entrepreneur on the nature of small scale business in Nigeria Industrial development.

It is generally ese4ntial to know the problem facing them and effort being made to tackle them and their achievement so far. This research also analysis and produces necessary information and that source of finance for small scale business. Also the recommendation if adopted will of useful for the both the promotes and the economy.


  • Definition of Terms

Capital: The amount of personnel saving introduced into a business to short the business.

Management: It is the process of getting things done through people. It may be as well means the process that involves the guidance of direction of a group of people toward organizational goal.

Motivation: This is the act of encourage workers to perform to the expectation by giving them incentives.

Enterprises: This is a bold or difficult undertaking force of character launching out the business.




This is an explosive study aimed at examining different form of motivation took employed by the organization and job satisfaction derived from the motivation Premier Hotel Ibadan worker were studies. The questionnaire methods of collecting data administering one hundred motivations as well as improving workers efficiently in Hotel. These suggestions include, upward review of workers salaries a more affection promotion system, respect a workers opinion, for treatment and good leadership. This study is divided into five chapters, chapter one deals with introduction, chapter two deals with the literature review, chapter three focuses on the research were analysis and statistical test applied to test the hypothesis generated the whole study is summarized and recommendation made there after in chapter five.



Title Page                                                                                                                    i

Approval Page                                                                                                                        ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of Contents                                                                                                       vi



  • Background of the Study 1-2
  • Statement of the Problem 3
  • Research Question and Hypothesis 4
  • Purpose of the Study 4
  • The Scope of Delimitation of the Study 4
  • Limitation of the Study 4
  • The Significance of the Study 4
  • Definition of Terms.                                                                         5



Review of Related  Literature

2.1       Introduction                                                                                                    6-10

2.2       Nature of Motivation                                                                                      10

2.3       Reason for Motivation and Job Satisfaction                                                  12

2.4       Problem Associated with Motivation and Job Satisfaction                            13



Research Methodology                                                                                               14

3.1       Research Design                                                                                             14

3.2       Area of Study                                                                                                 14

3.3       Population of the Study                                                                                  14

3.4       Sample and Sampling Procedure                                                                    14

3.5       Instrument from Data Collection                                                                    15

3.6       Method of Data Collection                                                                             15

3.7       Method of Data Analysis                                                                               16



4.1       Data Presentation and Analysis                                                                      17-21

4.2       Test of Hypothesis                                                                                          21-22



Summary of Findings, Recommendation & Conclusion                                            23

5.1       Summary                                                                                                         23

5.2       Conclusion                                                                                                      23

5.3       Recommendation                                                                                            24

References                                                                                                      25





Since the industrial revolution of 17th and 18th centuries in France and Europe respectively. Many organization have been striving to meet up with the challenges of effective utilization of human resources in order to achieve the desire objectives of the organizations.

Researchers have shown that to achieve the set objectives and goals more emphasis has to be laid on human resources personal, hence motivation of personnel is highly needed. The objective of an organization must be achieved no matter what it will take the management.

To accomplish it, it has been discovered that workers satisfaction and motivation leads to workers giving their best thereby heading to maximum production. Motivation of workers has been a major concern to many organizations as a result of economic hardship making many workers lament over inability to cope with challenging economic challenges thereby making them to life blood normal living conditions. A workers shoes needs cannot be met his employer i.e. Organization tends not to be committed to such work. In order to ensure that there is commitment and efficiency for work, organization should employ different types of motivation tools. According to Atkinson (1961:12) ‘Motivation has to do with the analysis of various factors which include and security were studies leading to the introduction of positive incentive like extra money for the work, promotional incentives as well as negatives sanction like reduction in pay and termination of appointment.

Motivation can also be conventionalized as the condition responsible for variation in intensity; quality and direction of on given behavior, the condition are both extrinsic and intrinsic to the individual. While motivation refers to the drive and effort to satisfy a want, satisfaction refers to the drive and effort to satisfy a want, satisfaction refers to the contentment experience when a want is satisfied. The amount and benefits a person fells he should receive has been fund to strongly influenced by what he perceived other like himself and receiving.

People seem to balance what they are putting into a work situation against what they are getting out of and then compare their balance with the others. If  this comparison reveals that their outcomes are inequitable with those of other people, then dissatisfaction results.

It is important to not that not all motivational tools employed by an organization bring job satisfaction on the part of the workers have the same orientation values and perception of life. Hotel, which ha many units department like “Lagos Airport”, Hotel Limited are faced with the problem of identifying the appropriate motivational tools for all the categories of workers. For instance, Lagos Airport Hotel has the following department.

  1. House keeping
  2. Food and Beverages
  3. Front office
  4. Maintenance
  5. Personnel
  6. Administrative
  7. Marketing
  8. Accounting

These department are sub-divided into section such as:

  1. Housing Keeping Department
  2. House keeping central office section
  3. Laundry section
  4. Laundry shop section
  5. Flour shop section
  6. Swimming pool section
  7. Horticulture section
  8. Food and Beverage Department
  9. Bar section
  10. Kitchen section
  11. Restaurant section
  12. Banquet section
  13. Bakers shop
  14. Front Office Department
  15. Reception
  16. Porters carbine
  17. Commissioners
  18. Telephone
  19. Duty Test
  20. Maintenance Department
  21. Plumbing
  22. Wielding
  23. Carpentry
  24. Mason (Bricklayer)
  25. Electrical/Electronic
  26. Accounting Department
  27. Accounting control
  28. Wages
  29. Ledger
  30. Computer Room
  31. Billing
  32. Purchasing
  33. Store control

The above section among other makes it difficult a bit for the personnel manager to successfully introduce motivational tools in the various departments. For workers to give their best and also to realize organizational goals and objectives. It is important for management to look into the needs of the workers and ways of satisfying them, factors such as wages, supervision, job security, condition of service, welfare and the like are various degrees of satisfaction which have and related to the job. Most times as seen an individual have been recruited, trained and assigned duties, it is believed by management that there is no need to create condition that will facilitate a high level of performance and also make it possible for individual to erect same of heir most important needs hence the situation arises job dissatisfaction which is unfavourable to the organization.\



Many Nigeria organizations both private and public are currently faced with individual tools that would have approved in these organizations. The strike phenomenon portrays organization bed consequently affecting their public relation and productivity.



In order for this study to be properly guided the following hypothesis are formulated in and hypothesis form.


Ho: There is no significant relationship between workers motivation and jobs satisfaction in Nigeria Business Organization.

Hi: There is significant relationship between workers motivation and jobs satisfaction in Nigeria Business Organization.



