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

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

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

This project is organized in five (5) chapters.

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

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

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

In chapter four, data analysis, analysis of questionnaire, published and unpublished data collected from the Brewery’s book, the result at a glance and test of hypothesis, interpretation of result.

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

PROPOSAL

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

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

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

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

This project is organized in five chapters.

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

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

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

CHAPTER ONE

1.0 INTRODUCTION:

1.1 HISTORICAL BACKGROUND OF NIGERIAN BREWERIES:

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

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

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

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

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

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

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

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