AN APPRAISAL OF CENTRAL BANK OF NIGERIA IN ECONOMIC DEVELOPMENT EASTERN ZONE OF NIGERIA.
This project work is centered on An Appraisal on Central Bank of Nigeria in Economic Development Eastern Zone of Nigeria. It tells how the impact Economic development in the country was restricted by shortage of productivity factors and to find the best way of breaking the various circle of capital formation. In the historical background of the study it also elaborate how the Central Bank of Nigeria appointed their board of Directors in the year 1958. The board was made up of governor and deputy governor. The problems that affect this bank were identify and objective of the study is to ascertain the present economy. This research work used personal interview questionnaires and desk research were used in getting the required information from the population sample. The analysis of the data simple percentage and table simple percentage and table and chi-square methods were used due to their suitability for the study. Analysis of data is based on the number of Reponses to the question asked. The testing of hypothesis were also analysed. Based on the study of recommendation were as follows interest Rate, lack of Banking habit and intensifying rural banking programme. It exposed to a greater extent the impact of CBN has played in making sure that the economic development needed and required in Nigeria which realized by regulating and mobilization of the movement of found.
TABLE OF CONTENT
Title page- - - - - - - - - i
Approval page - - - - - - - - ii
Dedication - - - - - - - - iii
Acknowledgment - - - - - - - iv
Abstract - - - - - - -- - - v
Table of content - - - - - - - v
CHAPTER ONE: INTRODUTION
1.1 Background of the study - - - - - 1
1.2 Statement of problem - - - - - 4
1.3 Purpose of the study - - - - - 5
1.4 Research questions - - - - - - 5
1.5 Research Hypothesis - - - - - 6
1.6 The scope of the study - - - - - 8
1.7 The significant of the study - - - - 8
1.8 Definition of terms - - - - - - 10
CHAPTER TWO: REVIEW OF LITERATURE
2.1 The origin of central bank - - - - 11
2.2 Definition of central bank - - - - 12
2.3 Functions of the central bank of Nigeria.- - 13
2.4 Central Bank open market operations and their effect on bank liquidity - - - - - - 14
2.5 The domestic operation of the Central Bank of
Nigeria - - - - - - - - 18
2.6 Central Bank and the government - - - 19
2.7 Central banking in an order Developed Economy. 20
2.8 Major Achievement of Central Bank of Nigeria on the Economic Development of the Economy.- - 21
2.9 Problem of Central bank of Nigeria in carrying out its objective. - - - - - - - - 26
RESEARCH DESIGN AND METHODOLGY - - 28
3.1 Research Design - - - - - - 28
3.2 Area of the study - - - - - - 28
3.3 Population of the study - - - - - 29
3.4 Sample and sample procedure - - - 30
3.5 Instrument fro Data collection - - - 33
3.6 Validity of the Instrument - - - - 35
3.7 Reliability of the Instrument - - - - 37
3.8 Method of data collection - - - - 36
3.9 Method of data Analysis.- - - - - 37
DATA PRESENTATION AND ANALYSIS
4.1 Presentation and analysis of data - - - 38
4.2 Testing of Hypothesis - - - - - 44
4.3 Summary of results -- - - - - 51
DISCUSSION AND CONCLUSION OF RESULT
5.1 Findings - - - - - - - 54
5.2 Conclusion of the study - - - - - 55
5.3 Recommendation - - - - - - 57
5.4 Implication of the research findings- - - 60
5.5 Suggestion for further Research - - - 61
5.6 Limitation of study -- - - - - - 62
References - - - - - - - 64
Appendices - - - - - - - 65
Questionnaire - - - - - - - 66
1.1 BACKGROUND OF THE STUDY
The evolution of Banking in Nigeria is basically inter work with the history of the economic development in Nigeria and also West African. The major European shopping and trading organization Elder Dumpster and co. was in the forefront of the drive to establish an organized banking in the country.
However, in 1958, a central bank ordinance was appointed. The board was made up the governor and the deputy governor. Both were appointed by the governor-General and they ran the Bank as a full time employees. Few other members of the board were appointed by the prime minister of the federation. No practicing banker civil servant or elected official (legislation) could be an appointed to the Board except perhaps the Economic Adviser to the federal Government.
In addition to the government office were the general managers department (responsible for administration research and statistics).
The year 1950 ordinary also provide for political independence of Central Bank of Nigeria despite the creation of an Advising committee whose members consisted of the following.
a) The federal ministry of finance
b) The regional finance ministry (3)
c) The governor
d) The Deputy governor
Thus, the coming in the existence of the Central Bank of Nigeria abolished almost all the functions of the African currency based, but did not become effective its door for business in June 1959 and become optimally operational in 1960. At this function and responsibilities of the new Central Bank will highlight its similarities and differences vis-à-vis the West African currency Board.
