FINANCING INFRASTRUCTURE IN DEVELOPING COUNTRIES (A CASE SUDY OF NIGERIA)

PROPOSAL

 

          One of the most critical urban development issues facing Nigeria is the financing of urban infrastructure and delivery of urban services.  The study arises because of impact of urban infrastructure and services on economic development of developing countries especially Nigeria.

The major challenge facing Nigeria today is how to restore urban infrastructure and services which have over the years of military regime decayed and collapsed.  To this end, first, to make cities good places for economic development, and, secondly, to provide basic services for urban dwellers, especially the urban poor.

The study among things, looks into the various forms of finances from local (municipal), state and federal government, banking sector and private sector participation and involvement in improving urban infrastructure and services in Nigeria.  In addition, various government policies and programmes were equally evaluated to wards finding strategies and opportunities for the restoration of urban infrastructure and services in Nigeria.

The physical condition of Nigeria infrastructure water supply; sewerage, sanitation, urban road, electricity, drainage, waste disposal, school, hospital is generally poor.  For example only about half of the people in Nigeria’s urban areas have access to pipe-born water in and , or around their homes.

All types of infrastructure suffer from massive backlog of neglected rehabilitation and maintenance, not to talk of the investment needed to serve future growth.

The study was discussed in five chapters.  Literature related to urban infrastructure financial and service deliveries were extensively presented and discussed in chapter two.

CHAPTER ONE

Introduction

1.1     Background of the study

1.2     Statement of problem

1.3     Objectives of the study

1.4     Significance of the study

1.5     Significance of the study

1.6     Scope of the study

1.7     Selection of sample cities

1.8     Limitations and delimitations of the study

1.9     Definitions of technical terms

REFERENCES

 

CHAPTER TWO

• LITERATURE REVIEW
  • Financial infrastructure in developing countries earlier approach
  • Financing urban infrastructure and services in Nigeria

2.2.1 Immediate priorities

2.2.1.1 Reorientation of public expenditure

2.2.1.2 Targeting the urban poor

2.2.1.3 Counterpart funding from state annual budgets

• Medium term agenda
• Mobilization of state and local revenues
• Property taxes potential –IDF experience
• Public sector borrowing
• Alternative infrastructure financing options
• Private investment

REFERENCES

 

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

• General features of the research
• Method of data collection
• Sources of data
• Location of data
• Tools for data analysis
• Basis selection of sample
• Bases of selection
• Location of sample cities
• Overview of sample cities
• Limitations of information
• Method of data analysis
• Data analysis techniques

 

 

CHAPTER FOUR

• Data presentation
• Data analysis
• Test of hypothesis
• Inter predating data

 

CHAPTER FIVE

FINDINGS RECOMMENDATIONS AND CONCLUSION

• Summary of findings
• Conclusion
• Recommendations

BIBLIOGRAPHY

 

 CHAPTER ONE

                                  

INTRODUCTION

• BACKGROUND OF THE STUDY

Nigeria is urbanizing at an astonishing pace.  The share of Nigeria’s population increased from 20% in 1970 to about 38% in 1993 (the world banking) of the nearly 110 million Nigerians, about 40 million are now living in cities and towns.  The urban population grew at around 5.5% per year from 1980 to 1993 (compared with 2.9% for the national population).  This is among the highest urban growth rates in the world, due mainly to migration from rural areas.  At current roles, the number of urban dwellers will double in only 13 years.  This is equivalent to a city of three million each years.  Such growth is creating an immense and largely unmet demand.  For urban services such as water, sanitation, road, public transport, waster disposal, health and education.

The physical condition of Nigeria’s infrastructure water supply, sewerage, sanitation, urban road, electricity, drainage, waste disposal, school hospital is generally poor.  For example only about half of the people in Nigeria’s urban areas have access to pipe-born water in and, or around their homes.  All types of infrastructure suffer from a massive backlog of neglected rehabilitation and maintenance, not to talk of the investments needed to serve future growth.  Periodic and routine maintenance by for the most management of municipal wastes – sewage, seepage, and refuses Nigeria major urban environmental problem.  Improving waste management is more of a policy and management issue than a technical one.  Industrial waste is another major urban environmental concern.  The most critical firms with 50 or more employees, these extra costs amount to some 10% of the total machinery and equipment budget.  For small firms, the burden is an high as 25%.  According to the world bank reports, inadequate public services can also raise cost.  For the urban poor, who wither rely on alternative, costly provides (such as water vendors) or spend large amount of time (as in fetching water from inconvenient sources) the world banks, 1995.

A large number of people in Nigeria’s urban area do not have enough income to meet their basic needs of food, shelter and cloth.  About 21% of the urban population-8.5 million people (as per 1991 population census) was estimated to be below the poverty line in 1992/93 (the world bank, 1995). Of these, about 1.1 million were classified as “several poor” by the world bank.  The vast majority of the urban poor are in cities other than Lagos, such as Onitsha, Kano, Kaduna, Abuja, Enugu, Port Harcourt etc.  Their cash income is insufficient to cover minimal standards of food, water, fuel, shelter, medical care, and schooling.  The urban poor live in airborne emission are sulphur dioxide, carbon monoxide, and nitrogen oxides, which pose serious health hazards in urban areas.

Industrial and air pollution need to be dealt with by enforced regulation coupled with economic incentives to change the behavior of industries and users of motor vehicles.

From the foregoing, one will notice that our infrastructures have deteriorated an urban services collapsed.  But no one is left in doubt the crucial role urbanization plays as a positive force in economic development.  Cities and towns are the home of most industry, commerce, and services.  These sectors of the economy can be highly productive.  World wide, higher per capital incomes are closely related to higher levels of urbanization.  Urban based, non-oil industry and services accounted for about half of Nigeria’s gross domestic product (GDP) between 1995 and 1994.  thus, average per capital income in urban areas is around one third higher than in rural areas.  This is the basic reason why attention should be focused on financing strategies for urban infrastructure development in Nigeria to boost productivity and growth of our developing economy.

It is on this premise that the author (researcher) wishes to study empirically the sources of finance available and financial strategies available to finance the urban infrastructure and services with regard to Nigeria economy.  The problems associated with government past option and agenda towards the restoration of urban “decay”.  In this work also, the writer dealt on the institutional arrangement from the world bank and other similar bodies-both in short term (immediate) and medium term.

 

• STATEMENT OF THE PROBLEM

As have been noted, the benefit that an economy can derive from infrastructure development cannot be over emphasized.  The economic pressures behind urbanization are very powerful.  Cities and towns are the home of most industry, commerce, and services.  These sectors of the economy can be highly productive. World wide, higher per capital incomes are closely related to higher levels of urbanization lack of infrastructure, limits investment and the lack of limits infrastructure, low-level equilibrium to finance urban infrastructure and services.

Urban public authorities in developing countries like Nigeria have come under increasing financial pressures during the last decade.  They now face a rapidly growing demand for urban services as a result of continuing rapidly growth howe4ver, there capacity to supply urban services as well as undertake the necessary infrastructure development, is severely constrained by a shortage of fiscal resources.  This situation is the result of a combination  of factors including reductions in inter-governmental transfers, increased cost of debt servicing, as well as the cost of borrowing due high interest rates, and higher unit costs of providing services which have restricted revenue growth.  To compound the problem many cities not only have a massive backlog of new infrastructure requirements but also need to allocate substantially more resources to maintenance renovation, and replacement of older, deteriorating equipment.

However, in Nigeria, government has not lived up to expectations envisaged convening urban infrastructure and services provisions.  This situation is not unconnected with many problems these urban centers hold for the economy, which are follows:

1. Urban poverty
2. Urban pollution

• Urban policies in disarray.

But government cannot do every thing.  The widely held view that government should handily all urban development activities is another big problem.  This idea persists even in the face of the obvious weaknesses of public sector institutions: inadequate budgets, low remuneration of employees, poor management practice and political interference, to name a few.

Ineffective local government system is another critical problem in urban infrastructure development in Nigeria.  Today’s local government administration is little more than caretakers, unable to carry out their statutory and assigned functions.  The large numbers of local government is a huge administrative and fiscal burden for states and the federal government in urban infrastructure and service deliveries in Nigeria.

Hence, the author (researched would advance solution to the problems and at the some time make very useful recommendations that will both alleviate these problems and enhance development of urban infrastructure and service in developing countries (Nigeria).

 

• STATEMENT OF OBJECTIVES

With reference to the problems already mentioned in 1.2 above, this empirical study is designed towards achieving the following objectives, which motivate the author (researcher) into action.

 

1. To critically examine and discuss the various ways urban infrastructure and service could be financed in a developing economic like Nigeria.
2. To find out the role being played by the various government levels towards the provision of urban infrastructure and services to its growing urban population in an economy.

• To determine the extent institutional arrangements of the various economic groups like the world bank had helped in urban infrastructure deliveries in Nigeria.

1. To analyze the overall problems that inhibits the present arrangements (practices) in Nigeria towards urban development.
2. To offer solutions and or recommendations that will help developing economic like Nigeria in urban development programme (in areas of urban infrastructure and services).

