CHAPTER ONE

INTRODUCTION

1.1   STATEMENT OF THE PROBLEM

          The bank has enchanted many problems in the contrite of leasing.  The problem are traced to the economic solution of the nation, the problem encountered easing as well as locking of e from lesses and shortage of expected in equipment leasing as well as locking expert in handling the equipment based

          Erratic and frequent charges in fiscal and monetary policy also constitute the problem faced by the bank.

          The depreciation of asset constitute to this difficulty faced in equipment leasing.

          The problem of repossession of foreign located leased equipment due to legal and enforcement differences.

          High duties on imported equipment

1.2   OBJECTIVES OF THE STUDY

          The research work is carried out by going to all potential reader or users the understanding of lease. It’s importance towards the social economic advancement and development of the country

          It also has it’s objective to appraise the development of equipment leasing the benefit and disadvantages [if any] in Nigeria.

          In addition, it’s constants towards development, the effect of legislator [if any] and the referred suggestion for the improvement of leasing in the country.

1.3   SIGNIFICANCE OF THE STUDY

          Significance implies the importance of study at this stage, require to explicitly show the people, organizations, discipline, [field of the study] e.t.c to which the study is relevant or important to.

          It should be noted that one of the significance of a research project is to its writer. A research project is significant to the student because it is required in partial fulfillment of the requirement for the award of agree or HND/ND e.t.c.  It also significant to the case study chosen, the industry into which the case study belongs, the society at large e.t.c

1.4    SCOPE OF STUDY

          Like other research work, were limits to the extent one could go, due to the factors such as high duties on imported equipment, depreciation of asset lack of expertise in handling the equipment .

The economic situation did not help matters as most companies which one engage in leasing optal out either partially or completed hence the need for further enquires ,time has been friendly either.  This is  therefore has limited the scope of the study.

1.5   DEFINITION OF TERMS

          There are some technical terms that the readers or users of this research work come across, so in order to enhance better and easy understanding term are explain below:

• Lease: This is the agreement between a leaser and a lessee to grant assets to the lessee by the lesser for a period of time in return stated regular payment
• Lesser: A person or firm who by lessee agreement is given the use of an asset for a certain time in return for a payment to a leaser. However it does not have a little to the asset.
• Lender: This is as third party involved in lease, particular if it is a leverage leased who has to provide a substantial part of the funds so as to finance the acquisition of the asset.
• Lease Broker: he person act as an intermediary between the lender lesser and the lessee.it is function includes determining requirement of the prospective lease soliciting leaser aids by leaser.
• Capital Allowance: This is the allowance corporation which relates to the financial capital.
• Lease Rental: This general term of finance lent on condition which provide for payment of the principal together with interest by regular installments.
• Collateral: Properly or something agree upon by born parties to be given in case of defaults.

1.6   STATEMENT OF HYPOTHESIS

          In this research hypothesis is the statement of relationship between variables.  In the problem analysis the researcher describe or refers to some of the variable that should be investigate because either the relationship between them is not well know if known often or always has certain consequences.  The variables may have some behaviour or characteristics which are not clear to the investigator.  The general hypothesis to be tested in this study is;

H_0:     A  person or firm who by lease agreement is given the  use of an assets for a certain time in return for a payment to the leaser. However it does not have a little to the asset.

H₁:    A person or firm who by lease agreement is given the use of an assets for a certain time in return for a payment to the leaser.  However it have a title to the asset.