IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON THE PERFORMANCE OF FLOUR MILL NIGERIA PLC

ABSTRACT

Corporate Social Responsibility is a wonderful but still new concept in the business arena. The researcher investigated what relationship exists between Corporate Social Responsibility and Organization Performance? What specific ways has the organization adopted in integrating the Corporate Social Responsibility strategy with its operations? And how can Corporate Social Responsibility strategy be improved upon in other to improve the organization’s performance? From the literature reviewed, some writers saw Corporate Social responsibly as a concept that businesses can adopt when they feel like, because according to them, there is no inherent benefits accruable from such practices whereas a majority of others are in support of it. In this study, the researcher has concentrated on the responses of the employees, whose decisions and actions improve or mar the success of the organization. To reduce the variableness and biasness, the researcher made use of primary and secondary data, questions were framed around these factors and responses to them were carefully noted. The statistical tool employed for analyzing the data collected for this research include simple percentage, mean and frequency distribution table. The Chi-square (X2) was used for testing the hypotheses to determine how respondents react to issue concerning Corporate Social Responsibility. The research analysis and conclusion were based on results of the interviews from Flour Mill, Kaduna. The results pointed out that there is a positive correlation between Corporate Social Responsibility and the growth and development of companies. The result also shows that the organization integrates Corporate Social Responsibility into its operations to improve organizational performance. Finally, the researcher recommends that Organizations’ code of business conduct should define ethical, legal as well as moral standards and expectation in its daily operations, organizations should take stakeholders’ needs into consideration while making operational decisions and they should maintain a caring workplace atmosphere in which people sincerely care about the well-being of others.

APPRAISAL OF THE USE OF COMPUTER IN INVENTORY CONTROL SYSTEM IN A MANUFACTURING ORGANIZATION

ABSTRACT

The primary objective of this research work, Appraising the use of computer in inventory control system in manufacturing organization is to carry out paper investigation as regards the awareness and reaction of people concerning the project topic, taking Peugeot Automobile Plc Kaduna as a case study.

The write-up center on discussing inventory control system, computer and also the problem of manual inventory control system in an organization.

In order to achieved this goal, the researcher uses questionnaire method of data collection to gather information about the subject matter, from general/inventory staff of Peugeot Automobile Plc.

Hence the data gathered are presented and analyzed in a tabular form in order to give vivid and clear interpretation.

Finally the researcher summaries his findings, draw a conclusion and gave necessary recommendation for Peugeot Automobile and other companies who have not yet computerized their inventory system.

IMPACT OF THE GLOBAL FINANCIAL CRISIS ON THE NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Living in isolation is not the best option for countries in the 21^st country, hence globalization has provided a platform from which happenings in one country can have profound effects on the others especially those that are more involved in the financial market of the world.

Globalization refers to increasing global connectively, integration and interdependence in the economic, social, technological, cultural, and ecological spheres, that is increasingly landing peoples, companies, countries and the biosphere more tightly into pone global system. One of the major adverse effects of globalization in the economic and financial crisis which started in the United State in September, 2007 and has rattled the financial market both the developed and developing economies around the globe. The contagious effect is associated with the fact that world economics are interlinked (global village) such that any economy could be affected through international trade; the dependence of countries on industrial countries for remittance, Official Development Assistance (ODA) and Foreign Direct Investment (FDI). The make up the transmission mechanisms through which the global financial crisis trickled down to developing like Nigeria. The US is largest economy in the world, and many foreign countries including advanced economies invest there. The major industrialized economies provided significant investment to emerging market, accounting for more than 85% of the global out world FDI stock, as a consequence, there are trade and investment linkage between the economics of the USA, advance countries and emerging markets. The financial crisis of 2007-2008 also known as the global financial crisis became heightened in the US in the early 2004 until mid-2007 when it escalated. The crisis is rooted to the mortgage loan crisis which was believed to have been worst since the great depression of 1930’s given the collapse of the large financial institutions, the bailout of banks by national governments, and downturn in stock markets around the world.

