| Content | This project work is on Internal auditing as an aid to management
ABSTRACT
This research work deals with internal audit as an aid to management. It aims at finding out the role of internal audit in management decision making in organizations. It is a survey research. Data were collected from primary and secondary sources which included using questionnaires, personal observations, text book, journal and internet. Sample of 92 were collected by random sample method. Three hypotheses were formulated and tested using Z-test statistics, while questionnaires were analyzed using simple percentages. We discovered among other things that internal audit assists management in managerial decisions. We recommended among other things that the auditors be trained in forensic accounting to enable them to be more effective in their duties. | CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
This project is on Analysis of tax morale and tax compliance in Nigeria. The subject of taxation has received considerable intellectual and theoretical attention in the literature. Taxation is one of the most volatile subjects in governance both in the developing and developed nations. Tax refers to a “compulsory levy by a public authority for which nothing is received directly in return” (James and Nobes, 1992). According to Nightingale (2001), “a tax is compulsory contribution, imposed by government, and while taxpayers may receive nothing identifiable in return for their contribution, they nevertheless have the benefit of living in a relatively educated, healthy and safe society”. She further explains that taxation is part of the price to be paid for an organized society and identified six reasons for taxation: provision of public goods, redistribution of income and wealth, promotion of social and economic welfare, economic stability and harmonization and regulation.
In other words, a tax is an imposed levy by the government against the income, profits, property, wealth and consumption of individuals and corporate organizations to enable government obtain the required revenue to provide basic amenities, security and well-being of the citizens. First detailed information about taxation can be found in Ancient Egypt (Webber and Wildavsky, 1986). The Pharaohs appointed tax collectors (called scribes) and paid them high salaries to reduce the incentives to enrich themselves. Furthermore, scribes working in the field were controlled by a group of special scribes from head office. Today, corruption of the tax agency is still a problem, especially in developing countries.
According to the traditional model of tax compliance by Allingham and Sandmo (1972), taxpayers choose how much income to report on their tax returns by solving a standard expected utility-maximization problem that trade off the tax savings from underreporting true income against the risk of audit and penalties for detected non compliance. In this framework, both the threat of penalty and audit makes people pay their taxes (Allingham and Sandmo, 1972).
Some preliminary tax morale research was conducted during the 1960s by the Cologne School of Psychology, that tried to narrow the bridge between economics and social psychology by emphasizing that economic phenomena should not only be analyzed from the traditional neoclassical point of view but also from social psychology perspective. In particular, they saw tax morale as an important and integral attitude that was related to tax noncompliance.
Tax morale is defined as the “intrinsic motivation to pay taxes”. Torgler (2002) and Fred (2003) stress its relevance to understand the high observed level of compliance. Three key factors are important in understanding tax morale: they are, moral rule and sentiments, fairness and the relationship between taxpayer and government. According to James, Murphy and Reinhart (2005), tax laws cannot cope with every eventuality and has to be supplemented with administrative procedures and decisions and just as importantly, in order to work, it has to have a reasonable degree of willing compliance on the part of the taxpayers themselves.
Therefore, a more appropriate definition of compliance could include the degree of willingness with tax laws and administration that can be achieved without the immediate threat or actual application of enforcement activity. Tax compliance may be viewed in terms of tax avoidance and evasion. The two are conventionally distinguished in terms of legality, with avoidance referring to legal measures to reduce tax liability and evasion as illegal measures. Compliance might therefore be better defined in terms of compliance with the spirit as well as the letter of the law (James, Murphy and Reinhart 2005).
Nigeria is governed by a Federal system and the government's fiscal power is based on a three- tier tax structure divided among the Federal, State, and Local governments, each of which has different tax jurisdictions. The Nigerian tax system is lopsided. The federal government controls all the major sources of revenue like import and excise duties, mining rents and royalties, petroleum profit tax and company income tax, value added tax among other revenue sources. State and local government taxes are minimal, hence, this limits their ability to raise independent revenue and so they depend solely on allocation from Federation Account.
In 1992, the government introduced self assessment scheme, under which a taxpayer is expected to fill a tax assessment form to determine his taxable income. Here, the intrinsic motivation to pay tax (that is, tax morale) will determine the level of compliance with reporting requirements. Which means that the taxpayer files all required tax returns at the proper time and that the returns accurately report tax liability in accordance with the law. The advent of democratic rule in 1999 has put greater pressure on the three-tier of governments to generate enough revenue and meet electoral promises in terms of provision of basic necessities and infrastructure for the economic empowerment of the people. To achieve these goals taxpayers must pay their taxes willingly as and when due. In other words, a high tax morale is required from the taxpayer in order to achieve a high degree of tax compliance.
Webley et al. (1991), detect a positive relationship between government performance and tax compliance But in spite of all the researches that have been done, more empirical work is needed to confirm the existence of these relationships and to measure the strength of their influence on tax compliance. This is particularly so, since tax compliance is of obvious importance fo r most countries. This work aims to study tax compliance in Nigeria, thereby supplementing empirical research on this important international problem. This is therefore an opportunity to take a stroll through theoretical and empirical findings in the tax morale literature, focusing on Personal Income tax morale.
1.2 STATEMENT OF RESEARCH PROBLEM
Low tax compliance is a matter of serious concern in many developing countries. This is because it limits the capacity of government to raise revenue for developmental purposes (Torgler, 2003). This implies that the higher the revenue, the more likely government will put in place developmental plans for the enhancement of the living standard of the people. This is because when people pay taxes more revenue accrues to the government. The major problem of this research therefore, is to determine the effect of tax morale on the taxpayer in compliance with tax policies of government as a useful avenue for revenue generation.
The more modern approach to tax compliance has benefited from many contributions from different disciplines. There is a range of factors that might influence taxpayers behavior. For instance, work in sociology has identified a number of relevant variables such as age, gender, race and culture. The role of individuals in the society and accepted norms of behavior have also shown to have a strong influence (Wenzel, 2002). Also Polinsky and Shavell (2000), present a survey of the economic theory of public enforcement of law, and emphasize the aspect of social norms, that can be seen as a general alternative to law enforcement in channeling individual behavior.
There are limits for a government to increase compliance using traditional policies such as audits and fines. Therefore, if the government can influence a norm, tax evasion can be reduced by policy activities. Most researchers on tax compliance for example, (Torgler, 2003), (McBarnet, 2003) and (Murphy and Harris, 2007). focused their attention on the Western World and some Asian countries. Socio-cultural factors are important components in the lives of a people and given the deep-rooted and pervasiveness of these in the Nigerian societies, there is a clear need for more empirical research on the factors involved in the decision making process regard ing compliance, since a better understanding of these factors can give birth to strategies that improve compliance. It is therefore, the focus of this study to subject tax compliance to empirical analysis in the Nigerian context.
