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THE ROLE OF CENTRAL BANK IN ESTABLISHING NIGERIA ECONOMY (A CRITICAL REVIEW)

THE ROLE OF CENTRAL BANK IN ESTABLISHING NIGERIA ECONOMY (A CRITICAL REVIEW)

PROPOSAL

 

Central bank is generally known to be concerned with he maintenance of monetary stability.  This task will involves the regulations of money in circulation  consistent with excessive growth is money supply rates  to high

Rates of spending on domestic or foreign goods.

This research will be carried out through oral interviews.  Questionnaires will also be distributed in collecting data and information .  analysis will be done on the data base on the testing and proofing of hypothesis.  Secondary data will also be source by the researcher; and they include journals, magazines, textbooks, periodicals etc.

The researcher as a student will  experience many difficulties  in the cause of collecting data which will include;

  1. The time given is limited for the researcher to collect enough data on time
  2. The responsible officials will not give audience to the researcher.

One of the strategies of achieving this objectives is through the adoption of the liquidity management policies / techniques which afford the CBN the use of monetary policy instrument to influence bank reserve and the growth in  money supply.  Also the government should grant of relief granting of loans for the establishment of industries and importation of raw materials on concessionaire import duties.

ABSTRACT

 

Central banks are general known to be concerned with the maintenance of monetary stability.  This task involves the regulation of money in circulation consistent with the absorphic capacity of the economy axiomatically, excessive growth in money supply rates to high rates of spending on domestic or foreign goods given that domestic supply of goods and services in essentially in elastic in the short run, excess liquidity is likely to result in substantial inflationary is likely to result in substantial inflationary pressures in the economy.  To the extent that spending pressures are directed towards foreign goods or (assets0 balance of payment pressures will ensure.  Thus, the task of monetary authorities is to ensure that the growth in the domestic  liquidity is consistent with the  objectives of out-put growth, inflation and the balance of payments.  This at any given time the CBN would ensure that supply of money is sufficiently optimal to sustain non-inflationary out-put rate and exchange rate stability.

One of the strategies of achieving this objectives is through the adoption of the liquidity management policies / techniques which afford the CBN,  the use of monetary policy instrument to influence bank reserve and consequently the growth in money supply.  The ability of the central bank to effectively control domestic liquidity depends interaction the level of the economic development particularly the state of its financial system the number and types of policy instruments available to the central banks and degree of harmonization between monetary and fiscal policies

CHAPTER ONE

  • Introduction
  • Objective of the study
  • Research questions
  • Statement of hypothesis
  • Statement of problem
  • Significance of study
  • Scope and limitations of the study
  • Definition of terms

CHAPTER TWO

REVIEW OF RELATED LITERATURE

  • Introduction
  • Meaning of central bank
  • The central bank Vs commercial banks
  • The relation of CBN with other banks
  • Central bank of Nigeria and its objectives and functions
  • Monetary policy, meaning, objectives and instruments
  • Fiscal policy, meaning, objectives and instruments used.
  • Stabilization policies, objectives and conflicts,
  • The role of CBN in stabilizing Nigeria economy
  • Problem faced by CBN ins stabilizing Nigeria economy

CHAPTER THREE

RESEARCH DESIGNS AND METHODOLOGY

  • Introduction

3.1     Population

  • Samples selection
  • Description of instruments used in data collection
  • Questionnaire
  • Abstract
  • Personnel interview
  • Questionnaire distribution and control
  • Sources of data
  • Procedure of data Analysis

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

  • Introduction

4.1     Analysis of response to questionnaire

  • Testing and proofing of Hypothesis

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

  • Summary of findings

5.1     Recommendations

  • Conclusions

Questionnaire

Bibliography

 

 


CHAPTER ONE

 

1.1     INTRODUCTION

The growth and development of international trade along West African coast played a major role in extending the medium of exchange beyond trade by barter in the nineteenth century.

The ‘’native currency’’ system which relied on item such as manila, cowries, brass and copper rods   had to accommodate foreign currencies such as Maria Theresa dollar and British silver coins increased trade motivated the setting up of the Bank of British West African [BWA] in 1894, thereby drastically reducing the barter system and ushering in a rudimentary form of commercial banking.

The issue of legal tender currency for the West African region  was however deferred till 1912 when the west African currency Board  [WACB] was established. The WACB was an offshoot of the recommendation of the EMMOE committee set up by the then secretary of state the Rt. Ifon. Lewis Harcourt. The WACB retained the services of the BBWA as its currency distribution agent. It set up four currency centers in Lagos [Nigeria] and Bathurst, now Banjul [the Gambia].  The currency in circulation in West Africa increased steadily through the 1950s in response to the growing demand and increase in the World price for West African primary products such as cocoa, groundnuts and palm oil.

The WACB, however, did not have discretionary control over the money stock of the territories under the money stock of the territories under its sphere of influence. It was set up primarily to promote the influencing of export trade. Specifically, it was changed with the issue of a West African currency, the repatriation of such currencies and the investment of reserves. There was a fixed parity between the local currency and the British pound while the currency had 100 percent sterling banking. The   reserves   were   invested in British   and this way facilitated Nigeria’s international   payment.  As the WACB was automatically linked   to the British system, the investment policy   was   rather conservative in   the   sense that   sterling reserves were invested only   in   Britain.   Moreover, the   WEACB   could   not engage   in   monetary   management, neither   were Nigeria’s   trained   in   the   art.   In   order to eliminate   this   deficiency   and promote    the   growth   of the   domestic    money   and   capital   markets, especially   as    the   country   marched    toward   political    independence   in    1960, the CBN was   established   by   the   central   Bank Of   Nigeria   Act of   1958.

The bank   commenced   business   on   1st July   1959    with   an   initial   capital equivalent to   N30 million.  The    legal   framework of   the central   bank   has been   strengthened    over    time   to   address   lapses   in   financial   system prior to   the    enactment   of 1958   central   Bank   act   the   banking   system   in    Nigeria   was largely unregulated. Initial attempt   in   1952   at streamlining    the   practice   to   banking    to ensure monetary   stability through    the   enactment   of    the   banking ordinance     did   not   quite address   the   problem. The   spate of    bank failures could   not   be stemmed, thus the central   Bank   Act   of    1958    was   enacted to   formally establish   a   central   monetary   authority   that   would   perform   the    traditional   roles   of   a     central     bank. The   1969   Banking   Act   and its amendment, which   defined   the   business    of    banking    and    stipulated   penalties   for   banking   malpractice   further   strengthened      legal    framework.

To      further     strengthen    the   supervisory     capacity   of    the   bank, the    central   bank of     Nigeria decree   No. 24 and   Bank and   other   financial, Institutions  [Bofi] Decree N.25 of 1991 were promulgated.  The Bofi Decree among other provisions centralize the    functions   of   licensing as well   as   regulation of    banks   and   other   financial   institution in    the bank.

The     current   legal   framework within   which    the   CBN    operates    in   the   central   Bank growth in economics development is one of the many problems facing the Nigerian economy through these problems manifesting themselves   in most   developing countries and    yet   this   gets   worsened with   the   military rule, Nigeria   is a typical   area   in point. Hence the   essence of this research is to examine   the   topic ‘‘THE ROLE OF CBN IN    STABIBILISING   NIGERIA ECONOMY’.

 

1.2       OBJECTIVE     OF   THE    STUDY.

The   objective of this study shall be;

To ascertain why the CBN is yet to stabilize the Nigeria economy with instrument (s) of monetary and fiscal policies with their objectives and role they play in the stabilization of the economy.  Also the study shall also look at why the economy of Nigeria needs to stabilize and problems facing CBN in stabilizing Nigeria economy and to make recommendations where necessary

 

1.3     RESEARCH QUESTION

a    Why is it that our economy is yet to developed

  1. Does the establishment of CBN help in stabilizing Nigeria economy.
  2. Does monetary

 

 

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

MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

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

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

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

Enter Amount

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

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

THE ROLE OF CENTRAL BANK OF NIGERIA IN EFFECTING THE STABILIZATION MEASURE IN THE ECONOMY

THE ROLE OF CENTRAL BANK OF NIGERIA IN EFFECTING THE STABILIZATION MEASURE IN THE ECONOMY

CHAPTER ONE

1.1   Introduction

1.2   Statement of Problem

1.3   Hypothesis Statement

1.4   Objective of the Study

1.5   Limitation of the Study

1.6   Definition of Terms

CHAPTER TWO

Literature Review

  • Definition of Central Bank
  • The Function of Central Bank
  • The Role of Central Bank in the Stabilization of the Economy
  • Exchange Rate Policy
  • Foreign Exchange Management
  • Debt Rescheduling and Conversion
  • Monetary Policy

CHAPTER THREE

3.1       Research Methodology

3.2       Sources of Data

3.3       Sample of Data

3.4       Data Analysis Method

CHAPTER FOUR

  • Detailed Analysis of Data

CHAPTER FIVE

5.1       Findings, Conclusion and Suggestions

  • Bibliography
  1. Texts
  2. Journal
    • Appendix
  3. Questionnaires

 

CHAPTER ONE

INTRODUCTION

During the period of oil boom, price of oil were high and Nigeria, being an oil producing and exporting country, reaped benefits from this.  However, it did not last for ever and also had disadvantageous effects on the country economy.

Due to the boom and many inappropriate policies introduced by government to guide the economy, distortion were introduced into the vulnerable to external stocks.

The oil boom of 1970’s brought fundamental changes in the patterns of the Nigeria economy.

First the oil boom resulted in heavy dependence of economy on crude petroleum export as the main sources of foreign exchange earnings and government revenue.

By 1980, and oil sector which accoutered for 22 percent o the gross domestic product (G.D.P) provided about 80 percent of government revenue and over 96 percent export earnings.

Secondly, the competitiveness of the agricultural sector in the international market was ended by the over valued naira exchange rate.  People turned collar jobs in offices.

This resulted to low productivity in the agricultural sector, which became so acute that Nigerian became heavily dependent on imported goods and agro allied individual inputs.

At that time, it was almost unbelievable that product like rice grow in Nigeria because almost every used imported product in their homes.

Infact using “made in Nigeria” product at times was a         sign of lack of exposure.

Exporter at that time, were compelled to surrender foreign exchange receipts to authorize dealers and because of the over valued Naira exchange rate, the official equivalent of the foreign exchange receipts often fell short of the cost of non oil exports.

However, the world oil market started  to collapse in mid 1981 and with this collapse, the economic crisis which was quite fierce gripped the country, though its magnitude and duration could not easily be measured or appreciated a the time.

This collapse together with the ineffective, adequate, inappropriate and indeed, sometimes, not well reasoned policies guiding the economy at that time led very serious economic collapse.  Throughout the early 1980’s the structural imbalance in the economy increased rapidly which resulted in persistent balance of payments deficits, rising external debts and in sustainable debt burden, currency over valuation declining production and of course, rising prices which have been the most evident even to the illiterate.  These problems in Nigeria were not made better by the developed countries who adopted protectionist policies for their economics.

The drought of 1983 brought with it poor harvest which was also a contributory factor to the inflation in prices. As this economic crises deepened, internal and external debts mounted rapidly and the inability to pay these debts increased rapidly and the inability to pay these debts increased just as rapidly.

The situation could just not go on.  The Nigerian Government then started to make efforts to find lasting, not short term, solutions to these problem which threatened to destroy an economy which had a lost of prospects once.  This led to the adoption of several monetary and credit policy measures in 1981 which were designed to provide an optimum level of bank credit and to channel such credit into the mere productive and small scale enterprises, which were sectors of the economy, as a means of raising the level of employment and output of goods and services.  They were also aimed at   reducing further the rate of price inflation and maintaining a healthy of balance of payment position.

However, these policy objective, were not achieved – a healthy balance of payments position was clearing not achieved.  Infact, it surveying from a substantial surplus in 1980 to huge deficit 1981 as result of a sharp decline of the country’s revenue from the oil sector.  There was ineffectiveness of import regulatory measures and therefore foreign expenditure increased greatly.

This led to the adoption of the import licensing programme in 1984. Under this programme, all imports were placed under specific import licensing as to reduce the volume of imported goods and as a result reduce external debt.  In 1985, the Federal Government declared a fifteen month economic emergency period during which specified proportions of worker’s salaries and wages, as well as companies. Profits were compulsory paid to the government.

