THE ROLE OF NIGERIAN COMMERCIAL BANKS IN NATIONAL ECONOMIC RECOVERY
(A CASE STUDY OF EQUITY BANK OF NIGERIAN LIMITED)
ABSTRACT
            As a nation progresses through previous stage of economic growth and development, expectations regarding the role of banks in economic growth development and social mobilization assume greater and weightier dimension.
            This situation becomes more pronounced when nation is going through the trauma of economic recession, as Nigeria is currently experiencing.
The economic recession has necessitated the examination of the role of commercial banks in revitalizing the economy through a more effective functioning and better attention to the bank – customer relationship.  Most learned educationists have succinctly presented a manage of the expectations of government and the public on the role of banks on National economic recovery efforts   they identifies the problem of the Nigeria commercial banks as.
Absence of the will to adhere to Governments monetary and credit guidelines.
Aversion to risk – taking exemplified by the usual insistence on the provision of unattainable collated and; rigidity in banking operations.
The research traces the influence of the budget and development plans on the structure of the economy from independence to data using the gross Domestic product (GDP) as a chief economic indicator. The responsibility to ensure the safely, liquidity and operating efficiency of banks rest with the directors and stakeholders of the banks.
Also in discussing the topic, the negative impact of the recession on the banking system with special reference to the excess liquidity, paucity of borrowers and decline on arming on loans and advance is stressed upon. The banks are enjoined to be more imaginative that before by improving their operational efficiency, reducing cost and assisting the government in areas of structural Adjustment and the reallocation of resources.
            In conclusion, the antecedents of the current economic recession as to an over – dependence on a single commodity external sector. The key to the solution of most problems in the domestic economy lies in the domestic economy lies in the generation of sustainable solutions to the problems of the external sector.
            At a time when emphasis is being laid on economic self – reliance the key sector such as exports and small – scale enterprises which could serve as spring hoards for this are being denied finance.
However, it is in the light of this role performed by the commercial banks for national economic recovery that its present state has agitated the government and people of Nigeria.
            The project of thoroughly research, it is based on copious data quoted from actual cause materials on the subject. The research also presented a well – researched performance rating or analysis of the banks in Nigeria today to guide prospective investor and customers.
TABLE OF CONTENT
CHAPTER ONE
Introduction
1.1              Problem identification
1.2              Rational of study
1.3              Significance of the study
1.4              Background of the study
1.5              Definition of terms
CHAPTER TWO
Literature review
2.1              Theoretical review
2.2              Empirical review.
CHAPTER THREE
Hypothesis methodology of study, sources of data and limitations of study.
3.1            Hypothesis
3.2            Methodology of study
3.3            Sources of study
3.4            Limitation
CHAPTER FOUR
Data presentation, analysis, discussion of the result
4.1              Data presentation
4.2              Analysis
4.3              Discussion of the result
CHAPTER FIVE
Summary, conclusion, recommendation
5.1              Summary
5.2              Conclusion
5.3              Recommendation
Bibliography
Appendix 1
Appendix 2
CHAPTER ONE
INTRODUCTION
1.1              STATEMENT OF THE PROBLEM
Our present economic climate demand conscious and committed efforts on the part of the boards and chief executives of our banks to facilitate a speedy economic recovery. The banking sector plays a key role in the economic activities of any nation (Ijewere 2000). No economies in the world with in the present dispensation survive without banks and other financial institutions. The banking industry is reputed for the provision of a basket of inter – related, services to individuals, governments and profit as well as non-profit oriented and organization. Since independence, West African countries (Nigeria in particular) have become aware of the important roles played by the commercial banks in. the raucously of the country (Isewere 2000) step were subsequently taken to regulate the behavior of foreign owned banks first by making it compulsory for their local branches to be incorporated participation through indigenization (Ijewere 2000). In recent years in Nigeria we have had unstable economic social environment, which inhibited the banks from effectively discharging their responsibility, to the outer all sectors and the economy in general this has an effect on the recovery of our economy.
Nigeria in national economic recovery needs to recover fault employment stability in the economy and solve inflationary problem that feces the economy.
            This project work is probably to recognize the important roles the banks are expected to play in facilitating economic recovery in Nigeria. In line with this is the need to examine the extent to which the new system and structure of government in Nigeria will positively encourage the profitability in the banking industry in sustaining? A viable economy
The purpose of the study is to:
1).        To ascertain if the poor economic recovery of our economy is as a result of the inefficiency in the clearing systems of our commercial banks.
