THE IMPACT OF DEREGULATION OF THE ECONOMY ON NIGERIA COMMERCIAL BANKS (A CASE STUDY OF FIRST BANK NIGERIA PLC)

ABSTRACT
The economy of Nigeria has a lot of structural distortion is the 1980’s. The economy policies pursued prior to 1985 made the Nigeria economy price distortions created by a highly over-valued currency and inappropriate pricing of agricultural and other local products.

The control measure introduced prior to deregulation of the economy were unable to improve the economy positively, instead, that period was characterized by short- supply of industrial inputs. Plant closure, large retrenchment of workers, shortage of goods and price inflation with unfavourable balance of payment.

The Federal Government has pursued vigorously the policy of deregulation of the economy. The structural adjustment programme was designed to attack and remove the Fundamental structural distortions prevalent in the Nigeria economy. Commercial banks should equally anticipate and sensitize itself with the challenges of a deregulated economy.

The major deregulation policies used were deregulation of interest rates structure, introduction of second tier foreign exchange market.

Since the Federal Government is contemplating deregulation as the only paramount solution to the distorted economic structure. The banking Industry (Commercial Banks) need to reposition itself to take full advantage of the gains that might arise from such deregulation. Commercial banks should equally anticipate and sensitize itself with the challenges of a deregulated economy.

APPENDIX 11
QUESTIONAIRE ADMINISTERD AMONG THE BANKING PUBLIC

Dear sir/ Madam,
This questionnaire is part of a research into the deregulation of the economy on the financial performance of commercial Bank.

The research is in partial fulfillment of the requirement for the a ward of a Higher National Diploma (H.N.D) In Banking and Financial Department of the Federal Polytechnic Nekede,

Kindly read each question and briefly express your opinion, your honest and Unbiased opinion is highly solicited for as they will help me with date will be treated in strict confidence.
Thanks for your cooperation.
NEAMADI CHIGOZIE .M.

TABLE OF CONTENT

Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
CHAPTER ONE
1.0 INTRODUCTION
1.1 Statement of problem
1.2 Purpose of study
1.3 Significance and relevance of study
1.4 Scope and limitation of study
1.5 Formulation of Hypothesis
1.6 Research methodology
1.7 Definition of terms
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 The History of Banking in Nigeria
2.2 Functions of Commercial Banks in the Development of Nigeria Economy.
2.3 The Concept of Structural Adjustment programmed (SAP).
2.4 The Concept and Areas of Deregulation in the economy.
2.5 The Role Central Bank in the Deregulation of the Economy
2.6 Effects of Deregulation of the economy on Commercial Banks.
2.7 Challenges and Achievement of Commercial Bank under an Environment of Deregulation.
2.8 A Comparative Analysis of Commercial Banking in an Regulation and Deregulation.

CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Research Designs
3.2 Sample size
3.3 Source of Data
3.4 Data Collection Method
3.5 Technique of Data Analysis

CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
4.1 Data presentation
4.2 Data Analysis
4.3 Test of Hypothesis

CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of general findings
Conclusion
Recommendation
Bibliography
Appendix- Questionnaire
CHAPTER ONE
1.0 INTRODUCTION
The economy of Nigeria had a lot of structural distortions in the 1980s. The economic policies pursued prior to 1985 made the Nigeria economy vulnerable to external shock. Consequently the 1986 budget sought to de-emphasized controls and adopted policy measures aimed at expanding the economy resource balc. To attain this goal the 1986 budget at a tone in the structural adjustment programme which was launched in July 1980 with the introduction of structural adjustment programme came to deregulation of the Nigerian economy.

The deregulation policy which the structural adjustment called for is the process by process by which government remove selected regulations in bull-mess or order to encourage the efficient operation of market.

The theory is that fever regulations will lead to a raised level of competitiveness, therefore higher productivity, more efficiency and lower price overall. The deregulation policy was deigned to.
i. Restructure and diversity the productive base of the economy in order to reduce dependency on the oil sector.
ii. To achieve focal and balance of payment viability.
iii. To lay the basis for sustainable non- inflationary or minimal inflationary growth rate.
iv. To lesion the dominance of unproductive investment in the economy, improve the sectors efficiency and intensity the growth the sectors efficiency and intensity the growth potential of the private sector. The listed aims are not exhaustive.
The banking industry which is a major instrument through which government execute their policies, need to appropriately reposition itself to take full advantages of the gains that might arise from deregulation, as well as face the challenges.

Deregulation of the economy will definitely prose some challenges to the banking industry. However the ability to copy with the challenges which will come in the form competitive lending rates, effective management of credit risk, level of expertise in investment banking and cooperate finance activities will all be the important determinant of success for banks.

As a financial intermediary, commercial banks are expected to witness an increase in credit request with concessionaries interest rate. This is as a result of high rate of return that is expected from deregulation of the economy, especially toward deregulation of petroleum products which will definitely attract investors. This is where in the banking industry come in.

The project will therefore aim at analyzing the effect the deregulation of the economy will have on activated of commercial banks.
1.1 STATEMENT OF PROBLEM
Due to the underdeveloped nature of Nigeria banking system it is sometime said that banks have not met the standard expected to them in the process of economic development especially with the introduction of deregulatory policy. There are many problems which the commercial bank is not exception some of the problem to be treated in the text which of course threatens the financial performance of commercial banks are as follows.
The reluctant competition between commercial banks as a result of the deregulatory policy and the possibility of bank failure which prompted the Federal Government to establish the Nigeria Deposit insurance corporation.
i. Ability to cope with the high demand for bank loans with competitive lending rate.
ii. The level of expertise in investment banking and corporate finance.
iii. Ability to effectively manage credit risk these with other problems threatens the financial performance to commercial bank due to the introduction the deregulation of the economy.

1.2 PURPOSE OF THE STUDY
The general purpose of this study is to examine the performance of commercial banks under a deregulated economy with a view of assessing, the effect, challenges, and benefits as well as achievement such deregulation will pose on commercial banks.

This study attempt to critically identify and analyze the impact of government deregulation of the economy on commercial banks with the aim making useful recommendation son how to improve commercial bank performance.

Emphasis will also be made on the current banking practices and habit as means of battling with the challenges and the threats deregulation has brought with it. Also to identify the various achievements made with the inception of the policy as well as to examine how effective commercial banks have been since the inception of the policy.

Furthermore this text will try to compare the activities of commercial banks under the system of regulation and deregulation and deregulation in order to know if the main objective of the policy is been achieve. Recommendation that will enhance the efficiency of banks operations will equally be made.
1.3 SIGNIFICANCE AND RLEVANCE OF THE STUDY
The findings of this work will contribute to knowledge in the subject matter, other researcher students and the entire public will hopefully benefit from this study since it will form the basis for other research for other research work.

1.4 SCOPE AND LIMITATION OF THE STUDY
This study will cover a period of four year period (2000-2004) and a case study approach using first Bank Plc will be adopted. This project will concern itself with the financial performance of commercial banks as measured by a study of the effect of economic deregulation of the various activities of commercial banks.

In order to obtain a broader picture of the effect the deregulations of the economy have on commercial banks. Question arises will also be administer on some other selected banks, in Owerri.

However emphasis on the research will be based on First Bank of Nigeria Plc Owerri

The study will be constrained by the following:
i. The policies and conventions employed by first banks of Nigerian Plc will not necessary be the same as those used by other banks.
ii. The deregulation policies as used by the Federal Government through central bank of Nigeria on a regular basis. There is the possibility that not all policies will be available for this study.
iii. Lack of access to computation and compulsivity of handling multivariate data analysis may pole the greatest problem for the study.
Due to the time limitation and financial constraint it will not be possible in visit more than three commercial banks with concentration on first Bank of Nigeria Plc Owerri.
1.5 FORMILATION OF HYPOTHESIS
The following hypothesis will be tested.
i. The deregulation of the economy resulted in an upsurge I n the number of commercial banks in the country.
ii. The deregulation of the economy has resulted an increase in commercial banks profitability.
iii. Deregulation of the economy has led to a shape increase in banks bad and doubtful dept.
The research shall restrict itself with the use descriptive hypothesis. The null and alternative hypotheses which are normally used in statistical testing will be use, with null hypothesis represented as Ho and alternative hypothesis represented by H1.
1.6 RESEARCH METHODOLOGY
The research methodology will involve the collection of data through oral interviews to top management staff of some commercial banks, namely spring bank guarantee truest bank first ban al in Owerri.

Questionnaire will also be administered to the staff of there banks s well as the use of their financial statement. The researches will analysis the banks records from 200-2004 (A period of form years) both years inclusive.

The research will adopt the case study approach in its analysis and First Bank of Nigeria Plc, Owerri branch will be used as the case study. Major analysis will be based on information received from First Bank Plc, Owerri branch.
1.6 DEFINITION OF TERMS
1. Collateral: An item of value demanded by banks as security for loans granted to customers.
2. Credit: Money created by commercial banks through the media of loans and discounts granted to customers.
3. Data: Any kind of information (numerical or non- numerical) relevant to research.
4. Data Analysis: Critical examination of data with explanations and interpretations of research data.
5. Interview: Discullion or conference between two or more people either buy face to face or through a medium such at telephone.
6. Loan: Money lent to customer by banks
7. Over draft: Amount of money by which a bank account is been overdrawn by a customer.
8. Advance: Money paid before the due date.
9. Bank: An institution which borrows money from the public and also lend it to the public.
10. Commercial Bank: Banks designed to lend short term loan and overdraft to their customers.
11. Concept: A term having universal acceptable definition or meaning.
12. Delimitation and limitation: Constraints or problem the research encountered in the course of the research.
13. Population: Totality of all items under study.
14. Primary Data: Data that is made use of by the same person who collected it.
15. Research: Investigation under taking to discover or confirm the existence of something, or to get additional information or knowledge about something.
16. Methodology: Procedure and technique used, including problems encountered in the course of the research.
17. Questionnaire: List of questions in a printed form administered to respondents.
18. Sample: Traction or part of the population taken in a specified, manner.
19. Null Hypothesis: A statistical hypothesis formulated for the purpose of rejecting or nullifying the hypothesis.
20. Oval interview: Face to face interview with the respondent.
21. Respondent: People (Sample of the population) who respondent to the questionnaire or were interviewed.
22. Variable: Any feature possessed by members of a population that differed from one another.
23. Return: The measure of profitability on investment.
24. Ratio: A sample mathematical expression of the relationship of one item to the other.
25. Trend: Time movement in a set of observation taken at specified time period usually at equal intervals.
26. Interest Rate: Rental payment for the use of credit y borrows and returns for parting with liquidity by lenders.

