ABSTRACT
This project is seriously discussing
the function and the role of which the community bank played in Economic
development in Nigeria.
The project is specifically subdivided
in to three major chapters.
These chapters
bell the roles and subdivided the role of which they played. For instance the
chapter one discuss the introduction and background of his story which discuss
about the history of community bank and how the community banks are being
operated.
Chapter two continues with the related
review and defunction of the bank. In
this chapter the objectives of the community banks were also discussed, infact
the different between the community bank and peoples bank were also expanciated
upon.
The chapter three discusses about the
summary of findings, the conclusion and recommendations were also discussed.
All these mention are discussed in
this project and widely expanciated.
TABLE OF CONTENTS
Title
Page
Approval
Page
Dedication
Acknowledgement
Abstract
Table of
Contents
CHAPTER ONE: INTRODUCTION
1.1
General
Background to the Subject Matter
1.2
Problems
Associated with the Subject Matter
1.3
Problems that
the study will be Concerned With
1.4
The important
of studying the Area
1.5
Definition of
important Terms
1.6
Reference
CHAPTER TWO: LITERATURE REVIEW
2.1
The origin of
the Subject Area
2.2
School of
Thought Within Subject Area
2.3
The school of Thought Relevant to the Problem of Study
2.4
Different
Methods of Studying the Problem
2.5
Summary
2.6
References
CHAPTER THREE: CONCLUSION
3.1
Data
Presentation
3.2
Analysis of the
Data
3.3
Recommendation
3.4
Conclusions
3.5
References.
CHAPTER ONE
INTRODUCTION
1.1 GENERAL
BACKGROUND OF THE SUBJECT MATTER
Scriptural looking into the Bible when
God created Man, He left man with a divine injunction as rewarded in the Holy
Scripture, which Says, be fruitful and multiply and replenish the earth and
subdue it, and have dominion over the fish of the sea and of the air.
And every living thing that moves upon
the earth (Genesis 1.28) was the command.
The wheel of change has been rolling on throughout the entire world
transforming virgin lands, desert, ocean and sea to economic advantage of Man. Nigeria was unknown then.
The first step in the British
acquisition in Nigeria Ondon who later becomewas the annexation of Lagos in 1861. This marked the first step taken by the
British Government in the 19th century to acquires economic and
political domination over the people of Nigeria.
The Hunder land of Nigeria
north of Lokaja was being administered on behalf of the British by a Government
had declared a protectorate over areas cleared by the land company in
1887. Then on January 1990, it took over
direct administration of the area from the Royal Niger Company and named it the
protectorate of Northern Nigeria with Lugard
as its first High Commissioner. This
great political unit was christened “Nigeriaâ€
in 1990 by “Floral Show†Forum colonial correspondent of the times of London who later become
Lugards Wife (Onwubike 1973). Lastly the two separate Government in the colony
and the defectorate of southern Nigeria
and the protectorate of Northern Nigeria were alonagated as the colony and
protectorate of Nigeria on
January 7 St 1914, Lugard became the Nigeria first Governor General. He
continued in the March towards development in every fact of life as a new
emerging nation. In the West African
region and by October 1st 1960, Nigeria
was further granted with a follow- up step by its political freedom and
emancipation when she was granted an independent status. She was also granted the Republican status in
1963.
Furthermore, the plans for the growth
and development of Nigeria was granted in one year 1970 – 1974 but was extended
to one year 1975 in the third month and experienced a lot of problems. Recovery from one civil war displayed one
implementation of some project. The fund
that were anticipated were not forth coming and there was a lack of technical
partners needed to carryout some aspect of the plan (Anderson 1976). Also came the third development plan. The plan covered a period of 5 years
consecutively 1975 – 1980. The
principal long – run objectives are similar to those of the proceedings past
independent plans.
The
objectives are to make Nigeria.
(a)
A great and
dynamic country.
(b)
A united,
strong and self- reliant nation.
(c)
A just and
exaltation society.
(d)
Aland of
bright and full opportunities for all
citizens.
(e)
A free and
democratic society.
A 9% per annum rate of growth of Gross
Democratic Party (GDP) was assumed for the plan period and the total consumed
and capacity invested was to be N30
Billions, the plan strategy was to utilize the country’s resources to develop
the production capacity of the economy.
