Business planning, information preference, and information use as factors in banking operations in Nigeria.

Author:Salman, A.A.
Position:Report
 
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Introduction

The banking industry in Nigeria has been faced with enormous challenges that affect performance, management, and reliability. There are 24 banks in Nigeria today. These banks are referred to as consolidated banks. They emerged after the recapitalisation initiative of the central bank of Nigeria in 2005. Specifically, the central bank of Nigeria (CBN) raised the minimum capital requirement for each bank in Nigeria to [begin strikethrough]N[end strikethrough] 25billion. This study is mindful of the recent efforts by the federal government of Nigeria to recapitalise and reconsolidate banking operations, which may reduce the number of licensed banks in Nigeria by ten. Banks constitute an important vehicle for economic growth and sustainable development in Nigeria.

Ekanem (2003) takes a look at the banking industry in Nigeria provides estimates of total productivity of the banking industry in Nigeria for 1986-2000. He concludes that the banking industry in Nigeria has expanded rapidly in recent years with productivity rising sharply since 1996. Nnanna (2001) observe that bank credit is important for the startup and efficient performance of any enterprise, which requires provision of funds for capitalization, working capital, and rehabilitation, as well as for the creation of new investments. Funds are required to bring together the other factors of production--land, labour, and capital--before production can take place. This is why credit is very important in any economy.

Nzotta (1999) stresses that bank credits influence positively the level of economic activities in any country. They influence what is to be produced, who produces it, and how much is to be produced. This, he further argues, is derived from the intermediate role of banks, i.e., as a link between surplus and deficit units in the economic system. Dauda (2007) assesses the role, size, and contribution of the community banking system in Nigeria's development process from 1992 to the present she looks into extent to which community banks have been efficient in performing their development roles at the grassroots level using the following criteria:

* Inculcation of good banking habits,

* Deposit generation and savings mobilization

* Granting of loans and advances

* Development of real sector

* Development of non productive activities.

She concludes that the Nigerian community banking system is growing in size, but is still unable to be productive enough to help poor households escape from poverty.

Aiyegbusi and Soetan (2003) examine the impact of community banks such as Microfinance Banks (MFB) on the credit habits of women, and seeks to amplify the importance of the banks for improved quality of life of marginalised groups like women. Their findings show an upsurge in the credit habits of all respondents since these banks have been introduced. This was attributed to community banks' flexible requirements for loan procurement.

Objectives of the Study

  1. Determine the influence of management motivation on job performance of bankers in Nigeria;

  2. Identify information preference of bank workers in Nigeria;

  3. Identify the degree of information usage in Nigeria banks; and

  4. Determine the extent to which business planning and information use has affected the development or otherwise of banks in Nigeria.

    Significance of the Study

    This study will be important to the banking industry in the following areas.

    1 . It will offer recommendations of ways of achieving enhanced productivity in the banking industry;

  5. It will enable banks to implement programmes that will be geared toward effective use of information.

  6. it will be a meaningful addition to the literature on proper planning in the banking sector

    Scope of the Study

    This study focuses on business planning, information preference and use among the twenty four recapitalised banks in Nigeria. Managers and Senior Staff members of these 24 banks were used as respondents which specifically have their headquarters in Lagos and Abuja. After the recapitalisation and consolidation exercise, the following 24 banks emerged:

  7. Access Bank Plc

  8. Skye Bank Plc

  9. Stanbic IBTC Bank Plc

  10. United Bank For Africa Plc

  11. Union Bank Nigeria Plc

  12. Unity Bank Plc

  13. Wema Bank Plc

  14. Zenith Bank Plc

  15. Equatorial Trust Bank Plc

  16. Universal Trust Bank

  17. Spring Bank Plc

  18. Sterling Bank Plc

  19. Standard Chartered Bank

  20. Platinum Habib Bank Plc

  21. Afribank Nigeria plc

  22. Diamond Bank Plc

  23. Ecobank Nigeria Plc

  24. Fidelity Bank Plc

  25. First Bank of Nigeria Plc

  26. First City Monument Bank Plc

  27. First Inland Bank Plc

  28. Guaranty Trust Bank Plc

  29. Intercontinental Bank Plc

  30. Oceanic Bank International

    Limitations of the Study

    This study is expected to cover all the above listed banks and their branches in Nigeria, which has been conservatively put at about 2,000. The locations of these branches and size of the country have made it difficult for the researchers to administer questionnaire on all the of the 24 banks. Headquarters and major branches of these banks are located in Lagos and Abuja constitute the focus of the research.

    Hypotheses

  31. There is on significant difference in the business planning and bank productivity in Nigeria;

  32. There is no significant difference in information preference and use of bank workers and productivity in Nigeria;

  33. There is no significant difference in in the application of ICT and bank activities in Nigeria;

  34. There is no significant difference in the information format used by bank workers and performance in Nigeria.

    Conceptual Issues

    Planning is a...

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