THE IMPACT OF APPLICATION OF MARKETING CONCEPT IN THE NIGERIA BANKING INDUSTRY (A CASE STUDY OF ZENITH BANK)

 

ABSTRACT

Marketing activities play a vital role in the survival and growth of any organization. In recent time, marketing activities in the service industry have been posing serious problems to the service operators. This is because of the competitive nature and the increase in the number of services industries. The objective of this paper is to examine the application of marketing concept in the banking industry, the study is based on information gathered and collected from both primary and secondary sources. Finding of the study revealed that applying a dominant role in the banking industry. This study also revealed the important and the benefit of applying the application of marketing concept in the Nigeria banking industries. Therefore, the continued existence of any service industry will depend on its ability to design and map out appropriate marketing strategy.  Date analysis for the study was done simply and chi-square (X²) statistic was employed to test further the result of the analysis to confirm that the impact of application of marketing concept in the Nigeria banking industry

THE EFFECT OF INFLATION AND INTEREST RATE ON ECONOMIC GROWTH OF NIGERIA (A CASE STUDY OF FIRST BANK)

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE

• INTRODUCTION of “the effect of inflation and interest rate on economic growth”
• Statement of problems
• Objective of study
• Research question
• Statement of hypothesis
• Significance of study
• Scope & limitation
• Definition of terms
• Reference

 

 

CHAPTER TWO

• LITERATURE REVIEW of “the effect of inflation and interest rate on economic growth”

 

2.1      interest rate management in Nigeria

• Factors influence interest rate
• Management prior 2003/ monetary development
• Case for interest ceiling
• Case against interest ceiling
• Inflation and unemployment
• Inflation and economic growth
• Effect of inflation on savings/ growth
• Inflation and growth in developing nation

2.2.1 Empirical study on relationship on inflation

And economic growth in Latin America other countries

• Empirical evidence based on some African countries

CHAPTER THREE

• RESEARCH DESIGN AND METHODOLOGY of “the effect of inflation and interest rate on economic growth”

 

3.1      Research design

• Research methodology
• Area of study
• Location of data
• Instrument of data collection
• Method of data presentation
• Techniques of data analysis

CHAPTER FOUR

• PRESENTATION, ANALYSIS AND INTERPRETATION of “the effect of inflation and interest rate on economic growth”

4.1      Presentation of data

• Analysis of result
• Test of hypothesis

Chapter five

• SUMMARY, RECOMMENDATION AND CONCLUSION

5.1      Summary of findings

• Recommendation
• Conclusion

Bibliography

 

 

 

ABSTRACT

The main objective of this study is to investigate the effect of inflation and interest rate on economic growth of Nigeria. Unit root test (Augmented Dickey- Fuller test) has been exploited to check the integration order of the variables. Acointegration analysis with four variables (c growth, interest rate, GDP, and inflation level) is employed. Study adopted Johansen test. Findings indicated that both trace test and max eigenvalue static showed that the four equations have significant existent 1% or 5%. It means that all variables have long term equilibrium relationship. Study adopted the same four variables to discuss Granger Causality relationship; findings indicated that inflation causes interest rate. On the other hand all other variables are independent with each other. Regressionwas conducted to test growth rate with interest rate which showed that current interest rate has an influence power on growth rate. Also, regression used to test growth rate with inflation rate; it showed that inflation rate has influence power on growth rate. Finally regression used to test GDP, interest rate, and inflation rate together; results have shown that current GDP and one lag GDP have influence power to growth rate.

Keywords: Inflation, Economic Growth, Interest Rate, GDP JEL Classification: E31, 040, E43, E01

 

CHAPTER ONE

INTRODUCTION

Economic growth of any country reflects its capacity to increase production of goods and services. The simplest definition of economic growth can be stated as the increase in the Gross Domestic Product (GDP) of that country. Nominal GDP is usually adjusted for inflation factor to reflect real GDP. Interest rate is one of the macroeconomic growth factors; it’s up and down volatility is closely related with inflation rates. Its high or low rates also impact the economic boom (high GDP) and extending to influence economic growth rate. In business fields, it is very important to accurately predict interest rate trends. Many previous studies have assumed that the time series data is stationary and they ignored that non stationary could exist in the variables. This study is a contribution to the existing literature on real growth applied toNigeria ‘s economy; it will examine the effect of interest rate, inflation, and Real GDP on the real growth rate of Nigeria ‘s economic. Study is concerned to analyze:

–           The relationship between Interest rate and inflation rate,

–           The relationship between GDP and economic growth rate.

–           The Effect of Interest rate, Inflation rate, and R. GDP, on Real Economic Growth Rate.

Samuelson (1973), defines inflation as “a general rising prices for breeds, cars, haircut, rising wages, rent etc. Onwukwe (2003), on his side defines inflation as “a significant and sustained rise in the general price level or a declining value of the monetary units.

The problem created by the rising prices of goods and services has become two difficult for government to solve. During inflationary period, fixed amounts of money buy less quantity of goods and services. The real value of money is drastically reduced i.e the purchasing power of consumers are reduced.

The Impact of rapid inflation growth has led the federal government of Nigeria to adopt several sexual measures of inflation control. Paramount among these measures are monetary and credit policies formulated restore balance of payment to a health; position price and way policies formulated to check the growth of price and income.

Inflation growth became more intensified since later eighty’s, inflation rate was 9.9 percent in 1980, in 1981 it rise to 21.0 percent and 7.6 percent, in 1982. In 1988 it increased to 56.1 percent, and 1989, it was at 42.6 percent in 1992; 57.2 percent in 1993; 55.3 in 2000; it reduced to 27.2 percent and 18.9 percent in 2001 (CBN Bulletin, 2003).

The researcher feels that the Nigerian economy is under surge until adequate measures are adopted to arrest the Impact of inflation on the economy:

Having a view on the Impact of inflation on Nigeria economy and realizing that the problems caused by the Impacts of inflationary growth is becoming unbearable to the citizens and the entire economy, of becomes necessary to critically analyzed the impact of inflation on Nigerian economic growth (1980-2006).

1.2 STATEMENT OF THE PROBLEMS

Inflation growth has been the macroeconomic problem in Nigeria that seems to be intractable over the years, Nigeria government has adopted various measures (both monetary and fiscal policies) to curb or reduce inflation growth to an acceptable level but all these policies seem to have no effects. This gave rise to the following research question:

v Why have all the policies used unable to reduce inflation rate to an acceptable level?

v What is the Impact of inflation on Nigerian economic growth?

These are the research questions that will guild me in this study.

1.3 OBJECTIVES OF THE STUDY

The study is aimed at achieving the following objectives:

1. To determine the Impact of inflation on Nigerian economic growth.
2. To identify how money supply affects Nigerian economy
3. To recommend to the monetary authorities and the government on how inflation should be reduced an acceptable level

1.4 RESEARCH HYPOTHESIS

To carryout the study effectively, the following hypothesis have been formulated as a guild:

Hypothesis I

Ho: inflation has no significant Impact on Nigeria economy growth.

H1: inflation has significant Impact on Nigeria economic growth.

 Hypothesis II

Ho: interest rate has no significant Impact on Nigeria economy growth.

H1: interest rate has significant Impact on Nigeria economy growth.

 

1.5 SIGNIFICANCE OF THE STUDY

The importance of these study are so numerous to mention. It will be useful to policy makers especially in formulating policy that will reduce inflation growth rate. It will be useful to monetary houses like central and commercial banks.

