MANAGEMENT OF RISK IN AGRICULTURAL FINANCING (A CASE STUDY OF NIGERIA AGRICULTURAL AND COMMERCE BANK PLC, ENUGU BRANCH)

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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

 

CHAPTER ONE:

• Introduction

1.1     Background of the study

1.2     Statement of the problem

1.3     Objectives of the study

1.4     Significance of the study

1.5     Statement of hypothesis

1.6     Research Question

1.7     Scope and Limitation of the study

1.8     Definition of terms

CHAPTER TWO:

• Literature review

2.1     Project Management

2.2     Management Techniques

2.3     Role of Finance in Agricultural development

2.4     Risk in agriculture

2.5     Poverty alleviation through agriculture

2.6     Farmer defence against risk and uncertainty

2.7     Uncertainty precautions

CHAPTER THREE:

• Research design and methodology

3.1     Source of data

3.2     Source of primary data

3.3     Source of secondary data

3.4     Literature question

3.5     Sample used

CHAPTER FOUR:

• Data presentation and analysis

4.1     Presentation of data

4.2     Analysis of data

4.3     Test of hypothesis

4.4     Interpretation of result

CHAPTER FIVE:

• Summary of finding

5.1     Discussion of finding

5.2     Conclusion

5.3     Recommendation

Bibliography

Appendices

 

 

CHAPTER ONE

 

• INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Agriculture has been the main stay of Nigerian economy before the Nigeria independence until the era of oil boom.  Statistics show that in 1963/64 agriculture provided about 50% of the Gross National Product (GNP) and 88% of the country’s basic foreign exchange earner of crops like palm oil, palm kernels, cocoa, cotton, groundnut, cereal, woods as raw material for their industries.

Although after independence a gradual drift in cities in search of white-collar jobs began and this handicapped the agricultural sector, which lead to a serious decline in agricultural produce, compounding this problem is the oil euphoria, which added more impetus to population drift and neglect thereby leading to Nigeria’s loss of agricultural manpower.  Nigeria quickly turned from a food exporting country with bill accounting for 18% in 1979 and more than 26% in 1983.  Total import bill at this rate compared with 8.5% in 1971 was a sign of total collapse of the agricultural sector.

It is in realization of the importance of agriculture in overall economic growth and development of any nation that various Nigerian governments (military and civilian administration) decided to take a bold and realistic step to bring agriculture back to its position of prominence in the national economy.  Government has played significant roles in Agriculture financing with several strategies towards risk management.  Some of these role are:

1. SUBSIDIES: Aimed at encouraging farmers to produce more.  The effect of subsidy reduces the cost of production for the producers since they will be required to pay less per unit of farm inputs (fertilizers seeds palm).  Also the producers are able to purchase more of these subsidy inputs, which if used intensively as recommended will lead to increased product.  The resultant effect would be fall in prices if demand does not increase more than proportionately.
2. AGRICULTURAL RESEARCH INSTITUTE: The establishment of the research institute to develop high yielding and the disease resistant seedlings and livestocks.  Such research institutes are National Roots Research Institute, Ibadan and Livestock Research Institute Von etc.
3. FARM SETTLEMENT: This was established in early 60’s.  It involves the government in the acquisition of land for agricultural production and marketing.  By this means farmers were able to get parcels of land from the government without actually paying for the lands in order to enhance their agricultural products.
4. LAND USE DECREE OF 1978: In this year the government promulgated the Land Use Act which sought to vest ownership of land on government.  The use of land for agricultural purpose was recognized under this act with a view to eliminating the customers impediment to mechanization.
5. STRATEGIC GRAIN RESERVE: The original target of the federal government was to build up to 250,000 tonnes strategic grain reserves capacity during the 1975 – 80 development plan period.  But very unfortunately very little was achieved because of the light domestic market situation.
6. OPERATION FEED THE NATION (OFN): The take-off of operation feed the nation was aimed at boosting food production for the growing nation and to encourage everybody to be involved in farming irrespective of social status but unfortunately this could not live long due to change of government.
7. FINANCIAL INSTITUTION: Research finding has shown that agricultural finance is very important. Based on this the federal government established Nigerian Agricultural Co-operative Bank (NACB) in 1973 to help in managing and financing agricultural production.  Commercial banks were also given credit calling by the federal government through the Central Bank of Nigeria (CBN) to contribute towards agricultural financing and also authorized to open up rural branches.
8. AGRICULTURAL CREDIT GUARANTEE SCHEME:

This decree of 1977 No. 20 was established with N100m which 60% of the subscription was made up of the federal government and 40% by Central Bank of Nigeria.  This was meant to help farmers in their need necessary to boost agricultural produce and on the other hand to provide guarantee in respect of loans granted by commercial and merchant banks for agricultural purpose with the aim of increasing the level of bank credit to the agricultural sector.  The liability to the guaranteed fund is 75% of the amount in default subject to a loan to an individual of N50,000 maximum and co-operative or limited liability company a maximum of N1 million.

