COMPLETE SCHOOL PROJECT TOPICS & MATERIALS :
CHAPTERS: Chapter 1-5
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ABSTRACT
The study carried out an empirical evaluation of the Marketing Communications Campaigns (MCC) used by Nigeria (CBN) to execute the Nigerian banking sector reforms in the period 2004 – 2007. The study became perennial distress in the Nigerian banking sector which was traced to poor capital base/seeming ineffec Bank’s MCCs used to inform, remind and persuade the banks and other stakeholders in the industry and the the policies, services and directives to be implemented. The CBN has been using MCCs as veritable tool control measures since its inception in 1959 without any evidence of empirically evaluated and documented c to guide future decision making of the CBN and for use by similar bodies and researchers. These therefore this study which sought to determine the amount of influence the CBN campaigns for banking secto restructuring, the use of coins and stop the abuse of the Naira had on the general public and possibly d detailed MCCs model for CBN, researchers and other interest groups. The method adopted was survey structured questionnaire to generate data for hypothesis testing. The results show that the CBN’s campa influence on the general public for the successful establishment of 1,048 microfinance banks, introduction of N5 Naira banknotes and N2, N1 and 50kobo coins on February 28, 2007. In addition, the CBN campaigns to Naira on 25th May, 2007 attracted a Federal legislation which stipulated six (6) months jail or N50,000 fine on the Naira. The six (6) geo-political zones in Nigeria were covered with three (3) states selected from each federal capital territory. A sample size of (784) was determined from the population of the selected 19 loc Purposive sampling technique was used for CBN officials while the sample size for the general public was st using Taro Yamane’s sample size determination formula. Cronbach’s Alpha was used to measure the reliabi instrument. Percentages and descriptive statistics such as chi-square, correlation/linear regression aided by were used for data analysis and interpretation. The CBN campaigns succeeded in influencing the public on failed to achieve significant influence on the Nigerian public on the use of the coins in their transactions Naira. The study developed a campaigns model known as Banking Sector Reforms communications (BSRC) CBN’s campaigns more incisive, more appealing and more result oriented.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The Nigerian banking sector is expected to be the engine and the fulcrum on which other sectors revolve. It is the business of the banking sector to provide the necessary financial support to the entire economy. The sector is to provide funds for the development of the agricultural sector, capital for the real sector (manufacturing), service industry, loans and advances to governments and the investing public. Contrary to these expectations, the Nigerian banking sector has witnessed persistent turbulence since its evolution in 1892 showing that the CBN has not been able to appreciate/identify fully the source(s) of the problems of the commercial banks and that of the other stakeholders in the industry.
Hence, there exists an expectation/communication gap between the Central Bank of Nigeria (CBN) on one hand and the deposit money banks, other stakeholders/the public on the other.
This expectation gap was traced to the poor capital base of the commercial banks and other such factors. The gap was also traced to the seeming ineffective communications between the Central Bank of Nigeria and the deposit money banks (DMBs) on the one hand and her other stakeholders/publics on the other. Specifically it was traced to the seeming ineffectiveness of the apex Bank’s marketing communications campaigns which form the focus of this study.
Marketing Communications Campaigns (MCC) which are the various efforts and tools organizations use to inform, remind and persuade customers/stake holders or the general public directly or indirectly about their products, brands, services, policies or the ideas that they wish to sell. Its mix consists of a number of modes or tools of communications – advertising, sales promotion, personal selling, public relations, publicity, direct marketing, events sponsorships and a host of others. Details of marketing communications including its types, its modes or tools and its media or communication channels were reviewed in chapter two of this work.
The CBN marketing communications campaigns leaned more on Marketing Public Relations which is now the most powerful method of promoting products, services and ideas (Gaetan Giannini, 2010:1). He went further to hold that marketing public relations is the place where new and traditional media meet to publicize business, brands, people and ideas or policies.
Marketing public relations deals with publicity and other marketing communications mix elements such as advertising, public relations, personal selling or personal contacts, events sponsorship to build corporate, product, project, policy or personal image to facilitate marketing or compliance.
Hence the crisis in the banking sector required effective and special marketing campaigns such as marketing public relations (MPR) which is a marketing oriented aspect of public relations to address the enormous crisis witnessed in the Nigerian banking sector since its evolution in 1892
To fully appreciate the enormity of the crisis in the Nigerian banking sector, one has to take a cursory look at its turbulent evolution and the development. The evolution of the modern day banking industry in Nigerian can be classified under seven (7) phases from 1892 to 2007 for analytical convenience. The periods are represented by the origin and early banking activities (1892 – 1912), the emergence of the West African Currency Board (1912 – 1929); the free banking era (1929 – 1952), the era of banking legislation and the advent of the CBN (1952- 1959), the era of banking legislation and the development of the banking system (1960 – 1986), the era of banking sector reforms (1986 – 2003) and the era of banking sector consolidation and other reforms (2004).
The era of banking sector reforms (1986-2003) witnessed two forms of banking sector reforms. According to Somoye (2008:5) one was 1997-2002 in which the minimum capital base for each commercial bank was raised from N50 million to N500 million while that of a merchant bank was raised from N40 million to N500 million also. The other reform was in 2003/early 2004 which saw the emergence of universal banking system (banks performing both commercial and merchant banking functions) with capital base raised to N2.0 billion. This policy led to the liquidation of 21 banks and the total number of banks shrunk from 110 to 89 banks.