It will also be of importance to students of economics and other related fields. It will be useful to the general public.

1.6 SCOPE/LIMITATIONS OF THE STUDY

To get real picture of the Impacts of inflation on an economy, the study will cover the whole Nigeria economy between 1980 and 2006.

1.7 LIMITATION OF THE STUDY

This study suffered some limitations. The limitation are:

1. Dearth of data and other related materials.
2. Time do for the completion of this study posses a constraint to the study.
3. There is also inadequate finance to run the study.

 

 RESEARCH PROBLEM

Measuring real economic growth of a country aims to assess whether growth can cope with the growing demands of the society including the population and prosperity growth rates; and how to maintain and confine the depletion rate of its national natural resources.

This study is designed to investigate the effect of the basic economic factors such as interest rate, inflation rate, and GDP onNigeria ‘s real economic growth by answering the following questions: 1 -Is the effect of inflation on real economic growth rate significant?

2-        Is the effect of interest rate on real economic growth rate significant?

3-        Is         the effect of R.GDP on real economic growth rate significant?

 

Test Hypotheses

Ho-1: There is no significant effect of interest rate on economic growth. Ho-2: There is no significant effect of inflation on economic growth. Ho-3: There is no significant effect of GDP on economic growth.

RESEARCH QUESTION

1. Is there a relationship between the inflation and interest rate on economic growth of Nigeria?
2. Does high level of inflation and interest rate causes Nigeria Economic failure?
3. Does accumulation of interest rate and mismanagement of economy causes inflation in a Country
4. Is regulation and supervision of interest and inflation rate an effective tool in Nigeria Economic Growth
5. Does sound credit analysis reduce the incidence of inflation and interest rate? Can poor analysis of country financial data lead to interest and inflation rate
6. Can high level of bad debt result into inflation rate?

 

RESEARCH HYPOTHESIS

1. HO: there is no relationship between the inflation and interest rate on economic growth of Nigeria.

H1: there Is a relationship between the inflation and interest rate on economic growth of Nigeria.

2. HO: high level of inflation and interest rate does not cause Nigeria Economic failure.

H1: high level of inflation and interest rate cause Nigeria Economic failure.

THE CHALLENGES OF RATING VALUATION IN NIGERIA (CASE STUDY OF LAGOS STATE )

CHAPTER ONE

 

INTRODUCTION

• Background to the Study

It was in 1987, in the wake of some well publicized research works by actuaries Hager and Lord that Drivers Jonas first sponsored Investment Property Databank (IPD) to carry out detailed research into valuation accuracy in the United Kingdom. The Royal Institution of Chartered Surveyors (RICS), as the valuers’ professional body, later took over the role of sponsor. In doing so, they were adopting one of the principal recommendations of Sir Bryan Carlsberg’s Working Party on valuation practices.

In 1985, Udo-Akagha, one of the leading estate surveyors and valuers in Nigeria, while writing a foreword to “Guidance Notes on Property Valuation” noted that;

“there ought to be no reason why two or more valuers valuing the same interest         in a property for the same purpose and at the same time should not arrive at

the same or similar results if they make use of the same data and follow the   same valuation approach”.

In the same vein, in 1998, an editorial on page 2 on “property valuation and the credibility problems” in The Estate Surveyor and Valuer, the professional Journal of the Nigerian Institution of Estate Surveyors and Valuers stated inter alia that

“the valuation process has been the focus of recent debate and controversy both within and outside the profession as cases of two or more valuers giving different capital values with wide margins of variation for the same property abound”.

Comments of this nature have led many to ask whether estate surveyors and valuers are interpreters or creators of value. From the above statements, it is evident that the twin problems of inaccuracy and inconsistency (variance) in the valuation practice exist in Nigeria. Even in developed countries such as Britain, Australia, Canada and USA, the valuers’ estimates, methods and processes have been increasingly criticized for over the past thirty years as clients seek advice in increasingly sophisticated investment markets (Baum and Macgregor, 1992).

In the same vein, there has also been a focus on the seeming inability of valuation estimates to accurately represent/interpret market prices or serve as a security for bank loans. Bretten and Wyatt (2002) observed that valuers do not operate with perfect market knowledge while valuers in many instances follow clients’ instructions, analyze available information, make judgments and respond to different pressures from stakeholders when preparing a valuation in a market atmosphere of heterogeneity. However, the study of valuation accuracy should be a continuing one as is the case in the United Kingdom (UK) where the RICS of late teamed up with the Investment Property Databank (IPD) to produce investigations into valuation accuracy in Britain on a two (2) yearly basis.

The effort in this work will accordingly be the study of valuation accuracy and consistency and the factors influencing their occurrences, to cover a more up to date time period with a view to validating/invalidating, expanding and updating the results in the pioneering efforts of Ogunba (1997), Ogunba and Ajayi (1998) and Aluko (2000). Accordingly, the present effort will be to deal with valuation of properties in the Lagos metropolis which is regarded as the most active investment property market city in Nigeria.

 

  1.2 Statement of the Research Problem

Property valuation performs an essential role in property transactions. It provides advice on prospective purchases and sales in addition to supplying material information to underpin property lending decisions. Moreover, since the 1960s and 1970s, property valuations have been used to proxy the exchange price of property investments for performance measurement purposes. This more recent use of valuation indices is a major difference between the property performance measurements and the performance measurement of other investment media markets wherein measurement are undertaken by reference to market transactions.

The differences have led some analysts to argue against property as a portfolio asset, which in turn has led to the under-representation of property in many portfolios. Moreover, the lack of confidence in the use of valuation-based indices might be evidence that the portfolio industry does not readily accept valuations as accurate indicators of prices (and hence returns) in the absence of accuracy studies proving that they are proxies for each other.

Ajayi (2003) noted that increased valuation accuracy and consistency are the demand of the more sophisticated and enlightened clients in the emerging property market of today and the property market has seen remarkable change within the past forty years. Europe and the US have witnessed the emergence of institutional investors, the management of investments on portfolio basis and the recent advent of new property finance methods including securitization and unitization. Clients are now getting much more sophisticated and analytical in their decision making approaches and therefore increasingly require more accurate and consistent valuation estimates from their consultant valuers.

While Accountants, Stockbrokers and other financial consultants have progressively refined their financial analytical techniques to meet and satisfy their changing clients’ expectations, it is rather unfortunate that the property professionals – represented in Nigeria by the Estate Surveyors and Valuers – have been rather slow and lukewarm in their attitudes and approach to the required accuracy changes in valuation practice thereby resulting into complaints from clients about valuation estimates (Ojo, 2004).

The issue of accuracy is also imperative because the profession as it is today is facing stiff competition in all facets of its traditional areas of practice, taking into consideration the fact that the estate agency aspect of the profession has become an “all comers” affair and moreover, that Engineers, Lawyers, Facility Managers and even some stark illiterates (“quacks” of the profession) do engage in property management functions. At the same time, Quantity Surveyors are agitating to take-over the insurance valuation aspect of the profession, whilst Engineers are also seeking to be plant and machinery valuers. In the face of such stiff competition, the estate surveyors can ill afford to be found negligent in the accuracy of their work.