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Tags: THE IMPACT OF DEREGULATION OF THE ECONOMY ON NIGERIA COMMERCIAL BANKS (A CASE STUDY OF FIRST BANK NIGERIA PLC)

THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

After an appreciated economic performance in the early 1970s, the Nigerian economy experienced serious economic problems from late 1970s to mid 1980s the country’s balance of payment came under severe pressure and was in persistent deficit during the period. the government’s current expenditure expanded without an appreciable increase in revenue, leading to widening fiscal deficits, which were largely financial with bank credit with adverse consequences on the general price level. The inflationary pressure further appreciated by high demand of imports and both intermediate inputs and consumer goods due to over valuation of the naira, which made imports relatively larger than locally manufactured good, (Ahmed, 1992).

In addressing the crisis, a number of policy measures regularly demand government embarked upon management. In April 1982, the federal government enacted the economic stabilization measured, which dealt extensively on import restriction as well as monetary and fiscal policies. The effectiveness of this measures were constrained by the continued decline in foreign exchange earnings, the over valuation of naira and other distortions and liquidities in the economy, (Ahmed, 1992).

As the demand pressure movement at the inter-foreign exchange market (IFEM), the exchange rate of the naira came under renewed pressured in spite of CBN’s determination to fund the growing demand for foreign exchange. The naira cost 1% of its face value in February 2002 dropping from N11396 to N114, 75 per dollar at the official market in the parallel market, it cost 2.3% of its value as depreciates from N135.52 to N138.68 per dollar. This was an indication that inflation rat is on the increase (Yansi, 2002).

This study is being carried out to know the different CBN credit instruments and their effectiveness in inflationary control.

STATEMENT OF THE PROBLEM

This research project is designed to investigate inflation control through the use of monetary policy. There have been various efforts by the government to combat inflation in the country. But in spite of all these efforts being made, inflation is said to be alarming in the country. Nigerian industries as well as individuals are groaning under the crusting effect of inflation. What the causes of the phenomenon, what measures are taken so far to combat the situation, are credit instrument of CBN effective or ineffective in controlling inflation? (Ozo, et al 1999).

OBJECTIVES OF THE STUDY

1.      To find out whether currency devaluation is a cause of inflation.

2.      To find out the extent to which inflation has effected the economy.

3.      To determine the effectiveness of open market operations as a tool for inflation control.

4.      To identify the adverse effect of inflation on economic growth.

5.      To recommend measures for effective control of inflation through monetary measures.

RESEARCH QUESTION

1.      Is currency devaluation a cause of inflation?

2.      To what extent has inflation affected the economy?

3.      What is the effectiveness of open market operation as a tool for inflation control?

SIGNIFICANCE OF THE STUDY

The study is very timely, today that inflation trends is at an alarming rate in Nigerian economy. This study will be of immense benefit to the government and experts and students to determine the extent of the effect now of CBN monetary policy as a tool of inflation control. In addition, the study will determine the facts or problem limiting the effectiveness of these instruments. It is expected that the findings will help to bridge any gap that may exist and to make this instruments effective in inflation control (Ozo et al 1999).

The government achieved its objectives in economic growth and stability through inflation control we will help the government to know whether to pump money into the economy or not.

TABLE OF CONTENT:

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY

THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

After an appreciated economic performance in the early 1970s, the Nigerian economy experienced serious economic problems from late 1970s to mid 1980s the country’s balance of payment came under severe pressure and was in persistent deficit during the period. the government’s current expenditure expanded without an appreciable increase in revenue, leading to widening fiscal deficits, which were largely financial with bank credit with adverse consequences on the general price level. The inflationary pressure further appreciated by high demand of imports and both intermediate inputs and consumer goods due to over valuation of the naira, which made imports relatively larger than locally manufactured good, (Ahmed, 1992).

In addressing the crisis, a number of policy measures regularly demand government embarked upon management. In April 1982, the federal government enacted the economic stabilization measured, which dealt extensively on import restriction as well as monetary and fiscal policies. The effectiveness of this measures were constrained by the continued decline in foreign exchange earnings, the over valuation of naira and other distortions and liquidities in the economy, (Ahmed, 1992).

As the demand pressure movement at the inter-foreign exchange market (IFEM), the exchange rate of the naira came under renewed pressured in spite of CBN’s determination to fund the growing demand for foreign exchange. The naira cost 1% of its face value in February 2002 dropping from N11396 to N114, 75 per dollar at the official market in the parallel market, it cost 2.3% of its value as depreciates from N135.52 to N138.68 per dollar. This was an indication that inflation rat is on the increase (Yansi, 2002).

This study is being carried out to know the different CBN credit instruments and their effectiveness in inflationary control.

STATEMENT OF THE PROBLEM

This research project is designed to investigate inflation control through the use of monetary policy. There have been various efforts by the government to combat inflation in the country. But in spite of all these efforts being made, inflation is said to be alarming in the country. Nigerian industries as well as individuals are groaning under the crusting effect of inflation. What the causes of the phenomenon, what measures are taken so far to combat the situation, are credit instrument of CBN effective or ineffective in controlling inflation? (Ozo, et al 1999).

OBJECTIVES OF THE STUDY

1.      To find out whether currency devaluation is a cause of inflation.

2.      To find out the extent to which inflation has effected the economy.

3.      To determine the effectiveness of open market operations as a tool for inflation control.

4.      To identify the adverse effect of inflation on economic growth.

5.      To recommend measures for effective control of inflation through monetary measures.

RESEARCH QUESTION

1.      Is currency devaluation a cause of inflation?

2.      To what extent has inflation affected the economy?

3.      What is the effectiveness of open market operation as a tool for inflation control?

SIGNIFICANCE OF THE STUDY

The study is very timely, today that inflation trends is at an alarming rate in Nigerian economy. This study will be of immense benefit to the government and experts and students to determine the extent of the effect now of CBN monetary policy as a tool of inflation control. In addition, the study will determine the facts or problem limiting the effectiveness of these instruments. It is expected that the findings will help to bridge any gap that may exist and to make this instruments effective in inflation control (Ozo et al 1999).

The government achieved its objectives in economic growth and stability through inflation control we will help the government to know whether to pump money into the economy or not.

TABLE OF CONTENT:

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY

THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

After an appreciated economic performance in the early 1970s, the Nigerian economy experienced serious economic problems from late 1970s to mid 1980s the country’s balance of payment came under severe pressure and was in persistent deficit during the period. the government’s current expenditure expanded without an appreciable increase in revenue, leading to widening fiscal deficits, which were largely financial with bank credit with adverse consequences on the general price level. The inflationary pressure further appreciated by high demand of imports and both intermediate inputs and consumer goods due to over valuation of the naira, which made imports relatively larger than locally manufactured good, (Ahmed, 1992).

In addressing the crisis, a number of policy measures regularly demand government embarked upon management. In April 1982, the federal government enacted the economic stabilization measured, which dealt extensively on import restriction as well as monetary and fiscal policies. The effectiveness of this measures were constrained by the continued decline in foreign exchange earnings, the over valuation of naira and other distortions and liquidities in the economy, (Ahmed, 1992).

As the demand pressure movement at the inter-foreign exchange market (IFEM), the exchange rate of the naira came under renewed pressured in spite of CBN’s determination to fund the growing demand for foreign exchange. The naira cost 1% of its face value in February 2002 dropping from N11396 to N114, 75 per dollar at the official market in the parallel market, it cost 2.3% of its value as depreciates from N135.52 to N138.68 per dollar. This was an indication that inflation rat is on the increase (Yansi, 2002).

This study is being carried out to know the different CBN credit instruments and their effectiveness in inflationary control.

STATEMENT OF THE PROBLEM

This research project is designed to investigate inflation control through the use of monetary policy. There have been various efforts by the government to combat inflation in the country. But in spite of all these efforts being made, inflation is said to be alarming in the country. Nigerian industries as well as individuals are groaning under the crusting effect of inflation. What the causes of the phenomenon, what measures are taken so far to combat the situation, are credit instrument of CBN effective or ineffective in controlling inflation? (Ozo, et al 1999).

OBJECTIVES OF THE STUDY

1.      To find out whether currency devaluation is a cause of inflation.

2.      To find out the extent to which inflation has effected the economy.

3.      To determine the effectiveness of open market operations as a tool for inflation control.

4.      To identify the adverse effect of inflation on economic growth.

5.      To recommend measures for effective control of inflation through monetary measures.

RESEARCH QUESTION

1.      Is currency devaluation a cause of inflation?

2.      To what extent has inflation affected the economy?

3.      What is the effectiveness of open market operation as a tool for inflation control?

SIGNIFICANCE OF THE STUDY

The study is very timely, today that inflation trends is at an alarming rate in Nigerian economy. This study will be of immense benefit to the government and experts and students to determine the extent of the effect now of CBN monetary policy as a tool of inflation control. In addition, the study will determine the facts or problem limiting the effectiveness of these instruments. It is expected that the findings will help to bridge any gap that may exist and to make this instruments effective in inflation control (Ozo et al 1999).

The government achieved its objectives in economic growth and stability through inflation control we will help the government to know whether to pump money into the economy or not.

TABLE OF CONTENT:

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08139462710 or 08137701720

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(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE CONTROL OF INFLATION USING CENTRAL BANK OF NIGERIA (CBN) MONETARY POLICY

THE IMPACT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES

ABSTRACT

This paper analyzed empirically the linkages among interest rates deregulation and corporate financial strategies of selected firms their investment, turnover and profits. The study used a survey of business as well as the quoted companies’ final accounts and balance sheets, both before and after deregulation.

The result of the study showed a link between interest rates and the corporate financing strategies and the profitability of firms. It also revealed that interest rate deregulation has a link with the growth of the equity markets.