At the onset of the crisis, the initial view was that Africa was “decoupled” from the crisis. Schiere (2010) provide two reasons for this view point. Firstly, Africa has limited exposure to the crisis as the continent is not fully integrated into global financial system. Secondly, the growing relationship with Asian countries, in particular china and india, made Africa countries less reliant on traditional development partners, which are suffering from a severe economic contradiction. However this perception proved wrong as the financial crisis did affect Africa, leading to drop in the GDP growth to 20% for 2008, 41% from 2009 and 52% from 2010 (Africa Economic Outlook, 2010). Thus, in late 2008, African countries were not only facing the problem of poverty, inequality, rising commodity price but also growth and labour market problems were added to their structural crisis. Prior to the crisis, the Nigeria economy has witnessed some developmental programs such as the Structural Adjustment Programs (SAP) 1986, Millennium Development Goals (MDG’S) 2001, National Economic Empowerment and Development Strategy (NEEDS) 2001, amongst other sectarian programs. This programs has targets that were distorted by the 2007 crisis. During periods of downturn there are calls for government and other financial institutions to step in to cushion the worst effects of the slowdown in economic activities. The 2007 global recession saw governments around the world making announcements of fiscal stimulus packages to help boost aggregate demand. The freezing of credit market effectively marked the star of intervention by the central banks around the world. In addition to consideration casing of monetary policy across the world, government, in consultation with the central banks, stepped into provide financial support for a wide range of businesses and financial institution together with other fiscal stimulus. In 2005, Nigeria implemented the bank capitalization policy of compelling bank have minimum capital of 25 billion naira that went a long way to put the financial sector on a good path during the financial crisis. This policy may have savage the financial sectors from collapsing totally but its effect could be felt in some sectors (Agu and Yuni, 2011). Thus, the benefits of each packages and weather they amount to a stimulus have been called into question and aroused much debate among economists.

The pursuit of growth, development and creation of employment opportunities by countries shows how important these macroeconomics indicators are to the economy of countries, hence the goals of macroeconomics policy are:

a)     A high and growing level of national output; high levels and rapid growth of output and consumption (output is usually measured by the gross domestics product (GDP), which is the total value of all final goods and services produced in a  given year; also GDP should be high to potential GDP, the maximum sustainable or high employment level of output).

b)    High employment with low unemployment; low unemployment rate and high employment, with ample supply of good jobs.

c)     A stable or gently rising price level or inflation.

Economists evaluate the success of an economy’s overall performance by how well it attains these objectives. Thus based on the above discussion, this study is an attempt to find out the impact of the global financial crisis on Gross Domestic Product in Nigeria.

1.2     Statement of the Problem

Development of the financial system is crucial to the growth of an economy. It leads to the emergence of industries since it finance part of their activities. Financial sector contribute in accelerating the growth of other sectors that lead to economic growth in the long (Levine, 1997). In Nigeria financial system has no doubt made remarkable impact on the country’s GDP. Yet, in 2008, the financial system has not fared better, as unprecedented recession has taken it by force causing untold losses and decline in stock prices to investors and further creating crisis of confidence about the competence of the regulatory authorities to handle the situation. The aftermath of the economic meltdown is still felt by the financial system since the bailout packages by various governments do not seems to be much effective. Nigeria was not immune to the financial crisis especially considering the loss of substantial revenue rising from the fall in oil prices (Iweala, 2009).

Therefore, this study is aim to examine whether the periods of Global Financial Crisis and its aftermath has any significant impact on Nigerian economy.

1.3     Research Questions

a)     What are the impacts of domestic credit by banks on the Gross Domestic Product in Nigeria?

b)    What are the effects of foreign direct investment on Gross Domestic Product in Nigeria?

c)     What are the causes of financial crises in Gross Domestic Product in Nigerian Economy?

 1.4    Objectives of the Study

The broad objective of this research is to analyse the impact of the global financial crisis on the Nigeria economy.