The implication is that the valuation surveyor is faced with both increasing client requirements for accuracy as well as stiffer competition from related professionals. These twin issues of stiff competition and consistency cry out, as it were, for the valuer to respond with pace setting levels of accuracy, and sophistication in his valuation advice. The problem of inaccuracy in valuation manifested itself recently in the case of the valuation of the assets of Nigeria Telecommunication Limited (NITEL) for privatization/disposal purposes when members of staff of the company as well as the interested stakeholders and members of the public in Nigeria openly voiced out their complaints against the excessively low valuation figures/estimates the estate surveyors ascribed to the assets of the company. It was on the strength of such complaints that the then Federal Government under President Olusegun Obasanjo canceled the whole privatization exercise and ordered a re-valuation.

Other instances of valuation estimate inaccuracy according to Ojo (2004) came from financial institutions who continuously complained about the accuracy and reliability of mortgage valuation figures supplied them, which they considered as under-representing the values of such foreclosed collateral securities. He went further to note other instances of alleged inaccuracy which were being investigated by the Professional Practice Committee of the Nigerian Institution of Estate Surveyors and Valuers.

In addition, Ogunba (1997) and Ogunba and Ajayi (1998) alluded to the fact that the average layman nowadays casts doubt on valuation estimates emanating from estate surveyors and valuers. No matter how unjustifiable the criticisms might be, that estate surveyors and valuers are often influenced to hike their valuation estimates because of the need to increase or generate their fees, such criticisms or allegations are a pointer to the fact that inaccurate valuation estimates call to question the valuation skill, integrity and competence of Estate Surveyors and Valuers especially in their core area of practice. From the legal perspective, there is danger that valuers in Nigeria are increasingly found liable for negligence in cases where their valuation figures or estimates mislead unsuspecting and uninformed clients, notwithstanding the exclusion clauses often entrenched in Nigerian valuation reports (Okoror, 1995).

Besides, there is the looming possibility that the property investing public, faced with continuously unreliable estimates, may decide to dump the services of estate surveyors and valuers in favour of services from other consultants such as the Accountants, Financial Analysts, Engineers or Quantity Surveyors who, they think may be able to provide more realistic and reliable estimates.  It is therefore important for estate surveyors and valuers to wake up from slumber and take the issue of valuation accuracy and consistency more seriously.

Other envisaged consequences of continuous and unchecked inaccuracy and inconsistency are adequately summarized by Aluko (2004) as:

• Constraints on property performance analysis due to uncertainty surrounding valuations. This may be damaging to the operation of both the property market and property indices;
• Adverse influence on the relevance of the valuer because if a valuation can only have a limited likelihood of accuracy, the client may question why a valuation is necessary at all;
• Adverse influence on the credibility of the valuer as inaccuracy in valuation means that professional advice would be meaningless as the whole basis of property advice rests on the assumption that valuations are a good proxy for prices; and,
• There could be damage to confidence imposed on the property market.

There seems to be relatively sparse research work in Nigeria on valuation accuracy, reliability and credibility as against such studies in the UK, US, Canada and Australia especially in the past three decades. Also, in the face of the globalization of efforts in this very important and core area of the profession; Nigeria and the rest of Africa cannot afford to feel unconcerned and lukewarm if they want to be relevant in the emerging scheme of things.

In the face of such increasing needs for accuracy, reliability and credibility in valuations, we cannot therefore afford to fold our arms in the face of these problems, observations and criticisms and expose ourselves and the profession to ridicule. It is against the foregoing background that the following questions agitate the mind of the researcher in a bid to ensure that valuation estimates become more accurate and standardized in Nigeria. The study focuses in the main on valuations and sale prices of properties as well as valuations between firms by examining the degree to which they are proxies for each other and if not, the reasons why they fail to be proxies. In view of the foregoing, the questions to be addressed include:

• What is the maximum acceptable margin of error (acceptable to all stakeholders) of valuations relative to realized prices?
• Are Nigerian valuations a good proxy for valuations of other firms?
• Are rating valuations a good proxy for property market transaction prices?
• What are the causes of inaccuracy in property  rating valuations in Nigeria, if it at all inaccuracy exists?
• What are the condition(s) necessary to ensure correct estimates of market price?
• Are client influences significant contributors to inaccurate valuations in Nigeria?

 

1.3 Aim and Objectives of the Study

The main aim of this study is to examine the degree of accuracy and consistency in valuers’ estimation of realized property market prices in Lagos metropolis with a view to improving on the quality of valuation practice.

The specific objectives of the study are to:

1. Ascertain the perceptions of stakeholders as to the maximum acceptable margin of error in valuation estimates relative to sale prices within the study area
2. Determine if open market valuations are good proxies for real property investment markets in the study area
3. Examine if open market valuation estimates of one firm are good proxies for contemporaneous valuations of other firms in the study area, and
4. Identify and examine clients’ mode of influence on valuation estimates.

The essence of the study is to address the above issues and problems by focusing mainly on the questions of reliability/consistency benchmarks and the nature and causes of reliability and consistency of the professionally prepared  rating valuations in the Lagos metropolitan property market.

 

1.4 Significance of Study

The RICS teamed up with the Investment Property Databank (IPD) to carry out investigations into valuation accuracy in Britain on a bi-yearly basis. Since the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) are yet to follow suit, there is the need for estate surveyors in academics to continuously investigate valuation accuracy and consistency and share with their colleagues in practice results and implications of their findings and induce them to fund future research efforts on this issue.

The huge sums of money invested in real estate on an annual basis are enormous. The current happenings in the US with regards to bubble burst from the mortgage sector of the country’s economy are already affecting the fortunes of other countries. To avoid such risks in Nigeria, this study serves as an eye opener for estate surveyors and valuers in practice, other professionals and stakeholders in the real estate business as to the extent of risk they are about to take.

Valuer’s clients are handicapped in decision making by the absence of adequate and reliable information in the property market, unlike the capital market where values of securities can be imputed quickly and easily from the prices at which identical assets trade in regular active markets.  Information about market values in the property market is much more difficult to ascertain due to the heterogeneity of properties, the infrequency with which they trade, and the difficulty in observing or tracking transaction prices due to secrecy.  Additionally, the decentralized nature of most property markets give rise to a dispersion of privately agreed transaction prices about notional market values. The implication of this is that capital market operators and portfolio managers require valuations as a proxy for price. The Nigerian Institution of Estate Surveyors and Valuers therefore needs to encourage research to determine the veracity of inaccuracy claims and if proven, to take corrective action. The present research is in this direction, in an attempt at assisting the profession to justify its property price predicting relevance.

The outcomes of earlier studies carried out by Ogunba (1997), Ogunba and Ajayi (1998), Aluko (2000) and Ogunba (2004) in the area of valuation accuracy/variation have tended to be contradictory in the sense that while Aluko’s work found that valuation estimates emanating from Nigerian valuers were accurate others concluded otherwise. It is necessary to clarify the position as to what can be considered as the acceptable margin of error and identify plausible reasons for valuation inconsistency amongst valuers operating in the same region and with similar educational background. This is necessary to instill confidence in the ever increasing clients searching for genuine information about the real estate market trends over time and in the near future.

