ABSTRACT
The title of the project work is
“the impact of money deposit banks on the economic development if Nigeria. The aims and objectives of this project work
are to examine the activities of money deposit banks in Nigeria, to examine the
impact of money deposit banks on the economic development of Nigeria and to
examine the relationship that exist between money deposit banks and the
economic development of Nigeria.. In order to achieve this, the researcher
employed survey and descriptive method, collect the relevant data. After the
data have been collected and analyzed it was found that money deposit banks
impacts on the economic development of Nigeria. In view of the above, it was
recommended that Government should encourage money deposit banks to grant soft
loans to SMEs as they are the pivot for the development of any nation.
TABLE OF
CONTENTS
Title Page - - - - - - - - - i
Approval Page - - - - - - - - ii
Declaration - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - v
Abstract - - - - - - - - - vi
Table of Contents - - - - - - - vii
CHAPTER
ONE – INTRODUCTION
1.1 Background of the Study - - - - - 1
1.2 Statement of General Problem - - - - 5
1.3 Objective of the Study - - - - - - 6
1.4 Research Questions - - - - - - 6
1.5 Significance of the Study - - - - - 7
1.6 Scope of the Study - - - - - - 8
1.7 Definition of Terms - - - - - - 8
CHAPTER
TWO – REVIEW OF RELATED LITERATURE
2.1 Introduction - - - - - - - 10
2.2 Theoretical Framework - - - - - 11
2.3 Conceptual Framework - - - - - 14
2.4 Empirical Review - - - - - - 16
CHAPTER
THREE – RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - 32
3.2 Research Design - - - - - - 32
3.3 Area of the Study - - - - - - 32
3.4 Population of Study - - - - - - 33
3.5 Sample size and Sampling Techniques - - - 33
3.6 Instrument for Data Collection - - - - 33
3.7 Validity of the Instrument - - - - - 33
3.8 Reliability of the Instrument - - - - 34
3.9 Method of Data Collection - - - - - 34
3.10 Method of Data Analysis - - - - - 34
CHAPTER
FOUR – DATA PRESENTATION AND ANALYSIS
4.0 Introduction - - - - - - - 36
4.1 Data Presentation and Analysis - - - - 36
4.2 Characteristics of the Respondents - - - 36
4.3 Data
Analysis - - - - - - - 39
4.4 Testing Hypothesis - - - - - - 46
CHAPTER
FIVE – FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Findings - - - - - - - - 54
5.2 Conclusion - - - - - - - - 57
5.3 Recommendations - - - - - - 58
References
- - - - - - - - 61
Appendix - - - - - - - - 62
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Money deposit banks are resident depository
corporations and quasi-corporations which have any liabilities in the form of
deposits payable on demand, transferable by cheque or otherwise usable for
making payments.The banking sector in Nigeria in 2010 financial
yearwas oligopolistic in structure as only ten banks 11.1% of the 90 operation
accounted for 54.5% of total assets, 52.4% of total deposit liabilities and
46.1% of total deposit liabilities of deposit money bankas at 31/12/2006
amounted to #2,705 billion. Whilst aggregate credit to the domestic economy
amounted to #1,302.2 billion. In 2006, sectoral allocation of deposit money
banks credit continued to favour the less productive sector of the economy as
only 40.9% of the total credit went to agriculture, solid minerals, exports and
banking down from 46.2% in 2001.In the year 2007, the general performance of
banks was not significantly different from what happened in the previous year.
Economic growth has been a major objective of
successivegovernments in Nigeria. In performing the financialintermediation
role, it has been argued that by virtue of thisfunction that banks generate
economic growth by providingneeded resources for real investment (Shaw, 1973;
Mckinnon,1973). Economic growth is one of the important factors thatimprove
living standards in developing countries. It is anindispensable requirement for
economic development amongother factors. It is believed that the main factors
affectingeconomic growth are labour, capital and exogenouslydetermined
technology. Subsequently the new growth theoriestry to incorporate technology
and human capital asendogenous factors. The role of finance in terms of money
deposit bank was well acknowledged by researchers. The function of these banksas
financial intermediation involves channeling funds from thesurplus unit to the
deficit unit of the economy, thustransforming deposits into loans or credits.
The role of money deposit bank in economic development has been recognized
ascredits are obtained by the various economic agents to enablethem meet
investment operating expenses. For instance,business firms obtain credit to buy
machinery and equipment,farmers obtain credit to purchase machines such as
tractors,seeds, fertilizers, and erect various kinds of farm
buildings.Government bodies obtain credits to meet various kinds of recurrent
and capital expenditures. Individuals and familiesalso take credit to buy and
pay for goods and services(Adeniyi, 2006). According to Ademu (2006), the
provision of credit with sufficient consideration for the sector’s volume
andprice system is a way to generate self employmentopportunities. This is
because credit helps to create andmaintain a reasonable business size as it is
used to establishand/or expand the business to take advantage of economy of
scale. It can also be used to improve informal activity andincrease its
efficiency. While highlighting the role of credit,Ademu (2006), further
explained that credit can be used toprevent economic activity from total collapse
in the event of natural disasters such as flood, draught, disease or fire.
Thebanking sector helps to make these credits available bymobilizing surplus
funds from savers who have no immediateneeds for such funds and thus channels
such funds in form of credit to investors who have brilliant ideas on how to
createadditional wealth in the economy but lack the necessarycapital to execute
the ideas.
1.2 STATEMENT OF THE PROBLEM
It is instructive to note that the banking sector
has stood out inthe financial sector as of prime importance because in
manydeveloping countries of the world the sector is virtually theonly financial
means of attracting private savings on a largescale. Accordingto Adekanye
(1986) in making credit available, money deposit banks arerendering a great
social service because through theiractivities, production is increased,
capital investment areexpanded and a higher standard of living is realized.
However,in Nigeria as in many other developing countries, the ratio of bank
credit to the private sector to GDP has not increasedsignificantly. This has
made it necessary to examine the impact of money deposit banks on the economic
development of Nigeria.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
1. To
examine the activities of the money deposit banks.
2. To
examine the impacts of money deposit banks on the economic development of
Nigeria.
3. To
examine the relationship between money deposit banks and economic development
of Nigeria.
1.4 RESEARCH QUESTIONS
1. What
are the activities of the money deposit banks?
2. What
are the impacts of money deposit banks on the economic development of Nigeria?
3. What
is the relationship between money deposit banks and economic development of
Nigeria?
1.5 HYPOTHESIS
HO: There is no significant relationship
between money deposit banks and economic development of Nigeria.
HA: There is significant relationship
between money deposit banks and economic development of Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
1. The
result of this study will educate the general public on the relationship
between money deposit banks and economic development of Nigeria.
2. This
research will be a contribution to the body of literature in the area of the
effect of personality trait on student’s academic performance, thereby
constituting the empirical literature for future research in the subject area.
1.7 SCOPE OF THE STUDY
This study will cover the impacts of money deposit
banks on the economic development of Nigeria.
1.8 LIMITATION
OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the
researcher in sourcing for the relevant materials, literature or information
and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously
engage in this study with other academic work. This consequently will cut down
on the time devoted for the research work