Basically, all these programmed/scheme are:

• Aimed towards providing or marking available.
• Investment funds for and improvement of agriculture.

Unfortunately, for variou

THE IMPACT OF INFORMATION TECHNOLOGY ON CUSTOMER’S SATISFACTION AND PROFITABILITY IN NIGERIA BANKS. (A CASE STUDY OF TRANS INTERNATIONAL BANK PLC)

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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.

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ABSTRACT

The main objective of any financial institution is to harness their profit making potentials and subsequent development and growth.  An the purpose of this study is to urge banks to adopt the efficient use of information technology in all their banking operations.  This will in turn load to increased customer’s  satisfaction and patronage which will eventually translate into improved deposits.  Therefore in this world of dynamism, all banks in order to achieve their set goals must be innovative and adopt the use of computers in their routine operations.  It has been proved that the use of computers for auditing  and accounting purposes are more efficient   and reliable.  The bank manager   can easily punch  the computer from  his own office without consulting any of his subordinate and all the information’s he require  will  appear at a twinkle of an eye.  This has gone a long way in maintaining water tight internal control and at the same time reduced fraud in the  banking sector.

Data collected were through questionnaires and hypothesis research statements were duely tested using chi-square technique.  Data analysis and interpretation gave the following findings:

Information technology has increased  customers satisfaction in Trans International Bank PLC.

Information technology has greatly unchanged the profitability of the bank.

Information technology has let to increased bank deposit.

Information technology has led to development and growth of the bank.

Based on my findings, I have recommended that banks should endeavour to:

Computerize fully at aspect of their operations.

Embark on intensive training of their state in order to acquaint them with the uses and applications of computers.

Be  prudent in management  of their resources and adhere to ethics and law guiding banking operations in Nigeria.

 

TABLE OF CONTENTS

CHAPTER ONE

• Introduction 1

1.1   Background of the Study                                        1

1.2   Statement of the problems                                              3

1.3   Purpose of the Study                                             4

1.4   Research Questions                                                5

1.5   Research Hypotheses                                                     6

1.6   Significance of the Study                                       7

1.7   The scope of the study.                                          9

CHAPTER TWO

• Literature Review 10
  • Introduction 10
  • Information technology and management

information system                                                11

• The concept of information technology

and competition.                                                    16

• Information technology and the Nigeria

Banking environment.                                            18

• Effect of information technology on customer’s

satisfaction in Nigeria financial institution.                      23

2.6   Profitability of the Nigeria Banking Industry            25

CHAPTER THREE                

• Research design and Methodology. 27

3.1   Research Design                                                    27

3.2   Area of the study                                                   29

3.3   Population of the study                                          29

3.4   Sample and sampling technique                               29

3.5   Instrument for data collection.                                29

3.6   Method of data analysis.                                         30

CHAPTER FOUR

• Data Presentation and Analysis 31

4.1   Hypotheses Testing and Results                              31

CHAPTER FIVE            

• Findings, Recommendations and conclusion. 45

5.1   Discussion of findings                                           45

5.2   Recommendations                                                  48

5.3   Conclusion                                                           49

5.4   Limitations of the study.                                        50

References                                                            52

Questionnaire design                                             54

CHAPTER ONE

• INTRODUCTION

1.1   BACKGROUND OF THE STUDY:

               Owing to the voluminous work and the need to meet up with customers demand in the banking industry, most banks have developed and adopted the use of high-tech electronic devises such as computers for more efficient services.  computer plays a vital role in storage, processing, analysis and retrieval of information’s within a twinkle of an eye.  Suffice it to say that electronic banking is the order of the day in most Nigeria banks today.  The most important needs of computer is for customers satisfaction and enhanced profitability.  Computerized  banks quickly respond to customers demands which include; ascertainment of account balance, withdrawal or deposit of cash and other inquires.  With the adequate of automatic teller machine (ATM), banks can also  offer quicker services to their numerous customers outside  the banking hall.

Furthermore, online banking off the customers the opportunity to withdraw or deposit money from their accounts at any branch in Nigeria.

The extend to which electronic banking have aided banks in satisfying their customers and at the same time enhance their  profitability is another issue to be examined.  Trans international bank Plc (TIBPLC) has been chosen as a case study for the purpose of this project.

Historical Background:   Trans international bank plc was established on March, 1989 with its headquarters at Ibadan, Oyo State of Nigeria.  As a new generation bank born out of  a vision to set standard, in customer satisfaction and profitability making.  The seed of passion, creativity and team spirit sown by the founders did not  take much time to blossom.