On sectoral analysis, the study indicated that the interest

rate deregulation does not seem to have similar effects on all the investigated quoted companies. However, industrialists are shown to be sensitive to cost of production, with interest rates treated as a major component in the cost profile.

Basically, all items of production are admitted to be affected by interest rate variations. The study therefore underscored the need to identify the trilogy of investment, production and finance and also to formulate policies that will not only integrate the entire financial markets (both

the money and the capital markets) in an attempt to synchronize the benefits of deregulation, but also to facilitate the financial mobilization process of firms, so that their optimum contribution to development can be facilitated.

CHAPTER ONE:

THE EFFECT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES:

1.1.      INTRODUCTION

The effects of interest rate deregulation on corporate financial strategies of companies in Nigeria cannot be overemphasized.

The role of financial institutions can also not be overemphasized because they assist in channeling funds from surplus economic regions to the deficit ones in order to facilitate business transactions and economic development at large.

Deregulation which is supposed to bring about

healthy competition; as Fergusson and Stephen (1995)

noted is a misnomer; sustainable competition which

instead of arousing competition, it has now become a tool

of exploitation and dragging the market forces to the

background.

Moreover, in countries where the financial marketers

are repressed (that is, interest rate control, compulsory

public debt placement; and control on external capital

flows) given a fixed nominal interest rate, fiscal deficits

raise inflation, resulting in a repressed (even negative)

real interest rates as observed in World Bank (1993).

However, the governments do intervene in order to

give stringent laws. Although they sometimes intervene with the intention of correcting the drawback of the price fixing

mechanisms to ensure that what is commercially rational

for a particular company or institution is approximately rational for all.

Prior to the introduction of Structural Adjustment

Programmes (SAP) in Nigeria in 1986, the Nigerian

financial sector was characterized by rigid exchange rate

and interest rate controls, mandatory sectoral allocation of

bank credit to the private sector, all of which engendered

distortion and inefficiencies that results to low direct

investment. Funds were inadequate, the Nigeria currency

was overvalued and the monetary and credit aggregate

moved rather sluggishly such that the economy was sort

of engulfed with a general lull.

The introduction of SAP led to some financial regulations like; interest rate, exchange rate and other deregulations according to (Ogwuma, 1993; Ojo, 1993).

However as a reversal policy, the government in January 1994 expressly introduced some measure of regulation into interest rate management owing to wide variations and unnecessarily

high rate under the complete deregulation of interest rates.

In light of the above, the deposit rates were once

again set at 12.45% per annum while a ceiling of 21% per

annum was fixed for lending rate. The cap on interest

rates introduced in 1994 was retained in 1995 with a little

modification for flexibility but was lifted in October 1996

to pursue a flexible, interest rate regime as observed by

Omole and Falokun (1999). In line with the adoption of

the market-based technique of monetary management,

interest rates policy remained flexible and responsive to

changes in market conditions.

However, as an instrument of monetary policy the central Bank of Nigeria CBN (2000) indirectly influenced the level and direction of change in interest rate movement through its invention rate on various money market assets especially the

Minimum Rediscount Rate (MRR) as well as the stop

rate of weekly tender for treasury bills. The MRR as the

nominal anchor of CBN’s interest rate policy continued to

be used proactively in line with prevailing economic

conditions while the rate of treasury bills is made market

related and competitive with comparable money market

instruments CBN (2006).

Further, the MRR has undergone some fluctuations since 1987 to date as a result of the changes in the CBN policies which in turn have changed the overall economic conditions.

In August 1987, interest rate was 15.0% and was reduced to 12.75% in December of 1987 with the objective of stimulating investment and growth in the economy. In 1989, the MRR was raised to 13.25% in order to contain inflation. To further deregulate interest rate management, the cap on interest rate was lifted in 1992 and re-imposed in 1994 when inflationary

spiral could not be contained.

However, in October 1996, interest rates were fully deregulated with the banks given freedom to determine the structure of interest rates in consultation with their customers.

The CBN however, retained its discretionary power to intervene in the money market to ensure orderly developments in interest rates.

The policy of interest rate deregulation has been retained

since 1997. Interestingly, the MRR was replaced with the

Monetary Policy Rate (MPR). Again, the MPR was

brought down to 10% from 14% MRR, with a lending

rate of 13% and a deposit rate of 7% which stood as a

standing facility intended to stem volatility in interest

rates especially that of the interbank rates.

It is pertinent to know that under a deregulated

interest rate system the market plays a vital role in

determining the interest; this implies that both financial institutions, individuals and companies  are free to be on the round tables to negotiate and arrive at a suitable interest rate on deposits and loans respectively.

This study attempts to investigate

the possible effects of interest rate deregulation on

the corporate financial strategies of selected companies in Nigeria.

1.2.       BACKGROUND OF THE STUDY:

The financial systems of most developing nations have come under stress as a result of the economic shocks of the 1980s. Additionally, financial repression, largely manifested through indiscriminate distortions of financial prices including interest rates, has tended to reduce the real rate of growth and the real size of the financial system relative to nonfinancial magnitudes. More importantly, financial repression has retarded the development process as envisaged by Shaw (1973).

Undoubtedly, governments’ past efforts to promote

economic development by controlling interest rates and securing “inexpensive” funding for their own activities have undermined financial development. Consequently, most countries, both developed, and developing have taken steps to deregulate their interest rates as part of the reform of the entire financial system. Such deregulation represents a policy response, encompassing a package of measures to remove all undesirable state imposed constraints on the free working of the financial markets. The measures include the removal of interest rate ceilings, and loosening of deposit and credit controls (Killick and Martin, 1990).

The Nigerian economy witnessed such financial repression in the early 1980s. There were rigid exchange and interest rate controls resulting in low direct investment. Funds were inadequate as there was a general lull in the economy. Monetary and credit aggregates moved rather sluggishly.

Consequently, there was a persistent pressure on the financial sector, which in turn necessitated a liberalization of the financial system. In response to these developments, the government deregulated interest rates in 1987 as part of the structural adjustment programme (SAP) policy package. The official position then was that interest rate liberalization would, among other things, enhance the provision of sufficient funds for investors, especially manufacturers (a priority sector), who are considered to be the prime agents, and by implication promoters, of economic growth.

However, in a policy reversal, the government in January 1994 out-rightly introduced some measure of regulation into interest rate management. It was claimed that there were “wide variations and unnecessarily high rates” under the complete deregulation of interest rates. Immediately, deposit rates were once again set at 12% – 15% per annum while a ceiling of 21% per annum was fixed for lending.

The cap on interest rates introduced in 1994 was retained in 1995 with a minor modification to allow for flexibility. The cap stayed in place until it was lifted in October 1996. The lifting remained in force in 1997, thus enabling the pursuit of a flexible interest rate regime in which bank deposit and lending rates were largely determined by the forces of supply and demand for funds. (See Table 1.) The trend portrays the bias of policy authorities towards a deregulated interest rates regime.

`

1.3.      STATEMENT OF PROBLEM

Due to the developing nature of the Nigeria economy, it is sometime said that companies have not met the standard expected from them especially with the introduction of deregulatory policies.

There are many problems to be treated in the text which of course threatens the performance of the corporate financial  strategies of companies. They are as follows:
The reluctant competition between companies as a result of interest rate deregulations and the possibility of the failure of companies

Other Problems Include:
i. Ability of companies to cope with the high demand for bank loans with competitive lending rate.
ii. The level of expertise in investment and corporate finance.
iii. Ability to effectively manage credit risks with other problems that threatens the corporate financial performance of companies due to the introduction of interest rate deregulation

1.4. PURPOSE OF THE STUDY:
The general purpose of this study is to examine the effect of interest rate deregulation on corporate financial strategies of selected companies, with a view of assessing, the effect, challenges, and benefits as well as achievement such deregulation will pose on these companies.

This study attempts to critically identify and analyze the impact of government interest rate deregulation on companies with the aim of making useful recommendations on how to improve the performance of their finance strategies.

Emphasis will also be made on the current company practices as means of battling with the challenges and the threats deregulation has brought with it. Also to identify the various achievements made with the inception of the deregulation policies as well as to examine how effective companies have been since the inception of the policies.

Furthermore this text will try to compare the activities of companies under the system of regulation and deregulation in order to know if the main objective of the policies is been achieve. Recommendation that will enhance the efficiency of company operations will equally be made.

1.5. SIGNIFICANCE AND RLEVANCE OF THE STUDY:
The findings of this work will contribute to knowledge in the subject matter. Other researchers, students and the entire public will hopefully benefit from this study since it will form the basis for other research works.

1.6. SCOPE AND LIMITATION OF THE STUDY:

This project will concern itself with the corporate financial strategies of companies as measured by a study of the effect of interest rate deregulation on the various corporate financial activities of selected companies .

The study will be constrained by the following:
i. The policies and conventions employed by a particular company will not necessarily be the same as those used by other companies.
ii. The interest rate deregulation policies is used by the Federal Government through central bank of Nigeria on a regular basis. There is the possibility that not all policies will be available for this study.
iii. Lack of access to computation and compulsivity of handling multi-varied data analysis may pose the greatest problem for the study.

1.7. RESEARCH QUESTIONS:

In view of the perceived benefits of deregulated interest rates, a number of pertinent questions deserve our keen consideration as a way of assessing the extent of success of the policy package. Equally, answers to these questions would enable us to assess the

desirability or otherwise of the occasional resort to financial system regulation and control. Such questions include:

• To what extent did the deregulated interest rates lead to increased corporate sourcing of funds in the money market or from alternatives such as the capital market?

• What happened to firm profits, turnover, investment, etc., before and during the interest rate deregulation regime?

• What are the possible implications of interest rate policy on the corporate financing strategy of firms in Nigeria?

1.8. OBJECTIVES OF THE STUDY:

The study sets out to examine empirically the pattern and direction of influence of interest rate deregulation on the corporate financing strategies of selected quoted companies in Nigeria, and the implications this will have for the effectiveness of interest rate policies.

In the process, the effects of interest rate deregulation on firm profits, turnover, investment, etc., are also examined.