This study is aimed at identification of the motivation tools employed by Nigeria organization, examine the relationship between motivation and jobs satisfaction. Finally, suggesting ways of maintaining jobs satisfaction among workers through motivation strategies.



This is to discover what is it that triggers motivation and sustains human behavior in jobs satisfaction of an organization this project work is focus in the workers motivation and job satisfaction of Lagos Airport Hotel Limited as one of the non-manufacturing company.



The study was faced with the problem of uncooperative attitude of the respondents and the organization itself that can be summarized as;

  1. Bureaucratic Procedure stipulated by the organization such as filling of visitor form, written permission from the administration section were time wasting.
  2. Concernment of information concerning the motivation tools employed in the organization
  3. Refused to attend to the research team by respondents and some key information.



It is of great importance to business managers in general and personal management experts in particular student of accountancy as well as business administration will also find the study useful.

THE ROLE OF BANKS IN FINANCING INTERNATIONAL TRADE A Case Study of United Bank for Africa Nigeria Plc Osogbo)


This project work has critically highlighted the compact of the Role of Banks in financing international Trade in Nigeria, the problems affecting the Role of Banks in financing international trade in Nigeria have been identified and how they can be controlled is also includes in the study and ways to solve them are inductive in the study. This study also examines the lapses and recommends some viable points that can also contribute to the image of the industry.



Title Page





Table of Content



  • Background of the Study
  • Statement of the Problem
  • Research Question
  • Hypothesis of the Study
  • The Objective of the Study
  • The Scope of the Study
  • Limitation of the Study
  • The Significance of the Study
  • Definition of Terms



  • Introduction
  • Development Bank in Nigeria Evolution
  • Structure and Organization Setup of NACB
  • Structure and Organization Setup of UBA
  • Government Role of Finance



  • Research Design
  • Area of Study
  • Population of the Study
  • Sample and Sampling Procedure
  • Instrument for Data Collection
  • Method of Data Collection
  • Method of Data Analysis



  • Data Analysis
  • Testing Hypothesis




  • Summary
  • Conclusion
  • Recommendation





1.1       Background of the Study

Banks are important facilitators of international trade. The United Nations Development programme and united nations conference on trade and development described international financial system as the rules institutions, policies and practices concerned with the adjustment and financing of external international liquidity and the determination of exchange rates.

The provision of finance is very important for economic growth of every nation, also it is equally imperative for the advancement of international economic growth. Thus, to understand the world wide credit systems and sources of international finance, it is highly essential to examine the activities of the major international and regional development banks and financial institutions.

The evolution, structure, management and functions of international banks and financial institutions as well as the framework of laws regulations and practices which control the flow of financial resources within the international and Nigeria economics are adequately covered in the creation and distribution of international liquidity is also examined.

To solve these problems, financial institution which could be defined as institutions which usually relied upon. The existence of banks has been a big boost to business activities the world over. They help to oil the wheel of business activities by making money which is the essential ingredient of business available.


The English banking system of which Nigeria is practicing originated from Britain through the activities of the goldsmith. Bank and money therefore have common origin and ancestor goldsmith. It was deliberately designed as a bank, but through the processes of trial and error, bank emerged. As the name indicates, the goldsmith deals with gold which is a very valuable and rare commodity. Because of the costly nature of gold, the goldsmith had a place called his strong-room in which gold, other valuable commodities and documents were kept for safe custody. With his strong-room, the goldsmith started receiving valuable commodities from people for safe keeping. Receipts were issued to other who deposited their valuable as an evidence, and they paid the goldsmith for his services. As time went on, people started using the receipt issued by the goldsmith discovered that some people who deposited valuable with him do not come for there in a short period, he started enticing other people inform at interest to deposit their gold and other valuables with him. He also started lending these forms of money out to other people on short term basis on interest rate. This exercise continued until it was modernized and named Bank. This is exactly how the English banking system originated. The goldsmith in London therefore became the First bankers. This banking system was copied in Nigeria other West African countries like Ghana, Gambia and Sierra-Leone when they were British colonies.

Many scholars buttressed the role for financial institutions in economic development, examine and considering specific theories concepts relating to financial institutions and economic development.


1.2       Statement of the Problem

The problem of this research study is examining the role of banks in financing international trade the evolution structure, management and functions of international banks and financial institutions as well as the framework of laws regulations and practices which control the flow of financial resources with in the international and Nigerian economics are adequately covered in the creation and distribution of international liquidity is also examined. Therefore, reference will be made to the banking industry and a selection of a particular bank, as a case study. The United Bank for Africa Nigeria plc.


1.3       Research Question

With reference to the topic under consideration, there is a need to develop certain researchable question which will throw more light on the necessary of embarking on the research to work. There is a belief that the answer provide to the research question will be sufficient for the work.

  1. Is domestic mobilization in financial resources is essential for capital formation and accelerated growth?
  2. Does an efficient allocation of available domestic resources is of vital importance in the development process?
  3. Does the role of developments banks involve financing and promoting economic development
  4. Is financial institutions after an efficient institution mechanism through which resources can be mobilized and directed from less essential uses to more productive investment?
  5. Does the role of banks has an effect on the economic development of a nation?


1.4       Hypotheses of the Study

Ho:      There is no significant different between the roles of banks in financing and international trade

Ho:      There is a significant difference between the role of banks in financing and international trade

Ho:      The domestic mobilization in financing resources is not essential for capital formation and accelerated growth.

Hi:       The domestic mobilization in financial resources is essential for capital formation and accelerated growth.

Ho:      There is no significant difference between the role of development banks involve financing and promoting economic development.

Hi:       There is significant difference between the role of development banks involve financing and promoting economic development.


1.5       Objectives of the Study

The role of development banks involve financing and promoting economic development. The United Bank of Africa Plc (U.B.A) is expected to perform financial assistance to limited liability companies registered in Nigeria and with Nigeria majority ownership.

Basically, the scope of the bank lending or equity participation is restricted to manufacturing non petroleum, mining activities and tourism. This means that agriculture, trade and transportation outside the financing horizon of the bank. Efforts will be made in the study to highlight some of the problem faced by development banks in the performance of their operations and to the end possible solutions will be suggested. In a concise form, the objective of this study can be stated as.

  • To give a comparative analysis of U.B.A performances in industrial sectors.
  • To assess the extent to which development banks in Nigeria have been able to adhere to their set objectives
  • To proffer solutions and policy recommendation aimed at solving problems


1.6       The Scope of the Study

Though there are many development financial institutions existing to the economy like Ondo State Investment Holding Company Limited, Oyo State Industrial Development and Credit Cooperation, Northern Nigeria Investment Limited etc. the scope of this study will be limited to one development bank in Nigeria, United Bank for Africa Plc.