 

• SIGNIFICANCE OF THE STUDY

This study comes at a key juncture for the world’s urban area.  Urbanization is proceeding rapidly, and it is projected that by the year 2020 more than half the population of the developing world will live in cities and towns (the world bank, 1996).  Yet even as cities increasingly become the nexus of economic and population growth, they do not deliver on the promise of a better quality of life to the extent they could. Millions of urban residents in Nigeria do not have access to potable water near their homes, basic sanitation is often lacking, electricity and power supply is epileptic, roads had deteriorated with pot-holes, and access to health services and education pose serious problems in many cities.

 

1. It is view of above and more that the researcher is carrying out this study entitled “financing urban infrastructure and services in developing countries an empirical study of selected Nigeria cities”.  It is hoped that the study when completed will disclose various ways urban infrastructure and services are financed in Nigeria.
2. The study when completed will equally find out the role played by the governments towards the provision of urban infrastructure.

• It is hoped that this study will indicated the extent institutional arrangement had helped in urban infrastructure deliveries in Nigeria.

1. It is also hoped that this study will analyze overall problems inhibiting the present arrangements in Nigeria towards urban development programmes.
2. Lastly, it is hoped that the recommendation of this study would be of empirical relevance to Nigeria government in several fields in urban infrastructures development programme, towards restoring urban Nigeria. Furthermore, the relevance of this study is inexhaustible as it will equally map out strategies and issues regarding urban infrastructure and services in Nigeria, all aimed at restoring urban infrastructure and services, better urban services and urban financial management in Nigeria.
   • SCOPE OF THE STUDY

The study will cover selected Nigeria cities comprise of Onitsha, port Harcourt, Kano, Kaduna and Lagos.  Urban cities were chosen covering and spreading across Nigeria (Geographic balance).  From the sample taken and studied, inferences can be made on the other urban cities not studies in Nigeria.  Generalization therefore can be made regarding in fractural financial and development in developing economy.  The selection of the five Nigerian cities is unique as all the five cities have many things in common commercial and industrial centers, state capitals with exception of Onitsha, estimated annual growth rate 3.5% with exception of Lagos which is 5.0% as per world bank report.

 

• SELECTION OF SAMPLE CITIES

The Nigeria cities selected for the study were as follows:-

• Lagos
• Onitsha
• Port-Harcourt
• Kaduna
• Kano

AREA OF LOCATION

–        Lagos          – South, West

• Onitsha        – South, East
• Port Harcourt – South, South
• Kano – North, North
• Kaduna – North central

Analysis on how this cities finance urban infrastructures.

Lagos – commercial city/industrial /administration

Onitsha – commercial city / industrial city

Port Harcourt – industrial city/ administration city

Kano – commercial industrial/ administration city.

 

• LIMITATIONS AND DELIMITATIONS OF THE STUDY

This research work was constrained by academic work load, finances, time, paucity of data and other ancillary problems were the handicaps that limit the scope of the study.  The responses from agencies and organization visited were not encouraging as many of them were public sector which is associated with bureaucracy and re-tape in the operations and deliveries.  Nevertheless, it is hoped that the study will represent the financing alternatives available for urban infrastructure development not in Nigeria but in other developing countries of the world.  It will also show a time and fair view and position of those cities studies so that any conclusion drawn from them will have empirical relevance not only to Nigeria but the world in general.

Because of these limiting factors encounter the researcher is limiting his study to financing urban infrastructure and services in developing countries.  An empirical evidence form selected Nigeria cities (of Lagos, Kano, Kaduna, Port Harcourt and Onitsha).

 

• DEFINITION OF TECHNICAL TERMS

Infrastructure: social goods such as road, electricity, water supply, sewage, drainage, solid waste collection, telecommunications, public housing, transportation, educations, and health facilities.

Developing countries:- sometimes known as LDCs (Less Developed countries), they comprise those countries which for some reasons have been backward in developing their economic resources with the result that their peoples have a much lower standard of living.

IDF – Infrastructure Development fund

SPO- Standing payment other

FMF – Federal ministry of finance

CBN – Central bank of Nigeria

SEC – Securities and exchange commission

Federation account – account of the federal government where all collectable revenues are deposited.

UDBN – Urban development bank of Nigeria federal statutory allocation- allocation made to levels of government through the federation account. FMW&H – Federal ministry of works and housing.

PIU – Project implementation units.

PFI – Participating financial institutions.

Population – number of inhabitants of an area.

GDP – (Gross Domestic product) the money value of all the goods an services produced within a country but excluding net income from abroad.

GNP – (Gross National Product)- the money value of all the goods and services produced in a country during one year at factory cost, i.e excluding taxes such as VAT.

NUDP – National urban development policy.

 

 

REFERENCES

World Bank (1995) Restoring Urban Nigeria A strategy for restoring urban infrastructure and services in Nigeria, Washington D.C U.SA

Ibid, P. 10

Ibid

Ibid, P.9

Mc master James (1997) Urban financial management

A training manual, world Bank Economic Development Institute, Washington D.C. USA, P.1

World Bank (1996) Better Urban services :- Dev in practice, series Washington D.C USA

World Bank (1997), Nigeria Urban Infrastructure Financing Lagos and Abuja, May 1997.

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

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FINANCING INFRASTRUCTURE IN DEVELOPING COUNTRIES (A CASE SUDY OF NIGERIA)

CHAPTER ONE

Introduction

1.1     Background of the study

1.2     Statement of problem

1.3     Objectives of the study

1.4     Significance of the study

1.5     Significance of the study

1.6     Scope of the study

1.7     Selection of sample cities

1.8     Limitations and delimitations of the study

1.9     Definitions of technical terms

REFERENCES

 

CHAPTER TWO

• LITERATURE REVIEW
  • Financial infrastructure in developing countries earlier approach
  • Financing urban infrastructure and services in Nigeria

2.2.1 Immediate priorities

2.2.1.1 Reorientation of public expenditure

2.2.1.2 Targeting the urban poor

2.2.1.3 Counterpart funding from state annual budgets

• Medium term agenda
• Mobilization of state and local revenues
• Property taxes potential –IDF experience
• Public sector borrowing
• Alternative infrastructure financing options
• Private investment

REFERENCES

 

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

• General features of the research
• Method of data collection
• Sources of data
• Location of data
• Tools for data analysis
• Basis selection of sample
• Bases of selection
• Location of sample cities
• Overview of sample cities
• Limitations of information
• Method of data analysis
• Data analysis techniques

 

 

CHAPTER FOUR

• Data presentation
• Data analysis
• Test of hypothesis
• Inter predating data

 

CHAPTER FIVE

FINDINGS RECOMMENDATIONS AND CONCLUSION

• Summary of findings
• Conclusion
• Recommendations

BIBLIOGRAPHY

 

 CHAPTER ONE

                                  

INTRODUCTION

• BACKGROUND OF THE STUDY

Nigeria is urbanizing at an astonishing pace.  The share of Nigeria’s population increased from 20% in 1970 to about 38% in 1993 (the world banking) of the nearly 110 million Nigerians, about 40 million are now living in cities and towns.  The urban population grew at around 5.5% per year from 1980 to 1993 (compared with 2.9% for the national population).  This is among the highest urban growth rates in the world, due mainly to migration from rural areas.  At current roles, the number of urban dwellers will double in only 13 years.  This is equivalent to a city of three million each years.  Such growth is creating an immense and largely unmet demand.  For urban services such as water, sanitation, road, public transport, waster disposal, health and education.

The physical condition of Nigeria’s infrastructure water supply, sewerage, sanitation, urban road, electricity, drainage, waste disposal, school hospital is generally poor.  For example only about half of the people in Nigeria’s urban areas have access to pipe-born water in and, or around their homes.  All types of infrastructure suffer from a massive backlog of neglected rehabilitation and maintenance, not to talk of the investments needed to serve future growth.  Periodic and routine maintenance by for the most management of municipal wastes – sewage, seepage, and refuses Nigeria major urban environmental problem.  Improving waste management is more of a policy and management issue than a technical one.  Industrial waste is another major urban environmental concern.  The most critical firms with 50 or more employees, these extra costs amount to some 10% of the total machinery and equipment budget.  For small firms, the burden is an high as 25%.  According to the world bank reports, inadequate public services can also raise cost.  For the urban poor, who wither rely on alternative, costly provides (such as water vendors) or spend large amount of time (as in fetching water from inconvenient sources) the world banks, 1995.

A large number of people in Nigeria’s urban area do not have enough income to meet their basic needs of food, shelter and cloth.  About 21% of the urban population-8.5 million people (as per 1991 population census) was estimated to be below the poverty line in 1992/93 (the world bank, 1995). Of these, about 1.1 million were classified as “several poor” by the world bank.  The vast majority of the urban poor are in cities other than Lagos, such as Onitsha, Kano, Kaduna, Abuja, Enugu, Port Harcourt etc.  Their cash income is insufficient to cover minimal standards of food, water, fuel, shelter, medical care, and schooling.  The urban poor live in airborne emission are sulphur dioxide, carbon monoxide, and nitrogen oxides, which pose serious health hazards in urban areas.