1.3 OBJECTIVES OF THE STUDY
The general objective of this study is to determine the effect of Tax Morale on the taxpayer in compliance with tax policies of government in Nigeria. In doing so, it seeks to:
i Determine the extent of tax morale on the tax payer and its effect on tax compliance.
ii Ascertain the effect of trust in government on tax compliance.
iii Examine the effect of Nigerian Traditional Institution on tax morale of tax payers.
iv Determine the effect of cultural norms on the tax payers morale.
v Ascertain the tax payers confidence in the legal system on tax morale.
1.4 RESEARCH QUESTIONS
This study is an effort at understanding the effect of tax morale on tax compliance in the Nigerian context. Therefore, the study is hinged on the following questions;
i What is the effect of tax morale on taxpayers compliance?
ii Will trust in government affect tax compliance?
iii To what extent has confidence in the legal system affect tax compliance?
iv What is the relationship between Traditional Institution and tax morale?
v To what extent has social norms affect tax morale?
1.5 HYPOTHESES
Hypotheses are assumptions on which a researcher bases his investigation and on the basis of which a confirmation of the assumed conditions are tested and validated. The hypothesis on which this research study is based are stated in null form as follows:
i Hο; Tax Morale has no significant effect on tax payer compliance.
ii Ho; There is no significant relationship between trust in government and tax compliance. iii Ho; There is no significant relationship between the Nigerian Traditional Institution and tax compliance.
iv Ho; There is no significant relationship between taxpayers cultural norms and the extent of their tax compliance
v Ho; There is no significant relationship between the tax payers‟ confidence in the legal system and tax compliance.
1.6 SIGNIFICANCE OF STUDY
1.6.1 Theoretical Significance
The deterrence doctrine can be traced back to the classical works of Jeremy Bentham and Cesare (Murphy,2008). Their classical utility theory of crime is that people are rational actors who behave in a manner that will maximize their expected utility. Becker (1968) argued that authorities needed to and appropriately balance between detection of non-compliers and sanctions to the point where non-compliance becomes irrational.
In the early 1970s, Alligham and Sandmo (1972) extended Becker‟s work on the economics of crime to the taxation context. They examined taxpayers‟ decision to evade taxes when they were filling out their tax returns and examined the relationship between penalty rate for tax evasion at the time, the probability of detection, and degree of tax evasion engaged in. What they found was that there was a relationship between these variables; with a higher penalty rate and probability of detection deterring individuals from evading their taxes. In the 1980s, therefore, many scholars began to question the value of deterrence alone in regulating behavior. They began to focus their attention on researching compliance rather than deterrence and began to realize the importance of persuasion and cooperation as a regulatory tool for gaining compliance. In fact, research has shown that the use of threat and legal coercion, particularly when perceived as illegitimate, can produce negative behavior; these actions are more likely to result in further non-compliance (Murphy and Harris 2007), creative compliance (McBarnet 2003), criminal behavior or opposition (Fehr and Rokenbach 2003).
According to Kagan and Scholz (1984), unreasonable behavior like disrespect for citizens, arbitrary refusal to take their concerns into consideration by regulators during enforcement generates resistance to compliance. Tyler (2006) argues that if regulators are prepared to first engage in dialogue and fair treatment with those they regulate, then, this will serve to encourage support for the law. Most research works in this area of study have focused on Western world and some Asian countries; therefore, the significance of this study lies in the fact that it will provide a framework for inter-state comparison between nations of the world. Moreover, our findings and conclusion will form a basis for further research work.
1.6.2 Practical Significance
With the current effort at social and economic development by Third World countries, a study like this is significant, as it is capable of contributing to the present knowledge in the area of interaction between socio-cultural factors and tax compliance, which may be in terms of consequences for policy issues and development programmes.
1.6.3 Operational Significance
Tyler (1997) has specifically shown that people value respective treatment by authorities and view those authorities that treat them with respect as more entitled to be obeyed. The operational significance of this study therefore, lies in the fact that; tax authorities will tend to be more oriented towards seeking result, through cooperation rather than by coercion alone, and prefer to see themselves as service providers rather than as strict law enforcers.
1.7 SCOPE AND LIMITATION OF STUDY
This study evaluates the effect of tax morale on tax evasion, tax avoidance and tax compliance in Nigeria. The study however, is limited to the study of organizations in the public, private and informal sectors of the Nigerian economy. These organizations are selected because they are duly registered with the Federal Inland Revenue Service and the Lagos State Internal Revenue Service for Pay As You Earn (PAYE). Also from the notes to their audited accounts, there has never been any negative report regarding tax evasion or tax avoidance. The limitation of this study, however, is in the area of methodological constraints in terms of which type of analytical technique is most appropriate for the work. In addition, because of funds and time constraint, the work is further limited to the selected organizations.
1.8 SUMMARY OF RESEARCH METHODOLOGY
The study adopted survey research design for data collection through standardized questionnaires administered to respondents. The population for this study comprised anybody of eighteen (18) years and above who is in employment (both in the private and public) sectors of Nigerian economy. Six organizations in the public, private and informal sectors formed the sample size of this study. Furthermore, a total number of 100 questionnaires were administered in each of the six public and private organizations. The nominal as well as the 7-point Likert Scale was employed in the study.
The data collected allow for measuring tax compliance as dependent variable and to search for factors that shape tax morale. Survey provides a good source of information about tax morale. The main advantage is that they include many socio-economic, demographic and attitudinal variables, thus, in a multivariate analysis; we can analyze what shape tax compliance using the multiple linear regression model. But it should be noted that surveys can be biased if they do not cover a representative share of the population. In other words, a high response rate is required. The sensitive nature of compliance information might discourage participation in such a survey, therefore, to reduce this problem, this study covered a broad variety of questions on different topics. Furthermore, the way we describe tax morale is less sensitive compared to a question asking whether a person has evaded taxes or not. Hence, we expect a higher degree of honesty in the answers to these questions.
1.9 SOURCES OF DATA
The study made use of primary source for data collection through standardized questionnaire administered to respondents and literatures. Questionnaire was administered to the respondents because of its advantage. It enables vital information, which cannot be obtained from written records to be at the disposal of the researcher. This is because in a questionnaire, the respondent's anonymity is assured.
1.10 OPERATIONAL DEFINITION OF TERM
Tax; Tax is an imposed levy by the government against the income, profit, property, wealth and consumption of individuals and corporate organizations.
Tax Evasion; Tax evasion is a deliberate act on the part of taxpayer not to pay tax due.
Tax Avoidance; Tax avoidance is a way of identifying the loop-hole in the tax law and then taking advantage of such a loop-hole to reduce the tax payable.
Tax aversion; Tax aversion is a situation where the tax law might be unclear, thereby, confusing taxpayer as to the correct tax payable.
Tax Morale; Tax Morale is the intrinsic motivation to pay tax.
