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The Role Of Banking Supervision And Examination In Nigeria


The purpose if writing this project is for the partial fulfillment of the requirement for the award of higher national diploma in business administration and management. This research project is aimed at examine the role of banking supervision and examination in Nigeria, using Union Bank of Nigeria Plc, Ilorin as the case study.

The project work is going to critically evaluate the problems such as poor management and loss of depositors funds encountered by the Nigeria financial institution. As a result of this problems. The research work be carry out with the aim of analysis and finding a lasting solution to this stated problems of Banking in Nigerian. The research project  will  also analyze then reasons why banking need to be supervise and examine, the conduct of supervisor and examined on site function and offsite functions, licensing, operational  requirement at reserved requirement.

The research methodology is to give a comprehensive report of the methodology employed in collecting information. In this study the research will made use of both primary and secondary source if data in setting necessary information that is needed in writing this project. Chapter four deals with the presentation and analysis of data collected with the use of statistics instrument. There is needs to analysis the data collected since, all the data that is going to be gather is through concise use of questionnaire. Chapter five is the concluding part and some useful recommendation is going to be made to further ensure the role of banking supervision and examination in Nigeria.



Title Page





Table of contents



1.1  General reading

1.2  Statement of the problem

1.3  Significance of the study

1.4  Objectives of the study

1.5  Definition of terms

1.6  Limitation of the study

1.7  Background of the study


2.1 Review of literature

2.2 Why are the banks supervised and examined

2.3 The legal frame work

2.4 The conduct of supervision and examination

2.5 On the site function

2.6 Off site function

2.7 Operational requirement

2.8 Reserve requirement

2.9 The Nigeria deposited insurance corporation


3.0   Methodology

3.1   Research design

3.2   Source of data

3.3   Sampling size and procedure

3.4   Data collection and procedure

3.5   Data analysis of single percentage


4.0   Analysis of data

4.1  Name of people to whom the question were administered.



5.1 Summary

5.2 Conclusion / recommendation

5.3 Bibliography

5.4 Appendix




The banking system in nigeria started many years ago commercial banking activities started in Nigeria in 1892.

However, in other to promote the growth of domestic money and capital market and central bank of Nigeria was established by the central bank of Nigeria act of 1958.

One of the principal objectives of central bank of Nigeria is to promote monetary stability and sundry in the financial system.

Over the years the central bank of Nigeria as conducted regular supervision and examination of banks as a means of maintaining close watch on banking corporation to ensure that banks comply with banking laws and other directive stipulated by the monetary authorities. This help to promote high leveled quality banking services are maintained.

The central bank of Nigeria took over the entire functions of banking supervision and examination in January 1966, and on the awareness that adequate and proper supervision demanded and specialized institution that would bring together an experienced team of banks and other related professionals to facilitate the functions of bank supervision.


        It has been revealed from experience that banks face the following problem.

  1. Poor management to establish sounds leading policies as adequate credit administration procedures many banks today also faced the problem of bad debts due to the fact that most of the borrower are getting into difficulty.

Similarly, there are problems of financial distress as a result of multiple contraction of money supply by banks in the economy.

  1. Lost of depositor’s fund as a result of failure in proper credit control and management in their lending functions. As a result of these, many of the bank customers have decided to keep their money inform of asset and at the same time they are not encouraged in banking system.


This study is very important for the education of banking industry for the benefit of economic growth, ad development. In Nigeria today. The banking system should not be neglected without making reference to the development of the system.

This study is condisidering the fact that the banking system of this nation should be enlightened and educated so they can have the privilege to improve the banking operation.


It is with this intention that the study is to highlight the causes of banking supervision and examination so that the nation will no longer experience banking distress any more.


In Nigeria today, banking system has recorded a remarkable evolution since the central bank of Nigeria  commenced operations.


However the need for the study is to examine the problem that may likely caused by the banking failure in the process of loss depositors fend the failure of other banking and financial distress as a result of multiple contraction? Of money supply.

This study also aims at awakeingthe banking agencies for proper management of banking activities. Also includes to evaluate a bank loan portfolio, and intern control system.


Bank: according to advance learner’s dictionary of current English, a bank is an establishment for keeping money and valuable safely the money being paid out on the customer’s order (advance learner).

Commercial bank: These can be defined as a financial institution set up for keeping and lending money to people, owned by individual, organization or government for the main purpose of making profit (Ebeloku. A).

Central Bank: According to CBN brief research department as the central monetary authority or an apex financial institution within the entire financial structure, which promote monetary stability and a sound financial system (Ebeloku A).

Supervise: this simply means to watch and direct work, workers ssand organization (Mohammed. A.S)


For the purpose of the study effort were made limit the method of data collection through primary and secondary collecting method.

Similarly, finance was another important limitation to the study. This situation created time constraint and financial difficult.

Also the study is to carry out activities of the commercial bank jointly a case of union Bank of Nigeria. Another factor that contributes to the limitation of the study was the ignorance or misconception on the part of the respondent. Many a times the respondent. Many times the respondent will not likely to attend to the researcher, because use of the law that guide them, they will sometimes refused to disclose something.

Similarly, the problem of collating the formation or fact gathered has also contributed to the limitation of the study.

Transportation is our of the problem facing in the study


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