The specific objectives of this study are to:

• trace the impact of interest rate deregulation on the leverage mix of quoted companies in Nigeria and the financing strategy adopted by them;

• examine the direct impact of interest rate deregulation on stock market activities;

• highlight the possible problems faced by quoted companies as well as the probable benefits to them if financial sector is deregulated; and

• draw policy conclusions for enhancing and synchronizing the probable benefits of interest rates deregulation.

1.9. RESEARCH HYPOTHESES:

The objectives listed above are based on the following research hypotheses:

• That the financing options of quoted companies in Nigeria is not related to interest rate deregulation.

• That there is no link between stock market activities in Nigeria and interest rates deregulation.

The analysis of the link between interest rates and financing strategies is rooted in the contending hypotheses of Modigliani and Miller (1958, 1963); Sundararajan (1987); Bhattacharya (1988); Dammon and Senbet (1988); and Lyon (1992).

There was an examination of the empirical link between interest rates and the corporate financing strategy of quoted companies in Nigeria, as portrayed by their leverage mix.

The basic questions we attempted to answer are:

• How did the leverage mix of quoted companies in Nigeria respond to interest rate dergulation?

• Are there inter-sectoral differences in the leverage mix of quoted companies in Nigeria consequent upon interest rate deregulation?

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE IMPACT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES

THE IMPACT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES

ABSTRACT

This paper analyzed empirically the linkages among interest rates deregulation and corporate financial strategies of selected firms their investment, turnover and profits. The study used a survey of business as well as the quoted companies’ final accounts and balance sheets, both before and after deregulation.

The result of the study showed a link between interest rates and the corporate financing strategies and the profitability of firms. It also revealed that interest rate deregulation has a link with the growth of the equity markets.

On sectoral analysis, the study indicated that the interest

rate deregulation does not seem to have similar effects on all the investigated quoted companies. However, industrialists are shown to be sensitive to cost of production, with interest rates treated as a major component in the cost profile.

Basically, all items of production are admitted to be affected by interest rate variations. The study therefore underscored the need to identify the trilogy of investment, production and finance and also to formulate policies that will not only integrate the entire financial markets (both

the money and the capital markets) in an attempt to synchronize the benefits of deregulation, but also to facilitate the financial mobilization process of firms, so that their optimum contribution to development can be facilitated.

CHAPTER ONE:

THE EFFECT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES:

1.1.      INTRODUCTION

The effects of interest rate deregulation on corporate financial strategies of companies in Nigeria cannot be overemphasized.

The role of financial institutions can also not be overemphasized because they assist in channeling funds from surplus economic regions to the deficit ones in order to facilitate business transactions and economic development at large.

Deregulation which is supposed to bring about

healthy competition; as Fergusson and Stephen (1995)

noted is a misnomer; sustainable competition which

instead of arousing competition, it has now become a tool

of exploitation and dragging the market forces to the

background.

Moreover, in countries where the financial marketers

are repressed (that is, interest rate control, compulsory

public debt placement; and control on external capital

flows) given a fixed nominal interest rate, fiscal deficits

raise inflation, resulting in a repressed (even negative)

real interest rates as observed in World Bank (1993).

However, the governments do intervene in order to

give stringent laws. Although they sometimes intervene with the intention of correcting the drawback of the price fixing

mechanisms to ensure that what is commercially rational

for a particular company or institution is approximately rational for all.

Prior to the introduction of Structural Adjustment

Programmes (SAP) in Nigeria in 1986, the Nigerian

financial sector was characterized by rigid exchange rate

and interest rate controls, mandatory sectoral allocation of

bank credit to the private sector, all of which engendered

distortion and inefficiencies that results to low direct

investment. Funds were inadequate, the Nigeria currency

was overvalued and the monetary and credit aggregate

moved rather sluggishly such that the economy was sort

of engulfed with a general lull.

The introduction of SAP led to some financial regulations like; interest rate, exchange rate and other deregulations according to (Ogwuma, 1993; Ojo, 1993).

However as a reversal policy, the government in January 1994 expressly introduced some measure of regulation into interest rate management owing to wide variations and unnecessarily

high rate under the complete deregulation of interest rates.

In light of the above, the deposit rates were once

again set at 12.45% per annum while a ceiling of 21% per

annum was fixed for lending rate. The cap on interest

rates introduced in 1994 was retained in 1995 with a little

modification for flexibility but was lifted in October 1996

to pursue a flexible, interest rate regime as observed by

Omole and Falokun (1999). In line with the adoption of

the market-based technique of monetary management,

interest rates policy remained flexible and responsive to

changes in market conditions.

However, as an instrument of monetary policy the central Bank of Nigeria CBN (2000) indirectly influenced the level and direction of change in interest rate movement through its invention rate on various money market assets especially the

Minimum Rediscount Rate (MRR) as well as the stop

rate of weekly tender for treasury bills. The MRR as the

nominal anchor of CBN’s interest rate policy continued to

be used proactively in line with prevailing economic

conditions while the rate of treasury bills is made market

related and competitive with comparable money market

instruments CBN (2006).

Further, the MRR has undergone some fluctuations since 1987 to date as a result of the changes in the CBN policies which in turn have changed the overall economic conditions.

In August 1987, interest rate was 15.0% and was reduced to 12.75% in December of 1987 with the objective of stimulating investment and growth in the economy. In 1989, the MRR was raised to 13.25% in order to contain inflation. To further deregulate interest rate management, the cap on interest rate was lifted in 1992 and re-imposed in 1994 when inflationary

spiral could not be contained.

However, in October 1996, interest rates were fully deregulated with the banks given freedom to determine the structure of interest rates in consultation with their customers.

The CBN however, retained its discretionary power to intervene in the money market to ensure orderly developments in interest rates.

The policy of interest rate deregulation has been retained

since 1997. Interestingly, the MRR was replaced with the

Monetary Policy Rate (MPR). Again, the MPR was

brought down to 10% from 14% MRR, with a lending

rate of 13% and a deposit rate of 7% which stood as a

standing facility intended to stem volatility in interest

rates especially that of the interbank rates.

It is pertinent to know that under a deregulated

interest rate system the market plays a vital role in

determining the interest; this implies that both financial institutions, individuals and companies  are free to be on the round tables to negotiate and arrive at a suitable interest rate on deposits and loans respectively.

This study attempts to investigate

the possible effects of interest rate deregulation on

the corporate financial strategies of selected companies in Nigeria.

1.2.       BACKGROUND OF THE STUDY:

The financial systems of most developing nations have come under stress as a result of the economic shocks of the 1980s. Additionally, financial repression, largely manifested through indiscriminate distortions of financial prices including interest rates, has tended to reduce the real rate of growth and the real size of the financial system relative to nonfinancial magnitudes. More importantly, financial repression has retarded the development process as envisaged by Shaw (1973).

Undoubtedly, governments’ past efforts to promote

economic development by controlling interest rates and securing “inexpensive” funding for their own activities have undermined financial development. Consequently, most countries, both developed, and developing have taken steps to deregulate their interest rates as part of the reform of the entire financial system. Such deregulation represents a policy response, encompassing a package of measures to remove all undesirable state imposed constraints on the free working of the financial markets. The measures include the removal of interest rate ceilings, and loosening of deposit and credit controls (Killick and Martin, 1990).

The Nigerian economy witnessed such financial repression in the early 1980s. There were rigid exchange and interest rate controls resulting in low direct investment. Funds were inadequate as there was a general lull in the economy. Monetary and credit aggregates moved rather sluggishly.

Consequently, there was a persistent pressure on the financial sector, which in turn necessitated a liberalization of the financial system. In response to these developments, the government deregulated interest rates in 1987 as part of the structural adjustment programme (SAP) policy package. The official position then was that interest rate liberalization would, among other things, enhance the provision of sufficient funds for investors, especially manufacturers (a priority sector), who are considered to be the prime agents, and by implication promoters, of economic growth.

However, in a policy reversal, the government in January 1994 out-rightly introduced some measure of regulation into interest rate management. It was claimed that there were “wide variations and unnecessarily high rates” under the complete deregulation of interest rates. Immediately, deposit rates were once again set at 12% – 15% per annum while a ceiling of 21% per annum was fixed for lending.

The cap on interest rates introduced in 1994 was retained in 1995 with a minor modification to allow for flexibility. The cap stayed in place until it was lifted in October 1996. The lifting remained in force in 1997, thus enabling the pursuit of a flexible interest rate regime in which bank deposit and lending rates were largely determined by the forces of supply and demand for funds. (See Table 1.) The trend portrays the bias of policy authorities towards a deregulated interest rates regime.

`

1.3.      STATEMENT OF PROBLEM

Due to the developing nature of the Nigeria economy, it is sometime said that companies have not met the standard expected from them especially with the introduction of deregulatory policies.

There are many problems to be treated in the text which of course threatens the performance of the corporate financial  strategies of companies. They are as follows:
The reluctant competition between companies as a result of interest rate deregulations and the possibility of the failure of companies

Other Problems Include:
i. Ability of companies to cope with the high demand for bank loans with competitive lending rate.
ii. The level of expertise in investment and corporate finance.
iii. Ability to effectively manage credit risks with other problems that threatens the corporate financial performance of companies due to the introduction of interest rate deregulation

1.4. PURPOSE OF THE STUDY:
The general purpose of this study is to examine the effect of interest rate deregulation on corporate financial strategies of selected companies, with a view of assessing, the effect, challenges, and benefits as well as achievement such deregulation will pose on these companies.

This study attempts to critically identify and analyze the impact of government interest rate deregulation on companies with the aim of making useful recommendations on how to improve the performance of their finance strategies.

Emphasis will also be made on the current company practices as means of battling with the challenges and the threats deregulation has brought with it. Also to identify the various achievements made with the inception of the deregulation policies as well as to examine how effective companies have been since the inception of the policies.

Furthermore this text will try to compare the activities of companies under the system of regulation and deregulation in order to know if the main objective of the policies is been achieve. Recommendation that will enhance the efficiency of company operations will equally be made.

1.5. SIGNIFICANCE AND RLEVANCE OF THE STUDY:
The findings of this work will contribute to knowledge in the subject matter. Other researchers, students and the entire public will hopefully benefit from this study since it will form the basis for other research works.

