THE IMPACT OF MONETARY AND FISCAL POLICIES OF CENTRAL BANK OF NIGERIA ON THE PROFITABILITY OF BANK

(A CASE STUDY OF ZENITH BANK P.L.C, ENUGU)

ABSTRACT

 

The economic policies or interpretation of such policies has always left a key question unanswered, how much authorities do such policies allow the banks to use their powers to lend, to made remarkable impact in the overall economic situation in the country. Like in banks in most developing economic (Nigeria inclusive) the role of providing advice and issuing financial directives lies in the ministry of finance, the Nigeria deposit insurance corporation and the central bank of Nigeria. The federal government relies on these institution for the proper functioning of banks through their monetary and fiscal policies, which could be concretionary or expansionary. This invariably affects the profitability of commercial banks etc. hence the need for this study. The Zenith Bank Plc has been chosen in this regard and except where specified individually, banks becomes the terminology. In this study in depth study is made on how the Apex Banks, the CBN’s financial policies monetary and fiscal affect the profitability of banks and it’s effect and the general influences it has on the economy. Chapter one of the study deals on the back ground, study of the problems. Statement of hypothesis and what significant of the study is. Second chapter studies the literature used. The chapter three emphasis on the techniques and sample collection and questionnaire chapter four presentation of data analysis of the data and the interpretation of finding the last chapter five elucidates on the findings and solutions were proffered. Hence given rise to conclusion.

CHAPTER ONE      –      INTRODUCTION

• Background of the Study 1
• Statement of Problems 4
• Objective of the Study 7
• Research Questions 9
• Hypothesis 10
• Significance of the Study 11
• Scope of the Study 13
• Limitation of the Study 15
• Definition of Terms 17

 

CHAPTER TWO     –      LITERATURE REVIEW

• 2004 monetary policy and the introduction

of N25 billion capital base                                 21

• Monetary and credit policy measure in 2002/2003 31
• Frame work for determine bank cost of funds 33
  • National saving certificate 34
  • Federal government development stocks 34
  • Minimum balance on loan saving account 34
  • Money Transfer 36
  • Policy on SMES 36
  • CBN rediscounting and refinancing 37
  • Characteristics of promissory note 38
  • Paid up capital requirement 39
  • Moral suasion 39
  • Improvement in the payment system 39
• Universal banking practice 40
• Basic principles of commercial banks credit 40
• Credit policies of commercial banks 43
• Factors that determine credit policies in Nigeria 45
• Capital position of the banks 47
• Liquidity and profitability 48
• Impact of CBN monetary policy on banks profit. 53

 

CHAPTER THREE –      RESEARCH DESIGN AND METHODOLOGY

• Research Design 61
• Area of the Study 62
• Population of the Study 62
• Sampling               63
• Source of Data 64
• Research Instrument 64
• Analytical Techniques 65

 

CHAPTER FOUR – PRESENTATION AND ANALYSIS OF DATA

• Data Analysis, Interpretation 67
• Test of Hypothesis 72

 

CHAPTER FIVE –   SUMMARY, FINDING, CONCLUSION

AND RECOMMENDATION

• Findings 80
• Conclusion 81
• Recommendations 83

 

Bibliography                                                    87

Appendix                                                        89

CHAPTER ONE

 

INTRODUCTION

• BACKGROUND OF THE STUDY

Most banking activities are directed towards lending as credit has remained the backbone of banking operations. It is due to the fact that it provide the bulk profits. Today, its vital role in commercial banking activities lie in the direct it has on total economic growth and business development. Every year the (CBN) central bank of Nigeria being the monetary authority that is solely responsible for the insurance of guidelines policies and the interpretation of such, comes up with economic measure roles and regulation under which the bank in the country operate. Such policies direct the use of funds from depositors, stockholders, and creditors in order to control the size of loan portfolio thereby determining the general circumstances under which it is appropriate to make an advance. The economic policies (fiscal and monetary) also aim at aiding the banks to maintain a sound financial and banking system promote confidence in sustenance of reasonable banking services for public as well as ensuring a high standard of conduct and professionalism in banking industry. These rules and regulations are contained in monetary and fiscal policy circular being issued by the central bank at the beginning of every year. The techniques of monetary policies could be broadly divided into two namely:

Direct and Indirect, while the direct approach has been used very extensively in the more developed market economic, the indirect approach predominate in the less developed economics such as Nigeria. Nonetheless, both technology aim at influence the cost and availability of banking system’s credit. The direct system techniques involves fixing of credit ceiling and interest weight rates the Apex Bank (CBN) for compliance by banks, while the direct approach achieves the same objective through the financial market. The most potent instrument of the indirect monetary policy technique is the open market operation (OMO). It is worthy of note that effort aimed at introducing incorrect monetary and credit-control anchored on the use of OMO are themselves a parts of the given receipts which they would present to the gold smith on withdrawal.

According to Paul Sammuelson, (1990-20) money has an anonymous quality making are dollar just as good as another. In relation to the above the goldsmiths recognized that not all depositors of gold when they come back at the same time to collect them. These receipts signified time to collect them. These receipts signified debt and were transferable. Out of the gold deposited, the goldsmith started to lend out part of them and charge a fee for these services.

Hence the evolution of our bank lending. As development continued to surface in the society it become possible for financial institution to emerge and act as bank where people go to deposit their money and other precious metals for future withdrawals and most importantly lending money to the users of fund. Bank lending has ever since then been on the increase with different hierarchy of operations.

 

• STATEMENT OF THE PROBLEM

Monetary and fiscal policies are organized and established system of administration of loan, and its disbursement have so many loopholes which undermine its base exercise and guidance. It is a statement that need not be overemphasis.

These policies being one out of measure used by that nation ability to mobilize and  channel its scare resources to different sectors of the economy. Therefore when these economic policies are seemingly deficient, it poses a big question which needs to be answered. How much authority do such policies allow the banks to use their powers to lend to make remarkable. Impact on the overall economic positions on themselves (hence profit). A major conclusion has been that effective implementation through the financial intermediation will serve a machinery for economic progress and profit enhance ability.

Apart from the explicit policies which are extremely imposed by the CBN implicit rules and regulations are also developed by the bank to guide their internals operations.

But these guidelines are developed from the mature of banking industry. Generally, these policies have three implications. One to the banks to the borrowers and to the economy. Emphasis is laid here on the implication  it has on the banks.

Banks lending dates bank to the days when the hold smiths accepted deposits from the merchants, mostly gold and valuable for safe keeping. At first such establishment were simply like ware house. Depositors were central bank of Nigeria towards the maintenances of prudent banking have fare reading effects on banking and the Zenith bank Plc in particular. The question therefore arises what effect do these policies have on the banking industry and their profitability, customers and the economy? Are these policies and conditions too strength as to constitute a problem to lending?

Do commercial banks ensure full compliance to the monetary and fiscal policies circular?

Are there government objective for introducing these rules and regulations being achieved?