          The specific objectives are:

a)     To examine the impact of domestic credit by banks on Gross Domestic Product in Nigeria.

b)    To evaluate the effect of foreign direct investment on Gross Domestic Product in Nigeria.

d)    To investigate the causes of financial crises in Gross Domestic Product in Nigerian Economy.

1.5     Significance of the Study

The study is carried out to provide an insight and improve public knowledge on the impact of global financial crises to the Nigeria economy. The study is also aimed to improved and add to the existing literature on the subject matter and a good source of reference for students, researchers, policy makers and economists who may want to know the extent to which he financial crises affects the economy it will help to prevent reoccurrence of such financial crisis in the future.

1.6     Scope and Study Area

It is noteworthy that every research work has its own scope and area of interest. However, the study essentially would cover the effects of the global financial crisis on Gross Domestic Product in Nigeria economy from year 1991 to 2014, which is a period of 23 years. The data set provided is yearly and the key variables to be considered are GDP growth, domestic credit by banks and foreign direct investment.

1.7     Chapter Organization

The study will be organized in five chapters. Following the introduction in Chapter One, Chapter Two contains the literature review of some work done by others which are relevant to this research. It also discusses the causes of the crises and relevant theories related to the study. Chapter Three presents the methodology that will be adopted in carrying out the research as well as the sources of data. The study however will made the used of trend and Ordinary Least Square (OLS) method that will cover a period of twenty three years. Chapter Four deals with data presentation, analysis and interpretation of results based on the statistical techniques used in the study within the periods under consideration. Chapter Five concludes the research by presenting the summary, conclusion and recommendation of the researched work respectively.

THE EFFECT OF CORPORATE GOVERNANCE CODE ON THE PERFORMANCE OF MONEY DEPOSIT BANKS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

The concept of corporate governance has attracted a good deal of public interest in recent years, because of its apparent importance on the economic health of corporations and society in general basically, corporate governance in banking sector requires judicious and prudent management of resources and the preservation of resources (assets) of the corporate firm, ensuring ethical and professional standards and the pursuit of corporate objectives; it seeks to ensure customer satisfaction, high employee moral and the maintenance of market discipline, which strengthens and stabilizes the bank? Recently, the banking industry in Nigeria has been encountering serious reforms over the past years arising from the Central Bank of Nigeria’s requirement for banks to increase their capital base (share to a minimum level of twenty five billion naira (N25 billion), (Ogeechee 2014). This triggered off several mergers and acquisition that have reduced the number of banks from eighty nine (89) to twenty five (26) banks as at the beginning of 2014 (Kama, 2015) it is imperative to note that at the end of the consultation exercise, the total capitalization (the value of all equities of the banks came to N9970 billion compact to the figure of N572 billion before the commencement of the programme. (CBN annual report 2014)

However, the successful banks accounted for about 93.5% and 87% of the total deposit liabilities and assets of the banking system respectively. (CBN annual report 2014). Before the consultation exercise, the banking industry had 82 active banks whose overall performance led to sagging of customer’s confidence, as there was immerging distress in the industry. The supervisory structures were inadequate as there were cases of official recklessness amongst managers, and the industry was notorious for financial abuses. However CBN blacklisted six (6) officers of banks, including a chairman and a non executive director for unethical practices and professional misconduct.

Corporate governance is designed to promote a diversified strong and reliable banking sector which bill ensure the safety of depositors money and also to explore the relationship between internal corporate governance structures and the performance of money deposit banks in Nigeria. Corporate governance involves monitoring and overseeing strategic direction, social-economic and externalities and constituencies of the institution.

In view of the above background this study investigates corporate governance in money deposit bank.

1.2      Statement of Problem

Money deposit banks and other financial intermediaries are at the heart of world recent financial crisis. The deterioration of their asset portfolios largely due to distorted credit management was one of the main structural sources of the crisis (Sanusi, 2010,Fries, Neven and Sea Bright, 2014 Kashif 2015). To a large extent, this problem was the result of poor corporate governance in countries including Nigeria.

