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Using Access Bank Plc Ogui Road, Branch Enugu as a case study, this researcher attempted to analyse the sourcing and use of money on Commercial Banks in Nigeria. The significance of careful fund sourcing and application in any corporate operation, notably the banking industry, cannot be overstated. In this regard, the researcher set off on his quest. The personal interview was used by the researcher.

Instruments for observation and documentation in data collection. The researcher discovered from the information and data sources, via the bank financial statements and records, that while the bank maintains a sound sourcing and application of fund policy, they still need to do more because sourcing and application of funds is a continuous process that needs to be reviewed and restructured from time to time to meet the yearning for prudent financial management and growth.

As a result, the researcher believes that bank management should develop better deposit, lending, and other similar financial services policies so that the bank can provide the desired services to the public and other economic units while also ensuring prudence, particularly in its lending sourcing and application of funds in general.
Background of The Study

The many methods in which cash inflows to operate the business are realised in an organisation are denoted by the sources of funding. The following are some of the ways money entered a firm.

As a result of an increase in liability

Increasing one’s net worth

A reduction in asset value

Using a net profit after taxes

By selling shares, preferred or common stock

It also explains how extra money enters the organisation through consultant services and loan borrowing. Summarise sources of cash to any organisation Describe all of the ways money enters an organisation for operational use and achievement of stated aims and objectives.

However, in order for an organisation to prosper, it must also spend money in order to achieve its stated aims and objectives; consequently, application of funds refers to the different ways in which sourced funds are used to improve the value of fixed or working capital. The different ways monies can be used are as follows:

When there is a rise in assets

Where there is a reduction in liability

Where there is a cash dividend payout

When stock is purchased

When there is a drop in net value.

After explaining the meaning of the sources and applications of funds in a financial organisation, it will be interesting to observe what accounting authorities have to say about the same subject.

The Accounting Standards Steering Committee (ASSC) requires all enterprises with a yearly gross income of N25,000 or more to publish finances statements in Standard Accounting Practise No. 10 (ASSAP 10). It presents the declaration and principles driving its preparation in its explanatory notes as follows.

That a company’s profit and loss account and balance sheet should show the amount of profit earned during the year, as well as the disposition of the company’s resources at the beginning and end of the year.

However, in order to gain a better knowledge of the company’s operations, it is required to identify the movements of assets, liabilities, and capital that occurred over the year, as well as the impact of such movements on net liquid funds.

The above statement is not directly expressed in the balance sheet or profit and loss statements, but can be made available in the form of a fund statement (statement of sources and application of funds).

Though the fund statement is not a replacement for the profit and loss account or the balance sheet, it does contain information from the two above in summary form. The goal of such a statement is to indicate how a company’s operations are financed, and the format chosen should be structured to accomplish this goal.

A fund statement should be able to show the sources of funds that flow into the organisation as well as how they are used. It should clearly illustrate the money generated or absorbed by the operation of the firm, as well as how any ensuing surplus of liquid assets was utilised or any shortage of such assets was financed, separating the long term from the short term.

The statement should also distinguish between cash spent to purchase fixed assets and monies utilised to expand the company. The fund statement will connect the balance sheet at the start of the period, the profit and loss for the period, and the balance sheet at the end of the period.

A minimum netting off should occur since this tends to highlight the significance of certain major statistics, such as the sale of one building and the purchase of another in a finances statement.

The statistics used to create a fund statement should be easily recognised in the net profit and loss account, balance sheet, and any linked accounts or notes. Furthermore, the fund statement should include the following information:

Profit before tax or loss for the accounting period, adjusted for factors that did not utilise or provide funds, such as depreciation.


The individual who paid and others who were proposed to be compensated.


Purchase and sale of fixed and other non-current assets.


Finds raised by raising or expending in repaying or redeeming the company’s medium or long term loans or issued capital.

