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Management has been defined as the  process of combining and utilizing organization resource of managerial to accomplish organization objectives.  It is also a process entailing responsibility for effective planning and regulation of operation in a enterprise in fulfillment of a  given purpose or task.

What then do we actually means by interference?                            

Interference according to Websters dictionary is to take and active but unwelcome  part in some else’s activity.

 In this study is has been revealed that this interference on financial institution by government as a whole is a noble in the right direct.  ThisNigerfinancial 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 products and technology based product.  This was instituted by the observation  during the research that financial institution benefited immensely by the government on the financial  intuition.

It is a well know fact that number of service financial institutions offers have increased but risk taking which is fundamental nature of their business remains unchanged.  This has led to conclusion that management is financial institution is surrounded with risk management which involves mismatches of assets and liabilities on other side and it is cost borrowing and lending on the other side.  The economy and to nurture  it a lone the path of development been.  The role of financial institution mostly banks has been constrained by number of facts in too past.  Price to now the industrial sectors has been characterized by massive government involvement because of weak technological base lack of linkages in infrastructure and policy investment    highly production cost and goods that were uncompetitive internationally.  Over all the micro economic environment was  highly unstable witnessing capital fight high interest or inflation rates negative real growth rates and fiscal excesses.  With an external debt burden of about 27.4 6 as the end of 1997,t he repayment burden put constraint on growth.

Since 1995 however the federal government been able to store some measure of fiscal discipline through low 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 source were pursued.  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 supposed to operate and provide financial to the industrial sector

Therefore, form the above review the researcher wants to use this study to explore those factors emanated from government interference in the management of  financial institutions that inhibited them from effectively discharging their responsibility to the economy generally using the  rules and regulation of union bank PLC to determine the extent it has contributed both positively and the negative part of such interference in the institution


TheNigeriainstitution is very vibrant and highly competitive. It consist of 105 viable commercial and merchant banks.  Which are privately owned with a total of 2,400 branches and 5 development bank such as NBC NIDB, PBN and FMSN owned by the government. There are about 200 registered non bank finance houses of various sizes part of the structural adjustment programme (SAP) introduced in 1986 was the expansion and diffusion of the banking sector had growth to 67 commercial and 55 merchant banks 45 primary mortgage institution 228  branched of the people bank 618 finance companies 48 fully licensed by the  CBN) 401 community banks and specialized bank by this the null 1990’s there was endemic distress in the financial system   which led eventually to collapse of many of the institutions in the industry.  Many commercial and merchant bank were liquidated with 26 bank (13 each of commercial and   merchant) liquidated as recently as January 16, 1989.  in the case union bank of Niger PLC survived it.

 A close at the operation policy union bank Nigeria PLCEnugurevealed that government interference in management of positive type.  Even though that there are some risk in embodying such rules regulations line is their banking system such depots base product lending lines is their banking system such as deposit based on products lending bases product fee base products and technology base products.

Therefore the interference has help the to accept the risk job of greater mobilization of saving from the surplus units and channel them to the deficit productive units of the economy and to ensure that no unable project   is frustrated due to lack of funds and greater facilitation of synergies and sartorial linkages within the economy.  there still problem resulting in such interference of which union bank are complaining of.

 The effect of government interference in the management of union bank PLC also covers limits of   permissible business risk concentration capital and liquidity adequacy and statutory returns.  The monetary aspect of regulatory includes control over loading generally structure of leading rates reserve requirement and foreign exchange.  There are also regulation covering advertising staff loan loans directors and inside dealing supervisor is employed to ensure effective management and control. The criticism let to gradual deregulation in 1984 and was subsequently accelerated with the adoption of  (SAP) programme which gives room for the operation of free market forces given financial instructions more direction to their operation and stimulation competitions in the financial system as a whole

 Consequently in 1988 theNigeriadeposit insurance corporation was established with regulatory power to protect depositors against bank failure and thereby strength the financial and impacted greatly on financial institution environment 