Schjoedt (2014) observed that this poor corporate governance, in turn was very much attributable to the relationships among the government, banks and big business as well as the organizational structure of business; this weak corporate governance is also seen manifesting in form of weak internal control measures, absence of or non adherence to units of authority, insider abuses and fraudulent practices remain a worrisome feature of the banking system.

Poor corporate governance is also seen manifesting inform of un ethical or non conformity to the code of conduct  which hinder the corporate bodies, authorities and other shareholder to aid information and right of the institution 

In Nigeria, among the few empirically feasible studies on corporate governance are the study by Sanda et al (2014) and Ogbechie (2015) that the studied the corporate governance mechanisms and firm’s performance, in order to address these deficiencies, this study is not restricted to the framework of the organization for Economic co-operation and development principle, which is based primarily on shareholder sovereignty. It analyzed the level of central bank of Nigeria code of corporate governance.

Finally, while other studies on corporate governance neglected the operating performance variable as proxies for performance, this study employed the accounting operating performance variable to investigate the existence if any relationship between corporate governance and performance of banks in Nigeria      

1.3      Objectives of the Study

The major objective of the study is the effect of corporate governance codes on the performance of money deposit banks in Nigeria. The specific objectives are to determine:

1.     The need for corporate codes for money banks

2.     The benefit of corporate codes in Ecobank Plc

3.     The obstacles to adherence to corporate codes in Ecobank plc 

4.     The strategies for effective adherence to corporate codes in Ecobank plc 

1.4   Research Questions

To proffer useful answers to the research questions and realize the study objectives, the following questions are stated.

1.     What are the needs for corporate codes for money deposit banks?

2.     What are the benefits of corporate codes in Ecobank Plc?

3.     What are the obstacles to adherence to corporate codes in Ecobank plc?

4.     What are the strategies for effective adherence to corporate codes in Ecobank plc? 

1.5   Significance of the Study

The beneficiary of corporate governance codes on the performance of money banks and how they benefit

Government:  Government will also benefit from the finding of the study with the knowledge of the positive effect of corporate governance in the economy, government will be able to make decision and policies which are favorable to bank and the economic as a whole.

 Shareholders: Shareholders play a key role in the provision of corporate governance. Small or diffuse shareholders exert corporate governance by directly voting on critical issues, such as mergers, liquidation, and fundamental changes in business strategy and indirectly by electing the boards of directors to represent their interest and oversees the myraid of managerial decisions to be taken by the management of the organizations, may negotiate managerial compensation with a view to achieving particular results. 

Debt Holders Debt purchasers provide finance in return for a promised stream of payments and a variety of other covenants relating to corporate behavior such as the value and risk of corporate assets. If the corporation violates these covenants or default on the payments, debt holders are to effectively exert corporate governance as envisaged. Small debt holders may be unable to monitor complex organization and could face the free-niter incentives, as small equity holders. Also, the efficient exertion of corporate control with diffuse debts depends   largely on the efficiency of the legal and bankruptcy systems.

1.6   Scope of the Study

Considering the year 2016 as the year of formation of post consolidation governance codes for the Nigeria banking sector, this study investigates relationship between corporate governance code and financial performance of money deposit banks in Nigeria.

The choice of this sector in based on the fact that the banking sectors stability has a large positive externality system and banks are the key institutions maintaining the payment system

 of an economy that is essential for the financial sector. As to these the scope of the study is based on the  needs for corporate codes for money deposit banks, the benefits of corporate codes in Ecobank Plc, the obstacles to adherence to corporate codes in Ecobank plc, the strategies for effective adherence to corporate codes in Ecobank plc.

The work is restricted to the case study, Ecobank Plc, Ungwa Sanusi Branch, Kaduna, which will lasted for the period of four years (2016 -2019)

Further more; the project focused on money deposit bank because corporate governance problems and transparency issues are more important in the banking sector due to crucial role in providing loans to non financial firms, in transmitting the effects of money to any pulley and in providing stability to the economy as a whole.