The CBN’s guidelines, rules and regulation normally contained in the monetary policy circular have always been aimed at achieving targeted goals. The commercial banks which are expected to operated to operate under the guidance of the regulations of the CBN have also their own internal lending policies objectives to achieve. All these pose a lot of problems to the bank’s credit decisions worthy of note is the CBN directive that lending should not exceed and foreign transfer to individual should not exceed N500.000 and corporate bodies n2000.000. this has made of possible for banks to have loan or credit dispersal and control money laundering. Based on the above a performance evaluation of the effect of these policies is inevitable to finding out the resultant effect on banks activities using the 2002 and 2003 monetary policies.

 

• OBJECTIVES OF THE STUDY

The purpose of this research work is to undertake an in depth analysis of the effect of the various guidelines introduced for banking operations by the Apex monitoring authority on the profitability of banks using Zenith bank Plc as case study. Other objective includes:

1. Assessment of the extent to which commercial banks have been able to comply with statutory allocation of credit to the different sectors of the economy through the CBN credit to the different sectors of the economy through the CBN guidelines.
2. Whether the commercial banks have been able to maintain the credit ceiling and how far interest rate deregulation contain in policy has been able to affect the volume of banks lending and profitability.

iii.    To test the rigidity of the policies and its effects on the borrowing customers.

1. To draw outlines of credit offered by these banks and their appraisal process highlighting the environmental influence that impinge on the monetary policy and fiscal policy practices in Nigeria.
2. Lending is of paramount importance in the economy hence the research work will investigate lending policies and practical of the banks system in the country funding out how realistic they are in line with the nations economic settings.

Making recommendation where necessary and suggesting ways to ensure effective implementations of these policies to achieve the desired objectives.

 

 

 

 

 

1.4  RESAERH QUESTIONS

One sets of questionnaire was designed for this study as there were used to study on how the CBN policies affects their banking operation and finally their profit.

The questionnaire containing of closed and open-ended questions the need for the open ended questions was to allow the respondents gave a more adequate representation of their particular cases. The banks used were senior management personal.

• Does your bank ensure full compliance to the CBN monetary policies?
• How dos the monetary policies affects the bank?
• Does it effect your bank negatively in terms of profit?
• Do you think that the credit policies have been flexible enough or rigid?
• To what extend have these policies aliened their designed objective with the period?
• Would you prefer deregulation of interest or the pegging of interest rate?
• Do you think that the tax policy has negative effect on the banks use of funds? These are few out of the questions that were asked the banker during the oral interview from which the responses were received.

 

1.5  HYPOTHESIS

For a sound and valid investigation, the under listed hypothesis have been formulated and the validity will be tested in chapter four using appropriate statistical data.

Hypothesis I

Ho:  The implementations of CBN policies have shown adverse effect on the commercial banks profit.

Hi:   The commercial banks have shown fall compliance with CBN guidelines on the allocation of credit to the high priority sector.

Hypothesis II

Ho:  The commercial banks have shown fall compliance with CBN guidelines on the allocation of credit to the high priority sector.

Hi:   The commercial banks have shown fall compliance with CBN guidelines on the allocation of credit to the high priority sector.

Hypothesis III

Ho:  There is no significant difference between the volume of lending by commercial banks in interest rate regulated economy and one of interest rate deregulation.

Hi:   There is no significant difference between the volume of lending by        commercial banks in interest rate regulated economy and one of interest rate deregulation.

 

1.6  SIGNIFICANCE OF THE STUDY

Government over the year have made inspiring calls to all citizens be self reliant and in a bid to achieve this loan to rural borrowers have been increased to 50% and as well sectored allocation (SMES) small scale and medium enterprises as well as according priorities to key sector of the economy.

This research work being an appraisal of the effects of CBN monetary and fiscal policy on the profitability of banks (Zenith) precisely will enable the apex bank restructure and relax the assumed stringent measure in order to make it possible for necessary assistance from banks.

However, the primary motive for any corporate business is for profit optimization and the maximization of shareholders health banks are no exception. From this research, they will realize that proper implementation of monetary and fiscal policy can ensure higher profitability of the banking industry. To borrowing customers, they will deduce some act inherent in loan defaulting an what are the causes of high interest rates and their remedies. This implies that of they continue borrowing funds without paying back, this banking industry may in future become liquid which will result in high interest rate and subsequently high cost of borrowing fund. It will also constitute guide towards future design and formulation of lending policies by the monitoring authority through the implementation of recommended measure.

Finally, this work will be of immense help to other university undergraduates who will like to writ on this topic as well as exposing to monetary and fiscal policies available to the banking industry.

 

1.7  SCOPE OF STUDY

As this research work is aimed at finding out the effect  of monetary and fiscal policy on the profitability of banks, looking at the overall policies and effects on profits it cannot be ruled off of limitations, hence during the course of the study, the researcher was constrained by certain tangible and intangible factors which are.

COST: For any researcher work of this nature to be successful and accurate the cost of affording such is high and not just high but to a student. This made the research work to rely much on the banks Annual report. CBN journals and sites Via the internet, Newspapers, magazines, textbooks, and unpublished speeches.

TIME: The research work has been carried out within the limits imposed by the time constraints, considering the research work such as the academic and non-academic in spite of the some of the banks staff interviewed complained of heavy work load and his made them indisposed to release the necessary data when needed.

QUESTIONNAIRES: Were not easy to be accepted by some people as they had always complained of one things or the other. These inadequately prolonged the time for the assemblage of data.

PAUCTTY OF INTERARTURE: Dearth of current financial statements in the banks also made this research work look impossible. The CBN library is not always opened for every body and  every day and lack of good textbook that treat the  current monetary and fiscal policy made the information needed hard.

 

BIAS: As a human, the researcher may

Be not covering bank officials. Interviewed were reluctant to respond as their response could be a violation of the banks code of conduct and eventually when they do, they seek anonymity. Despite the limitation above, the generalization made on the effects of fiscal and monetary policy on banks  profitability was made relying heavily on the financial reports of banks, then press statements and the proper study of the current monetary policy ie  2002/2003 policies and that of the preceding year.

 

1.8  LIMITATION OF THE STUDY

As this research work is aimed at finding out the effect  of monetary and fiscal policy on the profitability of banks, looking at the overall policies and effects on profits it cannot be ruled off of limitations, hence during the course of the study, the researcher was constrained by certain tangible and intangible factors which are.

COST: For any researcher work of this nature to be successful and accurate the cost of affording such is high and not just high but to a student. This made the research work to rely much on the banks Annual report. CBN journals and sites Via the internet, Newspapers, magazines, textbooks, and unpublished speeches.

TIME: The research work has been carried out within the limits imposed by the time constraints, considering the research work such as the academic and non-academic in spite of the some of the banks staff interviewed complained of heavy work load and his made them indisposed to release the necessary data when needed.

QUESTIONNAIRES: Were not easy to be accepted by some people as they had always complained of one things or the other. These inadequately prolonged the time for the assemblage of data.