Industrial and air pollution need to be dealt with by enforced regulation coupled with economic incentives to change the behavior of industries and users of motor vehicles.

From the foregoing, one will notice that our infrastructures have deteriorated an urban services collapsed.  But no one is left in doubt the crucial role urbanization plays as a positive force in economic development.  Cities and towns are the home of most industry, commerce, and services.  These sectors of the economy can be highly productive.  World wide, higher per capital incomes are closely related to higher levels of urbanization.  Urban based, non-oil industry and services accounted for about half of Nigeria’s gross domestic product (GDP) between 1995 and 1994.  thus, average per capital income in urban areas is around one third higher than in rural areas.  This is the basic reason why attention should be focused on financing strategies for urban infrastructure development in Nigeria to boost productivity and growth of our developing economy.

It is on this premise that the author (researcher) wishes to study empirically the sources of finance available and financial strategies available to finance the urban infrastructure and services with regard to Nigeria economy.  The problems associated with government past option and agenda towards the restoration of urban “decay”.  In this work also, the writer dealt on the institutional arrangement from the world bank and other similar bodies-both in short term (immediate) and medium term.

 

• STATEMENT OF THE PROBLEM

As have been noted, the benefit that an economy can derive from infrastructure development cannot be over emphasized.  The economic pressures behind urbanization are very powerful.  Cities and towns are the home of most industry, commerce, and services.  These sectors of the economy can be highly productive. World wide, higher per capital incomes are closely related to higher levels of urbanization lack of infrastructure, limits investment and the lack of limits infrastructure, low-level equilibrium to finance urban infrastructure and services.

Urban public authorities in developing countries like Nigeria have come under increasing financial pressures during the last decade.  They now face a rapidly growing demand for urban services as a result of continuing rapidly growth howe4ver, there capacity to supply urban services as well as undertake the necessary infrastructure development, is severely constrained by a shortage of fiscal resources.  This situation is the result of a combination  of factors including reductions in inter-governmental transfers, increased cost of debt servicing, as well as the cost of borrowing due high interest rates, and higher unit costs of providing services which have restricted revenue growth.  To compound the problem many cities not only have a massive backlog of new infrastructure requirements but also need to allocate substantially more resources to maintenance renovation, and replacement of older, deteriorating equipment.

However, in Nigeria, government has not lived up to expectations envisaged convening urban infrastructure and services provisions.  This situation is not unconnected with many problems these urban centers hold for the economy, which are follows:

1. Urban poverty
2. Urban pollution

• Urban policies in disarray.

But government cannot do every thing.  The widely held view that government should handily all urban development activities is another big problem.  This idea persists even in the face of the obvious weaknesses of public sector institutions: inadequate budgets, low remuneration of employees, poor management practice and political interference, to name a few.

Ineffective local government system is another critical problem in urban infrastructure development in Nigeria.  Today’s local government administration is little more than caretakers, unable to carry out their statutory and assigned functions.  The large numbers of local government is a huge administrative and fiscal burden for states and the federal government in urban infrastructure and service deliveries in Nigeria.

Hence, the author (researched would advance solution to the problems and at the some time make very useful recommendations that will both alleviate these problems and enhance development of urban infrastructure and service in developing countries (Nigeria).

 

• STATEMENT OF OBJECTIVES

With reference to the problems already mentioned in 1.2 above, this empirical study is designed towards achieving the following objectives, which motivate the author (researcher) into action.

 

1. To critically examine and discuss the various ways urban infrastructure and service could be financed in a developing economic like Nigeria.
2. To find out the role being played by the various government levels towards the provision of urban infrastructure and services to its growing urban population in an economy.

• To determine the extent institutional arrangements of the various economic groups like the world bank had helped in urban infrastructure deliveries in Nigeria.

1. To analyze the overall problems that inhibits the present arrangements (practices) in Nigeria towards urban development.
2. To offer solutions and or recommendations that will help developing economic like Nigeria in urban development programme (in areas of urban infrastructure and services).

 

• SIGNIFICANCE OF THE STUDY

This study comes at a key juncture for the world’s urban area.  Urbanization is proceeding rapidly, and it is projected that by the year 2020 more than half the population of the developing world will live in cities and towns (the world bank, 1996).  Yet even as cities increasingly become the nexus of economic and population growth, they do not deliver on the promise of a better quality of life to the extent they could. Millions of urban residents in Nigeria do not have access to potable water near their homes, basic sanitation is often lacking, electricity and power supply is epileptic, roads had deteriorated with pot-holes, and access to health services and education pose serious problems in many cities.

 

1. It is view of above and more that the researcher is carrying out this study entitled “financing urban infrastructure and services in developing countries an empirical study of selected Nigeria cities”.  It is hoped that the study when completed will disclose various ways urban infrastructure and services are financed in Nigeria.
2. The study when completed will equally find out the role played by the governments towards the provision of urban infrastructure.

• It is hoped that this study will indicated the extent institutional arrangement had helped in urban infrastructure deliveries in Nigeria.

1. It is also hoped that this study will analyze overall problems inhibiting the present arrangements in Nigeria towards urban development programmes.
2. Lastly, it is hoped that the recommendation of this study would be of empirical relevance to Nigeria government in several fields in urban infrastructures development programme, towards restoring urban Nigeria. Furthermore, the relevance of this study is inexhaustible as it will equally map out strategies and issues regarding urban infrastructure and services in Nigeria, all aimed at restoring urban infrastructure and services, better urban services and urban financial management in Nigeria.
   • SCOPE OF THE STUDY

The study will cover selected Nigeria cities comprise of Onitsha, port Harcourt, Kano, Kaduna and Lagos.  Urban cities were chosen covering and spreading across Nigeria (Geographic balance).  From the sample taken and studied, inferences can be made on the other urban cities not studies in Nigeria.  Generalization therefore can be made regarding in fractural financial and development in developing economy.  The selection of the five Nigerian cities is unique as all the five cities have many things in common commercial and industrial centers, state capitals with exception of Onitsha, estimated annual growth rate 3.5% with exception of Lagos which is 5.0% as per world bank report.

 

• SELECTION OF SAMPLE CITIES

The Nigeria cities selected for the study were as follows:-

• Lagos
• Onitsha
• Port-Harcourt
• Kaduna
• Kano

AREA OF LOCATION

–        Lagos          – South, West

• Onitsha        – South, East
• Port Harcourt – South, South
• Kano – North, North
• Kaduna – North central

Analysis on how this cities finance urban infrastructures.

Lagos – commercial city/industrial /administration

Onitsha – commercial city / industrial city

Port Harcourt – industrial city/ administration city

Kano – commercial industrial/ administration city.

 

• LIMITATIONS AND DELIMITATIONS OF THE STUDY

This research work was constrained by academic work load, finances, time, paucity of data and other ancillary problems were the handicaps that limit the scope of the study.  The responses from agencies and organization visited were not encouraging as many of them were public sector which is associated with bureaucracy and re-tape in the operations and deliveries.  Nevertheless, it is hoped that the study will represent the financing alternatives available for urban infrastructure development not in Nigeria but in other developing countries of the world.  It will also show a time and fair view and position of those cities studies so that any conclusion drawn from them will have empirical relevance not only to Nigeria but the world in general.

Because of these limiting factors encounter the researcher is limiting his study to financing urban infrastructure and services in developing countries.  An empirical evidence form selected Nigeria cities (of Lagos, Kano, Kaduna, Port Harcourt and Onitsha).

 

• DEFINITION OF TECHNICAL TERMS

Infrastructure: social goods such as road, electricity, water supply, sewage, drainage, solid waste collection, telecommunications, public housing, transportation, educations, and health facilities.

Developing countries:- sometimes known as LDCs (Less Developed countries), they comprise those countries which for some reasons have been backward in developing their economic resources with the result that their peoples have a much lower standard of living.

IDF – Infrastructure Development fund

SPO- Standing payment other

FMF – Federal ministry of finance

CBN – Central bank of Nigeria

SEC – Securities and exchange commission

Federation account – account of the federal government where all collectable revenues are deposited.

UDBN – Urban development bank of Nigeria federal statutory allocation- allocation made to levels of government through the federation account. FMW&H – Federal ministry of works and housing.

PIU – Project implementation units.

PFI – Participating financial institutions.

Population – number of inhabitants of an area.

GDP – (Gross Domestic product) the money value of all the goods an services produced within a country but excluding net income from abroad.

GNP – (Gross National Product)- the money value of all the goods and services produced in a country during one year at factory cost, i.e excluding taxes such as VAT.

NUDP – National urban development policy.

 

 

REFERENCES

World Bank (1995) Restoring Urban Nigeria A strategy for restoring urban infrastructure and services in Nigeria, Washington D.C U.SA

Ibid, P. 10

Ibid

Ibid, P.9

Mc master James (1997) Urban financial management

A training manual, world Bank Economic Development Institute, Washington D.C. USA, P.1

World Bank (1996) Better Urban services :- Dev in practice, series Washington D.C USA

World Bank (1997), Nigeria Urban Infrastructure Financing Lagos and Abuja, May 1997.