These two programmes above were not efficiently restructuring the economy.  They had good effects on only some aspects of the economy.  This brought about more detailed search for more lasting solution to the economy’s problems.  As a result of this the Federal Government introduced the structural adjustment programme (SAP) in July, 1986.

As all other programme before the structural adjustment programme have not been effective in clearing the distortions in the economy.  This project will discuss this particular stabilization measure in greater detailed, more positively directed and is still in use in the economy of Nigeria today.

This project reviews the stabilization measures which have been introduced for balancing and improving the Nigeria economy from 1985 till date and examine the role of the Central Bank in implementing these measures.

The direct role of the Central Bank in the structural adjustment programme was programmed to include the design the implementation of the modalities for exchange rate policy, foreign exchange management, external debt management monetary and credit control and domestic monetary policy reforms.

The Central Bank also offers advice to the Federal Government in areas such as fiscal, external trade and other public sector policies.

In implementating and designing the modalities for the exchange rate policy, the Central Bank calls for bills daily from authorized dealers for available foreign exchange. Foreign exchange is sold to successful bidders, in effecting foreign exchange management, the Central Bank of Nigeria took measures to encourage the inflow of funds into foreign exchange market (FEM) from non-official sources.

The Central Bank in collaboration with the Federal Ministry of Finance also plays a role in the management of external debt, especially with respect to reducing the burden and volume (stock) of debt through debt rescheduling and debt conversion.  The policy of the economy is also formulated by the Central Bank of Nigeria to support the government strategies.

The main sources of authority for the administration of foreign exchange transitions in Nigeria is the exchange control Act 1962.  Under provision of this Act, authority for the grant of approvals in respect of foreign exchange transactions is vested in the Minister of Finance.  However, most of the functions in respect of private sector transactions, visible importer, education, medical, expatriate home remittances, travel, airline payments, other services etc. have been delegated to the Central Bank of Nigeria, which in turn has delegated approving authority for all but a few of these to the authorized dealers on foreign exchange.

 

  • STATEMENT OF PROBLEM

Due to the apparent and seemingly increasing distortions in the economy, such as the constant decrease in the value and purchasing power of the Naira rising price obvious loopholes in the management of foreign reserve and infact the impact of the structural adjustment programme on the masses people in Nigeria have resorted to the opinion that the Central Bank of Nigeria has not been and is not playing its role I the stabilization of the economy effectively.  A lay man who is not aware of the Central Banking system will also not be aware of the degree to which the Central Bank of Nigeria plays its role and this is a problem for the Central Bank even through the people who have this opinion are not to be blamed for it due to the lack of adequate communication between the Bank and Public.

 

  • HYPOTHESIS STATEMENT

This study will test the following hypothesis:

Main Hypothesis:     The central Bank of Nigeria is effectively playing its role in the stabilization of the economy.

The following question will guide the researcher in data collection process.

  1. What is the main function of the Central Bank?
  2. In the CBN actively involved in the development and growth of the economy?
  3. Does the Central Bank of Nigeria have anything to do with the management of money and capital market?
  4. Does the central Bank of Nigeria play a role in the debt rescheduling the debt conversion programmes?
  5. Does the Central Bank of Nigeria play a major role in the formulating and implementation of the        monetary policy?

 

 

 

  • OBJECTIVES OF STUDY

This project is aimed at educating Nigeria on the success of the stabilization measures introduced in the economy and to show the role played by the Central Bank of Nigeria.  This topic was selected by the author due to the appalling ignorance displayed by studies and a lot of the Nigerian citizen and infact, professionals in various fields including the business profession.

 

  • LIMITATION ON SCOPE OF STUDY

Due to the detailed nature of this subject, it will not be possible to write everything concerning the stabilization measures introduced by the government.

It would have been preferred to link the oil boom period     in detailed with the structural adjustment programme (SAP) period.

I will also scarified educating people on the effectiveness of all these measures and on possible alternatives which could be adopted by the government to help reduce the advance effects of these measures on the populace.

  • DEFINITION OF TERMS

Balance of Payment Deficit:  This occurs when the amount on the statement of total payment of foreign countries for imports, outflow of capital, and gold is more than the amount stated in the statement for total receipts from foreign countries for export, outflow of capital and gold.

Economy: A system for the management control and use of resource – money, goods and other resources of a community.

Economy Crisis:  Occurs when the economy of a country is facing a difficult time and is in danger with regards to the future.

Exchange Control:  The system of protecting gold and reserve of foreign currency.

Exchange Rate:  The relation in value between kinds of money used in different countries.

Foreign Exchange:  The foreign equivalent for an amount of money of a country.

 

Monetary Policy:  A measure design to regulate and control the volume, cost and direction of money and credit in the economy of a country.

Policy:  A plan of action especially one made by a government political partly etc.

Stabilization Measures:  Steps taken to correct the imbalance in the economy of a country when distortions are detected.

Download our android mobile app for more materials

ORDER NOW

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

MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

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

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

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

Enter Amount

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

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

THE ROLE OF COMMERCIAL BANK IN FINANCING SMALL SCALE INDUSTRIES (CASE STUDY OF UNION BANK PLC. ENUGU)

THE ROLE OF COMMERCIAL BANK IN FINANCING SMALL SCALE INDUSTRIES (CASE STUDY OF UNION BANK PLC. ENUGU)

ABSTRACT

It is to review what essentially constitutes small scale industries for an adequate discussion of the issue involved:- financing of small scale industries by the commercial banks. Often, there is no single criticism for classification of business unit as small scale.  The central Bank of Nigeria for example defines small scale enterprises as any enterprise whose annual turnover is less than (N 500,000) five hundred thousand Naira as small scale.

Furthermore the National Directorate of employment (NDE)defines it to include projects with capital investment of below five thousand Naira (N500) and a staff strength of three (3) persons. While the centre for management Development (CMD) gave the definition of small scale industry in the policy proposal it submitted to the federal Government in June 1982 as follow; “A small scale industry in a factory or production type of operations, employing up to fifty (50) full time workers. Investment in plant and machinery but excluding land and building shall not exceed five hundred thousand (N500,000) Naira power, plant and machinery are utilized its operations.

In a nutshell, a small- scale industries are classified in the following criterion; initial capital outlay, ownership structure, initial capital outlay, ownership structure, management style, profit level market share, number of employees and total assert size etc.

The objective of this project work will include the extent to which small scale industries in Nigeria have been able to obtain loans and advances from Nigeria commercial banks as a major source of finance to the economy and many others.

The project was carried out by using Union Bank PLC, Okpara Avenue, Enugu as a case study.

CHAPTER ONE

  • Background of study
  • Statement of Study
  • Objective of the study
  • Scope and limitation
  • Research questions
  • Hypothesis
  • Significances
  • Definition of terms

CHAPTER TWO

  • Introduction
  • Meaning of small scale industries
  • Government policy
    • Projection and promotion
    • Monetary and Fiscal policies adopted by government
    • Effects of Government Polices on small scale industries
  • Financing
  • Problems facing the small scale industrialists
  • Improving funding to small scale industries

CHAPTER THREE

  • Methodology

3.1     Research design

  • Area of the study
  • Population of the study
  • Sample and sampling procedure
  • Instrument for data collection
  • Validity of the research instrument
  • Reliability of the research
  • Method of administration of research instrument
  • Method of data analysis

CHAPTER FOUR

  • Data presentation and results
  • Testing Hypothesis

CHAPTER FIVE

5.1     Summary of Finding

  • Recommendation
  • Conclusion
  • Bibliography

CHAPTER ONE

 

INTRODUCTION

  • BACKGROUND OF STUDY

The concept of self-reliance has occupied a place in the literature of economic development over the years, basically as a manifestation of the various attempts by the developing world to state new economic strategies, which world relieve them form economic dependence of their fromer colonial masters in Europe. Today, some years after, the concepts of self reliance continues to be misunderstood in its fundamental ramifications and has remained elusive in large sections of the developing world.

In Nigeria in particularly, neither the mixed economy approach to development nor the capitalist approach appears to have respond to the dictates of economic self reliance.

Consequently, in pursuit of self reliance in the developing world particularly in Nigeria, the central government, enacted a decree called ‘Enterprises promotion Decree, when there was need for small scale enterprises owned ad managed by Nigerians to be promoted.

The importance of small-scale enterprises in the promotion of economic development has always been at the forefront of development strategies.

However, many developing countries have failed to adopt this strategy owing to their belief that it is a relatively slow process of industrialization. But in the recent times, due to the scarcity of foreign exchange that attention began to be focused once again on development of indigenous that will be local resource based.

Without the development of small-scale industries in Nigeria, that nation’s quest for industrialization will certainly remain forever at a stake.  It is the humble opinion of the researcher that future  developments in our industrialization must address the basic issue of creating linkages within the economy to begin to produce real inputs to our manufacturing activities.

Priority attention must therefore be given to these industries for which domestic inputs could easily be produced. This automatically brings to mind the Agro-Allied industries like food processing and other by products objective should be to maximize the value added in their processing and manufacturing as final goods or immediate inputs.

Empirical evidence indicates that strong incentives should be given to small scale industrialist to enable them meet the food requirement and also to promote for sustained industrial growth.  For instance, the market determined exchange rate through SFEM with its resultant high cost of imported inputs might serve as an impetus fro industrialist to intensify their search for local substitutes.

In 1971, the government of the then East central state statutory enacted an edict establishing on office which was hither to a sub-system of the ministry of commerce ad industry to be known as fund for small scale industry credit scheme (FUSI) to give credits for prospective investors to enable them establish their business in a bid to moving the country towards industrialization.

As at march 9th 1992, loans approved for small scale projects in Enugu State by Nigerian Bank for commerce and industry (NBCI) amounted to N13,345.40.

Similarly, in the circular on small scale and medium enterprises loan scheme released by central Bank of Nigeria in February, 1989, it was reveal that world bank has granted a loan of U.S. $270 million to the federal government for the development of small scale and medium scale enterprises in the private sector.

However, the very slow rate of growth of the industrial sector, the inability of the sector to adequately provide and satisfy the need of the economy, the over dependence of the industrial sector as well as the nation at large on foreign goods, praised a necessary cause for concern.

The means of helping small-scale industries to acquire the much-needed finance for growth and development especially form the banking industry from the background of this research study.

 

  • STATEMENT OF PROBLEM

Small-scale industry like any other business cannot be carried on extensively unless funds are available for maintenance and procurement of equipment and necessary inputs.

Three types of credit are usually required: short-term credit: this type of credit is used to yearly operation until the products or proceeds form the industry are sold: the amount involved s usually small but lock this type of credit is most accurately felt by small scale industrialists who have little or no savings with which to draw.

Medium – Term Loan: This type of loan is for more than one-year maturity period by not exceeding three to five years. This is mostly required for acquisition of inexpensive equipment with relatively short life span.

Long-term Loan:          This type of credit is necessary for acquisition of major industrial machines, improvement on industrial equipment building and land. Small scale industrial credit therefore can be a powerful instrument in bringing about a revolution in industrial practices and in firms productivity especially if supplied is sufficient quantity and used efficiently.

It is well known that the development of small scale industries and attainment of self reliance in industrials production coupled with the provision of raw materials for other industries is among the top priorities of the successive government in the country.

Furthermore, the continuous escalation of Nigeria’s import bill and unemployment are a threat to the country. It is therefore necessary for all to put heads together to formulate a meaningful policy that will stimulate a positive take off of our small scale industrial sector such ideals, this work therefore, aims to put across at the end.

The study therefore, identifies small scale industrial financing by Union Bank Enugu, Nigeria PLc as part of the wider subject of industrial development because finance is just one of the factors of production.

 

  • OBJECTIVE OF THE STUDY

The objective of the study includes

  1. To evaluate the extent to which small scale industries in Nigeria have been able to obtain loans and advances from Nigeria commercial banks as a major sources of finance in the economy.
  2. To examine how commercial banks in Nigeria assist the government in promoting the small industries.
  3. To know the stage of small scale industrial development and what ought to be done to reduce the problems facing the sector.
  4. To ascertain the extent to which the commercial banks have helped to finance small scale industries and problems hindering such
  5. To identify the problems encountered by the small scale industrialists in obtaining funds from the commercial banks.
  6. To evaluate various measures introduced to boost industrial production and its financing and how this have affected the industrialization of the set goals.
  7. To determine the cause of variability in small scale industrial financing by commercial banks

 

  • SCOPE AND LIMITATION OF THE STUDY

The study focused attention on the evaluation of small-scale industries obtaining loans form Union Bank PLC, Enugu.  The research also covers selected small scale business in Enugu.

