PROBLEMS OF BANKING SYSTEM IN NIGERIA

(A CASE STUDY OF CO-OPERATIVE AND COMMERCE BANK OF NIGERIA)

CHAPTER ONE

• Introduction 1

1.1     background of the study                                                          6

• Statement of the problem 9
• Purpose of the study 10
• Significance of the study 11
• Limitation of the study 12
• Statement of hypothesis 12
• Definition of terms 13

CHAPTER TWO

• Literature review 16

2.1     Definition of a bank                                                       16

• History of co-operative and commerce banks 20
• Types of banks and their functions 23
• The role of banks in the national economy. 25
• Types of problems facing commercial

banking industry in nigeria                                            29

• Competition in banking 46
• Organizational problem 49
• Causes of bank failure 50

CHAPTER THREE

• Research design and methodology 53

3.1     sources of data                                                               53

• Location of data 58
• Sample of data 59
• Method of investigation 60

CHAPTER FOUR

• Data presentation and analysis 61

4.1     tabulation of frequency result                                        61

• Test of hypothesis 67
• Analysis of data 71
• Interpretation of data 74

CHAPTER FIVE         

• Summary of findings, conclusions and recommendation 76

5.1     Discussion of findings                                                   76

• Recommendation 88
• Conclusion 90

Bibliography.                                                                 94

 

CHAPTER ONE

• INTRODUCTION

Banking business started as far back as the  seventeenth century.  When the receipts issued by Goldsmiths to depositors were used as a means of exchange in commercial transactions.  Because these receipts were accepted generally, they become transferable too.

A back is an institution where money and valuable are kept for safety purposes.  Banks also lead money known as loan, pay out money an the customer’s order by means of a cheque and bandraft and also give overdraft to customers.

 

The structure of banks can be grouped into the following namely:

1. CENTRAL BANK: This is the opex institution in the financial system of any country.  It is charged with the responsibility of managing the monetary polices of the government.  This was established in March 1958 and started full operations by 1^st July, 1959.  Which was after many banks like the West African Currency Board (WACB) in 1912, and the International Bank for Reconstruction and Development (IBRD) in 1955 failed to perform their objectives, and they later folded up.

 

2. COMMERCIAL BANK: This was started in Nigeria in 1892 with the establishment of African Banking Corporation and foded up in 18 93, then British Bank of west Africa [BBWA] was established in 1893. started operation in 1894 and later folded up too. May other bank come into existence which equally up. This is classified into three main groups which are as follows.

(a)     INDIGENOUS BANK: these are bank fully owned and controlled by Nigerian citizen including government. The first indigenous  bank in Nigeria was the national bank of  Nigeria (NBN), which started operations in 1933 followed by African Continental Bank Ltd (ACB) in 1947.

 

(b)     MIXED BANKS:  These are banks jointly owned and controlled by foreigners and Nigeria citizens including governments.

 

(c)      FORIGN BANKS (XPATRIATE BANKS):  These are banks fully owned and controlled by the foreigners.

 

The Nigeria Indeginization Act of 1972 Convert Most of these foreign banks which was Ider phased out ling time ago.  However, the 1995 budget has reintroduced the foreign (expatriate) trade in which banking system is an integral part of it.

 

3. MARCHANT BANK: This is a bank that specializes in providing financial services to commercial firms and industries.  This was established in 1964. this was established to assist large corporation , government, investor and individual in their financial  and management problems.

 

4        DEVELOPMENT BANK:  This is a bank sep up to handle special development projects in the country.  Also it help entrepreneurs by providing loans and consulting services to them, this is classified into the following groups namely:

• NIGERIA INDUSTRIAL DEVELOPMENT BANK (NIDB): This was established in 1964 to replace the investment corporation of Nigeria.  This assists the public and private sector companies.
• NIGERIA BANK FOR COMMERCE AND INDUSTRY (NBCI): This was established in 1973 to see to the financial implementation of the Enterprises promotions Decree of 1972.  this assist the indigenous businessmen.
• NIGERIA AGRICULTURAL AND CO-OPERATIVE BANK (NACB): this was established in 1973 with a capital of twelve million naira (N12 million) and is fully owned by the federal Government. This assists the agricultural sectors individual farmers and co-operative bodies.
• FEDERAL MORTGAGE BANK (FMB): This is a bank established by the government to help people build house by giving them ling term loans. The customers payback what they own the bank by mortgaging the land and house till they finished what they are owing.

 

5. SPECIALISED BANK: This is another type of bank which was established by the government and it includes the following namely:

• PEOPLES BANK OF NIGERIA: This is set up by Nigerian government in 1989 to help petty traders.  They also provide loans in groups at no interest rate, but an administrative cost of fifteen percent (15%) of the loan.
• COMMUNITY BANK: This was established in 1990, for rural development.  It was credited to bring the banks closer to the community to assist people in their business transactions and daily running.

 

Banking system is the system at which banks operates.  This is divided into four groups namely:

• UNIT BANKING: This is a type of banking system where the banks involved operate without branches.  This is commonly found where commercial banks exists.
• BRANCH BANKING: This system relates to a situation where there are few banks with a large number of branches.  This is then telling the readers that the banks seen here operate with branches.
• GROUP BANKING: This is a situation where three or more independent banks are brought together under one control through the exercise of majority share/stock ownership.

Despite the creation of all these banks by the government to aid entrepreneurship development.  The Nigerian banking system banking system still encounter a lot of problems which has disrupted its operation in the country.  This project will look at most of these problems and their causes and also provide possible solutions to avoiding these problems in the development of banking system.

 

• BACKGROUND OF THE STUDY

Commercial Banks as financial Institutions were established to cater for the savings and credit needs of small scale producers.  Commercial banks are the pioneering institutions in the art of banking followed by other banks.  The art of banking and industrial financial needs developed gradually and involved a lot of learning and perfection.  The early businessmen who were involved in this art learning and perfection were extra careful in management either because they could not accurately fore cost very well into the future or the risk involved in such find management was such that they could not by the use of the tools and techniques available to them totally avoid, or reduce to a manageable level .  pioneers of banking business realized early in life from the more unpredictable and the grate.  The risk involved in lending.

Moreover, for the fact that they could not predict the time their depositors will come for their money, they always keep their money handy-lending short.  This marching principle and the confidence of utmost good faith which characterized early banking practice was the hinge on which commercial banking successfully started.