The first  nine months of operation  recorded an after tax  profit of three million and one hundred  thousand naira (N3.1million).  This grew to N7 million in the year 2000.

Despite  the hard economic conditions which led to many banks going distress in the  90 TIB  remains solid with a high capital base to date.  Since then, it has continued to grow in  leaps and sounds.  More branches  have been  opened with within Ibadan and Lagos State.  Within it’s twelve years of operations, shareholder fund has grown from N130 million in 1994 to N1.022 billion by the end of year 2003.

Also total deposits and gross earnings grew to N8.7 billion and N1.9 billion respectively.  This result into 81.25% and 73% growth between 1999 and 2003 respectively.

TIB  is  one of the few banks among it’s pears to be quartered in it’s own corporate headquarters christened TIB house.

 

• STATEMENT OF PROBLEM

Owing to government stringent regulation of  banking industry in Nigeria and the need to remain in business, most banks have adopted various measures in order to remain in Business while some have gone distress.  Currently every bank is aspected to maintain N25 billion capital base in order to be in operation.  TIB Plc is one of the new generation banks that has remained in business within the banking indu

CAPITAL MARKET IN NIGERIAN’S ECONOMIC DEVELOPMENT

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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

 

ABSTRACT

 

Nigeria has gradually come of age in terms of financial institutions, which make up the system.  This is seen for the wide spread establishment of many financial institutions.

Meanwhile, way through which capital market as the complex of institution and mechanize by which intermediate and long term funds are pooled and made available to business, government and individuals and instrument already outstanding are being treated which in turn enhance economic boast are highlighted in this piece of work.

The various problem encountered by individuals and firm aid of course the government in actualizing the object of this study are exhaustively treated.

CHAPTER ONE

 

• INTRODUCTION

 

1.1     BACKGROUND OF THE STUDY:

An economic is said to be growing if there is a sustained increase in the actual output of goods and services per head.

Likewise a nation economy is being developed when there is increase in the real per capital income and substantial positive transformations are geared towards the various sector of the economy.  In comparing per capital income of some European nations namely Germany with that of Nigeria though Nigeria being a third world country, it is quite pertinent to note that the rate of development of dear nation Nigeria, is far too slow.  In respect of the above, capital market which is a mechanism of fund provision and allotment is used as an insight to evaluate the economic rate of development of Nigeria.  It is that junction that the researcher deemed it fit to adopt a though – provoking topic as capital market in Nigerian’s Economic Development.

 

• STATEMENT OF PROBLEM:

The research work is designed to know the role of capital market in Nigeria economic development .

 

• OBJECTIVE OF STUDY:

To describe how capital market help economic development through the

ADEQUACY OR INADEQUACY OF WORKING CAPITAL:    ITS IMPORTANCE AND IMPLICATION

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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

 

ABSTRACT

          The objective of this study is to evaluate and examine the adequacy or inadequacy of working capital: its importance and implication

The study observed that

A lot of financial institutions have failed and more may still fall due to inadequacy of working capital

Because many financial institutions has quested or fallen some firms has will draw  the confidence they have in putting more effort to progress while the liquidated ones find it different to off set its indebtedness.

In conclusion, the following recommendation more made

Firms that has excess working capital should invest their excess capital in short term investment so that they will not be forced with the adverse effect of excess working capital

Corrective measures should be adopted to the consequences of inadequate or excess working capital in the economy.

TABLE OF CONTENT

CHAPTER ONE

Introduction

Background of study

Statement of problems

Objective of study

Significance of the study

Scope and limitation

Definition of terms

CHAPTER TWO

Literature review

Need for working capital

A balance approach

Component items of working capital

Classification of working capital

Importance of adequate working capital

Excess working capital and its effect

Adequacy of working capital

Implications of inadequacy working capital

CHAPTER THREE

Summary of funding, recommendation and conclusion

Discussion of finding

Conclusion

Recommendation

Bibliography

CHAPTER ONE

 

 

INTRODUCTION

The primary aim of establishing or going into business is to optimize profit and as well as ensure continuity of that business concern. When one person (sole trader) or group of person (partnership or companies limited by shares or guarantee) intends forming a business entity or will need a smooth take off, these fixed and current assets in facing and current assts will be funded from both long term liabilities and current liabilities (or capital) as the case may be.

On formation, the business as an entity will be provided with fixed assets, such as building and premises, plant and machinery, equipments, motor van etc. but from all medication we know and we see that these fixed assets itemized and we see that achieve the a fore said aims of establishing the business. This is so be cause the fixed assets were not bought for then purpose of resale as a result any project cannot be directly accruable from its continuous stay.

From the foraging, it is easily describable from it that the business as a going concern need some indispensable terms or factors that will determine its profitability and its ability to with stand the rest of time in a prevalent competitive environment.