Download our android mobile app for more materials

ORDER NOW

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

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

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

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

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

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

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FINANCIAL PLANING AND CONTROL:  A KEY TO MANAGEMENT EFFICIENCY.

(A CASE STUDY OF NIGERIAN BREWERIES PLC)

ABSTRACT

Planning and control have become part and percel of our daily ;lives.  We may no like it and we may even recent to when it is imposed but we have come to realize that is an essential factor in nation, business and private live.  This project “financial planning and control – A key to management efficiency aims at finding how our financial planning ad control has helped management of large-scale organisation achieve their efficiency.

Moreover, the project also delved into the consequences of the present economic recession in Nigeria on financial planning and control of many industries.  Nigeria Breweries Plc vis-a vis other industries in Nigeria was discovered to be having problems like those of finance, raw materials , spare part, foreign exchange etc.

The project also covered the prudence of financial manager under this economic to carry out their activities of financial planning and control.

PROPOSAL

 

The topic is this project is “financial Planning and control – A key to management efficiency in large scale organisation.

This project aims at finding out how financial planning and  control has help management of large scale organisations achieve efficiency.

We will see in this  project the general introduction of what financial planning and control is all about, the purpose and significance of the study, the research problems and reasons for the limitation  of the study to only organisation in  Nigeria.

We will also see  in this project the review of related literature to the topic in question.  It is divided into local and foreign literature and is made up of reviews of different text books, journals magazines and newspaper publication form which topics which provide as framework for planning the firms growth and the development of financial control for its efficiency were reviewed.

We will also see the research methods used in obtaining data for this work.

The presentation, analysis and interpretation of data collected form Nigerian Breweries Plc will be seen in this project.  It relates the historical development of the organisation  and also considers its budget system and decentralized operations through which the management controls and co-ordinates their activities.

Finally, we will see the numerous conclusions drawn for the findings and recommendations will based on these conclusions.

CHAPTER  ONE

• INTRODUCTION

1.1   Background of the study

• Statement of the Study
• Objectives of the Study
• Significance of the Study
• Research Questions
• Statement of Hypothesis
• Scope and Limitations
• Definition Term

CHAPTER TWO

• REVIEW OF RELATED LITERATURE

2.1   Review of the Nigeria Economy

• Financial Planning
• Procedure for Financial Planning
• Financial Planning and Control
• Financial Planning use in Nigeria
• Uses of Financial Planning
• Forms of Financial Control
• Tools of Financial Management
• Factors to be considered when  planing Finance

 

CHAPTER THREE

• RESEARCH METHODOLOGY

3.1   Survey Instrument

• Sources of Data
• Sample size
• Method of Investigation
• Method of analysis
• Interview Questions

 

CHAPTER FOUR

• PRESENTATION ANALYSIS AND INTERPRETATION OF DATA

4.1   Data Representation, Analysis and Interpretation

• Test of Hypothesis

 

CHAPTER FIVE

• FINDING, CONCLUSION AND RECOMMENDATIONS

5.1   Summary of Findings

• Conclusion
• Recommendations

Bibliography

 

 

CHAPTER ONE

• INTRODUCTION

1.1   BACKGROUND OF THE STUDY

“It s something of a truism that we are living in an era of planning and control.  Whether it be the housewife with her house keeping allowance or the industrialist with his responsibilities to shareholders, planning and control are a part and percel of our daily lives and it is an essential factor in national business and privet life”

In a competitive world where the key factors are costs, price turnover and profit planning and control enable every individual to have a sound appreciation of the financial implications of his plans and actions, financial planning and control can be used by any size of type of organisation and in degree varying form a complete system, covering decentralized departments to organisation with only a single procedure.  As a tool of management, it can increase the efficiency of the organisation as a whole since all the departments are involved.

Moreso, no business can prosper unless all functions accounting finance, marketing, personnel and so forth are fully staffed with competent individuals.

The efficiency and effectiveness of any organisation therefore depends on a number of factors which may be categorized as clarity of purpose, management, planning, control and communications. There is need to have a knowledge of the objectives of the organisation  otherwise it will not be possible to identify goals set targets for their achievement in form of planning control and management of it finance.

According to Eugene F. Brigham & B .J compesy, “Finance Management involves planning for, acquiring and utilizing funds in a way that maximizes the efficiency and value of the firm”.  Most especially finance is the evaluation and acquisition of productive assets, procurement of funds and disbursement of funds. It involves four basic issues which  are the functions of the financial officer.  These functions are:

• Raising of funds to finance projects.
• Employment of these funds in viable projects
• Management of the cash flow arising form these project, and
• Return of funds to their funding or original source Financial capital is the major resources of any firm.

The financial manager’s duty is to implement the acquisition, allocation and management of these resources. Finance therefore spreads into all segments of a firm’s activities thus, its function must be understood by all the managers in the firm.

Having known the future financial needs of a firm and its financial policies the question then is, how are these financial or funds raised ?   This required the knowledge of the financial markets form which funds are drawn.  It also required a knowledge of how to make sound investment decisions and to stimulate efficient operations in the organisation.  These are alternative choice in financial decisions.

The choice includes the use of internal or external sources,  According to U. N  Harper, “before looking outside a firm for fund, the possibility of providing  such funds internally should be examined.”

This source is mostly used for the firms expansion and should not be overlooked when planning finance.

They are generated from the operations of the firm and is mostly made up of undistributed or retained profits, depreciation provision, tax provision and reduction in current assets.    The external sources on the other hand are made up of two main types namely short-term funds and long-term funds.

SHORT TERM FUND:  These consists of trade credits bank overdrafts, bank loans and promissory notes etc.

LONG TERM FUNDS:  These refer to funds obtained either form loans with a maturity data several years in the future or from the owners of the business.   They consist of two broad types viz. equity funds and debt funds.

Equity funds represent the total interest of the owners o the business in the form of original share contributions plus subsequent additions either by way of additional investment or by ploughing back profits or reserves into the business.  Debt funds are the long term debt obligations of the business and  its usually made up of secured and unsecured debentures and bonds.  The main sources of these long term funds are the banks and the capital markets.

The need for financial planning therefore arises because financial resources are limited and costly and even where the resources are available the areas into which they could be applied profitably are diverse.  Moreover, planning and control are the essence of profit planning and act as a device that enables management to anticipate change and adopt to it. No business exist without some form of this Siamese twin concept and success in business is proportionate to its planning and the skill with which it is controlled.

According to B. C Lenke and J. O. Edwards, financial planning and control can therefore be said to be the name given to a system which is being used to increase overall management efficiency.”

It is concerned with planning for allocation of resources, monitoring the usage of these resources to assist in achieving the objectives of effectiveness and efficiency both large and small scale organisation.

• STATEMENT OF THE PROBLEM

Major Problems:

This project will attempt to determine the extent to which financial planning and control enables management to achieve its set objectives efficiently.

Sub Problem:

A successful organisation can be said to be an organisation that knows  what it wants to achieve, success in achieving these goals and does so without having to take a sledge hammer to crack a nut.  Most organisation however take the sledge hammer to crack nuts while trying to achieve their goals.  This study will therefore try o answer such questions like:

• Is the enterprises process set to obtain maximum profits ?
• Is a satisfactory returns on investment being realized over the complete economic cycle ?
• What problems affect the implementation of financial planning and control system in the company ?
• What kind of control should be applied ?
• How effective is this control ?
• What action should be taken to ensure optimum use of facilities both in the intermediate and long term

future ?

 

• OBJECTIVES OF THE STUDY

Planning and control are essential ingredients of successful management at all levels.   Their proper exercise is often the key to managerial efficiency and growth.

The purpose of this study therefore will be to develop a realistic picture of how financial planning and control can help make an organisation more efficient, effective and successful since it helps managers to know the financial implications of their plans and actions.

• SIGNIFICANCE OF THE STUDY

In a competitive world, the key factors are costs, price, turnover and profits and these are factors which no manager can ignore.  Moreover, no business can survive for long time unless it makes an adequate profit, otherwise the investors who supply the  capital will take steps to winds it up and place their money elsewhere.  Profit therefore remains then overall measure of efficiency and the sign of success.  The importance of this study will lie in the development of methods of using financial planning and control to help management in making relevant policy decision which if well applied will increase their efficiency and effectiveness.    This will in turn help create an opportunity for the firm to achieve their maximum profit which will be beneficial to the shareholders, employee, future project writers , and the community.

 

• RESEARCH QUESTIONS

1. What do you think is the major problem that affects the implementation of financial planning and control; system in the company.
2. Do you think the fund managers of Nigeria breweries exercises prudence in their work, if not does it affect planning and control in the company ?
3. What is the implication of poor financial planning and control.

 

• STATEMENT FO THE HYPOTHESIS

1. Ho: The present economic situation is the major
   problems that affects the implication of financial
   planning and control system in the company.

Hi:  The present economic situation ids not the major
problems that affects the implementation of financial
planning and control system in the company.