Tax Compliance: Willingness to pay taxes without threat or coercion
Social Norms: A set of behavioural models and rules or standard of behaviour shared by members of a social group.
Cultural Norms: Are behavior patterns that are typical of specific groups.
Legal System: A system for interpreting and enforcing the laws
Tax System: A legal system for assessing and collecting taxes | CAUSES OF LOW PRODUCTIVITY BY PUBLIC SERVICE WORKERS: A CASE STUDY OF THE NATIONAL ELECTRIC POWER AUTHORITY (EEDC)
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY:
Productivity is very vital for the development of any country because it will help to improve the standard and quality of life of the citizens.
The issue of low productivity by public service workers have in recent time been a matter of great concern to the nation.
Let us first of all define the term or rather make an attempt to the definition of productivity.
Productivity simply means the rate or efficiency of work especially in industrial production. Therefore, low productivity is simply the slow rate and inefficiency of work in production. Increased productivity will help to improve the conditions of the environment as well as enhance security. This is why David Ricado stated in his study of population ?that food needs to grow at a geometrical rate in order to meet the demand of the growing population. This emphasizes the need for increased productivity.
Yesufu T. M. (1962) was of the view that productivity can be defined as the ratio between output and all the resources used in production, i.e. capital, labour, raw materials etc. The problem of raising output is one of making the most efficient use of all available resources.
With these definitions, one may ask ? Why is the Nigerian Public Service workers inherently characterized by low productivity inspite all government?s efforts to improve productivity?
Increasing productivity is a way of increasing the ability of people to do what they want to do as such that it can provide the wherewithal for achieving a higher standard of living for those suffering from low income and inversely boosting the prosperity of the overall Nigerian economy.
1.2 STATEMENT OF PROBLEM:
There have been concerned efforts by the government and the organized private sector to enhance productivity in Nigeria. For instance, the Federal or State Government organizes seminars and workshops aimed at making its personnel to increase productivity. We also have the National Productivity Centre and the Federal Government gives merit award to individuals who have distinguished themselves in terms of being highly productive. But in spite of all the efforts being made, the public sector is still experiencing low or decreasing productivity.
Especially in the Public Service today, there is relatively low level of productivity as most of the personnel are not putting in their best; some are idle, others come late to work and still others are absent from work without permission. There is general laxity amongst workers who believe that government work is nobody?s work.
Nigerians cannot withstand the competition in the world market; this is also attributable to low productivity especially in the public sectors. In other countries, their level of technology is very high thereby enhancing their level of productivity which puts them in a favourable position in international market.
This study will therefore provide answers to questions like ? the causes of low productivity in the public sector of the Nigerian economy using NEPA, Enugu North Local Government Area as the case study.
1.3 OBJECTIVES OF THE STUDY:
In view of the fact that the issue of low productivity has become a matter of great concern to the various sectors of the Nigerian economy, against this backdrop, the objectives of this study are aimed at finding out:
i. Why productivity is low in the public sector
ii. The roles of motivation in productivity
iii. Also the management problems that causes inefficiency and low productivity of workers.
1.4 RESEARCH QUESTIONS:
In pursuance of this study, the following research questions were considered relevant. Though the research questions were formulated based on the objectives of the study;
i. What are the ways or means through which the management of NEPA motivates their workers?
ii. How does motivation relate to productivity in an organization?
iii. What are the relevance of motivation in the management of public organizations (NEPA)?
iv. How does motivation serve as a management tool for increasing productivity?
v. What are the management problems that cause inefficiency and low productivity of workers?
1.5 SCOPE OF THE STUDY
According to Osuala (1985:27) an adequate statement of the problem also defines it very carefully in terms of its scope, and it is obvious for a researcher to set forth the bounds of the topic being researched on.
Based on this, the scope of this study covered the National Electric Power Authority (NEPA) within Enugu North Local Government Area.
1.6 LIMITATION OF THE STUDY
A study of this nature cannot be completed successfully without the researchers encountering some major constraints. Against this backdrop, one of the major constraints of this study was inadequate time.
Another limitation to this study was inadequate fund, which would have marred the efforts of the researchers.
Moreover, a major limitation to this study was the uncooperative attitude of some of the respondents (ie the workers) from the organization under study especially as it concerned the completion of the copies of questionnaire administered to them.
1.7 SIGNIFICANCE OF THE STUDY
This study would be of immense benefit to the government and the management of public organizations especially those who are indifferent to the plights of the workers, since the study through the recommendations provided solutions and suggestions through which workers could be gingered for greater performance. A major significance of this study is that it will serve as another contribution to the academic development of the theories of productivity.
1.8 HISTORICAL BACKGROUND OF ENUGU NORTH LOCAL GOVERNMENT
Enugu North Local Government Area was formed in 1991 after the creation of Enugu State. This Local Government was carved out from the then Enugu Local Government which was a premier Local government Area in the former Anambra State.
Enugu North Local Government is bounded on three sides by three Local Government Areas. These Local Government Areas are: Enugu South Local Government in the South, Enugu East Local Government in the East and Udi Local Government on the Western side of Enugu North Local Government Area.
Within Enugu North, there exist four notable markets, these markets are:
a. The famous Ogbete Main Market, which is the biggest market in Enugu State. It is sighted within the nerve center of Enugu North Local Government.
b. Aria Market which is situated between the Iva-Valley Coal Mine and Enugu Gold course.
c. Enugu Industrial Market at Coal Camp where motor parts are sold and manufactured.
d. The New Haven Ultra Modern Market, Enugu.
Enugu North Local Government has three tertiary institutions located within its locality. There are namely:
i. University of Nigeria Enugu Campus (UNEC)
ii. Enugu State University of Science and Technology (ESUT)
iii. The Institute of Management and Technology (IMT), Enugu.
Enugu North is also endowed with some tourist attractions such as: The Modern Amusement Park (Polo Park) with its unique facilities.
B. An Art Gallery within the complex of Institute of Management and Technology, Campus II on Okpara Avenue, Enugu.
C. The Enugu Zoological garden and
D. The National Archives all situated within or very close proximity to each other.
There is also the International Trade Fair Complex, and within this complex is a communication outfit by NITEL for International and Local calls.
Enugu North Local Government has two indigenous communities namely:
i. Hill-top Indigenous Community in Enugu-Ngwo and
ii. Ogui ? Nike indigenous community.
1) HILL-TOP INDIGENOUS COMMUNITY IN ENUGU NGWO:
Enugu-Ngwo which is the oldest name since 1915, Pre and Post Colonial naming of the entire urban city had the prefix Enugu-Ngwo attached. Moreso, before 1906 when Coal was discovered and later the mining of Coal, Enugu-Ngwo indigenes were basically farmers who cultivate cassava, vegetables and yam which they market in the open market which is today referred to as Ogbete Main Market.
