THE EFFECT OF N25 BILLION MINIMUM CAPITAL BASE ON THE BANKING SECTOR IN NIGERIA
CHAPTER ONE
Introduction
The central bank of Nigeria announced a new capital requirement for Nigeria banks of 25 billion Naira (about US & 181milion) this reflects an increase of from its previous 2billion Naira (Us & 14.5 million) The banks governor has explained that by this he plans to encourage merger and acquisition among the 89 banks currently operating in the country to consolidate and strengthen the nations banking industry. He also hoped that this development would ignite investors confidence on the banks force down interest rate which currently pages at 35% thereby making funds cheaply available to borrowers. The directive to increase the capital base of Nigerian bank in an attempt to make banking more stable . The perception was that a number of small banks were too prone to unaccountability and corruption it is likely that many banks would merge and Nigeria would end up with a relatively small number of better capitalized more accountable banks. These banks would be able to make more longer terms loans that before enhancing Nigerians ability to finance developed project locally part of the challenge is to build confidence in the process if banking in Nigeria clearly the banking system in Nigeria is evolving that is its' in a transition phase between being a basically short term local colonial system to a bigger operation that can be seen as a facilitator of western style development it seems clear that there is a whole lot of money in the informal sector” that the banking industry would like to see get deposited.
It seems likely that the reorganization of Nigerian banks will lead to a drop in real estate value for some time because less mortgage money will be available. But ultimately the hope is that Nigeria banks will have the where withal to finance large projects that hither to have always had to go abroad for capita.
However this discussion on the effect of N25billion minimum capital base on the banking sector on Nigeria was objected by so some people and organizations. The Nigerian senate committee on financial services opposed this new legislation arguing that it would lead to massive distortions in certain area of the economy. They expressed their worry over the likely effect of the directive. As events unfolded however it dawned on the bankers as well as the stakeholder of banks that the professor of economic had already made up his mind as he was not very willing to shift ground. Instead of accommodating other views he concentrated on providing more facts to betters his demand for the N25 billion new capital base.
The new capital base of N25 billion comprised paid up capital and reserves unimpaired by losses the CBN government professor Charles Soludo said adding that the only legal mode of consolidation allowed are mergers and outright acquisition/ takeovers. A mere group arrangement is not acceptable for meeting the N25billion.
However the increase in capital requirement for licensed banks to a new minimum base of N25billion is intended to radically redefine the financial services industry land scope on Nigeria. The stated objectives of consolidation of the banking sector include ensuring that fewer but stronger banks emerge by the effective date of December 2005. to meet the challenge of the new capitalization within the tight line and achieve CBN'S objectives of industry consolidation many banks will explore mergers and acquisitions.
In anticipation of he spate of mergers and acquisitions activity CBN has published a guideline to facilitate mergers and acquisitions transactions within the industry as well as outlined a number of incentives to encourage the consummation of mergers and acquisitions deals. Discussions and negotiation towards consummating mergers and acquisitions deal in advance of the stipulated deadline have commenced. While the focus is on creating the optimal ‘deal' in terms of financial operational and governance arrangements the consideration of post-deal realties that impact on the deals' ability to deliver superior value need to being now,
The reality of the global experience is that consolidation activities driven by the imperative of growth are increasing but investors remain skeptical of the value creation potential of mergers and acquisitions deals. Research has shown that the most successful mergers and acquisitions are those that effectively integrate the synergies of the parties to not only achieve growth but also create shareholder value. Focusing on post- merger integration issue at ht pre-merger stage of the deal is key factors in consummating mergers and acquisitions deals that create value for shareholders.
Expectedly discussions and negotiations towards consummating merger and acquisitions deals in advanced of the stipulated deadline have commenced. While form the perspective of CBN as a regulator of the financial service industry the objective of bigger stronger banks is clear surely the emerging bank have additional objectives that include superior value creation in addition to growth financial operational and governance arrangements consideration of post deal realities especially regarding how such could impact ability to deliver superior value when it is most critical.