PAUCTTY OF INTERARTURE: Dearth of current financial statements in the banks also made this research work look impossible. The CBN library is not always opened for every body and  every day and lack of good textbook that treat the  current monetary and fiscal policy made the information needed hard.

BIAS: As a human, the researcher may

Be not covering bank officials. Interviewed were reluctant to respond as their response could be a violation of the banks code of conduct and eventually when they do, they seek anonymity. Despite the limitation above, the generalization made on the effects of fiscal and monetary policy on banks  profitability was made relying heavily on the financial reports of banks, then press statements and the proper study of the current monetary policy ie  2002/2003 policies and that of the preceding year.

 

1.9  DEFINITION OF TERMS

monetary policy:

Is a policy that deals with discretionary control of money supply by the monitoring authorities in order to achieve stated economic goals.

FISCAL POLICY:

This is the government policy that deals on how banks organization expend than money through taxes. Amidu Mohammed and Woife Simon (2008:45)

PROFITABILITY

This is the excess of enterprises returns over its expenditure.

LENDING POLICY:

The establishment of directives and other use of the funds from stockholders, depositors and other to control the composition and size of the loan portifolio and the circumstances under which it is appropriate to make a loan., specifically, it is designed and is contained in the current monetary policy.

CENTRAL BANK

The Apex bank in Nigeria to which has been entrusted the supervision of issuing guidelines and monitoring of banking operations.

 

FINANCIAL SYSTEM

The Nigeria financial system is made up of the supervisory and regulatory bodies.

1. The banking system
2. Non bank financial institution.

iii.    The financial markets. Amidu Mohammed & Wolfe Simon (2008).

BANK

A bank is a corporate organization that has been licensed by the central body after satisfying the required procedure and demands to work as a bank thereby receiving time deposit. Savings and current to act under the dictates of the constitution.

LENDING

A facility offered by a bank to its customers  or non customers on the ground that such a facility will be returned with the principal and interest when due.

EFFECTIVE LENDING

A question of lending which maximizes the banker’s objectives of development.

FINANCIAL INTERMEDIATION

This is a process by which financial institution accept deposit from the excess householders and lend some to the deposit deficit sectors.

NDIC

Nigeria Deposit Insurance Corporation which was established under decree no 2 of  1998 and commenced operation in March 1989 as a primary corporation responsible for providing insurance cover to the deposit of depositors in a licensed bank and when appropriate grant assistance to such banks when in financial difficulty. The NDIC is generally in control of distressed banks to ensure that depositors are compensated commensurately.

 

Download our android mobile app for more materials

ORDER NOW

COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

FRAUD DETECTION AND CONTROL

IN PARTIAL DEPARTMENTS

 (A CASE STUDY OF MINISTRY OF AGRICULTURE ENUGU STATE)

ABSTRACT

 

This work is designed to examine the assessment of the role of the mass media in anti-corruption campaign. It is organized into five very instructive chapters.

Chapter one deals with the background, statement of the problems, research questions and hypotheses, assumptions and limitation of the study among other things. Chapter two is devoted to the review of relevant materials in the area of study. Chapter three contains the methodology while chapter four concentrated on data analysis and the results of the findings. Also chapter five gives a brief summary of the work.

Through these chapters, the objectives of the study was in that the researcher not only found that the mass media are indispensable but they are also powerful in their influence.

PROPOSAL

 

This research was done to bring to light various frauds in Nigeria banking system, having analyzed the rate and incidence of fraud, causes, forms and solutions. However, this research discussed frauds in chapter as follow

Chapter one: Highlights on the objectives, importance of the study of the causes of frauds, analysis and solution of frauds, the statement of problem, hypothesis formations and definition of frauds.

Chapter two: Deals on the review of literature on frauds in Nigeria banks and foreign banking system, causes of frauds the effect and preventive measures.

Chapter three: Reveals the study area as regard to frauds in Nigeria banks, this was done by employing some sampling methods in the investigation in achieve the aim.

Chapter four: This gives the overall view of the presentation of data and all the analysis involved using interview and questionnaire method.

Chapter five: Discussed the summary, findings recommendation and conclusion

CHAPTER ONE

• INTRODUCTION
• Objective of the study
• Significance of the study
• Statement of study
• Hypothesis formulation
• Scope and limitations of the study
• Definition of terms

CHAPTER TWO

2.1 Review of related literature

2.2 Causes of frauds

2.3 Forms of  frauds

2.3.1 Internal fraud

2.3.2 External fraud

2.3.3 Combined fraud

2.4 Types of frauds

2.5 Effects of frauds in banking industry

2.6 The legal framework and fraudulent practice

2.7 Approach to the minimization of suggestions for the prevention of fraud.

 

CHAPTER THREE

Research Design and Methodology

3.1 Study area

3.2 Sampling Method

3.3 Sources of Data

3.3.1 Primary sources

3.3.2 Secondary Data

3.3.3 Data treatment techniques.

 

CHAPTER FOUR

Presentation of Data and Analysis

4.1 Presentation of Data

4.2 Analysis of Data

4.3 Interpretation of Results

 

CHAPTER FIVE

Summary of findings, Recommendations and Conclusion

5.1 Discussion of Findings

5.2 Conclusion

5.3 Recommendation

Bibliography

Appendix

 

CHAPTER ONE

 

1.1     INTRODUCTION

The commercial world today has been devastated by random breaches of business ethics. This has resulted to rampant occurrence of white collar crimes committed mostly by top and highly educated professional personnel, these crimes are sometimes euphemistically dubbed, executive dishonesty crimes like improper waiver of interest on loans, fraudulent false accounting, falsification, computer fraud, dishonesty, classification of debts as bad debt or irrecoverable, non-disclosure of vital interest by executive, and other financial malpractices, fall into this category.

Furthermore, the government has responded by churning out laws with constant regularity in a bid to meet the challenges posed by these problems. One of such problems is the incidence of fraud in financial institutions especially Nigeria banks. This has attracted at least three major legislation in the past few years. All these relevant enactments will be examined in this project.

It is a notorious fact that frauds are mostly masterminded by insiders, at times in concert with outsiders. They are mostly discovered by tip offs from other staff who feel left out or by accident. Rarely do normal official checks reveal such earth shattering fraudulent scams that are big concern of the financial world.

Moreso, there is need to arrive at an acceptable constitution for the word “fraud” and to deepen our understanding by paying some respect to the statutory construction of financial institution like Nigeria banks.

Having dealt with the general situation of things ion our banking industries, the research work is therefore aimed at pointing out the major causes of fraud in Nigeria banks etc. effects on the Nigeria economy commercial world, individuals especially the depositors (customers of the banks) after the research must have been carried out the above, the researcher then recommended the measures to be taken in order to prevent and minimize the incidence of fraud in Nigeria banks. It should be noted that no bank, big or small is immune  from fraudulent particles. However, bankers should have it as the back of their minds that dignity and hard work are not the only thing required but integrity is also required.