The United Bank of Africa Plc was established on 22nd January, 1964 following the reconstruction of the investment company of Nigeria limited (ICON) which was incorporated in 1959 as industrial development finance company. UBA was set up primarily to accelerate Nigeria’s industrialization.

The bank was set up with active support of the intercontinental finance cooperated (IFC which is the private sector arm of the world bank?

At its inception UBA ordinary share capital was # 4 million. The central bank held 26%, foreign shareholders 49% and Nigeria 2%. The authorized share capital was increased to #40 million in 1977 and 100 million at the end of 1972 and the consequent take over of holding shares in banking institutions by federal government the ownership structure of UBA has change drastically to ministry of finance 59% central bank of Nigeria (CBN) 40% other interest 1%.

As at 1978 the authorized share capital of the bank was #1.5 million in 1996 and still stand at the figure today in response to new challenges the banks operations have been reorganized into their main broad sectors.

  1. Chemical
  2. Agro-Allied
  • Mining Engineering and Construction

Presently, the bank has five subsidiaries companies namely

  • Icon limited
  • Leasing company of Nigeria limited
  • UBA trustees limited
  • UBA consulting and finance limited
  • UBA insurance brokers


The UBA is set out to adhere the following objectives:

  1. The bank is expected to evaluate proposals on commercial principle but stand ready to finance enterprises which cannot get fund through regular commercial channels either because such channel do not exist or because the risk are deem unattractive for private financing.
  2. The UBA was required to create attractive opportunities for investment in Nigeria industries and provides outlets production investment of Nigeria
  3. To work closely with the regional. Although it will be concerned primarily with medium and large scale enterprises. It was expected to provide some facilities for smaller scale industries through other expanded credit institutions.
  4. Finally, in the banks guiding principle, it was requested to provide finance to those projects, which make a significant contribution to Nigeria economic development.


1.7       Limitation of the Study

The desire to emerge from an almost static subsistence economy and self reliance industrialized economy has always occupied the attention of many less developing countries since their independence. In view of this, they have  great emphasis on industrialization.

In Nigeria, there are three such development banks, the Nigeria bank for commerce and industry (NBCI), United Bank of Africa Plc (UBA) and the Nigeria Agricultural and Co-operative Bank (NACB)

The view of the efforts to transform the economy into a self sustaining one and proffer a lasting solution to the chronic problems of investable capital solve the problem to the chronic problem of unemployment by encouraging small and medium scale enterprises as well as obtaining viable industrial development the federal government decided to set up special finance institution designated development banks. These banks are provide long term capital in various sector of the economy, which the commercial banks have found difficult.

This study therefore, is limited to analyze the performance of only industrial sector which is finance by United Bank of Africa Plc (UBA) in a view to identifying its roles in performance of their operations.


1.8       Significance of the Study

This research work will elite the role of banks in financing international trade. In other words, the provision of finance is very important for economic growth of every nation, also it is equally imperative for the advancement of international economic growth. Thus to understand the world wide credit systems and sources of international finance, it is highly essential to examine the activities of the major international and regional development banks and financial institutions. The role of development banks involve financing and promoting economic development. The United Bank of Africa Plc (UBA) is expected to perform financial assistance to limited liability companies registered in Nigeria and with Nigeria majority ownership.



            This paper is descriptive in nature and it examines the nature, causes affect and remedy for bank fraud in Nigerian. In recent years fraud in Nigerian banking sector seemed to have assumed a frightening dimension and to a large extent, the confidence the general public reposes in it, is put in jeopardy the ability of banks to promote growth and development in any economy is a function of the extent to which financial transaction are carried out with trust, confidence and least risk.

These no doubt require a safe and sound banking practice which many of the banks in Nigerian today have despised to their own peril.



Title Page





Table of Content


1.0       Introduction

1.1       Background of the Study

1.2       Statement of the Problem

1.3       Research Question

1.4       Hypothesis of the Study

1.5       The Objective of the Study

1.6       The Scope of the Study

1.7       Limitation of the Study

1.8       The Significant of the Study

1.9       Definition of Terms.


2.0       Literature Review

2.1       Introduction

2.2       Why People Commit Fraud

2.3       Insider or Employee Fraud

2.4       Outsider Fraud

2.5       Advance Fee Fraud

2.6       Cheque Bitting

2.7       Forge Cheque

2.8       Account Opening Fraud

2.9       Management Fraud

2.10     Money Transfer Fraud



3.0       Research Methodology

3.1       Research Design

3.2       Area of the Study

3.3       population of the Study

3.4       sample and Sample Procedure

3.5       Instrument for Data Collection

3.6       Method of Data Collection

3.7       Method of Data Analysis


  • Data Presentation
  • Data Analysis
  • Testing of Hypothesis


  • Summary
  • Conclusion
  • Recommendation















1.0       Introduction

1.1       Background of the Study

Among the Nigeria industrial sector today one can say that the banking industry is the most unsible and arouse the most public interest. The importance of the banking sector in any economy stems forms its roles of financial intermediation, provision of efficient payment system and facilitation of the implementation of monetary policies. In intermediation, banks mobilize saving from the surplus units of the economy and channel these funds to the deficit unit, particularly private business enterprises for the purpose of expanding their productive capacity.

According to Olismbu (1991:20) the banking sector as became of the most critical sector and commanding heights of the economy with wide implication on the level and direction of economy growth and transformation and on such sensitive issue as the rate of unemployment and inflation which directly affect the lives of our people. Today, the very integrity and survivability of these laudable functions of Nigerian banks have been called into question in view of incessant frauds and accounting scandals.

According to Oseni (2006:16) “the incessant fraud in the banking industry are getting to a level at which many stakeholders in the industry are loosing their trust and confidence in the industry”.

Corroborating the views of Oseni idolo (2010:63) stressed that the spate of fraud in Nigerian banking sector has lately become a source of embarrassment to the nation as apparent in the seeming attempts of the law enforcement agencies to successful track down the culprits.


1.2       Statement of The Problem

The phenomenon called fraud can be explain under the following causes: There are many reasons for the upsurge and increase of frauds in the bank industry.

Most of the reported cases are staff aided those arise as a result of the level of exposure or ignorance on the part of staff, for instance fraud normally scale through where the staff are they fail to acquit themselves with the existing guidance which would have prevent them against any attempted fraud.