1.7      Historical Background of the Study

Ecobank Transnational Incorporated (ETI), a public limited liability company, was established as a bank holding company in 1985 under a private sector initiative spear head by the Federation of West African Chambers of Commerce and Industry with the support of ECOWAS. The dual objectives of ETi are to build a world class Pan African bank and to contribute to the economic and financial integration and development of African continent.

Ecobank Nigeria was incorporated on 7 October, 1986 as a public limited liability company and commenced business on 24 April, 1989. The bank was listed on the Nigeria stock exchange by introduction between 24 April 2006 and remained listed until 31 December 2011. On 30 December 2011, by a Federal High Court sanction of a scheme of arrangement, Ecobank Transnational incorporated (ETI), Lome, incorporated in the Republic of Togo which prior to that date held 85.1% equity shares in the bank, became beneficial owner of 100% shareholding in the bank. The bank is now fully owned subsidiary of ETi and has been re-registered as a private limited liability company at the corporate affairs commissions, Abuja.  The principal activity of the bank is commercial banking which includes domestic and corporate banking services. The bank operates under a commercial banking license with national banking status in line with the Central Bank of Nigeria present banking model.   

1.8      Definition of Terms

Agency theory: Agency theory is directed at the ubiquitous agency relationship in which one party (the principal) delegates work to another (the agent), who performs the work.

Board composition:- this is defined as the proportion of presentation of non executive directors on the board.

Board size:- this is defined as the number of directors both executive and non executive directors on the board of the bank.

Corporate governance:- the method by which suppliers of finance control managers in order to ensure that their capital cannot be expropriated and that they earn a return on their investment.

Financial performance:- This is a measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firms overall financial health over a given period of time

OECD: - The Organization for Economic Corporation and Development

Shareholders:- Shareholders are people who have bought shares in a limited liability company.  They own a part of the company in exact proportion of the shares they own.

CBN:- Central Bank of Nigeria

ETi:- Ecobank Transnational incorporated

ASSESSMENT OF CREDIT MANAGEMENT PROCEDURE IN THE BANKING INDUSTRY

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY 

Excessive emphasis cannot be placed on the need for credit management by the banking industry in running business activities. In the economic activities of any nation, the banking industry plays a key role, and therefore, no economy of the world in the current dispensation can survive without the banks and other financial institutions. A lump of interrelated services to individual, governments, and profit as well as non-profit making organizations are provided by the banking industry. As financial intermediaries, they provide mechanisms by which the deficit unit of the economy such as the acceptance of deposits of classes and qualities with a view of lending to its customers by means of loans and advances.

Banks are positioned to render more services presently due to the new high-technology operations. In the provision of facilities within and between nations for the transfer of funds, this can be found in areas such as, provision of mechanism for settlement of debts, enhancing foreign trade through the provision of letter of credit services, travelers cheques services, assisting in meeting documentation requirement, sale of foreign currencies and its purchase, documentary credit services, acting as agent of customers of Central Bank of Nigeria (CBN) debt conversion scheme, provision of businesses and financial advisory services, issuing house services, trustees and executors of estate, etc.

These vital function performed by banks make them serve as catalysts for economic growth and development. Perhaps, in recognition of these important roles, banks are expected to play in economic growth and development that the financial system of Nigeria was liberalized by the federal government through the Structural Adjustment Programme (SAP) 1986.

In this regard, the Nigerian banking sector has not lived up to expectation because the industry has been bewitched in huge failure and distress between 1990 – 2000. Presently, most industry analysts have attributed this experience to a number of reasons, chief of which will form the focus of this study insider abuse and bad credit management. Credit management includes the following:

·                    Available of Funds:- This involves having enough funds ready to meet or sustain bank liquidity and to grant loan to prospective customers.

·                    Credit Analysis:- This is the analysis of the borrowers to present loss on credit management.

·                    Security:- This refers to an independent investigation on the borrower that he will provide collateral of which its worth will cover up the loan given to him in case he fails to pay back the loan collected.