1.2     OBJECTIVE OF THE STUDY

The objective of this study is to enable us know that for any financial institution like bank to be on the move in respect of growth ion the economy, there is need to work out possible solutions that can put a stop to fraudulent practices or bring it to a minimal level

In a nutshell, this project is designed for the following.

1. To determine the rate and the extent of fraud in the banking industry in Nigeria.
2. To bring to light some of the ceases of fraud in our banking sectors.
3. To highlight on the dangers/menace of fraud in Nigeria banks
4. To discover the likely procedure that will enable us determine fraudulent practices nad possible ways of tackling them.
5. To examine critically the management and government measures as regards to the possible checking of fraud and preventive measures.
6. To render some recommendations and suggest possible solutions on the best way fraud could be brought to a minimal.

 

 

1.3     SIGNIFICANCE OF THE STUDY

The study enhances various examinations of the techniques usually employed by the fraudsters. It is structured for all classes who may want to invest in banking industry especially in Nigeria. Bad performance and incompetent discharge of duty as a result of this category’s activities (who are employed by the management) when properly examined will be a contributory to the growth in banking industry. When all measures are strictly adhered to it would go a long ways in bringing fraud to a minimal.

The research work is to enable all and sundry such as: the shareholders, the insurance companies and the management to benefit, the customers so as to rebuild and reverse the already lost confidence of the public and the parties involved in the banking industry. This will enhance rapid growth in the banking industry which will enhance rapid growth in the banking industry which will in-turn enhance the development of this nation Nigeria

 

1.4     STATEMENT OF THE STUDY

The banking industry seems to be s focal point of fraudsters. It is s notorious fact that frauds are master minded by the banker, at time in concert with outsiders. It is incredible that bankers whose watch word should be “Transparent honesty” have turned to become looters and by so doing, creating fear in the minds of the public.

Newspaper pages are jain-picked with reports ob fraud cases in banking industry, however, most computer frauds cases like other frauds are not usually reported by banks and this may be due to the embarrassment it would cause the institution, the loss of public confidence as well as the difficult of prosecution of such cases.

It is estimates that not less than average amount of one million naira per working day of the financial year is made away by fraudsters. The amount lost is quite a set back to our economy. The management of these respective banks have taken cognizance of these fraud issues yet they have not worked out a permanent solutions to this problems.

It is so painful that we do not really know who is trust in the banking industry since they have failed many depositors, shareholders and a lot of non-bankers have been discouraged from banking their money because of the fear that the bank may collapse at any time. They prefer keeping their idle cash with them instead of banking with people dubious characters.

In other words, frauds frustrate the banking habit of the society. Fraud leads to stunted growth of banking industries due to great losses involved it could also hinder commercial growth fraud deteriorates any nation economy development

 

1.5     HYPOTHESIS FORMULATION

Hypothesis is a stated assumption made about a population which must be tested and proved. Hypothesis could be classified into two major types namely.

(H₁)

EXPLANATIONS

Null hypothesis (H_o) signifies no difference or no relationship exist between two or more alternatives variable in other words, it is a hypothesis of “no effect” no difference”

Alternative/positive hypothesis (H₁) is the proposition that may be accepted if the stoical null hypothesis is rejected by the sample evidence.

Let     Ho – Null Hypothesis

Hi – Alternative hypothesis.

1. Ho: Internal and external control system do not reduce fraudulent practice to the minimal in Nigeria

Hi: Internal and external control system reduces fraudulent practices to minimal in Nigeria banks

1. Ho: Legal control of frauds in Nigeria financial institution especially commercial banks has no relationship with the minimization of fraudulent practices.

Hi: Legal control of frauds in Nigeria financial institution especially commercial banks has relationship with the minimization of fraudulent practices.

1. Ho: The introduction of information technology has no great impact on banking industry in respect of services and frauds.

Hi: The introduction of information technology has great impact on banking industry in respect of services and frauds.

d        Ho: Nigeria deposit insurance Decree of 1988 (NDIC) has no power to make regulations guiding specific items with respect to the day to day management of the regulated institutions like the commercial banks.

Hi: Nigeria deposit insurance Decree of 1988 (NDIC) has power to make regulations guiding specific items with regulation to the day to day management of the regulated institutions like the commercial banks.

 

1.6     SCOPE AND LIMITATION OF THE STUDY

In whatever step one takes or makes in life there is the possibility of obstruction or oppositions right there at the corner raising its head against every step made. That is why this study will not be left out in encountering problems in trying to achieve success. Some of these problems includes

Lack of corporations and no response from the commercial banks executives as regards to the information needed from them. They were very conservative in terms of giving out information in respect of fraud which may not expose most of the fraudulent practices. This they claim is done to protect the image of the bank some of these banks said that non of their branches has ever been involved in fraudulent act. Again thyme factor was another problem which is worthy of note. The bank / visited in Ogwashi – uku in Delta state (First bank of Nigeria PLC) was unable to supply me with enough information because of time constraint. Time again was not on my side because of the semester academic exercise I decided to utilize the available information I have for this research. Another pressing problem was that of finance, for this study to be in full swing money is needed to carry on the research effectively. Some items of which money was required were: Transportation in search of resources materials, making of photocopies of materials especially bulky and voluminous ones and the production of the project itself

 

1.7     DEFINITION OF TERMS

In explaining fraud as an element of some other officers, the criminal code ascribes it as a situation correlation with deceit. But a workable definition can be traced to the Osborne’s concise law Dictionary (6^th edition). Thus fraud can be seen as the obtaining of material advantage by unfair or wrong means. This may be either by way of abuse of entrusted reasonability by convert of overt  deceit. In a liberal sense fraud may be used as an umbrella term to cover almost all classes of white collar crimes known to law and business.

Fraud can also be defined as one type of irregularity. It is usually reflect to irregularities involving the use of criminal deception to obtain unjust or illegal advantages (by Okorie Onovo, ACAS, understanding Auditing and Investigation.)

Fraud can also said to be conscious premeditated action of a gang of persons with the intention of altering the truth or fact for selfish personal monetary reward. This involves the use of deceit  and tricks and sometime highly intelligent or cunning methods. This action usually takes the form of signing of documents and authorizing signature outright theft. (by Adeewumi 1986)

There are so many definitions of fraud but the researcher decided to present just three definitions. All definitions seemed to be correct but the former that of that of Osborne’s concise law Dictionary (6^th Edition|) contains elements of frauds appropriately and adequately for the purpose of this research work.

These tow impact element are

That for a fraud to take place, there must be obtaining of material advantage wrongly

There must be abuse of entrusted responsibility or convert of overt deceit that means that in this case a party is exposed to losses while the other part gains

It will be of great importance to briefly mention on the occurrence of fraud to answer the question WHEN DOES FRAUD ARISE?