  1. i) Frequent occurrence of fraud ultimate the attention of the management and lead to increase in the running cost, time and energy that prevent fraud. Funds that would also have gone into service improvement activities would be spent in place of fraud control procedures and system.
  2. ii) The effect of fraud in the banking industry is of great importance, most distress bank has been located on enough to absorb the untimely stock. They therefore, find it difficult to meet the demand of their customers.

iii) Subsequent demand without the ability to meet up later exposed the bank and bring about mass with drawal due to lack of confidence in the banking sector.

  1. iv) Customers lack of confidence in bank for not getting their money when needed they therefore preferred to contribute to a cooperative society and investing in securities such as shares debentures and bank in some cases staff are arrested for an attempt to commit fraud (either successful or not) it is worthy of notice that the innocent do suffer for interrogation. The security officers punish them unnecessarily in an attempt to get the nook of the occurrence


1.3       Research Question

      Hypothesis is an idea or suggestion that is put for words in other to start reasoning based to tentative identification of the problem stated

This study will provides answer to the following research question

  • Do fraudulent activities exist in banks
  • What are the causes of fraud in banks
  • What effect did fraudulent activities have on banking industry and economy as a whole


1.4       Hypothesis of The Study

Hypothesis is used in finding solution to the problem the hypothesis established in this study goes thus

  1. Ho: – There is no significant relationship between control and fraud in the banking industry.
  2. Hi:- There is significant relationship between control  and fraud in the banking industry


1.5       Objective of The Study

There is need to eradicate fraud or reducing it to the bearest minimum. These can be done by analyzing. The causes effect and eventually providing the solution to them

The purpose of the study can be summarized as follows:

  • Training of staffs
  • Keeping of adequate proper records in order as not to create room for manipulation of accounting entries or figures
  • Advising employers to remunerate their staff in line with dictation of economy
  • Staff earn within the range of what their contemporary earn in the same industry.


1.6       The Scope of The Study

The scope of these studies was focused on the banking industry in Nigeria economy but the case study was in united bank for African (U.B.A)

Also it is seen as being able to prevent the occurrence of fraud in the banking industry.


1.7       Limitation of The Study

            Fraud does not only exist in the banking industry alone but also exist in the manufacturing companies heath and in all other  sectors.

Does to time constraint through analysis of a complete phenomenon it has been decided to limits the  research project to the banking industries.


1.8       The Significant of The Study

This research study is of immense important  to the back management who have seen the issue of frauds as an insurmountable problem environment may be took into consideration the highlighted causes and solution in policy formation and implementation might consequently have a positive effect on the economy


1.9       Definition of Terms

For the purpose of meaningful and accurate study relevant hypothesis have developed

  • Bank:- These are formal financial institution established for the purpose of creating deposit in an economy
  • Fraud: – These are the strategies by which the right or interest of another injured. It is also the act of doing things in a way that is net honest
  • Fraudster:- This is the person or a staff of the bank customer or any member of the pubic who fully initiate a fraud or in collision with other person with purpose of deriving benefit to the detriment of bank
  • Customer:- A customer is a person whose money or other valuable les been accepted by the bank on promise i.e the bank under taken to honor either instrument up to amount standing to his credit irrespective of whether the transaction is at short or long duration
  • Forgery:- This is making a fraudulent copy of cheque draft i.e (forged cheque  with signature)
  • Detection:- Those are the ways in which intentional  mistakes or forgery that has been committed are know

Lending: – This an act of giving something to another person to use for a period of a time on an agreement that it will be returned later.




Before the emergence of modern banking system, banking operation was manually done which lead to a slow down in settlement of transactions. This manual system involves posting transactions from one ledger to another which human handles. Figures or counting of money which should be done through computers or electronic machine were computed and counted manually which were not 100% accurate thereby resulting to human errors. Most bank then use only one computer in carrying out transactions which ameliorate the sluggish nature of banking transaction.

Nigeria do not embrace electronic banking early compared to developed countries. Nigeria adopted electronic banking system in the early 2000s.  During the introduction of electronic banking system, the use of raw cash was said to have bred corruption through the “cash and carry syndrome” usually linked with the swift movement of Ghana-must go” bags by some politicians. Such bags as some analyst say, are a major source of corrupt practices as dubious persons seeks to bribe their way to avoid been checked in some sensitive areas or places in a corrupt society.           Since electronic banking started in all Nigeria banks, it has been a woe for civil servants; checks show that some staff in establishments such as the national boundary commission for instance, are yet to receive their salaries for the previous months as efforts to electrically transfer salaries into their account have failed according to Ibrahim, D. (2009).

“One bank will tell you it has transferred your salaries but the supposed recipient bank will tell you it has not received anything leaving you even more confused”, says John, I. (2009). Olekah, J. (2009) while acknowledging the initial hiccups that dogged the system, advises stakeholders against being discouraged as such “teething problems” are normal.

James, A. (2009) a banker reported to vanguard annual report that “we should not destroy electronic-banking by looking at the negative aspects, we must strive towards perfecting it”. James, A. (2009) also says that the volume of data generated by the Government ministry Agencies is much making it a bit difficult for banks to cope, Mathew S. (2009) a worker says in his report to vanguard annual report on banks and cards that government should have done its home work “very well” before introducing the system, “they plugged us into a system they were not prepared for and the result is untold hardship visited on innocent people”.

At this juncture, is good to know what e-banking is all about.

According to Anyawaokoro, M. (1999). Electronic banking is defined as the application of computer technology to banking especially the payment (deposit transfer) aspects of banking. He also defined electronic banking as a system of banking with an electronic communication network which permits on-line processing of the same day credit and debit transfers of funds between member institutions of a clearing system.

According to Clive, W. (2007) in his Academic dictionary of banking, electronic banking is defined as a form of banking in which funds are transferred through an exchange of electronic signals between financial institutions, rather than an exchange of cash, cheques or other negotiable instruments.

According to Omotayo, G. (2007) defines electronic banking as a system in which funds are moved between different accounts using computerized on line/real time systems without the use of written cheques.

According to Edit, O. (2008) in international Journal of investment and finance, electronic banking is defined as a system by which transactions are settled electronically with the use of electronic gadgets such as ATMs, POS terminals, GSM phones, and V-cards e.t.c. handled by e-holders, bank customers, and stake holders.



            As earlier pointed out, there is delay in payment of cheques which lead to the adoption of electronic banking system. Adoption of electronic banking which suppose to ease banking transactions rather resulted to woes to customer. Most people complain of time wasted in banks. This occurs when there is power failure in banks resulting to slow down in operation.

Another problem that emerged was that banks do not have information backup to fall back on should there be any computer break down.