Enugu-Ngwo people are very welcoming to strangers. Their cultural affinity and behavioural pattern make them homely with strangers from all facets of live. The presentation of all their farm land for use to the Colonial Administration for building of Government Reserve Quarters, recreational centres and office secretariat both for Local, State and Federal Government speak loud of their welcome behaviour, hospitality and how free minded they are:
The Enugu-Ngwo Hill-Top Community tribal/cultural heritages are the same with other communities but with a slight difference. Biennially, Ngwo people celebrate the most exciting carnival in the world known as ?ODO FESTIVAL.
2) OGUI-NIKE INDIGENOUS COMMUNITY:
Ogui-Nike is the Premier Indigenous Community within the Enugu North Local Government Area. It is an autonomous community having its own Traditional Ruler in the person of IGWE ANTHONY OJUKWU, Chinenyeze I of Ogui Nike.
It is situated virtually in the center of the vast expanding metropolis of Enugu, Ogui-Nike still maintains its uniqueness and customs although it forms part of the large NIKE CLAN.
The Nike clan extends from the Milikin Hill in the West, to Emene in the East and from Ugwuogo in the North to Ogui-Nike in the South.
The place and importance of Ogui-Nike in the Enugu metropolis is preserved by the naming of the longest and most important Road in Enugu as OGUI ROAD in addition to the part of Enugu urban known as OGUI TOWNSHIP. The Asata River too which formerly separated the township from the rural village until the emergence of the Independence Layout is also preserved by the ASATA TOWNSHIP in Enugu.
The Presidential road leading to the Independence Layout divides the community into two halves and together with the famous Obiagu Road form the major roads in the town.
During the festive seasons, a visit to these two major roads will witness the display of the culture and traditional ceremonies of the community.
The festive seasons include the New Yam Festival which usually takes place between July and August every year, and the EGWUGWU Masquerade Festival which is biennial and can take place in March or April.
Christian Festivals of Easter, Christmas and New year are also observed since most of the indigenes are ardent Christians.
The minor market in Ogui-Nike is the Afia-Nine where vegetables and crops from the rural areas are brought and sold to the urban dwellers. This market is quite popular as people come from far-away places to obtain these rural farm produce.
Finally, Enugu North Local Government has had several Chairman since its formation, but presently, the name of the current Chairman is Hon. Emma Ugwu, while the name of the Personnel Manager is Barr. Asogwa. Enugu Central was carved out from it and it is called Enugu North Development Centre.
1.9 PROBLEMS HINDERING PRODUCTIVITY IN ENUGU NORTH LOCAL GOVERNMENT AREA:
Many students and known scholars have carried out studies on this issue of low productivity. They have carried out research to find out the real factors responsible for low productivity.
In Enugu North Local Government, various factors were observed as hindering productivity.
Generally, there is this common impression that every Nigerian worker is lazy, slow, sleepy, reluctant to act, unconcerned, and deceitful in their approach.
In the course of this study, the researchers observed the following as some of the problems hindering productivity in Enugu North Local Government:
A. POOR EDUCATIONAL BACKGROUND OF WORKERS: Most of the staff in Enugu North Local Government were discovered to be lacking in terms of their educational background, majority of them had the certificates without the basic knowledge, instruction, abilities required of their jobs. Consequently, most of them finds it very difficult to steer the affairs of their various positions thereby creating lapses here and there which should not have been.
B. LACK OF TRAINING: As rightly defined by Denyer, J. C. (1975), ?training is the adoption or moulding of a pewson to increase his fitness for a specific activity. Training of workers would make them more productive as well as improve their morale, thereby increasing their loyalty and adaptability of their immediate environment.
C. ABSENCE OF PARTICIPATIVE MANAGEMENT:
Permit to say here that when there is an absence of participative management, workers would not be productive. Participative management is a decision making process where workers discuss with their supervisors and influence decisions that affect them. It explores the feelings and opinions of workers about their jobs. With the use of participative management, every group is consulted before any change is initiated. Through this system, every worker develops a sense of participation, which results in high productivity.
D. POOR COMPENSATION OF WORKERS: Compensation packages are reward for performance. They can be in either cash items such as salary, allowances and Christmas bonus or in non cash items which we call fringe benefits such as giving the Local Government workers some items from the governments inscripted products such as calendars, cups, wall clocks, etc. ?
When there is poor compensation of workers, the workers will not put in their best in their jobs thereby causing low productivity.
E. WRONG CHOICE IN DELEGATION: Delegation as we know is an organizational process that permits the transfer of authority from a superior to a subordinate to make commitments, use resources and take action in relation to duties assigned to him. No government can function well and effectively without delegation.
Therefore, when wrong people or workers are delegated, this will drastically affect the anticipated results which consequently will be detrimental to the level of productivity.
F. THE LEADERSHIP: This is one major problem that will hinder productivity in any government. While conducting this research, it was discovered that workers in Enugu North Local Government finds it a bit difficult with their boss, which is the Chairman.
Most of them complained of him being too authoritative, which is characterized by centralization of authority and decision making in the boss.
Although this type of leader tends to emphasis neither negative nor positive leadership, he motivates his subordinates by forcing them to rely upon him for need satisfaction. As such he takes full authority and responsibility for the work to be done. One may argue that in government, things are different, but no matter the institution or organization, the type of leadership goes a long way to either make or mar the level of productivity of that organization or institution.
G. DIFFERENT SALARY SCALES: In Nigeria generally where standard of living vary from area to area, to motivate workers, it is important that an evaluation bearing in mind cost of living, styles and standards of living in different cities in our country is carried out.
In Enugu North, workers know that standard of living vary and that a pay system based on differential living standards would increase the motivation to work.
Also if remuneration is not based on performance as in the case of Civil Service, it will not motivate. But if a worker realizes that if he works hard, he stands to be recognized by paying him extra, then he will be motivated to work there being more productive.
All these and many more are some of the problems found to be hindering productivity in Enugu North Local Government.
1.10 DEFINITION OF TERMS:
1. PRODUCTIVITY - Increased efficiency and the rate at which goods are produced.
2. WHEREWITHAL - Things required or needed for a purpose.
3. LAXITY - Careless or not strict in discipline or morals.
4. TECHNOLOGY - Mastery and utilization of manufacturing methods and industrial arts.
5. PUBLIC SECTOR - The area of the economy concerned with the government.
6. GEOMETRICAL RATE - Series of numbers with a constant ratio between a successful quantities of the numbers which increase by a common multiplier or decrease by a common division.