 

LIMITATIONS:

The researcher encountered the following limitations or rather limiting factors in the process of giving this work a defiled treatment;

Money: The availability of money is to take care of financial angle involving, the collection of data and the printing, was not regular.  However, with a lot of dedication, the study was successfully completed.

Time: Due to the work involved in classes, it was not easy to squeeze out time to adequately complete the project and as a result the project took longer time than necessary.

Availability of Materials: I also had problems with the bank official because they were not willing to disclose some reserved information about their dealing with their customers. The researcher had to travel to various places in the quest to collect material for the study. There was very expensive both in time and in money especially.

 

  • RESEARCH QUESTIONS
  1. Do the financing of small-scale industries by commercial banks boost the production capacity of small-scale industries.
  2. To what extent do the Banking industries channel their investment to the small industries.

iii.      Do the capacity Utilization of our small to produce more and thereby reducing the demand for foreign goods.

  1. Must small scale Business be financed by commercial banks alone
  2. What can be the hindrance to the commercial banks financing small scale industries.

 

  • HYPOTHESIS

Ho:     The Union Bank of Nigeria PLC, Enugu Lending to small scale industries are affected by the attitude of their customers and other influences.

H1:     The Union Bank of Nigeria PLC, Enugu Lending to small scale industries are not affected by the attitude of their customers and other influences.

Ho:     The role of commercial Bank is to increase the productivity of the small-scale industries.

H1:     Commercial Banks have nothing to do with increased productivity of the small scale industries

Remember:

Ho:     Represents null hypothesis

H1:     Represents Alternate hypothesis

 

  • SIGNIFICANCES OF THE STUDY

The development of small scale industries and self reliance in industrial and food production, coupled with the provision of raw materials for other industries is among the priorities of the Nigerian Government in the successive development plans.

Against these backgrounds, the review of the financial problems facing small-scale industries is essential.  An examination of union bank of Nigeria PLC Enugu performance in financing small scale industries will enable us find a large extent why there has been a decline in industrial output in recent years.

 

This study to a every large extent help;

  1. Boost the production capacity of small scale Agricultural and allied industries.
  2. Emphasize the need for re-allocation of our resources to the more productive sectors f the economy.

 

  • DEFINITION OF TERMS:

Small Scale Industries: the Central Bank of Nigeria defines this for monetary purposes in terms of their annual turnover which is not more than five hundred thousand Naira (N500.000).

LOAN: A sum of money unit at an interest.

LONG TERM CREDIT: This type of credit is more than three years maturity. It is used to invest in long-term project.

MEDIUM TERM CREDIT: This type of credit is more than one year maturity but not exceeding three years.

SHORT TERM CREDIT: This has a very short life span. It last for months and should be matured for repayment in less than one year period of a time.

ROLE: An actor’s part in a play, person task or duty, in an undertaking.

BANK:  An established for keeping money and valuables safely, the money is being paid out on the customers order (by means of cheque or cash)

EFFICIENT:  Producing satisfactory result

COMMERCIAL BANKS:- This is the financial intermediary that collects money customers of the general public for safe keeping on their various accounts and make them available when required.  It offers loan at an interest to the customers and also provides the required security.

MORATORIUM:         Temporary agreed ban on an activity

GRAPPLING:     Hold firmly, seize.

 

REFERENCES

Oxford Advance Learner’s Dictionary of

 

Perry F.E. 1982 Elements of Banking Fourth Edition

 

Okonkwo O. Elements of Banking and Economics

 

Nnenna B. Ani 1991 Entrepreneurial Development first                    Edition

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

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

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THE ROLE OF EQUIPMENT LEASING IN CAPITAL MOBILIZATION AND ACQUISITION TO LESSEES AS WELL AS TO LESSORS

THE ROLE OF EQUIPMENT LEASING IN CAPITAL MOBILIZATION AND ACQUISITION TO LESSEES AS WELL AS TO LESSORS

CHAPTER ONE

1.1     Background of study

1.2     Statement of the problem

1.3     Objectives of study

1.4     Significance of the study

1.5     Hypothesis

1.6     Scope and Limitation of the study

Reference

CHAPTER TWO

2.0     REVIEW OF RELATED LITERATURE

2.1     Nigeria leasing Industry

2.2i    Banks as Lessors

2.2ii   Merchant Banks

2.2iii  Commercial Banks

2.2iv Other finance Companies

2.2v   Other Lessors

2.3     Types of Lease Contracts

2.4     The leasing transaction

2.5     Management of Leasing

2.6     Tax implications of leasing

2.7     Evaluation of a leasing

2.8     Lease V.S Buy decision

2.9     Who lease and what can be leased

2.10   Advantages and disadvantages of equipment leasing

2.11   Insurance for leases contracts

Reference

CHAPTER THREE: RESEARCH DESING AND METHODOLOGY

3.1     Outline of chapter

3.2     Sources of data

3.3     Primary data

3.4     Secondary data

3.5     Population of study

3.6     Sample size

3.7     Data collection system

CHAPTER FOUR

4.0     Presentations, Analysis and Interpretation of Dats

4.1     choice of capital Acquisition through equipment leasing

4.2     Degree of awareness

4.3     Interpretation of analysis

Reference

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMENDATIONS

5.1     Summary

  • Recommendation
  • Conclusion

APPENDIX “A’

APPENDIX “B”

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF STUDY

Investment proposals and decisions by business entities and individuals could evolve due to certain reasons.

These include decisions concerning the following;

(a)     New products or expansion of existing product

(b)     Replacement of equipments or building

(c)      Exploration and others

These decision involve huge capital expenditure on capital investments. Therefore, for any of them to be meaningful there must be decisions on the sources of such huge capital fund

In Nigeria apart from privately or personally financed investment projects, various other identifiable sources of finance exist. These include retained earnings (internal sources) Launding / donaton banking and non – bank financial institutions etc.

Funds obtained from financial and non – bank financial institutions could be in the form of loans and overdrafts. These be used for outright purchases of the needed capital investment, machineries and equipment or as working capital, where funds are not readily available for outright purchases, or where there is need to save the available funds for investments in more profitable assets / ventures, or for other reasons, other alternative means such as leasing could be employed.

According to the Advance Learners Dictionary of current English, leasing is:

A contract or agreement by which one person the lessor, aggress to allow another the lessees, the use of land and building for a certain period of time usually in return for money payment called rent.

This definition tends to infer that only Land and building are Leasable. This is untrue as many other things can be leased. In the words of Okeke, J.R. one gets the land building but recent events have proved in the business world at large the philosophy of leasing has been extended to other categories of fixed assets.

Equipment leasing can also be defined as a contract between a lessor and a lessee for the live of a specific asset select from a manufacturer or vendor such an asset by the lessee. The lessor retains ownership of the asset. The lessee has possession and use of the asset on payment of specific rentals over a period

Leasing there, occurs when a person or entity obtains the use of an asset without acquiring ownership. Ownership remains with the lessor, the lessee has a contractual relationship with the agreement to pay a specified rental fee for the use of the assets.

Many people see equipment leasing as being the same as other forms of installment payments including hire purchase. This is not correct. Hire purchase is:

A contract of hire paid by installments under which the hirer may become the owner of the goods if he completes payment of hire purchase.

In hire purchase therefore, ownership remains with hirer on use, while in equipment leasing, ownership is divorced from the user or lessee.

Leasing has a rich and Lengthy history. The earliest records are those of transactions occurring some time before 200 B.C in the ancient Sumerian city of our, and according to the lease documents as found in the clay tablets in 184 showed recorded transactions to have ranged from leases for agricultural tools. Land and water rights, to oxen and other animals

In Nigeria, the first recorded equipment leasing activity occurred during the early 1960’s when equipment leased to the Nigerian lessees by off – shore united kingdom leasing companies. Since the, the rate of growth of equipment leasing activities has been at a snail – slow speed until recently.

The reason for this unimpressive growth could be due to:

Lack of awareness

The exclusive preserve of the business to a particular group of financial institutions (merchant bankers) by the banking (amendment) Act. 1979 until recently,

The existing regulatory control on interest rates and the foreign exchange regime;

Ownership factor was being rated above the availability of use of assets;

Little or no interest shown in investment and manufacturing by our business man and other investors.

However, the economic reforms and programmes as pursued by federal military government are yielding some dividends.

Emphasis has shifted from the time hionoured import and / or backward integration. This, therefore, accounts for the  increase in investments in the manufacturing sector of he economy, and the corresponding increase in the demand for machines and equipment through asset financing methods.

Unfortunately, there has been this problem of capital inadequacy.

This could be due to: the high interest rates associated with bank Loans in general, non – availability of foreign exchange for the importation of the required machineries and equipment and even when the foreign exchange is available, high exchange rate militates against its affordability by the investing public

To alleviate these problems, grater awareness in leasing as an alternative means of obtaining and suing the needed nearly equipments and machines for operations without outright purchase or cash outflow is being pursued for example on June 29th, 1983, six Nigeria Merchant bank formed the equipment leasing association of Nigeria (ELAND) which has its objectives.

The promotion and protection of interest of members of the association in the exercise of their business as equipment lessors membership of this Association of lessors was deregulated. For example, according to the central Bank of Nigeria (CBN) monetary, policy Guide line for 1990 fiscal year, commercial banks can now engage in the equipment leasing business.

 

1.2     STATEMENT OF THE PROBLEM

Nigeria as a developing nation has ample opportunities for investment in new project more than ever before. The deregulation of the economy brought in its wake a myriad of economics reforms such as the structural Adjustment programme (SAP) of 1986 and the establishment of such government agency like the natural economic reconstruction fund (NERFUND) in addition to equipment leasing in the 1990 National Budget, all in a bid to make fund available to investors.

However, there has been constraints towards the realization of the objectives for which equipment leasing was introduced in Nigeria as a means of asset financing. These constraints arose from the lack of awareness of what equipment leasing is all about and the impression given by government initially that the business is restricted to a particular segment of Nigerians. The merchant bankers by the banking (Amendment) Act. 1979. When in the 1990 National Budget the scope was widened to include the commercial banks, this later group was impeded by the credit ceiling constraint which was retained at its 1989 level of 13.2% although it was further expanded in the 1992 budget from 13.2% to 16.0 % and since then it has enjoyed considerable increase till data.

Also to be considered along with the above are such other military factors as death of sufficient lessors to make significant impact in the economy and the difficulty of denitrifying them. Every equipment for such leases was invariably imported with very foreign exchange content and high rate of exchange as very few of such equipment were locally fabricated. Also imported are the raw materials, spare parts and technical expertise. Other factors include the case with which the Nigerian businessmen could access other types of financial alternatives as well as the regulatory control on interest rates and the foreign exchange regine. This was also the acuts scarcity of Loan able finds in the economy and the high cost of available finds.

The big question now is – should we shun the present efforts of the federal Government to increase the tampo of investment and local manufacturing in favour of our times honoured distributive trade? If the answer is No, what should then be done.

In the researcher’s opinion, an alternative means of assets financing should no only be sought but also encouraged to grow. This is where equipment leasing comes to mind and very hardy as a means of asset financing.

Having identified this, other questions such as here under may naturally arise.

Has the Nigeria investor accepted equipment leasing as a way out in the face of the scarcity of loanable fund?

What are the advantages and disadvantages of Leasing to all parties concerned?

Has equipment leasing come of age an alternative/competitive source of capital saving / assets financing in Nigeria?

 

1.3     OBJECTIVES OF STUDY

This study is aimed at achieving the following:

Creating greater awareness in the role of equipment leasing in capital mobilization and acquisition to lessees as well as to lessors.

Making people to know that equipment leasing a more profitable means of assets financing them the other known traditional sources of capital  formation.

Making investors to prefer equipment leasing as their choice for assets financing.

 

1.4     SIGNIFICANCE OF THE STUDY

Few studies have been carried out an equipment leasing and none has actually focuses its attention on whether or not it has taken its rightful place as a means of assets financing in the face of high cost and for scarcity of Loanable finds, scarcity of foreign exchange and the Unmitigated high exchange rate of the naira.

