The idea of establishing indigenous development financial
institution was moved after the establishment of the Central Bank of
Nigeria on first July, 1959 after the bank’s failure of the early
During this time, it became obvious that there was an
urgent need fro financial institution capable of providing medium and
long term capital to full up serious gaps in the financial
system/structure of the economy.
As a result of this need, arose to create special
institutions for special purpose, the special purpose being development
in the widest sense of the term. There was a need to create institution
that could undertaken investment where the private investor, might for
the time being also revetments to go, and create atmosphere in private
investor where they will find the risk of investment considerably
reduced if not wiped out entirely.
The need is to stimulate the private sector of the economy
and also with the promotion and finance of an enterprises by the
provision of long-term and medium term finance was accepted.
1.2 STATEMENT OF THE PROBLEMS
1.3 MAJOR PROBLEMS
This research entitled “The Role of Financial Institution in a
Developing Economy, attempted to determine find out the role of
financial institution in enhancing the economy development of Nigeria
with particular reference to some premise financial institutions like
Nigeria Bank for Commerce and Industry can Nigeria Agricultural and
1.4 SUB-PROBLEMS: THIS STUDY TRIED
- to know the objective for their establishment
- the basis for the disbursement of their fund
- what problems instituted their effective operation performance
- areas of priority or special attention in the disbursement of funds
1.5 THE PURPOSE OF THE STUDY
The idea of establishing indigenous financial institution was
rooted soon after the establishment of the Central bank of Nigeria on
first July, 1959 after the bank failures of the early 1950’s.
This study tried to ascertain has much of the above listed
objectives to the financial institution have been able to achieve, their
standing relationship with the industry and commerce which they are
meant to fund. Their standing relationship with the Nigerian Public and
the Central bank of Nigeria (CBN) which is their main source of fund.
1.6 SIGNIFICANCE OF THE STUDY
The idea of establishing indigenous financial institution
saddled with the responsibilities of financing, funding industrialist
and other Commercial Entrepreneurs fro the economic emancipation of the
country is unique in such a way that it tried to x-ray the role of
financial institution whose functions are to help in the bid to Lunch
Nigeria into economic freedom and to enable her complete favourably with
the international economy.
This study reviewed the primary role of these institution
which reviewed included among other numerous function “providing equity
capital and funds by way or town to indigenous persons. This study is
equally significant in the at it has reviewed the activities of the
Institutions in trying to close those gaps created by the operation
of the earlier existing non-development financial institution and speed
up economic development of Nigeria.
1.7 SCOPE AND DELIMITAITON
This research entitled. “The role of financial institution in a
developing economy is very verse but for the purpose of manageability
and financial constraints, it has therefore restricted or limited
itself to some specific development financial institution in Anambra
Urban. Some of these chosen indigenous financial institution include
Nigeria Bank for Commerce and Industry, Nigeria Agricultural and
Co-operative Bank and the Universal Insurance Company Limited.
1.8 DEFINITION OF THE TERM
- i. Role: For the
purpose of the research role should mean and includes all parts played
and exhibited by financial institution in the development of Nigeria
- ii. Development: It
is constructed to mean here advancing to attain a higher economic state
and improvement in the standard of living of the people.
- iii. Financial Institution: It means and includes all these financial houses that are involved in the economic development of this nation.
- iv. Economy: In this research, economy should referees to the improvement of the standard of living of the people.
Wherever we come across a developing to the development of
the people standard of living.