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The Role Of Personnel Management In Nigeria Banking Industry
[A CASE STUDY OF UNITED BANK FOR AFRICA PLC]
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1.7 HISTORICAL BACKGROUND OF BANKING INDUSTRY
There is no precise date when banking business started in Nigeria, for instance indimentary banking activities actually started in Nigeria in 1861 when a shipping company. Elder Dempster line started banking services in Lagos with the objective of making easy transaction with the company’s customers in Nigeria.
However, in 1892, the first bank was established. This was the Africa banking co-operation, which was initiated by the chairman of Elder Dempster. It opened its first branch in Lagos in 1892. In 1894, the bank of British West Africa look over the assets and liabilities of African Banking co-operation. This bank is now known and called first bank of Nigeria plc. It remained the sole bank until 1917, when the colonial bank, Beclays abank of NIGERIA Ltd and union bank of Nigeria plc opened office in Lagos.
Before the second world war, banking in Nigeria was initially the monopoly of expatiate banks. They were largely of British origin having entered the country through the colonial administrative.
The primary function of the bank was to send services to the commmercial banks, government and financial intertional trade. This relationship of the public was largely discriminating as their limited contracts with indigenous businessman; the bank played no part in the development of the country as well as indigenous business. Besides, their lending policies were etremely conservative and the banking institutions were located in few trde centres and provincial headquarters.
The contention of the indigenous businessmen that were being discriminated against as a people led to some patriotic desire to established their own banks. Two successful attempts were made in early 30’s to establishe an African bank. The attempt was made up of an industrial and commercial bank, which was founded in 1922 but went into liquidation in 1930. The second attempt was the Nigeria merchant bank founded in 1931 and also went into liquidation in 1936. During that year a group of Nigeria associated with earlier attempt organised the national bank in 1939 on a model sccale.
The success of the national bank encourage other nigerians to establish their banks. Unfortunately, these attempt were followed by number of failures among them were Nigeria penny bank which was set up in the early 1940’s collapsed in 1946 under the light of management.
This was founded by the Nigerian formers and commercial bank in 1947 which in 1953 collapsed. The merchant bank opened its business in 1952 closed in 1960.
Against the background of the inherent success and failures of the early 1950’s a serious debate about the abolition of west african currency board and replacement by central bank of nigeria was ensured.
In 1958, the central bank of Nigeria was establiished and started operation on 1st July, 1959. It was to serve as the apex bank and to be responsible for the monetary policies of the nation.
Prior to the banking act 1969, there was no satisfactory definition of a bank. Although section 2 of the bill of exchangeact 1882 had interpreted a bank as a body of person, whether co-operate or, not, who carry on the business of banking.
The business of banking was interpreted by the courts to include acceptance of money on current account and the collection of cheques or other instruments for the customer payment by bank cheques or orders drawn on them by the customer.
The business of banking must be the principal activity undertaking the banking act of 1969, however defined banking businessas the business
of receiving money from outside sources as depositirrespective of the payments of interest, and the granting of money, loans and acceptance of credits or the purchase of bills and cheques or the purchase and sales of securities for account of other incurring of obligation to acquire claims in respect of loans prior to their maturity or the assumption of guaranteees and other warrantees for others or the effection of transfer and clearing and such other transaction as commissioner may on the recommendation of the central bank as published in the federal gazette designated as banking business.
1.8 WHAT IS PERSONNEL MANAGEMENT
Personnel management is the responsibility of all those who manage people and it is that part of management which is concerned with people at work and with their relationship within an enterprise.
Personnel management also aims to achieve both efficiency and justice, neither in which can be pushed successfully without the others. It seeks to bring together and develop into an effective organization men and women who make up an enterprise enabling each to make it own best contribution to its success both as an individual and as a member of the working group.
Ubeku, relates personnel management as “those versed in the knowledge of the management as a course, who has also chosen this profession as that of managing human resources of any aspect of the business organization.
But time as witnessed some changes in the personnel management function as professions in Nigeria both the government and private group have established institution.
The personnel management functions released to the banking industry according to Kenneth Toft, “the most important resources required by a bank is people.†Being a human creation, it needs human being to function in it. A bank force can be regarded as its most important assest each unit of which unique and human being demands human treatment.
Dealing with people in the bank is concerned with the discovery of the stimuli the manager uses to achieve the productive behaviours, but its must be noted in the final analysis that there are different things that must be geared to fit each particulars person and situation.
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