THE ROLE OF MERCHANT BANKS IN NIGERIA'S ECONOMIC DEVELOPMENT
THE ROLE OF MERCHANT BANKS IN NIGERIA'S ECONOMIC DEVELOPMENT
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Date
1994-05
Authors
ADEBIYI, AYOFE M
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Abstract
The language of business is money, and money is the
business of financial i n s t i t u t i o n s . The most developed
segment of the Nigerian Financial Structure is the
banking industry. Thus, it is quite noticeable that
despite the depressed s t a t e of our economy, there has
been a continuous increase in the number of banks day
in day out and most especially that of Merchant Bank.
For many years, but most especially since the Structural
Adjustment Programme became the fad, banks did more
than keeping people's money. The banks became traders,
dealers in foreign exchange raking in millions of naira
in p r o f i t . Despite SAP, the banking industry became the
i n s t i t u t i o n with the midas touch.
The sudden upsurge in Merchant Banks should not come as
a surprise. With the structure of the Nigerian economy
changing so rapidly, and with the pace of industrialization
gathering breath-taking momentum, there is the inevitable
need for wholesale banking, venture capital, tax financing,
equipment leasing and for medium and long term financing
a c t i v i t i e s that are outside the traditional domain of
commercial banking. However, this development brought about
other problems such as using these banks for money laudering,
419 scandalous transactions, dubious transfer of poor
Nigerians' hardly-earned money to oversea accounts of
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operators of these banks for self-enrichment and
unprofessional hanling of financing activities
without necessary security and gurrantee.
These and others are determinant factors in the
success and failure of Merchant Banks in Nigerian
economy.
Description
A PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL
AHMADU BELLO UNIVERSITY, ZARIA IN PARTIAL
FULFILMENT OF THE REQUIREMENT FOR THE
AWARD OF THE DEGREE OF MASTER OF
BUSINESS ADMINISTRATION (MBA).
DEPARTMENT OF BUSINESS ADMINISTRATION
AHMADU BELLO UNIVERSITY, ZARIA.
MAY, 1994.
Keywords
ROLE, MERCHANT BANKS, NIGERIA'S ECONOMIC, DEVELOPMENT