2.1.2 THE NATIONAL FADAMA DEVELOPMENT PROJECT

The National Fadama Development Project was another agricultural policies introduced by the government to improve agricultural product.

Fadama I: Fadama I was implemented during the period 1993-1999. It focused mainly on crop production and largely neglected support of post production activities such as commodity processing,

THE ROLE OF COMMERCIAL BANKS IN THE ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA

ABSTRACT
The research work is meant to investigate the role of commercial banks in the economic growth and development of Nigeria. Chapter one was introduction, brief historical background of study, purpose of study, statement of problem, hypothesis, significant of the study, limitation and definition of terms. Chapter two was literature review. Chapter three was dissents steps taken by the researcher in the order in which they were carried out. Data collected were analyzed in chapter four. In chapter five, the summary, conclusion and recommendations were made. The recommendation are; ways must be found to channel funds currently outside the banking system into invisible pools and much as the paper does not suggest the ideas of state government and its agents using the banks as their only banker, they should however, appreciate the need for sufficient patronage and the banks should recognize it as a likely problem they are to solve. The conclusion drawn was that commercial banks is one of the key agent in the whole process of growth and development because they do not only facilities economic growth and development of Nigeria but also speed up the process of economic development in Nigeria.

THE ROLE OF COMMERCIAL BANKS IN THE ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA

CHAPTER ONE
INTRODUCTION
1.1    Background of Study
Commercial banks like other business Institution is a joint stock company. It’s activities began in West Africa in 1892. Banks are regarded as agents to the level of growth and development of an economy of a nation.
The joint stock banks otherwise referred to as commercial banks are dealer in money and credits, holding themselves out to receive deposits from the public which are repayable on demand by uses of cheque. Commercial banks also give advances as well as performing other services to their customers.
Commercial banks are in the business of providing banking services to individuals, government, small business and large organizations. It also offers job opportunities to the people more than any other financial services industry. Jobs in banking can be exciting and offer excellent opportunities to learn about business interact with people and build up a clientele.

Origin of Financial Institution

Tracing the origin of financial institution is very controversial, because opinions are divided as to whether financial institution originated from china or from England e.t.c. However, there is a general consensus that financial institution started from the activities of the Goldsmith who had facilities such as strong safes suitable for safe keeping of valuables. People who had valuables deposited them with the Goldsmiths. The Goldsmiths in turn had to perform an important function of financial institutions-accepting of deposits. At first the Goldsmiths charged the depositors some fees for performing these functions for them.
To serve as evidence for the valuables deposited, the Goldsmiths issued receipts for various weights of valuables, which include gold, and silver used as money in exchange, the merchants who deposited the valuables discovered that they could use the receipts issued to them by the Goldsmiths to carryout transaction.

Definition of Banking

Banking, according to “The Nigerian Banker” (1983) is a business much like any other business; it has customers with which it transacts business.
 According to the free online Dictionary “Banking” engage in the         business of keeping money for saving and checking accounts or for exchange or for issuing loans and credit e.t.c.
A bank provides certain services for its customers such as keeping their money and leading money to them in one form or the other. Therefore, a bank can be defined as a dealer in money and in credits holding itself out to receive from the public deposit repayable on demand by cheque.
According to Wikipedia “Banking” in simple words, can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and them lending out this money in order to earn a profit. The banking services these days include providing safe custody of valuable items, lockers, ATM services and online transfer of funds across the country / world.
According to Encyclopedia, American Economic Activity, as it is known in the Western World will not survive without a continuing flow of money and credit. The economics of all market oriented nation and states depend on the efficient operation of complex and delicately balanced systems of money and credit. Banks are indispensable element in these systems. They provide bulk of money supply as well as the primary means of facilitating the flow of credit.