2. Ho: The attitude o find manager of Nigeria breweries as
   regards to exercising of prudence in their work

affects planning and control in the company.

Hi:  The attitude of fund managers in Nigerian breweries
as regards to exercising of  prudenc3e in their work
does not affect planning and control in the company.

3. Ho: Poor planning and control affect the maximization of
   profit in the company.

Hi:  Poor planning and control does not affect the
maximization of profit in the company.

 

• SCOPE AND LIMITATION

There project writer intends to explain how the financial function can assist in the planning and control of large scale organisation in Nigeria.  However, the study will cover only one organisation – Nigeria breweries Plc.   The coverage of only one organisation out of the numerous industrial in the same category in Nigeria is not without some constraints.

One of there greatest limitation of this study is time.   The time allowance is short, this made it difficult  for the project writer to put up a very comprehensive study.  Another limitation is the inadequate of funds  for effective financing of the research work.  The availability of funds would have made it possible for the project writer to visit other large scale organisations within the country.

In addition tot he above is the unco-operative attitude of some members of management of Nigerian.

Breweries Plc in obtaining the profit plan of the company, (even though it is a public company).

Nevertheless, the  project writer hopes that the analysis of variances from the profit plan that was made available to the researcher after so much trouble would  enable the company as well as future researchers to have an insight of the companies and conclusions.

 

• DEFINITION OF TERMS

Finance – The evaluation and acquisition of production assets, procurement of funds and disbursement of funds.

Equity funds – The total interest of the owners of the business in the form of original share contribute plus subsequent additions either by way of additional investment or by ploughing back profits/reserves.

Debt Funds – The long-term debt obligations for the business and is usually made up of secured and unsecured debentures and bonds.

Efficiency – Is concerned with the quality of people vis-a-vis the resources required to achieved an organisations goal.

In other words, it is the rate of output to input

Policies – Statements that attempt to inform and guide employees so that the totality of action by individualize are constant with the essence of direction of the company.

Objective – The goal organisation or individual sets out to achieve.

Effectively – The degree to which the round the organisation achieves its goal.

Management – The process by which a cooperatives groups directs  actions towards common goal.

Liquidity – Refers to a firms a cash position and its ability to meet maturing obligations.

Working Capital – Refers to a firms investment in short term assets- cash, short term securities, accounts receivable and inventories.

Planning –  A delineation of goals and a formulation of a decision model for selecting means of achieving them.

Control –  The presence in a business of that force which guides it to a predetermined policies and decisions.

Organisation –  a complex social system which brings together a number of individual proper

Strategies Planning – Is planning in regard tot he general direction of the organisation, it considers the resources of the  organisation, the likely behaviour of competitors, the direction of technological change and the projected demands of the market place.

Capital investments – Investments which yields return during several future time period.

Funds flow –   A statement which provides an analysis of the sources of additional funds available to the enterprises during an accounting period and an analysis of the manner in which they have been utilized.

Cash flow-  A statement which explains the change in the cash situation of an enterprise during the accounting period.

Budget –  (a financial plan) A quantitative expression of a plan of action and an aid to coordination and implementation.

REFERENCES

 

1. A. H Taylor & R. e Palmer, Financial Planning and
   Control 1975, (Pan Books Ltd London and Sydney) Page 1

 

2. Eugene Brigham & B. J Campsey, Introduction to financial Management, 1985 (The dayden press)Page 4.

 

3. M. Harper, Management Accounting, 1975, (M & E Handbook Series)

 

4. C Demke and James Don Edward; Administrative control and Executive Action, 2^nd Edition 1977, P 58

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FINANCIAL INSTITUTION AND ECONOMIC DEVELOPMENT IN NIGERIA (A CASE STUDY OF AFRI BANK A SABA BRANCH, DELTA STATE)

Chapter one:        Introduction                            1

• Purpose of the study 9
• Statement of the problem 10
• Theoretical rational 11
• Significance of the study 12
• Research hypothesis/questions 13
• Scope of the study 16
• Limitation 16
• Definition of terms 18

CHAPTER TWO

2.0     Overview                                                              22

• Problem of economic development in Nigeria. 34
• Performance assessment of CBN and other financial Institutions in Economic development 38
• Roles of financial institutions 43
• Monetary and financial institutions reform 50
• Afri bank Plc Asaba Branch (profile) 61
• Afri Bank Plc Asaba Branch                       63
• Afri Bank Asaba Branch (Plc) its contribution to the economic development of Asaba. 72

3.0     Chapter three introduction                                   77

• Selection of population sample 77
• Instrument of data collection           78
• Source of data 79
• Sample used 80
• Location of data 81
• Statistical test used 81
• Techniques of data analysis 82

CHAPTER FOUR DATA RESEARCH ANALYSIS

• Data analysis/interpretation 84

5.0     Summary of findings conclusion                          89

• Findings 96
• Conclusion 99
• Recommendations 101

Bibliography                                                        108

 

PROPOSAL

This research work is set up to ascertain help extent which financial institutions will help towards economic development of Nigeria with a particular focus on Afri Bank Plc Asaba in Delta State.

The purpose of this study is to examine the role of financial institutions in economic development that is to say.  Effort should be made so that financial institution can extend their services to the rural areas by establishing more branches in the rural communities to increase for mobilization and award lending to investors.  This research is divided into five (5) chapters each chapter dealing in the particular aspect of the study.

Chapter one (1) deals with the introduction, the purpose, significance of the study, statement of the problems, research hypothesis definition and scope of the study in details.

Chapter two (2) will commence with the look at the literature review chapter three (3) will discuss or emphasize on the method that will be use in collecting data that is relevant for this research also a coverage and samples of the project work will be highlighted. The method of data analysis and hypothesis will conclude this chapter four (4) will show how the data collected will be presented during the course it this work.  Chapter five (5) shows the summarize of all the findings, giving appropriate recommendation and conclusion based on the findings.  The project work will give a clear view of the research carried out.

CHAPTER ONE

INTRODUCTION

          BACKGROUND OF THE STUDY

In her effort to promote sound economic development in Nigeria and in fact, better focus and greater aspiration in the well being of the citizens, the Federal Military Government under one of the former head of state General Ibrahim B. Babangida Created more states in August 1991.  Incidentally, Delta State happens to be one of them.

As a new state a lot of development projects have to be embarked upon of which financial institutions play a major role in funding these projects.

The Nigeria financial institutions as an integral part of the nations financial intermediation  mechanization through which the savings of house holds firms, public corporations and the private sector are made available to sorrows at income.  The institutions have experienced some far reaching changes in recent times.  The coverage of these changes has embraced the institutions which operate in the system and their operational modalities that is the supervisor (Central Bank of Nigeria) and regulations of the system and the set of rules guiding their actions the structure of the system as well as the interrelationships within the structure.  Thus the policy framework has witnessed significant changes or general regulations and particularly the organization structure.

The principal financial institutions in the Nigeria financial institutions are as follows.

The banking financial institutions (BFI) which includes Central Bank of Nigeria (CBN) which is the apex and also serves as Bankers, bank the commercial bank, merchant banks development banks, community banks and people bank.

The non-bank financial institutions (NBF) on the other hand includes insurance companies pension funds, national provident finds, discount houses, and building societies etc. Those are also the financial markers which comprise of money and capital markets who most financial institutions operate for the purpose of accelerating financial intermediations in the economy.

The growth (or non-growth) of the financial system deserves serious analysis policy attention because the system development has important implications for the overall growth of the economy.  The financial system generally plays a facilitative role which enhanced the process of economic development.  Such roles includes mobilization of financial savings, the allocation of credit and the management of payments arrangements.  The financial pricing and trading of risks and the monitoring of the performance of firms especially in the context of its allocation function.  The financial institutions play important role in the process of economic development.

In Delta State, between 1991 and 2001 nothing much was recorded in the area of financial institutions role in the state economic development.

We can see that many countries of the work that are advanced body in economic development segan with the establishment of various financial institutions.  Nigeria being one of the third world countries needs economic development because its one of the low income countries which is the characteristic of most of the developing countries in the world.  And how income for person does not enhance standard of living let alone in income yielding assets.  The idea of establishment many investment institutions in Nigeria is because of the set back experience by the industrialist.     These hindrances can come as a result of difficulty in raising sufficient funds for project which lead to delay in taking off of to negotiated souses.

Economic development can be seen as structural and functional changes.  Though absence of effective measurement of the later (economic development can be estimated by level of income and rates given on a perceptional basis to approximate, measure of efficiency and wolfram.  Every nation strive after development its an objective that most commies (people) take for granted.  Whereas economic progress is an essential component of development is not purely and economic more than the material and financial side of peoples lives.  Development should be there fire perceived as a multi dimensional process involving the re-organizational and –e- orientation of entire economic and social system.

Dudley (1969) best posed a basic question about the meaning of development when he asserted that.  The question to ask about a couple development are:

1. What has been happening to poverty
2. What has been happening to unemployment

• What has been happening to inequality of one or two of these Central problems has been growing worse especially if all three have. It would be strange to call the result development even if the per capital income is double.  If three of these declined from high levels, then beyond doubt that there has been a period of development for the coming concerns.

