Professional Documents
Culture Documents
FINANCIAL
INSTITUTION IN
ENHANCING
BUSINESS
ACTIVITIES IN
NIGERIA
1
A RESEARCH PROJECT WRITTEN IN THE DEPARTMENT
SUBMITTED
NOVEMBER 2009
TECHNOLOGY
2
APPROVAL
accountancy .
Date
Project Supervisor
3
Center co-ordinator Date
DEDICATION
education.
4
ACKNOWLEDGMENT
of the write up, may God reward every effort of kindness and
ABSTRACT
the yield curve become inverse, firms in this arena will offer
TABLE OF CONTENT
Title page - - - - - - - - i
Approval - - - - - - - - ii
Dedication - - - - - - - - iii
Acknowledgement - - - - - - - iv
Abstract - - - - - - - - - vi
7
1.5.3 Financial constraints - - - - - 11
1.6.0 Hypothesis - - - - - - - 11
CHAPTER THREE
3.1 Introduction - - - - - - 26
CHAPTER FOUR
4.1 Introduction - - - - - - - 31
CHAPTER FIVE
5.1 Findings - - - - - - - 44
5.2 Conclusions- - - - - - - 44
9
CHAPTER ONE
INTRODUCTION
provides financial services for its clients or members. Probably the most
government bodies.
(1) The Central Bank of Nigeria (hereafter in this Decree referred to as "the Bank") shall
have all the functions and powers conferred and the duties imposed on it by this
Decree.
(2) The Bank shall in addition to the functions and powers conferred on it by this Decree,
have the functions and powers conferred and the duties imposed on the Bank by the
(3) The Bank may authorise or instruct any officer or employee of the Bank to perform
any of the functions, exercise any powers, or discharge any of its duties under this Decree.
(4) The Bank may, either generally or in any particular case, appoint any person who is
not an officer or employee of the Bank, to render such assistance as it may specify in the
exercise of its powers, the performance of its functions, or the discharge of its duties under
this Decree, or to exercise, perform or discharge the functions and duties on behalf and in the
10
(5) For the purposes of this Decree, a person shall be deemed to be receiving money as
deposits -
(a) if the person accepts deposit from the general public as a feature of its business or if it
(b) notwithstanding that it receives moneys and deposits which are limited to fixed
amounts or that certificates or other instruments are issued in respect of any such
amounts providing for the repayment to the holder thereof either conditionally or
(6) Notwithstanding anything contained in this section to the contrary, the receiving of
moneys against any issue of shares and debentures offered to the public in accordance
with any enactment in force within the Federation shall not be deemed to constitute
company duly incorporated in Nigeria and holds a valid banking licence issued under
this Decree.
(2) Any person who transacts banking business without a valid licence under this Decree is
3. (1) Any person desiring to undertake banking business in Nigeria shall apply in
writing to the Governor for the grant of a licence and shall accompany the application
11
(b) a draft copy of the memorandum and articles of association of the proposed
bank;
(c) a list of the shareholders, directors and principal officers of the proposed
(e) such other information, documents and reports as the Bank may, from time
to time, specify.
(2) After the applicant has provided all such information, documents and report as the
Bank may require under subsection (1) of this section, the shareholders of the proposed
bank shall deposit with the Bank a sum equal to the minimum paid-up share capital that
(3) Upon the payment of the sum referred to in subsection (2) of this section, the Governor
may issue a licence with or without conditions or refuse to issue a licence and the
(4) Where an application for a licence is granted, the Bank shall give written notice of that
4. The Bank may invest any amount deposited with it pursuant to section 3(2) of this
Decree in treasury bills or such other securities until such a time as the Governor shall
decide whether or not to grant a licence, and where the licence is not granted the Bank
shall repay the sum deposited to the applicant, together with the investment income
5. (1) Except as provided in section 9(2) of this Decree, the Governor may vary or
revoke any condition subject to which a licence was granted or may impose fresh or
12
(2) Where the grant of a licence is subject to conditions, the bank shall comply
with those conditions to the satisfaction of the Bank within such period as the Bank
(3) Any bank which fails to comply with any of the conditions of its licence is guilty of an
offence under this section and shall be liable on conviction to a fine not exceeding
N1,000 for each day during which the condition is not complied with.