 

1.5 Scope of Study

No matter how ambitious a researcher could be, no single study can be all encompassing. Hence, study limits have to be defined clearly. Investments in real estate are an ongoing issue on daily basis all over the country. However, time constraint does not allow for the coverage of the entire country. For this reason, the scope of of this research is restricted to Lagos metropolis where the vast majority of Nigerias’ valuation practice is generated. The Directory of the NIESV (2002 edition) shows that out of 439 registered estate surveying and valuation firms in Nigeria, 52% of the firms are based in Lagos metropolis alone. Lagos Metropolis consists of five convenient business districts namely:  Marina/Broad Street, Lagos Mainland consisting of Yaba/Ebute Meta, Apapa/Ijora,  Ikoyi/Victoria Island  and Ikeja from which deductions are made for each of the districts and for the whole of the Lagos metropolis. The five districts represent the major business sectors of Lagos metropolis, where the bulk of valuation activities normally takes place and where most practicing surveyors are concentrated.  Lagos Island harbours majority of banks, multi-national companies, insurance companies, and also where wholesale and retail commercial activities are concentrated. Lagos Mainland on the other hand represents the intermediary between the former Federal/State capital territory and the new Lagos State capital. Ikeja is the present Lagos State capital with its attendant employment opportunities as well as concentration of commercial activities. Apapa/Ijora axis represents the commercial neighbourhood that has developed overtime as result of the presence of Apapa seaport acting as the drawing force of both people and commercial activities.

In the choice of property to be studied, Ajayi (1990) noted that wide and detailed studies provide stronger basis for rigorous comparative analysis and more generalizeable conclusions. However, the study concentrated on residential property valuation only. This is necessary because sampling all sectors of property valuation may be impossible for a single researcher given the nature of the study and the time limit to complete the study.

In the choice of valuers, three basic classifications of estate surveyors and valuers has been identified namely private-sector estate surveyors and valuers (i.e. those estate surveyors and valuer working in private practice), public-sector estate surveyors and valuers (i.e. estate surveyors and valuers working in government establishments such as Ministries, Corporations etc) and the academicians. The study focused on valuers in private practice because they are in the majority and are actually the people mostly engaged for valuation assignments by various stakeholders.

There are various methods of valuation such as Investment, Cost/Contractor, Residual, Profit and Comparative methods. For this study, emphasis is given to the Investment Method of valuation because most investors look up to the returns they can make on whatever they put into any venture within reasonable time limits. An intensive study of the five methods of valuation, on the other hand would be too wide and cumbersome.

The purposes for demanding for a valuation exercise are varied. There are valuations for rating and taxation, compulsory acquisition, insurance, balance sheet, merger, mortgage, auction, etc. This study is limited to valuation for property sale purposes only. This is to avoid wide study of all purposes of valuation which could lead to conclusions which may be general and without specific implications or applications in the real estate business.

Notwithstanding the above limitations, the validity of the study would not be affected.

 

1.6 The Study Area

Lagos State covers an area of about 3,577 square kilometers, representing 0.4% of Nigeria’s territorial landmass according to Esubiyi (1994). The State shares boundary in the North with Ogun State, West with the Republic of Benin, and stretches for over 180 kilometers North of the Guinea Coast of the Atlantic Ocean. Politically, Lagos State according to Ogunba (1997) had expanded as a result of rural-urban drift and had become a metropolis enclosing settlements such as Mushin, Oshodi, Ikeja, Agege, Shomolu, Bariga, Epe, Ikorodu and Badagry. The 2006 National census put the population of the State at 9,013,534.

Lagos Metropolis has been chosen as the study area because it is the most important commercial city in Nigeria thus providing a sufficiently vibrant economic base and valuation activity which the researcher hopes would provide a vigorous and robust study base Lagos apart from being Nigeria’s former capital, is the largest metropolitan city in Africa. The metropolis is located within the coastal frontage of Lagos State and is bounded in the West, by the Republic of Benin, in the East by Ondo State and Atlantic Ocean in the South and in the North by Ogun State. The metropolis covers an approximate land area of 2,350 square kilometers spreading over four main islands of Lagos, Iddo, Ikoyi and Victoria islands.

On the economic scene, Lagos metropolis has grown from a small farming and fishing settlement to become an important centre of commerce, finance and maritime in Nigeria, housing the headquarters of several banks, industries and commercial enterprises. According to the NIESV Directory (2002), most Estate Surveyors and Valuers aggregate around major business districts of the metropolis such as Lagos Island, Ikeja, Apapa/Ijora, and Lagos Mainland where there is the expectation of a very active property market.

 

 

 

1.7 Definition of Key Terms

In a study of this nature, it is considered necessary and desirable to define key terms with a view to clarifying both operational and constructive definitions to avoid ambiguity. Constructive definition involves substituting the concept or construct of the term we are defining with other concepts or constructs, the operational definition requires that the concept or construct be assigned a type of meaning which the researcher wants to carry throughout the study.

 

1.7.1 Market Value:

Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and willing seller in an arm’s length transaction after proper marketing wherein the parties had acted knowledgeably, prudently, and without compulsion IVSC (2002). The accuracy of any valuation is, therefore, defined as how close the valuation is to the exchange price in the market place.

 

1.7.2 Market Price:

 Market price refers to realized prices; the recorded consideration paid for a property which has ostensibly been left in the market for a reasonable period of time. The recorded consideration is taken as the best price that a property asset could realistically command in the free market. Transactions do not occur at the point where most players in the market would assess its worth; the transaction occurs at a point which the seller considers to be the highest bid. Market price should therefore capture the highest price at which the property can be sold. Ordinarily, in a perfectly competitive market where there is full information, market value should equate with market price.

 

1.7.3 Valuation Reliability/Accuracy:

Reliability according to Allan (2000) is the degree to which a measurement instrument gives the same results each time it is used, assuming that the underlying object/situation being measured does not change. One can test reliability by determining whether several observers of an object/situation will give similar accounts of it. Reliability is used interchangeably with the term accuracy in this study. Mathematically, reliability/accuracy is usually measured either in terms of percentage standard deviations ranging from ±5% to ±15%, or through statistical tests such as regression equation, where it is expected that the intercept of the equation would be statistically indistinguishable from zero and the constant indistinguishable from one. The study adopts Crosby et al (2003) definition of reliability/accuracy as the closeness (proximity) of the valuation to the realized exchange price.

According to French (2007) uncertainty was defined as anything that is not known about the outcome of a venture at the time the decision was made. Similarly, Mallision and French (2000) observed that “normal uncertainty is a universal and unsurprising fact of property valuation. The open acknowledgement of that fact, and transparent management of its implications, will enhance the utility of valuations”.

 

1.7.4 Valuation Consistency and Variation:

Consistency is a term used interchangeably with the term variation in this thesis. It describes the quality of being mutually constant or not being contradictory. Relating this to the present study, consistency in this study will be taken to refer to the closeness or otherwise of the valuation predictions of two or more valuers who carry out valuations of the same property or properties at the same period of time. The terms reliability and consistency are mathematically measured either in terms of percentage standard deviations or through statistical tests such as regression equation, where it is expected that the intercept of the equation would be statistically indistinguishable from zero and the constant indistinguishable from one.

French (2007) observed that the problem with variance research is that information pertaining to it either has to be set up artificially with a number of valuers asked to provide valuation on set of properties or the analysis relate to valuation s carried out at different points of time in the market. The outcomes of such studies varies substantially and in essence simply reports that different valuers have different ideas and thus produce different valuation figures.

 

1.7.5 Valuation

This is the process of estimating the market value, insurance value, investment value or some other properly defined value of an identified interest or interests in a specific parcel(s) of real estate as at a given date. It is the estimate of the most likely selling price, the assessment of which is the most common objective of the valuer. The most likely selling price is commonly termed “open market” or “market price”. Baum and Crosby (1988) distinguish between two types of valuation: price prediction to the market or to an individual. Valuation in this thesis is taken to be the prediction of most likely sale prices in the market rather than to the individual.