More so, three studies in 1951 had touched the question of establishing a Central Banking varying degrees and intensities they are:
1. Mass unpublished pioneer study of the Nigeria monetary system which made only a passing. Mention via a single paragraph of the desirability of a Central Bank of Nigeria.
2. The Trevor Report which focused on the Gold Coast and recommended against the establishment of a Central Bank them.
3. David Roman’s study, which concluded that the case for Central Banking was not an urgent one then. A private members motion was introduced by DR. F.O Mbadiwe on March 21 1953 during the first session of the newly constituted House of Representatives. That as a practical means of consolidating the financial resources (including regulation of Gold and Currency) of this country for the purpose of rapid economic development in all its phases, and as well as strengthening the existing African Banks.
1.2 STATEMENT OF THE PROBLEMS
Since Central Bank was established by the economic problems and capital formation. Its operation the Central Bank have aimed towards achieving an objective but was confronted. This work is therefore out to unearth these problems and make recommendation.
It also assess the impact of Central Bank in the development of Nigeria with special reference to Eastern zone of the country.
1.3 PURPOSE OF THE STUDY OR OBJECTIVE
The purpose of this work are:
To find out activities of Central Bank of Nigeria.
To find out how there activities are spread in the country.
To find out the problems of Central Bank of Nigeria in performing its activities.
To make recommendation as appropriate.
To identify the extent of which these problems have militated against.
1.4 RESEARCH QUESTIONS
i. t do you think are to be the problems which the Central Bank of Nigeria will encounter in their way of ensuing economic development in this our country Nigeria?
ii. Do you think that choosing Bank staff with wrong background and aptitude will affect the ways of Central Bank in Nigeria?
iii. Do you think that Banks can retrieve that reputation and good name usually associated with the banking industry.
iv. Does motivation affect the performance of staff?
v. How can this eliminated to ensure that the right person is recruited?
1.5 RESEARCH HYPOTHESIS
This is a statement of assumption that is used to ascertain all the statement made in the research work.
Null Hypothesis Hi:
Money in the organization is enough to take care of the staff and maintain its roles in the economic development of Nigeria.
Number of people with the propensity many users of bank credit facilitative pay back their loans without waiting to be forced into compliance good management relationship encourage high productively in banking services.
Banks in Nigeria have been providing their services to customers.
Alternative Hypothesis Ho:
Money in the organization is not enough to take good care of the staff and maintain its role in the economic development in Nigeria.
Number of people with the propensity not to save are few many users of bank their loans but wait to be forced into compliance.
People in rural areas do not know how to make use of bank services while in Hypothesis Hi people in the rural areas know how to make use of bank services.
Good management relationships do not encourage high productivity in banking services.
Banks in Nigeria have not been providing their various customer services.
1.6 SCOPE OF THE STUDY
This project work does cover the modern day functions of the Central Bank of Nigeria and their regulatory rules. It covers various roles the Central Bank of Nigeria has affected, the various aspect of the economy, their development in these different areas and nature of what is needed for our economy to grow.
The research features also the History of Central Bank in Nigeria, its origin and how it brought about economic changes and development in Nigeria
1.7 SIGNIFICANCE OF THE STUDY
This Bank as an institution will benefit from this study. It will go a long way to enhance their aims and objectives.
This project can also serve as a reading material and guide for leisure period.
The major significance study is that the researcher has discovered that the Central Bank has actually contributed much to the economic development of our country. CBN is the apex regulatory authority of financial system.
This study is of great importance to any students that will want to use this project work to broaden his/her knowledge on the impact of Central Bank of Nigeria on Economic Development. It will also benefit the bank staff. They will have more motivating incentive impulses that would help them perform their duties more effectively. The staff who are more qualified will be recruited to take their rightful positions in the banking work.
Through this study, the reader will also know that CBN is a Bankers to other Banks and it promotes, confidence in the system. They also act as banker to the government by providing banking system services to the state and local governments.
It also leads to the promotion of monetary stability, foreign exchange management facilities to entertain public complaints.
1.8 DEFINITION OF TERMS
CURRENCY: This is the component of the money supply consisting of bank notes and coins.
DRAFT: This is issued at the request of a customer, and it is drawn by a bank on itself and used when one wish to transfer has account to another.
STANDING ORDER: This is an instrument given by a current account holder to his banker to make periodic payment.
EVOLUTION: Process of opening out or developing.
CONDESCENSION: This means to humble oneself to somebody in a good sense.
CUMBERSOME PROCESS: This is heavy and hard way of carrying out some banking practices.