(4) Where the Governor proposes to vary, revoke or impose fresh or additional conditions
on a licence, he shall, before exercising such power, give notice of his intention to the
bank concerned and give the bank an opportunity to make a representation to him
thereon.
(5) Any bank which fails to comply with any fresh or additional condition imposed in
N100,000 and where the offence continues, to an additional fine of N1,000 for each day
6. No bank may open or close any branch office anywhere within or outside Nigeria
7. Except with the prior consent of the Governor, no bank shall enter into an agreement or
arrangement-
(b) for the sale, disposal or transfer howsoever of the whole or any part of the
(c) for the amalgamation or merger of the bank with any other person;
(e) to employ a management agent or to transfer its business to any such agent.
13
8. (1) Except with the approval of the Bank, no foreign bank shall operate a
(2) Any person who contravenes subsection (1) of this section or section 7 of this
in the case of a continuing offence to an additional fine of N10,000 for each day
9. (1) The President on the recommendation of the Bank shall, from time to time,
determine, as he may deem appropriate, the minimum paid-up share capital of each
category of banks.
(2) Subject to subsection (1) of this section, the minimum paid-up share capital of a bank
(3) Any failure to comply with the provisions of this section within 12 months from the
date of this Decree shall be a ground for the revocation of any licence issued pursuant
10. Notwithstanding the provisions of the Companies and Allied Matters Decree 1990 or
any agreement or contract, the voting rights of every shareholder in a bank shall be
11. Notwithstanding anything contained in any law or in any contract or instrument, no suit
or other proceeding shall be maintained against any person registered as the holder of a
14
share in a bank on the ground that the title to the said share vests in any person other
Provided that nothing in this section shall bar a suit or other proceeding on
behalf of a minor or person suffering from any mental illness on the ground that
the registered holder holds the share on behalf of the minor or person suffering
12. The Governor may, with the approval of the President by notice published in the
(a) ceases to carry on in Nigeria the type of banking business for which the
licence was issued for any continuous period of 6 months or for any period
(c) fails to fulfill or comply with any condition subject to which the licence
was granted;
(e) fails to comply with any obligation imposed upon it by or under this Decree
13. (1) A bank shall maintain; at all times, capital funds unimpaired by losses, in such
ratio to all or any assets or to all or any liabilities or to both such assets and liabilities of
the bank and all its offices in and outside Nigeria as may be specified by the Bank.
(2) Any bank which fails to observe any such specified ratios may be prohibited by the
Bank from-
15
(c) paying cash dividend to shareholders;
(3) In addition, the bank may be required to draw up within a specified time a
14. (1) Failure to comply with the provisions of section 13 of this Decree may
constitute a ground for the revocation of the licence of the bank under this Decree.
(2) Where the Bank proposes to recommend to the President, the revocation of the licence
of any bank pursuant to subsection (1) of this section, the Bank shall give notice of its
intention to the bank and the bank may within 30 days make representation (if any) in
respect thereof.
(3) Any bank dissatisfied with the decision of the Bank to recommend the revocation
of its licence under this section may, within 14 days of the decision being
communicated to it, appeal against such decision through the Bank to the
President.
(4) The President may reject or approve the recommendation of the Bank with such
15. (1) Every bank shall maintain with the Bank cash reserves, and special deposits
and hold specified liquid assets or stabilisation securities, as the case may be, not less in
amount than as may, from time to time, be prescribed by the Bank by virtue of section
(2) Where both assets and liabilities are due from and to other banks, they shall be offset
accordingly, and any surplus of assets or liabilities shall be included or deducted, as the
16
(3) In the case of the long-term advances to a bank or by an overseas branch or office
of a bank, the advances may, with the approval of the Bank, be excluded from the
(a) furnish within a reasonable time any information required by the Bank to
satisfy the Bank that the bank is observing the requirements of subsection
(b) not allow its holding of cash reserves, specified liquid assets, special
deposits and stabilisation securities to be less than the amount which may,
(c) not during the period of any deficiency grant or permit increases in
advances, loans or credit facilities to any person without the prior approval
(5) Any bank which fails to comply with any of the provisions of subsection (4) of
(a) in the case of paragraph (a) N50,000 for every day during which a default
(b) in the case of paragraph (b), one per cent of the shortfall for each day
c) in the case of paragraph (c), N500,000 for every offence under that
paragraph;
and the Bank may also, during the period when the bank fails to comply with any
17
(6) For the purposes of this section, specified liquid assets provided they are freely
transferable and free from any lien or charge of any kind shall, without prejudice to the
provisions of section 39 of the Central Bank of Nigeria Decree 1991, consist of all or
(a) currency notes and coins which are legal tender in Nigeria;
(c) net balances at any licensed bank (excluding uncleared effects) and money
at call in Nigeria;
(d) Treasury Bills and Treasury Certificates issued by the Federal Government;
(e) inland bills of exchange and promissory notes rediscountable at the Bank;
(f) stocks issued by the Federal Government with such dates of maturity as
(h) such other negotiable instruments as may, from time to time, be approved
18
5. To find out what are the possible means curbing financial distress in
the country.