As the economy grew, the need to hoslen growth of a particular segment of the economy may arise.  This may be through different finding to boost development in that sector, a priority which under normal circumstances, the existing financial arrangement could not after.  So the need to establish financial institutions, designed to act as catalyst, to provide the needed fund to galvanize the development of the less privileged sub-sector for the economy into action and to grow along with other sub-sectors of the economy.  In Nigeria, this need to provide and package special type of financing to some less privileged sub-sectors of the economy gave rise to the establishment of the people’s Bank, New Nigeria Bank etc.

In a barker economy, there was no financial needs as economic and social needs were met by a mere exchange of goods and services.  However, with growth and development, there arose financial needs of which commercial Banks adequately took care of but not for long.  With time the gap started again of which the existing commercial Banks could not fill.

It is quite unfortunate that some commercial banks not quite long after establishment will start experiencing multi – purpose problems.  Most of these institutions have ill-defined objectives-objective so broad that usually the institutions do not have the means nor the experience and capabilities to achieve them.  Further more political interference affects development institution.  Most of these institutions are mostly government owned banks and are prone to politics and government, interferences.  It becoming a norm that instead of appointing experienced and qualified persons as Board members of these institutions to make expert policies, political consideration favouritism takes upper hand with the result that Board members will not be contributing their best.  Also government direct or indirect interferences in the lending policies of these institutions, have not helped matters.  Lack of qualified and experienced staff to man, these institutions did not help matters, with the result that decision and results were not what are expected to be.  It is on this background that the research is carried on for effective check and control.

 

• STATEMENT OF THE PROBLEM

The problem in a nutshell includes such practices as fraudulent activities and mismanagement  by bank officials, poor liquidity and unavailability of adequate credits to deserving customers.

The phenomenon, technically referred to as “Bank distress” has become a regular feature in the Nigeria banking industry.  It connotes the erosion in the capital base of the enterprises which is commonly faceable to indigenous banks.  These banks as mentioned were set up by Nigerians with sloe objective of meeting the business needs of fellow Nigerians.  For instance the National Bank, when established in 1933, work towards catering for the interest of Nigerians.  The African continental Bank (ACB) was established in 1947, which aimed at assisting indigenous companies and individuals who were victims of the discriminating practices of foreign banks.  These banks have achieved a lot in the country since their inception irrespective of very serious set backs caused by unco-operative altitudes of bank debtors and hard regulatory policies as well as unpatriotic attitudes of the citizens.

 

• PURPOSE OF THE STUDY

The purpose of this project is to identify and provide possible solutions to the problems in the Nigerian banking industry.  So having identified the problems to which this study address itself, the researchers shall in this work, make a critical insight into the problems of banking system in Nigeria (case study of co-operate and commerce bank Plc Enugu) and determine the effects and reactions of the situations in the following:

1. The profitability of the bank.
2. Their reaction to the various policies of the government through central Bank of Nigeria and Nigerian Deposit Insurance corporation to correct their irregularities.

• The overall impact of these two situations on the bank existence and to their customers.

 

• SIGNIFICANCE OF THE STUDY:

It is of importance for banks and business organization to know the cause of the problems in the banking industry and the possible ways to solve them.

It will also and most banks and business organization to realize the need to encourage the growth in Nigerian banking industry that our banks should not be allowed to die having lived to their responsibilities.

The project will also make Nigeria realize the need for honesty, hard work and patriotism so as to encourage and inculcate banking habits not only to the mosses but also to the rural dwellers.  Also its project will serve as material for future research, economist and the economy of the country.

• DELIMITATION, SCOPE AND LIMITATION OF THE STUDY

The problems of Nigeria banking system is a very broad topic, but its project will concentrate on the indigenous banks with its scope being limited to the co-operate and commerce bank Enugu which has experienced in recent times a big short fall in its operation.

The Nigerian Deposit insurance corporation (NDIC) which was set up to monitor the activities of these falling bank in Nigeria declared the bank (ACB) in 1993 as one of banks distressed.

Other limiting factors as to the successful conclusion of the project was the inability of the members to visit other banks that are distressed at Enugu and other Eastern zone due to the limited time factor.  Owing to this fact, the members of the group decided to do with the available data.

 

• STATEMENT OF HYPOTHESIS

Using the information collected the researcher will attempt to test the validity of the following hypothesis

1. H^o: Banks in Nigeria are not lucrative because of problem facing them.

H₁:  Banks in Nigeria are lucrative upon the problem facing them.

2. H₁: The policy of central bank affect the operation of banks in Nigeria.

 

H_o:  The policy of central bank do not affect the operation of banks in Nigeria.

 

• DEFINITION OF TERMS.

The terms used in this work needs to be defined to facilitate the understanding of the reader.  As one of the greatest Greek philosophers Aristotle (348-322 B.C) would put it he says “Before a discussion can be intelligible there must be a definition of terms”.

 

In defining the terms used, this project will prove that its content has been intelligibly written as to avail the reader of acquiring knowledge.  Used are as follows:

1. A.C.B. African continental Bank Plc
2. PLC Public Liability Company
3. IBRD International Bank for Reconstruction

and development.

4. NBN National Bank of Nigeria
5. WACB West African Currency Board.
6. CCB Co-operative and Commerce Bank
7. BBWA British Bank of West Africa
8. FORIGN (EXPATRIATE)

(BANKS)    These banks are banks where 51 percent of their equity shares are held by foreigners.

9. ENTREPRE NEUR: One men business or sole business sector this means where one person organizes and manages a commercial understanding or business.
10. NDIC Nigeria Deposit Insurance corporation:  Thiscompany belong to the government and it’s is set up to help those banks that are distressed and to monitor their activities.
11. SFEM: Second-tier foreign Exchange Market.
12. CBN: Central Bank of Nigeria which is the Apex

bank

13. SAP: Structural Adjustment Programme
14. ABC: African Banking Corporation.
15. FM: Frequency Moderation
16. ESBS: Enugu State Broad Casting Service
17. BOFID Bank and other Financial Institutions Decree

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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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 THE IMPACT OF FEDERAL GOVERNMENT TAX   POLICIES ON NIGERIAN ECONOMY 1995-2003.