(Seer 1977) emphasize that economic development could be define inters of the ration and elimination of poverty, inequality and unemployment.  Within the course of a growing economy its also define as the process whereby the real income of a country ensure over a period of time.  It obviously that the condition for economic development and growth is dependent on natural resources, human resources capital enterprise, technology and political stability among others.

The structural changes that has affected economic development in Nigeria recently is structural Adjustment programme (SAP) the Federal and State Government working series of programme the seminars to finance industrial and agricultural establishment in our country so as to map but economic development of those policies is Federal government man date commercial bank in credit policies to these sectors.  One any ask what SAP is all about its can attempt to change the pattern of financing our projects, production and distribution of gives and services in the country with a view of minimizing our dependence on foreign nations.  Its expected to correct the fundamental imbalance in the pattern of our nations dependence on the outside world for our economic needs.

There are so many factors military against Rapid development in Nigeria.

Over population, insufficient entrepreneurs, inadequate infrastructure.  We can see that these are ready constructing to the hindrance of Nigeria economy development.

In Nigeria population is growing faster than it national income.  And when the people are too many for both the human natural resources available in the society the development.

Also out attitude towards consuming foreign goods in Nigeria is not encouraging and thus is one of the characteristics of any under develop country.  In Nigeria toady, the attitude of most Nigerian towards consuming foreign goods 15 very high.  Its so high that we always regard anything that is produced in Nigeria as inferior uncle Bens to out own made Ekpomarice.  So unpatriotic which results to our indiscriming consumption of foreign goods makes it different for us to obtain rapid economic development as of now.

Political instability is a problem to economic development in Nigeria.  It scares away investors.  Every successive military regime lends to see things income in the development plan made by the regime it overawe and regine to review to one it inherited or draw up a new one altogether.

Economic development in Nigeria is not encouraging at all.  Nigeria is stick an under development nation, since it independence in 1980.  Its still having the features of an underdeveloped economy eg when a country elies on foreign aids to finance its investments and other development project.

This is why development plans have seen a feature of government programmes in Nigeria so as to improve the economic conditions of the country and thus, to raise the standard of living and assure the general well being of the people especially Delta State (ASABA).  However, based in the development plan that was mapped out by the governor of the state, James, Ibori emphasized that adequate loan disbursement should be granted to potential investors as soon as possible and certainly, all things being equal by the end of this tenure policies and strategies to boost and expand the proficiency in the area of finance and market stratification to take profer care of the profor care of the provision of social goods, like water, electricity supply, both in the urban and rural communities gwonet work of roads, communication and education.

Its sad to know that even though Delta State an oil state was created 13 years ago, yet Asaba her state capital is yet to be fully developed and also other urban areas are carrying for attention.

The reason for this is not far fetched until recently the people of Delta State were operating in mono-production economy that is their main stay was on the oil sector another had an adverse affection the entire standard of living as a result of the falling price in crude oil in the world oil market.  As a result of this, most banks in the state found it extremely difficult to mobilize funds through savings and deposits and also get loan beneficiaries or investors record for optimum operation.

Consequently, the unavailability of loans to investors has over then remained elusive.

This and other reasons promoted the local government as well as state to establish a specialized credit institution for development.  Therefore there is no doubt that the Nigeria economic develop depend on the activities of financial institutions.  This ascertain is based on the fact that capital accumulation which is the basic per-requisition for any development take off is being finance mainly by the authorities of financial intermediaries mechanism.

 

1.1     PURPOSE OF THE STUDY

The main purpose of this study is to examcrtically the crucial role of financial institution in the economy development of Nigeria with particular focus on Afri Bank of Nigeria Plc Asaba Delta State.

 

 

1.2     STATEMENT OF RESEARCH PROBLEM       

The crucial role of the financial institution in any country development process cannot over emphasized..  the universally acknowledge positive functional relationship between the efficiency and growth of a countries financial system and those of other sectors of economy is assured a stronger dimension in the modern world environment.  This is because developing countries like Nigeria must rely more than ever before in domestic savings mobilization and efficient resource allocation (loans) it would appear that banking crisis in Delta state has come with failure or threat accure of some banks and finance houses.  The survival of the banking system is not a thing that government effort alone can achieve without the co-operation of the private sector and financial institution.  However the government must lead the way for two reasons.  (1) Firstly the vital  \role of the financial system in economic development and secondly the fact that banking crisis is sometime triggered off by macro economic policies of the government.  Therefore a vigorous and prosperous financial intermediaries is of the utmost importance in Delta State.

Sadly enough financial institutions has relegated to a position of insignificance.  Development, manpower development workers in service training and vis-a-vis that are inlar dependent, are in lapses and even not granted.  This give rise to lack of credit availability to investors, irregularity in loan disbursement of funds granted to beneficiaries to non-productive investment.

 

1.3     THEATRICAL RATIONALE

Oyejide (1993) was of the vie that financial system is closely involved with pooling pricing and hading of risks and the monitoring of the management and performance of firms especially in the context of its credit allocation function (page 2).

The functions of the financial system are so critical to the process of economic development that its healthy and stable growth constitution an important policy goal of  macro-economic management in all market based economics.

Paul Ogwuma (1993) said that financial institution have undergone some remarkable changes over the years.  The immediate functions for its establishment remains the same (page 27).

This sector (financial institution) is regarded as the most important sectors.  It provides loan and grant credit facilities our local industrial of the economy.  The records of financial intermediaries in the course of Nigeria development in the future.   Its prospects for standard expansion of the economy.  Also, financial intermediaries has been considered as one of the key sectors in the economy of developing countries like ours of Nigeria.

 

1.4     SIGNIFICANCE OF THE STUDY

The research have the intention of writing this project.  He does not claim absorb knowledge of this subject matter rather, the researcher feels that this work will be an eye opener so others who may find this topic useful to their study.  The researcher expects that this work would create an awareness on the people when its meant to serve their various purposes such as reasoning for non-disbursement of loan to potential investors by most banks.  The researcher deems it necessary to have detailed studies into all important problems of rural investors who engage in short term investment.  Its in the mind of the researcher to pin-point on which financial institution (intermediaries) has been hampered in various ways and his research area.

Feel that the research would help the investors and students in financial studies and business studies who any come across similar ropicin their course of academic pursuit.

 

1.5     RESEARCH HYPOTHESIS

In stating this hypothesis we have two (2) hypothesis as follows:

H0:    Financial institutions have played important role in the

economic development Delta State

H1:   Low credit Availability have not inhabit capital formation.

H0:    Financial intermediaries have laid much emphasis in

collateral security before granting loan.

H0:    The present lending rate make investors relutant to seek

loan.

H1:    The present lending rate does not make investors reluctant to seek loan

H0:    Financial institution have been efficient in the mobilization for long term investment.

H1:    Financial institution have not been effective in the mobilization for long term investment.

H0:    Financial institution have been able to invest significantly in development project in Delta State.

H0:    Loan beneficiaries have diverted the loan for other purpose.

H0:    The Bank have not provided expert financial advice in funds mgt to loan beneficiaries.

H0:    The concentration of banks in urban cities have hindered customer propensities to save.

H1:    The research would want to find the answer to the following research question

1. Does loan credit availability to potential investors inhabits capital formation in Delta State.
2. Does financial intermediaries lay much emphasis in collaterial securities before granting loans to investors?
3. Does the present lending rate make investors reluctant to seek for loans
4. Has financial institution been effective in the mobilization for long term investment?
5. Has financial institution been able to invest significantly, in any development project in Delta State?
6. Do loan beneficiaries divert the fund to other purposes not meant for the loan.
7. Does you banks provide expert financial service on the management of finds by beneficiaries.
8. Does the concentration of banks in urban cities hinder in the rural communities propensities to save?

1.6     SCOPE OF THE STUDY

The scope of this study would be very wide if the research should be carried out in all financial institution in Nigeria.  Therefore this study is focused on Afric Bank of Nigeria Plc Asaba in Delta State.  An the findings may not reflect the pichere of the whole country.  These findings may not be valued for the whole financial institution in Nigeria but by and large what happens in Afric Bank can be said to apply to others.

1.7     DELIMITATION

I was faced with the following research limitations.

1. Time factor- The was not enough rime carryout adequate research as a result of too many engagement eg. Assignment, quizes, registration verification and other wise.
2. Resources – Resources in terms of both financial and material are limitation to the research work.
3. Transport Cost- Transport fare has an important part to play as a constraint because one have to be travelling at the expense of lectures from Enugu to Delta State (Asaba).
4. Inadequate facilities –lack of published work on the topic ha hindered the research to expand more on the work.

Attitude banking of staff- The selected financial institution in Delta are branches of the financial institute are so were not responding as was considered and this has affected the pre-view of this research.

Some of the staff, the attitude forward carrying out this research work is not encouraging at all.  The feel reluctant to even answer simple question they you they are always busy.  Where as they are not busy.