It is important, therefore, that the researcher appraises the role of equipment leasing as a means of debt financing which provides for the effective acquisition of assets. The appraisal will be Largely done by a careful study of the amount of volume of funds committed towards equipment leasing over the years by a sample of lessors as contained in the records of equipment leasing association of Nigeria (ELAND)

Furthermore, the appraisal will focus on and unfold all hither to dormant aspect, advantages of equipment leasing in asset financing.

This will go a long way in creating greater awareness on equipment leasing in asset financing.

The investing public most of whom are ignorant about equipment leasing its roles in asset or debt financing without outright commitment of cash.

The lessors who will now know how best to package and market their product on equipment leasing.

The lessees who will now know where and how to finance outlay on their required machines and equipment.

The scholars and other researcher who might want to conduct further researcher into other aspects of equipment leasing. In total, the general public will no doubt benefit immensely because the long – term effect of achieving the above enumerated will, be a chain reaction leading to industrial development, increase Locally manufactured goods and services, reduction in Unemployment and inflation and other advantages accruing to a development economy.

 

1.5     HYPOTHESIS

To achieve the objectives of the study, the following hypothesis are made:

  1. Equipment leasing is a means of asset financing in Nigeria
  2. The role of equipment leasing in asset financing is receiving encouragement as well as patronage from prospective Nigeria investors.
  3. Lack of highly trained personnel on equipment leasing does not affect the efficient management of equipment leasing in Nigeria.
  4. The foreign exchange regine by the central Bank of Nigeria did not affect adversely equipment leasing business in Nigeria.
    • SCOPE AND LIMITATION OF THE STUDY

With the recent growing emphasis on the role of equipment leasing as tool for asset financing. It becomes pertinent that the extent to which this has been achieved can be appraised. Because of averseness of the topic equipment leasing as a tool for asset financing. The researcher will restrict herself or focused on creating awareness on equipment leasing asset financing with a case study of ministry of agriculture.

In the process of carrying out this research work on asset financing, concrete efforts were made to arrive at logical conclusion.

However, the work was subject to certain limitations

  1. TIME: The time for the study is so short and it is not really easy to combine class academic work and a fieldwork. It is carried under time constraints, which has minimized the extent to which this types of research work held has been carried to a more meaningful conclusion.
  2. Lack of availability of statistical data also pose it own problem, even when the data is available it will relate to out date information.
  3. Financial constraint is another limitation to this work, which is as a result of high cost of transportation fare to various library to gather data, cost of material to carry this work to a conclusive standard was equally exorbitant.

REFERENCES

  1. Van Horue J.C. Financial management and policy prentice

Hall international Inc. Englewood Chiffs.

N.J U.S.A.1974 P.103

  1. Hor by A.S. Oxford Advanced Learner’s Dictionary Oxford

Unvisited press London 1972 P.487

  1. Upper J.K Asset financing Hawkers publishers Limited

28florence Road New cross England 1976 P. 43

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MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

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

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

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

Enter Amount

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

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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THE ROLE OF FINANCIAL MANAGEMENT A CORPORATE ORGNAISATION A CASE STUDY OF NICON INSURANCE COMPANY LIMITED ENUGU, ENUGU STATE

THE ROLE OF FINANCIAL MANAGEMENT A CORPORATE ORGANIZATIONAL

A CASE STUDY OF NICON INSURANCE COMPANY LIMITED ENUGU, ENUGU STATE

ABSTRACT

 

          This project is poised to x= raying the degree of “the role of financial management in a corporate organization”.  The main aim of every business is profit maximization.  Care must therefore be taken to ensure that available finance for a business is well managed. This role is left in the hands of financial manager.

In conducting the research on this topic, the researcher wishes to visit the Enugu office of the NICON insurance corporation NICON PLC and administer questionnaire to the Zonal Director and other top ranked workers in the corporation in a bid to collect proper information.  It is purely on oral interview, after which critical analysis of data follows.

Regrettably certain factors will tend to limit research for this information.  Resources are scarce to meet up with transportation expenses to various part of the country for information.  Lectures will be going on in the class, making it impossible for the researcher to go out every time.

In conclusion, the researcher will suggest that corporate organizations in Nigeria will be compared to those in advanced countries if the finance available to them are managed well.

CHAPTER ONE
  • Introduction

1.1     Background of the study

  • Statement of problem
  • Objective of the study
  • Research Hypothesis
  • Scope and limitation of the study
  • Definition of terms

References

CHAPTER TWO
  • Literature review

2.1     General review

  • Financial ratio and profit planning
  • Current Assets Management
  • Break even analysis of a firm
  • Forecasting future needs for funds
  • Budgeting and investment analysis
  • Managing the financial structure

References.

 

CHAPTER THREE
  • Research Design and methodology

3.1     research design

  • Sources of Data collection,
  • Population and sample size
  • Methods of investigation

 

CHAPTER FOUR

  • Presentations, analysis and interpretation of data

4.1     Analysis of Data

  • Hypothesis Testing

 

CHAPTER FIVE
  • Summary of findings, conclusion and Recommendation

5.1     Summary of findings

  • Conclusions
  • Recommendations

Bibliography

Appendix

 


CHAPTER ONE

 

 

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Financial management involves all activities of a financial manager concerned with arising of capital, planning cash and credit requirement including the effective control of financial resource.

The activities could be segregated as follows:

  1. Converting forecasts into plans and budgets
  2. Planning the appropriate capital structure
  • Raising cash from outside the business
  1. Forecasting the future availability of and requirement of cash
  2. Investing surplus finds
  3. Controlling cash balances and flows in accordance with plans and

with changing circumstances.

With the emergence of finance as a separate field of study the emphases was more or less on legal matter such as mergers formation of new company’s disposal and consolidation.

With most vital problem of the firm was identification of means of raising capital for possible expansion due to increasing ware in industrialization, the mobility of funds from area of surplus to are of scarcity pose a lot of problems.

In the 1930s the stock of depression ushered in an era of conservation, and attention shifter to such topics as preservation of capital, maintenance of liquidity, reorganization of financially troubled corporations, and the bankruptcy process the federal government assumed a much larger role in regulating business.

In 1940s and early 1950s offered little new in the study or produce of corporate finance.  However, in the mid- 50s a major shift in emphasis took place.  Up to that time, the study of finance had been descriptive o definitional in nature.

Furthermore, the orientation had been from the viewpoint of a third partly, or outside looking in the all changed in the mid-50s as a more analytical decision oriented approach began to evolve.

The first area of study to generate the new found enthusiasm for decision related analysis  was capital budgeting, in which the financial manager was presented with analytical techniques for allocating resources among the various assets of the firm the enthusiasms spread to other decision making areas of the firm such as cash and inventory management, capital structure formulation, and dividend and policy. The emphasis shifted from that of the outside looking in to that of the financial manger force to make tough day to-decision affecting the performance of firm.

Form the late 1960s through todays; financial management has focus on risk-return relationship and the maximization of return for a given level of risk.

Another area of financial research that also receiving more attention in early 1990s is AGENKY THEORY.  This theory examines the relationship of the firm.  In privately owned firms, management and the owners are usually the same people.  Management operates the firm to satisfy its own goals, needs, financial requirements, and the like.  As a company moves from private to public ownership, management now represents all the owners, this places management in the agency position of making   decision in the best interest of all shareholder.

Because of the diversitied ownership interest, conflicts between managers and shareholder can arise that impact the financial decision of the firm.

Also, because of the increased level of corporate stock took place in the 1980s agency theory has became more important in assessing whether shareholders goals are being achieved by management in the long rum

 

  • STATEMENT OF PROBLEM

There have been unprecedented increase in the request for the answer of

the following questions posed in order to clarity the duties of financial manager which is the prospective rank of a student studying finance.

What is managerial finance?  How important is finance functions to the company; it the financial manager is responsible for the performance of certain tasks, dose this mean that his actions are designed to accomplished specific goals.  How and when do the finance achieved the firms’ objective? What is the financial manager’s definition of a far price and how is it related to his firms return and investment capitals if they do not affect profile, why can their profile affect not be taken directly into account in the analysis?  What tools and techniques are available to him and how does one go about measuring his performance?  On a general seals do they have operational measuring?  That is how can managerial finance be used to further national goals?

Having identified these questions, the provision of the  possible answers to the aforementioned question constitute the area of consideration of this profit.

As stated, the financial manager must find a rational bases for answering the following questions.

  1. How large should and enterprise be and how last it grow?
  2. What should be the composition of its liability
  3. In what firm should it held its assets

The questions stated above related to three board decision area of financial management, investment financing and dividend.

Therefore the above roles of financial managers becomes important that the primary researcher conducted as a named company serves dual purpose.  This nothing serves as part to unfold the extent the financial manager of the company is executing his duties according to the project.

 

1.3     OBJECTIVE OF THE STUDY

          Since this project is concerned with the role of financial managers in a corporate organization.  Therefore, it is important to note the objective if any corporate organization.

  1. MAXIMIZATION OF WEALTH: The main objective of financial management is the maximization of owners wealth.  Owners wealth maximization of accomplished by maximizing the sum of te present value of the stream of dividends received and the present value of the increased in the market value of the share of stock held by the shareholder.  Thus the apparent wealth maximization is the best economic objective for shareholders as the owners and for the company whose primary interest is to shareholders/ owners.
  2. PROFIT MAXIMIZATION: this is the second of frequently encountered objectives of any business.  Infact, all business firms believed that as long as they are earning as much as possible while holding down lost they are achieving this goal of profile maximization.  It is regarded as a rational for business as stated “Although profit maximization appears to be intuitively appealing, it represents only one aspect of corporate performance.

THE ENVIRONEMNTAL SCOPE OF FINANCIAL MANAGER IN EXECUTIVE THEIR JOB

Financial managers do not have absolute authority on carrying out their responsibilities, there actions are constrained by certain factors beyond their control.

These factors can be divided into two:

  1. Internal environment: This principal factor in this case, sit is unavailability or the lack of human resources and the organizational self imposed standard.
  2. The external environment factor: the external factors include political, economic (monetary and fiscal polices) technological or even social.  It is this factor that mostly accounts of the unpleasantness that facts the financial manager in his bid to achieve organizational goals.

1.4     RESEARCH HYPOTHESIS

  1. The sources of fund which the company use in financing their company, i.e. whether short or medium term sources of fund. Also, the method of financing working capital which the company adopt.
  2. Methods used by the company in forecasting additional funds needed to support the higher volume of sales and also plan for profits.
  3. What financial ratios are often used in evaluating and understanding of the results of the business operations?
  4. The objective of the company’s budget and the policies usually established in furtherance of  the budgeting system.

 

1.5     SCOPE AND LIMITATIONS OF THE STUDY

The problems encountered in the study include lack of sufficient fund, inadequate contact with some of the respondents, illiteracy level and prejudice, distrust arising from ignorance of the basis for the study.

One of the limitations of the study is time.  In the collection of questionnaires, several repeat calls were made and sometimes the respondents never actually answered the question.  This state of affairs could be frustrating and in some cases, the respondents become hostile and aggressive.

With the high rate of illiteracy in this part of the world, some respondent never understood what was required of them and why the research was being carried out.  They therefore never answered any of the questions.  Some respondents work

REFERENCES

Chris C. Nwabueze, Principles of Corporate Financial Management

(Nigeria 200) pg. 9, 12 and 17

Igboah Mattur, Introduction to Financial Management, London (1979)pg 5

Orjih John (2001) Financial Management,  published by splash media

Organization Enugu

Pandy, I M. (1999) Financial Management, New Delhi Vikas

publishing House PVT LTD

Patrick Emekekwe, Corporate Financial Management (Nigeria 2002) pg.5, 7 and 10

Slanly B. Block, and Geofferey A. Hirt (1993), Foundation of finance

Management Von. Hoffmann Press, Inc. Pg 7 and 8.