ABSTRACT

The purpose of writing this research works.  The impact of federal government tax policies on the Nigerian Economy, is determine whether the federal government tax policies in Nigeria has contributed immensely to the overall growth of the economy.  It also seeks to investigation on the extent the polices of federal government tax has helped in revenue generation and allocation.

The literature review gave a background and in depth in the country and also the various policies banking them.

The decision made on this work was derived based on the test conducted. The chi-square was used in testing the hypothesis while frequency tables and percentage were used in analyzing the data.     The decisions were that  the federal government  tax policies is actually a regulatory frame work of revenue generation in Nigeria. While the other one is that the federal government tax policies has contributed to the growth of the economy.

Based on the above decision, some findings were made which necessitated recommendations and finally conclusions.

CHAPTER ONE

INTRODUCTION

• STATEMENT OF PROBLEM AND OBJECTIVES……………
• RATIONAL OF STUDY………………………………………..
• SIGNIFICANCE OF THE STUDY……………………………..
• BACKGROUND OF THE STUDY …………………………….
• DEFINITION OF TERMS ………………………………………

 

CHAPTER TWO

LITERATURE REVIEW

• THEORITICAL REVIEW
• EMPRICAL REVIEW

CHAPTER THREE

HYPOTHESIS, METHODOLOGY, SOURCES OF DATA LIMITATION OF THE STUDY.

• HYPOTHESIS OF THE STUDY
• METHODOLOGY OF STUDY
• SOURCES OF DATA
• LIMITATION OF STUDY

 

CHAPTER FOUR

DATA PROSENTATION, ANALYSIS AND DISCUSSION OF RESULT.

• DATA PRESENTATION
• ANANLYSIS OF DATA
• DISCISSION OF THE RESULT

 

CHAPTER FIVE

• SUMMARY OF THE ENTIRE WORK
• CONCLUSION
• RECOMMENDATION
• SUGGESTION FOR FURTHER RESEARCH

BIBLIOGRAPHY

APPENDIX.

CHAPTER ONE

INTRODUCTION

• PROBLEM IDENTIFICATION AND PURPOSE OF THE STUDY

The burden of tax falls heaviest on those with smallest income earning (odoh, 1998). An accurate record of business transaction and income tax becomes difficult. Some tax collection and assessors are dishonest.

 

There are cases of bribery and corruptions and also the cases of tax collections being prosecuted for misappropriations of funds collected from taxpayers.

 

Sometimes tax collectors went into the remote villages to collect tax but the problem of transportation might increase the difficultly. Also there is a languge barrier in the tax collection to raise money. Taxes are imposed to raise revenue for government for it to satisfy the peoples wants.

 

There is need for government to raise money for the provision of essential services such as the maintenance of law and order, the construction of roads and railways and the provision of health services, social and educational facilities. It is important because it is used to stimulate recovery from trade depression when unemployment is usually high, so to fight these ills there may be an increase in taxation.

 

PURPOSE OF THE STUDY

The Nigerian government has realized the need for revenue generation through imposition of tax on citizen so there are different objective for imposing tax in the country.

To detect the extent, the federal government tax policies have helped in revenue generation and allocation in Nigeria.

To find out the extent the federal government tax polices have contributed to the growth of the economy.

 

• RATIONALE OF STUDY

The federal government generates a large proportion of its revenue from tax.  The revenue generated from tax helped the federal government to provide for such things as national defence, security, Justice, transport, Communication and construction, health and education, while transfers from the fourth group and include employed retirement benefit consisting of pension, gratuities and public debt charges.

 

Tax controls inflation in an economy because when there is inflation in the economy, government can tax away the income in the hand of society and thereby reducing the aggregate demand, which will eventually bring the price down in the economy.

 

Government also levy taxes to discourage the consumptions of goods that are considered undesirable, goods welfare or those goods that create room for ostentation, wrong investment priorities or class distinction in he society (odoh 1998)

 

 

• SIGNIFICANT OF THE STUDY

The finding of this research will benefit both the government and community.  The government generates a large population of its revenue from tax and it s used to satisfy people wants and it is providing for such things are national defence, security, Justice, Construction of roads and railways and provision of essential services, health social and educational facilities.

 

 

Hence it is beneficent to both because taxes are imposed to raise revenue for the government for it to satisfy the people in a community.  Also it is used to stimulated recovery from trade depression, when unemployment is usually high.

 

 

 

• BACKGROUND INFORMATION ABOUT THE STUDY:

In Nigeria, many units of government, which in geopolitical jargon can be called junsdiction, carry out the fiscal operations.

Some fiscal functions are operated on a more centralized level which others are decentralized. Each of the three major fiscal functions are Allocation, distribution and stabilization, has economic reasons to be operated by each level of government. Taxation is the most important source of public revenue.

 

Tax is a levy, which a government imposes on the income of a citizen of a state for which the government makes no direct benefits to the payer.  It is a compulsory contribution imposed by government on private persona, groups and institution within the country. Since it is a company payment a person who refuses to pay a tax is liable to punishment.  But it is paid only by those who come under funsdiction. (Odoh, 1998).

 

The federal government generated a large proportion of its revenue from tax it is a compulsory contribution from corporate and natural person to government to defency the expenses incurred in the common interest of all with reference of special benefit conferred.  It is non-panel yet compulsory transfers of resources from the private on the prime sector, which must be levied on the basis or well-established criteria of equity, certainty, convenience.

 

 

Apart from using tax to generate revenue to finance her project, the federal government uses taxation for the purpose of influencing activities in the economy, thereby achieving its growth and stabilization policies. (odoh, 1998)

DEFINITION OF TERMS

Tax: Tax is a levy, which a government imposes on the income, or production and consumption of goods of the citizen of a state for which the government makes no direct benefit tax payer

 

INFLATION:  This is a general increase in price by the final consumer of goods and services because it is included in the price paid

 

VAT:   It is a tax on spending which is borne by the final consumer of goods and services because it is included in the price paid.

 

FISCAL POLICY:  Fiscal policy is the way or measure in which the federal government controls the circulation of money in the economy.

 

REVENUE – Revenue is the income or receipt of money by government. It could be said to be find or finance gotten by the government.

 

 

TAX BASE:  Tax base is the items on which the government levies the tax on.

 

 

TAX AVOIDANCE:  Is a way in which taxpayer illegally reduces, delay or avoid paying tax.  This is subject to punishment by the law court.

