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In defining the banking business, the banking decree of 1969 included all of the institutions’ functions. However, three separate services that banks provide to the public stand out: deposit and payment mechanisms, finance and credit, and money creation.

The importance of banks in allowing payments for products and services without the need for hand-to-hand money cannot be overstated. The use of cheques for deposit and payment has rendered the usage of coins and notes for debt settlement obsolete.

Demand deposits are separated from time deposits in the definition of money supply because checks are widely recognised forms of payment in most nations.

As a result, in a system where the payment mechanism does not permit the force and full use of cheques, distinguishing between demand deposit and hand to hand cash on the one hand and time deposit on the other becomes redundant and anomalous.

The second job that banks play that is of great significance to businessmen is that of supplying funding and credits for businesses. Banks act as mediators between lender and borrower.

Banks create money by borrowing from investors, who pay interest on the funds that are loaned to them. The reserve ratio determines how much money a bank can create. Through their operations, banks raise and decrease the amount of money in circulation.

After discussing these service categories, I plan to assess how well the banks have given these services to the Nigerian population. Section 39 (11) of the Central Bank of Nigeria Act 1958 mandates the central bank to “promote and maintain as three to four months to be cleared, despite the provision of a maximum period of 21 working days from the data of lodgment as stipulated by the Central Bank of Nigeria (CBN) in the “Bankers Tariff.”

Customers are sometimes allowed to cash their open draughts over the counter since the draughts did not arrive until months after they were presented for payment. Customers do not receive account statements on a regular basis. Standing orders are also delayed in some situations.

Some of the occurrences drew public condemnation, which piqued the author’s interest in conducting study into the shortcomings of one of these businesses, money transmission.


Money transmission appears to be the least addressed in terms of optimisation solutions among the many services that banks provide in our economic system and that people criticise as being inadequate.

Many writers on this subject have blamed the poor state of this service on a lack of effective communication in Nigeria, as well as the tendency for banks to be cautious due to the high rate of fraudulent activities involving both the public and some bank staff,

such as authorised printing of bank stationary such as fake cheque books, bankers draught, tellers and robber stamps. Others include computer record manipulation, signature forgery, and a casual attitude towards employee tasks.

There have been potential solutions to these potential causes of insufficient money transmission in Nigeria. However, it is important to note that the majority of the literatures on this topic lack the benefits of an empirical investigation. Despite the numerous improvements proposed in these publications, Nigeria’s money transmission service has remained poor.

This implies that the Nigerian central bank expects commercial banks to deliver adequate services to the Nigerian public. Indeed, the Central Bank of Nigeria is responsible for establishing the machinery for the promotion and maintenance of adequate and reasonable banking services to the general population.

They take such steps by publishing the bankers tariff, which specifies the amount of charges that the public must pay for some services and those that are supposed to be free, the length of time that certain transactions must be completed,

and the charges for consortium lending. However, the question is how effectively these specifications are followed, and hence how adequate our banking services are.

Commenting on insufficient banking services Banking consultant Dr. Pius Okigbo stated: “Banking services can be adequate only if the customer does not have to go through pains to obtain these services.” These services are available to them.

They can suffice if the customer does not have to drive far to get a banking faculty. They cannot be adequate if the consumer is humiliated and forced to wait in huge lines to deposit or withdraw money. They cannot be adequate if commercial banks are unable to rely on other institutions for auxiliary services.

These snippets or passages from Dr. Okigbo show some of the numerous shortcomings in our commercial banks’ supply of adequate banking services. The following districts do not have commercial banks:

The problem of underbanking in terms of the density of banking officers per unit of population as well as the number of banks and banking offices per square kilometre.

Our banking system is experiencing a delay. A visit to any banking hall in the country will result in huge lines. These frequently lead to methods of obtaining preferential treatment.

Financial infrastructure to support commercial banking is lacking. The time it takes to transfer money from one location to another; cheques can take up to two weeks on average.


The establishment of clearly defined objectives is the core of every project effort in any research work. Money transmission is very important in Nigeria because it makes it easier for the beneficiary to get money.

The study’s precise objectives can be summarised as follows:

i. Determine whether inefficient communication systems, both postal and telecommunications, impede effective money transmission in Nigeria.

ii. Determine whether banks’ attempts to prevent fraud have a detrimental impact on their capacity to provide effective money transmission services.

iii. Determine whether there are any flaws in our banking system that are impeding successful money transmission in Nigeria. This will also cover the mindset of bank employees.

iv. Based on the findings, offer measures to improve money transmission in Nigeria.


One of the most important implications of this study is that it highlights the issues with money transmission in Nigerian institutions. As a result of this research, other financial institutions will be able to address their issues.