 

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MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

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

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

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

Enter Amount

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

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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THE ROLE OF FINANCIAL MANAGEMENT IN A COOPERATE ORGANIZATION (A CASE STUDY OF NICON INSURANCE COMPANY LTD, ENUGU)

THE ROLE OF FINANCIAL MANAGEMENT IN A COOPERATE ORGANIZATION (A CASE STUDY OF NICON INSURANCE COMPANY LTD, ENUGU)

ABSTRACT

 

This project is poised at X – raying the degree of “the role of financial management in a corporate organization”. Making reference of Union Bank (Nig) plc Enugu, Financial management is the management activities conceived with raising of capital, planning cash and credit requirements including the effective control of financial resources. This work was divided into five chapters . The  first chapter was the introduction and background of the study, objective of the study which is the maximization of owners wealth. Significance of the study was also discussed.  Related textbooks was also used as literature review of the study, questionnaire were distributed to respondents. Information getting from responses were presented in tabular form.  Finally conclusion were drawn and recommendation were also given based on research

CHAPTER ONE

INTRODUCTION                                                                                       1

  • Background of the Study                     1
  • Statement of the Problem                    3
  • Objective of the Study                    5
  • Research Questions           6
  • Significance of the Study 6
  • Scope of the Study 7
  • Limitation of the Study 7
  • Definition of Term 8

 

CHAPTER TWO

REVIEW OF RELATED LITERATURE                                         9

2.1     Review of Related Literature General Overview                    9

2.2     Financial Rations and Profit Planning                                     11

23      Current Asset Management                                                     20

2.4     Break Even Analysis of a Firm                                                         24

2.5     Forecasting Future Need for Funds                                         28

2.6     Budgeting and Investment Analysis

Financial Planning                                                                             31

2.7     Managing the Financial Structure                                            40

 

CHAPTER THREE

3.1     Research Design                                                                      47

3.2     Area of the Study                                                                    48

3.3     Population of the study                                                           48

3.4     Sampling Method                                                                             48

3.5     Research Instrumentation                                                                  48

3.6     Validity and Reliability of Research Instruments                    49

3.7     Sources of Data                                                                       49

3.8     Method of Investigation                                                          49

 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS                                   52

4.1     Data Presentation                                                                    52

4.2     Test of Hypothesis                                                                  57

 

CHAPTER FIVE

FINDINGS RECOMMENDATIONS AND CONCLUSION            62

  • Findings 62
  • Conclusion           63
  • Recommendation           66

 

Bibliography                                                                            69

Appendix                                                                                70

LIST OF TABLES

 

Table 4.1:   Question     7                                                                 52

Table 4.2:   Question     15                                                               53

Table 4.3    Question     20                                                               53

Table 4.4    Question     21                                                               54

Table 4.5    Question     24                                                               55

Table 4.6    Question     25                                                               55

Table 4.7    Question     27                                                               56

Table 4.8    Question     28                                                               57

CHAPTER ONE

 

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Financial management involves all activities of a financial manager concerned with raising of capital, planning cash and requirement melding the effective control of financial resources

The activities could be segregated as follows:

  • Converting force caste in to plans and budgets
  • Planning the appropriate capital structures
  • Raising cash from outside the business
  • Forecasting the future availably of and requirement of cash
  • Investing surplus funds
  • Controlling cash balances and flows in accordance with plans and with changing circumstances.

With the emergence of finance as a separate field of study the emphasis was more or less on legal matters seen as mergers formation of new company’s disposal and consolidations. With most vital problem of the firm was identification of means of raising capital for possible expansion due to increasing wave in industrialization, the mobility of funds from area of surplus to area of scarcity pose a lot of problems.

In the 1930’s the stock of depression ushered in an era of conservation and attention slighter to such tropics as preservation of capita, maintenance of liquidity, reorganization of financial troubled corporations, and the bankruptcy process the federal government assured a much larger role in regulating business.

In 1940’s and early 1950’s offered little new in the study or produce of corporate finance. Crower, in the mid 50’s a major shift in emphasis took place, up to that time, the study of finance had been disruptive of definitional in nature.

The first area of study to generate the new found enthusiasm for decision related analysis was capital budgeting, in which the financial manager was presented with analytical techniques for allocating resources among the various assets of the firm the enthusiasms spread to other decision making areas of firm such as cash and inventory management, capital structure formulation and dividend policy. The emphasis shifted from that of the outside looking in the financial manager force to make though day to decision affecting the performance of firm.

From the late 1960’s through today’s financial management has focus on risk-return relationship and the maximization of return for a given level of risk.

Another area of financial resources that also receive more attention in early 1990’s AGENCY THEORY. This theory examines the relationship of the firm. In privately owned firms, management and the owner are usually the same people, management operates the firm to satisfy its own goals, needs, financial requirements and the like.

As a company moves from private to public ownership, management now represents all the owners, this places management in the agency position of making decision in the best interest of all shareholders.

Because of the diversified ownership interest, conflicts between managers and shareholder can arise that impact the financial decision of the firm. Also because of the increased level of corporate stock took place in the 1960’s agency theory has became more important in assessing whether shareholders goals are being achieved by management in the long run.

 

1.2     STATEMENT OF PROBLEM

There has been unappreciated increase in the quest for the answer of the following questions posed in order to clarify the duties of financial manager which is the prospective rank of a student studying fiancé.

What is managerial finance Functions to the perfuming designed to accomplish pontific goals. How and when do the finance achieves the firms objective? What is the financial managers,  definition of a fare-price and  how is it related to his firms return and investment capital, one may logically ask, why are we interested in these cash flows, if they do not affect profit, why can their profit effect not be taken  directly  into account in the analysis? What tools and techniques are available to him and how does one go about measuring his performance? On a general scale do they have any operational meaning? That is how can managerial finance be used to further rational goals?

Having identified these questions, the provision of the possible answers to the aforementioned question constitutes the area of consideration of this project.

As stated, the financial manager must find a rational based for answering the following three questions.

  • How large should an enterprise be and how fast it grow?
  • What should be the composition of this liability?
  • In what form should it hold its assets.

The questions stated above related to three board decisions areas of financial management, investment financial manager becomes important that the primary researchers caudated on a named company serves dual purpose. This not only serves as paint of the tool in answering the questions but it mainly asked to unfold the extent the financial manager of the company is executing his duty according to the project.

 

 

1.3     OBJECTIVE OF THE STUDY

Since this project is concerned with the role of financial managers in a corporate organization, therefore, it is informant to note the objective of any corporate organization.

(a)     Maximization of Wealth: The main objective of financial management is the maximization of owners wealth. Owners wealth maximization of accomplished by maximizing the sum of the present value of the stream of dividend received and the present value of the increased in the market value of the share of stock held by the shareholder. Thus the apparent wealth maximization is the best economic objective for shareholders as the owners and for the company whose primary interest is to shareholder owners.

(b)     Profit Maximization: This is the second of frequently encountered objectives of any business, infact, all business firms believed that as long as they are earning as much as possible while holding down lost they are achieving this goals of profit maximization. It is regarded as a rational for business as stated “although profit maximization appear to be intensively appealing, it represents only one aspect of corporate performance.

1.4     RESEARCH OF THE QUESTIONS

  1. The sources of fund which the company use in financing their company, ie. whether short or medium term sources of fund. Also, the method of financing working capital which the company adopt.
  2. Methods used by the company forecast additional fund needed to support the higher volume sacks and also plan for profit.
  3. What are the financial ration used on evaluation and understanding of the result of their business operation.
  4. The objectives of the company’s budget and the policies usually established in furtherance of the budgeting system.

 

1.5 SIGNIFICANCE OF THE STUDY

this research work on the role of financial management in a cooperate organization will be of benefit to the financial  institution in the following ways.

(a) Internal Environment: The principle factors in this case, sit is unavailability or the lack of human resources and the organizational self imposed standard.

  • The External Environmental Factor: The external factor include political, economic (monetary and fiscal policies) technological or even social. It is this factor that mostly accounts of the unpleasantness that facts the financial manager in his bid to achieve organizational goals.

 

 

  • SCOPE OF THE STUDY

This study on the role of financial management in a cooperate organization. Is study is concentrated on Nicon insurance company L.T.D ENUGU.

 

  • LIMITATIONS OF THE STUDY

The problems encountered in the study include lack of sufficient fund, inadequate contact with some of the respondents, illiteracy level and prejudice, distress arising form ignorance of the basis for the study.

One of the limitations of the study is time. In the collection of questionnaires, several repeat calls were made and sometimes the respondents never actually answered the question. This state of affairs could be frustrating and in some cases, the respondents become hostile and aggressive.

1.8 DEFINITION OF TERMS.

HUMAN RELATIONS:  The interaction that exists amongst people in an organization.

MORALE: State of mind and emotion

INEFFICIENCY:  Not capable

MOTIVATIONAL DEVICES: Those devices used t stage up the morale f workers towards achieving organizational goals eg. regular promotion of staff, high pay packages etc

MORALE BOOSTER: Something that increase the workers’ state of mind.

NEED’S HIERARCHY: The order, stage or pyramid f human wants or desire. The higher the hierarchy, the more satisfied the person is.

DECENTRALIZATION: Making the offices and authority of an organization to be scattered at different places. This is the reverse of centralization.

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

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

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THE ROLE OF FINANCIAL MANAGEMENT IN A COOPERATE ORGANIZATION A CASE STUDY OF UNION BANK (NIG) PLC ENUGU

THE ROLE OF FINANCIAL MANAGEMENT IN A COOPERATE ORGANIZATION

A CASE STUDY OF UNION BANK (NIG) PLC ENUGU

ABSTRACT

 

This project is poised at X – raying the degree of “the role of financial management in a corporate organization”. Making reference of Union Bank (nig) plc Enugu, Financial management is the management activities conceived with raising of capital, planning cash and credit requirements including the effective control of financial resources. Some thoughts were given to financial management to provide skilled planning, control and executive of financial activities. The because among the most crucial decisions of the firm are those which related to finance and therefore need to understand financial management which provides them with conceptual and  analytical insights to make these decisions. The financial manager must take steps to ensure that the funds will actually be available and committed to the firm.

The financial manager is usually responsible for gathering and analyzing the relevant information, making forecast of profit level to estimate profits from future sales, the firm must be aware of current cost and likely changes in the ability of the firm to sell its product as planned.

The financial manager must measure the required return of this capital investment by answering this question. Does the level of return, offered adequately justify that of risk there in? He is required to know the rate of return that must be expected from the proposal before it is accepted.

The finance personnel meet with other officers of the firm and anticipate in making decision affecting the current and future utilization of fund resources. The manager will discuss the total amount of assets needed by the firm to carryout its operations and determine the composition on needs. They identity ways to use the existing assets more effectively and there by reducing waste and needed expenses.

This decision making role cause liquidity and profitability, this is so because converting equipment to cash improves liquidity while reduction of cost improve profitability.

The role of financial manager in the management of funds available for the firm. The funds include cash held by the firm, money borrowed and money gained from the purchase of common stock and preferred stocks.

The financial manager is responsible for having sufficient funds for the firm to conduct its business and pay its bill s and a lot of money to finance receivables and inventions making arrangement for the purchase of assets and identity sources of long term financing. In fact, this project aimed at the aforementioned roles of financial manager in any organization to foster his performance in the following.

Forecasting and profit planning and control financial ration analysis, working capital policy, stocks, cash receivable, marketable severities, financial risk and structure, medium short and long term sources of funds, valuation of stocks and cost of capital, internal financial dividend policy and techniques for capital investment analysis.

The issue of whether these stated role of financial manager are executed or not in a case to be investigated by the researcher from the following perspective:

٭        Budgeting and investment analysis

٭        Management of short, medium, and long term financing

٭        Financial ratio and planning

٭        Managing the financial structure.

The researchers will analysis the financial concepts using analytical tools and techniques obtained from the organizational answers received from the questionnaires to unfold the financial mangers decisions on financial matters.

It is hoped that this project will attain the standard required of it by all the examining bodies and also satisfy the curiosity of the general reading public who may have the desire to become acquainted

CHAPTER ONE

Introduction                                                                                      1

  • Background of the study 1
  • Statement of the problem 6
  • Research questions 7
  • Significance Of The Study 8
  • Research hypotheses 11
  • Scope limitation and delimitations 11

Reference                                                                       15

CHAPTER TWO

Review of Related Literature                                                   16

Reference                                                                                 33

CHAPTER THREE

Research design and methodology                                          34

3.1     research design                                                              34

3.2     area of study                                                                  34

3.3     populations                                                                             34

3.4     sample and sampling techniques                                   35

3.5     instruments of data collections                                      36

3.6     Sources of Data                                                             36

3.7     methods of data presentation                                        37

3.8     method of data analysis                                                 38

CHAPTER FOUR

Data Presentation and Analysis                                              40

4.1     Data Presentation                                                          40

CHAPTER FIVE

Findings recommendations and conclusion                             49

  • Findings 49
  • Recommendation 51
  • 53

Bibliography                                                                  58

CHAPTER ONE

1.0      HISTORICAL OF BACKGROUND

Financial management involves all activities of a financial manager concerned with raising of capital, planning cash and requirement melding the effective control of financial  resources

The activities could be segregated as follows :

  1. Converting force caste in to plans and budgets .
  2. Planning the appropriate capital structures
  • Raising cash from outside the business
  1. Forecasting the future available of and requirement of cash
  2. Investing surplus funds
  3. Controlling cash balances and flows in accordance with plans and with changing circumstances.