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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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THE EFFECTS OF CREDIT MANAGEMENT ON LIQUIDITY POSITION OF A MANUFACTURING COMPANY (A CASE STUDY OF NIGERIAN BREWERIES PLC, ENUGU STATE)

CHAPTER ONE:

• Introduction

1.1     Historical background of Premier Breweries Ltd

• Statement of problems
• Research objective
• Statement of hypothesis
• Significance of the study
• Limitation and scope of the study
• Definition of terms

CHAPTER TWO:

• Literature Review

2.1     Historical background of credit

• Credit policy
• Trade credit
• Credit Management
• Effect of credit and bad debts on profitability
• Determination of liquidity
• Effects of credit on liquidity

CHAPTER THREE:

• Research Methodology

Methods and Procedures of collecting and analyzing data

3.1     Sources of data

• Survey instruments
• Statistical treatment and analysis of data
• Reliability of data

CHAPTER FOUR:

• Analysis of data

4.1     Analysis of questionnaire

• Published and unpublished data collected form the breweries book
• Result at a glance
• Test of Hypothesis
• Interpretation of result

CHAPTER FIVE:

• Summary of findings

5.1     Discussion of findings

• Conclusion
• Recommendation

Bibliography

ABSTRACT

This project is written in partial fulfillment of the requirement for the award of Higher National Diploma.

Let me state that I was motivated to write on the topic “The effects of credit management on liquidity position of a manufacturing company” mainly because of the wealth of area of liquidity position in our society.

Looking back at the quality of lectures received on the liquidity position of companies and its procedures, I can now happily say that this work is a dream come true.

The purpose of this work is to make known to people the effect of credit management on liquidity position of a manufacturing company; and the role it plays in our society.

This project is organized in five (5) chapters.

Chapter one; Introduction and Historical background of the manufacturing company this is involved; Nigerian Breweries Plc.  It presents statements of problem, research objective, statement of hypothesis, significance of the study, limitation and scope of the study and definition of terms.

In chapter two, the existing literature in the history of the topic, historical background of credit, credit policy, trade credit, credit management, effects of credit and bad debts on profitability, determination of liquidyt, and the effects of credit on liquidity.

Chapter three, talks about the research methodology, sources of data, survey instrument, statistical treatment and analysis of data and reliability of data.

In chapter four, data analysis, analysis of questionnaire, published and unpublished data collected from the Brewery’s book, the result at a glance and test of hypothesis, interpretation of result.

Chapter five, this is where we have the summary of findings, discussion of findings, conclusion, recommendation and bibliography.

 

PROPOSAL

This project is written in partial fulfillment of the requirement for the award of Higher National Diploma.

Let me state here that I was motivated to write on the topic “The effects of credit management on liquidity position of a manufacturing company “OLY because of the wealth of area of liquidity position in our society.

Looking back at the quality of lectures received on the liquidity position of companies and it’s procedures, I can now happily say that this work is a dream come true.

The purpose of this work is to make known to people the effect of credit management on liquidity position of a manufacturing company, and the role it plays in our society.

This project is organized in five chapters.

Chapter one; Introduction and Historical background of the manufacturing company this is involved; Nigerian Breweries Plc.  It presents statements of problem, research objective, statement of hypothesis, significance of the study, limitation and scope of the study and definition of terms.

In chapter two, the existing literature in the history of the topic, historical background of credit, credit policy, trade credit, credit management, effects of credit and bad debts on profitability, determination of liquidyt, and the effects of credit on liquidity.

Chapter three, talks about the research methodology, sources of data, survey instrument, statistical treatment and analysis of data and reliability of data.

In chapter four, data analysis, analysis of questionnaire, published and unpublished data collected from the Brewery’s book, the result at a glance and test of hypothesis, interpretation of result.

Chapter five, this is where we have the summary of findings, discussion of findings, conclusion, recommendation and bibliography.

 

CHAPTER ONE

 

• INTRODUCTION:

1.1     HISTORICAL BACKGROUND OF NIGERIAN BREWERIES:

Nigerian Breweries Plc was founded in 1946 and since then has matured to become the absolute pinnacle of corporate Nigeria.

Today, Nigerian Breweries most recent extension, the new Ama Brewery, has taken the company into a new chapter in its history.  Nigerian Breweries: more than half a century of efforts to achieve world class status in Africa.

Over a period of slightly more than fifty (50) years, Nigerian Breweries has had success after success and has succeeded in anchoring itself firmly in the Nigerian beer market, the business community and indeed in the very hearts of Nigerian themselves.

The “Rising Star” or Nigerian Breweries has, for many decades now, been synonymous with success, quality and commitment.  The organization can boast a wide portfolio of brands that cover the three segments of the Nigerian beer market (Larger, Stout and Malt):  Star, Gulder, Heineken, Legan Extra Stout, Maltina, and Amstel malta.

In 1949, three years after its foundation, the first bottles of star were being filled on the bottling line of the brand new brewery in Lagos.

Three more breweries have been founded since then:  Aba, Kaduna and Ibadan.  Enugu brewery was acquired in 1993.

For decades, Nigerian Breweries had tow large shareholders, one of which, Heineken had always focused on providing the breweries with technical support.  In year 2000, Heineken seized the opportunity of acquiring a 54.2% majority interest in Nigerian Breweries, a decision which underlined Heineken’s commitment to the African continent.

Thanks to the process of democratization that started to emerge towards the close of the 1990s, plus the brewery’s alert anticipation of what would happen in the new situation.  Nigerian Breweries successfully managed to accelerate a growth in sales from 2.5 million hectoliter in 1998 to 5.5 million hectoliter (hi) in 2003.  This was so successful in fact that a luxury problem arose:  the demand for Star, Gulder, and Maltina started to outstrip actual supply.  Nigerian Breweries and Heineken therefore started up the LAKIE output optimization project (Lagos, Aba, Kaduna, Ibadan, Enugu).

An investment of 280 million euros in new bottling lines and brewing plants substantially increased the capacity of these breweries.

The experts were more than aware that an expansion of the existing breweries alone would be insufficient to meet the constantly increasing demand for Star and Gulder.  And because of the rose-coloured prospects in the medium term, early in 2001 Nigerian Breweries and large shareholder Heineken decided to build an ultra-modern brewery fitted with the latest innovations and the most up-to-date plant equipment.  A world-class brewery befitting a world-class company.