Furthermore, this study will be very important in developing Nigerian banks in the economy, which may positively effect economic growth.

This research will be beneficial to those attempting to lodge or move money on their own, as they will understand the significance and use of money transmission.

Nigeria, without a doubt, operates a cash economy at the moment. Cheques are not often accepted for business transactions or purchases due to public distrust of cheques. In addition, there are unfavourable bank delays in the checking system.

Again, the “Dishonoured Cheques (Offences) Act 1977,” which makes it an infraction punishable by two years in prison for a corporation or firm if their cheques are dishonoured due to insufficient cash, did not and could not prevent the misuse of cheques. Draughts were not honoured until the cover arrived, which took several weeks.

Standing orders were minored, but when the beneficiary lives elsewhere, the money is not received for several weeks. Postal and money orders were frequently disallowed as payment methods.

As a result, our money transfer mechanisms have become disenchanted. People wanted to travel with huge sums of money, especially now that we have higher denominations.

Carrying enormous sums of money about, on the other hand, has substantial financial consequences. Aside from being cumbersome, it puts one at risk of falling victim to armed bandits and nocturnal murders.

There have been countless incidents of money businesspeople being made ineffective by armed bandits when transporting big quantities of money.

Many businesses have been robbed by armed thieves carrying large sums of money intended for employee salaries. This research is thus required to uncover the causes of insufficient money transfer service in Nigeria, offer options for their enhancement and effective utilisation, and save Nigerians from the quagmire of a cash economy.


The scope of this investigation is dictated by what can be accomplished with the limited time and resources available.

The study looks at the commercial banking industry as a primary driver of economic growth in Nigeria.

Due to the large number of commercial banks, and for ease of assessment, the project has been focused down to United Bank for Africa Plc, with an attempt to highlight transmission difficulties in Nigerian banks.

There are some limitations to this research. Its constraints include finances, time, the secrecy of its employees, and academic work. Nonetheless, due to the high expense of transportation, the writer found it difficult to visit several of the sites.


This research work aims to define some words and provide the complete meaning of some observations to assist the reader in comprehending the contents of the study work.

i. Bill of Exchange: Section 1 of the Bill of Exchange Act 19882 defines a bill of exchange as an unconditioned at order in writing addressed by one person to another, signed by the person giving it,

requiring the person to whom it is addressed to pay a sum certain in money to a specified person on demand or at a fixed or determinable future time.

ii. Cheque: A cheque is a bill of exchange drawn on a banker and payable on demand.

iii. Drafting: It is referred to as a bankers draught. It is a bill of exchange drawn by one bank on another bank’s office.

iii. Fraud: This is defined as acquiring a material advantage through unethical means.

v. Fraudulent practises: For the purposes of this study, forged cheques, signatures, and cashiering fraud shall be included.

vi. Forgery: This is described as the false creation or alteration of a writing to the detriment of another man’s right.

vii. Money order: This is an official order purchased from a postal office for money to be paid to a particular person by another post office.

viii. Money transmission: This is the process of transmitting cash from one person to another using checks, draughts, mail money or postal orders and standing orders.

x. Negotiable instruments: A negotiable instrument possesses the following characteristics.

a. Title is transferred by delivery alone or by endorsement plus delivery.

b. A transferred taking such an instrument in good faith and for value can obtain a better title than that had by his transfer to pay a specified quantity of money to a named beneficiary than that possessed by his transfer to pay influenced by prior equities or branch.

c. The holder can see parties in his own name to establish his title.

xi. Promissory notes:- A promissory note is an unconditional written promise given by one person to another, signed by the maker, committing to pay the bearer on demand or at a specified price.

xii. Poster order: This is an official order brought from one post office to another for payment to be made to a stated beneficiary at another post office.

xiii. Standing order: This is an instruction given to a bank by a customer requesting a certain payment to be paid to a person.

xiv. Telegraphic transfer: A telegraphic transfer is an instruction from one bank to another, or from one branch of a bank to another, directing the bank or branch to transmit a specific sum of money to a defined beneficiary.


This research paper is divided into five (5) chapters. The first chapter contains an introduction, problem description, purpose of study, significance of study, scope and delimitation, definition of words, and work organisation.

The second chapter presents a theoretical framework (literature review) on preamble channels of monetary transmission, money transmission instruments, cheque, draught, money and poster orders, money gramme and western union, mail and telephone standing orders, and money transmission problems in Nigerian banks.

The third chapter describes the research method, sampling size and procedure, data collection methods, interview format, and study limitations.

The fourth chapter goes with data presentation, analysis, and interpretation.

Finally, chapter five gives the study’s conclusion and recommendations.

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