Project Materials




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1.1 Background Of The Study

Customers are assumed to be an organization’s stakeholders, and in order for an organisation to thrive, the requirements of its customers must be addressed.

An organization’s aims and objectives will not be met unless customers are present. It is therefore important to conduct research on customer behaviours, because knowing this will enable an organisation know how to properly deal with their customers.

In the 1980s, Nigeria’s banking sector lacked policies governing how customers’ needs should be handled. The number of banks expanded throughout this period, as did the availability of foreign reserves, GDP growth, and job creation. The banking sector has made significant contributions to Nigeria’s economic growth (Adeoye, 2007).

In 2005, 2006, 2007, and 2008, the figures were 8.1, 9.2, 9.8, and 10.6 (CBN, 2009). The truth is that the banking sector not only contributes to Nigeria’s prosperity, but also to the economic progress of neighbouring African countries.

Customer happiness should be the fundamental goal of every organisation. Customer satisfaction is used by retail banks to assess their quality and manage their customer relationships (Mihelis et al., 2001).

Furthermore, using customer satisfaction as a marketing tool allows a company to identify its strengths and flaws while providing products and services.

Customers might demonstrate their discontent with a bank’s products or services by filing complaints or abusing the bank. When customers express unhappiness, it might affect customer loyalty and cause them to patronise competitors.

Customers, on the other hand, feel happy, fulfilled, and delighted when they are satisfied (Hoyer and MacInnis, 2001). It gives the sense that the value of their money has been completely realised, and they will not consider moving banks.

It will also encourage clients to recommend their banks, bringing in new customers. Customer happiness in banks is measured by four factors: optimal branch facilities, economic satisfaction (bank costs and interest rates),

the existence of e-banking, and the presence of Automated Teller Machines (ATMs) (Chakrabarty 2006). Banks must implement service and product quality measures in order to efficiently serve their consumers.

Meanwhile, banks in Nigeria dissatisfy their consumers through their services, particularly when it comes to costs. The Central Bank of Nigeria recently adopted some legislation concerning bank client charges.

Among these fees are N1.00 for each debit transaction made on a current account, N50 stamp duty on non-oil revenue transactions, N100 e-DMMS Application cost for investors, N65 ATM withdrawals from other banks, and NSE/CSCS Trade Alert. Charges of this nature have the potential to harm both clients and the bank.

There have been reports of bank clients swarming the bank, particularly the customer service department, to find out why certain amounts were removed from their accounts.

Cases like this can leave the consumer irritated, erode customer trust, cause customers to switch to rival banks, and jeopardise the bank’s reputation.

However, Nigerians frequently complain about bank charges imposed on its customers, and United Bank for Africa plc (UBA) is a clear perpetrator. This is why the purpose of this study is to determine how bank charges affect customer happiness.


UBA has been providing uninterrupted financial services in Nigeria for more than 65 years, dating back to 1948, when the British and French Bank Limited (“BFB”) began operations. BFB was a subsidiary of Banque Nationale de Crédit (BNCI), Paris,

which spun off its London branch as the British and French Bank, with shares held by BNCI and two British investment firms, S.G. Warburg and Company and Robert Benson and Company.

BFB opened its operations in Nigeria a year later, breaking the monopoly of the two existing British-owned banks in Nigeria at the time.

Following Nigeria’s independence from Britain, UBA was formed on February 23, 1961, to take over the operations of BFB. In 1970, UBA’s shares were listed on the Nigerian Stock Exchange (NSE),

making it the first Nigerian bank to conduct an Initial Public Offering (IPO). When UBA launched its New York Office (USA) in 1984 to provide banking services to Africans in Diaspora, it became the first Sub-Saharan bank to do so.

Today’s UBA arose from the 1990 merger of the then-dynamic and rapidly developing Standard Trust Bank and UBA, one of Nigeria’s largest and oldest banks. The merger, which was one of the largest on the Nigerian Stock Exchange (NSE), was completed on August 1, 2005.

Following the merger, UBA went on to buy Continental Trust Bank the following year, substantially increasing the UBA brand. In 2006, UBA bought Trade Bank, which was being liquidated by the Central Bank of Nigeria (CBN).

1.2 statement of the problem

It is clear how bank clients in Nigeria are transferring from one bank to another in search of a bank with lower bank costs.

Nigerians are dissatisfied with the services provided by banks in Nigeria.

However, Nigerians’ high level of illiteracy contributes to the bank costs imposed on them. In the sense that Nigerians blindly accept certain terminologies without fully comprehending their implications.

For example, some bank customers subscribe to notifications (credit, debit, and ATM alerts) without realising that the fee will be debited from their accounts.

Furthermore, customers are not fully informed about the bank’s services and what follows, which causes a difficulty at the end of the day.

Another issue that bank charges might cause for its consumers is that they can harm the bank’s reputation. clients will complain to friends and family members about their bank costs, discouraging future clients and lowering productivity.

Finally, the business precept that refers to customers as king is being violated, since they are left disgruntled and discouraged by the bank’s products and services.

1.3 aims and objectives of The study

The primary goal of this research is to investigate bank costs and customer satisfaction in the Nigerian banking sector.

Other specific goals include:

To ascertain the significance of the relationship between bank charges and customer happiness.
To assess how well Nigerians are informed about bank fees.
To ascertain the connection between bank charges and the economy.
To examine whether bank charges have an impact on bank productivity.
To see if the federal government can get rid of bank fees.
To see if bank costs prevent Nigerians from saving in banks.

1.4 Research Questions

Is there a correlation between bank fees and client satisfaction?
Are Nigerians well-versed on bank fees?
Is there a link between bank fees and the economy?
Do bank charges have an impact on bank productivity?

1.5 Research Hypothesis

H0: There is no statistically significant relationship between bank charges and client happiness.

H1: There is a considerable relationship between bank fees and client happiness.

1.5 Significance of the research/Justification of the research

This research is intended to educate the general public, the banking sector, and the government on bank costs and customer satisfaction in Nigeria.

Its purpose is to educate the banking sector on the importance of carrying their customers along in order to provide them with the necessary satisfaction.

Furthermore, the study is intended to alert the banking sector that numerous costs imposed on their clients can have an impact on their patronage.

However, the purpose of this study is to inform the government that the CBN may assist in reducing these charges on customers.

This study will be extremely useful to other researchers who want to learn more about this topic, and it can also be utilised by non-researchers to expand on their work. This study adds to information and could be used as a guide for future work or study.

1.6 scope and limitations of The study

This study is limited to bank costs and customer satisfaction in the Nigerian banking sector, using UBA plc, Onitsha as a case study.

Study limitations

1. Financial constraint- Inadequate funds tend to hamper the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data collection procedure (internet, questionnaire, and interview).

2. Time constraint- The researcher will conduct this investigation alongside other academic activities. As a result, the amount of time spent on research will be reduced.

1.7 Definitions of terms

Bank charges: This category includes all charges and fees imposed by a bank on its customers. In popular parlance, the term refers to charges on personal current accounts or savings accounts. These fees can take numerous forms, such as monthly fees for the provision of an account.

Customer satisfaction is a marketing word that refers to how well a company’s products or services meet or exceed a customer’s expectations. Customer satisfaction is significant since it gives marketers and business owners with a statistic to oversee and enhance their operations.

Banking sector: This is the sector of the economy committed to holding financial assets for others, using those financial assets as leverage to create additional wealth, and government regulation of those activities.

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