The entire brewing community is envious of the new Ama brewery near Enugu.  The construction of a high-tech brewery, in corporating the absolute latest in technological developments and major innovations in a rural tropical environment is a feat which has never before been achieved in the brewery industry.

Nigerian Breweries assigned Heineken Technical Services to design and develop the new brewery and to supervise the construction of this 220 million euro (30 billion naira) project.

There were frowns of concern when the first plans for Ama were presented.  Would it be possible to operate such a high-tech, state-of-the-art brewery in Nigeria?  The start-up phase has proven that it certainly is.  There are two main reasons for Ama’s success.  First of all, Nigerian Breweries invested heavily in the recruitment of young technical professionals straight from technical school and then giving them additional training.  Many key operators and all the managers were sent to Holland and Germany for this additional training, months before the first beer was brewed in Ama.  The others were given the training on recently upgraded equipment in the breweries at Lagos, Aba, Kaduna and Ibadan.

The second success factor is the actual organizational structure.  A state-of-the-art brewery such as Ama calls for a small number of highly professional employees; employees who perform at their best when working in a hierarchically small operation consisting of only three layers.  Work here is based on Total Productive Management (TPM), which for Nigerian Breweries is a new concept introduced by Wiggert Deelen, the Technical Director.

The brewery has an initial capacity of more than 300 million litres of beer and can be extended even further.  The average production is in excess of 1.1 million creates per week.  The Ama brewery uses only natural ingredients for the brewing process, the brewing water being pumped up from five wells two hundred metres below the ground.  This is excellent quality water and needs very little correction to make it suitable for brewing.

The malted barley and hops used are imported from Europe, the malted surghum and maize grits are produced by local farmers, malters and millers.  Ama brewery uses 51,000 tonnes of grain per year, 2,550 truck-loads in all.

The brewery has one brew-house that produces twelve brews of 660 hectolitres high gravity wort per day.  The brew-house is in operation 24 hours a day, seven days a week.

After the boiled wort has been cooled down it is mixed with the yeast and then pumped to the fermentation “celler”.  While the celler is the traditional name for the location where fermentation takes place, in the brewery the 30 fermentation tanks of 5,000 hectolitres each are situated in a building above ground.

The beer is subsequently transported from these tanks to the brewery’s bottling lines.

Here there are four bottling lines, two of which are reserved for the popular brand, Star, and one for Gulder.  Each bottling line has a filling capacity of 30,000 bottles per hour (60cl bottles).

The high level automation and the use of ultra-modern technical equipment make it possible for the brewery to also produce Heineken beer.  Preparations were started for the local production of Heineken beer only six months after the first brew had left the production line.

 

• STATEMENT OF PROBLEM:

However, the research will be specifically concentrated on the problems which arise when the brewery sells beer to its customers for the purpose of receiving payment in future.

In view of these, the following critical questions demand answers:

1. What effects does credit management have on liquidity position of Nigerian Breweries Plc, Enugu?
2. Does credit sales reduces liquidity of this brewery?
3. Does credit sales increase the profit level of the brewery?
4. Is there any relationship between credit sales and liquidity position of this brewery?
5. Has the brewery’s credit policy and credit terms any effect on its liquidity?

 

• RESEARCH OBJECTIVE:

The primary objective of this study is to find out how effectively and efficiently the Nigerian Breweries Plc has managed its trade credit (selling been on credit to customers) to achieve optimum level of liquidity, which will in turn result in the promotion of the corporate image of the brewery and win the patronage of the public.

The project also aims at making suggestions on how the brewery, based on research findings, can improve its business through greater profitability and growth can be assured.

• STATEMENT OF HYPOTHESIS:

In order to achieve the above objective, the research will make the following hypothesis:

1. Liquidity of Nigerian Breweries Plc Enugu in a function of proper credit management.
2. Credit sales do not reduce liquidity of Nigerian Breweries Plc Enugu.
3. Credit sales increase the profitability of Nigerian Breweries Plc, Enugu.

 

• SIGNIFICANCE OF THE STUDY:

In carrying out this study, it is intended that it will be of immense help to the accounting staff of Nigerian Breweries Plc Enugu, especially its credit management officers.

This study exposes the intricacies involved in extending credit to customers.

To the customers, this study will enumerate the several benefits that can be derived by making prompt settlements of their debts.  This serves as a means of increasing organizational efficiency.

This study also is particularly important for the financial manager of a small company because a small company has relatively limited access to the capital markets, it relies heavily on trade credits for its short-term financing.

This study will be helpful guide for him.  Thus any company or individual through this study can have a reasonable knowledge of what credit transactions are all about and how it can be effectively managed to attain the much needed profit maximization.

 

• LIMITATION AND SCOPE OF THE STUDY:

In a study like this type, a lot of set-backs are bound to come up, this work is restricted by many variables.

The greatest identifiable ones are time, finance, respondents and general economic problem.

(1)     Time:

Since the research will be carried out at student’s level, the researcher will have to allot his time such that the demand for their courses will have to be met.

Moreover, since the interview will be conducted during the working days of the work the researcher will have to forfeit some of his lectures in order to successfully conduct the study.  The time that will be lost in terms of lecture missed will be a substantial loss in itself.

(2)     Finance:

Insufficient funds will be another factor inhibiting this research project.  The work will be single-handedly sponsored by the researcher.

And as a student, the project will be sponsored from his meager pocket money.  As a result, he may find it difficult to cover some inevitable expenses like transport, stationeries, typing and binding labour and so on.

This in turn is bound to affect the sample size and the geographical area of coverage of the study.

(3)     Respondent:

The inability of the officials concerned to produce adequate and relevant information required for the research project has been one of the most frequently encountered constraints by researchers.

Apart from the fact that some of the staff that will be required to give data are not technically skilful in the area of study, many of them may think that the researcher is one of government functionaries that come to question their activities or to assess them for tax payment.

This may be due to the fact that the school authority has been reluctant to introduce the researcher to the establishment formally by issuing identity papers or introduction papers to the students.

(4)     General Economic Problem:

The last but not the least limiting factor is this work will be the general economic problem facing the entire country as at this point in time when the research will be carried out.