The plan was received up wards in 1976 (Ojo 1982). Some of its highlights of these plans were
agricultural N1.400 million. The building of the two new oil refineries at
Warri and Kaduna while the one at Port Harcourt was to be
expanded. The iron and steel industry
with features in both the previous plan was to be established at Ajaokuta in
Kwara
State. A total of N6000
millions allotted to the industrial sector. Development of the infrastructures
also took a large shy with a total of N4000
millions being allotted. More roads were
to come under the control of the Federal Government (F.G) and a modernization
of the railways was planed. The
electricity capacity was to be extended to 1500 megawatts with N 2000 million going to education, while health services were to be expanded
=N=2400 million were budgeted for armed forces (Anderson 1976).
The forth plan lasted for 4 years 1981 –
1985 and it described adequately the development of Nigeria.
Development
could be defined as a displayed discipline which is the mooing force behind the
socio – economic transformation of society.
Most
community leaders saw development as more provision for schools, health
centers, hospitals, post offices, town halls, churches, mosques, good roads,
portable waters electricity and telephones (Ewulu 1996). However, in the
post-independent era, the development process came to put more emphasis on the
improvement in the “materials†condition and living (of man) through the use of
resources available to him. In other words, development came to stress
production and productivity.
Some of the
indications of development are as follows:
1.
Economics power
(per capita income)
2.
Employment
3.
Savings
investment
4.
Level of
literacy
5.
Rural
population
6.
Nature/ Systems
of Agricultural production
7.
Quality of
goods (1996)
Subsequently,
several programmers and strategies have been actively encouraged, promoted and
supported by the government amongst which are as follows:
1. Various
agricultural development programme operation feed the Nation (O F N). Green
Revolution, National Acceleration Food Project (NARFPP) and the Agricultural
Development Project (ADP).
2. Directorate of
Food, Roads and Rural Infrastructure (DFRRI).
3. The promotion of co-operatives:
4. Agricultural Credit Government Scheme
and,
5. Rural Banking Policy.
The
transformation of country into an economic giant has engaged the attention of
successive Nigeria
government through the listed economic efforts and various developing plans.
1.2
PROBLEMS ASSOCIATED WITH SUBJECT MATTER
Despite all
the institutional frame work put in place and the above development in Nigeria,
the giant stride expected to be made in the economical development have been
abysmally low and the situation has been yearning for a well laboured
attention.
The oiling rehabilitating and growling
rate of development economically has caught the attention of the researcher and
prompted her into making statements, she visualized that the problems acting is
a load in the wheel of economic progress of Nigeria.
Since Nigeria
detached itself from the dominion of British rule in 1960 by using politically
independent, it has not detached from British in terms of policy formation and
articulations. Most of the policies embarked upon from 1960 even to greater
extent today are fashioned after the British modalities.
1.
Some of the economic policies initiated are being
done, obvious of the fast that other co-operating restitution that will be
argue in the development are not yet in place like community Banks that will
address adequately the need of the realities which are integrated parts of the
geo-political entity called Nigeria.
2.
Where the banks exist or existed they could not as an
economic catalyst because some of the reasons of inadequate collaterals or to
some on right lack of collateral to pledge against the loan being sought.
3.
Some of the economic development policies being
vigorously and also religiously pursued seen the side treat in the rural areas
where he 65% - 70% of the population resides.
4.
Another problem observed then was that, it has been in
link up to full realization of our economic dreams in improper re-appraisal of
the lapsed policies with a view to know the difficult areas in terms of meeting
the envisioned target.
5.
Other problem is to the transformation of Nigeria into a
strong viable and reliable, a robust economic collision dreamed is the death of
banking habit or culture among the citizens.
The chemically of role funds from the surplus sector of the
economy to the deficit could not be made. These worries were trying follow in a
pillow or banned aground in various homes.
6.
Lastly, another problems in the economic development
of Nigeria
is the topside economic concern various orthodox banks station in the rural
areas act as cash centers and the funds mobilized are not ploughed into
development. The areas rather they are reputed to the township head office for
onward lending to beneficiaries outside the catchments areas from where the
said funds were mobilized.