I HOPE THIS HAVE BEEN VERY INFORMATIVE,
Leave a comment bellow.
Get the Full Material delivered to your Email, . Call me on 07065065738 or  07034538881
Follow Us On Twitter,
Like Us On Facebook,
Join Our Cycle On Google+

CONTACT US TODAY FOR OUR SERVICES

we can keep u updated by subscribing for free using your email
For more clarification, Please Leave a comment.

Definition of Commercial Bank

Samuelson 1982, defined commercial bank as a financial institution, the only organization able to provide “Bank money “ that is chequable, demand deposits that can be conveniently used as a medium of exchange. The second related function is that of credit. They help to give and transfer short term mortgage loans through terms loans and over a year duration.
According to Wikipedia, commercial bank is a type of bank that provides services, such as accepting deposits, giving business loans and basic investment products.
Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposit and loans from corporation or large businesses, as opposed to individual members of the public. Essong (1974:139) also defined commercial banking “As a monetary institutions owned by private businessmen for the purpose of making profit”.
Many economists have defined commercial banking in various ways but all the definitions are similar with regard to monetary transitions.

Source of Income to Commercial Bank

Commercial banks make profit and obtain money from their operation through several means. Viz-bank obtains deposits from their customer and pay the customers interest which in West African varies from 2% to 3%. The amount of interest paid depend on how short or long the notice which customer have to give to them before withdrawing their money out to trades, produce buyers, building contractor and local manufactures, they change interest  which are usually over5%
Banks obtain money for their operation by discounting bills of exchange. This bills of exchange are mainly treasury bills such as those frequently sold by the Nigerian Central Bank which mature in 19 days. Banks invest in short term securities. These investments are usually those that can readily sold in the stock exchange market. These investments bring some profit to the banks.

Commercial Banks and Nigeria Economic Development

Banks are part of the infrastructure of the country within which development takes place. The certainly help the shift from subsistence economy to a cash crop economy, by encouraging both the use of money and confidence in it. They provide a convenient means of making payment between people easily but the use of cheque and also provide safe place for the deposit of money. Furthermore, they help in development by their ability to provide loan.
 The first commercial banks in West African were the expatriate bank. These were overseas branches of banks whose head offices were in places like London, New York and Bombay. This had advantages in that the banks were strong as they could obtain funds from  their head offices if there is need to do so. On the other hand it had no influence on the development of the country because these banks were controlled from abroad. There was likelihood that surplus funds would not be used to foster local development. This led to the encouragement of indigenous banks by West African governments and imposition of expatriate banks where they were not indigenized.

An Overview of the Nigerian Economy

According to mundi, “facts and statistics about the economy-overview of Nigeria updated as of 2013” oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure and poor macro-economic management but in 2008 began pursuing economic reforms. Nigerians former military rules failed to diversify the economy away from its over dependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues.
Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1billion credit from the IMF, both contingents on economic reforms. Nigerian pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris club. In November 2005, Abuja won Paris club approval for a debt-relief deal that eliminated $ 18 billion of debt in exchange for $ 12 billion of payments a total package worth $ 30 billion of Nigeria’s total $37 billion external debt.

THE ROLE OF COMMERCIAL BANKS IN THE ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA

ABSTRACT
The research work is meant to investigate the role of commercial banks in the economic growth and development of Nigeria. Chapter one was introduction, brief historical background of study, purpose of study, statement of problem, hypothesis, significant of the study, limitation and definition of terms. Chapter two was literature review. Chapter three was dissents steps taken by the researcher in the order in which they were carried out. Data collected were analyzed in chapter four. In chapter five, the summary, conclusion and recommendations were made. The recommendation are; ways must be found to channel funds currently outside the banking system into invisible pools and much as the paper does not suggest the ideas of state government and its agents using the banks as their only banker, they should however, appreciate the need for sufficient patronage and the banks should recognize it as a likely problem they are to solve. The conclusion drawn was that commercial banks is one of the key agent in the whole process of growth and development because they do not only facilities economic growth and development of Nigeria but also speed up the process of economic development in Nigeria.