 

1.8 Limitations of Study

In the course of the study the under-listed constraints were encountered. These constraints included:

1. Limited human, material and financial resources at the disposal of the researcher which imposed restrictions on study coverage.
2. The technical nature of some of the questions that were put across to respondents which necessitated the researcher resorting into the use of personal interviews for some respondents thus taking a toll on the time of the researcher.
3. Getting actual selling prices of properties is usually tricky and problematic because the sale of a property is always conducted with a high degree of secrecy. Moreover the market / sales prices stated in documents transferring ownership usually submitted to the Land Registries are, more often than not, manipulated to avoid/reduce tax payments.
4. The study of a few selected towns and cities can not be completely typical of all towns and cities in a country as big as Nigeria. However, since majority of estate surveyors and valuers in Nigeria aggregate and concentrate in the study area, the findings of the study is believed to be applicable to majority of valuers in the country.

The constraints however did not significantly affect the results of the study because necessary precautions were put in place to consult experienced professionals who had practiced across varying economic spheres before and after Nigeria got her independence. For this reason, the findings, observations and recommendations that emanated from the study could be tested across the major cities within the country and found useful.

1.9 Chapter Summary

In this Chapter, a comprehensive introductory overview to the study was undertaken. The research problem was defined against the background of increasing criticism of valuation methodologies in recent times in Nigeria. The study therefore examined the nature and causal factors of inaccuracy in valuers’ estimation of realized residential property market prices in Lagos metropolis, Nigeria.  The justification for the study was premised on three issues: First is the need for estate surveyors in academics to continuously investigate into valuation accuracy and consistency and share with their colleagues in practice results and implications of their findings and induce them to fund future research efforts on this issue.  The second justification for the study is to serve as an eye opener for estate surveyors and valuers in practice, other professionals and stakeholders in the real estate business about inherent risk in inaccurate and inconsistent valuation.  The third justification arose from the need to determine the veracity of inaccuracy claims and if proven, to take corrective action. The present research is in this direction, in an attempt at assisting the profession to justify its property price predicting relevance. The scope of the study was limited to Lagos Metropolis which is Nigeria’s major commercial/industrial nerve centre. The next Chapter is a review of relevant literature on the subject of study.

THE EFFECT OF STRESS ON EMPLOYEE PRODUCTIVITY

 

 

CHAPTER ONE

1.0                                          INTRODUCTION

1.1 BACKGROUND OF THE STUDY

It has been acknowledged that job stress plays a role in employee performance. This nation has its root in what is called attention theory. Simply put attention theory asserts that the experience of stress has the effect of reducing on individual ability to concentrate on multiple tasks. Anyone who has worked feverishly to meet a deadline understands this relationship intimately. It has been “standard fare” in basic management training to point out that there exist some optimal level of stress below which employees are unmotivated and above which they are over whelmed. Unfortunately managers who attempt to find an optimal stress level for their work group frequently find their effort inconsistent result or downright negative results.

Stress is a universal element and persons from nearly every work of life have to face stress. The universality of stress is such that it is experienced by employees all round the globe and has become a major problem facing employers, particularly in developing nation where the employers do not realize the impacts of stress on employee productivity.

The work place stress is indeed a costly epidemic, Rebecca Maxan in her article published by FDU magazines in 1999 noted that three out of every four American workers described their work as stressful and the problem is not limited to those shores, in fact occupational stress has been defined as a “global epidemic” by the united nations international labor organization.

Stress is a factor in every one’s life. Particularly during major events such as marriage divorced or buying a home. But according to the Holmes-Rachs life event scale, which rates the level of stress caused by such event, many of the most stressful events are related to the work place firing business re adjustments, change in financial status line of work, trouble  with the boss, varieties in work hours or conditions retirement and vacations.

Surprisingly, stress is not always a bad thing. It can stimulate creativity and productivity. According to Robert Osterman, professor of psychology at FDUS Tecnneck-Hackensack campus, “No one reaches peak performance without being stressed whether an athlete, an office worker or a manager” the natural pattern of human behavior is to experience a stress-causing tension and then return to a normal realized state. The problem occurs when stress is so over whelming or constant that this pattern is broken and that is to say that stress leads to old age. An internationally applicable measure of occupation stress develop by Osterman, named SWS for Situation (s) work (w) and self (s), encompasses all three dimension because Osterman says survey that only look at work factors are not giving the full picture” for factory workers, stress    such as dealing with dangerous heavy equipment or working in an uncomfortable environment in contrast office workers are more likely to experience stress that is related to interpersonal relationship on job “people pressures” such as under supervision, tension among team members and fear aversion of conflict can cause stress “for many people, the core of their social life is the people with whom they work with” explains Ostermam” but work is not a socio situation to good relationship such as rumors and power play among executive who are comparing for the next promotion”.

Occupational stress is not related only to what goes on at work conflicts between the demands of the work place and of home life are increasingly common. According to a survey completed for the US department of labor, ten percent (10%) of people who are married or living with children less than 18 years experience several work-family conflicts and an additional twenty five percent (25%) report moderate levels of conflict. Definitely, every problem has a corresponding solution, hence some techniques can be implemented to prevent or reduce excessive stress. These techniques and their implementation constitute the process involved in stress managements.

1.2 STATEMENT OF THE PROBLEM

There has been increasing amount of talk about “employees stress” over the decades. Despite the availability of other companies within the environment of Afikpo North Local Government Area, the employees or the workers experiences allot of stress on workers’ productivity in an organization or firm. This research is aimed at understanding and bringing out an encompassing view of stress and its relationship with employees performance (productivity). The researcher thus will give an over view of work stress, productivity and their inter-relationship in an organization. Hence, the effects of stress on workers’ productivity. Lawal (2006:10) this is the type that leads to anxiety depression, frustration, fatigue and low self-esteem.

Behavioral effects: This is the type that leads to accident proneness, substance abuse impaired speech, restlessness and forgetfulness. Cognitive effect: this is the type of stress effects that affects our through process lead to difficulty or fear of meaning  discussion forgetfulness hypersensitivity mental blocks and difficult concentrating and thinking clearly and this may be intensified by substance abuse.

 

1.3 OBJECTIVE OF THE STUDY

The study is aimed at indept analysis of the work place stress. Hence, understanding its effects on productivity.

Therefore the objective of the study include:

1. To have in dept understanding about work stress
2. To know the various types of stress
3. To evaluate the negative effects of stress on workers
4. To evaluate the positive effects of stress on workers
5. To understand how stress effects productivity
6. To understand the various strategies and method of effective stress management.

1.4  RESEARCH QUESTION

The questions that will asked in this research to enable collection of the required data for the study will include:

1. Is stress a necessary condition for the attainment of optimum productivity?
2. Does stress encourage productivity in organization?
3. Does high stress beget high productivity or otherwise?
4. Does low stress beget low productivity or otherwise?
5. Does mild stress have a negative effect on workers’ productivity?
6. Does mild stress have positive effect on workers’ productivity?

1.5  SIGNIFICANT OF STUDY

1. This study will be of great use to students who want to know about the topic.
2. It will also serve as a reference material for future study
3. This study will enlighten managers in all field of work and employees all round the globe to add knowledge on this that is studied
4. It will widen the horizon and increase the level of understanding on the effects of stress in the area of study,

1.6 SCOPE OF THE STUDY

The researcher narrowed down the study to a particular organization, Edwin and  Emmanuel table water Afikpo North Local Government  Area of Ebonyi State.