1.6. SCOPE AND LIMITATION OF THE STUDY:

This project will concern itself with the corporate financial strategies of companies as measured by a study of the effect of interest rate deregulation on the various corporate financial activities of selected companies .

The study will be constrained by the following:
i. The policies and conventions employed by a particular company will not necessarily be the same as those used by other companies.
ii. The interest rate deregulation policies is used by the Federal Government through central bank of Nigeria on a regular basis. There is the possibility that not all policies will be available for this study.
iii. Lack of access to computation and compulsivity of handling multi-varied data analysis may pose the greatest problem for the study.

1.7. RESEARCH QUESTIONS:

In view of the perceived benefits of deregulated interest rates, a number of pertinent questions deserve our keen consideration as a way of assessing the extent of success of the policy package. Equally, answers to these questions would enable us to assess the

desirability or otherwise of the occasional resort to financial system regulation and control. Such questions include:

• To what extent did the deregulated interest rates lead to increased corporate sourcing of funds in the money market or from alternatives such as the capital market?

• What happened to firm profits, turnover, investment, etc., before and during the interest rate deregulation regime?

• What are the possible implications of interest rate policy on the corporate financing strategy of firms in Nigeria?

1.8. OBJECTIVES OF THE STUDY:

The study sets out to examine empirically the pattern and direction of influence of interest rate deregulation on the corporate financing strategies of selected quoted companies in Nigeria, and the implications this will have for the effectiveness of interest rate policies.

In the process, the effects of interest rate deregulation on firm profits, turnover, investment, etc., are also examined.

The specific objectives of this study are to:

• trace the impact of interest rate deregulation on the leverage mix of quoted companies in Nigeria and the financing strategy adopted by them;

• examine the direct impact of interest rate deregulation on stock market activities;

• highlight the possible problems faced by quoted companies as well as the probable benefits to them if financial sector is deregulated; and

• draw policy conclusions for enhancing and synchronizing the probable benefits of interest rates deregulation.

1.9. RESEARCH HYPOTHESES:

The objectives listed above are based on the following research hypotheses:

• That the financing options of quoted companies in Nigeria is not related to interest rate deregulation.

• That there is no link between stock market activities in Nigeria and interest rates deregulation.

The analysis of the link between interest rates and financing strategies is rooted in the contending hypotheses of Modigliani and Miller (1958, 1963); Sundararajan (1987); Bhattacharya (1988); Dammon and Senbet (1988); and Lyon (1992).

There was an examination of the empirical link between interest rates and the corporate financing strategy of quoted companies in Nigeria, as portrayed by their leverage mix.

The basic questions we attempted to answer are:

• How did the leverage mix of quoted companies in Nigeria respond to interest rate dergulation?

• Are there inter-sectoral differences in the leverage mix of quoted companies in Nigeria consequent upon interest rate deregulation?

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

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Tags: THE IMPACT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES

THE IMPACT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES

ABSTRACT

This paper analyzed empirically the linkages among interest rates deregulation and corporate financial strategies of selected firms their investment, turnover and profits. The study used a survey of business as well as the quoted companies’ final accounts and balance sheets, both before and after deregulation.

The result of the study showed a link between interest rates and the corporate financing strategies and the profitability of firms. It also revealed that interest rate deregulation has a link with the growth of the equity markets.

On sectoral analysis, the study indicated that the interest

rate deregulation does not seem to have similar effects on all the investigated quoted companies. However, industrialists are shown to be sensitive to cost of production, with interest rates treated as a major component in the cost profile.

Basically, all items of production are admitted to be affected by interest rate variations. The study therefore underscored the need to identify the trilogy of investment, production and finance and also to formulate policies that will not only integrate the entire financial markets (both

the money and the capital markets) in an attempt to synchronize the benefits of deregulation, but also to facilitate the financial mobilization process of firms, so that their optimum contribution to development can be facilitated.

CHAPTER ONE:

THE EFFECT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES:

1.1.      INTRODUCTION

The effects of interest rate deregulation on corporate financial strategies of companies in Nigeria cannot be overemphasized.

The role of financial institutions can also not be overemphasized because they assist in channeling funds from surplus economic regions to the deficit ones in order to facilitate business transactions and economic development at large.

Deregulation which is supposed to bring about

healthy competition; as Fergusson and Stephen (1995)

noted is a misnomer; sustainable competition which

instead of arousing competition, it has now become a tool

of exploitation and dragging the market forces to the

background.

Moreover, in countries where the financial marketers

are repressed (that is, interest rate control, compulsory

public debt placement; and control on external capital

flows) given a fixed nominal interest rate, fiscal deficits

raise inflation, resulting in a repressed (even negative)

real interest rates as observed in World Bank (1993).

However, the governments do intervene in order to

give stringent laws. Although they sometimes intervene with the intention of correcting the drawback of the price fixing

mechanisms to ensure that what is commercially rational

for a particular company or institution is approximately rational for all.

Prior to the introduction of Structural Adjustment

Programmes (SAP) in Nigeria in 1986, the Nigerian

financial sector was characterized by rigid exchange rate

and interest rate controls, mandatory sectoral allocation of

bank credit to the private sector, all of which engendered

distortion and inefficiencies that results to low direct

investment. Funds were inadequate, the Nigeria currency

was overvalued and the monetary and credit aggregate

moved rather sluggishly such that the economy was sort

of engulfed with a general lull.

The introduction of SAP led to some financial regulations like; interest rate, exchange rate and other deregulations according to (Ogwuma, 1993; Ojo, 1993).

However as a reversal policy, the government in January 1994 expressly introduced some measure of regulation into interest rate management owing to wide variations and unnecessarily

high rate under the complete deregulation of interest rates.

In light of the above, the deposit rates were once

again set at 12.45% per annum while a ceiling of 21% per

annum was fixed for lending rate. The cap on interest

rates introduced in 1994 was retained in 1995 with a little

modification for flexibility but was lifted in October 1996

to pursue a flexible, interest rate regime as observed by

Omole and Falokun (1999). In line with the adoption of

the market-based technique of monetary management,

interest rates policy remained flexible and responsive to

changes in market conditions.

However, as an instrument of monetary policy the central Bank of Nigeria CBN (2000) indirectly influenced the level and direction of change in interest rate movement through its invention rate on various money market assets especially the

Minimum Rediscount Rate (MRR) as well as the stop

rate of weekly tender for treasury bills. The MRR as the

nominal anchor of CBN’s interest rate policy continued to

be used proactively in line with prevailing economic

conditions while the rate of treasury bills is made market

related and competitive with comparable money market

instruments CBN (2006).

Further, the MRR has undergone some fluctuations since 1987 to date as a result of the changes in the CBN policies which in turn have changed the overall economic conditions.

In August 1987, interest rate was 15.0% and was reduced to 12.75% in December of 1987 with the objective of stimulating investment and growth in the economy. In 1989, the MRR was raised to 13.25% in order to contain inflation. To further deregulate interest rate management, the cap on interest rate was lifted in 1992 and re-imposed in 1994 when inflationary

spiral could not be contained.

However, in October 1996, interest rates were fully deregulated with the banks given freedom to determine the structure of interest rates in consultation with their customers.

The CBN however, retained its discretionary power to intervene in the money market to ensure orderly developments in interest rates.

The policy of interest rate deregulation has been retained

since 1997. Interestingly, the MRR was replaced with the

Monetary Policy Rate (MPR). Again, the MPR was

brought down to 10% from 14% MRR, with a lending

rate of 13% and a deposit rate of 7% which stood as a

standing facility intended to stem volatility in interest

rates especially that of the interbank rates.

It is pertinent to know that under a deregulated

interest rate system the market plays a vital role in

determining the interest; this implies that both financial institutions, individuals and companies  are free to be on the round tables to negotiate and arrive at a suitable interest rate on deposits and loans respectively.

This study attempts to investigate

the possible effects of interest rate deregulation on

the corporate financial strategies of selected companies in Nigeria.

1.2.       BACKGROUND OF THE STUDY:

The financial systems of most developing nations have come under stress as a result of the economic shocks of the 1980s. Additionally, financial repression, largely manifested through indiscriminate distortions of financial prices including interest rates, has tended to reduce the real rate of growth and the real size of the financial system relative to nonfinancial magnitudes. More importantly, financial repression has retarded the development process as envisaged by Shaw (1973).

Undoubtedly, governments’ past efforts to promote

economic development by controlling interest rates and securing “inexpensive” funding for their own activities have undermined financial development. Consequently, most countries, both developed, and developing have taken steps to deregulate their interest rates as part of the reform of the entire financial system. Such deregulation represents a policy response, encompassing a package of measures to remove all undesirable state imposed constraints on the free working of the financial markets. The measures include the removal of interest rate ceilings, and loosening of deposit and credit controls (Killick and Martin, 1990).

The Nigerian economy witnessed such financial repression in the early 1980s. There were rigid exchange and interest rate controls resulting in low direct investment. Funds were inadequate as there was a general lull in the economy. Monetary and credit aggregates moved rather sluggishly.

Consequently, there was a persistent pressure on the financial sector, which in turn necessitated a liberalization of the financial system. In response to these developments, the government deregulated interest rates in 1987 as part of the structural adjustment programme (SAP) policy package. The official position then was that interest rate liberalization would, among other things, enhance the provision of sufficient funds for investors, especially manufacturers (a priority sector), who are considered to be the prime agents, and by implication promoters, of economic growth.

However, in a policy reversal, the government in January 1994 out-rightly introduced some measure of regulation into interest rate management. It was claimed that there were “wide variations and unnecessarily high rates” under the complete deregulation of interest rates. Immediately, deposit rates were once again set at 12% – 15% per annum while a ceiling of 21% per annum was fixed for lending.

The cap on interest rates introduced in 1994 was retained in 1995 with a minor modification to allow for flexibility. The cap stayed in place until it was lifted in October 1996. The lifting remained in force in 1997, thus enabling the pursuit of a flexible interest rate regime in which bank deposit and lending rates were largely determined by the forces of supply and demand for funds. (See Table 1.) The trend portrays the bias of policy authorities towards a deregulated interest rates regime.

`

1.3.      STATEMENT OF PROBLEM

Due to the developing nature of the Nigeria economy, it is sometime said that companies have not met the standard expected from them especially with the introduction of deregulatory policies.