In investing in electronic banking, the country will need a large amount of financial resources in computer technology, obviously, the resource is in short supply in Nigeria, couple with high level of poverty. For an efficient functioning of electronic payment system, there must be availability of infrastructural facilities such as electricity and telecommunication network, however, power supply fluctuates and there is still constant failure links in networks.

Since early 2000s banks have been developing and introducing payment cards for their customers as well as deploy ATM’s cards. Usage was however low due to lack of interconnectivity i.e. switching platform to interconnect the ATM’s for card holders.


This research work intends to assess the extent of electronic payment in banking activities as well as identify the various types of electronic banking.

The researcher will also evaluate the major problems associated with the development of electronic banking system in Nigeria as well as evaluate possible solutions to these problems.

The effect of electronic banking on profitability of banks will also be assessed. There are different types of electronic banking used in Nigeria banks; the researcher will like to evaluate the impact of these e-payment systems on banking industry and also assess the impact of electronic banking in Nigeria economy.


In order to get information from respondents the following questions where formulated:

What are the various types of electronic payment and the extent of electronic payment in banking activities?

In what extent can e-banking improve or enhance banking services?

What are the major problems associated with the development of electronic banking system in Nigerian?

What are the solutions to the problems associated with the development of e-banking?

What extent has e-payment affected banking activities?

The research shall attempt to find answers to these questions in the next chapter.



Electronic banking in our economy today is a welcome development and also its impacts in the society are over-whelming, so this research is significant in so many ways.

It will expose the strength and weakness of electronic banking.

It will motivate banks and other economic agents to computerize their services.

Knowledge in the area of electronic banking will be advanced.

Apart from contributing to the knowledge of electronic banking, it forms a reference for future research in this area.

1.6       SCOPE OF STUDY

This research is on economic implication of electronic banking in Nigeria banks and also the various forms of payment and electronic systems used by banks. The researcher will base this work on the entire deposit money banks in Nigeria but to Diamond Bank in particular.



Time is a major factor to the researcher as research of this kind requires enough time in gathering of data, but it was not given to carryout the research, distribution, collection and analysis of questionnaire.

Also the school system has made it difficult for student to go out in search for information by not granting exeat for student. Some banks hud information from students who desires such information in other to maintain the banks secrecy thereby making it difficult for students to gather information for their research.

Finally, finance was infact the most limited factor, in spite of this the researcher have to travel out to the sampled organization to interview some of the managers and supervisors.



This research work is carried out on the financial statement Analysis as a measure of management performance and efficiency. The project is divided into five chapters. Chapter one focuses on introduction of the topic. The introduction consist of background of the study, statement of the problem, objectives of the study, significance of the study, statement of hypothesis, scope of the study, and limitation of the study. Chapter two focuses on literature review and the literature review consist of introduction the concept of financial ratio, the effectiveness of financial ratio and the tools: financial stability and strength ration, limitation of financial ratio, analysis and financial stability and strength ratio limitation of financial ratio, analysis and financial stability and strength ratio limitation of financial ratio, analysis and financial performance assessment and ratio as a system. Chapter three focuses on the research methodology, instrument used in collecting data, sampling procedure area of study, techniques used in analyzing data and formulation of hypothesis. Chapter four consists and data analysis computation of ratio analysis and testing of hypothesis. Chapter five which is the last chapter will consists of summary, conclusion and recommendation. 



Title page                                                                                                                     i

Certification                                                                                                                 ii

Dedication                                                                                                                   iii

Acknowledgement                                                                                                       iv

Abstract                                                                                                                       v

Table of contents                                                                                                         vi


Introduction                                                                                                              1

  • Background of the Study 1
  • Statement of the problem 2
  • Research Question 2
  • Hypothesis 2
  • Objectives of the study 2
  • Scope of the study 3
  • Limitation of the study 3
  • Significance of the Study 4
  • Definition of Terms 4
  • Historical Background of the Study 4



Introduction                                                                                                                 7

2.1       Nature of Financial Statement Analysis                                                           7

2.2       The Principal Tools of Analysis                                                                       7

2.3       Natures and Purpose of Financial Ratios                                                         9

2.4       Uses of Financial Statement Analysis                                                              9

2.5       Classification of Financial Ratio Analysis                                                       10

2.6       Profitability Ratio                                                                                            12

2.7       Strength of Financial Ratios                                                                             16

2.8       Weakness of Ratio Analysis                                                                            17


Introduction                                                                                                                 18

3.1       Research Design                                                                                              18

3.2       Area of Study                                                                                                  18

3.3       Population of the Study                                                                                   18

3.4       Sample and Sampling Technique                                                                     19

3.5       Instrument for Data Collection                                                                        19

3.6       Method of Data Collection                                                                              19

3.7       Method of Data Analysis                                                                                 20


Data Presentation and Analysis                                                                                    21

4.1       Introduction                                                                                                     21

4.2       Data Analysis                                                                                                  21


Summary, Conclusion and Recommendation                                                              31

5.1       Summary                                                                                                         31

5.2       Conclusion                                                                                                      31

5.3       Recommendation                                                                                             32

Questionnaires                                                                                                 34

References                                                                                                       35




1.0                                                  INTRODUCTION

The health of any organization can be properly assessed from it financial position as reflected in accounting information which summarize the performance and situation.

One of the most important performances of accounting is to report to the interested parties that take no impact in the day to day activities of the management of the business. The main purpose of financial accounting process is the preparation and publication of financial statement. A performance evaluation of companies is necessity because it helps to find out the extent to which companies have tried to increase stockholder benefits, the criteria used by banks and other credit institutes to grant loans to the companies.

In this research work, financial statement will be examined and the way it measure management performance and efficiency will be properly looked into.


  • Background of the Study

Financial performance analysis is the process of identifying the financial strengths and weakness of the form by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short term and long term forecasting and growth can be identified with the help of financial performance analysis.

The financial statement consists of:

  • The first step involves the re-organization of the entire financial data contained the financial statement.
  • The second step is the establishment of significant relationship between the individual components of balance sheet and profit and loss account.
  • Finally, the result obtained by means of application of financial tools is evaluated.
  • In brief, financial analysis the process of solution relation and evaluation of financial statement.


  • Statement of the Problem

It is well known that any organization in whose fail to measure its performance and efficiency in may likely end up or run down without achieving its function. An organization performance and efficiency and be measure through financial analysis that is (ratio analysis) in most organization or business firms, there is a problem of poor performance and how management performance and efficiency can be measured which will also show the true view of stewardship. Ratio analysis can be properly calculated in other to measure the performance and efficient of the management.