Despite the interference of government in the management of financial institution there is no doubt that a lot of ills are besetting financial institution existence inNigeriaespecially in the area of control regulation and operation.  Regulation does not guarantee that they will reverse bank failure and serious banking crises.  No matter how effective and thorough the regulationary  mechanism the problem may still occur as history has shown it.  Even with high policy and regulation which usually accompany and serious bank crises or bank failure, it is to prevent impact of such failure from threatening the systematic last resort function on central bank

Establishing of more financial institution by both government and individual were  implemented to solve the problem of poor service to customers and also dominance of foreign based bank by Nigeria indigenous bank to help in encouraging improved  banking system in Nigeria, but still there is high production costs and goods that were uncompetitive internationally   high  interest races and rift  among bank directors and unprecedented industrial unrest within the sector exist due to shallow knowledge of management policy and regulation in this sectors of economy which help in paralyzing the whole system.  Also problem exist due to hard core of such regulation and deregulation of policy to the financial institution.

 1.3            PURPOSE OF THE STUDY

The main of this study are

1)  To find out how union bank of Nigeria  PLC is employing the government policy to ensure sound banking system towards the acceleration of economic development inNiger

2)  To determine their growth and survival in the faces of various banking ordinance that was consolidated in central bank number 24decrce of 1991 and the present day decrees.

4)  To ascertain the effect of government inference in the management of financial institution and type of environment it has created for the proper existence of financial instruction whether it is on the right director.    


This study is interned 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 operation 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 of Nigeria PLC encountered due to some government control in the management of their affairs and also the position aspect of the policies to the management of union bank Nigeria PLC


1)  Have the regulatory roles made union bank big strong and reliable

2)  Have government interference created a greater mobilization and measures in financial institution

3)  Have the regulatory rule experienced more better than deregulatory role of today.

4)  As a developing nature do you think or feelNigerianeed these regulatory functions today.

Have union bank assisted industries in terms of local sourcing of raw materials within the scope of these measures? 


The finding of this study would be useful to the union bank of Nigeria PLC and the management of financial institution in general as a guide to the banking system and formation of policies and decrees relative to the effectiveness of the institution.  The study would provide a data base for future researchers on the effect of government interference on  financial institution.

The study also serve as an additional material to the work will go a long way in educating the readers on the significance of examining  the achievement of government and how it helps to improve economy sector mostly on the part of monopoly especially in financial institution.

The study will provide in data base for future researcher in government interference in the management of financial institution and add to the material outstanding in the library.

This study would be of important to any reader and assist government and finacial institution in reviving their various policies.   


Studies of this nature are prone to limitation my experience during data collection are this most of the respondent interrogate where regulate to addressing the question pose to them.  They contended that this would be tantamount to exposing the companies policies to the public and that their competition will capitalize on such policies of divulged


In spite of the fact that the researcher explained the management of union bank that her study was purely academic test the management was reluctant to information.


Enough time required for collection of data and other relevant facts.  The researcher a final year student has to case the already limited time partly to read cause work for her examination this time has effected the researcher.


A thorough research work imposed a huge financial burden that cannot be borne easily by a student for this reason the researcher had to be restricted to a small of financial institution (union bank of Nigeria PLCEnugu)

 1.8            DEFINITION OF TERMS


Is the organization that responded to the financial system in the country they provide both short term and long term fund


Being active progressive and consistent in financial institution operation on service


Regulation is act of being regulated or control by role governing a group of people


A selected planned line of conduct in light at which individual decision are made and co-ordinate achieved.  This can be chosen by government or business


Valued too much .


Managing or being managed by the body of those in position of administrative authority


Interference is to take an active but unwelcome part in some one part else activity.


Akuazaoku B.A (1987) Problem of Management of Financial Institution, the NigerAccount

Femi,  Adekanye (1986) The Element of Banking inNigeriaBusiness Times