7. ECONOMY - System for the management and use of resources.
8. PRODUCTION - The fabrication of a physical object through the use of labour, materials, money and equipment.
9. PROTOCOL - Etiquette applying to rank or status, correct procedure.
10. REMUNERATION - Pay or reward for services rendered
11. MOTIVATION - Causes or reason for the actions of a person, reflection of a persons desire to fulfill certain needs.
12. BIENNIALLY - Happening every second year, or happening once in every two years.
13. PROXIMITY - Nearness to each other.
CAUSES OF LOW PRODUCTIVITY BY PUBLIC SERVICE WORKERS: A CASE STUDY OF THE NATIONAL ELECTRIC POWER AUTHORITY (EEDC) | THE ROLE OF FINANCIAL CONTROL INSTITUTIONS IN PROMOTING FINANCIAL ACCOUNTABILITY IN THE PUBLIC SECTOR: A STUDY OF PLATEAU STATE NIGERIA UNDER DEMOCRATIC REGIMES
CHAPTER ONE
INTRODUCTION
This project focuses on the role of financial control on selected institutions in promoting financial accountability in the public sector with a study of plateau state under democratic regimes. Nigeria, a federation of thirty-six States and Seven Hundred and seventy-four local governments, was a colony of Britain but became an independent State in 1960. It has a population of nearly one hundred and twenty million people and the dominant source of income is oil (Oladosu and Oyelakin 2003:1).
Nigeria has been divided into six geo-political zones - South-South, South-West, South- East, North- East, North -West and North- Central. Plateau State falls within the geo-political zone of North-Central. The State was first created as Benue-Plateau in 1967. It later became Plateau State with the creation of Benue State in 1976. Nassarawa State was also created out of Plateau State in 1996.
The Nigerian public sector consists of the governments at the Federal, States, Federal Capital Territory, Local Governments and all government parastatals. The public sector plays an important role in economic development. It provides services which the private sector may not be willing or able to provide. Chan (1988:15) argues that
the public sector provides many essential services to society. It plays an essentially compensatory function; that is, it performs those functions that the market economy does not do efficiently or lacks the incentive to do at all.
Musgrave and Musgrave (1976) classify these functions as
- Resource Allocation - the provision of public goods and services.
- Income Distribution - the adjustment of the distribution of wealth or income in the society to conform to some principle of fairness.
- Stabilization - the use of fiscal policies to achieve high employment, price stability and economic growth.
In a Federal system like Nigeria, the different tiers of government perform these functions in varying degrees. Governments at all levels desire to deliver good governance to all their citizens. This is because “good governance is central to creating and sustaining an enabling environment for development” (Asselin, 1995:3). A strong link exists between economic development and good governance, and between good governance and fiscal transparency.
The importance of good financial management in achieving the objectives of government has not lost its relevance. Because of this, the financial accountability of most countries is enshrined in the Constitution to facilitate the discharge of financial accountability. Oshisami and Dean (1984:36) remark that in recognition of the importance of finance as a basis for political power, and the opportunities which absolute control offers for its abuse, power over finance is divided, the division being formally recognized Constitutionally in virtually all countries.
Global practice shows that power over finance is shared between the Executive and the legislature and in some cases with an independent body - the Supreme Audit Institution. Has this Constitutional sharing of power over finance achieved the desired result?
In view of the enormous responsibilities placed on government for the welfare of its citizens, the public sector needs a lot of resources. In pursuit of this, the government needs to put up a framework for the management and control of the public purse. The formalities established in relation to accounting and financial control support the process of governance
The term ‘control’ has long been recognized as one of the principles of management. Control exists in most human endeavors. Most authorities agree on what constitutes control. Lucey (1996:137) states that control is concerned ‘with the efficient use of resources to achieve a previously determined objective, or set of objectives, contained within a plan’. Similarly, Koontz, Donnel and Wiehrick (1980:81) define control as the measurement and correcting of activities of subordinates to assure that events conform to plans. Ekwonu (1996:35) states that control ‘is the measurement of the performance of the activities of subordinates in order to make sure that objectives and plans devised to attain them are being accomplished’. All these definitions point to the fact that control exists to ensure that organizational objectives are met through measurement of performance. The control process according to (Koontz et al 1980:722) involves three steps:
- Establishing standards
- Measuring performance against these standards and
- Correcting deviations from standards and plans
Finance occupies a special place in the conduct of government business. Public finance has been defined by Buhari (1993:66) as ‘a branch of economics concerned with the finance and economic activities of the public sector’.
From these definitions, we can state that public finance not just deal with the ways government raises money, but also the manner such money is expended with the aim of achieving economic growth.
In Nigeria, the Federal government raises money through the following major sources: Petroleum profit tax, Mining, Company income tax, Import duties, Export duties, Excise duties, Interest and repayment of loans granted by the government (Buhari, 1993:169).
Others include; Education tax, Value added tax, Pay-as-you-earn, Fees and charges, Royalties, Rent of government property, Grants, aids and loans.
The money raised through the above sources is expended on the following items: Administration, Infrastructural services, Productive services, Defense, Interest on internal and external loans, and Diplomatic missions (Buhari, 1993:168)
In connection with government finance, we can identify two basic groups of control- administrative and financial control; the former referring to those techniques which have indirect bearing upon expenditure operation while the latter denote techniques of control relating to fiscal control. The emphasis of this study is on financial control.
Financial control is a very important type of control in the management of government finance. Oshisami (1992:29) defines it as the process which ensures that financial resources are obtained at cost considered to be economical and utilized efficiently and effectively for the attainment of established objectives.
A comprehensive definition of financial or fiscal control is given by Ekwonu (1996:33) as the sum total of the work, which guides, directs and interprets the budget cycle. It covers the activities of the Executive branch, involving finance and the ministries... the audit department and the legislature...
In a democratic era, financial control may operate internally and externally.
Within the Executive arm of government control by the finance ministry is internal while audit by the Auditor-General and legislative oversight constitute external control.
- Institutions of Financial Control in the Public Sector
There are formal and informal institutions of financial control over public revenue and expenditure. The formal institutions of financial control include the Executive arm of government, Legislature and Office of the Auditor-General or Supreme Audit Institution. The informal institutions of financial control include; the media, the organised civil society and donor agencies.
With respect to the formal institutions of financial control, the Constitution of the Federal Republic of Nigeria, 1999, establishes a cycle of financial accountability for public funds. The cycle provides that:
- Legislature authorizes expenditure
- The Executive controls the collection and issue of funds. In addition, it prepares the accounts.
- The prepared accounts are audited by the Auditor-General and
- The Auditor-General submits the results of his audit to the Legislature through its Public Accounts Committee (PAC). PAC acts on the report by inviting accounting officers to appear before it where need be.
The wisdom in sharing these responsibilities is that absolute conferment of this power on one arm of government can create abuses in financial administration. In other words, financial administration requires a series of checks and balances so that public funds are not wasted or misapplied. But, is this what we find in practice? Are these checks and balances observed?