  • Research Questions

The research questions are:

  • Does financial statement analysis have a direct impact on these over all management?
  • Is it necessary to measure management performance and efficiency?
  • Does financial ratio have anything to do with management efficiency?


  • Hypothesis

Ho: Financial statement analysis does not have a significant impact on management performance and efficiency.

Hi: Financial statement analysis have a significant impact on performance and efficiency.


  • Objectives of the Study

Main purpose of financial accounting is to ascertain profit or loss and to indicate financial position of an organization. Two fundamental statements of financial accounting are income and expenditure statement and balance sheet.

The profit and loss account or income and expenditure account is prepared for a particular period to find out the profitability of the firm and balance sheet is prepared on a particular data to determine the financial position of the firm.

In light of this, the above objective of financial analysis, the purpose of the research work of two folds.

  1. To determine the efficiency of the management of a Flour Mills of Nigeria Plc. In other to accomplish this, financial ratio that measure efficiency of an organization such as gross profit margins net profit margin e.t.c will be critically examined.
  2. To determine the overall performance of the management of a Flour Mils of Nigeria Plc. And these ratios will be compared over the couple of year.



  • Scope of the Study

The area of coverage in this research work is the analysis of the annual report and account of Flour Mills of Nigeria Plc. And the analysis would focus on the profit ad loss account and the balance sheet. The method to adopt is by comparing financial ratios Great Nigeria Plc over the couple of years.


  • Limitation of the Study

Some vital information was considered therefore, the research has to rely solely on information contained I the annual report and account of the company the cost of search and time together information were part of the liquidation.

Time constraints: Since those projects is part of academic course, the school authority set aside little time for this project work hence it is a bit difficult for the researcher to have tie to get the necessary information.

Financial constraints: This can be explained in form of cost of search to get necessary information, data contained the financial statement.

Transportation problem: Due to the high level of fuel, getting transport to gather data was a problem during the period of this research.


  • Significance of the Study

The importance of this study is to make it known and more enlightment to all interested parties the usefulness of financial analysis is as a means measuring management performance and efficiency and this includes:

  • To reflect the efficiency or inefficiency of the management.
  • To wide the knowledge of management on the importance of ratios analysis.
  • To see whether actual performance in terms of sales profit e.t.c. corresponds to varies with plan and makes correction where necessary.
  • To help the management for the purpose of vital control and comparison with competitors performance.


  • Definition of Terms
  • Analysis: Is the person, which gives detail explanation, fact and figures concerning a subject.
  • Ratio Analysis: Is the management tools employed to asses the performance of a business organization
  • Long Term Creditor: This is refers to as the debenture holder. They are interested in the ability of the company to settle interest and repay the principal sum as at when due.
  • Ratio: It expresses the mathematical relationship between one quantity and another.


  • Historical Background of The Study

Flour Mills of Nigeria Plc (FMN) is one of the largest and most successful industrial conglomenites in Nigeria. The company’s activities span flour Milling, pasta Manufacturing, Fertilizer blending, bags & other packaging materials manufacturing and agricultural business.

Since its in corporation in 1960, FMN has not only survived all macro economic challenges but also grown into a market leader with popular and highly recognizable brands, an extensive, distribution net work, a turnover in excess of #90,Billion (USD 70 Million)

Strong profitability, healthy balance sheet and a highly skilled workforce.

Flour mills of Nigeria Plc has been listed on the Nigerian Stock exchange since 1978, with a board owner shop base of approximately 67,000 shareholders, it is constantly ranked amongst the top 25 companies in terms of market capitalization, in 2005 the company successfully complete a #5.24Billion (US$40.7 Million) Nights issue which was over subscribed by 8%.



The study examines the role of Finance Bank in development of rural area. Based on the literature review, the research question was formulated to guide the investigation. The research question focused on the type of credit facilities expected to be provided for the rural dweller and the communities as whole, for community development, the benefit that the small scale business like:  Farmer, Artisans, Traders and other small scale industrialist have received from Micro Finance Bank and the level of community participation that existed in the establishment of the bank to confirm that it is “Micro Finance” in nature and practice and finally the level of development that had taken place in community as a result of activities of the bank. The descriptive, analytical and critical methods used. These consist of oral interview and question grouped into different categories and having other relevant question on each category, all conducted in and outside the bank at different times. Fifty customers were randomly selected to answer and respond to the interviews and question. In addition, structure and instructive interview were conducted with the bank manager, two randomly selected senior members of staff of the bank, some members of the board of management, seven randomly selected members of the Community and two members of the board of management and artisans including two prominent trades and two artisans. It was also found out that the bank was yet to engage in a particular development project of which will be financed by it. To date, the bank has not recorded any difficult of loan default more so, the bank has simple staffs and accommodation outfit with moderate equipment. It was also found out that the community was sufficiently and actually involved in progress of the bank. Conclusively, even though the Microfinance bank is expected to be simple in nature but should not sacrifice quality and impetus for efficiently and simplicity. Hence, trained and qualified staff should be employed insufficient quantity and equipment should be made available to the bank in order for it to perform efficiently and thoroughly.



Title Page                                                                                                                   i

Certification                                                                                                              ii

Dedication                                                                                                                 iii

Acknowledgement                                                                                                   iv

Abstract                                                                                                                     v

Table of Contents                                                                                                     vi-vii



  • Introduction 1
    • Historical Background of the Study 1
    • Research Question 1-2
    • Research Objective 2
    • Research Hypothesis 2-3
    • Scope and Limitation of the Study 3
    • Significance of the Study                                                             4-5
    • Definition of Important Terms 5-6



  • Literature Review 7
    • Introduction 7
    • Historical Perspective 7-9
    • The Meaning and objective of Micro Finance Banking System 9-10
    • Function of Micro Finance Banks 10
    • Ownership of Micro finance Bank 10-11
    • The growth of Micro Finance Bank in Nigeria 11-12
    • The Impact of Microfinance Banks 12-14
    • The Role of Microfinance Bank in the Development of Community 14 -15
    • The Activities of the Community Development

Association (cda) on the Establishment of the Bank.                            15

  • The Activities of the Non-Government Organization 15-16
  • The Role of the Credit Thrift and Cooperative Societies (CTCS) 16
  • The Board of Management of the Bank Directors Memberships 16