In the ongoing effort among banks to rapidly consolidate and meet the capitalization deadline there is a real threat that a reliance on rules of thumb and dusty benchmark and outdated approaches may be adopted. In essence there should not be separate mergers and acquisitions and post merger integration processes but a holistic approach to the deal from strategy to target identification and valuation to integration. This involves looking downstream at business information and it (information technology)system core processes and the nuts and bolts of how things work and in getting people who know how to design and implement changes to these systems and processes involved up front especially during the valuation stage.
What is needed is on organized and logical approach that includes all of the necessary steps and activities but which is flexible enough to match the unique requirements of the deal. The entire focus of the process should be on value creation rather than on integration alone.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
The Effect of N25 Billion Minimum Capital Base on the Banking Sector in Nigeria can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "The Effect of N25 Billion Minimum Capital Base on the Banking Sector in Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "The Effect of N25 Billion Minimum Capital Base on the Banking Sector in Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can the material for “Congestion Control in GSM Network” be used as a guide for Computer Science Education Project?
Yes it can be used — Traffic Congestion of GSM has always been a major problem and challenge in Nigeria to the service provider and the subscribers. This work deals greatly with the traffic control congestion and management in mobile wireless communications with the aim of guaranteeing customer’s satisfaction so as to provide very accurate and reliable throughput whenever wireless network is utilized. Also increase reliability and error free data transfer in mobile communication, so as to ensure concurrent access to users without any interference or congestion. The research was developed by exploring the use Etisalat and critically analyzed the call data for a period of busy hour for a week that was collected, and these data are used to describe a model to estimate the …
Is the topic “Impact of Effective Financing of Small Scale Industries on the National Economic Development” recommended for Economics Project?
Yes it is highly recommended — In view of the important of SMEs, government has been playing an appreciation role in promoting their survival and growth, various policies towards this has enunciated plan and the ongoing three year rolling plan, priority was accorded industrialization with emphasis on SMEs. Thus, it has been stated that the panacea for solving the problem of stunted economic growth of developing countries often reside in the adequate funding and development of the small and Medium Scale enterprise (SMEs). Indeed the establishment of that industrial and economic development of such India, Malaysia, Pakistan and Indonesia to name just a few. Analyst have therefore continued to posit that Nigeria will continue to remain in a state of underdevelopment unless concerted efforts are made to achieve …
Is the topic “Effect of Globalization on Non-Oil Export trade” recommended for Business Administration and Management (BAM) Project?
Yes it is highly recommended — This project work is concerned with effects of globalization on non-oil export trade. Globalization as a concept can be attributed to two major reasons: The first is its scale and speed and the way technology (especially in communications and transportation) is changing the world. Second, it is the latest in economic fad that has become accepted as changing the international environment and turning the whole world into a global villages. Three hypotheses were tested through statistical package for the social sciences (SPSS) along with least square, regression analysis, F-statistic (ANOVA), t-statistic, co-efficient of correlation among others were used to analyse the result of the findings. The findings of the study revealed that globalization has enhanced the growth of non-oil export trade, that globalization …
Is the topic “The Impact of Computerised Foreign Exchange Transaction in Banking” recommended for Computer Science Education Project?
Yes it is highly recommended — The application and use of computer technology affords a better way of doing things. Therefore, since the advent of computer, there have been great changes in the world, scientifically and technically. With this effect, automated online trading is becoming more popular substituting manual forex trading tools. Systems and methods that enable real-time foreign exchange (FX) pricing via retail branch networks, wire room operations and cash management platforms are provided. Essentially, the systems and methods decouple the FX-infrastructure and enable downstream banks to effectively and efficiently access FX transaction services and infrastructure without the need to locally manage such an FX platform in doing so, an FX generation component is employed in connection with standard downstream mechanisms to provide necessary information to …
Can the material for “The Role of Insurance Companies in Nigeria Economic Development” be used as a guide for Banking and Finance (BF) Project?