The significance of the study are many, but the following points are worthy of
mentioning.
a. the findings of the study will shed more light on combating distress
c. the findings of the research will serve as decision variables or input for
d. the policy makers and professionals in the relevant fields will find the
e. the study will create more awareness in the minds of its readers, about the
19
1.5.0 LIMITATION OF THE STUDY
A research work of this nature cannot come to an end without limitation. The
of the work. These problems include, difficulty in procuring materials for the
There was a lot of constraints as to getting information and materials for the
job. The researcher made series of consultations and visit to most renowned
institutions to acquire the needed information. Most materials used were very
issue, as it has to do with time. Actually, a lot of time was wasted as the
The researcher would have obtained more information than what is obtainable
here but due to lack of money to visit some of the firms and government
In this research project, two hypotheses are to be tested as follows; that the
(2) If "banking business" means the business of receiving deposits on current and savings
accounts,
The salient objectives of the research were the following among others:
c. to really find out the various types of financial institutions in the country
online problem.
1. Introduction
CHAPTER TWO
LITERATURE REVIEW
The highly justifiable focus on banks as financial institutions stems from their
appropriate channels for national and international financial flows, which contribute
The experience from the restructuring process has shown that the strengthening of
sector. The development of viable capital markets can only take place once the
banking markets have paved the way for more efficient financial intermediation.
body of academic research across many countries has demonstrated the important
role that a highly developed banking sector and capital market have to play in
reach their potential since they allow firms which have successfully identified
channelling investment funds from those in the economy who are willing to defer
clearly to this source of growth. Financial development may also help to realise
faster technical progress, embedded in the capital stock, to achieve higher economic
growth.
More specifically, financial development can affect growth through three main
channels: (i) it can raise the proportion of savings channelled to investment, thereby
reducing the costs of financial intermediation; (ii) it may improve the allocation of
productivity of capital; and (iii) it can influence the savings rates of households, for
characterised by a good legal structure. This may lower both information costs (e.g.,
transaction costs (e.g., through the better legal enforcement of contracts) for a
supplier of funds, such as banks. Furthermore, when banks are allowed to be active
markets, and when banks can own or control non-financial firms, or vice versa, credit
that is able to withstand shocks without giving way to cumulative processes which
23
could impair the allocation of savings to investments and the processing of payments
place. Here, one can refer to the sequencing laid out by IMF in recent years and
to the European experience with opening and gradually liberalising the financial
4. Fourth, there are several, complementary public policies that are typically
• Fiscal policy. If fiscal authorities, as in the euro area, are restricted in their
the first place try to guarantee price stability, being the best possible contribution
it can make to growth in the medium to long-term. Indirectly, this should also be
conducive to supporting financial stability, as the economy will have less macro
saying that the central bank should take an active interest in monitoring financial
24
sector developments, given the importance of the sector, also from a monetary
the financial sector. This support may come not only through interest rate policy,
but also and most powerfully through the central bank's role as a lender of last
resort, that is, in providing final liquidity when solvent commercial banks suffer
guaranteeing financial sector stability, as for example the lending and deposit
facilities at the central bank providing upper and lower bounds for money market
later, helps to enhance financial stability and maintain overall confidence in the
financial system.
small depositors in case of a bank failure. This system seems to work relatively
Of course, a stable financial system cannot operate without market discipline of the
financial sector. In order to avoid costly bank runs and bank failures, the sector must
shareholders. Banks should be able to show good performance, adopt a sound risk
25
management system and adhere to adequate corporate governance rules. In case of
the public, in order not to lose its credibility. As an external watchdog, rating
agencies provide a valuable service by monitoring the financial sector and designing
a rating system, which reflect the institution's capacity to service its debts. This has,
institutions.