These indispensable items are operational and resoling in contrast with fixed capital and this is what we termed as the “WORKING CAPITAL”

 

BACKGROUND OF STUDY

The need for working capital would not have been necessary or relevant if not it’s inherent problems.

In the light or this I wish to state a maiden approach in discussing this course or profession could easily flow and appreciate this simplicity of this presentation.

The need for cash detention or holing cannot be overemphasized because it goes a long way in tacking problems resulting from inflation and its like.

Therefore, attempts would be made discuss the problems, prospectus of this topic for the benefits of those who care to read or go through the content of this piece of work.

STATEMENT OF PROBLEM .

          For many years they are some historical cause of adequacy or inadequacy of working capitals.

What other likely causes are and knowing the causes and also finding remedies to them, knowing all these problem does the government, financial institutions and private individual any role to play in the cause and remedies.

As a result of this problem firms easily find themselves go or walk the of liquidation because they failed to make

Provisions for the rainy day.

This piece o

IMPORTANCE OF LIQUIDITY IN COMMERCIAL BANKS

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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

 

CHAPTER ONE

 

1.0     INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Liquidity is the word that bankers use to describe the ability to satisfy demand for cash in exchange for deposit.  A bank is considered to be liquid when it has in various forms and locations plus arrestment insecurities that  are easily available at a short notice without loss or much loss to the bank, it could be conventional to refers to a bank as being liquid when it has enough liquidity to meet any financial emergency, for instance, during a runoff, the bank have the question of how much liquidity to hold and in what form is of great concern to any prudent bank manager.

Manager are also face with the requirements to comply with liquidity to meet seasonal and unexpected run on bank for cash be anticipated and met in advance from expected each in flow, deposit loan repayment or earnings.

In light of the above, the role of liquidity in our commercial banks becomes all to real its importance cannot therefore be over emphasized liquidity is needed to take advantage of unexpected favourable and profitable opportunity or for aggressive purpose.

If a bank is needed of liquidity, it becomes difficult for it to take opportunities like this.  A bank might run into difficulties when a firm that they went to secure as a customer family presents a loan application or particular desirable investment development, it becomes difficult for them to do this, it is not sufficiently liquid.  Usually the bank approach is to identity two liquidity needs of banks, one is the need for immediate liquidity to ensure to continual day-to-day operations (e.g. liquidity to meet with drawal of deposits by customers, clients) and the other it the need to meet unforeseeable problems in financing the banks know future commitments the balance sheet relationship which is most relevant to this view of liquidity is that of deposit liability.

In order for the bank to distinguish between the following:

1. Liquidity and assets, which are maturity uncertain (e.g. short deposit and overdraft)

 

2. Liquidity and asset which are maturity certain (e.g. loan and deposits, which are for friend terms).

 

3. Assets which have a friend maturity but by nature usually can be sold easily and safely e.g. treasury bills, extricate or deposits.

In Nigeria, commercial banks activities are regulated by banking act 1969 (as amended).  As a result a lot is required of the commercial bank like legal reserved requirement (cash ration liquidity ratio stabilization secrets issued by the central bank of Nigeria CBN for special deposit).  Liquidity problem for the purpose of this study are divided of looked at as problems for the purpose encountered by banks management.  Where there is either excess or shortage of liquidity on the banking system or is commercial banking system.  It will be noted that since the end of Nigeria Civil war, the Nigerian financial system has been experiencing economic transaction, which emanated from the inflow of foreign exchange via the oil sector.  Emphasis were gradually shifted from other sector like agriculture to oil, has performance in this sector entered prudent influence on the liquidity of the economy, the federal government was equally welcoming in liquidity so it had no use of certain borrowing instrument like treasury bills, treasury certificates and development stock.  As a result, banks vaults swelled uncontrollably.  This resulted in arm-chain banking by choosing which deposit to accept and which  not to the bank were walling  in excess liquidity and where was little out lets for short term resources and yet banks were not ready to long term investment.

Commercial banks were faced with excess liquidity problems.  They had more funds which could be profitable employ.  But is believed that the situation is reviewed.  Banks are now faced with the problem of liquidity and liquidity hidden for long.

A bank may succeed in canceling low profitability or capital inadequacy for long, but a bank that becomes illiquid many not be able to conceal it for more than one day.  Once there is an increased demand for currency the problem of liquidity will surface.

 

 

• STATEMENT OF PROBLEM

There is no doubt that 50% of bank failure in our country

today is as result of inadequate liquidity in our commercial banks.  Problem of inadequate in our commercial banks is of great concern.  No doubt the CBN governor brings out the new one billion naira capitalization base for all commercial banks.  In the course of writing this projects the researcher unfold some solution to the above mention problem.