With the emergence of finance as a separate field of study the emphasis was more or less on legal matters seen as mergers formation of new company’s disposal and consolidations.

With most vital problem of the firm was identification of means of raising capital for possible expansion due to increasing wave in industrialization, the mobility of funds from area of surplus to area of scarcity pose a lot of problems.

Because of the radical changes such as the one that occurred during the depression of 1930, which culminated in the failure of many business financed was re-directed to bankruptcy organizational and firms liquidity. Since most business firms’ objectives are profit maximization and firms liquidity. The search for profitability under imperfect/perfect competition continues to be the motivation to improve the wealth of the owners.

This urge to improve and maximize wealth has led to the study of financial management of which attribute factors can be socialized as follows:

  1. Savings
  2. Business growth
  3. Research and development expenses.
  4. Inflation
  5. Competitive etc

Based on the above background, same thoughts were given a financial management to provide skillful planning, control, and execution of financial activities. The practicing managers and interested in this subject because among the most crucial decisions of the firm are those which related to finance and therefore the need to understand financial management which provides them with conceptual and analytical insights of capital funds, and using the suppliers of funds are called the finance function of any firm.

GOALS AND OBJECTIVES /ROLES OF FINANCIAL MANAGERS

Financial this is the life wire of any business organization and is developed in 1900 since it concerns the cultural flows of money as well as any claim against money, the financial managers subsequent decisions are made in much more co-ordinate manner directly responsible for the control process.

The financial managers is concerned with

  1. Financial planning within the bank
  2. Raising of funds
  3. Allocation controlling
  4. Financial controlling

FINANCIAL PLANNING

This raising of funds involves organizing and censuring that funds necessary for carrying on the operations of the plan is available. The second fact of financial manager is the acquisition of funds.

Each has certain characteristics as cost: Maturing availability, the supplier of capital.

On the basis of these factors, the financial manage of the bank must determine the best mix of finance for the banking industry.

Therefore, the financial manager has task of formulation and execution of suitable financial policies in the interest of the organization.

The major purpose of such policies is to plan co-ordinate, motivate and responsible for an efficient management of resource. An efficient financial manager thuds, serve as a valuable aid to the process of decision making a major contribution t pale of contribution to the pale of economic progress.

The principal responsibility of financial manager involves a theory of evaluation of investment financial and dividend decisions with the objective of maximizing wealth. The financial manager studies the analytical techniques and the environment which financial decision are made.

The financial manager keeps accurate financial  records, preparing reports, managing the cost position providing the means for the payment of bills, processing funds in assets, and  obtaining the best mix of financial in relation to overall development of the organization.

The task of financial manager is invisibly faced with problems like those of profitability, Liquidity, and risk factors, which influence both internal and external environment.

Only sound financial decision based on analysis, the planning, and control activities therefore can help optimization  of value of operations. Optimization of profits and share holder’s wealth is one of those guiding objectives of business enterprise, which govern its allocation of resource and other financial manager.

The financing manager must finally be aware of the sources available financing the business and be guided by times, selection and combination of these variables. That is the financial managers dilemma and the principles dilemma is that of profitability and liquidity while suitability is the principle of time balancing between assets and liabilities, that is using short term liabilities to

  • STATEMENT OF PROBLEM

There has been unappreciated increase in the quest for the answer of the following questions posed in order to clarify the duties of financial manager which is the prospective rank of a student studying fiancé.

What is managerial finance Functions to the perfuming designed to accomplish pontific goals. How and when do the finance achieves the firms objective? What is the financial managers,  definition of a fare-price and  how is it related to his firms return and investment capital, one may logically ask, why are we interested in these cash flows, if they do not affect profit, why can their profit effect not be taken  directly  into account in the analysis? What tools and techniques are available to him and how does one go about measuring his performance? On a general scale do they have any operational meaning? That is how can managerial finance be used to further rational goals?

Having identified these questions, the provision of the possible answers to the aforementioned question constitutes the area of consideration of this project.

As stated a the financial manager must find a rational based for answering the following three question.

  1. How large should an enterprise be and how fast it grow?
  2. What should be the composition of this liability?
  3. In what form should it hold its assets.

The questions stated above related to three board decision areas of financial management, investment financial manager becomes important that the primary researchers caudated on a named company serves dual purpose. This not only serves as paint of the tool in answering the questions but it mainly asked to unfold the extent the financial manager of the company is executing his duty according to the project.

 

1.3     RESEARCH QUESTIONS                                                 

What are the method used by the company forecast additional fund needed to support the higher volume sacks and also plan for profit .

What are the financial ration used on evaluation and understanding of the result of their business operation.

 

1.4     SIGNIFICANCE OF THE STUDY

The purpose of this project the role financial management in a corporate organization is to equip the practicing financial managers, treasures, students of finance, and readers with a basic understanding of financial  decision. The financial manger carries out financial decisions maximized through the following

  1. Current asset management
  2. Capital budgeting decision
  3. Dividend decision
  4. Financial decision

 

  1. CURRENT ASSET MANAGEMENT

Financial management has every right to manage the long-term assets, and also the duty to manage current assets efficiently to safeguard the firm against liquidity insolvency.

Investments in current asset affect the firm’s profitability, Liquidity, and risk. If the firm does not invest sufficient funds in current assets, it may becomes liquid. But it would less profitability as idle current asset would not earn anything.

In order to ensure that it would not earn anything. In order to ensure that neither insufficient nor unnecessary funds are invested in current assets, infect he should develop sound techniques of managing current assets.

 

  1. CAPITAL BUDGETING DECISION

Capital  budgeting is investment decision of the firm to have its fund invested in long term project in anticipation of expected flow of future benefits over a period of years.

These decisions could be either to mechanize a process, replace a machine with another modern type, selecting between two machines, production of new products or business expansion

Its features are;

  1. investing current funds for future benefits
  2. The period of investment which involves long term activities.
  3. The potential benefit, which will accrue to the firm over a period of time.

 

  1. DIVIDEND DECISION

The financial manager must determine the optimum dividend payment ratio. He should consider the questions of dividend stability, stock dividends and cash dividend. Financial manager must decide whether the firms should distribute all profits or retain the balance.

 

  1. FINANCIAL DECISION

The financial manger must decide when, how, and whom to acquire funds to meet the firms investment needs. The significant issue before him is to determine the proportion of equity capital and debt capital.

A proper balance will have to be struck between return and risk once the financial manager is able to determine the best combination of debt and equity, he must raise the appropriate amount through best available sources.

 

 

 

1.5       RESEARCH HYPOTHESIS

Ho;      There are no methods that used by the company in forecasting additional funds needed to support the higher volume of sales and also plan for profits.

HI:       There are methods used by the company in forecasting additional funds needed to support the higher volume of sales and also profits.

Ho:      There are no financial ratio used in evaluating and understanding of the results of their business operations

HI:       There are financial ratios used in evaluating and understanding of the result of their business operation

 

1.6     LIMITATION AND DELIMITATION

There researcher may not fail to unfold some of the constraints or restrictions he has encountered in collecting the materials for the projects. There are no gain saying that the unavailability of text books in this filed of study especially in developing countries like Nigeria is a different.

Hence, in spite of the facts that the published financial statements by these banks are revelry seen, they are equally not comprehensive as regard the need.

Some important information are not usually available for further information cannot be over emphasized. Some claimed the compliance of their management policies not to disclose some vital information to the public. It is a known fact that most banking industries have their head quarters at Lagos and it is where most decisions are taken.

Granted  on this fact, the questionnaires sent to some of these  industries could not come back due to irregularities in our communication system.

However, therefore the firm (union Bank plc Enugu was referred to after the researcher night have compared the information acceptable to him on the respective banking industries that co-operated with him within the locality.

Union Bank of Nigeria plc started operation in Nigeria in the year 1917. union Bank of Nigeria plc Enugu have 5(five) branches in Enugu.

SUMMARY OF THE REST OF THE STUDY

The general ideal of this work “the role of financial manager in a corporate organization “look into the following perspectives:

Chapter one gives general explanation of the subject from the historical perspective, organizational goals, statement of problem, goals and objectives, significance of the study, limitation and delimitation, and research hypothesis.

Chapter two, literature review from the general overview financial ration and profit planning management of current assets, budgeting and investment analysis, managing the financial structure and management of short, medium and long term financing.

Chapter three deals with the research methodology  conducted and consulted from the following.

Personal interview, secondary source of data, questionnaires, hypothesis test , and empirical analysis of the named company.

However, chapter four deals with the discussion of results through financial ratio analysis, hypothesis testing and implicational of the results.

On the other hand, chapter five looks into the summary, conclusion and recommendations respectively finally followed by bibliography, Glossary and appendix.

 

REFERENCE

 

  1. Chris C. Nwabueze, (200) Principles of corporate Financial management Nigeria Pg. 9,12, & 17.
  2. Igboah Mathur (1999) Introduction of financial Management London pg.5

Download our android mobile app for more materials

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

MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

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

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

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

Enter Amount

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

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

THE ROLE OF MANAGEMENT ACCOUNTANT ON PROFIT MAXIMIZATION (A CASE STUDY OF EMENITE PLC)

THE ROLE OF MANAGEMENT ACCOUNTANT ON PROFIT MAXIMIZATION

(A CASE STUDY OF EMENITE PLC)

ABSTRACT

The management accountant is identified as one of the key officers in the accounting department of any manufacturing company. He has the duty of providing the required professional information reroute to achieving the organization goal. Some of his functions include planning and controlling activities, formulation of strategy decision taking optimizing the use of resources in the planning function he quantifies and interprets the effect of planned transaction and other economic event of the organization. The management accountant by virtue of his duty participants indirectly in the management process. This research work aims to bring to the knowledge of its user the role of the management accountant plays in the achievement of the goal of every manufacturing outfit which is profit maximization. The work is organized in five chapters, chapter one is the introductory part which include the background to the study, statement of the problems, significance, scope and hypothesis and definitions of terms. Chapter two is the literature review where the opinions of various authors where in related subjects are reviewed. Chapter three deals with the research design and methodology. This could be seen as a framework or a plan that is used in collecting and analyzing the data for the study. It reveals the sources of the data, the sample used and the method of investigation. In chapter four the data are being presented and analyzed, hypothesis stated were adequately tested and decision taken. Finally in the fifth chapter. The finding of the research work is disclosed and recommendations and suggestions are given for the benefits of the users.

CHAPTER ONE:

INTRODUCTION

  • BACKGROUND OF STUDY 1
  • STATEMENT OF PROBLEM                                 5
  • PURPOSE OF THE STUDY 8
  • HYPOTHESIS 8
  • THE SCOPE OF THE STUDY 9
  • SIGNIFICANCE OF THE STUDY 9
  • DEFINITION OF TERMS 10

CHAPTER TWO – REVIEW OF LITERATURE

2.1   DEFINITION OF PROFIT MAXIMIZATION                 11

2.2   FUNCTIONS OF MANAGEMENT ACCOUTANT

IN     RELATION TO PROFIT MAXIMIZATION            17

2.3   WAYS OF REGULATING COST IN A

MANUFACTURING   COMPANY                                        32

 

CHAPTER THREE – METHODOLOGY

3.1 THE DESIGN                                                             39

3.2 AREA OF STUDY                                                       39

3.3 POPULATION OF STUDY                                            40

3.4 SAMPLE AND SAMPLING TECHNIQUE                      40

3.5 INSTRUMENT FOR DATA COLLECTION                    41

3.6 VALIDITY OF AN INSTRUMENT                                 42

3.7 ADMINISTRATION OF RESEARCH INSTRUMENT      42

3.8 METHOD OF DATA ANALYSIS                                   42

 

CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS

4.1 DATA CLASSIFICATION                                             43

4.2 TEST OF HYPOTHESIS                                              50

 

CHAPTER FIVE – DISCUSSION AND CONCLUSION

OF RESULTS

5.1 DISCUSSION OF FINDINGS                                       56

5.2 CONCLUSION OF THE STUDY                                   61

5.3 RECOMMENDATIONS                                               62

5.4 IMPLICATION OF THE FINDINGS                               63

5.5 SUGGESTION FOR FURTHER STUDY                               64

5.6 LIMITATION OF THE STUDY                                      65

REFERENCES                                                                 66

APPENDICES                                                           68

 

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Modern business organization operates in an environment that is considerably complex. Since the 1970’s managers have had to cope with rising interest rate materials shortage, prices inflation and environmental regulations to mention a few. And the traditional method of analyzing problems and making decision have been found incapable of effectively handling this increasing complexities due to the changes that exist within the environment. It becomes an important characteristic of a good management to be able to evaluate the past changes to react to current changes and to be able to predict the future changes. In this direction management needs information continually which will help in the planning and controlling of the operation of the organization.