 

 

 

1.8     DEFINITION OF TERMS

Financial institution –Refers to these organizations that are legally established either by the government or individuals to directly or indirectly control and manager the volume of money and credits in circulation.  The legality of the establishment of these organizations distinguish them from other organization that control money in an economy.   Money-lenders are thrift business belong to the category.  Even though they lend money to people, they are not legally authorized to perform.  Therefore, any contract entered into with these people is void as initio and a nullity and hence cannot be enforce the court of law.

Financial institution could be those institutions that engage in the mobilization of funds and also chandelling these funds to potential investors (customers)  to invest in the economy.

Financial institutions can be classified into.

1. Banking type financial institutions and
2. Non-banking type financial institutions

Banking type financial institutions.  These institution control and manager the volume a money in circulation directly they are responses for the printing minty, and creation of credits or incerly.  It can also be creation of credits the deposit type financial institutions Deposit in the sense that they accept money deposits from their customers which may either be individuals or other financial intermediaries.  By this, the banking type financial institutions intermediate between the savings surplus units and the savings deficit units thereby increasing the volume of money in circulation through credit creation.

Types of banking type financial institutions.

1. Central Bank
2. Commercial Banks
3. Merchant Banks
4. Development Banks
5. People’s Banks
6. Community Bank etc.

 

Non- banking financial institution (NBFI) these include insurance company’s

Personal funds

Building societies

Discount Houses

ECONOMIC DEVELOPMENT

It has been define as the process whereby a countries real per capital gross national product of income increase over a sustained period of time through continuing increase in per-capital productivity.

Economic development is much more fundamental in that it, enhanced economic and social super structure the society.  Its an improvement in the production techniques and in the consumption choices open to average citizen and in the citizens etc.  economic development involves a reduction in income inequality, employment rate and poverty in the country.

It could also be defined as the process whereby the level of national production (that is national income) to per capital income, increase over a period of time.  The main objective of economic development is to raise the standard of living and the good of the peel in an economy it involves changes inter structure of the economic that include.

1. Emphasis on developing manufacturing industrial as opposed to agriculture.  
2. Less reliance on imported goods in preference to home- produced goods.

• Revision or abolition of the outdated land revue system that hindered to acquire.

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

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FAILED BANKS LIQUIDATION ACTIVITIES OF THE NIGERIAN DEPOSIT INSURANCE CORPORATION (NDIC) AN EMPIRICAL ANALYSIS

ABSTRACT

The aims of this paper is to appraise the Nigerian Deposit Insurance Corporation (NDIC) liquidation activities in failed banks, claims settlement; amount and number of depositors so far paid; reason behind the abandonment of deposits by some depositors; level of liquidation proceeds realized and how it has been managed fairness of bad debt litigation disposition and the adequacy of the insurance deposit.

To achieve the above objective I relied on questionnaire, personal interviews and visit to the site; for primary data; from past literature, journals and dailies for the secondary data.  The statistical tools used in the analysis are the simple percentages, tables, pie charts and bar charts.

The study revealed the following”

1. NDIC has been delaying in settling both the inured and the uninsured depositors, the delay was found to be attributed to:
   1. The inadequate preparation by the NDIC in both human and material resources.
   2. The inability of the depositors to put forward their claim on time for verification.
2. Rigorous claim filing process adopted by NDIC, lack of proper awareness on the side of depositor were found to be chief reason for the abandonment of claims by depositors.
3. A sizeable amount has been realized from sale of fixed assets, not much from debt recovery.
4. The amount realized has not been managed to the interest of depositors, as some amount were not accounted for, while a huge sum was written off as expense.

CHAPTER ONE

• Introduction

1.1     Background of the study

• Statement of the problem
• Objective of the study
• Research questions
• Significance of the study
• Scope of the study
• Limitations of the study
• Definition of terms

References

 

CHAPTER TWO

• Literature review

2.1     Overview of bankruptcy and liquidation of firms

• Liquidation of firms in bankruptcy
• Origin or banking distress in Nigeria
• Causes of banking distress in Nigeria
• Implication of bank distress in the Nigeria economy
• Historical preview of NDIC and its role in the banking industry
• Functions of the NDIC
• Controversial issues surrounding NDIC operation
• Empirical distress resolution options
• Comparative analysis of bank distress resolution options

in selected countries of the major continents

• The legal frame work of bank liquidation
• Liquidation activities in failed banks

 

CHAPTER THREE

• Research methodology

3.1     Sources of data

• Design of questionnaire
• Sample procedure and determination of sample size
• Techniques of data analysis

 

CHAPTER FOUR

• Data presentation, analysis and interpretation

4.1     Overview

• Presentation of data
• Primary data analysis
• Test of hypothesis
• Interpretation of results

 

CHAPTER FIVE

• Findings

5.1     Discussion of findings

• Conclusion
• Recommendation

Bibliography

Appendices

 

 

CHAPTER ONE

1.0 & 1.1    INTRODUCTION AND BACKGROUND OF THE STUDY

The importance of a banking sector in any economy derives from its role of financial intermediation; provision of an efficient payment system and facilitating the implementation of monetary policies.  Hence, an efficient and effective banking sector is essential not only for the promotion of efficient intermediation but also for the protection of depositors, encouragement of healthy competition, maintenance and protection against systematic risk.

 

The banking system as noted by Schempeter (1934) is regarded as a key agent in the process of development, because all other industries rely on it for working capital.  But, the Nigerian banking system in caught in systematic turmoil, there has been a rapid increase in the number of bank failures and the magnitude of the problem has reached an unprecedented level; the problem has assumed a generalized dimension thereby making it an issue of concern to the government, the regulatory authorities, the bankers, the general public and the international financial institutions such as the World Bank and the International Monetary Fund (IMF).

Distress in the Nigerian banking system dates back to the 1950’s when about 51 banks were forced out of the system following the introduction of the very first banking law in Nigeria.  The Banking Ordinance of 1952, the above ordained and the Central Bank of Nigeria Act of 1958 brought some element of sanity into the system.  The second phase of distress was experienced in the system after the era of Structural Adjustment Programme (SAP), which deregulated the economy; as a result led to the influx of the system with both efficient and inefficient banks, owing to the fact that banks licensing was liberalized.  Thus increasing the number of banks in the country from 42 in December 1991 (Oleyemi 1995:50) when SAP was put to an end following the enactment of Bank and Other Financial Institutions (BOFI) Decree N0. 25 of 1991.  The above represents an increase by about 186 percent in less than a decade.

In order to cushion the effect of further bank failure, the Nigeria Deposit Insurance Corporation (NDIC) was established under the NDIC Decree N0. 22 1988.

The major reason for the establishment of the Nigeria Deposit Insurance Scheme is not only to prevent or minimize the incidence of bank failure but also to handle bank failures and liquidate failed bank’s assets in an orderly, inexpensive and non-disruptive manner as provided by the NDIC Decree N0. 22 1988 and section 36 of Bank and Other Financial Institutions (BOFI) Decree N0. 25 1991, in addition to acting as acting as a second line regulatory body to the CBN.

Despite the establishment of the above mentioned strategic institutions, the rate of bank failure in Nigeria has risen sharply in recent years, and if not checked could jeopardize any political, social and above all economic policies.

 

Following the above, it became imperative that utmost diligence and restraint must be exercised in evolving a resolution option to put an end to distress in the banking sector.  At last, liquidation option was adopted by the authorities in the bid to finding a lasting solution to distress.  The liquidation option was regarded as the single dose treatment to distress and was aimed at bringing to an end the distress in the system (Adeniyi, 1998:7).

Having exhausted all possible means of resolving the distressed conditions of some banks between 1994 and 1995, the licenses of three merchant banks and two commercial were revoked.  Again in January 1998-2002, another batch of 30 failed banks (Is merchant and 15 commercial banks) had their licenses revoked.

NDIC has so far liquidated 33 banks across the country due to their insolvency and general unhealthy financial status.

Two other banks, Rins Merchant Bank and Savannah Bank of Nigeria Plc, presently have their liquidation suspended consequent upon contest injunctions restraining the corporation from proceeding with the banks waiting up-exercise.

It is worth noting that prior to the liquidation option, other measures have been put in place to check the omen in the name of distress, such measures include holding action, which involves the assumption of management and control of the ailing banks by the CBN, this measure was adopted in Alpha Merchant Bank Limited (AMB) and National Bank of Nigeria (NBN) Plc; other measures that were put in place are moral suasion and the extension of financial facilities to banks that have liquidity problems among others.

 

The liquidation activities of NDIC have witnessed both praises and criticism over that lost ten years.  While some people have appreciated their effort in trying to see that liquidation of the failed banks are carried to do logical conclusion, effectively and efficiently, others have out rightly criticized all their actions and policies.  It thus becomes imperative at this point in our economic history to take an objective appraisal of the NDIC liquidation activities so as to have an in depth knowledge of the process and also see some of their strengths and weaknesses.