Yes it can be used — This project is the role of insurance companies in Nigeria economic development. The insurance industry, from all indication plays a vital role in Nigeria economic development as well as in the problem of risk management in Nigeria. It is very obvious that the majority of the public who are ignorant of the contributions made by the insurance industry have more faith in the banking and other financial institution but these people forget the fact that the banking institution acknowledges the fact that the insurance companies contribute significantly to the development of the economy of the nation. Chapter two is the review of related literature the most prominent among there were the extended family system the age grade association and the provide …
Can this topic “Assessment of Revenue Generation and Service Delivery” be used for Public Administration (PA) Project?
Yes it can be utilized for research — Every local government in Nigeria desires quality service delivery as it is pertinent to the sustainability of grassroots development. The fundamental factor in achieving quality services, are adequate and reliable of the revenue sources as well as quality human resources that will serve as instrument for formulation and implementation of local government financial resources. This study assessed revenue generation and service delivery in Nigeria, a study of Abuja Municipal and Abaji Area Councils of Federal Capital Territory from 2008 -2013; arising as a result of low service delivery in Abaji specifically in health care and environmental sanitation services. The objective of the study is to make comparative assessment of actual revenue generated by the two area councils and how the …
Can the material for “The Role of Data Preservation in Enhancing the Efficiency of Secretarial Function in the Banking Sector” be used as a guide for Office Technology and Management (OTM) Project?
Yes it can be used — The study was carried out to examine the impact of modern office technologies for data preservation on secretaries’ level of productivity at the Commercial Banks in Aguata North Local Government Area of Anambra State. The study adopted mixed method research design where both qualitative and quantitative methods were used. The data were collected using structured questionnaires for 80 respondents. The findings of this study shows that data preservation has been made easier through adoption of modern technologies in commercial banks. The findings also shows that data preservation plays significant roles in increasing the productivity of the secretaries in commercial banks, as it makes data storage and retrieval easier. This study concluded that data preservation is highly functional in the increase …
Can this topic “Impact of Effective Planning on Organizational Effectiveness and Efficiency” be used for Business Administration and Management (BAM) Project?
Yes it can be utilized for research — Every organization, whether private or government needs effective planning to reach the desired goals and enough resources to assigned to ensure the successful execution of the chosen action. This study will focus on the “impact of effective planning on organizational effectiveness and efficiency”. organization to be responsive to the organization needs, its members and environment; to examine the extent effective planning has had any impact on The objectives of the study includes to find out the following; how important is the effective planning on the company’s goals and objectives; to determine how productivity can be enhanced through effectiveness and efficiency; to determine the extent to which effective planning impacted on employees performance. These lead to the use of data collected …
Is the topic “Appraising the Functionality of Internal Control System in Public Sector” recommended for Accountancy / Accounting Project?
Yes it is highly recommended — The study was carried out to appraise the functionality of internal control system in public sector using Oron Local Government Area as a case study. In achieving this aim, the following specific objectives were laid out to prevent fraud and embezzlement in the public sector through effective internal control and find out the extent of which internal control is applied in the public sector with particular reference to the Akwa Ibom State Fire Service. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 133 (one hundred and thirty three) respondents were selected for this study to represent the entire population of the study. For …
Can the material for “The Relevance and Challenges of Computer Networking in Nigeria Banking Industry” be used as a guide for Computer Education Project?
Yes it can be used — With the present banking system in the country the computer network has become important in the banking sector as the banks officers and customers have began to appreciate accessibility, credibility and consistency of the network system in the banking industry. The method should be qualitative and analytical which will involve complication of facts, use of tables, testing of hypothesis, establishing relationship and drawing references based on the information collected. Moreover, from the analysis through questionnaire, direct interview and observation, this study should be able to prove that fact that despite all problem of the computer network system in the banks that have started the implementation like communication problem from NITEL, software problem, the system is still required in the banking operations …