1.3
IMPORTANT OF STUDYING AREA
With decree
46 of 28th April 1990 establishing community Banking System. It
marked another landmark in the annual of Nigeria Economic development. The
researcher has the under listed purpose when venting to address the issues of
community banking System in Economic Development of Nigeria.
a) To know the extent
the establishment of community banking system wills galvanize economic
development in Nigeria.
b) To ascertain
thinking trend of doming influence of “Few money bag†in the conventional banks
have been put to list by community development association. Having a controlling share of 30% of the
called and fully paid up sharks capital.
c) To determine to
what extent funds guaranteed from the rural areas are extended to them to
subsidies economic development in these areas.
d) To assess how
personal reorganization to collateral has succeeded in leading people into
taking loan to generate economic activity.
e) To asses how
adequately it has utilized the provision of section 4:1:12 of the revised
community bank prospectus which read “perform non-banking functions that
promotes grass root development such as supporting individuals co-operate and
group formation activities assisting clients in making of agriculture, in rural
individuals and others products and providing financial and other extension
chart and other community members.
f) To determine to
what extent the banking of community banking system as contain in sector 4:1:13
of caused community bank prospects which read inter ales “shall not engage in
soplusticated banking services like foreign exchange transaction or
international community papers, corporate finance in order to enable them
retain their local focus and concentrate on community services will determine
economic development in Nigeria.â€
g) Ascertaining
the impacts of central Banking of Nigeria (CBN) and other financial institution
Decree (BOFID) and companies allied matters Act (CAMA) on the community Banking
system in its vowed determinant to coach this country into economics.
h) To re-appraise
the negative input of non-provision of a centre clearing house for the
community banking system in the economic development training in Nigeria.
i) To know to what
extent the unfriendly disposition of the conventural banking system terms of
shifting bank charges for service reudened to these community banks will be
another barricade in the movreh to a new economic down for Nigeria.
j) Finally, to
evolutes how the funds of the community banks trapped in the distressed
commercial merchandise and financial house has been putting legs of economic
development art from moving at the expected pace.
1.4 IMPORTANT TERMS
This
research work may be of valuable
assistance to individuality managers of financial institutions, small and
medium scale industrialist policy makes and other researcher in this field.
Some of the affendant benefit include the following; Industrialist,
small and medium scale industrialist will be able to see community banking
system as another source of financial at its disposition, which they had hither
to been ignorance of.
To the managers of financial
institution including orthodox banks. It
will expose to them how unfriendly by disposition to this community banking
system in terms of change or services affected on their behalf will geopardize
the dream of a giant economic nation.
Also, it will expose how miss- appropriation of placement made in these
institution by community bank have adversely
affected, since a lot of them
have closed shops as a result of illegitimatize occasions by distress syndromes
that has set a shifting hand into
the banking sector.
To the policy, it will act as an eye
opener, so that when policies are being made, it should be well articulated and
every minutes detailed built in so, that such policy should be avoided to loose
– ends. Such loose-ends and in
articulated policy characteristics of the community banks decree is the non-
provision of clearing house of the community banking system which left them and
the many of the community banks, in item of detrimental charges handed down to
them.
To student, researchers and those
which curiously and injury wound. It
will extend itself as a pedestral or subtraction upon which expansionary and
follow up study offering courses on community banking, it will be added to the
words of literature available for references.
1.5 SCOPE OF STUDY/DELIMITATION OF
STUDY
This
research works covers the following areas;
i) What is community - banking system?
ii) Its birth and its legal form
iii) The purpose of
community banking system
iv) The functions of community banking
v) The role of
community banking in the economic development in Nigeria.
1.6 REFERENCES
ANDERSON, D. (198 6) Economics of West
Africa,
Zaria: Macmillan publisher.
ADEKNYE,
FRMI (1986) Elements of Banking in
Nigeria 3rd Edition, Lagos; F and A Publisher.
MABOGUNSE
AKIN (1991) National Board for
Community
Banking System in Nigeria:
An introduction; Abuja
OMOLUMO,
(1993) Element of Banking – A
Profession
Approach 1st Edition, Lagos;
publisher.
EWULU, J N J (1986) Community Bank and
National Development Seminar Paper.
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