1.7 LIMITATIONS OF THE STUDY

Definitely the study is not without limitations, the limitations includes the following

1. TIME: among all, time is the highest possible limitation to the study. The time available for the study was limited the horizon to which the researcher may wish to expend the study. He will confine all his activities within the given time available for the research.
2. FINANCE: the fact that the researcher is still a student who has no external financial assistance; he was faced with financial challenge. The researcher is still a student and has no external financial support from any institution, this limit the extent he may wish to carry the research as he will not exceed his financial capabilities.
3. QUESTIONNAIRE ADMINISTRATION: in the cause of administering the questionnaire, the researcher was not be given adequate attention. This posed a challenge to the efficacy of the study.
4. LEVEL OF LITERACY OF RESPONDENTS: in the area of study, majority of the employees are just SSCE holders, this posed some limitations to the researcher as it limited the questions to the level they can possibly answer.

1.8 DEFINITIONS OF TERMS

1. STRESS: a physiological and emotional response to stimulate that which places physical or psychological demands on an individual.
2. STRESS MANAGEMENT: this refers to the wide spectrum of techniques and psychotherapies aimed at controlling a person’s level of stress, especially chronic stress for the purpose of improving functionally on daily basis.
3. MANAGEMENT TECHNIQUES: these are special methods and procedure professionally designed for application to managerial problems by manager in their managerial functions and duties.
4. PERFORMANCE: this refers to individuals output at a work place.
5. PRODUCTIVITY: this refers to an organization output calculates thus total production per total input calculated thus: total production per total input (man, materials, money and machines).
6. EMPLOYEE: individual employed to work in an organization or any given business establishment.

PSYCHOTHERAPIES: these are techniques or procedure that is used as palliatives to any mental emotional or behavioral disorder like those caused by stress.

TAXATION AND ITS EFFECT ON THE NIGERIAN ECONOMY (A CASE STUDY OF OWERRI MUNICIPAL COUNCIL)

ABSTRACT

The aim of this study was to investigate on taxation and its effects in the Nigeria economy. One of the objective carried out by the researcher was to examine peoples perception on taxation. Taxation is seen as a tool aimed at improving the performance of the national economy by such means as altering the balance between current consumption and capital investment. It looked at the work of other  authors in order to make the exercise richer. Their different views were seen in different books and other materials (journal) which made this study much better than similar works in this area. In carrying out this study, the researcher used both primary and secondary data. Qestionnaries and interviews were used in generating the primary data while the secondarry data were obtained through library researcher and other sources. The purpose sample of 147 respondents were randomly selected for the study to avoid numerous errors in the calculation. From the data collected and analysed, it was evident that tax collection plays a great role in the development of the Nigeria economy. Conclusively, discussion, summary, conclusion, and recommendations were made to achieve the purpose of this work.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Title Page                    i

Statement of Authenticity                  ii

Abstract                      iii

Acknowledgement                  iv

Dedication                  v

CHAPTER ONER

1.0       Background to the Study       1

1.1       Statement of Problem 4

1.2       Research Questions     4

1.3       The Objective of the Study    5

1.4       Significance of the Study       5

1.5       Limitations/ Scope of the Study         5

CHAPTER TWO LITERATURE REVIEW

2.0       Introduction    7

2.1       Brief Historical Background   8

2.2       Purpose of Taxation    10

2.2.1. Redistribution of income and wealth   10

2.2.2    Promotion of social and economic welfare     10

2.2.3    Economic Stability      11

2.2.4. To foster growth in the key sectors of the economy    11

2.2.5 Regulation          11

2.3 Nature of Taxes    12

2.4. Classes of Tax      13

2.4.1    Direct Taxes    13

2.4.2    Direct Taxes    13

2.5 Principles of Tax   14

2.5.1    Clarity and Certainty  14

2.5.2    Convenience   14

2.5.3    Economical and Efficien.cy    14

2.5.4    Fairness           15

2.6 The Subject Matter of Income      15

2.6.1 Income Tax Reliefs        18

2.7 Concepts of Income Tax Evasion, Avoidance and Default         18

2.7.1    Factors that bring about tax evasion, tax avoidance and tax default 21

2.7.2    Existence of the income tax evasion   22

2.7.3    Reasons for income tax evasion          24

2.7.4    Effects of income tax evasion            25

2.7.5    Measurement of income tax evasion   27

CHAPTER THREE METHODOLOGY

3.0       Introduction    29

3.1       Study Population and Sample            293.2 Sampling Technique      30

3.3Data Collection Instrument           30

3.3.1    Questionnaires            30

3.3.2    Interviews       31

3.3.3    Validity, Reliability and Analyses      31

3.3.4    Data Presentation        32

3.3.5. Problems of the Study  32

CHAPTER FOUR

RESULTS PRESENTATION AND ANALYSES

4.0       Introduction    34

4.1       Analysis of Retrieved and not Retrieved Responses from Respondents       34

4.2       Analysis and Interpretation of Data FromImo State tax Officials     36

4.3       Analysis and Interpretation of Data From Traders     40

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction          45

5.1Summary of Finding of the Study 45

5.2Conclusion 46

5.3Recommendations 47

5.4. Suggestions for Further Research            48

References      49

Appendix        50

 

 

 

 

 

 

 

 

 

CHAPTER ONE

1.1 BACKGROUND TO THE STUDY

The modern view of taxation stems from the common premises that no one can be an island for him or herself. This means that in the modern society, societal members are dependent on one another. This interdependence leads to communal way of living and as such certain goods and services enjoyed by the society are usually referred to as the infrastructure of the society. The provision of the infrastructure of any society calls for a colossal amount of money which, of course the individual will find difficult to provide. There is therefore the need for a common source of fund on which to draw for the provision of the needed infrastructure.

One of the means of this common source of fund is taxation. In 1996, Moses, Williams and Salter defined tax as a compulsory levy collected by the government to fund public expenditure. All over the world, taxes are being raised to provide services that private enterprise or individual citizens cannot provide or services that are better provided by the state.

In view of the above, a tax is a compulsory levy on the wealth of a person or body of person for the provision of the infrastructure of the state. Taxes are now seen as compulsory extractions that involve personal obligations for common public purposes. Every government has its own development programme to pursue and one way of financing such progammes is revenue derived from taxation. But in a democratic society, this power is vested in the legislature. This however, is not the case in an authoritarian regime where the imposition of tax rests on the ruling body.

Two broad classes of taxes can be identified. These are direct and indirect taxes. This differentiation is based on the extent to which a particular tax burden could be passed onto a third party by the initial tax payer. From the above, all taxes which cannot be passed onto third parties or the final consumer by the initial taxpayer are considered as direct taxes. An example includes personal and corporate tax. Indirect taxes are those taxes of which the burden can be transferred with relative ease by the initial taxpayer to third parties. An example is the sales tax or the VALUE ADDED TAX (VAT)

Income tax was first introduced in the then Gold Coast on November 1^st, 1943by the income tax ordinance 1934 (ordinance No. 27 of 1943. This ordinance was amended several times. In particular, a very lengthy ordinance, the income tax (Amendment) ordinance 1952 was passed to rectify most of the deficiencies that had been experienced in the previous enactments.

