Project Abstract

Abstract
This research investigates the effects of computer applications on the profit of banks in Nigeria. The banking sector in Nigeria has undergone significant technological advancements in recent years, with the integration of computer applications playing a crucial role in enhancing operational efficiency and customer service. The study aims to explore how the adoption and utilization of computer applications impact the profitability of banks in Nigeria. A mixed-methods approach will be employed, combining quantitative financial data analysis with qualitative interviews with bank employees and management. Financial data will be collected from annual reports and financial statements of selected banks over a specified period to assess the correlation between computer application usage and financial performance indicators such as return on assets, return on equity, and net profit margin. The qualitative aspect of the research will involve interviews with bank employees to gather insights into the specific computer applications being utilized, the perceived benefits and challenges associated with their implementation, and the overall impact on daily operations and profitability. By triangulating the quantitative and qualitative data, a comprehensive understanding of the effects of computer applications on bank profitability in Nigeria will be achieved. The findings of this research are expected to provide valuable insights for banks in Nigeria in terms of optimizing their computer application strategies to enhance profitability. It is anticipated that a positive correlation will be found between the extent of computer application usage and financial performance indicators, indicating that effective utilization of technology can lead to improved profitability for banks. Additionally, the qualitative data will shed light on the practical implications of computer applications on daily banking operations, customer service delivery, and employee productivity. Overall, this research contributes to the existing literature on the role of technology in the banking sector, specifically focusing on the Nigerian context. By examining the effects of computer applications on bank profitability, this study addresses a gap in the literature and provides practical recommendations for banks looking to leverage technology for financial success.

Project Overview

1.1  BACKGROUND OF THE STUDY

 Inflation has been a problem; many countries of the world have been experiencing especially the developing countries. It started during the early 60’s, which results to the incorporation of economic policies as a measure to reduce the effect of the inflation in the economy, and most of these measure taken by developing countries to check the problem of inflation are in the form of the use of central bank instrument of credit control. This is aimed at reducing the volume of money in circulation and maintaining it to ensure low cost of living. Nigeria as other developing countries is also faced with the problem of inflation. In Nigeria, inflation has been a problem for policy makers since the 1970’s and ever since then to date the rate of inflation is on the increase.

In defining what inflation is various perspectives from different economists are as follows:

1) The system whereby too much money is chasing too few goods.

2) Whereby there is a fall in the purchasing power of money.

3) Where there is an increase in the amount of money in circulation.  

4) Where there is an excess of wages claims over productivity growth.

For the purpose of this study inflation is defined according to Ben Chukwuemeka Anibueze Banking practice volume three as “a sustained rise in the general level of prices of most goods and services”. That is to say that there is always an increase in price without fluctuation. The supply of money would be affected due to increment in wages salaries especially if there is no increment in productivity and also increment in petroleum pump price, which the federal government has initiated, can also result to inflation. Also, government expenditure can create or increase the rate of inflation. This is due to some unavoidable government consumption expenditure on the economy.

The central bank of Nigeria has tried to regulate the liquidity position in the economy through its credit guidelines some of which are:

a) Control of the rate of expansion of commercial and merchant banks aggregate loans and advances.

b) Guide the banks in channeling their credit to different sectors of the economy.

c) Regulate the banks lending into a view to ensure that they exercise prudence in their granting loans and advance. These guidelines help in regulation of expansion of money circulation, thereby controlling inflation in the economy.

1.2    PROBLEM OF THE STUDY

The central bank of Nigeria being the apex bank is empowered with the responsibility of formulating and executing monetary policy in Nigeria. There are many objectives behind the formulation of monetary policy, which varies with time and places. In Nigeria they stand as:

a) Maintenance of confidence in Nigerian currency through measures to stabilize domestic wages and prices.

b) Support for increasing levels of agricultural and industrial output.

c) Effective arrangement for supplementing current government expenditure and for providing development finance.

The central bank of Nigeria was established by the act of 1958 and empowered to use certain monetary control instruments available to it. With these instruments of credit control, cash and liquidity ratios are being regulated. The central bank of Nigeria can also reduce liquidity by compelling government and it parastatals to withdraw all their deposit from merchant and commercial banks and deposit some with the central bank. This will help in checking inflationary rate in the economy.

1.3    OBJECTIVE OF THE STUDY

The objective of this work is to explore into the hindrance of against effective measures undertaken to curtail the rate of inflation in Nigeria.

To determine the effectiveness of the use of various instrument of credit control employed by the central bank of Nigeria to check the volume of credit creation in difference sector of the economy.

To ascertain why inflationary rate still seems uncontrollable undermining all the measures that has been taken to reduce it at least to a certain level.

To identify these problems and make necessary recommendations on how to improve employment in order to control inflation in the country.

1.4    SIGNIFICANCE OF THE STUDY

This study will help in policy making and investment. It will also serve as a guide to monetary authorities on how to control inflation through the use of instruments of credit control in the country. After identifying the problems, it would also help federal government and central bank of Nigeria in allocating resources to different sectors of the economy by checking its expenditures.

Banks would benefit from the study in solving their credit creation problem, which is a constraint to the profit making abilities in most banks.

1.6   DEFINITION OF TERMS

In order for one to understand this work easily, there are certain terms one needs to know. These includes:

1. CREDIT: Credit is referred to as money, which banks gives to customers in the form of loan and overdraft

2. LOAN: This is the system whereby a bank borrows out or lends money to his customer, which will be paid back on specified time with interest.

3. OVERDRAFT: This is a situation whereby a customer with current account is allowed to withdraw money more than he has in his account.

4. INFLATION: This is a situation whereby there is continuous increase in the general level of prices of goods and services.

5. MONETARY AUTHORITY: This is the institution that is charged with the responsibility of controlling the supply of money. The central bank of Nigeria (CBN) and federal government are responsible for this