CHAPTER ONE

INTRODUCTION

1.1   HISTORICAL BACKGROUND OF THE STUDY

          Access Bank Nigeria Limited was licensed as a commercial bank in December, 1988 and opened its door to customers on May 11^th, 1989.  The bank started business from 4 Buma Road in Apapa, Lagos State.  Its formal corporate head office with an authorized share capital of #20million. 

The share later increased to #70million and of this amount, #58million has been paid up.  The bank’s ownership is spread amongst reputable Nigerian business men and professionals whose business interests covers a wide area. 

The experiences of the shareholders are put to the use by the bank through a seven members board located by Chairman Mr. Ayo Oni, while the board oversees the affairs of the bank, the day to day management of the bank resides with the Management Director/Chief Executive, Mr. Lyke Aigboye Imoukhers as astute banker with 18years banking experience.

The bank turned and assisted by a corps of seasoned professionals with various backgrounds in banking and related specialization.

          As a result from Apapa and Board Street, the bank also has branches at: Ilorin, Lagos, Osun, Ikeja, Abuja etc.

          The banks products and services are conveniently packaged to meet the particular needs of its numerous customers since the customers represent an important local point in its service delivery objection.  Specialized products like Herfund facilities, SME/Loan facilities and exports and agricultural credit as well as high yield deposit account are given emphasis with the bank range of services.

1.2   STATEMENT OF THE PROBLEM

          The bank has encountered many problems in the contrite of leasing.  The problems 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.

1.3   OBJECTIVES OF THE STUDY

          The research work is carried out by going to all potential reader or users that understand 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 benefits 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.

1.4   PLAN OF THE STUDY

          This project has been properly designed and segmented into five chapters.  In which it focuses its attention on the major areas of equipment leasing, effects and prospects with consideration of the Access Bank Ilorin, Nigeria.  Firstly, and foremost, the maiden chapter covers the short introduction of the project, historical background of the case study, statements of the problem, significance of the study, scope and limitation of the study, definition of the key terms, statements of the hypothesis and research questions.

1.5   SIGNIFICANCE OF THE STUDY

          Significance implies the importance of the study.  At this stage, requires 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 significant of a research project is to its writer. A research project is significant to the student because ithe award of agree or HND/ND e.t.c.  It also significant to the case study is chosen, the industry into which the case study belongs, the society at large e.t.c

1.6    SCOPE OF STUDY

          Like other research work, there are limits to the extent one could go, due to the factors such as high duties on imported equipment, depreciation of assets lack of expertise in handling the equipment, the economic situation did not help matters as most companies which one engages in leasing opt out either partially or completely.  Hence, the need for further enquires, time has been friendly either.  This has therefore limited the scope of the study.

1.7   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, terms are explained 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’s function includes determining requirement of the prospective lease and 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 agreed upon by born parties to be given in case of defaults.