The need for accountability has given rise to cost accounting system which provides information that is useful to management for internal reporting objectives. Due to the complexities in the system of most organizations, the system of cost accounting is equally becoming complex and resultantly body of professional with special expertise in this is created. This body of professional is called the management accountants and the area of study is known as management accounting.

Woody et al (1985) defined management accounting as the process of identification, measuring, accumulating of financial information used by management to plan events and control within an organization and to ensure proper use and accountability to its resources. From the above definition it means that the management accountant has a range of function to carry out in an organization.

According to ICMA “management accounting is the presentation of accounting information in such a way as to assist management in the creation of policies and in the day-to-day operation of an undertaking” to achieve this aim the management accountant is increased in the past,  the present and the future. Useful information can be extracted from past result which together with report of current performance can point the way to immediate management action. In same vein management action. In the since vein forecasting the future enables the management to evaluate the current result more readily and may also reveal areas of business which requires corrective actions. David Fanning (1983) defined management accounting as “the application of professional knowledge and skill in the preparation and presentation of accounting information in a way to assist the management in the formulation of policies and in the planning and control of operation or the undertaking. It is designed to provide information for solving internal problems. The management accounting system of planning and control is designed to spur up and help chief executive to search and select short run and long run goals and implement plans apprising performance and pin-point deviations from plan.

To be able to do all these, the management accountant must posses some knowledge of accounting. He must have a thorough understanding of the operation of the organization in which these systems are implemented and the appropriate technology to apply in each case for the provision of management information. Information provision depends solely on the type of business. It is obvious that the management of a manufacturing company will need information that will enable them consider the factor affecting cost of production, cost classification, cost reduction, product pricing market shares of the products, choice of product lines, diversification and investment. However a trading company needs information that will concentrate decision on customers’ demands, advertisement and product branding. The management accountant uses data from the financial and cost accounting system to perform his task, he conducts special investigations and use   accounting and other appropriate techniques from statistic and operation research. He considers the human element in all activities so that all times he will be provided with information which is relevant for carrying out his work effectively so as of maintain his value or even enhance it. In addition he interprets data and communicates same the management. The inability of the management accountant to perform his duties would result in shortage of information for long and short run planning system and the necessary control measures to be made. The basic objective behind the continuous existence of business organization is the need to increase its wealth through profit making. It actualize ranks lightest among the objectives of business organizations and the management needs accurate and timely information for decision making in order to achieve this noble objectives.

 

 

1.2   STATEMENT OF THE PROBLEM

There has been a considerable lack of appreciation lack of appreciation by many as to the intrinsic value of management accountants. Manufacturers like other business executors have had to appreciate where such  value have stimulated the development of management accounting as information tools in business organization. Such events include the increased competition in business and rapidly developing technology. The resultant changes that have emerged have intensified manager’s need for information beyond that which is contained in the traditional income statement and balance sheet. Over the last three decades, product has become obsolete at an alarming rate.

The advent of scientific breakthrough has resulted in the development of many new basic components such as the transistor and electric (chips) which have literally revolutionalized many industries and their products. Scientific researcher reports that this revolution is only the beginning. Drastic changes have taken place in production method over the last three decades. The team “Automation” has crept in and today many products are produced ritually untouched by human hands. For example oil refinery operations are controlled by massive computer network machine.

Tools are electronically controlled and there are even some entire manufacturing plan where workmen do little more than monitoring instrument panels. Modes it management and method of decision making have been affected by the development of new and powerful quantitative tools such as linear programming probability analysis and decision theory. These new tools which have come to be from the mathematical and statistical sciences are becoming indispensable in day to day decision making.

The problem of increase cost of production have forced the companies involved to make many adjustment which include modification of product, changes in the method of production and even marketing and the discovering of  new sources of financing production. Some companies go as far as reducing the quality of raw material and end up producing less quality product which cannot help matters in the long run. The economic impact of these and other factors have been far reacting as managers or companies are now competing and cost of production escalating. These have in effect expanded the role of management accountant as an information tools over the years. There is also the problem of poor inventory management which leads to overstocking thereby tying down the company’s working capital.

 

1.3 PURPOSE OF THE STUDY

It is the role of management accountant to analyzed information and the technique employed to the achievement profit maximization. The purpose of this study therefore is to intimate the top level managers the crucial role of the management accountant is the overall management process, planning and controlling in order to ensure profit maximization.

 

1.2 HYPOTHESIS

Ho: Cost is not classified by management accountant to         provide useful information for profit planning.

Hi: Cost is classified by management accountant to provide  useful information for profit planning.

Ho: The company fixed costs are not always constant over the        relevant range of output.

Hi: The company fixed costs are always constant over the       relevant range of output.

 

1.5 THE SCOPE OF THE STUDY

To keep the project within a management limit and in view to the limited time and resources available to the researcher he had localized and confined the study to the manufacturing company in Enugu.

 

1.6 SIGNIFICANCE OF THE STUDY

The management accountant makes the necessary information available to the management by the application of his skill and knowledge. The significance of this study is to bring to the notice of the management the vital role of the management accountant and how these could affect the operations and the attainment of the organizational goal. If these information provided are recommended for use by the management, then management would be able to plan and control the organization more effectively and efficiently such that the cost of operating the business will be at minimum while profit will be enjoyed.

 

1.7 DEFINITION OF TERMS

  1. Profit maximization: making great profit out of the little resources available.
  2. Role: A part which a person plays a in real life.
  3. Firm: A business concern or a company.
  4. Management accountant: this is a person who is responsible for keeping account i.e keeping records of amount of money spent or received and also providing management information.
  5. Journal: A newspaper or magazine that deals with a particular subject or profession.
  6. Linear programming: this is a material technique concerned with the allocation of scarce resources. It      optimizes the value of some objectives.

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THE ROLE OF MORTGAGE BANK IN THE NIGEIRAN ECONOMY

THE ROLE OF MORTGAGE BANK IN THE NIGERIAN ECONOMY

PROPOSAL
The role of mortgage Bank in Nigerian economy” which is the title of this project talks about in chapter one. The establishment of mortgage institutions by the federal government under decree 53 of 1989.The functions of the institution as stated is going to provide long and medium term loans to every Nigerian who have interest in owing a house of their own. Also mention is made about the primary mortgage institutions (PMI’s). Which was established by the federal mortgage bank of Nigeria. The aim of establishing the PMI’s is to be able to reflect on the fMBN National outlook and to spearhead the extension of housing finance services to all conners of the nation.

In the next chapter, the institutions get their fund from a good example is from the central bank of Nigeria (CBN) in form of loan. In addition to this mention was made here about the role or objectives of mortgage banks which includes providing both commercial, merchant and non-financial services.

Also, you will see the problems faced by the mortgage institutions and the recommendations that are given to remedy the problem.

CHAPTER ONE

  • Introduction
    • Background of the study
    • Statement of problem
    • Significance of the study
    • Scope of the study
    • Definition of terms

 

CHAPTER TWO

  • Review of related literature
    • Source of fund (finance)
    • The role and objectives of mortgage banks
    • Policies implement

 

CHAPTER THREE

  • Research Design and methodology
    • Sources of data
    • Location of data
    • Sampling size
    • Method of investigation

 

CHAPTER FOUR

  • Data analysis

 

CHAPTER FIVE

  • Findings
  • Conclusion

BIBLOIGRAPHY

 

 

CHAPTER ONE

INTRODUCTION

  • BACKGROUND OF THE STUDY

One of the most important responsibility of any good government is to implement its housing policy (to provide housing for all Nigeria year 2004 A y. The central Bank in connection with the federal government of Nigeria is to oversee the realization of this dream through some financial institutions. The federal government after all deliberations then promulgated Decree 53 in 1989 which lead to the establishment of the mortgage banking  institutions. The institution were to provide loans(especially long and medium terms) to respective Nigerians who own houses.

They will also the low income earners to be taking part in the construction of development plans through the Nigeria Housing Authority (NHA)

In 1957, the Nigeria Building Society  (NBs) was established. Also in 1977, the NBs during the General Olusegun Obasanjo  regime was renamed the federal Mortgage Bank of Nigeria (FMBN). This was dome under Decree of 20th January 1977 following the acceptance by the federal Government of the recommendation of a financial review panel (FRP).

Since its establishment in 1977, the federal mortgage Bank has remained institutionally central in the housing finance system with respect to the prescription in its enabling decree. The bank is expected to, inter-alia, perform the following function:-

  • Mobilize and allocate resources for long term investment in housing.
  • Promote the establishment of primary mortgage institutions as well as supervise and regulate their activities.
  • Undertake and support applied research aimed at improving overall sectoral performance.
  • Provide financial and technical assistance to various institutions within the housing sector.

With this change in structure in 1977 it was required to co-ordinate housing policy and land development financing in the country.

Between 2974 and 2000 the federal mortgage Bank of Nigeria (FMBN)  have been able to establish primary mortgage institutions ( PMI) all over the federation. About three hundred and  ten (310) of such PMI are so far listed far operation between 1977 to 1994 255  (two hundred and fifty five . this is to reflect on the FMBN national outlook and to spearhead the extension of housing finance services to every part of the federation. This branch network programme was also informed by the absence of other housing finance agencies. To be sure, there is a housing corporation of its equivalent in each state. But the operations of these agencies are more predisposed to property development than emphasis given to savings mobilization in the operations of these agencies was perhaps under standable. The non-specialized financial institutions (i.e. commercial and merchant banks) have always been the better competition, this is a consequences of their financial operations.

The result of all these was a general deterioration in the housing conditions in this process there has also been the construction of some of the most luxurious housing in the world. It was this sectoral setting that led to the new National housing policy which was formally launched on 20th   Feb 1991.

It should be noted that the Mortgage institution decree is essentially an integral component of the housing policy. It empowers each institution to subject to the provision of the banking Act 1969 (now superceded by decree 26/91).

  • Accept savings and deposits from the public and to pay interest thereon.
  • Grant loans far the purchase/Construction Improvement/execution of        dwelling houses. Several prescriptions are indicated in institutions        conduct their business affairs as well as on their responsibility to        FMBN as the regulatory agency.

OBJECTIVE OF THE STUDY

Among other things mortgage banking in Nigeria has the following objectives:-

  • Allocation of resources to borrowers so as to make sure that various segments of the society get served evealy
  • Encouraging an active landmark.
  • Making funds available to mortgage market through various incentives and instruments
  • Helping the building materials production system.
  • Assisting urban development activities
  • Stimulating large scale property development.
  • Promoting efficient methods for the financial and economic evaluation of housing investment.

 

  • STATEMENT OF THE PROBLEM:–

Till now because of the long expectations that has passed – in – waiting far the housing and national housing fund to be implemented, the situation has reduced mortgage institution into financial stress. The result today is that depositors are no longer confident that their money which is not invested is in a safe hand.

SUB-PROBLEMS:

  • The responsibility of the FMBN and PM, is to obtain a workable and Crisis free mortgage industry (institution).
  • How to provide for adequate capital bases, efficiency of operation and reasonable branch network.

 

RESEARCH QUESTIONS AND HYPOTHESIS

It is believed by developed and developing nations of the world that to achieved perfect development both in economy and economic structure, the issue of the destitute of that nation must be first of all be addressed and such hundreds of thousands or hundreds of millions of her destitute settled before a perfect growth. It is because of this imperfection that the researcher now took the pain to ensure these following research questions in this project work.

