Causes And Effect Of Mismanagement In Financial Institutions

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Title page

Approval page



Table of content



1.1            Introduction

1.2            Statement of problem

1.3            Objective /purpose of the study

1.4            Significance of the study

1.5            Limitation of the study



2.1            Literature review



Research design and  methodology

3.1            Sources of data

3.2            Location of data

3.3            Method of data collection




4.1            Finding



5.1            Conclusion and Recommendation




1.1            OVERVIEW

A financial institution is an organized body, concerned with the management of money. This is to say that the institution is responsible for the lending and borrowing of money. In other works, it is an institution involved in financial intermediation where  money is mobilized and channeled from the public dialing  (those who have surplus fund and want to some to those who want to invest in productive activities) some of the institution in Nigeria are “CBN, merchant bank, commercial bank, insurance company, Development banks, stock exchange market etc.

          Mismanagement is defined by “Land-man English dictionary” as control or deals with private, public or business affairs badly or unskillfully etc.

          The mismanagement  is also defined by “oxford English dictionary version” as mismanage, bad improper administration  to manary badly or wrongly. Then financial mismanagement according to the above definitions may be improper administration bad or wrong use of money inadequate collateral security of granting loan mis appropriation collateral of money or management of finance unskillfully.

          The central bank of Nigeria (CBN) is the open bank of a national that serves as the main source of revenue to the government, it equality gives advisory measures to the government. And also help the government extremely in international trade etc.

          To the  public and private individual bank especially the commercial banks provides draftier support to the public and individual affairs. The bank grant loans advances, make payment locally or outside Nigeria. In fact they perform varieties  of functions to satisfy the financial needs of all types of customers from small personal account holder to big incorporations and public organization. That is by accepting deposits,  safe custody  agency services e.t.c.

          This industries have grown beyond optimistic expectoration over the year or period in the number of bank that expanded in five years. The variety of bank increased and the growth of the industries resulted to loss of professionalism in services, increasing fraud owing to the craze for material wealth, inflating of contract, God  fatherism poor portfolio and other back malsfeasence which has contributed extremely to the constant report of financial mismanagement in a financial institution. The causes of financial mismanagement and misappropriation of public funds are now rampant  in these financial institutions.

Eve the workers in these institutes had complained bitterly about hanger and starvation. Due to mobility of the manger to pay of their  salaries. This has almost the time happened due to misappropriation and improper control and utilization of funds ment for salaries.  

Reports of riots, unrest or strike of workers   which bring a lot on the economy not to function effectively due mismanagement by manager of this financial institution.

In this case, mismanagement has resulted to a great effect over many sections of life of the above mentioned. Such as company, individuals,  worker and the  economy as a whole. The tendency to embezzle and get rich quick mentality his continued  down the line. The serious act of financial institution in Nigeria.


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