Considering the above constraints, the researcher will concentrate on few areas of trade credit management that lead to high profitability, optimum liquidity level and efficient utilization of all the brewery’s financial assets.  Such areas include – historical overviews and origin of credit, trade credit and credit management; credit policy; five Cs of credit; effects of credit on liquidity and profitability, and important areas of trade credit management.

 

 

 

• DEFINITION OF TERMS:

Haven going this far, the researcher sees it reasonably enough to define some key terms or phrases intended to be used in this research project as they operationally apply to the problem:

The terms include:

1. Trade Credit:

This is the quantity of goods (beer) the brewery sold to its customers with the purpose of collecting cash in the future.

2. Credit Management:

This is the process by which the brewery properly maintains its credit sales so as to achieve optimum liquidity level.  Or, put in this way, credit management is a way of controlling the brewery’s credit granting attitude in order to maximize the brewery’s value of achieving a balance between risk and profitability.

3. Liquidity:

This is the volume of cash the brewery has at hand and/or in the bank.  It is the actual total money (most liquid assets) the brewery has as a balance after all expenses (including cost of financial credit) have been made.

4. Profitability:

This is the total net profit or gain made by the brewery from its selling activities (both cash and credit sales).

5. Optimum Liquidity:

This is the level of cash (at hand and/or in the bank) at which all the brewery’s assets (resources) are efficiently employed and utilized.

6. Company:

This is a legal person or entity created by the association of number of persons in accordance with the law for the purpose of a defined objective.

7. Management:

This is the process of allocating an organisation’s inputs (human and economic resources) by planning, organizing, directing and controlling for the purpose of producing outputs (goods and services) directed by its customers so that organization objectives are accomplished.

8. Credit Sales:

These are sales made by the brewery without immediate payment.

They are goods (beer) the brewery exchanged for money but with the intention to receive the cash in the future.

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ANALYSIS OF INCIDENCE OF LOAN DEFAULT IN MERCHANT BANK (A CASE OF IVORY MERCHANT BANK)

ABSTRACT

 

This research studied the nature, problem and prospect of the new product developed in the banking industry from 1990-2003.

In this research work, the researcher chose four of the products and measures the extent to which they have been able to satisfy the customers. The product selected are smart card, international money transfer, educational scheme and integrated banking network transaction.

Data for this research were collected through questionnaire and interviews by bank customers and the review of existing literature on the topic using simple random procedure and the descriptive method of research. The data so collected were analysed using the simple percentage and the formulated hypothesis were tested with chi-square (x²) method.

Some of the findings are the nature of the new product can measured in terms of accessibility, speed, timeliness, simplicity and reliability.

Customers who patronize the new product are majority those who want money transfer both locally and internationally customers derived high level of satisfaction from the new products.

Inadequate infrastructural level in our banking industry and high cost of installing them contributed to the problem of the new product.

Based on the findings, the following were recommended banks should come together and establish a common data communication satellite to minimize constant problems.

A parallel organization that was supplying electricity in competition with NEPA should be allowed to evolved so that an efficient supply of electricity can be ensured.

Finally, since this study alone cannot exhaustive of this vital subject, it is recommended for further studies.

CHAPTER ONE

Introduction                                                                                      1

• Background of the study 3
• Statement of Problem 4
• Objectives of the study 5
• Research Question 6
• Research hypothesis 6
• Significance of the study 7
• Scope and limitation 8
• Definition of terms 9

Reference                                                                       11

CHAPTER TWO                  

Review of Related Literature                                                   12

• Literature Review 12
• Historical Development of Bank lending 14
• Development of Merchant Bank in Nigeria 16
• Differentiating functions of Merchant Bank 18
• Cannons of Good lending 19
• Analysis of principles of good lending 25
• Why are Banks failing 29
• Exports view and comments 30

Reference                                                                       32

CHAPTER THREE

Research design and Methodology                                          34

• Research Design 34
• Area of Study 34
• Population of study 34
• Sample and Sampling techniques 35
• Instrument for Data Collection 37
• Method of Data Presentation 38
• Method of Data Analysis 38

Reference                                                                       40

CHAPTER FOUR

Data Presentation and Analysis                                                        41

4.1     Data Presentation                                                          41

4.2     Test of Hypothesis                                                                  49

Reference                                                                       55

CHAPTER FIVE

Findings / Recommendations and Conclusions.                      56

5.1     Findings                                                                         56

5.2     Recommendations                                                                   59

5.3     Conclusion                                                                     60

Bibliography                                                                  63

CHAPTER ONE

 

INTRODUCTION

According to Paget (1998), a renowned banker he defined banks as “a corporation or person (or persons) who accepts money on current account, pays cheques on such account in demand and collects cheques for customers.”

Banks are financial institutions that are charged with the responsibility of funds intimidation. They act as a go-between the simples funds sources and deficit fund services. They equally act as “a dealer in capital or more properly a dealer in money as we defined by Gulbert (1995) in performing this function, they engage themselves with deposit acceptance and granting of loans and advances to any needy sector of the economy or individual. Investors and industrialist. The banks are not charcterable organization, hence they render these services with the motive of profit making.

The banks in performing this very important duty they are faced with myriad of problems that grows in bounds everyday in consonance with the dynamic nature of Nigerian economy and growth. Their major problem emanated from the fact that those customers to whom the banks lend money on agreed terms and condition default to repay on maturity, thereby putting a wedge on the wheel of both profit making objectives of the banks, credit expansion within the system for economic activities and continual operations of the bank. This granted into bad debts.

In the pre-independence era when few banks dominated the industry, cases of loan default and bad debt were very minimal, of course, the banks management and loan grants were carefully studied before actual disbursement by the expatriates.

Today, management of many Merchant Banks are  worried by the trend of incidence of loan defaulters and bad debt been recorded. Still decisive and obvious action have not been taken by them to at least its impact on their operations and the effect on the economy at large which is the purpose of this study to proffer effective suggestions on how to bring under control rate of bad in merchant banks and particularly Ivory Merchant Bank.

Financial analysts all over the world agree that bad debt and loan default cannot be completely eliminated in banking industry but a constant check can be kept over every factor capable of generating this ugly experience to most financial and non-financial institutions that engaged in funds intermediation directly or indirectly.

It is note worthy to state here that some merchant banks in Nigeria apparently faced by an increasingly hostile business environment are applying to the Central Bank of Nigeria to convert to commercial banks had applied to C.B.N. as at end of October, 1993.