There are many problems to be treated in the text which of course threatens the performance of the corporate financial  strategies of companies. They are as follows:
The reluctant competition between companies as a result of interest rate deregulations and the possibility of the failure of companies

Other Problems Include:
i. Ability of companies to cope with the high demand for bank loans with competitive lending rate.
ii. The level of expertise in investment and corporate finance.
iii. Ability to effectively manage credit risks with other problems that threatens the corporate financial performance of companies due to the introduction of interest rate deregulation

1.4. PURPOSE OF THE STUDY:
The general purpose of this study is to examine the effect of interest rate deregulation on corporate financial strategies of selected companies, with a view of assessing, the effect, challenges, and benefits as well as achievement such deregulation will pose on these companies.

This study attempts to critically identify and analyze the impact of government interest rate deregulation on companies with the aim of making useful recommendations on how to improve the performance of their finance strategies.

Emphasis will also be made on the current company practices as means of battling with the challenges and the threats deregulation has brought with it. Also to identify the various achievements made with the inception of the deregulation policies as well as to examine how effective companies have been since the inception of the policies.

Furthermore this text will try to compare the activities of companies under the system of regulation and deregulation in order to know if the main objective of the policies is been achieve. Recommendation that will enhance the efficiency of company operations will equally be made.

1.5. SIGNIFICANCE AND RLEVANCE OF THE STUDY:
The findings of this work will contribute to knowledge in the subject matter. Other researchers, students and the entire public will hopefully benefit from this study since it will form the basis for other research works.

1.6. SCOPE AND LIMITATION OF THE STUDY:

This project will concern itself with the corporate financial strategies of companies as measured by a study of the effect of interest rate deregulation on the various corporate financial activities of selected companies .

The study will be constrained by the following:
i. The policies and conventions employed by a particular company will not necessarily be the same as those used by other companies.
ii. The interest rate deregulation policies is used by the Federal Government through central bank of Nigeria on a regular basis. There is the possibility that not all policies will be available for this study.
iii. Lack of access to computation and compulsivity of handling multi-varied data analysis may pose the greatest problem for the study.

1.7. RESEARCH QUESTIONS:

In view of the perceived benefits of deregulated interest rates, a number of pertinent questions deserve our keen consideration as a way of assessing the extent of success of the policy package. Equally, answers to these questions would enable us to assess the

desirability or otherwise of the occasional resort to financial system regulation and control. Such questions include:

• To what extent did the deregulated interest rates lead to increased corporate sourcing of funds in the money market or from alternatives such as the capital market?

• What happened to firm profits, turnover, investment, etc., before and during the interest rate deregulation regime?

• What are the possible implications of interest rate policy on the corporate financing strategy of firms in Nigeria?

1.8. OBJECTIVES OF THE STUDY:

The study sets out to examine empirically the pattern and direction of influence of interest rate deregulation on the corporate financing strategies of selected quoted companies in Nigeria, and the implications this will have for the effectiveness of interest rate policies.

In the process, the effects of interest rate deregulation on firm profits, turnover, investment, etc., are also examined.

The specific objectives of this study are to:

• trace the impact of interest rate deregulation on the leverage mix of quoted companies in Nigeria and the financing strategy adopted by them;

• examine the direct impact of interest rate deregulation on stock market activities;

• highlight the possible problems faced by quoted companies as well as the probable benefits to them if financial sector is deregulated; and

• draw policy conclusions for enhancing and synchronizing the probable benefits of interest rates deregulation.

1.9. RESEARCH HYPOTHESES:

The objectives listed above are based on the following research hypotheses:

• That the financing options of quoted companies in Nigeria is not related to interest rate deregulation.

• That there is no link between stock market activities in Nigeria and interest rates deregulation.

The analysis of the link between interest rates and financing strategies is rooted in the contending hypotheses of Modigliani and Miller (1958, 1963); Sundararajan (1987); Bhattacharya (1988); Dammon and Senbet (1988); and Lyon (1992).

There was an examination of the empirical link between interest rates and the corporate financing strategy of quoted companies in Nigeria, as portrayed by their leverage mix.

The basic questions we attempted to answer are:

• How did the leverage mix of quoted companies in Nigeria respond to interest rate dergulation?

• Are there inter-sectoral differences in the leverage mix of quoted companies in Nigeria consequent upon interest rate deregulation?

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CAUTION/WARNING

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That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

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www.easyprojectmaterials.com.ng

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Tags: THE IMPACT OF INTEREST RATE DEREGULATION ON CORPORATE FINANCIAL STRATEGIES

RELEVANCE OF MICROFINANCE INSTITUTIONS IN FINANCING SMALL SCALE ENTERPRISES

ABSTRACT:

Government has identified the need for the development of Small and Medium Scale Enterprises (SME). One of such sectoral strategies is the introduction and pursuit of policies such as concessionary financing to encourage and strengthen the growth of SMEs in Nigeria.

In this research, a random sample of 10 formal/ informal finance sources and 20 SMEs in 6 selected Small and Medium industries in Kaduna and Abuja have been studied. We found that financing options for SMEs are numerous but access to these funds has been difficult inspite of several government initiatives. We also found that the Small and Medium Industries Equity Investments Scheme(SMIEIS) fund lacks standard guideline for fund disbursement, the unregulated informal finance institutions finance the SMEs much more than the formal sources and the informal sources make up more than half of the SMEs’ mix of funds. It is recommended that the informal source of financing is a potentially important source of micro financing. Savings in them should be further encouraged through regulation, government intervention by way of active participation of community and development banks in local business associations. SMEs should consider all financing options that maximize thevalue of the business enterprise.

1.1 Background to the Study

In Nigeria, credit has been recognized as an essential tool for promoting small and Micro Enterprises (SMEs). About 70 percent of the population is engaged in the informal sector or in agricultural production.

The Federal and State governments have recognized that for sustainable growth and development, the financial empowerment of the people is vital. If this growth strategy is adopted and the latent entrepreneurial capabilities of this large segment of the people is sufficiently stimulated and sustained, then positive multipliers will be felt throughout the economy. To give effect to these aspirations various policies have been instituted over time by the Federal Government to improve rural and urban enterprise production capabilities (Olaitan 2006)

Small Business Enterprise (SBE) transformation is all about seeking to bring about improvement in the living condition of the farmer, the artisan, the tenant and the landless within the simple and rustic economies of the country-sides and urban slums. The basis for employment generation and entrepreneurship development in the country, therefore, is to enhance the improvement of the living condition of the people (Mustapha, 2009).

The Micro business entrepreneurs lack the necessary financial services, especially credit from the commercial banks; this is because they are considered not credit worthy. Consequently they depended on families, friends and other informal sources of funds to finance their businesses.

Successive governments have come up with special programs, whose principal targets are the overall empowerment of low income earners in urban centers. These programmes range from Agricultural Development Projects (ADPs), the establishment of Agricultural Credit Banks to Better Life Programme for Rural Women and the like. Unfortunately most of the programmes failed to achieve the desired result. That led to the emergence of microfinance banks which aimed at extending credits to micro enterprises and encouraging entrepreneurship.

The Nigerian microfinance industry has come a long way; it boasts of all the four well-known models in the industry. A CBN study identified, as of 2001, 160 registered MFIs in Nigeria with aggregate savings wo rth N99.4 million and outstanding credit of N649.6 million, indicating huge business transactions in the sector (Anyanwu, 2004).  Institutional structures for the provision of micro credit vary and may be any of the following: government or public sector-oriented, NGO supported, traditional or a mixture of two or more of these.

Lagos state, with a population of about 15 million (2006 census report) of which about two -thirds of the residents are poor and struggling for survival in the face of high rate of unemployment, the need for micro finance support cannot be over emphasis. Most of these people in Lagos are dependent on micro and small-scale farming and off-farm enterprises for their livelihood. As such, their entrepreneurial contributions are strategic to the Nigerian economic development and growth has great potential to contribute to income generation and poverty alleviation.

In the light of the foregoing, this study is conducted to examine the impact of microfinance banks on Micro Business Enterprises (SBE) in Nigeria.

1.2 Statement of Problem

One of the challenges of micro financing in Nigeria at present is how to the Micro Finance Institutions (MFI) can reach a greater number of small scale business enterpreneurs.

The CBN survey indicated that their client base was about 600,000 in 2001, and there were indications that they may not be above 1.5 million in 2003. The existing microfinance banks in Nigeria serves less than 1 million people out of 40 million potential people that need the service (CBN, 2005).

Also, the aggregate micro credit facilities in Nigeria, account for about 0.2 percent of GDP and less than one percent of total credit to the economy.

The effect of not appropriately addressing this situation would further accentuate poverty and slow down growth and development of SMEs in the country.

The Microfinance Banks replaced the ailing Community Banks created by former military head of state General Ibrahim Babangida but was soon caught in the throes of an inefficient Nigerian economic system. This laudable concept has been hijacked by money bags; it has been caught by bureaucracy of the Nigerian politics and economics. The concept of micro financing is presently being misapplied. The CBN directs that every microfinance bank should have a minimum reserve of not less than N20 million, while at the same time directing that the NDIC insures each depositor for a maximum N100,000.00 regardless of the amount of money invested.

These requirements takes the microfinance industry out of the reach of the people it was intended to serve; the very poor. While at the same time it discourages prospective investors because their funds are not sufficiently secured. It is interesting to know that the CBN does not regulate interest rates charged by microfinance banks; so with N20m tied up in the CBN vaults as legal reserve ratio, high cost of incorporation of business ventures; taxes, approvals, rents, salaries etc the operators hardly have enough left to commence operations.

Having failed to capture its target market, Microfinance banks in the country are now trying to compete with full fledged banks but are grossly lacking in the most important aspect of its operations; that is raising funds from depositors and getting prospective clients to shed their phobia for bank loans for fear of exorbitant interest rates charged and hidden bank charges.

According to Akindutire,(2008) Operators of microfinance banks believe it is a short cut to owning a bank without going through the rigours of procuring a banking license or paying the over N250m CBN deposit required to start a banking business. It is commonplace to find a microfinance bank taking out expensive paid adverts and expensive corporate imaging in the hope that it will open them up to the market.