3.0       Research Methodology

3.1       Research Design                                                                                           17

3.2       Area of the Study                                                                                         17

3.3       Population of the Study                                                                              17

3.4       Sample and Sampling Method                                                                   17

3.5       Instrument of Data Collection                                                                    17

3.6       Method of Data Collection                                                                         18

3.7       Method of Data Analysis                                                                            18



4.0       Data Analysis and Interpretation

4.1       Data Presentation and Analysis                                                                 19

4.2       Testing of Hypothesis                                                                                 21



5.0       Summary, Conclusion and Recommendation                                          24

5.1       Summary                                                                                                       24

5.2       Conclusion                                                                                                    24

5.3       Recommendation                                                                                         25                    Appendix                                                                                                       26

References                                                                                                    28




A microfinance bank is one devoted to extend small loans, referred to as micro-loans, to individuals, businesses, and organizations in low-income regions, including under-developed countries where small amounts of money can go a long way. Some financial institutions are devoted entirely to microfinance, while others are part of larger companies, such as global investment banks. Ultimately, this type of bank provides credit to those who would otherwise be unable to access this form of capital. These loans foster the development of small businesses and provide tools to entrepreneurs to follow their dreams, all in an attempt to alleviate global poverty in vulnerable regions.

In most cases, a microfinance bank is involved in social investing — that is, fostering the growth and economic development in a vulnerable region by extending loans to families, businesses, and entrepreneurs. These financial institutions still intend on generating profits from a microfinance investment, but also take an interest in the social development of a poverty-stricken place. In the process, the bank lends its financial expertise, business resources, and relationship skills to underprivileged areas in addition to financial support.


1.1       Background of the study

Before the down of Nigeria’s formal microfinance industry in the late 1990s, financial activity was enacted within the context of an extensive informal economy.  Throughout the country, traditional group networks served as proprietors of financial exchange.  They were led by traditional moneylenders who offered limited services and loans at disproportionately high interest rates.  Nevertheless, it was documented that as early as 1936, the Government of Nigeria supported such exchanges as long as cooperative groups maintained their ordinance of coupling credit with regular and compulsory savings.

It was not until the big aid push of the 1950s that the government became an intermediary, funneling large amounts of aid from foreign donors into subsidized rural credit programs.  In this case, government intervention resulted in indebtedness, high default rates and an inability to reach those at the bottom of the pyramid.  This led to the gradual emergence of private sector-led microfinance to fill the void perpetuated by exclusive financial policies and government incapacity.

Nonetheless, the Government of Nigeria tried to maintain a stronghold on financial activities by enacting a number of initiatives dedicated to rural development beginning in the 1970s.  In particular, the National Agricultural and Cooperative Bank (NACB) and the Rural Banking Scheme (RBS) were founded in order to facilitate financial access to farmers.  Subsequently, an Agricultural Credit Scheme Fund was developed to provide a financial cushion for farmers facing risk from natural disasters. Finally, the Export Financing Rediscount Facility was established to formalize and standardize rural credit markets.

Despite these measures, it became increasingly evident that such governmental policies failed to grant financial access to those most in need (i.e. the rural poor) and that the programs were largely unsustainable.  In 1989, the programs promulgated in the 1970s were abolished in favor of the establishment of The Peoples Bank, with a mandate to lend to the poor.  When this also failed, community banks were established to provide non-sophisticated loans to rural areas.  Eventually, the Central Bank of Nigeria (CBN) released the “Microfinance Policy, Regulatory Framework for Nigeria.” This policy encouraged many of the community banks to reconstitute themselves as MFIs, and led to a marked increase in non-bank institutions (i.e. microfinance NGOs).

As private sector-led development continues to expand in the wake of government oversight, the goal of granting financial access to those in needs is challenged by an exponentially growing demand for such services.  Despite the introduction of more nuanced approaches, such as public-private partnerships, many obstacles remain in the way of Nigeria’s microfinance sector to reach the bottom of the pyramid.  A highly undiversified economy and poor infrastructure contribute to a problematic environment in which to work, while a growing wealth gap strains resources and further increases demand for inclusive financial systems. Issues more specific to the microfinance industry include a lack of funding secondary to poor government support, commercialization of banks with collateral requirements and declining funding from development partners and institutions.  Practical challenges include a capacity gap, outdated management information systems (MIS), weak policy framework and an uneven distribution of MFIs countrywide.

All in all, these obstacles perpetuate an already exclusive financial system.  As MFIs undergo transformation and commercialization, the founding principle of microfinance to reach those most in need of formal financial services becomes more and more obsolete.  In Nigeria in particular, the concentration of MFIs in urban centers directly contributes to a large underserved rural population.

1.2       Statement of problem

The firms that performs below expectation is to say they do not meet the patronage level required from them considering the opportunities available for them for exploitation, Microfinance Bank is not an exception.  One may be inclined to suggest that the reason for the low performance is not in effective application of marketing principle.  Some other reasons may be non availability of the service?  Are these firms charges on the high side.  Is it as result of non coordinated effective promotional strategy.  These and many more forms the focus of this study.


1.3       Research questions

Based on the topic of the research work, the following questions were formulated to guide the study viz:

  1. What type of credit facilities were expected to be provided for the rural dwellers for Community Development.
  2. What benefits have the small farmers, artisans small-scale industries, petty traders got from the micro finance bank in question?
  3. What level of community participation is expected in the establishment of the micro finance banks?
  4. What has been the level of development and the type of development visibly seen in the community as a result of the establishment of the micro finance bank?



1.4       The Research objective

TAXATION AS A TOOLS FOR THE DEVELOPMENT OF LOCAL COMMUNITY A Case Study of Irepodun Local Government Area, Osun State


The research carryout to know the reason why the taxation as a tool suppose to take part in the development of local area, chosen as case study was established with a centralized authority, administrative machinery and judicial institutions such as the North Nigeria. The chapter one of the project will contain both introduction, statement of the problem, research question, the purpose of the study, limitation of the study, significant of the study, definition of terms and background. The chapter two will contain the literature review, form of taxes, reasons why government levy taxes, principles of taxation, duties and responsibilities of the Revenue collectors, purpose of taxation. Chapter three of the project will contain the research methodology, description of research design, population of the study, sample and sampling procedure, method of data collection. In chapter four, an attempt shall be made to analysis and interpretation of data collected from tools as a development of local community, presentation of data. Balance sheet four urban farm 31st December, 2005. Chapter five will be the summary of findings, conclusion and recommendation of this project.