Incidence of loan default in merchant banking, a very important sub-sector leaves nobody any comfort, hence the researcher’s interest in searching the immediate and remote causes of bad debts and how to remedy the ugly experience so that the public confidence could be restored to the financial sector.

 

1.1     BACKGROUND OF THE STUDY

While reading through journals, weekly financial and business papers, on the rate of increase in number of distress and liquidating banks, the researcher was pulled into imaging that would become of the financial system in the future if dotting is deliberately done to rescue the situation. We are ignorant of the abysmal value of currency” Naria” in the past few years up to date, would you reason out that we cannot build the Nigeria of our dream if this is coupled with constant bank liquidation and failure.

Bank lending by way of loans, over draft, financing capital intensive projects by way of loan syndication, trade credit finance all over the world. The process of financial intermediation is assuming complex dimension. As they try the live up to expectation in this regard they (banks) are confronted with unacceptable pill of loan defaults. When granted loans are dues for payment and without it been actually paid, such loans are regarded as being defaulted, hence analysis of the incidence of loan default in Merchant banking.

 

1.2     STATEMENT OF THE PROBLEM

There is no doubt the difficulties confronting the banking industry today in Nigeria. Every bank is striking to at least keep pace with others. In their daily dealings as conduct pipe for money, whereby they aggregated funds and disaggregate them it the investing public, they are met with hitches of defaults on the part of loans and advances beneficiaries to meet their obligations have serious consequence on the lending banker.

Therefore the banks are expected to do something very urgently to address the problems so as to forestall it lending them to distress. The failure to refund money borrowed by customers have big adverse effect on banking operations. Such call for study and investigation, so that the solution could be proffered.

 

1.3     OBJECTIVE OF THE STUDY

• To identity the causes of loan default
• To identify the level of incidence of loan default and bad debt.
• To determine the extent of monitoring by merchant banks of projects for which they extended loans.
• To identify the effects of loan of default in merchant banks.
• To make recommendations can how loan default and bad debt will be minimized or eliminated.

 

1.4     RESEARCH QUESTIONS

• What are the measures adopted by the bank in preventing loan default occurrence?
• What is the level of incidence of loan default to your bank?
• How has your been able to monitor its advances granted to customers?
• What do think are the causes of loan default?

 

1.5     RESEARCH HYPOTHESIS

After thoroughly research, it lies on the research to make the following hypothesis.

Ho:    Incidence of loan default in merchant banks is not high.

Hi:     Incidence of loan default in merchant banks is high.

Ho:    Loan supervision and monitoring are not major solution to loan default in merchant bank.

Hi:     Loan supervision and monitoring are major solution to loan default in merchant bank.

Ho:    Loan default does not lead to bank failure in merchant bank.

Hi:     Loan default leads to bank failure in merchant bank.

 

1.6     SIGNIFICANCE OF THE STUDY

Based on guiding and recommendations that would be offered at the end of the study, Ivory merchant bank will use it to reassess their credit analysis, loan disbursement and recovery formular. It will also guide the treasury manager on liquidation management to eliminate the bank running into financial distress.

It is important to state here that the research findings will be immense help to other financial intermediaries in their daily dealings with both savings fund borrowing public.

Implementations of the researcher’s recommendation will restore also confidence of the public on the banking industry.

 

 

1.7     SCOPE/LIMITATION OF STUDY

The study is to be based on the contributory impact or incidence of loan default on both expansion and operation of Ivory merchant bank in Nigeria limited. The scope therefore precludes other innovations and products of the bank, such as corporate finance ceasing and investment advisory services, merchant bank loan syndication process. Investigation would be limited to the office of Ivory merchant bank alone.

It is important  therefore that further researches should be extended to merchant bankers corporate and investment advisory services to determine their (merchant bankers) role in accelerating industrialization and economic development growth of Nigerian economy.

 

LIMITATION OF STUDY

The research study is an academic exercise in which the researcher had to work within time frames limit. Financial handicap hindered the printing and distribution of enough questionnaire. Moreover, distributed questionnaires were not all returned, the researchers’ analysis is therefore based on returned questionnaires.

 

1.8     DEFINITION OF TERMS

1. Loan: A bank loan may be defined as financial faculty granted by a bank which is in tender to be applied for financing of a specific purpose an it usually has a defined duration and fixed repayment programme.
2. Loan Default: This could be seen as a situation whereby customers failed to repay the loans they borrowed from the bank.
3. Incidence of Loan Default: This is the rate at which borrowers could not pay back their money occurs in Ivory Merchant Bank.
4. Merchant Bank: A merchant bank is defined by the Banking Amendment all 1979 as “any person in Nigeria, who is engaged in wholesale banking, medium and long term financing, equipment leasing debt factoring, investment management, issue an acceptance of bills and the management of this trust.
5. Ivory merchant bank: This is a branch of merchant bank formed for the purpose of lending in banking industry.
6. Bank Lending: These are basic principle a banker should observed while granting loans and advances to customers.
7. Criterion for Bank Lending: These are basic factors, which a banker should put into consideration before granting loans.
8. Finance System: Nigeria finance system is made up of banking institution and non banking institutions.

 

REFERENCES

 

John Paget, (1998), Banking Practice Vol. III Enugu: Pan

African Publisher p. 30

 

1. W. Gilbert, (1995), Principles of Bank Lending: Bon

Publisher, p. 50

 

C.B.N. (1993), Monthly Business and Economic Report, p, 70

 

Banking Amendment Act, (1979), p. 8

 

Federal Government of Nigeria, (1998) Annual Budget

Business Times Vol. 23 p.10

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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

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PROBLEMS OF DEBT RECOVERY IN PUBLIC ENTERPRISES

(A CASE STUDY OF NATIONAL ELECTRICAL POWER AUTHORITY (NEPA)

ABSTRACT

Debt recovery is a major problem in our public Enterprises,  most especially the National Electric power Authority (NEPA). A lot of consumers ranging from the residential to the industrial/ maximum status, owed billions of Naria belonging to the authority through the consumption of electricity supply. The product ‘electricity’ is consumed before payment, so every electricity consumer is a debtor to the authority until her or she stop using the potential.

One may ask, can NEPA ever meet the demand of the present society? What about the increasing nature of the uncorrectable and bad debts?

