There has been series of bank failures, which was traced to poor and improper management of banking activities.
Effect of government interference through C.B.N instrument of monetary policies has gone a long way in bringing some problems hinder control in financial institutions.Therefore a literature review was made bearing in mind on this regulations and policies.
To achieve this questionnaires and interviews method were intensity employed in this study. They were supported by personnel observation during collection of data. The effect of government interference has contributed major role in sanitizing banking system in Nigeria.Furthermore, the study would clearly add to the existing knowledge on effect of government interference in management of financial institution in Nigeria.
This study strongly advocate for government to have a hand in selection and recruiting top management staff of the financial institution to reduce fraudulent act Central Bank of Nigeria should not be so rigid, they should strike a medium between financial liberation and occasionally intervention aim at correcting financial failures.
1.0       INTRODUCTION                                         
1.1       Statement of problem                                 
1.2       Purpose of the study                                              
1.3       Significance of the study                          
1.4       Statement of hypothesis                
1.5       Scope of the study                          
1.6       Limitation of the study                                            
1.7       Definition of terms                                      
2.1       Central Bank of Nigeria policies of financial institute
2.2       Nigeria financial review in the financial institute
2.3       Union Bank of Nigeria operational Rules –
and Regulation                                                       
2.4       Government roles in financial institute               
3.1       Sources of data                                                                   
            Primary data                                                 
            Secondary data                                                       
3.2       Sample used                                               
3.3       Method of investigation                                         
3.4       Validation of the instrument                                 
3.5       Reliability of the instrument                                  
CHAPTER FOUR                                                    
5.0       SUMMARY OF FINDINGS, CONCLUSION AND          RECOMMENDATION                                
5.1       Findings                                                       
5.2       Conclusion                                                  
5.3       Recommendations                                                 
5.4       Suggestion for further research               
Management has been define as the process of combining and utilizing organisation resources of man, material to accomplish organisational objective.
Management can also be defined as formulating, planning and controlling activities in decision making.
What then do we mean actually by interference?
According to Webster Dictionary interference is to take an active but unwelcome part in some else's activity. It can equally be defined as break in upon without right or invitation.
In this study, it has been revealed that this interference on financial institution by government as a pilot is a noble in the right direction. The Nigerian financial system is very vibrant and highly competitive. They have four basic product lines in the banking industry such as deposit base product, lending base product, fee base product and technology base product.
This was instituted by the observation during the research that financial institution benefit immensely by the government on the financial institution.
It is well known fact that number of services financial institutions offers have increased but risk taking which is fundamental nature of their business remain unchanged.
This has led to the conclusion that management financial institution is surrounded with risk management which involves mismatches of assets and liabilities on the other side.
The economy and nurture it along the path of development. The role of financial institution mostly bank has been constrained by a number of facts in short past, price to now, the industrial sector has been characterized by massive direct government involvement, because of weak technological base, lack of linkages in infrastructure and policy investment, highly interest or inflation rate, negative, real growth rates and fiscal excesses.
With an external debt burden of about 27.4 billion as in 1997, the repayment burden put a constraint on growth.
Since 1995, however, the federal governemnt has been budget deficits, which achieved stable interest and exchange rates regimes, while pushing down inflation to a simple digit of 8.5 percent in 1998.
Aggressive reform and sanitation of the financial institution, sources were perused. On the other hand little or no attention was paid to the vital area of privatization of government utilities liberalization of the economy and improvement of infrastructure.
The above review of the economy has been undertaken and other financial institution were suppose to operate and provide finances to the industrial sector. From the above review the researcher, therefore want to use this study to explore those factors emanated from the effect of government interference in financial institution that unlimited them from effectively discharging their responsibility to the economy generally using the organizational rules and regulation of Union Bank PLC to determine the extent it has contributed both positively and negatively part of such interference in institution.
Despite the effect of government interference in the management of financial institution, there is no doubt that a lot of ills are besetting financial institution existence in Nigeria, especially in the area of control regulation and operation.
