1.1 HISTORICAL BACKGROUND OF COMPUTERS
A computer is an electronic machines
which receives data as input processes the data received using set of
instruction and produces information as output. This machines also
stores the data and information and can retrieve them in future. For
centuries, record keeping has been an manual basis and developed thought
the age of machine assisted into the present day computer age.
According to Rwade Cole (1982)
the development of computer is inextricably tried up with man’s basic
urge to count quantity and measure.
The earliest counting device,
the “Abacus” was inverted by the Greeks. This developed with the
invention of a formal numbering system which is still used today by over
half of the world population especially in the far east. It is believed
to have been in existence since 3000 BC and was later developed by the
Also involved in the evolution
of computer were the following men, the first was the scientific Renate
evolution of computer were the following men, the first was the
scientific renaissance of he seventeenth century which gave use to the
world’s first mechanical adding machines built by a young French man
Blaise Pascal (1642) . He invented these machines that could add
figures automatically to help him ease the computation bad of his
father, then a supervisor of taxes. This device is still in use today on
Next is a German
mathematician, Gottfried Von Leibuitz (1643) who expanded on pascals
work and produced a better device that could multiply, divide and
extract square roots. Leibnitz was motivated by the urge to get relief
from burden some computation.
A French textile manufacturer
named Joseph M. Jacquared (1801) inverted a textile room operated from
punch card instruction know as “ the automatic weaving loom”. This
device helped him in controlling the threads on his weaving loom.
Althought this device was not a
computer, but it is utilized the punched card principles which later
lead to the bedrock of the computer.
Another man, Charles babbage,
born in 1792, a professor of mathematics at the Cambridge university
conceived the idea of what he called a “difference engine” in 1822. he
later abandoned this and produced another machines he called the
“analytical engine” in 1833. this machine was made up of two part, the
store and the mill and is said to be the first digital computer even
known to man (that is, a machine that performs calculation with
Between 1987 and 1985, George
Boole, an English logician devised and perfected an algebraic system now
called the – “Boolean algebra”. In 1884, Dr. herman Hollerith, a
statistician working with the IVS census blurean with James power
invented used the punched card principle and was popularly referred to
as “American Hollerith system”. The impact of hollerith’s invention was
that the 1890 census of 63 million citizen took only three years to
Also in 1939, a physicist,
professor Haward Aihen of Harvard university in conjunction with
engineers from IBM introduced the mark 1, the modern machine to use
Babbage’s principle of sequential control. In the late 1930’s, Dr. J.V
atanasoff, a professor of mathematics and his assistance Clifford Barry,
completed electronic digital computer which they called “Atanasoff
Berry – computer” or simply “ABC”.
In 1946, Drs. J, Prepare
Eckert and John Mandily development the “ENIAC” (electronic numerical
integrator and computer), the first electronic high speed computer which
was developed as a result of the world war 11. it was the first large
scale electronic digital computer even built.
John Von Newman, attracted by
the work of ENIAC, researched into the design of an electronic computing
instrument. Thus, any computer that automatically execute a stored
program of instruction selected from a fixed repertoire or vocabulary is
called von Newman machine.
Finally, in 1974, mandily and
Eckert who built the ENIAC set up a company which later became known as
UNIVAC division of sperry rand cooperation (UNIAC – universal automatic
The first UNIVAX was delivered
to in 1951 making this the first computer dedicated to business
application, as opposed to other which were dedicated to either
scientific engineering or military application. Thus, since 1947,
electronic computer began to proliferate both in number and size and the
IBM introduced a small commercially available electronic calculator
called the “604”.
More development into the computer are still in progress in the sense that it was anticipated that the 5th generation computer which will posses “artificial intelligence” would have been developed by the late 1990s and early 2000s.
1.2 HISTORICAL BACKGROUND OF BANKING COMMERCIAL BANKING IN NIGERIA
Banking is a relatively old and well
known business in Nigeria and more especially the commercial banking.
The evolution of this bank in Nigeria date back to 1822 when the first
commercial bank. The African banking corporation opened its branch in
Lagos. this bank, was subsequently acquired by the British bank of West
African in 1894. the British bank of West African was followed by
another expatriate bank in 1925 – the Barclays bank D.C.O.