We found that majority of the customers do not receive their bills timely and so could not settle them at the appropriate time. Due to late wills many resort to copy bills which does not represent the true position of bills consumers. We also discovered that majority of the consumers have problems of raise adjustments timely, there were also lack of cash offices, poor customers services and in-consistence power failure which does not encourage prompt payment of electricity bills consumed

CHAPTER ONE

INTRODUCTION

• : Problem identification
• : Rationale of study
• : Significance of the study
• : Background of the study
• : Definition of terms

 

 

 

CHAPTER TWO

LITERATURE REVIEW

2.1 : THEORETICAL REVIEW

2.2 : EMPIRICAL REVIEW

 

CHAPTER THREE

HYPOTHESIS, METHODOLOGY OF STUDY, SOURCES OF DATA AND LIMITATIONS OF STUDY

• Hypothesis
• Methodology
• Sources of study
• Limitations

 

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS, DISCUSSION OF THE RESULT

4.1:    Data Presentation

4.2:    Analysis

4.3:    Discussion

 

CHAPTER FIVE

SUMMARY, CONCLUSION, RECOMMENDATION

5.1: Summary

5.2:    Conclusion

5.3:    Recommendation

BIBLIOGRAPHY:

APPENDIX                   A

APPENDIX                   B

 

CHAPTER ONE

 

INTRODUCTION

• PROBLEM IDENTIFICATION

Problems of Debt recovery occasioned partly by mismanagement, inefficient supervision, poor revenue amongst others cannot be minimized in our society today cannot especially as it affects the public enterprises.

According to Udeme (1996). NEPA has an outstanding debt of about N3. 5b  owed by its prospective consumers. Besides that, the Nigerian Telecommunication PLC to, has about N5billion yet to the recovered from subscribers nation wide. This is not too far from the

N 2.8b owed the Nigeria ports PLC and of course; the Nigeria National shipping line (NNSL)  which have already faced liquidation as a result of poor debt management. This, certainly have contributed to the non-performance of many public enterprises in Nigeria.

Factors are responsible for the poor debt recovery experienced in  NEPA are:

• The effect of untimely distribution of bills to customers.
• The influence of poor customer services on prompt of electricity bills.
• Effect of time rag on reconciliation of bills on customers.

 

• RATIONALE OF STUDY

The main reason of this research is to find out the problems of Debt recovery in public Enterprises in Nigeria with special reference to NEPA management that will help item overcome the problem.

• SIGNIFICANCE OF THE STUDY

A lot of money belonging to the Authority has been tied down by various consumers throughout the nation. In view of brokington (1994: 3),  we understood that the objective of sales is to make profit in return, but if the services rendered are not paid for, then the business cannot function in another circle.

Therefore, identifying the problem of debt recovery through a meaningful research will improve the revenue status and function of the industry and for the nation, a better standard of living.

• BACKGROUND OF THE STUDY

Electricity was said to have started in Lagos in 1886 when two 30-kilowatt generating units were installed to serve the city. As commercial activities increased there were several extension to almost 16 cities and communities

Oyeyele (1987.7( statis;

“Around 1944. Lagos city undertaking was operated by the public utility department. But between 1940and 1951 it then come under the Niger man government electrical undertaking.

Oyeyele further expressed that, there were other undertaking established and operated by locally constituted supply authority’s within this period.

On April Ist, 1951, an ordinance known as Electrical corporation of Niger is (E.C.N) was formed to assume control of the 16 local undertakings then in existence. In 1962, the corporation constructed a 132KVA interconnection from  I Jona to  Ibadan  power station and form Ibadan to Orile and Akure, Benin and Ughelli in the west, Afam and Oji in the East, Kaduna, Aaria and Kano in the North

According to Oyeyele the first Hydro- electrical power station was constructed by private Tin mining interest as (Kwali falls) Kaduna river with a capacity of two megawatts.

Another four megawatts was installed by the Nigeria Electricity supply corporation limited at (KURA FALLS) Benin River. A major Hydro-electric feature of about 320 megawatts at 33KV  operates from Kanji to Lagos in the West, Kaduna. In the North, Benin in the Midwest and Aba in the East

These facilities mentioned above provided a single supple network in Nigeria. But in 1970, the federal Government commissioned shawmout (Canada) under a financial by Canada international Development Agency (CIDA) to study the problems of the power supply Agency and make recommended a new Decree No 24, which created the National Electric Power Authority (NEPA).

But the study of Udom revealed that there was a serious manpower problem between NDA and power purchased in bulk and sold to the public.

Also Abidun (1984). In his opinion confirmed this:

“But with the amalgamation of the two bodies to form today’s NEPA    market the beginning of its crises”

• DEFINITION OF TERMS

Definition of terms is very useful in any research work because  it helps to explain the meanings of the various technical terms implied in the study. Itence the following terms are defined.

NEPA:

According to Oyeyele (1987:7) the National Electrical power with the responsibilities and sales of electricity Power Authority is the public Enterprises charged with the responsibilities and sales of electricity supply to consumers.

ELECTRICITY:

Electricity is said to the power that is produced by various means carried usually acres that provide heat, light and cold

 

KILOWATT HOUR:

This is defined in Abbot (1980:84) as the energy supplied by a rate of working of 100watts for an hour.

CABLE:

Cable is the length of insulated single or more conductor (s)

ENTERPRISES:

Massie (1992:239) narrowed it to a public or private organisation set up for charity or profit. Normally, public enterprises are capital intensive hence the need for the government to control them.

UTILITIES:

There are essential services like NEPA, WATERBOARD, NITEL, AIRWAYS etc. The words utilities and enterprises can be interchanged. In  macsran (1967:1969:351) it was learnt that in developed countries, most of the public utilities are controlled by private investors.

 

ACCOUNT NUMBER:

Account number is the specific number given to a particular consumer for the purpose of accounting.

 

BILL:

A bill is a conditional order written by one person to another, signed by the person concerned requesting the person to whom it is given to pay a certain amount of money at a particular date.

 

AUTHORITY:

The word Authority is used to identify the power centered to NEPA as specified in Decree NO 24 of 1972. The words authority, industry and NEPA will be interchanged in this work project.

 

 

 

MAXIMUM DEMAND CONSUMERS:

There are consumers who was the higher limit of electricity supply the industry consumers are also maximum demand consumers in NEPA

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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