The financial accountability cycle provides that the Executive arm of government collects, disburses and prepares the accounts of government. The other formal institutions of financial control are excluded from this very vital stages. Their involvement in public sector financial control is only visible when funds have been expended. Is this not the same as calling a medical doctor to give an autopsy report? What guarantee do we have that this sharing of financial responsibilities promote sound financial management in the public sector? Haven been excluded from the critical stages of collection and disbursement of public funds, can the Legislature and State Audit significantly influence public finance?
In the cycle of financial accountability established by the Constitution, the budget is a legislative instrument of financial control over the Executive. Funds should be expended according to legislative intent as expressed in the budget. Has the Legislature been able to control public expenditure using the budget?
The Office of the Auditor-General is a creation of the Constitution. Therefore his status and duties are constitutionally determined. His basic duty is to report on the accounts prepared by the Executive. In his report to the Legislature he states whether the Executive has complied with legislative approval in its execution of the budget. For the Auditor-General to be able to play this important role he has to rely on the financial data supplied by the Executive. He also needs a strong Legislature to help implement his findings. In practice, does the Auditor-General derive the required support from the Executive and Legislature to perform his Constitutional duty? Has he been able to discharge the functions of his office as stipulated by the Constitution?
Informal institutions of financial control may promote financial accountability over public finance and these include; the mass media, the organized civil society, the World Bank and other international donors.
A vibrant media may promote financial accountability by reporting the findings of the Auditor-General. By exposing wrong doings the media may influence the behavior of public officials who may not want to be publicly exposed.
The organized civil society too, may play a significant role in promoting financial accountability in the public sector. This can be achieved by an active inter-reaction between them and the legislature. Krafchick and Wehner (2002:1) argue that inter-reaction between legislatures and civil society organizations is increasing in many countries... From the legislature’s perspective, the input of civil society can help to make the legislature’s engagement with the budget more effective.
The donor community today is an important institution that promotes financial accountability in recipient countries. They encourage borrowers to strengthen domestic institutions of financial control. Sahgal (2001:1) states that “most donors are now looking for ways to improve their performance in terms of promoting good governance and accountability.”
While these informal institutions may also promote financial accountability, however, it is the formal institutions that are the focus of this research.
Researches targeted at strengthening the institutions of financial control over public funds have ignored the influence of the link between the institutions of control, especially the influence of the Legislature on State Audit performance. For example the researches of Ball et al (1999); Bartel (1996); Asselin (1995); Premchand (1989); Hogy (2004); Dye and Stapenhurst (1998); Martinez-Soliman (2003); Krafchik (2002); Sahgal (2001) and Ahsan (1994) emphasize strengthening the institutions of financial control over public funds in isolation, without establishing the interaction between them.
These researches address the problem of public sector financial accountability arrangements on institutional basis only. They fail to identify the shortcomings of the present cycle of financial accountability over public funds in Nigeria. This research intends to address these shortcomings in the context of Plateau State of Nigeria.
Control of public finance is very important to public governance. That is why power over public finance is enshrined in the Nigerian Constitution. To promote financial accountability in Plateau State, power over finance is shared between the Executive, Legislature and the Supreme Audit Institution or the Office of the Auditor General. Have these institutions been able to play the roles assigned to them?
It is observed that there is the problem of non or partial implementation of the budget by the Executive arm of government in Plateau State. The budget is the legislative instrument of control over public finance.
Related to the issue just raised above, is the problem of spending without legislative authority. The checks and balances on public finance requires that the Executive cannot spend without legislative approval. Even where voted funds fall short of requirements, the spending agency must apply for supplementary appropriations provisions and obtain legislative approval for such additional expenditure before incurring them. It has been alleged that this requirement of the law is not usually followed.
The Executive arm of government which implements budgets is required to ensure that expenditures are properly covered in the relevant Appropriation Acts. Funds are supposed to be apportioned to spending departments in line with the approved budget. It has been noted that public expenditure are frequently made on items not budgeted for, which of course means that such expenditure have no legislative approval. Once the budget has been approved, it is alleged that funds are shifted to purposes other than those for which they were meant.
Limits of expenditure are imposed by the budget. However, spending agencies do not observe these limits when incurring expenditure. In the course of budget implementation, a vote book is maintained to ensure that approved budgetary limits are not exceeded. This aspect of expenditure control is often abused. We may ask, why should spending agencies not respect limits when incurring expenditure? With all these abuses, what has happened to the legislative oversight function?
The performance of the Auditor General in Plateau State has been called to question. It is alleged that the Auditor General is incapable of discharging the functions of his office which is constitutionally prescribed. If this is true, why?
The Plateau State Legislature is seen to be weak and unable to discharge its constitutional responsibility of exercising its power of financial oversight on the
Executive arm of government. This problem is alleged to have adverse effects on the performance of the State Auditor General.
Public financial control in Plateau State also suffers from poor financial record keeping. Where financial records are poorly maintained, can the reliance of the Auditor General on these records adversely affect his performance? In addition, if it is true that financial records are poorly maintained in Plateau State, is this a function of the qualification of those who keep these records? How do these problems listed above impact on financial accountability in Plateau State?
The questions of this research are as follows:
- Is the Budget a significant instrument of Legislative control over public finance in Plateau State?
- Are the rules and regulations governing the use of public funds being observed in Plateau State?
- Does the quality of legislative financial oversight enhance the performance of State Auditors?
- Does the reliance of the Auditor-General on financial statements prepared by the Executive enhance his performance?
- Is there any relationship between educational/professional qualification and the number of financial records kept in Plateau State?
- Do the formal institutions of financial control play their roles as spelt out by the Constitution?
This research sets out to evaluate the role of the formal institutions of financial control over public finance in Plateau State. Specifically the research has the following objectives:
- To evaluate the significance of the public budget as an instrument of legislative control over public finance in Plateau State.
- To determine whether the reliance of the Auditor-General on the financial data supplied by the Executive enhances his audit work.
- To examine the quality of legislative oversight function on State Audit performance.
- To investigate the significance of the qualification of Treasury staff on the number of financial records kept.
- To recommend measures on how to improve financial accountability in Plateau State.
Hypothesis One
Ho The public budget is not a significant instrument of Legislative control over
public finance in Plateau State.
H1 The public budget is a significant instrument of Legislative control over
public finance in Plateau State.
RATIONALE/JUSTIFICATION
The budget is an expression of legislative approval on how public funds should be disbursed. Budget implementation is used to judge the Executive’s conformance to this legislative approval.
This hypothesis is formulated to find out whether or not the Executive complies significantly with Legislative approval during budget implementation.
Hypothesis Two
Ho The performance of the Auditor-General is not significantly dependent on the
financial statements prepared by the Executive arm of government.
H1 The performance of the Auditor-General is significantly dependent on the
financial statements prepared by the Executive arm of government.