(1) Every bank shall maintain a reserve fund and shall, out of its net profits for each year
(after due provision made for taxation) and before any dividend is declared, where the
(a) less than the paid-up share capital, transfer to the reserve fund a sum equal not
(b) equal to or in excess of the paid-up share capital, transfer to the reserve fund a
sum equal to not less than fifteen per cent of the net profit:
Provided that no transfer under this subsection shall be made until all identifiable
(2) Any bank which fails to comply with the provisions of subsection (10 of this section is
(3) Notwithstanding paragraphs (a) and (b) of subsection (10 of this section, the Bank
may, from time to time, specify a different proportion of the net profits of each year, being
either lesser or greater than the proportion specified in paragraphs (a) and (b) to be
transferred to the reserve fund of a bank for the purpose of ensuring that the amount of the
reserve fund of such bank is sufficient for the purpose of its business and adequate in relation
to its liabilities.
26
17. No bank shall pay dividend on its shares until-
(a) all its preliminary expenses, organisational expenses, shares selling commission,
brokerage, amount of losses incurred and other capitalised expenses not represented
(b) adequate provisions have been made to the satisfaction of the Bank for actual and
contingent losses on risk assets, liabilities, off balance sheet commitment and such
(c) it has complied with any capital ration requirement as specified by the Bank pursuant
(a) in any manner whatsoever, whether directly or indirectly have personal interest in any
advance, loan or credit facility; and if he has any such personal interest, he shall
(b) grant any advance, loan or credit facility to any person, unless it is authorised in
accordance with the rules and regulations of the bank; and where adequate security is
required by such rules and regulation; such security shall, prior to the grant, be
obtained for the advance, loan or credit facility and shall be deposited with the bank;
(c) benefit as a result of any advance, loan or credit facility granted by the bank.
(2) Any manager or officer who contravenes or fails to comply with any of the provisions
of subsection (1) of this section is guilty of an offence under this section and liable on
any gain or benefits, accruing to any person convicted under this section by reason of such
contravention, shall be forfeited to the Federal Government, and the gains or benefit shall
27
(3) Every director of a bank who has any personal interest, whether directly or indirectly,
in an advance, loan or credit facility, or proposed advance, loan or credit facility from that
bank, shall, as soon as practicable, declare the nature of his interest to the board of directors
of the bank, and the secretary of the bank shall cause such declaration to be circulated
(4) The provisions of subsection (3) of this section shall not apply in any case-
(a) where the interest of the director consists only of being a member holding less than
five per cent of the shares of a company which is seeking an advance, loan or credit
(b) if the interest of the director may properly be regarded by the Bank as not being
material.
(5) For the purpose of subsection (3) of this section, a general notice given to the board of
(a) an officer or member holding five per cent or more of the shares of a company or firm
(b) to be regarded as having personal interest in any advance, loan or credit facility which
may after the date of the notice, be made to that company or firm, shall be deemed to
facility, if-
(i) the notice specifies the nature and extent of his interest in the company or firm;
(ii) the interest is not different in nature to or greater in extent than the nature and extent
specified in the notice at the time the advance, loan or credit facility is made; and
28
(iii) the notice is given at the meeting of the board of directors or the director takes
reasonable steps to ensure that it is brought up and read at the next meeting of the board of
(6) Every director of a bank who holds any office or possesses any property whereby,
whether directly or indirectly, duties or interests might be declare at a meeting of the board of
directors of the bank, the fact and the nature, character and extent of the interest;
(7) The declaration referred to in subsection (6) of this section shall be made at the first
(8) The secretary of the bank shall cause to be brought up and read, any declaration made
under subsection (3) or (6) of this section at the next meeting under this section in the
minutes of the meeting at which it was made or at the meeting in which it was brought up and
read.
(9) Any director who contravenes subsection (3) or (6) of this section is guilty of an
offence under this section and liable on conviction to a fine of N100,000 or to imprisonment
(a) employ or continue the employment of any person who is or at any time has been
adjudged bankrupt or has suspended payment to or has compounded with his creditors
29
or who is or has been convicted by a court for an offence involving fraud or
(2) Except with the approval of the Bank, no bank shall have a director any who is a
director of -
(b) companies which among themselves are entitled to exercise voting right in excess of
ten per cent of the total voting right of all the shareholders of the bank.