Fraud arises when a person in a position of trust and responsibility breaks the rule and regulations to advance his personal interest at expense of the public interest he has been entrusted to guard and promote. It also arises when a person through deceit trick or highly intelligent curing gains an advantage he could not otherwise have gained through lawful, just or normal process.

Fraud is a mater of individual choice and opportunity. As human beings the individual takes the advantage if there is opportunity and possible means of getting away with it.

Download our android mobile app for more materials

ORDER NOW

COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

FINANCIAL MISMANAGEMENT THE ROOT CAUSE OF BACKWARDNESS IN LOCAL GOVERNMENT COUNCILS IN NIGERIA. (A CASE STUDY OF EZEAGU LOCAL GOVERNMENT COUNCIL)

CHAPTER ONE

Introduction                                                                                                1

• Background of the study                                                           1
• Statement of problem 6
• Purpose of study 7
• Scope of study 8
• Research questions 8
• Statement of null hypothesis 9
• Significance of the study 9
• Definition of terms 11

CHAPTER TWO

Review of literature                                                                           12

• Sources of revenue for Ezeagu local government

Council                                                                                    12

• Realities about mis-management of finance and

material in Ezeagu local government council                                    15

• Consequences of the acts of mismanagement of

finance by the council                                                              18

• Summary of related literature reviewed 22

CHAPTER THREE

Research methodology                                                                      23

• Research design 23
• Area of study 23
• Population of the study 24
• Sample and sampling procedure 24
• Instrument for data collection 25
• Validation of the instrument 25
• Reliability of the instrument 26
• Method of data collection 26
• Method of data analysis 27

CHAPTER FOUR

• Data presentation/analysis 28
• Summary of the results 39

CHAPTER FIVE

Discussions of Result                                                                        41

• Discussion of result 41
• Implication of the research findings 44
• Recommendations 46
• Suggestions for further research 47
• Limitation to the study 47

References                                                                               49

Appendix A                                                                                      50

Appendix B                                                                                      53

 

 

 

 

ABSTRACT

Ezeagu Local Government Council being one of the oldest local government councils in the state is up till now having more than half of the communities in it poorly developed.

To that effect, there has been a lot of allegations against several regimes in the council of not using the resources of the council appropriately. The pupils of that area are not very happy about the situation of the communities.

This study, in effect has strived to x-ray the truthfulness of the allegation of mismanagement of the available resources. It also has tried to level the reasons why those acts exist there.

In order to achieve success in the study, books and journals were reviewed, questionnaires were administered to a total of three hundred people from the entire 24 communities in the local government area as well as the staff of the local government council.

The data collected were analysed using the chi-square (X²) method of data analysis through the results notable facts were revealed including even other concepts for further research work.

CHAPTER ONE

 

INTRODUCTION

• BACKGROUND OF THE STUDY

Nigeria came into being as a country in 1914 when the then government general Lord Sir Fredrick Lugard, amalgamated the Northern and Southern protectorates of Nigeria. After the amalgamation, the then administration decided to divide Nigeria  into regions for ease of administration. There came up the North-Eastern Region, the North-Western Region, the North Central Region, the Eastern Region and the Western Region.

Each of these regions mentioned above was manned by an officer known as the district commissioner.

The quest for leadership hence started to influence the minds of Nigerians. As years passed, many regions, sections and individuals claimed to be neglected or oppressed by others in power-the British colonial masters.

Prior to the era of amalgamation f the various provinces of Nigeria, was the exploration of coal mine at the Northern side of the popular Udi hills.

On  the first day of October,1960 the British colonial masters granted Nigeria her political independence, officially.

After the independence, there came the first and the second republics. Then, there arose the Nigerian civic war in 1967 through 1970

After the civil war, the local administration was changed to divisional administration. Then, the areas making up the local councils were made to degenerate into various autonomous divisional councils. That was when Ezeagu town became autonomous and was calved out from Udi local government and became Ezeagu local government council area. Then came Oji-River local council area, Awgu local government area, Nkanu local council area etc.

We can therefore see from our explanations so far, that Nigerians have been striving to device the best means to address the socio-poilitical problems of the peoples of the nation. But unfortunately, all the efforts of Nigerians to that effect have not been fruitful to a reasonable degree.

For further emphasis on the efforts of Nigerians n solving the Nigerian’s socio-political problems, lets us consider what other authorities have to say about it. According to reforms of local government system in Anambra State of Nigeria 1976:2

In essence, the functions which local authorities should perform are those services and development activities which are basecally local in out look and should rightly devolve on local representative bodies. In other words local government administration will mean a system of local administration at the divisional and community levels intended primarily to inctiate and direct the provision of services and implementation of projects of the local communities and to co-ordinate the activities of the state government functionaries in the divisions in such a way as to ensure proper decentralization of functions and in the planning and execution of general development and management of their own affairs. In this way, it is hoped to faciliatate the exercise of democratic self-government, close to the grass-root of the society.

The above citation boarders on the objectives of the local government systems as they are stated with legal back-up in the above stated government document. But, a close look at the rate of development in local government areas in Nigeria would very often portracy a snail-movement in the rate of development among the component communities in them.

Take Ezeagu local government area of Enugu State as on instance, since it was carved out from Udi local government in 1974. It still counts as one of the poorly developed local government areas in Enugu State, inspite of numerious revenue sources available to it. Even the ones generated are not appropriately utilized. Materials are not left ut.

As a local government area made up of twenty-four communities or towns, Ezeagu local government area has at least ten towns or communities with out god motorable roads two third of the towns cannot a boast of Electricity supply, only a few of the entire towns, in the local government area has pipe-borne water or even water bore holes in them. Staff salaries are owned for many months now, resulting to protracted strike action of the local government workers. Schools in the areas are poorly maintained. Infact many schools have their roofs blown off by wind storm or damaged by many ther forces and are left unrepaired for many yaers now.

Motor parks at Iwollo Oghe, Nkwo Umumba, Orie Imezi Owa, Afor ugwu, Aguobu Owa and other notable places are poorly maintained most of the prominent markets in the area do not have standard buildings in them. Government hospitals are not built in many of the communities in the area. Thus giving the private medical practitioners the chance to exploit the poor masses; and in turn raising the cost of health care gulleys are many at places like: Imezi Owa, Okpogho, Awha, Mgbagbu Owa, Umumba, Obele-agu umana, Olo and a host of other towns; that are left umathended to over the years.

Rumours always go round that money generated by the council (both internally and externally) is not often used appropriately.

Also others say that staff do not give proper account of financial transactions they run for the council.

People in this local government area are therefore not very much happy with the situation of the development activities in the area.

This unhappiness manifests in: people residence to payment of taxes people’s decline in the process of electing local government officers; workers going n strikes and continuing in it for several months; people’s health condition being jeoprdized; in addition to a host of other consequent problems.

Owing to all the afor-mentioned conditions and subsequent problems, it therefore becomes pertinent for one to examine the standard at which the money generated by Ezeagu local government council is managed. That is to say that the object of this research work is to x-ray the possible causes of mismanagement of finance in Ezeagu local government council, with a view to suggesting lasting solution to the problem. Thus, there will be peace, understanding as well as even development among the communities in the local government area.