Increases and decreases in working capital subdivided into its components, as well as changes in net liquid cash. Net liquid cash is defined as cash on hand and in the bank less bank overdrafts repayable within a year.

Increases in liabilities and decreases in assets are considered sources of funds, whereas decreases in liabilities and increases in assets are considered applications. The following are some of the functions of commercial banks.


i) Acceptance of deposits


On a current account, the money is available for withdrawal by cheque on demand. On this account, no interest is payable to the clients. The Access Bank current account is a versatile account that provides customers with a variety of new modern banking services in person, online, or over the phone. Access Bank offers the following current accounts.




Account shared


Company account


Non-governmental organisations (NGOs)


Sole proprietorship/business account


Account for collaboration


Account for trustees/executives/administration


Accounts for unincorporated organisations, clubs, and associations


ii) Savings Deposit Account:- This is another interest-bearing account in which clients can only withdraw money using a pass book and deposit money using the same pass book or the bank teller.


The Access Bank Savings Account offers a competitive interest rate that is paid monthly on the whole closing balance.


The following are the account’s characteristics:


There is no cot.


Quarterly account transaction statement


There will be no invoices for withdrawals.


Withdrawals and deposits are accepted at any of their branches.


Request a transaction statement.


It also provides electronic banking, which includes Internet Banking, Telephone Banking, and Mobile Banking, allowing users to access their accounts from virtually any location.


iii) Domiciling Account:- These are accounts held in currencies other than the Nigerian naira, and they are critical to the business operations of entrepreneurs due to the globalisation of business issues and possibilities.


Access bank domestic accounts to perform the following transactions:


Transferring funds by telegraph to a third party


Withdrawal of foreign currency cash and traveler’s checks.


Cash deposits in foreign currencies and traveler’s checks


Choosing foreign currency cheques and issuing foreign currency draughts


Credit lottery winners


The following currencies are supported by the Access Bank Domiciliary Account:


Dollars (USD)


The British Pound


Euro Starling


The Access Bank Domiciliary Account has a minimum initial balance of $500 USD or its equivalent in Euro or Pounds Starling.


iv) Long-Term Financial Support


Access Bank assists their customers in achieving their long-term business goals by offering a diverse range of financial choices to meet their specific needs. This is specifically addressed by the following:


Temporary loans


Project funding




Facility for issuing notes


v) Products and Services


At Access Bank, there is a wide range of products and services designed to provide value-added banking solutions ranging from day-to-day transactional banking to complex financing structures, to assist customers in obtaining liquidity, strong finding reduced capital costs, and stronger balance sheets.


Other services available include:


Money management


This is accomplished by;


Bank collecting services are available.


Use the Bank Payment Solution


Bank access in liquidity management solutions


Bank access in correspondent banking services


Get access to banking information solutions.


Banking through the internet


Access Bank offers consumers simple and convenient options to conduct financial transactions from the comfort of their homes and businesses.


vii) Working Capital Financing


Customers of Access Bank can choose from a variety of working capital finance options to satisfy their short-term funding needs. The above services are available through the following channels:


Drawing on uncashed bank checks


Overdraft protection


Credit lines that are revolving


Discounting of invoices


Plans for distributor credit


Finance for trade


In addition, leases


Access Bank’s Historical Background


Access Bank was founded on February 8, 1989 as a privately held commercial bank. It got a banking licence in December 1988 and began operations on May 11, 1989. On March 24, 1998, the bank was converted into a public limited liability company, and on November 18, 1998, it was listed on the Nigerian Stock Exchange.

Access Bank was successfully recapitalized in December 2001, and the bank’s board of directors hired the present senior management team with the explicit objective to reposition the bank as one of Nigeria’s top five (5) banks by 2007.

Since the current team of Mr. Aigboje Aig-Imoukhede (MD/CEO) and Mr. Herbert Wigwe (Deputy MD) took over, the bank has seen a sea change in all aspects of its business.

The new Access Bank is ideally positioned to become Nigeria’s premier provider of financial services by exceeding its clients’ expectations and assisting them in managing their businesses more effectively.



Access Bank provides universal services to corporate, commercial, and individual customers. The bank’s pre-tax earnings during the 2002/2003 fiscal year exceeded the bank’s total cremelative profits since its founding in the first year of its five-year transformation programme.

Access bank shares were the most actively traded stocks on the Nigerian stock exchange in 2003, among other reasons, and the bank was named “Bank of the Year 2003” by This Day News Paper.


The bank maintained its excellent performance in the 2003/2004 fiscal years, rising to fifth in terms of total assets from 65th in 2001. The Global Credit grade Company (GCR) awarded the bank a “A” grade in honour of its exceptional operating performance.


II) Science and technology


Success in the highly competitive financial services business frequently hinges on how quickly an organisation responds to opportunities and market developments as and when they arise.


Access Bank was the first Nigerian bank to use the FLEXCUBE Banking Application to support its banking operations in October 1999. FLEXCUBE is a comprehensive product suite for universal banking.

Flexcube has changed throughout time in response to developments in the global financial landscape. The most recent version is Flexcube 6.2, which is described as “a cutting-edge universal banking solution.”


Consistent with the bank’s commitment to provide customers with world-class banking, and following an exhaustive due diligence study by KPMG international, the bank made the brave choice to upgrade its existing Flexcube application to the latest version 6.2, a browser-enabled version.

Access Bank is the first bank in Africa to deploy the latest version of Flexcube, and the second most advanced Flexcube user in the world, behind one of India’s largest banks, Syndicate Bank. As a result, the bank just awarded the Hewlett Packard Award for the finest deployment of a core banking infrastructure in West Africa.


Iii) Value-added Services


The bank defines value as the ability of its goods and services to generate cost savings to its customers. The bank’s board established an internal audit charter throughout the year. The charter isolates and insulates the Internal Audit Department from the Executive Management’s control or influence,

as well as frees staff within the Internal Audit unit from operational and management responsibilities that could impair their ability to conduct independent reviews of all aspects of the bank’s operations, thereby making the department independent.


V) Financial Statement


The financial summary presented below is based on the reporting accountants’ report on Access Bank’s profit forecast for the years ending 31st March 2005, 2006, and 2007, assuming the offer is fully subscribed, and the reporting accountants’ report on Access Bank’s audited financial statements for each of the five years ending 31st March 2004.


PBT stands for Profit Before Tax.


The bank’s PBT for the fiscal year ending March 31, 2004 was N952 million, a 17% increase over the previous year’s PBT of N811 million. For the fiscal years ending March 31, 2005, 2006, and 2007, the bank’s PBT is predicted to be N2.02 billion, N4.89 billion, and N7.85 billion, respectively.


After-Tax Profit (PAT)


PAT for the fiscal year ended March 31, or enhance their potential to earn additional income. The bank has organised a number of industry events to help current and potential clients learn about best practises, exchange their experiences with peers, and freely connect with regulators and policymakers. These encounters have had a substantial positive influence on the business of our customers.


In addition, the bank worked with the Nigerian Maritime Authority to create a functional framework for implementing the recently approved sabotage legislation. Local shipping businesses, which will benefit from this legislation, have acknowledged that the implementation framework fully covers the operational and finance concerns that the bill seeks to address.


The bank recruited a local software development business to create “cliuc,” a software application that allows consumers to reconcile their bank statements in seconds at a significant financial cost to the bank. This software is not only available to clients, but it is also free of charge, and the bank bears the expense of installation and employee training.


IV. Corporate Governance


Access Bank has adopted the highest corporate governance and best practises standards. In keeping with the bank’s commitment to maintaining the highest standards and ensuring the independence of internal audit, the 2005, 2006, and 2007 budgets are expected to be N1.56 billion, N3.76 billion, and N6.05 billion, respectively.

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