(a) a director of any other company not being a subsidiary of the bank; or
(4) Every director of a bank shall sign a code of conduct in such form or manner as the
(5) The chief executive of a bank shall cause all the officers of the bank to sign a code of
20. (1) A bank shall not, without the prior approval in writing of the Bank, grant-
(a) to any person any advance, loan or credit facility or give any financial guarantee or
incur any other liability on behalf of any person so that the total value of the advance,
loan credit facility, financial guarantee or any other liability in respect of the person is
at any time more than twenty per cent of the shareholders fund unimpaired by losses
30
or in the case of a merchant bank not more than fifty per cent of its shareholders fund
unimpaired by losses; and for the purpose of this paragraph all advances, loans or
credit facilities extended to any person shall be aggregated and shall include all
corporate:
Provided that the provisions of this paragraph shall not apply to transactions between
entitled to payment of exports from Nigeria to advance made against such bills, transfers
or documents;
(b) any advances, loans or credit facilities against the security of its own shares or any
unsecured advances, loans or credit facilities unless authorised in accordance with the
bank's rules and regulations and where any such rules and regulations require adequate
security, such security shall be provided or, as the case may required, deposited with
the bank.
(2) A bank shall not, without the prior approval in writing of the Bank-
(i) to its directors or any of them whether such advances, loans or credit facilities are
(ii) to any firm, partnership or private company in which it or any one or more of its
31
(iii) to any public company or private company in which or anyone or
(b) permit to be outstanding to its officers and employees unsecured advances, loans or
unsecured credit facilities, which in the aggregate for any one officer or employee, is an
(c) engage, whether on its own account or on a commission basis, in wholesale or retail
trade, including the import or export trade, except in so far as may exceptionally be
necessary in the course of the banking operations and services of that bank or in the
course of the satisfaction of debts due to it; so however that nothing in this paragraph
debt factoring provided that the foregoing provisions of this paragraph shall not apply to
(d) without prejudice to the provisions of section 21 of this Decree, acquire or hold any part
(i) any shareholding approved by the Bank in any company set up for the purpose of
(ii) any shareholding approved by the Bank pursuant to sub-paragraph (i) of this paragraph,
the aggregate value of which does not at any time exceed twenty-five per cent of the
32
(iii) all shareholding acquired by a merchant bank while managing an equity issue:
Provided that the aggregate value of such acquisition does not at any time exceed the
sum of the paid-up share capital of that merchant bank or ten per cent of its total assets,
excluding contract items, whichever is higher and that this paragraph shall not apply to
any nominee company of a bank which deals in stock and shares for or on behalf of the
(e) remit, either in whole or in part, the debts owed to it by any of its directors or past
directors;
(f) purchase, acquire or lease real estate except as may be necessary for the purpose of
housing of its staff or other exceptional circumstances, where the agreement of the
Bank is obtained;
(3) Notwithstanding the foregoing provisions of this section, a bank may secure debt on
any real or other property, and in default of repayment, may acquire such property and
exercise any power of sale, as may be provided for in any instrument or, by law
prescribed, immediately upon such default or soon thereafter as may be deemed proper.
(4) In paragraphs (a) and (b) of subsection (2) of this section, the expressions "unsecured
advances and loans" or "unsecured credit facilities", mean advances, loans or credit facilities
made with security, any part thereof which at any time exceeds the market value of the assets
constituting the security, or where the bank is satisfied that there is no established market
value, the value of the assets as determined on the basis of a valuation approved by the bank.
33
(5) In paragraphs (a) and (e) of subsection (2) of this section, the expression "director"
includes director's wife, husband, father, mother, brother, sister, son, daughter and their
spouses.
(6) All the directors of a bank shall be liable jointly and severally to indemnify the bank
against any loss arising from any unsecured advances, loans or credit facilities under
(7) Any bank which, after the commencement of this Decree , enters into any transaction
inconsistent with any of the provisions of subsection (1) and (2) of this section is guilty of an
offence and liable on conviction to a fine of N1,000 for each day during which any such
transaction continues.