In 1961, drastic amendments were made to the consolidated edition by Act 68, followed by Act 178 and 197, in 1963, and sealed off by Act 312 in 1965. A second consolidated edition (the income tax decree, 1966-No. 78) was published in September, 1966 and a third consolidated edition (the income tax decree 1975-SMCD5) was also published in December 1975. A series of amendments to the 1975 decree made it cumbersome in its usage. One has to grope very patiently through a labyrinth of new provisions in separate enactments to ascertain the current provision. This situation was unavoidable since every annual budget invariably introduced changes in tax provisions to amend the existing law. The introduction of the internal revenue Act 2000 (Act 592) finally repealed the SMCD 5 decree on 1^st January 2001. The characteristic feature of Act 592 as that, it contains other taxes that were not included in the previous SMCD5. This is because these taxes are not taxes on income. The taxes concerned are capital gains tax and gift tax.

It is an undeniable fact that revenue from taxation forms the main source of financing the ever increasing capital and recurrent government expenditure. Tax is considered to have three functions according to the 1994 World Book EncyclopediaThey are; For fiscal or budgetary (that is to cover government expenditure)

Economic (that is to promote stable economic growth) and the last but not the Least,

Social (that is to lessen inequalities in the distribution of income and wealth).

The overall objective of taxation is to promote general welfare of the people. Taxes contribute to providing the income needed for essential function of government. At the same time taxes serve as a socio-economic tool which can be used to reduce excessive inequalities of wealth. Additionally, taxes can be manipulated to check inflation and promote economic stability.

Systems are put in place by governments worldwide to make every individual pay tax. In Imo State, the Imo State revenue authority (Imo State tax) is responsible for assessment of direct taxes, collection of direct taxes and payment of amounts collected into the consolidated fund. From his, the fund disbursement of the money needed by the various sectors of the economy for developmental purpose is made.

As it is, there is a constant flow of revenue into the consolidated fund but government and its agencies always complain of in adequacy of revenue. This paradox can simply be explained thus, the revenue targeted has not been able to meet the expenditure targeted. This deficiency in revenue generation from taxation can be ascribed to many factors. Some of these factors are income tax evasion; avoidance and default are on the ascendancy thus thwarting the government’s efforts of meeting its social responsibilities.

 

1.2       STATEMENT OF PROBLEM

Following the adoption of various tax policies in Imo State, operations of traders in Kumasi, have seen a stressful transformation. It is an open truth that the traders in the informal sector have not been paying taxes and are not eager to do so.

It is upon this observation made by the researchers and government officials that the researchers embarked on this research as a way of investigating the reasons for evasion of the payment of income taxes by the traders and its effects on the economy.

1.3 RESEARCH QUESTIONS

Questions to be addressed include:

The following research question will be formulated:

Is there enlightening campaign on tax incentive?

Would tax incentive increase collection of taxes?

Are the beneficiaries of tax incentive taking advantage of incentive?

Would tax incentive create investment opportunities?

Would tax incentive help a company increase its profitability?

Does the politicians influence tax policy to favour themselves or not?

1.4       HYPOTHESIS

H0: these is a relationship between taxation and economic growth in owerri municipal council

H1: these is no relationship between taxation and economic growth in owerri municipal council

 

1.5       THE OBJECTIVE OF THE STUDY

The main objectives of the study include;

To examine why people evade income tax payment

To examine the effect income tax evasion has on the economy.

To examine the problems that tax administration faces in an attempt to mobilize tax revenue from traders in Adum-Kumasi and offer solutions with suitable suggestions and recommendations.

 

 

1.6       SIGNIFICANCE OF THE STUDY

The study will help get traders, tax administrators and other stakeholders informed about the impact taxes have on developing a nation by government as well as it programs and infrastructures.

Policy makers would have the advantage of improving on strategies and laws for administering tax on traders in Imo State from the findings and conclusions drawn out from the research. Other researcher’s interested in the same study area can refer to for further projects.

1.7       SCOPE OF THE STUDY

It also took a lengthy time to obtain information from Imo State tax, because those responsible were unwilling to spend their working hours in responding to some interviews and questionnaires. The researchers were constrained by inadequate resources to enable them have a wider study coverage.

 

1.8       LIMITATIONS OF THE STUDY

Traders in Imo State are mostly, the self-employed in the informal sector; this as a result made it difficult to access some vital information even though their confidentiality was assured.

Apart from the aforementioned limitation, the researchers also encountered other problems in the course of carrying out the research work, such as inadequate time as other academic works were combined with data collection.

1.9       DEFINITION OF TERMS

 

SELF ORGANIZATION AND TIME MANAGEMENT SKILLS NEEDED BY MODERN SECRETARIES FOR SUCCESSFUL JOB PERFORMANCE IN THE BANKING INDUSTRY.( A CASE STUDY OF FIRST BANK, PLC AND KEYSTONE BANK PLC, IMO STATE.  )

CHAPTER ONE

 

INTRODUCTION

 

• BACKGROUND OF THE STUDY

In any organization, time is related very high a secretary that does not work with time can not be productive in an office. So the secretary must know how to manage her time properly as well as that of her boss to be able to achieve the organization’s set goals.

Time can be described by Bhatia (2002) as the one commodity that is unbiased, available to all in equal amounts. It does not cost anything monetarily and it is completely of our own disposal. We never seem to have enough of it and it is not possible to achieve it once used. Time wasting on the other hand has been observed as the major cause of secretary’s poor performance on the job. Good secretaries are those who can manage themselves as well as others.

Time according to Bennelt (2001) is the inexplicable raw material of everything. Time can be given different definitions. In a day of 24 hours, sometimes we hear some people say that the day is too slow while others say that it is fast. Even a year can be said to be long or short. It is a popular saying that time is money. Invariably, it is important that time should be properly utilized or well managed. Mackenzie (1995) asserted that an efficient secretary arranges her day’s work according to priority in order to meet up with the boss’s target, thereby achieving greater results in the work place.

Aromalaran (2003). Identified time waster as those vices which prevent office workers from accomplishing desired goals at the appropriate time.

A good secretary is one that always accepts responsibilities without grumbling and should be able to carry out work without supervision whether directly or indirectly.

 

• STATEMENT OF THE PROBLEM

The researcher in the course of her discussion with some secretaries discovered that a lot of them close very late from their offices due to heavy workload which however spill over the next working day. This problem arouse due to the inability of some secretaries to plan their work in order of priority.

This observation brought about the need to examine the roles being played by secretaries in improving their performance, thereby achieving the organizational set goals and objectives.

 

1.3    OBJECTIVE OF THE STUDY

The main objective of this research is to investigate erratically the effect of time management on the performance of secretaries in an organization.

Specifically, the study attempted:

• To examine the methods secretaries can use to organize themselves and manage their time in first bank Plc and Keystone bank Plc, Imo State.
• To ascertain the extent to which poor self organization and time management can affect job performance of secretaries in first bank and keystone bank Plc Imo State.
• To examine the factors that contributes to time wasting in first bank and keystone bank Plc, Imo State.
• To ascertain how secretaries perform them administrative job alongside their routine secretarial duties in first Bank and Keystone Bank Plc, Imo State.

 

 

• RESEARCH QUESTIONS
• What are the methods secretaries can use to organize themselves and mange their time?
• To what extent can poor self organization and time management affect job performance of secretaries.
• What are the factors that contribute to time wasting?
• How do secretaries perform their administrative job alongside their routines secretarial duties?

 

1.5    SIGNIFICANCE OF THE STUDY

          This study could be of great important to secretaries in both the public and private sectors as well as business men generally, administrators and to government functionaries engaged in one form of activity or the other. The knowledge acquired from this study will enhance secretaries’ job performance and will also improve their knowledge on how to manage their time effectively and reduce their time wastage.