RATIONALE/JUSTIFICATION
The Auditor-General is an agent of the Legislature. The Auditor-General has the duty of overseeing the management of public funds and the quality and credibility of governments’ reported financial data. The Auditor-General ensures that the budget is implemented according to legislative approval. This hypothesis will reveal whether or not the Auditor-General is able to exercise his duties inspite of his reliance on the financial statements prepared by the Executive.
Hypothesis Three
Ho State Audit performance is not significantly dependent on the quality of
legislative financial oversight.
H1 State Audit performance is significantly dependent on the quality of
legislative financial oversight.
RATIONALE/JUSTIFICATION
This hypothesis seeks to establish whether the quality of legislative oversight (through its public accounts committee) has any influence on State Audit work. Does the quality of legislative financial oversight influence the work of State Auditors?
Hypothesis Four
Ho: There is no significant difference between the qualification of treasury
operating staff and the number of financial records kept.
H1: There is significant difference between the qualification of treasury staff and
the number of financial records kept.
RATIONALE/JUSTIFICATION
Where there is a culture of poor financial record keeping, no meaningful control can be exercised. Good financial record keeping is a necessary condition for the production of auditable financial statement. The aim of this hypothesis is to evaluate whether qualification has a significant effect on financial record keeping in Plateau State.
- SIGNIFICANCE OF THE RESEARCH
A research on the public sector, especially on financial control is very important. This research is significant in a number of ways.
The research will assist financial policy makers in Plateau State and indeed other States in Nigeria formulate policies that will promote financial accountability. The academic community will benefit tremendously from this research. Other researchers may use this research to investigate further issues on public finance control.
The three formal institutions of financial control in Plateau State, that is, the Executive, the Legislature and the Auditor General will discharge their financial responsibilities effectively if the recommendations of this research are implemented.
This research evaluates the role of the formal institutions of financial control over public finance under a democratic setting. This is because the institutions of financial control are fully operational only during democratic dispensations. The Legislature does not exist during military rule.
The role of the informal institutions of financial control such as the media, the organised civil society and international donor agencies though important are not the immediate focus of this research.
Plateau State which is chosen as the case study is an old State - first created as Benue-Plateau State in 1967. The State has witnessed flashes of democratic rule from 1979 to date.
The research period covers years under democratic regimes. These are 19791983; 1991-1992; and 1999-2003. The research period covers ten years of democratic rule. The broken periods are periods of military rule.
The research covers only ministries. Parastatals are excluded because the 1999 Constitution S. 85 (3) does not authorize the Auditor-General to audit or appoint external auditors for government parastatals. Local governments are also excluded since they are guided by a different financial rule called the financial memoranda.
A number of limitations were encountered in this research. The major ones included:
- Literature Review - Getting materials for literature review was difficult - An extensive search for literature took over one year. The cost incurred in obtaining the relevant materials was also enormous.
- Questionnaire Administration - During the main research, we had to deal with an enlarged number of participants in the research. Since the questions were randomly administered, many of the participants were seeing the questions for the first time. Many of them felt that participating in this research would amount to “leaking of government secret”. They were visibly uncomfortable - that was even in spite of assurances given by research assistants that the information required was strictly for research purposes. Some of them asked for time to make up their minds as to whether to complete the questionnaires. For this category of respondents, research assistants had to plead and make repeated visits before the questionnaires were completed and returned.
- Secondary Data Collection - Getting information on public sector activity is difficult. But it is even more difficult getting information on financial activities. Information that is supposed to be publicly available is treated as confidential. Enquiries for financial information are viewed with suspicion. A very high official must authorize the release of such financial information. But getting such an official to authorize the release of the information is pretty difficult. The research assistants were suspected to be agents of opposing political parties. They were thus to be kept at arms’ length. It took a long time to convince the custodians of the required information to release the information.
- State of Emergency - The state of emergency declared in Plateau State on the 18th of May 2004 adversely affected this research. The Plateau State House of Assembly, it will be recalled was also suspended during the period. Reaching out to the suspended members to participate in the research was difficult. Even where contacts were established eventually, completing the questionnaire was not seen to be of any immediate importance. Some of the lawmakers told me that their immediate concern was whether they would be reinstated. They eventually participated. Democratic structures were restored at the end of the state of emergency in November 2004. To God be the glory.
| MONETARY POLICY IN NIGERIA BANKING INDUSTRY( A CASE STUDY OF FIRST BANK OF NIGERIA OWERRI BRANCH)
CHAPTER
1.0 INTRODUCTION
This research is on Monetary policy in Nigeria banking industry ( a case study of first bank of Nigeria Owerri branch). Currently, monetary policy has been taken to be a very vital measure in controlling the Nigeria economy this is one of the principal functions of the first bank of Nigeria (CBN). The CBN caries out this responsibility on behalf of the federal Government of Nigeria through a process outlined in the first Bank of Nigeria Decree 24, 1991 section 8 sub sections 1 and 2, the Governor shall keep the president informed of the monetary and banking policy pursued or intended to be pursued the Bank. The president after due consideration may, in writing, direct the bank as to monetary and banking policy pursued or intended on the board which shall forthwith take all steps necessary or expedient to give effect there to Monetary policy is a programme of action undertake by the monetary authorities, generally the first bank, to control and regulate the demand for and supply of money with the public and the public and the flow of credit with view to achieving predetermined macroeconomic goals
1.1 Background of the Study
The federal Government have seen economy as a result of unstable exchange rate. Is cobbling, and have decided to improve and maintain to strengthening balance of payment and maintenance of stable domestic price level.
1.2 Statement of the Study
In this report, the impact of monetary policy in Nigeria banking industry will be investigated. The investigation on the impact of this monetary policy in Nigeria banking industry's will enable its complete distribution even to the local communities. It will also enable its ascertainment on the likely problem that will occur on the process of implementing monetary policy. It will also go a long way. Way in making people know how to spend their money.
1.3 Objective of the Study
The objective of this study is to ascertain know the high rate of employment.
1.4 Research Question
For the purpose of this study the following question will guide this work.
- How does C.B.N implement their monetary policy?
- How does the C.B.N uses the monetary policy in controlling the price stability of the state?
- How does monetary policy increase the growth of the economic productivity.
1.5 Research Hypothesis
For the purpose of the work, the following hypothesis will be tested.
Null hypothesis; if the impact of monetary affect the banking industry
Alternative hypothesis; if the impact of monetary policy does not affect the banking industry.
1.6 Significance Of The Study
This project proposal is significant in the following ways:
- To prospective study who wants to know more on the impact of monetary policy in the banking sector.
- The study will be relevant to those who work in the bank to help them know how impact monetary policy in banking sector.
- To the Government on how to plan to improve the impact of monetary policy in banking industry's.
1.7 Delimitations And Limitation
This study will cover areas of academics, business, Government and banks.
1.8 Limitation
A study of this nature cannot be carried out without difficulties in the process. An important constraint is the time constraint. This research proposal work and examination and the research were complied with a very short period of one week.