21. (1) A bank may acquire or 'hold part of the share capital of any agricultural,
industrial or venture capital company subject to the following conditions, that is-
(a) the venture capital company is set up for the purpose of promoting the development of
(b) the shareholding by the bank is in small or medium-scale industries and agricultural
The Lagos office the bank is located at 20 Marina ,Lagos. While Warri branch is at opposite
34
Uche Ginika Michael CSO
CHAPTER THREE
3.1 INTRODUCTION
study thus paving way for a meaningful and systematic approach to the
study. It is on this ground that this chapter had being devoted to the
35
In this chapter, the methodology employed in this study, were
chapter. The main objective of this study has been to examine internet
The study is empirical in nature and falls within the realms of macro
The use of historical data for the study, was informed by the need to
The source of the data collected and used in the course of this study were
The secondary data were gathered from a variety of sources such as text
In searching for the relevant and necessary data needed for the research
The population, in this study is the totality of the senior and junior staff of Sterling
Bank PLC. Warri. The sample size is 200 and this number of respondents were
chosen from the population. The rationale for studying a sample rather than the
2. Statistical Laws reveal that statistics composed from the sample data are
placed on the results. We should note that above is only possible if the probability
Spiegel (1992) observes that sampling theory is a study of the relationship existing
between a population or universe and the samples drawn from it. The population in
this study is from the senior/ junior staff of the firm. In order to make conclusions of
sample may be got, is by the process of stratified random sampling. In this research
37
work, the technique of simple random sampling is used to select the sample of 100
respondents from each group of the personnel, making a total sample size of 200.
The list of all senior and junior staff of the firm is from the personnel department of
the company. The numbers were written on a piece of paper, put in a basket and the
papers were folded to cover the numbers and one of the pieces of paper was selected
at a time without replacing it and any name corresponding to the number becomes a
number of the sample. This method of sampling without replacement was done until
the sample of 100 respondents per group of personnel was arrived at.
Due to the macro nature of the problem under investigation. the use of the
The researcher and three other field data collectors did the fieldwork. The field data
collectors were other classmates also offering the Part-time ND program, who have
also offered research methodology. They had no problem gaining entrance into the
office under consideration since one of them has a friend working in the same Zenith
Bank. They were to be trained by the researcher on how to greet the respondents and
38
3.6 DESCRIPTION OF DATA PRESENTATION AND ANALYSIS TOOLS
The data presentation tools are simple bar charts, histograms, and pictorial tables. The
(c) Caption
(f) The head note or prefatory note or explanatory just before the title.
(g) Source note, which refers to the literally or scientific source of the table (Mills
39
CHAPTER FOUR
4.1 INTRODUCTION
In the previous chapter, the research methodology and design have been
handled. In this chapter the data presentation and analysis are to be done. The
histogram and one pie chart to make it amenable for further analysis. By
analysis is meant the act of noting relationship and aggregating the set of
variables with similar attributes and also breaking the unit of their components
In this research work, the research accepts the contention of Podsakoff and
Dalton (1995) that the factual information from the data can be used as a basis
for reasoning, calculation and discussion. Apart from the heading above, the
Data Presentation,
Percentage analysis
Cross-tabulated analysis
Hypothesis testing
40
4.2 DATA PRESENTATION
TABLE 4.1
THE SUMMARY OF THE PERSONAL DATA
OF THE RESPONDENTS
1 SEX FREQUENCY
Male 150
Female 50
Total 200
Angles
2 Marital Status subtended
Married 130 in degree
Single 70
Total 200
3 AGE
21-30 years 90
31-40 years 90
41-50 years 10
51-60 years 10
Total 200
4 HIGHER
EDUCATIONAL
QUALIFICATION
DIPLOMA 10 18
OND 30 54
HND 80 144
FIRST DEGREE 20 36
SECOND DEGREE 40 72
NIM 20 36
TOTAL 200 360
The marital statuses of the 200 respondents: It is found that 130 of them
are married while 70 are single. For the ages of the 200 respondents, there
are 21-30 years, 31-40 years, 40-50 years, 51-60 years with frequency of
there are diploma, OND, HND, First Degree, Second Degree, NIM. and
41
Figure 4.1 below shows the simple bar chart of the data on the sex of the respondents.
FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE SEX
OF THE RESPONDENTS
140-
120-
Frequency
100-
80
60 --
40 -
20
-
0 -
MALEGender FEMALE
Source: from data in table 1 (generated from SPSS) statistical package for social
science.