 

• STATEMENT OF PROBLEM

Since all the above stated conditions have constituted a cog-in-the wheels of the development activities in Ezeagu local government area, we could therefore rightly state categorically as follows:

• Ezeagu local government council functionaries had not been utilizing revenue generated within the local government area for the development of the area particularly with respect to the provision of infrastructure
• Infrastructural materials when provided were not always shared evenly among the various communities in the area.
• Some staff of the local government did not render proper account of their stewardship.
• The council did not monitor the activities of the staff very effectively
• Those acts of mis-management had generated a lot of unconformity between the government and people in the area.

 

• PURPOSE OF THE STUDY

This study has the following targets to achieve at the conclusion of it. That is to say, the purpose of this piece of work area as follows.

• To find out the reason (s) for which the council did not always utilize the money it generated judiciously.
• To establish the reason for which materials procured were not evenly distributed in the area.
• To determine the quality of the internal control system operated in the council
• To x-ray the impacts which the acts of mis-management of finance would have on both council and people in the area.
• To investigated the reasons for which some staff did not render proper account of financial transactions they run for the council.
• To provide possible solutions to the problems generated by the acts of financial mis-management in Ezeagu local government council
  • THE SCOPE/DELIMITATION OF THE STUDY

From our discussion so far, we can understand that the issue of financial mis-management deserves critical look in most of the local government councils in Nigeria. But for want of time and other reasons, the researcher has decided to focus his attention to Ezeagu local government council of Enugu State, for an in-dept work. Tis study is therefore focused mostly on the rate and degree of development in relation with the mode of management in Ezeagu local government area.

 

• RESEARCH QUESTIONS

We wish to probe further on the above stated problems as follows

• Why did the council not utilize the money it generated as appropriately as it was legally planned to be used?
• Why were unfratuctural materials when provided not always shared evenly among the communities in the area?
• Why did some staff f the local government council not render proper account of their stewardship?
• What impacts had the acts of financial mismanagement on the council and on the entire peoples of the area?

 

• STATEMENT OF NULL HYPOTHESIS (HO)

For the purpose of establishing the true solution to the problems stated above the researcher wishes to put forth the following null hypothesis;

1. The council did always utilize the money it generated appropriately.
2. Infractructural materials when provided were always shared evenly in the area.
3. Some staff of the council did account properly for their stewardship.
4. The acts of mismanagement had not generated several unpleasant conditions in the local government area.

 

• SIGNIFICANCE OF THE STUDY

For long time now, Nigeria as well as the whole world have been clamouring for democracy.

In effects, no democracy can survive without justice, equity and fairplay in government and several other human activities. It is therefore wise to investigated the extent of financial mismanagement in Ezeagu local government council, so that the council will know its various pit-falls.

Also, this work is capable of providing a nice medium for government public relationship in the area.

Again, through this study, the possible causes of financial mis-management in the council in question, would be made known and the solutions to the problems they thus generate, will be provided.

Furthermore, this piece of work, shall serve as a vital tool for promotion of peace, understanding and progress between the council of Ezeagu local government and the people in the area. Thus democracy would be fostered and consolidated in the area.

This peace of work is capable of serving as an effective guide to an active and duty conscious government in Nigeria, especially at local government level.

 

 

 

 

• DEFINITION OF TERMS

MIS-MANAGEMENT: This is a system of managing something wrongly or badly.

FINANCE:- This is a system of funding money or providing money for a project.

FINANCIAL:- Concerning money or finance. A way of giving financial support to something.

COUNCIL:- A group of people elected to manage affairs in a local government area or city.

BACKWARDNESS:- A way of doing something in the reverse direction.

Download our android mobile app for more materials

ORDER NOW

COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

FINANCIAL MANAGEMENT AND ACCOUNTABILITY IN NIGERIA LOCAL GOVERNMENT SYSTEM

A CASE STUDY OF AYAMELUM LOCAL GOVERNMENT AREA ANAMBRA STATE

ABSTRACT

“The unfortunates general feelings among Nigerians is that, it is no crime to misappropriate to personal use, government resources or funds with careless abandon”.

Against the backdrop thee is problem of financial management and accountability in Ayamelum local government council because of the tagged stereotype that what belongs to nobly. This is why the Ayamelum local government operator only seek to satisfy personal conscience to the detriment of the public.

Despite all the provisions in financial memorandum and checks and balance system, there, the continuous cases of corruption and embezzlement which undermines the objectives of the local government being achieved. This phenomena has been exacerbated in recent times by massive poverty, deprivation and generally aver low standard of living in the general Nigerian society which has not been help by long years if military misrule and massive corruption in the highest lungs of government.

The objective of this research work is it examines the various provision made in local government reform guideline of 2976, 1988 other recent form. The provision of the financial

Memorandum and instruction and relevant documents for effective financial management and accountability in local government system.

The policy makers and future researcher will  find it useful. In view of these stated objectives this research work is intended to critically study the problem associated with financial  management and accountability in Nigeria local government system.

And the services which the local government is suppose to render were studied hoping that findings and recommendation proffered by the researcher will automatically particular and the society at large.

CHAPTER ONE

• INTRODUCTION 1

1.1     BACKGROUND TO THE STUDY                     1

• STATEMENT OF THE PROBLEM 4
• OBJECTIVE OF THE STUDY 6
• SIGNIFICANCE OF THE STUDY 8
• THE SCOPE AND LIMITATION OF

THE STUDY                                                       9

CHAPTER TWO

RESEARCH PROCEDURE                                          11

• LITERATURE REVIEW 11

2.1     CONCEPT OF LOCAL GOVERNMENT           14

• DEFINITION OF FINANCE 15
• DEFINITION OF MANAGEMENT                             16
• DEFINITION OF FINANCIAL MANAGEMENT 17
• BRIEF HISTORICAL –

DEVELOPMENT OF ACCOUNTING                18

• DEFINITION OF ACCOUNTING 19

2.6.1  ROLES OF ACCOUNTING OF THE SOCIETY 23

• ROLES OF ACCOUNTANT IN THE SOCIETY 25
• ACCOUNTING ASSUMPTION AND –

PRINCIPLES                                                       26

• IMPORTANCE OF ACCOUNTING

INFORMATION                                                  30

• PRINCIPLES OF ACCOUNTING 31
• USERS OF ACCOUNTING INFORMATION 33
• QUALITIES OF ACCOUNTING

INFORMATION                                                  36

• ACCOUNTING SYSTEM 41

• DEFINITION OF ACCOUNTABILITY 45
• GENERAL OF FUNDS OR REVENUE IN LOCAL

GOVERNMENT FUNCTION OF FINANCE               51

• FUNCTIONS OF FINANCE 53
• SERVICE RENDERED BY LOCAL

GOVERNMENT                                                      56

• FORMULATION OF HYPOTHESIS 56

CHAPTER THREE

• RESEARCH DESIGN AND METHODOLOGY 59

3.1     INTRODUCTION                                              59

• RESEARCH DESIGN 60
• INSTRUMENT FOR DATA COLLECTION 61
• DETERMINATION OF SAMPLE SIZE 62
• METHOD OF SAMPLING USED IN

SELECTION                                                      63

• METHOD OF STATISTICAL ANALYSIS 63

 

