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Format: MS WORD  |  Chapter: 1-5  |  Pages: 75  |  630 Users found this project useful  |  Price NGN3,000





For some years back in Nigeria, some banks have not been living up to expectations. During the free banking era, a lot of banks failed and this did not augur well for the economy. The researcher noted that bank failures had adverse effect on the economy. The study focused attention the general operations of the bank, its operational problems, consequences of bank failures on the business of manufactures and control measure, necessary in checking the incidence for the future development of banks in Nigeria. Bank failure is the inability of a bank to meet up with its set goals. In the past, banks that failed, did so because of some reasons like inability to honour depositors fund on request, improper accounting records, poor internal control and hunder capitalization. The study further reviewed the solutions and recommendation for bank failures and future development of bank in Nigeria. Materials for the study were sohread from secondary sources. This was supplemented with data gotten from text, newspapers, journals, magazines, library and central bank of Nigeria publications.




There had been a lot of bank failures in Nigeria and many Nigerian are suffering because of the bank failures and also many people have been victim of bank  failures in Niger because of these bank failures in Nigeria, the researcher wants to find out the effect of bank failures in Nigeria. Also the researcher wants to find out whether the bank failures in Nigeria are affecting the further development of banks in Nigeria or not. Is it shall going to cause greater failures in the development of banks in Nigeria. Al this point will help the researcher to find out possible ways and it will also help the researcher to carry out his work successfully.


There have been series of inefficiencies in our banks. But it thus appears that there have not been write-up sufficiently focused on the future development of banks hence, the reasons of this   study are:

* To bring to light, the various effect of future development banks for the benefit of the various banks in Nigeria.

* To examine the effect of bank failures on the future development of banks in Nigeria and in our economy.

* Finally, to suggest possible ways of detecting and preventing these failures in banks.


As it relate to banks, the prime motive of future development of banks in Nigeria, is to expose various areas of the banking operation where failures can be perpetrated, the causes of such futures and possible control indasures. Therefore, with this, the research is significant in providing benefit for the bank workers. Customers and the general public by:

i.  Creating, expanding and stimulating investment share and securities for the future development of banks in Nigeria.

ii. Providing finance in the form of long or medium term loans or share participation.

iii. Advise and assistance to indigenous enterprises such as technical, financial and managerial advise.


The fortunes of the economy and banking sector are inextricably interwoven. What prompted the research was the fact that development within the overall economy, inevitably have direct impact on the environment and regulated frame work within which banks operate. Alarmed by the growth rate in banking industry during last segment of 1980’s, many question have been raised by members of public bout the survival of many banks in the 1990’s. This is born out of concern reflect to the questions:

i.  Is Nigeria not now over-banked.

ii. Has Nigeria economy, the banking personnel to a round all the banks in other not to affect the future development of bank?

iii. Will the languets in banks continue in the future development banks in Nigeria?

The establishment of NDIC, government has been unwilling to any bank foul, no matter the bank financial condition and for quality of management confidence in the economy, following a banks failure considering that the establishment of NDIC has made possible change in policy. The economic reforms have imposed challenges and enormous responsibility on the financial system especially the bank. Many Nigerian pray never to experience the high rate of failures that led to the increase in the number of indigenous banks, experienced between 1947 and 1951 in the future development of banks, at least 21 of the 25 indigenous bank operating in the country collapsed. This is fact formed the basis of this project because if the there is bank failure today, there will be doomed in economy and in the future development of banks in Nigeria.


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