42
From figure 4.1 above, it is shown that male respondents have the modal
frequency of 150 out of the 200 respondents while the female respondents
Figure 4.2 below shows the simple bar chart of the data on the marital
FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL
STATUSES OF THE RESPONDENTS
140 -
120 -
100 -
Frequency
80 -
60 -
40 -
20 -
0 -
MARRIED SINGLE
Marital status
43
From figure 4.2 above, it is shown that the married respondents have the
modal frequency of 130 out of the 200 respondents while the single
TABLE 4. AGES
Categories Frequency OF THE RESPONDENTS
Percentage Valid Cumulative
Percent
(years) Percentage
21 TO 30 90 45.0 45.0 45.0
41 TO 50 10 Age group
5.0 5.0 95.0
44
51 TO 60 10 5.0 5.0 100.0
From figure 4.3 above, it is shown that the age classes limit are 20.5-30.5
frequencies of 90, 90, 10, and 10 out of 200 respectively. This shows that
this is bi-modal distribution as the age classes of 20.5-30.5 years and 30.
Figure 4.4 below shows the pie chart of the data on the highest
OND DIPLOMA
FIRST DEGREE
180
540 OND
SECOND DEGREE 360
720
HND
1440
FIRST DEGREE 360
45
TABLE 4. 5 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational level Frequency Percentage Valid Percentage Cumulative
Percentage
DIPLOMA 10 5.0 5.0 5.0
46
From figure 4.4 above, the Educational Qualifications are Diploma, O.N.D, First
Degree, Second Degree and NIM and the subtended angles in degrees are equal to
180, 540, 1440, 360, 720 and 360 and respectively at the center of the circle.
Table bellow show the analysis of the statuses of the 200 respondents
in the country . NO
YES NO DON’T ANSWER Total
KNOW 2 12
19
91
DIPLOMA 6 2 2
OND 19 7
HND 26
FIRST
60 31 31
DEGREE - 10 9 21
SECOND 31 9 200
DEGREE 21
NIM
The above table shows that
Total the 100
total of 100 43 11 (out of 200 said YES.
respondents
39 939
This proved that it is possible to combat financial distress in the country .
TABLE 7. Cross-tabulation 2
OND 19 19
HND 14 30 47 91
FIRST
DEGREE 10 9 19
SECOND
DEGREE 40 40
Is it possible to combat
NIM internet fraud?
21 . 21
Total 104 40 47 9 200
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The above table indicates that it is possible for individual to avoid
investment scams. 104 respondents out of 200 said yes. While 40 did not
significance.
the statistics and the population parameters and what ever is observed as
analysis.
CHI-SQUARE TEST
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The C is one of the simplest and most widely used non-parametric test in
theory and observation i.e, with the help of c test we can know whether a
chance or whether it results from the inadequacy of the theory to fit the
frequencies completely coincide. The greater the value of c the greater the
c = ( O- E)2/E
Where,O=Observed frequency
For the data analysis and the interpretation, the researcher has adopted
frequency table, various types of charts and to find out the valid
percentage responses from the sample. This automated data analysis has
Residuals
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The observed value of the dependent variable minus the value predicated
by the regression equation, for each case. Large absolute values for the
residuals indicate that the observed values are very different from the
predicted values.
the test statistics serve as criterion value, it affords the basis for rejecting
Reject the null hypothesis if the calculated value of the test statistic is
Accept the null hypothesis if the calculated value of the test statistic is
TEST STATISTICS
If "banking business"
If it is possible to combat
means the business of
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note: df = degree of freedom
Level of significance……….0.05
Critical value………………………43.0
Calculated value……………………73.880
From the above analysis, it could be seen that in the first test, it is
In the second test which state that "banking business" means the business of
0.05, the critical value is 44 while the calculated value from the test statistics
table is 94.120. Analysis the data above, it is very clear that the calculated
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CHAPTER FIVE
5.1 FINDINGS
Through this research, the researcher has been able to discover and
financial services for its clients or members. Probably the most important
intermediaries.
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5.2 CONCLUSION
Financial institutions provide service as intermediaries of the capital and debt
markets. They are responsible for transferring funds from investors to companies, in
need of those funds. The presence of financial institutions facilitate the flow of money
through the economy. To do so, savings are pooled to mitigate the risk brought to
provide funds for loans. Such is the primary means for depository institutions to
develop revenue. Should the yield curve become inverse, firms in this arena will offer
brokerage.
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