Regulation does not guarantee that they will reserve bank failure and  serious banking crises. No matter how effective and thorough the regulatory mechanism, the problem may still occur as history has shown it.
Even with high policy and regulation, which usually accompany, serious bank crises arise and bank failure. It is to prevent impact of such failure from threatening the systematic last resort function that is why the control bank exist in protecting the aggregate deposit of the system and preventing the collapse of single institution from destabilizing the entire financial system. That were uncompetitive internationally, high interest rates and lift among bank directors and unprecedented industrial unrest within the sector exist due to shallow knowledge of management policy and regulation in this sector of economy which help in paralyzing the whole system.
Also problems exist due to hardcore of such regulation and deregulation of policy to the financial institutions.
The main purpose of this study is:
1.            To find out, how union bank of Nigeria Plc is employing the government policy to ensure banking system towards the acceleration of economic development in Nigeria
2.            To study the growth and survival in the faces of various banking ordinance that was consolidated in Central bank number 24 decree of 1991 polciies of Union Bank of Nigeria Plc. adopted to keep float against the complex operations of recently established banking system.
3.            To highlight the enviable policies of Union Bank of Nigeria plc adopted to keep float against the complex operations of recently established banking system.
4.            To ascertain the effect of government interfer in the management of financial institution and the type pf environment it has created for the proper existence of financial institution whether it is on the right direction.
The finding and recommendation of this research work would be useful and serve as a guide to financial institution and also to government in formulation policies and decrees relative to the effectiveness of the institution.
This study is parsed with view to highlight growth of financial institution since government interference in their operation with particular analysis on the Union Bank of Nigeria Plc a commercial bank, which can serve as a guide to other banks.
The study will be significant in examining the achievement of government, the presence of increasing problem confronting this sector of the economy mostly on the part of the monopoly of the rendering of services to entrepreneurs foreign connecting cover the indigenous ones, poor customers services, high rate of interest, high rate of inflation constant bank arises and increasing competition among the institution.
The study would be of importance to any reader and assist government and financial institution in reviving their various policies, plans decree regulations, deregulation with respect to management of financial institution and fundamental services.
In other to achieve the research objectives the following assumptions were made.
Hi:       Government interference in union bank
         Nigeria PLC has enhanced operational activities efficiently
Ho:   Government interference in Union Bank
Nigeria PLC has not enhanced operational activities efficiently.
Hi:    A  good management system witness development that had varying impact their operation.
 Ho:  A good management system is not a guarantee for witness development that has varying impact their operation.
Hi.       Government regulations and policies have not reduced the rate of financial crises.
Ho.      Government regulations and policies have not reduced the rate of financial crises.
Hi.       Government interference in the management of financial institutions in Nigeria is not a good approach to the development of financial institution in Nigeria.
Ho.      Government interference in the management of financial institutions in Nigeria is a good approach to the development of financial institution in Nigeria.
This study is intended to cover:
a.              The new policies and decrees introduced in financial institution since the inception of structural adjustment programme in 1996.
b.              The impact of these policies on the operations of Union Bank of Nigeria PLC.
c.              The challenges posed by these policies and decrees and the central bank effort to control the problem arises by the implementation of the policies and regulation.
d.              This study will also cover the problems union ornament control in the management of their affairs and also the position aspect of the policies to the management of union bank of Nigeria PLC.
Definition of the terms
Financial institution: Is the organization that responded to the financial system in the country. They provide both short term and long term fund.
Effective operation : Being active, progressive and consistent is financial institution operation on service.
Regulation: Regulation is an act of being regulated or control by the role of governing people or groups of people.
Policy: A selected planned line of conduct in the light at which individuals decision are made and coordinated achieved.
This can be chosen by government or business.
Immensely: Valued too much
Management: Managing or being managed by the body of those in position of administrative authority.
Interference: Interference is to take active but unwelcome part in someone else activity.
Effect: A change produce by an action.


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