CHAPTER FOUR

• DATA PRESENTATION AND ANALYSIS 64

4.1     INTRODUCTION                                                         64

• PRESENTATION AND ANALYSIS OF DATA 64
• TEST OF HYPOTHESIS 79
• HYPOTHESIS I 79
• HYPOTHESIS II 82
• HYPOTHESIS III 83
• HYPOTHESIS IV 85

CHAPTER FIVE

• FINDINGS, SUMMARY, CONCLUSION AND RECOMMENDATION

5.1     INTRODUCTION                                                         88

• FINDINGS 89
• IMPLICATION OF RESULTS AND FINDINGS 92
• SUMMARY 96
• CONCLUSION 98
• RECOMMENDATION 99

BIBLIOGRAPHY                                                          104

QUESTIONNAIRE                                              109

 

 

CHAPTER ONE

• BACKGROUND TO THE STUDY

Before Nigeria became colonized, local government was carried out by traditional institutions more importantly, the Emirs, Obas, Chiefs, Age grade and village council were the ones directing affairs of the Nigerian traditional political system in various ways especially in revenue generation and utilization. Even the era of colonial rule, the British colonial officers ruled either through the instrumentalities of the traditional authorities where they existed or when it is not existing they created one where this is system of government known as indirect rule. But this time, it was modified in the proclamations of the British government revenue  proclamation ordinances which gave the councils great power to levy taxes on property income at a special and or that rates, a s well as power to hire and fire staff below four hundred pound starling per annum. The traditional riles collects these tax for the local government reform of 1979 amplified by the 1979 constitution of the  federal republic f Nigeria make provision for local government in each state of federation. This in effect brought about a three tier system of government federal, state and local government. Each of this is a government with a detained function in its area of  jurisdiction since them the local government has became an essential instrument for rendering certain basic services which demand intimate knowledge of the need, conditions and peculiarities of the area concerned. Egbulem (1985 :7 ) observe that;

“The local government have been providing services which are essentially complimentary to those of the state and federal government so as to meet the common aspiration of the people.”

It means that local government complement and extends the national government. It brings national government closer to people and make its impact felt in all the nooks and  crannies if the society. Okoli (1998:6) succinctly put it that;

“local government is, then the practical realization of the ideology of the national government. Whatever objectives the national government want to achieve are carried out the local level through the agency of the local government.

Dasaki panel on local government

Administration  made it explicitly that;

“local government is expected to become more meaningful in facilitating social and economic development at the grass roots level central to the achieve meat of these objective is the financial viability of this tier if government”.

Therefore, there quality of development in rural areas within a local government will be dependent a local extent of revenue or  financial available, its management and accountability by the local government and its staffs.

 

 

1.2     STATEMENTS OF PROBLEM

In embarking on 1976 local government reforms, the federal military government was essentially motivated by the necessity to stability and rationalize government at the grass root. To large a mirage between the people and government institutions at their most basic levels. To ensure that every stratum of Nigeria society benefits from continued prosperity of the country through the availability of social amenities. Indeed necessities such as electricity, water supply, improved transportation network, health facilities and so on.

To achieve these lofty ideals there is need for prudent and frugal management of local government limited resources by local government managers and practitioners. Almost all the former elected local government  and sole administrators and councilors left legacies of hopes  betrayed and promises compromised for their different local government areas.

The 1984 general buhari regimes  miscellaneous sum recovery tribunal which probe into the activities if appointed chairman, councilors and other functionaries of local government council  directed payment into government coffees sums of money ass surcharge or refunded to local government, some functionaries were dismissed or prematurely retired from service, or were forced to resign. This action taken had to do with public accountability.

For about three decades after the inauguration of local government reforms, local government still suffer from the continuous whittling down adequate fund to undertake capital development project. Staffing g arrangement ensure virile local government system is inadequate.

The problem can be summed up as follows:-

1. the inability to proceed with essential capital development project because of limited revenue resource and accessibility to loan funds.
2. Ineffective financial control and management both internal and external.

 

An attempt will be made to investigate the causes of these problems, examine the system of management and accountability with a view to making suggestion and recommendations for the improvement of local government financial management in Nigeria.

 

1.3     OBJECTIVES OF THE STUDY

The objective of the study are to examine the various provision made in local government reforms, local government edict of 1996 of Anambra State, financial regulations, memoranda and instruction, the federal.

Republic of Nigeria constitution of 1979 and subsequent amendments of 1989 and other relevant documents for effective management and accountability in local government system with a view determining compliance by local government functionaries and  practitioner.

In addition, the study intends to investigate the various resources available to the local government and to explore      “ways of effective generation and improvement of revenue collection channel, both internal and external, in order to made funds available to finance capital development project with a view of creating wealth and

” better life” for our rural dwellers and appraise facilities available to ensure that local government spends funds so derived in a proper manner, for the purpose which the funds are meant for and in accordance with government riles and regulations.

It is therefore, the aim of this study to make some incursion into the operation  procedure of local government with emphasis on finance and to ascertain  the a\extent to which management and accountability could greatly bring about the transformation of rural and marginal communities as message the1976 guideline for local reforms and suggest ways and means for improvement.

 

• SIGNIFICANCE OF THE STUDY

The significance of the study is to stress the need for adequate financial management and accountability of Nigeria local government especially to the case study Ayamelum local government for improved performance and maximum  efficiency.  Thereby making local government projects.

Researchers, local government administrators staffs, politicians and those who may want to know what the local government is doing relation to its financial obligations and management of various available resources. The power of local government over its revenue and revenue sources and way of extracting them will finds the study useful.

 

 

 

1.5     THE SCOPE AND LIMITATIONS OF THE STUDY

The scope of the study lies in the case study Ayamelum local government area and limited to  financial management and accountability in Ayamelum local government of Anambra state.

Ayamelum local government is also a clan make – up of eight communities, omasi, Omor, Umumbo, Ifite – Ogwari, Umueje, igbakwu, Umuerum and Anaku, the headquarter.

It is bounded in the North and East by Uzo – Uwani local government Area of Enugu State. In south by Awka North local government in the west. It has about 150,000 population covering area of about 3000,000 km.

The new local government which was created from Oyi local government in 1996 have witnessed most of the crisis  associated with management and accountability during the short of its existence,. It is a typical specimen of rural local government in the country, devoid of almost all the basic necessity of better life”,

There is no single accessible road in the local government area and has not benefited from rural electrification except few communities. Lack of pipe borne water and inadequate health facilities and poor internal revenue base are evident by nearly absence of market, motor part and industries.