2)         To determine whether or not excess liquidity of banks has anything to do with poor economic recovery.
1.2              RATIONALE OF THE STUDY
This project work probably to recognize the important roles the banks are expected to play in facilitating economic recovery on Nigeria.
            In line with this, is the need to examine the extent to which the new system and structure of government in Nigeria will positively encourage the profitability in the banking industry in sustaining a viable economy.
            This study is necessary because it will examine the impact of the role the banks play in national economic recovery. It will also examine functions of commercial banks in stabilizing the economy.
            It will also show the resultant effect of banks participation in gaining fall employment, increased investment and diversification of the economy to gain economic recovery.  
1.3              SIGNIFICANCE OF STUDY.
The commercial banks in Nigeria play a very vital role in the recovery of the national economy. The banking system plays the role of the engine of growth and development for any economy and this is supported by Bello. (1993) who said that the banks are the heart of any economic
            This project work will be beneficial to.  
1)                  Bankers: Bankers will find this work very beneficial because it will help them to understand more the impact it their activities in national economic recovery.
2)                  Economists: This work will be beneficial to the economists because they it will tell how relevant the banks role one in the economy
3)                  Government: the government needs it to ascertain how effective the role of commercial bank are economic recovery of the nation,
4)                  Students: The students will make reference in the course of their studies in stability in the economy.
5)                  Future Researcher: They will make reference to it as one of the Literatures review in the course of their research.
1.4              BACKGROUND OF STUDY
Equity Bank of Nigeria limited was incorporated sin Nigeria as a
private limited company in December 1988 and commenced operations in January 1986 as meridian equity Bank of Nigeria limited, it metamorphosed into its present name (Equity bank of Nigeria limited) effective May 25 1995 after the relationship with Meridian international Bank Limited (in liquidation) was served. At its incorporation the bank was owned 60% by reputable Nigeria and 40% by the foreign bank. However, exciting reputable Nigerians and 2.95% own Nigerian intercontinental Bank now own 67.4% of the paid – up capital of the bank while 29.65% by Equity Bank staffs. The paid up capital base, which now stands at N 515.3m, was achieved through injection of fresh funds to the tune of N22.14m
            Sam O. Obaze whop is the managing Director and chief executive officer, Mr. Chris A. Alabi Chairman leads the bank.
With a number of other distinguish and experienced management teams like Adeoye G. Adewale., Iyiola S. Adegboye, Cahrles G. Ogunbona, Olayato Aribo etc.
The bank has witnessed a remarkable growth in the last financial year, one that surpassed expectations. The banks assets in the past five years have growth steadily on the average by 36% from   N 2.83 to N 3.7B. According profit before tax increased from N 108.6m to N 307.5m an crease of 183% profit after tax stood at N 288. 3m compared to 104m which representing a growth of 174%  as at December 31st, 1998. the bank has a track record of quality projects it has superintended using third partly funds from multilateral institutions such as the ADB and world Bank. The bank has also managed water projects in over 30 states of which 8 are in the Niger
Delta Development commission (NDDC) states.
            In response to the changes in the operation of the baking environment and the changing need of the customers, the bank has invested heavily in information technology. The customers, the bank has invested heavily in information technology. The bank has converted to more sophisticated software for a better operating standard and has become more relevant as agent of economic development.    
1.5              DEFINITION OF TERMS
1.                  Banking sector: In this context, banking sector refers to commercial banks
2.                  Agent: One who acts for another; the other being his principal
3.                  Allocation of resources: Any activity of government that affects the quantity and quality of goods and service being produced ecy producing public education.
4.                  Open market operation (Omo): The buying and seething of government securities e.g development bonds, treasury bills etc
5.                  Development plan: It is country’s collection of strategies to achieve a rapid economic growth and development.
6.                  Insolvency: the condition in which a bank or firms liability exceeds it assets.
7.                  regulatory supervisory Authorities these are made up of the central Bank of Nigeria (CBN) and national Deposit insurance corporation (NDIC)
8.                  Distressed bank: A bank that has precursor financial position. Overtime: A bank with managerial, operational and financial weakness.
9.                  Treasure Bills; these are 19 days maturity short term debt instruments issued weekly by the central Bank of Nigeria to raise funds for the federal government.
10.              Cheque Clearing: This is a situation where banks at specified days, assemble in banking days for purpose of exchanging debt instrument (cherques)
11.              Liquidity :The conditions in which firms has  adequate cash to meet its obligations in short term basis
12.              NDDC –Niger Delta Development commission.