Another constraint is finance, a research of this nature involves adequate search ( raw materials)
Lastly, difficulty in securing relevant data for the study. | MARKETING OF BANKING SERVICES IN NIGERIA A STUDY OF FIRST BANK PLC
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This project is on Marketing of banking services in Nigeria a study of first bank plc. A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Banks no longer restricted themselves to traditional banking activities, but explored newer avenues to increase business and capture new market. Grönroos., (1990)
- In the 1990s, greater emphasis being placed on technology and innovation.
- New concept like personal banking, retail banking, total branch automation, etc. were introduced
Banks’ activities can be divided into retail banking, dealing directly with individuals and small businesses: business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to high network individuals and families: and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profit organizations.
Marketing approach in banking sector had taken significance after 1950 in western countries and then after 1980 in Turkey. New banking perceptiveness oriented toward market had influenced banks to create new market. Banks had started to perform marketing and planning techniques in banking in order to be able to offer their new services efficiently. Marketing scope in banking sector should be considered under the service marketing framework, Performed marketing strategy is the case which is determination of the place of financial institutions on customers’ mind. Bank marketing does not only include service selling of the bank but also is the function which gets personality and image for bank on its customers’ mind. On the other hand, financial marketing is the function which relates uncongenitalies, differences and non similar applications between financial institutions and judgement standards of their customers.
The reasons for marketing scope to have importance in banking and for banks to interest in marketing subject can be arranged as:
Change in demographic structure: Differentiation of population in the number and composition affect quality and attribute of customer who benefits from banking services. Intense competition in financial service sector: The competition became intense due to the growing international banking perceptiveness and recently being non limiting for new enterprises in the sector. Increase in liberalization of interest rates has intensified the competition.
Bank’s wish for increasing profit: Banks have to increase their profits to create new markets, to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels.
1.2 HISTORICAL BACKGROUND OF FIRST BANK NIG. PLC.
First Bank is one of the oldest financial institutions in Nigeria and was the first bank to be established in West Africa. The bank was incorporated as a limited liability company in March 1894 and was listed on The Nigerian Stock Exchange in March 1971. Following the Central Bank of Nigeria’s (“CBN”). induced industry-wide consolidation in 2005, the bank acquired its merchant banking subsidiary. FBN (Merchant Bankers) Limited and MBC International Bank Plc. The bank offers a wide array of financial services to a diverse customer base through its local and offshore offices, including 465 branch offices country wide and 532 ATM’s. In addition to growing organically through new products and branch development, other viable domestic acquisitions are being explored. The intention is to extend the branch network to 600 by the end of 2008.
1.3 STATEMENT OF THE PROBLEM
Primarily, Banks are regarded as only interested in loan and saving and other related transaction but it is quite certain that beyond that, banks do engages themselves in marketing activities. To this effect, the problem of this research work is to know the extents and ways in which the banks carry out their marketing serving such as making use of E-banking, Core - Banking, corporate banking, Mobile banking, Plastic money. NRI banking etc in carrying out their marketing services.
1.4 OBJECTIVES OF THE STUDY
The aim of this research work is to analyze the marketing of banking services and the means in which the services are rendered by the banks. It will go a long way to unveil the new innovative method of marketing services used by banking sector such as E-banking, Core - Banking, corporate banking, Mobile banking. Plastic money. NRI banking etc., it will also investigate into the use of Marketing mix of banking sector in marketing services which involve the analysis of the Banks Products, Price, Pricing, Place, Promotion, Process, Physical evidence. To examine the level of market service delivery in First Bank plc. Owerri in relation to Information Technology (IT) innovations To examine the employees’ perception of the effects of IT innovations on market service delivery in First Bank plc. Owerri
1.5 SIGNIFICANCE OF THE STUDY
This work though will be carried out in reference First Bank PLC, the findings can be significantly applied to the banking industries at large. The essence of investigating into the role of marketing of banking services is to objectively unveil to improvement it has made in the banking industries in regard to the banking services delivery.
1.6 RESEARCH QUESTION
In order to achieve it aims, these project will try to offer answers to the following questions:
- Has the marketing of banking services in the banking industries improved the banking Industries?
- To what extent have the E-banking helped in marketing of banking services
- Is the use of Core - Banking still in existence?
- Is corporate banking necessary in service delivery’?
These and more are the questions this research work has set out to solve.
1.7 RESEARCH HYPOTHESES
For a clearer understanding of the research work and validation of information gotten for the purpose of this research, some hypothetical statement was formulated which will be tested later in chapter four (4). The hypotheses comprise of two: Null hypothesis (H0) and Alternate hypothesis (Hi). the null hypothesis is bound for rejection if the calculated value is greater than the observed value.
Hypothesis I
Ho: The use of New innovative method of marketing services in the marketing of banking has not contributed to the improvement of the services delivery in first bank plc.
Hi: The use of New innovative method of marketing services in the marketing of banking has contributed to the improvement of the services delivery in first bank plc.
Hypothesis II
H0: The application of marketing Mix strategies has not enhanced the quality of service delivery and customer satisfaction in first bank Nigeria plc.
Hi: The application of marketing Mix strategies has enhanced the quality of service delivery and customer satisfaction in first bank Nigeria plc.
1.8 SCOPE OF THE STUDY
This study concentrated on First Bank PLC and it does not in totality analyzed the functionality of the bank but limits it self on the marketing of banking services. This study therefore examines the role the marketing of banking services ,a enhancing the marketing of banking services. Considering these factor the data and response to the questionnaire were limited to staff and customers of First Bank PLC Owerri.
1.9 DEFINITION OF TERMS MARKETING
According to the Oxford Advanced Learner’s dictionary, marketing is the activity of presenting, advertising and selling an organizational products or services in the best possible way.
BANKING SERVICES: Banking services can be seen as those business transactions and services the banks carries out among them and their customers to generate income for the banks and to serve the bank’s need.
E-BANKING: The remote deliver of new and traditional banking products and services through electronic delivery channels. (FFIECJ).
E-banking is an abbreviation for electronic banking. E-banking allows you to conduct bank transactions online, instead of finding a bank and interacting with a teller. Most U.S. banks offer E-banking, though the extent of the services may vary. For instance, some banks may offer unlimited bill pay options while others restrict online activity.
CORE BANKING: Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the corporate banking division of the institution. Core banking basically is depositing and lending of money.
COOPERATE AND INVESTMENT BANKING: Corporate & Investment banking is a term used to describe a range of banking and investment products and services delivered to corporate clients, financial institutions, governments, agencies and, in some cases, to wealthy or ‘high-net-worth’ individuals and families,
MOBILE BANKING: Mobile banking (also known as M-Banking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone or Personal Digital Assistant (PDA).
PLASTIC MONEY: Generic term for all types of bank cards, credit cards, debit cards, smart cards, etc. |
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