On the contrary it extrapolated their problems. For instance what would a microfinance bank be doing at Adeola Odeku or Ikoyi? When the target market is at Okokomaiko, Mile 2, or all other places where you can find an akara, plantain (boli) seller, recharge card seller, okada rider e.t.c instead microfinance banks are competing for corporate accounts they want to have salary accounts for government parastatal, or finance petroleum marketing industries, consequently you will find them in suits, chauffeur driven in state of the art cars.

Against the backdrop of the foregoing problems, this study will examine the micro finance institutions and their impact on small scale businesses in Nigeria.

1.3 Objectives of Study

The primary objective of this study shall be to examine the impact of micro finance bank on the Growth and development of Micro Business Enterprises in Nigeria and Lagos in particular.  Other salient objectives will include;

i.            To determine the relationship between Micro finance banks and Small Business Entrepreneurs in Nigeria.

ii.          To examine the challenges of micro financing in Nigeria

iii.        To identify the impact of lack of financial support on small scale businesses

iv.         To suggest means by which micro finance institutions

can be more responsive to Small business needs in Nigeria

1.4 Research Questions

The following research questions shall guide the study;

i. what is the relationship between micro finance Banks and small business enterprises in Nigeria?

ii. What are the challenges of Micro Finance in Nigeria?

iii. What are the effects of lack of financial support on Small business?

iv. How can micro Finance institutions be responsive to small business enterprises demands?

1.5 Research hypotheses

The following hypotheses will be tested in the study;

H_o: There is no relationship between Micro finance Banks

and Small Business Enterprises in Nigeria

H_i: There is a relationship between Micro finance Banks and

Small Business Enterprises in Nigeria

H_o: Micro finance banks do not encourage small business

owners in Lagos

H_i; Micro finance banks do not encourage small business

owners in Lagos

1.6 Significance of the Study

Robust economic growth cannot be achieved without putting in place well focused programmes to reduce poverty through empowering the people by increasing their access to factors of production, especially credit. The latent capacity of the poor entrepreneurs would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self-reliant; increase employment opportunities, enhance household income, and create wealth.

However, the lack of required financial support from the microfinance banks to Micro Business operators in Lagos state has become a major concern in Nigeria. Hence, this study shall be relevant to policy makers in the areas of finding out the impact of micro financing on the small scale investors. Also, this study shall enhance further research in the subject area.

1.7 Scope and Limitations of the Study

The scope of the study shall cover micro finance banks and micro business entrepreneurs in Lagos state metropolis. However, owing to shortage of literature and financial data, raw data shall be generated from selected small business operators in Ojo local government area of Lagos state.

TABLE OF CONTENT:

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: RELEVANCE OF MICROFINANCE INSTITUTIONS IN FINANCING SMALL SCALE ENTERPRISES

RELEVANCE OF MICROFINANCE INSTITUTIONS IN FINANCING SMALL SCALE ENTERPRISES

ABSTRACT:

Government has identified the need for the development of Small and Medium Scale Enterprises (SME). One of such sectoral strategies is the introduction and pursuit of policies such as concessionary financing to encourage and strengthen the growth of SMEs in Nigeria.

In this research, a random sample of 10 formal/ informal finance sources and 20 SMEs in 6 selected Small and Medium industries in Kaduna and Abuja have been studied. We found that financing options for SMEs are numerous but access to these funds has been difficult inspite of several government initiatives. We also found that the Small and Medium Industries Equity Investments Scheme(SMIEIS) fund lacks standard guideline for fund disbursement, the unregulated informal finance institutions finance the SMEs much more than the formal sources and the informal sources make up more than half of the SMEs’ mix of funds. It is recommended that the informal source of financing is a potentially important source of micro financing. Savings in them should be further encouraged through regulation, government intervention by way of active participation of community and development banks in local business associations. SMEs should consider all financing options that maximize thevalue of the business enterprise.

1.1 Background to the Study

In Nigeria, credit has been recognized as an essential tool for promoting small and Micro Enterprises (SMEs). About 70 percent of the population is engaged in the informal sector or in agricultural production.

The Federal and State governments have recognized that for sustainable growth and development, the financial empowerment of the people is vital. If this growth strategy is adopted and the latent entrepreneurial capabilities of this large segment of the people is sufficiently stimulated and sustained, then positive multipliers will be felt throughout the economy. To give effect to these aspirations various policies have been instituted over time by the Federal Government to improve rural and urban enterprise production capabilities (Olaitan 2006)

Small Business Enterprise (SBE) transformation is all about seeking to bring about improvement in the living condition of the farmer, the artisan, the tenant and the landless within the simple and rustic economies of the country-sides and urban slums. The basis for employment generation and entrepreneurship development in the country, therefore, is to enhance the improvement of the living condition of the people (Mustapha, 2009).

The Micro business entrepreneurs lack the necessary financial services, especially credit from the commercial banks; this is because they are considered not credit worthy. Consequently they depended on families, friends and other informal sources of funds to finance their businesses.

Successive governments have come up with special programs, whose principal targets are the overall empowerment of low income earners in urban centers. These programmes range from Agricultural Development Projects (ADPs), the establishment of Agricultural Credit Banks to Better Life Programme for Rural Women and the like. Unfortunately most of the programmes failed to achieve the desired result. That led to the emergence of microfinance banks which aimed at extending credits to micro enterprises and encouraging entrepreneurship.

The Nigerian microfinance industry has come a long way; it boasts of all the four well-known models in the industry. A CBN study identified, as of 2001, 160 registered MFIs in Nigeria with aggregate savings wo rth N99.4 million and outstanding credit of N649.6 million, indicating huge business transactions in the sector (Anyanwu, 2004).  Institutional structures for the provision of micro credit vary and may be any of the following: government or public sector-oriented, NGO supported, traditional or a mixture of two or more of these.

Lagos state, with a population of about 15 million (2006 census report) of which about two -thirds of the residents are poor and struggling for survival in the face of high rate of unemployment, the need for micro finance support cannot be over emphasis. Most of these people in Lagos are dependent on micro and small-scale farming and off-farm enterprises for their livelihood. As such, their entrepreneurial contributions are strategic to the Nigerian economic development and growth has great potential to contribute to income generation and poverty alleviation.

In the light of the foregoing, this study is conducted to examine the impact of microfinance banks on Micro Business Enterprises (SBE) in Nigeria.

1.2 Statement of Problem

One of the challenges of micro financing in Nigeria at present is how to the Micro Finance Institutions (MFI) can reach a greater number of small scale business enterpreneurs.

The CBN survey indicated that their client base was about 600,000 in 2001, and there were indications that they may not be above 1.5 million in 2003. The existing microfinance banks in Nigeria serves less than 1 million people out of 40 million potential people that need the service (CBN, 2005).

Also, the aggregate micro credit facilities in Nigeria, account for about 0.2 percent of GDP and less than one percent of total credit to the economy.

The effect of not appropriately addressing this situation would further accentuate poverty and slow down growth and development of SMEs in the country.

The Microfinance Banks replaced the ailing Community Banks created by former military head of state General Ibrahim Babangida but was soon caught in the throes of an inefficient Nigerian economic system. This laudable concept has been hijacked by money bags; it has been caught by bureaucracy of the Nigerian politics and economics. The concept of micro financing is presently being misapplied. The CBN directs that every microfinance bank should have a minimum reserve of not less than N20 million, while at the same time directing that the NDIC insures each depositor for a maximum N100,000.00 regardless of the amount of money invested.

These requirements takes the microfinance industry out of the reach of the people it was intended to serve; the very poor. While at the same time it discourages prospective investors because their funds are not sufficiently secured. It is interesting to know that the CBN does not regulate interest rates charged by microfinance banks; so with N20m tied up in the CBN vaults as legal reserve ratio, high cost of incorporation of business ventures; taxes, approvals, rents, salaries etc the operators hardly have enough left to commence operations.

Having failed to capture its target market, Microfinance banks in the country are now trying to compete with full fledged banks but are grossly lacking in the most important aspect of its operations; that is raising funds from depositors and getting prospective clients to shed their phobia for bank loans for fear of exorbitant interest rates charged and hidden bank charges.

According to Akindutire,(2008) Operators of microfinance banks believe it is a short cut to owning a bank without going through the rigours of procuring a banking license or paying the over N250m CBN deposit required to start a banking business. It is commonplace to find a microfinance bank taking out expensive paid adverts and expensive corporate imaging in the hope that it will open them up to the market.

On the contrary it extrapolated their problems. For instance what would a microfinance bank be doing at Adeola Odeku or Ikoyi? When the target market is at Okokomaiko, Mile 2, or all other places where you can find an akara, plantain (boli) seller, recharge card seller, okada rider e.t.c instead microfinance banks are competing for corporate accounts they want to have salary accounts for government parastatal, or finance petroleum marketing industries, consequently you will find them in suits, chauffeur driven in state of the art cars.

Against the backdrop of the foregoing problems, this study will examine the micro finance institutions and their impact on small scale businesses in Nigeria.

1.3 Objectives of Study

The primary objective of this study shall be to examine the impact of micro finance bank on the Growth and development of Micro Business Enterprises in Nigeria and Lagos in particular.  Other salient objectives will include;

i.            To determine the relationship between Micro finance banks and Small Business Entrepreneurs in Nigeria.

ii.          To examine the challenges of micro financing in Nigeria

iii.        To identify the impact of lack of financial support on small scale businesses

iv.         To suggest means by which micro finance institutions

can be more responsive to Small business needs in Nigeria

1.4 Research Questions

The following research questions shall guide the study;

i. what is the relationship between micro finance Banks and small business enterprises in Nigeria?

ii. What are the challenges of Micro Finance in Nigeria?

iii. What are the effects of lack of financial support on Small business?

iv. How can micro Finance institutions be responsive to small business enterprises demands?

1.5 Research hypotheses

The following hypotheses will be tested in the study;

H_o: There is no relationship between Micro finance Banks

and Small Business Enterprises in Nigeria

H_i: There is a relationship between Micro finance Banks and

Small Business Enterprises in Nigeria

H_o: Micro finance banks do not encourage small business

owners in Lagos

H_i; Micro finance banks do not encourage small business

owners in Lagos

1.6 Significance of the Study

Robust economic growth cannot be achieved without putting in place well focused programmes to reduce poverty through empowering the people by increasing their access to factors of production, especially credit. The latent capacity of the poor entrepreneurs would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self-reliant; increase employment opportunities, enhance household income, and create wealth.