There absence of government activities in the local government area in terms of necessities of life made social life uncomfortable.

The neglect suffered by this area from eh former and present political administrative arrangement had generated apathy on  the part of the people and had resulted in complete divorce between the people and government. Excusive politicking and made even modest progress impossible in

Download our android mobile app for more materials

ORDER NOW

COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

FINANCIAL ACCOUNTING SYSTEM IN PRIVATELY OWNED ENTERPRISE

(A CASE STUDY OF J.N IJEZIE AND SONS (NIG)

ABSTRACT

 

          Financial Accounting system in a privately owned enterprise, has been the source for cheek and guidance in management controls.

Research on financial Accounting system in a privately owned enterprise has been carried out with a case study of J.N Ijezie and Sons (Nig).

In guiding the study, research questions were formulated, using simple percentage data collected are critically analyzed and the following ascertained:-

1. Accounting aids in planning, control and decision-making.
2. It helps in knowing the following:- the profit or loss made by the enterprise or company at a given period of time and aids in the detection of fraud.

• The accounting information obtained from the management is of great help to the recording of business transactions.

1. Engaging in financial accounting system leads to good prospect for the privately owned enterprises.

Privately owned enterprise does not strictly follow the accounting laid down rules and regulations and the result of it is that adequate information for further accounting processes is lost. Some privately owned enterprise do not employ qualified or professional Accountant (s) in their organization.

To the above findings, it is recommended that proper books of accounts be kepts. Private enterprise or company can adopt financial accounting system. The statutory laid down rules and the regulations to be adhered to the private companies and proper books of account and documents immediately adopted.

The first chapter opens with the general back ground of the study are then went thorough the statement of the problem, the objectives of the study.

Chapter two starts with the literature review on the research on financial Accounting system in privately owned enterprise. Chapter three deals with the means of collection of data.

Chapter four deals with the research questions and its findings in a privately owned enterprise of J.N IJEZIE AND SONS (NIG.)

Chapter five  now deals with the summary of findings and results, it also raise issues for further research on the topic.

CHAPTER ONE

INTRODUCTION

• Background
• Statement of the problem
• Purpose of the study
• The scope of the study
• Research questions
• Significance of the study
• Definition of terms

CHAPTER TWO

REVIEW OF LITERATURE

• Definition
• Accounting principles
• Documents relating to sales
  • Document relating to purchase
  • Document relating receipt of goods
• The entries of basis data in subsidiary books
  • The day book
  • The cash book
• The concepts and convention
• The principles of double entry
• Classification of Accounts
• Trial balance
• Legal requirement

 

 

 

CHAPTER THREE

METHODOLOGY

• Research design
• Types and sources of data
• Areas of study / population
• Sample and sampling techniques
• Research instrument
• Reliability and validity of instruments
• Method of data collection
• Method of data analysis

 

CHAPTER FIVE

• Discussion of Results

5.1     Discussion of findings

• Conclusions
• Implications of the research findings
• Recommendations
• Suggestions for further studies
• Limitations of the study

Bibliography

Appendix

CHAPTER ONE

 

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

          DEFINITION: Accounting is a science and art of recording business transactions in a systematic way, so that the book will exactly show the owners’ affair at any point in time. Or summary put thus: Accounting is the recording of business transaction either in words of figures for references purposes.

Another commonly quoted definition that is produced by the “American Institute of Certified and Public Accountants (AICPA) in 1941 which states:- Account is the act of recording , classifying and summarizing, in a significant manner and in terms of money , transactions and events are in parts at least, of a financial character and interpreting the results thereof”  this definition implies that  accountancy has a number of components. Some technical (such as recording data) and some that beg further questions (such as “in a significant manner”. Significant to whom and for what? ) It should be well noted that financial accounting comprises the organization and its owners, the employee and the outside world. By owners we mean the proprietors in the sole trading business, partner in partnership, members in co-operative society, shareholders in Limited Liability Company.

As a discipline, accounting deals with the recording, analyzing and forecasting of incoming liabilities and wealth of business and other entities. This recording of the flow of economic transactions is in money terms. And it has legal, principles, concepts and conversion requirements. Generated financial data is recorded in the proper bocks adopting the laid down rules or procedures for such. The data when processed provides the accountant with the adequate information which is to be used for the preparation of financial statement that could be presentable to all users of such statement.

Brief History of case study- J.N IJEZIE & SONS (NIG). This is privately owned enter prose established in 1985. About 21 years ago and was registered in Nigeria lawfully.

The office was located at ziks Avenues by Edinburgh junction including the workshop. It deals in the processing  of palm- kernel and the extraction of palm kernel oil.

Though, it is privately owned, it has the administrative unit, accounting units, purchasing and store unit, personnel and selling unit. The work shop was equipped with a machine used in extracting palm kernel oil from the kernel

A physical view of the business activities presents it as well organized with hard working staff. The enterprises in its performance has a good prospect for the future sustenance. Currently, it has about 30 direct staff with some contract or distributors

At the commencement of the operators, the strength of the staff was eleven with J.N IJEZIE  as the Director and another man G. Ede as the manager who then serve as general overseer.

But as a researcher in this enterprises my main business centers mainly on the financial accounting system which the evidence already shown by recorded information that reveal deficiencies in the accounting system.

 

• STATEMENT OF THE PROBLEM

The research study as regards to the “FINANCIAL ACCOUNTING

SYSTEM IN PRIVATELY OWNED INTERPRISE” tries to determine the problems arising from setting up a standard owned financial accounting system in a privately owned enterprise with practical application to J.N IJEZIE & sons (Nig). And to guide this study are the following:-

1. How to ascertain the problems existing in financial accounting system of the above enterprise.
2. Unable to adhere to the standard requirement for establishing financial statement.
3. No proper financial accounting system
4. No value for Accounting information and because of this, necessary accounting information’s are lacking

 

• PURPOSE OF THE STUDY

The purposes of this study are: –

1. To ascertain the problems existing in the financial accounting of the privately owned enterprise.
2. To make business organization appreciate and adhere to the standard requirements for establishing financial statement.
3. The concerned business organization is made to known and establishes proper financial accounting system.
4. Reasons for accounting information are highlighted.

 

• THE SCOPE OF THE STUDY

This study is strictly formulated to give solution to the question of

how financial data can be adding financial accounting system in a privately owned enterprise: like J.N IJEZIE & SONS (NIG).

• RESEARCH QUESTIONS

1. What are the problem existing in financial accounting system of the privately owned enterprises?
2. How can we effect proper records in a financial accounting system in privately owned enterprises?
3. How can proper financial accounting system be established in newly rivals owned enterprises?
4. Is the financial accounting system information useful after all?
5. What are the roles of financial accounting in the privately owned enterprises?
6. What are the merits of the private enterprise engaging in financial accounting system?
7. What are the proper accounts in the financial accounting system?

Download our android mobile app for more materials

ORDER NOW

COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE