CHAPTER ONE

INTRODUCTION

Twenty five years is rather short in the history of an industry. In advance country of the world particularly united kingdom where the history of banking industry date have couple of strike taking.

  Merchant banks (Acceptance houses as they are best known in the U.K. and investment bank as they are known in America) are today common and prominent features of most economics of the world. These institutions have existed in the U.K. for over two hundred years in some prm. In spite of these, to the average educated man today, intending the banker, merchant banking is still mystical. The few who claim to know the institution and are possibly able to describe it, are often incapable of providing a precise instructive and generally acceptable definition. As bank of America’s John lucchesi put it “merchant banking is like being in love different for everybody. No two people experience it the same way. But when you see it, fell it, you known” looking back twenty five years and appraising the growth, development operation and the roles of an industry ( BANK) that was a part of that beginnings would appear justified. Looking back and counting the successes and failure of the industry through useful is not the only goal of the researcher.

  Additionally, and rather importantly it is hoped that the insight provided by a critical analysis of the past would enable the development of policies and more potent strategies for making the merchant banking institution perform their catalytic role effectively. In Nigeria for example merchant banks have undoubtedly, in spite of critisms made tremendous and credit with contributions to the general development of our country’s economy and particular to the development of our financial environment.

   Merely through their operation, they have in creased the size of financial claims in issue in Nigeria and helped in that way to broaden the country’s financial infrastructure. The researcher may look into the origin and evolution to data of merchant banking industry in Nigeria.

  The operations of merchant banking institution the last twenty five  years noting and highlighting the operations of merchant banking institution the last twenty five years noting and highlighting the observed growth and development of the merchant banking in Nigeria is undertaken. The achievement constraints and weakness and opportunities facing the industry.

Infact the success and failure of these older and more experience financial industries. The provision of merchant banking system to the economy of a country such as Nigeria has remained a life wire through which the economy grows. It becomes imperative therefore that the provision of these services endeared by merchant banks and other financial institutions are very essential to the economy. 

STATEMENT OF PROBLEM

1.     There has been a great failure of the merchant bank in Nigeria, loop holes in their roles will be looked into

2.     No new merchant bank has been established where other financial institution have been growing rapidly.

3.     Therefore these weakness and opportunities facing the industry and why the achievement of merchant bank so poor since twenty five years now.

PURPOSE /OBJECTIVE OF STUDY

1.     The purpose of the study is to find out the functions performed by merchant banks in Nigeria and loop notes in their roles.

1. To appraise the growth of merchant bank in Nigeria and provide reasons for establishment of new merchant banks

1. To identify the merchant bank constraints and achievement.

SIGNIFICANCE OF STUDY

Nigeria financial system is still highly under-developed knowledge about this system has been growing gradually with the publication of various books on banking and finance in Nigeria despite the increasing literature in this area the myth surrounding merchant banking activities is yet to be broken the myth stem from the difficult in giving a precise and generally acceptable dessecription of what constitutes  merchant banking activities in Nigeria and in drawing a clear line of demarcation between the activities of merchant banking and those of commercial banks.

  An attempt will be made also to increase certain understanding of the concept evolution, development and activities of merchant banks in Nigeria and is this bold attempt to break the fore mentioned myth. I think this attempt will be most welcome as it affords us the opportunity of taking a respective look at merchant banking in Nigeria.