The study would be of immense importance to both management and staff of first bank and keystone bank Plc, Imo State.

 

• SCOPE OF THE STUDY

The study was restricted to self organization and time management needed for modern secretaries and there was no attempt to go outside them.

 

• LIMITATIONS OF THE STUDY

The researcher encountered a few constraints during the process of the research. The researcher encountered the problem of fund in carrying out the research.

Another constraint was the reluctance of some respondents to give information because they did not believe the assurance given

 

 

them that the data collected were purely for academic purposes. The timing of the study posed some constraints because the researcher could not make a thorough search due to time frame needed for the project.

However, it is unlikely that these constraints would adversely affect the validity of the findings.

ROLE OF INTERNAL AUDIT IN BUSINESS GROWTH (A CASE STUDY OF DIAMOND BANK PLC)

ABSTRACT

This study is devoted to assessing the role of internal audit an instrument for improving the business growth. The methodology employed include personal interview, written question and library research, various recommendations were made in a bid to improve the business growth via internal audit. The economy today is known to be characterized by incessant frauds, forgeries and mismanagement of public properties. This though a global phenomena, has recorded an outstanding growth in the Nigeria bussiness growth. It outs across all sector of the economy; call for prompt appraised of internal control system is however weighted down by a lot of factors. The inability to reconcile the accounting systems, control system, regularly is more or less a heaven for fraudulent and unscrupulous staff, A problem which the consequences is incompetent manpower shortage. The train of irregularities and mismanagement has got to an extent that insufficient are not made, the economic future will become a menace rather than fortune to the populace. The point therefore is that the internal audit department should be hastily equipped with competent and qualified staff and modern facilities so that internal audit can still play its role in improving the bussiness growth.

CHAPTERONE

1.0                                             INTORDUCTION

1.1 BACKGROUND OF THE STUDY

The substance of every economic entity depends on its ability to achieve its goal and objectives management for the achievement of corporate goals. Wither or not management will achievement this goal depends on how strong and reliable the growth of any corporate body largely depends on the effectiveness and efficient of the internal control system.

Therefore management has a duty of or ensuring that a strong and reliable control system exists within the organization for accountability and country.

For accountability within the organization the conduct at audit is mentionable. This is because account prepared by management may not disclose fraud deliberately misleading or failed to confirm to regulations. Therefore the necessary of auditing to cooperative organization cannot be overemphasized as thus will help the safeguard of the assets of the organization by detection and prevention of all kind of misappropriation and fraud within the organization. Over the years business and corporate organizations run into problems of liquidation. Bankruptcy and insolvency as a result of not only economic fact in the business environment but as a result of management in adequate and inefficient to mange. The internal activities of the organization therefore creating room for financial malpractice within the organization. Thus many corporate bodies run into liquidation as a result of fraud and misappropriation of funds (working capital) within the organization. These are funds that are supposed to be used for expansion of business activities.

Thus, auditing as a professional activity is to birch the gaps and lapses of management activities and to repent to the owner of business on the financial position of the business.

According to the American Accounting Association (AAA) committee on basic Auditing concept (1971), auditing and evaluating process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events o ascertain the degree of corresponding between those assertion and establishment to interested users. The Nigeria auditing guidance sees auditing as an independent tax the appointed and or in pursuance of his appointment and in compliance within any relevant statutory obligations.

From the above, it is clear that despite need of auditing by management within the organization, government also requires the account are audit annually before they publisher. However there are two objective of auditing in any corporate entity, the primary and secondary objects, the projective of auditing require the auditor to give report on this opinion on account investigated.

1.2 STATEMENT OF THE PROBLEM

In our present business environment the news of insolvency, bankruptcy and liquidation have become frequency news handling in magazines. Several factors are responsible for those ugly issues. The issue of liquidation is not only attributed to the business environment bur internal management problems. Therefore the following problems are identified

• The issue of forgery of public fund for personal interest.
• Lack of sense of responsibility and other forms of social values.
• Low level of official awareness.
• Weakness of internal control system to monitor the activities of management.

1.3 PURPOSE/OBJECTIVE OF THE STUDY

At the end of this study. The following objectives are expected to be achieved.

• To identify the causes of fraud in public parastatals
• To examine how audit could help in the prevention and control of fraud.
• To examine the existence of internal control system in the organization

1.4 RESEARCH QUESTIONS.

• What role can auditing play in the eradication minimization of fraud?
• Does this bussiness have internal auditors?
• Does this bussiness have internalauditor(s)?
• Do the bussiness allow the internal auditor(s) freehand to perform his function
• How does your bussiness perceive auditing?
• Do you think fraud can draw this bussiness liquidation?
• Does your bussiness allow internalauditor(s) freehand to perform their function?
• Has fraud know to have taken place on suspected on this company
• What type of fraud was suspected in the bussiness
• Are all daily expenditure authorized and accounted for by concerned authorities?
• Does internal audit department check all sources and application of fund?
• Do you think audit can prevent the suspected fraud in your company?
• Are there any checks and balances in the administration and management of the company?
• Is the internal audit department independent?

1.5 RESEARCH HYPOTHESIS

Hypothesis is a prediction or conjecture state well in advance of observation about what can be expected to occur induce stated or given condition Asika (2004)

This research work “audit as a tool for prevention and control of fund” will be tested in the process of the research analysis as follows

H1: there is a significant relationship between audit and the prevention and control of fraud

H2: there is no significant relationship between audit and the prevention and control of fraud.

 1.6 SIGNIFICANCE OF THE STUDY

This study will go a long way helping all corporate to organization on the possibilities and consequence of financial recklessness and misappropriation of fund in business and probably the solution to ineffectiveness in the management firms.

Secondly, this study is significant because focused on corporate bodies which are the bedrock of every economy at large, this granting the continuity of corporate entities.

The study will encourage management to review and establish strategies to achieve maximum efficiency and effectiveness in order to bring about the desired return to contributors (shareholder).

Finally, this study, by using auditing as a tool, for prevention of fraud will help to ensure accountability, reliability and discipline within the management of companies in Nigeria.

1.7 SCOPE OF THE STUDY

The research works was carried out in yenagoa capital city of bayelsa state, Nigeria. The scope of this research work is limited to companies operating in yenagoa within effective reference to scripan nig Ltd.

However, the study will cover relevant areas such as auditing, fraud prevention, detection and control of fraud in the management of companies operating in Nigeria.

1.8 LIMITATION OF STUDY

This research is focused on the lack of adequate books and research inertial or the school library.

The bussiness under study is at a consideration distance from the research institution. Hence distance problem, another glaring limitation here is financial constraint in carrying out the study.

However, an optimum balance of application scarce resources is maintained in carrying out the study.

 

1.9 DEFINITION OF TERMS

Audit: An audit of financial statement is an exercise whose objective is to enable auditor express an opinion on the account presented by management at the end of the years on whether on his opinion the account show true and fair view or otherwise.

 Internal control system: Internal control is the whole system of control, financial and other wise established by government to evaluate and checkmate the activities of the organization at every point in time.

Internalauditing(s) These are set of professionally qualified auditors (Accountancy that members of ICAN /ANAN) who are not members of the organization, appointed by the shareholder/ directors to audit the financial statement prepared by management.

Error: This is an un-intentional mistake in financial statement book of account.

Fraud: This is an intentional act to falsely misrepresent the true state of monetary transaction as fund in the books of account.

Irregularities; this is an intentional distortion of financial statement or book of account often accompanied by the false files and record.