·                    Credit Granting:- This is the giving of loan, advance or overdraft in accordance with the firm’s policy and in compliance with all statutory regulation.

·                    Regular Review of the Debtor’s Financial Statement:- This will enable the bank to know the financial position of the debtor to enable it demand for easy payment of any loan to prevent losses.            

·                    Control:- This is the management of the elements of debt that is: loan advances and overdraft so as to avoid unsuitable discrepancies

1.2     STATEMENT OF THE PROBLEMS

Banks are classified as to whether they are healthy or distressed by the financial system regulatory authorities from the use of certain systematic criteria for assessing their conditions. The acronym for this system is CAMEL which means:

C -     Capital adequacy

A -     Asset quality

M-     Management competence       

E -     Earning strength

L -     Liquidity ratio

The rating is carried out on a 1 to 5 scale with the best performance scoring. When a bank’s rating is poor, it is a sign of distress which means that the bank is incapacitated to meet its obligation for its customers or at inter-bank transactions. This could re-occur through any of the parameters of measuring the financial strength of banks, such as the annual reports of their statement of accounts. The Central Bank of Nigeria appointed Transitional Supervisory Board (ISB) for six distressed banks during their first quarter in 1995 and in conjunction with the Nigeria Deposit Issuance Corporation (NDIC) assumed control and management of eighteen distressed banks having acquired them for a nominal fee during the third and fourth quarters of 1995. According to Professor Adebayo Adedeji a Nigerian Economist who attempt to highlight the history of distress in banking sector, the first bank failure in Nigeria occurred between 1930 and 1959 when 21 banks failed. In 1954 alone, 16 banks failed. The causes of the mass failure then included: inadequate capital base, fraudulent practices by owners and managers of control by professional bodies, unequal competition from the big foreign owned banks, and manpower shortage.

The following sector by industrial analysts:

·        Insider abuse and poor credit management                

·        Incompetent management  and board

·        Political instability

·        Fraudulent practices

·        Poor staffing

·        Unhealthy rivalry amongst banks 

·        Over dependence on the source of income, foreign trading income.

Among these causes of banks failure, the insider abuse and poor credit management is the one with the most destructive impact on the financial condition and performance of banks.

Section 18 of the Banks and Other Financial Institution Decree (BOFID) states that “no manager or any officer of a bank shall have any interest in loan or credit facility, and if he has any such person interest, he shall declare the nature of his interest to the bank” many directors, managers and officers of banks indulge in granting loans and advances to their private business without a security. As soon as such loan are granted, they are classified as non-performing  and as a result of this, the researcher intend to assess credit management procedure in the banking Industry using the United Bank for Africa (UBA) Plc Kaduna, Kaduna head office as case study.

1.3     OBJECTIVES OF THE STUDY

The aims and objectives of this research work are to give in detail how credit management is carried out in the banking industry, especially in the areas listed below:

·                    Credit policy

·                    Procedures of granting loans

·                    Collection periods etc

Also, for management and directors of financial institutions to manage effectively and efficiently investment in risk assets known as credit objectives which are maximum profitability and satisfactory liquidity ratio to meet customers’ needs. A banks credit policy is a controlled variable which in conjunction with the prevailing socio-economic and political conditions will largely influence the size, composition, pricing and direction of its loans and advances portfolio.

With a good credit policy in place, banks and other financial institution will be capacitated of guaranteeing the realization of their credit objectives.

1.4     RESEARCH HYPOTHESIS  

Here we draw two statements which will be subjected to test in the later part of the work. They are the null hypothesis (H_O) and the alternative hypothesis (H₁).

NULL HYPOTHESIS­

Assessment of credit management procedure does not help to prevent improper utilization of funds and enhance attainment of stated objectives.

ALTERNATIVE HYPOTHESIS 

Assessment of credit management procedure help to prevent improper utilization of funds and enhance attainment of stated objectives.