 

• STATEMENT OF PROBLEM

The major activities in any bank liquidation include settlement of insured and uninsured depositors from premium fund and liquidation proceeds respectively, physical asset valuation and disposal and loan asset realization.  These activities, world over have been agreed to be a difficult task as each of the activities gives rise to some problems that tend to undermine the success of bank liquidation.  In Nigeria, for instance after over many years that NDIC has executed this task, certain controversial issues have emanated which need redressing for future effective performance.

Paramount among them is the delay being witnessed in the operation by NDIC.  It is not strange to hear that some depositors of the firsts banks have been in liquidation are yet to be fully settled by the NDIC.  This issue was clearly observed by one depositor, Mr. Ayanyemi who wondered how long it would take NDIC to pay depositors of the recent 30 banks in liquidation; if depositors of the previous banks have not yet been settled up till now (Bello, 1998:6).  Another area of concern is the actual number of depositors so far paid and the class they belong to.  It has been noted that only small proportion of the total depositors have so far been paid; and worst still majority of thoese unpaid belong to the small depositors class.  This is serious because they represent a greater percentage of bank depositors.

Another serious issue is about the level of proceeds realized so far from liquidation how it has been used by NDIC; naturally, liquidation proceeds which come from sale of failed banks fixed assets and recovery of debts are supposed to be used in paying dividend to uninsured depositors.  However, there have been bitter complaints by the uninsured depositors about the smallness of the dividend paid despite the huge amount realized from liquidation process by NDIC; others have also complained about improper disposal of failed banks fixed assets at a give away price.

Again, another liquidation activity that has raised serious concern is the case of litigation that arises in debt recovery.

There is this strong feeling among some quarters in Nigeria that NDIC has not been disposing its cases fairly.  This has led to the prosecution of some innocent people and leaving others who probably are friends of the NDIC officials.

Finally, the inadequately and less maximum coverage by NDIC constitutes another serious as the NDIC Decree provides for a maximum payment of N50,000 per depositor in the event of bank liquidation.  Just like the principle of deposit insurance allows the deposit insurance institution to close down a failed bank and dispose of the banks assets if provides also for the insured deposit to be high enough.  In other words the payment of both the insured deposits from insured reserve fund of deposit insurance.  Institution and payment of proceeds from the sale of failed banks assets will guarantee that a depositor is not hurt when a bank fails.  In the same vein, a bank depositor need not be bothered about banks capital inadequacy because existence of depository financial institutions to operate with lower capital/asset ratio and also hold somewhat more risky assets.  But in the recent past, there has been a lot of criticisms that the maximum coverage was low on the ground that the government engenderering inflation, running at over 50 percent a year has led to further devaluation of the naira.  While some have argued that the amount does not qualify as insurance coverage.

The above problem will form the backdrop of this study.

 

• OBJECTIVES OF THE STUDY

The overall objective of the study is to appraise the NDIC liquidation activities in failed banks.  Specifically, the study seeks;

1. To identify the activities involved in bank liquidation
2. To discover why there has been so much delay in settlement of depositors by NDIC.
3. To discover the amount and number of depositors so far paid by NDIC so as to ascertain the commitment of the corporation to depositors.
4. To know the reason behind the abandonment of deposits by some insured depositors with NDIC.
5. To ascertain the level of liquidation proceeds realized by NDIC and how it has managed the proceeds to the interest of the uninsured depositors.
6. To make an empirical analysis of case disposition so as to know how fair NDIC handles its cases.
7. To evaluate the size of the maximum insured deposit paid to the insured depositors when a bank fails with a view of determining its adequacy.
8. To make recommendation based on the above findings.

 

• RESEARCH QUESTIONS

1. What factors are responsible for the delay in claim settlement by NDIC?
2. What is the current level of amount and number of insured depositors paid so for by NDIC? Is the level reasonable enough?
3. What is the level of dividend declared and paid so far? How adequate is the level?
4. How far has NDIC gone in debt recovery from the debtors of the firsts banks in liquidation? What is the level of proceeds so far realized from the liquidation and how has it been managed to the interest of the uninsured depositors?
5. Why has some depositors of failed banks appear to have abandoned their insured deposit with NDIC?
6. How fair has the NDIC been in the disposal of fixed assets of banks in liquidation?
7. How just is the NDIC in the discharge of its initiation matters?
8. How adequate is the unit of insurance coverage?

 

• SIGNIFICANCE OF THE STUDY

Liquidation activities as earlier observed has become a controversial issue since its inception in 1994.  a lot of people have different views regarding the role and performance of NDIC in this direction.  Thus it is expected that a thorough this direction.  Thus it is expected that a thorough appraisal of the activities will be of immense benefit to the following interest groups:

1. The Federal Government of Nigeria which established the corporation, as it will enable them have an in-depth knowledge of how the NDIC has been carrying out their liquidation activities in the failed banks so also toe enable them know where to make amends or give additional support.
2. The depositors whose funds are tripped in the failed banks as it would give than an insight on the effort of the NDIC to settle them.
3. The banking public which include bankers, shareholders, creditors, analysts and prospective depositors as it would reveal to them in great detail a lot of information they need to know about the banks in liquidation and the position of our banking industry.
4. The NDIC officials, as it would enable them not only to know how their policies and actions as it affects liquidation are evaluated but also help them know which area of their operation they are living up to expectation and where they are not.
5. Finally, it would also serve as a starting point to other students, that students would like to carry out further research on this important topic in future.

 

• SCOPE OF THE STUDY

This paper has been programmed to cover the major appraisal of the NDIC bank liquidation activities, which will be directed mainly on the banks in liquidation.

 

• LIMITATIONS OF STUDY

A study like this is usually faced with some difficulties that tend to limit the validity of findings and conclusion reached.  The major constraints are highlighted below.

It is a general belief that bank liquidation is a very sensitive matter, it is an activity that requires careful handling and management of information emanating from it in order not to have ripple effect on the industry.  To this end, certain sensitive information sought for this work were not disclosed by the relevant authorities concerned for fear of having negative result not in the industry but the economy at large.

Furthermore, bank liquidation is still new in the Nigeria banking system.  This resulted in limited on the activities.  Besides, the short period of time liquidation has been in place could not provide an opportunity to give a complete analysis.  Thus the appraisal is more or less a short-term one.

 

Again, the questionnaire is the main instrument of primary data collection.  The heavy reliance on this tool more than the use of interviews was assumed to make it easy for respondents to react easily and confidently since most of them are always occupied with the office work.

Finally, some of the analyses are empirical in nature, this also has its own problem like diverse, views that mostly centers on sentiments rather than facts.

 

• DEFINITION OF TERMS

A brief definition of some of the terms and concepts used in this study will be useful here for better understanding of this work.

1. Depositors:- These are “persons” who deposit money in a bank.  While insured depositor are the depositors that have their deposits covered to the tune of N50,000 by the NDIC and are entitled to a maximum of the amount in case of liquidation.  Uninsured depositors are those depositors who have deposit in excess of N50,000.
2. Interim dividend: This is the gradual periodic amount paid to the uninsured depositors from the proceeds accruing from sale of failed banks asset.
3. Distress: This connotes unhealthy situation or state of inability or weakness, which prevents the achievement of set goals and aspirations.  In the banking system, distress is defined as different manifestation of problems and differing degree of operating difficulties which range from temporary liquidity to terminal insolvency.
4. Insolvency: A bank is said to be insolent when its total liability exceeds its total assets.
5. Terminally distressed: A case of chronic liquidity and insolvency with liquidation as the only meaningful option.
6. NDIC premium: According to the NDIC Decree (1988: see 21).  It is the 15/16^th of 1 percent per annum of 1 per annum of the total deposit liabilities standing in the books of insured banks as at 31^st December of the proceeding year, duly certified by approved auditors.
7. Bank failure/failed banks: Bank failure according to George J. Benson et al (1986), means a complete (or close to complete) loss to shareholders, combine with a cessation of independent operation, continuance only by virtue of financial assistance from a deposit insurance institution (Alashi, 1993:22), and a bank is said to have failed when it cannot be revived by any means.
8. Resolution option: The choice made by the authorities (CBN/NDIC) to resolve bank failure.
9. Liquidation: Dissolution of an insolvent firm (bank) through the sale of its assets and the distribution of proceeds base on priority of claims.

REFERENCES

Adeniyi, Peter .O. (1998),       The Other Side of Distress in Banks (i) Business Times, February 16 P.7.

Alashi, S.O. (1993)        “Bank Failure Resolution the main options” NDIC Quarterly.  Vol.3 N0.2 (June) P.22.

Ebhodaghe, John .U. (1996)    “The Impact of failed Banks on the Nigerian Economy” NDIC Quarterly, Vol. 6 No. 1 and 2 (March/June) P.24.

Federal Government of Nigeria (1988), Nigeria Deposit Insurance Corporation Decree N0. 22. Lagos.

Olugemi, Sunday .A. (1995)    “Deregulation and the Performance of Insured Banks in Nigeria: An Overview”, NDIC Quarterly, Vol. 5 No. 1 (March) P.80.

Salimon, Alao (1998)    “Stemming the Tide of Bank Failures”, Business Times, (January 26) P.16.

Sunday Tribune – 23 November, 2003 P.5.

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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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