However, as far back as 1912,
the year of establishment of the West African currency board, an
expatriate bank, the bank of British West African (now first bank of
Nigeria) was already in existence.
The first attempt toward the
establishment of indigenous bank in the country came in 1929 with the
establishment of an indigenous bank in the country came in 1929 with the
establishment of the industrials and commercial bank which eventually
folded up in 1930 due to uncapitalization, poor management and
aggressive compaction from the – expatriate bank.
Another indigenous bank – the
Nigeria Mercantile bank was establish in 1931 but also suffered the fate
its predecessors. It was not until 1933 that the first indigenous bank
to survive from liquidation came into existence. The bank is the
national bank of Nigeria LTD. The establishment of this bank was
followed by the appearance of other indigenous bank:
The Agbonmagbe bank (now WEMA – bank) in
1945, the Nigerian penny bank. The African continental bank and the
Nigeria farmers and commercial bank, all of which were formed in 1947.
in 1949, another expatiate bank, the British and French bank (now
limited bank for limited) was established in the country.
The success recorded b the
indigenous bank noticeably the national bank of Nigeria, WEMA bank and
African continental bank spurred the proliferation small indigenous
The member of bank registered
as banking companies between 1949 and 1952 was as high as 185 out of
which 145 were registered in 1947 and 40 in 1952. these new entrants
into the banking business were ill – formed about the involvement in the
business and this resulted in many bank failures. Thus the period up
till 1952 was once during which the government pursued a non –
internationst policy in the business of commercial banking. This period
was thus one of unregulated banking, culminating in the early fifties in
what observer has described as an intolerable chiastic banking
In a bid to protect depositors
form suffering a further loss which they had hitherto suffered from the
banks failure, the colonial government appointed the pant on commission
to look into the existing state of banking in the country and make
recommendation the recommendation of this commission formed the basis of
the first banking legislation in the country, an ordinance for the
regulation of business of banking which was passed in May 1952. the
banking ordinance of 1952 stipulated requirement for the entry into
the banking business. Such requirement included the provision of a
minimums paid up capital of #25,000 for banks incorporated in Nigeria
and #200.000 for banks outside Nigeria
The enactment of the 1952
banking ordinance did not prevent bank from indulging in certain
malpractice the situation therefore called for the establishment of a
body that would supervised and control the operation of these commercial
bank. Thus in 1959 the central bank of Nigeria was set up.
More so, banking in Nigeria
like in most other countries operate under a strictly define legal frame
work. Ever since the emergence of banking in the country in 1892, many
laws have been made to regulate banking activities in the country. The
first legislation on banking in Nigeria was the banking ordnance in 192
which stipulated condition for entry into the commercial banking
business. The requirement then was a banking license and a minima paid
up capital of #25,000 for bank incorporated inside.
Today, the two important law
guiding banking operation in Nigeria are the bank and other financial
institution decree that stipulate what the commercial bank can do while
the central banks decree of 1991 deals with measure of control which the
control bank can exercise on the commercial bank. The banking decree
of 1991, regulates about commercial banking business ranging from
ownership structure, liability structure, asset portfolio golden to
general operation it stipulate the minimum capitalization for commercial
banks is #50m.
1.3 DEFINITION OF TERMS
Conceptual and operation definition
This is to store information with or in a
computer or system of computer or to use a computer to control an
operation in its operational meaning it is a process whereby computer
are employed to carryout certain operation which might as well be done
by man such operation which are the collection of data, the analysis of
these data and conversion of such data into information which could be
used in banking and so many other relevant fields.
This mean a result or outcome this could
be as a result pronounced on the mind or feeling or a result produced
on the use of something. Operationally, it means where something use,
the result which it has on the entire operation.
The business of keeping a bank or the
business of a bank or banker. Banking in its operational meaning, means
the business of accepting deposit from outside sources irrespective of
the payment of inters and also means the granting of money loans and the
acceptance of credits or the purchase and sell of securities for the
accounts for acquiring claims in respect of loans prior to their
maturity or might mean the assumption of guarantee and warrants for
other or the effecting of and warrant for other or the effecting of
transfer and clearing and such transaction that might be incidental to a
bank or banker.