1.5     SIGNIFICANCE OF THE STUDY

Numerous analysis have studied the trend of credit management and its effect in the banking industry but this study will include credit analysis, evaluation and control procedure to ensure that debts are not overdue for collection and to maintain a set standard for granting of credit. In addition to these, it will also help managers and directors coming up to know the importance of debt management to a firm and that a high level of solvency and liquidity can be achieved or rather maintained where there is good debt management.

1.6     SCOPE OF THE STUDY

The scope of credit management is wide; it is applicable to insurance companies, manufacturing industries, financial institutions, etc to mention but few. The researcher tries to assess the process, policies, procedures, and credit collection periods of credit management in the case study; United Bank for Africa (UBA) from 2014 to 2015.

1.7     HISTORICAL BACKGROUND OF THE CASE STUDY                    

United Bank for Africa (UBA) Plc is one of the leading and oldest financial service groups in Nigeria and Sub-Saharan Africa. In different base of shareholders include: individual institutions and leading international banks such as Dutsche Banker’s Trust and Note dei Paschi di Siena. The Bank was formally known as the British and French Bank during its inception in 1948, the Bank was later indigenized in 1961 and became United Bank for Africa thereafter.

UBA maintains an inventing motivation spirit and has maintained a consistent record of excellence through its collective six decade existence. The following are some highlights:-         

·                    First Nigerian bank to offer an IPO following its listing on the Nigerian Stock Exchange (NSE) in 1997.

·                    Only Sub-Saharan African Bank (ex-RSA) with a branch in the USA (New York Established since 1984) and London in 2007.

·                    First Nigerian Company with a Global Depository Receipt (GDR) programme 1988.

·                    Only Nigerian bank to obtain a banking industry in Ghana.

·                    First ever successful merger in Nigeria Banking History – 2005.

·                    Excellent credit ratings (short and long term); global credit rating (SA) AA+ and A+ in 2005.

·                    First to introduce a branched Nigerian Government Band index – 2006.

·                    First Nigerian bank to surpass the N1 trillion balance sheet size (including contingents) 2006.

·                    First Nigerian Bank to enter into a strategic relationship with the International Finance Corporation (IFC).

·                    The first bank to establish a branch in a University Campus. In recognition of the bank’s relentless efforts in maintaining the leading position over the years, several bodies and institution have given awards and accolades as a token of their appreciation. The following are some of these

·                    African outstanding bank in telecom finance in 2007.

·                    A1+ in Fitch rating 2007

·                    Largest bank in Nigeria by asset, deposit, branches, atm and customers – Fitch 2007.

·                    Largest e-banking footprint in Nigeria 2007.

·                    Africa’s overall Best agent – Money Gram 2007

·                    Number one bank in Nigeria – Augusto and Co. 2007

·                    African Bank of the year 2008

·                    Top 500 Banks in the world in terms of brand value 2009

·                    Best in business among Nigerian Banks, 2009

·                    Outstanding African Bank of the year 2010

·                    Nigeria’s business leaders, entrepreneurs and corporate champion 2010.  

·                    Bank of the year in Africa 2012.

·                    Forbes Africa top 25 companies.

1.8     DEFINITION OF TERMS

Debit:         This is an obligation owned to a creditor (possibility or value of goods services received) but which is yet to be paid for.

Bad debt:   A debt is considered bad when its collection is no longer realistic.

Doubtful Debit:   A debt doubtful when the likelihood of the payment is very slim.

Problem debt:      A problem is any loan or credit in which the lending institution or creditor is having problems concerning its collection and facing a high probability of loss.

Debtor:                Any person or organization owing debt.

Creditor:              A person or organization to whom debt is owed.

Management:      A group of people carrying out certain functions in an organization such as planning. The activity of these people is also referred to as management.

Information:       Processed data used for making decision. Also data arranged in an orderly manner.

Data:                    Raw facts that needs processing or/and arrangement to become information.

Primary Data:     Data collected directly from source.

Secondary Data: Data collected from a source other than the primary source.

Research:             This is a planned, organized, systematic and scientific process of arriving at a conclusion through careful collection, analysis and interpretation of data.