Title Page                                                                                                                    i

Approval Page                                                                                                                        ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of Contents                                                                                                       vi




  • Evolution of Nigeria Taxation 1
  • Statement of the Problem 3
  • Research Question 4
  • The Purpose of the Study 4
  • The Scope or Delimitation of he Study 4
  • Limitation of the Study 4
  • The significance of the Study 5
  • Definition of Terms. 5




Literature Review

2.1       Introduction                                                                                                    6

2.2       Form of Taxes                                                                                                 7

2.3       Reason why Government Levy Taxes                                                            8

2.4       Principle of taxation                                                                                        8

2.5       Sources of Revenue which Accrues to Local Government Level.                 9

2.6       Purpose of Taxation                                                                                        9-10



Research Methodology

3.1       Description of Research Design                                                                     11

3.2       Area of Study                                                                                                 11

3.3       Population of the Study                                                                                  12

3.4       Sample and Sampling Procedure                                                                    12

3.5       Instrument for Data Collection                                                                       13

3.6       Method of Data Collection                                                                             13

3.7       Method of Data Analysis                                                                               14



Data Analysis and Interpretation

4.1       Introduction                                                                                                    15-18

4.2       Testing of Hypothesis                                                                                     18-20


Summary, Conclusion and Recommendation

5.1       Summary                                                                                                         21

5.2       Conclusion                                                                                                      21

5.3       Recommendation                                                                                            22

References                                                                                                      23




Taxation is a system of imposing a compulsory levy on all income, goods services and properties of individuals, partnership, trustees’ executors and companies by the government. This system is supported by law. Tax itself is an amount of money that you must pay to the government according to you income, property goods etc. that is used to pay for public services and perform other social responsibilities.

Therefore taxes are one of the major sources of government revenue. There major characteristics of tax are as follows:

  1. Tax is compulsory contribution imposed by the government on the people in the country. Any person who refuses to pay is liable to punishment.
  2. Tax is a contribution to defray the cost incurred by the state i.e. to provide goods, public utility services and so on.
  • Tax is not levied in return for any specific service rendered by the government to the tax payer. This is an individual cannot ask for any special benefit from the state in return for the tax paid by him.



The Nigeria nation as we know it today is an amalgamation the two major region. These regions were eventually managed by the  British for a long time before Nigeria obtained its independence.

Prior to the advent of colonial rules, there has been a particular system of direct taxation except for the fact that the system varied from one part of what is presently called Nigeria to the other. The forms that taxation took varied significantly form the normal structure of modern taxation but there was still some form of taxation.

It must be emphasized that during the pre-colonial era, taxation functioned principally on an ethnic institutions such as the Northern Nigeria, Yoruba land and Benin Kingdom where there were Emirs and Obas respectively, there was a system of Taxation. This was not so in the non-chieftaincies like the Ibos, Tivs, Bura, Ebir and Bachama areas, thee existed little or no form of organized taxation.

During this period, the form of taxation operating in the Northern Area is as follow:

  • Zakat: This was a tax levied on Moslems for charitable religions and educational purposes
  • Kurdin Kasa: This was an agricultural tax. The tax is payable for the use of landed properties for agricultural purpose. It is collected by the Dongaris who are errand boys for the Emirs.
  • Shukka: This is a form of tax paid on crops. It also goes to the Emirs.
  • Jankali: It is a cattle tax levied on livestock



In the soul, the forms which taxation took varied from place to place. For instance, in the western part of Nigeria taxation took direct forms. Taxes were paid in cash kind and obligatory personal services. They are as follows.

  • Isakole: This is a form of tax levied in land used by local communities who are normally expected to pay obeisance to the local chief. For example. If a community is considered to be superior to the other adjoining ones; they are expected to regularly pay the Isakola to the king. The form of taxation is both monetary elements. The non-monetary element involves the submission of tubers of yam, gallons of palm oil etc. sometimes, it may even involve the donation of women to the king. Failure to pay Isakola may usually attract payment of addition fines.

The principle is such that it is generally believed that the land belongs to the king. If this is true, then those who use the land for whatever purpose are expected to pay tax for such use.

  • Owo Ori: This is a form of tax which is expected to be paid by every individual. It could be paid in cash or in kind. Whereas, Isakola is expected to be paid by a community to the king, the owo ori is payable by individuals. It is a compulsory tax because any defaulter may have his properties seized by the warders of the king in change of the tax that was not paid.
  • War Return: – Where a community wages a war on another community and one defeats the other, it becomes compulsory for the vanguished to continue to pay some sorts of tax to the victorious on an annual basis. This is mostly takes paid in kind.
  • Community Effort: – This entails contribution from members of each community for specific purpose or project. For instance, in the even that a road project is to be carried out every member of the community may be required to take part in the construction work. While the women may be detailed to contribute food with which to feed the working men.



This is a different situation from the North and West. The following are some of the form taxation in Igbo Communities.

  • Egbu – Nkwn: – This is tax impose before palm oil is harvested and it is premised on the communal belief that the palm tree from which this is to be harvested belong to the whole community. Payment of the fixed sum is usually made to the village council and is expected to be used to develop the community. Note that such payment is compulsory and there can be no harvesting of palm oil without it.
  • Community Effort : – This is the contribution from members of each community for specific purpose as was also applicable for the western area. In the Eastern region. It was possible for those who are unable to physically take part in the community work to pay their levy in cash while the men are working, the women contributed their quota by preparing the food and also provide palm wine.



As we all know the taxation as a compulsory levy on all income, good and services and properties of individual, partnership, trustees, executors and companies by the governments, still some citizen and companies try to avoid to pay tax, that is they refused to give details about their income and properties to the tax authority.

Meanwhile, those who earn almost millions of naira yearly try to reduce it to thousand when it comes to the mater/issue of taxation so that they will pay tax at a low rate.

Furthermore, those of importers are not ready to pay import duties instead, they preferred to bribe custom.



  1. Why did people see taxation as a tool for the development of local community?
  2. Why taxes are compulsory levies
  • How much imposed on export goods
  1. Why people are try to avoid tax
  2. Why people are paying tax



The main purpose of this research study is to know how the taxation serves as a tool for the development of local communities and the benefit derived from the collection of taxes.



            The scope of this study is to examine the problem facing by the tax authority during the time of collection of taxes and how the problem will be overcome.

More so, the tax collectors should be equipped with sufficient working materials to take the collection easier and faster, hence, the tax payers should be properly enlightened on the importance of taxes for, to enable them to pay willingly and quickly.



It conventional for human being to face one problem or the other before achieving particular objective therefore, we met little difficulties in carrying out this write-up. The problem can be trace to lack of finance in getting to the local government area(s) for adequate information which might have enriched the study.

Another problem is that some of important personalities in the firm who may provide information needed were unable to get in torch with.

There is another problem in which some local government staffs were not given information because of their belief that the intention is to private their information so as to use it against them.