  • Would the establishment of more mortgage institution solve the         housing problems of millions of Nigerians.
  • How sufficient, effectives, regular will the housing loan issue assist in the perfect and efficient economic development.
  • Will the housing police set up by the different administrations in Nigeria to meet the housing target by the year 2004. AD. Still feasible? All this and other questions will be answered in the related chapters.

 

  • SIGNIFCANCE OF THE STUDY

Some of the significant of mortgage bank in Nigerian economy are to:-

  • Encourage the active participation of the public and private sectors.
  • Strengthen institution within the system to make them more operationally responsive.
  • Emphasize also carry out the implementation of National Housing fund.

 

  • SCOPE OF THE STUDY

This research work will cover “The role of Mortgage Banking in Nigeria Economy”

 

LIMITATIONS OF STUDY

It is quite obvious that one must generally sacrifices details for brevity in a proper study of this, nature.

The research work is limited by several factors.

Firstly, because of fund and time factor, the study was limited to Nigeria. This constraints also restricted the researchers personal search of a broader section of officials of other mortgage institution.

Secondly as a result of the peculiar circumstances of the mortgage and financial institutions, under the same umbrella of the central bank and government which control their activities.

 

  • DEFINITION OF TERMS:-

Methodology:- This is the study of method or ways to be adopted in a given direction.

Policy:- A plan of action or a state of aims and ideals made by a government, a business company or an individuals.

Mortgage Bank:- A bank which gives or lend loans to individuals to enable them build their own houses or renovate an existing one.

Loan:-      This is something  usually money lent to another person with interest repayable at a fixed time.

Fund:-This is a sum amount of money stipulated for a particular period in another way, resources in the (public) funds (i.e. the stock of the national debts as a form of investment

Building Society: An institution form in the period of industrial revolution to their member to purchase their own homes/houses.

Home/house:- This refers to the house owners parents/family are also staying. Put differently, it is the place where somebody lives.

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Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

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

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

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

Enter Amount

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

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THE ROLE OF THE MANAGEMENT ACCOUNTANT IN PROFIT MAXIMIZATION (A CASE STUDY OF EMENITE PLC)

THE ROLE OF THE MANAGEMENT ACCOUNTANT IN PROFIT MAXIMIZATION

(A CASE STUDY OF EMENITE PLC)

ABSTRACT

The management accountant is identified as one of the key officers in the accounting department of any manufacturing company.  He has the duty of providing the required professional information reroute to achieving the organization goal.  Some of his functions include planning and controlling activities formulation of strategy decision taking optimizing the use of resources etc.

In his planning function he quantifies and interpreters the effect of planned transaction and other economic event of the organization.

The management accountant by virtue of his duties participants indirectly in the management process. This research work aims to bring to the knowledge of its user the role the management accountant plays in the achievement of the goal of every manufacturing outfit which is profit maximization.

The work is organized in five chapters, chapter one is the introductory. Part which include the background of the study statement of problems significance scope and limitation of the study. Chapter two is the literature review this is where the pinions of various authors in related subjects are reviewed. Chapter three deal with the research design and methodology. This could be seem as a framework or a plan that is used in collecting analyzing the data for the study. It reveals the sources of the data the sample used and the method of investigation. In chapter four the data are being presented and analyzed the hypotheses stated were adequately tested and decision taken.  Finally in the fifth chapter the finding of the research work is disclosed and recommendations and suggestions are given for the benefit of the user.

CHAPTER ONE

1.0     Introduction

  • Statement of problem
  • Purpose of the study
  • Significance of the study
  • Statements of hypothesis
  • Scope and study
  • Limitation of the study
  • Definition of terms

 

CHAPTER TWO

2.0     Review of related literature

  • Definition of profit maximization
  • Functions of management accountant in relation to profit maximization
  • Ways of regulating cost in a manufacturing company

 

CHAPTER THREE

3.0     Research design and methodology

  • Sources of data
  • Sample used
  • Method of investigation

 

CHAPTER FOUR

4.0     Data presentation and analysis

  • Test of hypothesis

 


CHAPTER FIVE

5.0     Summary of findings conclusion and recommendation

  • Findings
  • Conclusion
  • Recommendation

Bibliography

Appendix


CHAPTER ONE

INTRODUCTION

Modern business organization operates in an environment that is considerably complex. Since the 1970’s managers have had to cope with rising interest rates materials shortage crises inflation and environment regulations to mention a few. And the traditional method of analyzing problems and making decision have been found in capable of effectively handling this increasing complexities due to the  change that exist within the environment it becomes an important characteristics of a good management to be able to evaluate the past changes to react to current changes and to be able to predict the future changes. In this direction management needs information continually which will help in the planning and controlling of the operation of the organization.

The need for accountability has given rise to cost accounting system, which provides information that is useful to management for internal reporting objectives.

Due to the complexities in the system of most organization the system of cost accounting is equally becoming complex and resultantly a body of professional with special expertise in this is created. This body of professional is called the management accountants and the area of study is know as management accounting

Woody et al (1985) define management accounting as the process of identification measuring accumulating analyzing preparation interpretation and communication of financial information used by management to plan events and control within an organization and to ensure proper use and accountability of its resources form the above definition it means that the management accountant has a range of function to carry out in n organization.

According ICMA “management accounting is the presentation of accounting information in such a way as to assist management in the creation of policies and in the day-to- day operation of an undertaking”.

To achieve this aim he management accountant is interested in the past the present and the future. Useful information can be extracted form past result which together with report of current performance can point the way to immediate management action.  In the same vein forecasting the future enable the management to evaluate current result more readily and may also reveal areas of business which requires corrective actions.

David fanning (1983) defined management accounting as “The application of professional knowledge and skill in the preparation and presentation of accounting information in a way to assist the management in the formulation of polices and in the planning and control of operating of the undertaking it is designed to provide in formation for internal problem solving. The management accounting system of planning and control is designed to spur up and help chief executive search for and selecting shorting run and long run goals and implementing plans apprising performance and pin- pointing deviations from plan.

To be able to do all these the management accountant must posses some knowledge of account. He must have a thorough understanding of the operations of the organization in which these system are implemented and the appropriate technology to apply in each case for the provision  of management information. Information provision depends solely on the type of business.  It is obvious that the management of a manufacturing company will need information that will enable them consider the factor affecting cost of production cost of classification cost reduction product pricing market shares of the products choice of the product lines diversification and investment.  However a trading company needs information that will concentrate decision on customers demands advertisement and product branding.

The management accountant uses data  from the financial and cost accounting system to perform his ask he conducts special investigations and uses accounting and other appropriate techniques from statistic and operation research. He considers the human element in all activities so that at all times he will be provided with information which is relevant for carrying out his work effectively so as to maintain his value or even enhance it.  In addition he interprets data and communicate same to the management.

The  inability of the management accountant to perform his duties would result in shortage of in information for long and short run planning system and he necessary control to be made  the basic objective behind the continuous existence of business organization is the need to increase its wealth through profit making. It actually ranks lightest among the objectives of business organizations and the management needs accurate and timely information for decision making in order to achieve this noble objective.

Weldi (1976) opines that profit maximization can only come about through an efficient  and effective management process  and Nigeria being a developing country it is clear that the cost of running a business is increasing at a very high rate.  Many manufacturing companies in Nigeria has this as a problem  them struggle to maintain reasonable amount of earning in a situation where costs are rising there by making profit margin more and more difficult to sustain  mean while the Nigeria manufacturing companies as reported  by he manufacturing association of Nigeria (MAN) in its 1997 economic review are faced with escalating costs of production arising from the adoption of macro-economic policies which are inflationary in nature. This trend reinforces the imperativeness of the application of sound management accounting technique in the manufacturing companies.

Interestingly Adewumi (1989) posits that management practice is yet to have its rightful place in Nigerian manufacturing companies.  The implication is that the principle of management is rarely applied in most manufacturing firms in Nigeria.

A careful study of Nigeria manufacturing companies shows as decrease in productivity this is as a result of gross incompetence and lack of motivation on the part of the top management and their subordinates consequently there has  with the general planning and control of the firms resources thus profit maximization is firmly rooted in the effectiveness of the planning and control of the firms resources.  Generally speaking the  role of a management  accountant is based on his technical knowledge experience and judgment in contributing to the success of the manufacturing industry.

 

  • STATEMENT OF PROBLEM

There has been a considerable lack of appreciation by  many as to the intrinsic value of management accountants.  Manufactures like other business executions have had to appreciate where such value have stimulated the development of management accounting as an information tolls in business organization.  Such events includes the increased competition in business and rapidly developing technology. The resultant changes that have emerged have intensified mangers need for information  that is continually for financial information beyond that contained in the traditional income statement and balance sheet.

Over the last three decades product have become obsolete as an alarming rate. The advent of scientific breakthrough have resulted in the development of many new basic components such as the transistor and electronic “chip” which have literally revolutionalized many industries and their products. Scientific researcher reports that this revolution is only he beginning. Drastic changes have taken place in production method over the last three decades the term ‘Automation’ has crept in and today many product are produced ritually untouched by human hands. For example oil refinery operations are controlled by massive computer networks machine tools are electronically controlled and there are even some entire manufacturing plan where workmen do little more than monitoring instrument panel modes of management and method of decision making have been affected by the development of new and powerful quantitative tolls such as linear programming probability analysis and decision theory. These new tolls which have come to be from the mathematical and statistical sciences are becoming indispensable in day- to day- decision making.

The problem of increase cost of production  have forced   the companies involved to make many adjustment which include modification of product changes in the methods of production and even marketing and the discovering of new sources of financing production some company go as far as reducing the quality of raw material and end up producing less quality producing which cannot help matters in  the long run.

The economic impact of these and other factors have been far reacting as manger of companies are now competing and cost of production escalating these has in effect expanded the role of management accountant as an information tools over the years.

There is also the problem of poor inventory management which leads to  overstocking there by tying down the company’s working capital.

Another kind problem that is facing some companies is the installation of improper plans to reduce cost of production so as to maximize profit e.g. making use of low quality raw material.

 

  • PURPOSE OF THE STUDY

It is that the roles of management accountant analysis information and  the technique employed to the achievement of profit maximization the purpose of this study therefore is to intimate the top level managers of the crucial role of the management accountant in the overall management process planning and controlling in order to ensure profit maximization.

 

  • SIGNIFICANCE OF THE STUDY     

The management accountant makes the necessary information available to the management by he application of his skill and knowledge.

The significance of this study is to bring to the notice of the management the exemplary role of the management accountant and the techniques he use to provide information and also how these would affect the operations and the attainment of the organizational goal if these information provided are not recommended  for use by the management.  With such knowledge and information put to use management would be able to plan control the organizaiton such that the cost of operating the business will be at a minimum while profit will be enjoyed at the end.

 

  • STATEMENT OF HYPOTHESIS

H0:    Cost are not classified by management accountant to provide useful information for profit planning

H1:    Cost are  classified by management accountant to provide useful information for profit planning

H0:    The Company’s fixed costs are not always constant over the relevant range of output

H1:    The Company’s fixed cost are  always constant over the relevant range of output

 

  • SCOPE OF THE STUDY

In a bid to keep the project within a manageable limit and in view of the limited time and resources available to the researcher he has localized and confined the study to the manufacturing companies in Enugu.

 

  • LIMITATION OF THE STUDY

Some of he limitations encountered by he researcher in the process of preparing this work are:

  1. The time available to carry out the research is very short and insufficient besides the research has some other courses in the school curriculum to contend with so as to present a good result.
  2. The researcher had difficulties in finding related literature on this topic which would have assisted him in presenting a comprehensive work.
  3. The research lacked finance with which to administer the questionnaires facilitates follow up visits and some other requirements
  4. The researcher sometimes lacked cooperation from the company executives who often time complained of sufficiency of time for proper attention.

 

  • DEFINITION OF TERMS
  1. Profit maximization: Making great profit out of the little resources available
  2. Role: A part, which a person plays in real life.
  3. Firm: A business concern or a company.
  4. Management accountant: This is a person who is responsible for keeping account i.e. keeping records of amount spent and that received and also providing management information.
  5. Journal: A newspaper or magazine that deals with a particular subject or profession
  6. Linear programming: This is a mathematical technique concerned with the allocation of scarce resources. It optimize the value of some objectives.

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

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

MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
 GTBANK
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

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

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

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

Enter Amount

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

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

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