However, the lack of required financial support from the microfinance banks to Micro Business operators in Lagos state has become a major concern in Nigeria. Hence, this study shall be relevant to policy makers in the areas of finding out the impact of micro financing on the small scale investors. Also, this study shall enhance further research in the subject area.

1.7 Scope and Limitations of the Study

The scope of the study shall cover micro finance banks and micro business entrepreneurs in Lagos state metropolis. However, owing to shortage of literature and financial data, raw data shall be generated from selected small business operators in Ojo local government area of Lagos state.

TABLE OF CONTENT:

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

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No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

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That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

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www.easyprojectmaterials.com.ng

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Tags: RELEVANCE OF MICROFINANCE INSTITUTIONS IN FINANCING SMALL SCALE ENTERPRISES

RELEVANCE OF MICROFINANCE INSTITUTIONS IN FINANCING SMALL SCALE ENTERPRISES

ABSTRACT:

Government has identified the need for the development of Small and Medium Scale Enterprises (SME). One of such sectoral strategies is the introduction and pursuit of policies such as concessionary financing to encourage and strengthen the growth of SMEs in Nigeria.

In this research, a random sample of 10 formal/ informal finance sources and 20 SMEs in 6 selected Small and Medium industries in Kaduna and Abuja have been studied. We found that financing options for SMEs are numerous but access to these funds has been difficult inspite of several government initiatives. We also found that the Small and Medium Industries Equity Investments Scheme(SMIEIS) fund lacks standard guideline for fund disbursement, the unregulated informal finance institutions finance the SMEs much more than the formal sources and the informal sources make up more than half of the SMEs’ mix of funds. It is recommended that the informal source of financing is a potentially important source of micro financing. Savings in them should be further encouraged through regulation, government intervention by way of active participation of community and development banks in local business associations. SMEs should consider all financing options that maximize thevalue of the business enterprise.

1.1 Background to the Study

In Nigeria, credit has been recognized as an essential tool for promoting small and Micro Enterprises (SMEs). About 70 percent of the population is engaged in the informal sector or in agricultural production.

The Federal and State governments have recognized that for sustainable growth and development, the financial empowerment of the people is vital. If this growth strategy is adopted and the latent entrepreneurial capabilities of this large segment of the people is sufficiently stimulated and sustained, then positive multipliers will be felt throughout the economy. To give effect to these aspirations various policies have been instituted over time by the Federal Government to improve rural and urban enterprise production capabilities (Olaitan 2006)

Small Business Enterprise (SBE) transformation is all about seeking to bring about improvement in the living condition of the farmer, the artisan, the tenant and the landless within the simple and rustic economies of the country-sides and urban slums. The basis for employment generation and entrepreneurship development in the country, therefore, is to enhance the improvement of the living condition of the people (Mustapha, 2009).

The Micro business entrepreneurs lack the necessary financial services, especially credit from the commercial banks; this is because they are considered not credit worthy. Consequently they depended on families, friends and other informal sources of funds to finance their businesses.

Successive governments have come up with special programs, whose principal targets are the overall empowerment of low income earners in urban centers. These programmes range from Agricultural Development Projects (ADPs), the establishment of Agricultural Credit Banks to Better Life Programme for Rural Women and the like. Unfortunately most of the programmes failed to achieve the desired result. That led to the emergence of microfinance banks which aimed at extending credits to micro enterprises and encouraging entrepreneurship.

The Nigerian microfinance industry has come a long way; it boasts of all the four well-known models in the industry. A CBN study identified, as of 2001, 160 registered MFIs in Nigeria with aggregate savings wo rth N99.4 million and outstanding credit of N649.6 million, indicating huge business transactions in the sector (Anyanwu, 2004).  Institutional structures for the provision of micro credit vary and may be any of the following: government or public sector-oriented, NGO supported, traditional or a mixture of two or more of these.

Lagos state, with a population of about 15 million (2006 census report) of which about two -thirds of the residents are poor and struggling for survival in the face of high rate of unemployment, the need for micro finance support cannot be over emphasis. Most of these people in Lagos are dependent on micro and small-scale farming and off-farm enterprises for their livelihood. As such, their entrepreneurial contributions are strategic to the Nigerian economic development and growth has great potential to contribute to income generation and poverty alleviation.

In the light of the foregoing, this study is conducted to examine the impact of microfinance banks on Micro Business Enterprises (SBE) in Nigeria.

1.2 Statement of Problem

One of the challenges of micro financing in Nigeria at present is how to the Micro Finance Institutions (MFI) can reach a greater number of small scale business enterpreneurs.

The CBN survey indicated that their client base was about 600,000 in 2001, and there were indications that they may not be above 1.5 million in 2003. The existing microfinance banks in Nigeria serves less than 1 million people out of 40 million potential people that need the service (CBN, 2005).

Also, the aggregate micro credit facilities in Nigeria, account for about 0.2 percent of GDP and less than one percent of total credit to the economy.

The effect of not appropriately addressing this situation would further accentuate poverty and slow down growth and development of SMEs in the country.

The Microfinance Banks replaced the ailing Community Banks created by former military head of state General Ibrahim Babangida but was soon caught in the throes of an inefficient Nigerian economic system. This laudable concept has been hijacked by money bags; it has been caught by bureaucracy of the Nigerian politics and economics. The concept of micro financing is presently being misapplied. The CBN directs that every microfinance bank should have a minimum reserve of not less than N20 million, while at the same time directing that the NDIC insures each depositor for a maximum N100,000.00 regardless of the amount of money invested.

These requirements takes the microfinance industry out of the reach of the people it was intended to serve; the very poor. While at the same time it discourages prospective investors because their funds are not sufficiently secured. It is interesting to know that the CBN does not regulate interest rates charged by microfinance banks; so with N20m tied up in the CBN vaults as legal reserve ratio, high cost of incorporation of business ventures; taxes, approvals, rents, salaries etc the operators hardly have enough left to commence operations.

Having failed to capture its target market, Microfinance banks in the country are now trying to compete with full fledged banks but are grossly lacking in the most important aspect of its operations; that is raising funds from depositors and getting prospective clients to shed their phobia for bank loans for fear of exorbitant interest rates charged and hidden bank charges.

According to Akindutire,(2008) Operators of microfinance banks believe it is a short cut to owning a bank without going through the rigours of procuring a banking license or paying the over N250m CBN deposit required to start a banking business. It is commonplace to find a microfinance bank taking out expensive paid adverts and expensive corporate imaging in the hope that it will open them up to the market.

On the contrary it extrapolated their problems. For instance what would a microfinance bank be doing at Adeola Odeku or Ikoyi? When the target market is at Okokomaiko, Mile 2, or all other places where you can find an akara, plantain (boli) seller, recharge card seller, okada rider e.t.c instead microfinance banks are competing for corporate accounts they want to have salary accounts for government parastatal, or finance petroleum marketing industries, consequently you will find them in suits, chauffeur driven in state of the art cars.

Against the backdrop of the foregoing problems, this study will examine the micro finance institutions and their impact on small scale businesses in Nigeria.

1.3 Objectives of Study

The primary objective of this study shall be to examine the impact of micro finance bank on the Growth and development of Micro Business Enterprises in Nigeria and Lagos in particular.  Other salient objectives will include;

i.            To determine the relationship between Micro finance banks and Small Business Entrepreneurs in Nigeria.

ii.          To examine the challenges of micro financing in Nigeria

iii.        To identify the impact of lack of financial support on small scale businesses

iv.         To suggest means by which micro finance institutions

can be more responsive to Small business needs in Nigeria

1.4 Research Questions

The following research questions shall guide the study;

i. what is the relationship between micro finance Banks and small business enterprises in Nigeria?

ii. What are the challenges of Micro Finance in Nigeria?

iii. What are the effects of lack of financial support on Small business?

iv. How can micro Finance institutions be responsive to small business enterprises demands?

1.5 Research hypotheses

The following hypotheses will be tested in the study;

H_o: There is no relationship between Micro finance Banks

and Small Business Enterprises in Nigeria

H_i: There is a relationship between Micro finance Banks and

Small Business Enterprises in Nigeria

H_o: Micro finance banks do not encourage small business

owners in Lagos

H_i; Micro finance banks do not encourage small business

owners in Lagos

1.6 Significance of the Study

Robust economic growth cannot be achieved without putting in place well focused programmes to reduce poverty through empowering the people by increasing their access to factors of production, especially credit. The latent capacity of the poor entrepreneurs would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self-reliant; increase employment opportunities, enhance household income, and create wealth.

However, the lack of required financial support from the microfinance banks to Micro Business operators in Lagos state has become a major concern in Nigeria. Hence, this study shall be relevant to policy makers in the areas of finding out the impact of micro financing on the small scale investors. Also, this study shall enhance further research in the subject area.

1.7 Scope and Limitations of the Study

The scope of the study shall cover micro finance banks and micro business entrepreneurs in Lagos state metropolis. However, owing to shortage of literature and financial data, raw data shall be generated from selected small business operators in Ojo local government area of Lagos state.

TABLE OF CONTENT:

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

1.2     Statement of the Research Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Research Questions

1.6     Research Hypothesis

1.7     Conceptual and Operational Definition

1.8     Assumptions

1.9     Limitations of the Study

CHAPTER TWO

LITERATURE REVIEW

2.1     Sources of Literature

2.2     The Review

2.3     Summary of Literature Review

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Method

3.2     Research Design

3.3     Research Sample

3.4     Measuring Instrument

3.5     Data Collection

3.6     Data Analysis

3.7     Expected Result

CHAPTER FOUR

DATA ANALYSIS AND RESULTS

4.1     Data Analysis

4.2     Results

4.3     Discussion

CHAPTER FIVE

SUMMARY AND RECOMMENDATIONS

5.1     Summary

5.2     Recommendations for Further Study

Bibliography

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: RELEVANCE OF MICROFINANCE INSTITUTIONS IN FINANCING SMALL SCALE ENTERPRISES