The high rate of bank failures in Nigeria prior to the 2004-2007 reforms triggered off series of reforms in the Nigeria banking sector including the one under study. During the earlier reforms, all diagnosis/attention was focused on problem of inadequate capital base as the sole ‘ailment’ in the Nigerian banking sector without any proper attention focused on the marketing communications gaps in the banking sector. Also lacking in those reforms was proper application of marketing public relations strategies by apex Bank.
However, in the 2004-2007 banking sector reforms, the then Governor of the CBN Soludo, (2004:3) traced the problems in the Nigerian banking sector to both poor capital base of commercial banks (Deposit Money Banks) and some other factors such as the ineffective marketing communications between the Central Bank of Nigeria and the deposit money banks/the general public. This led to the recognition of marketing communications campaigns as a veritable tool for attainment of banking sector policy objectives.
Marketing communications campaigns (MCC) which are the various efforts and tools organizations use to inform, remind and persuade customers directly or indirectly about their products, brands, services, ideas or policies that they wish to sell were therefore used by the Central Bank of Nigeria to execute her policy objectives of banking sector reforms, currency restructuring and the abuse of the Naira and their contributions were evaluated in this study.
1.2. Statement of the Research Problem
The perennial distress in the Nigerian banking sector causes a lot of concerns not only to the monetary authorities, but also to the depositors and the general public. Soludo (2004:2)
This was evidenced in fact that between 1892 and 2007 ninety-one (91) banks failed in Nigeria.
The sector has not been able to provide funds for the development of the other sectors of the Nigerian economy. According to Soludo (2008:7) prior to the 2004-2007 banking sector reforms it got to a stage where the total capitalization of all the banks in Nigerian stood at N293 million which was just the size of number four (4) bank in South Africa and the banking population ratio was as low as 1: 30,432. Hence the need for banking sector reforms.
In the attempt to reform and reposition the banking sector of the Nigerian economy, a number of policies were introduced. They include; banking consolidation or reforms, which set N25 billion as the minimum capital of any bank that must operate in Nigeria by 31st December 2005, the liberalized the foreign exchange market, that brought 1,048 Bureau-de change companies (BDCs) into operation by 31st December, 2008 and the stabilization of the foreign exchange rate. The reforms also led to the introduction of microfinance banks on 15th December, 2006 and enabled the establishment of 830 microfinance banks by 31st
December, 2008 among other reforms such as the improvement in the payment system.
The CBN had to apply marketing communications campaigns to drive home all these reforms to the major stakeholders such as the commercial banks managers, core investors, other stakeholders and the general public. The evaluation of the influence of the CBN marketing communications campaigns exerted through awareness creation, interest generation and opinion change communications campaigns on the banking sector reforms was part of the problem this study resolved.
Secondly, prior to the banking sector reforms exercise, some currency notes were of low quality paper, with inappropriate security features, counterfeited, dirty, and mutilated and did not portray a good image for Nigeria. In addition, coins were no longer in use in the Nigeria economy. These brought about Naira restructuring and subsequently led to the introduction of a set of new Naira notes of N5, N10, N20 (polymer), N50 and a set of 50 kobo, N1 and N2 coins into circulation. The measurement of the influence the CBN marketing communications campaigns had on the currency restructuring exercise was also part of the problem this study resolved.
Another major development that called for urgent attention was the blatant physical abuse of the Nigerian currency (the Naira). The Naira was abused through mutilation, spraying, trampling, staining and inscribing on the banknotes and in many other ways. In response, the Central Bank of Nigeria, introduced the clean notes (Naira) policy by the end of 2007, so as to curb the physical abuses of the Naira. The clean Naira policy was propelled by aggressive marketing communications campaigns which the CBN took to the general public, the Presidency and the National Assembly. The CBN campaigns attracted special legislation, which enacted that Nigerians and others, must not abuse the Naira in any way. A sanction of six (6) months imprisonment or N50, 000 fine or both for anyone who abused the Naira was Promulgated.
The measurement or the evaluation of the influence the CBN campaigns achieved on its campaigns to stop the abuse of the Naira was part of the problem this study resolved The modalities adopted include marketing communications campaigns such as series of meetings held with commercial banks, manufacturers, government agencies and other stakeholders on the mission to reform and reposition the banking sector to remove the distress/inadequacies in the sector and by extension the stress in the Nigerian economy. This was immediately followed with CBN sponsored advertisements in newspaper, magazines, periodicals, newsletters, circulars, radio and television and personal contacts. The Bank also organized conferences, seminars, workshops and public relations events, to ensure that much education or enlightenment was given to both the commercial banks’ managers, investors and the general public. They were reassured by the CBN of the safety and the gains they stand to make by investing/participating in the banking sector reform programmes.
Notwithstanding the series of meetings, public relations approaches and other marketing communications campaigns, on the banking sector reforms, currency restructuring and the abuse of the Naira by Central Bank of Nigeria, there has not been a scientifically or systematically evaluated exercise on the policy projects under study to determine the results, outputs or outcomes of the marketing communication campaigns applied by the CBN. Hence, the empirical evaluation of the marketing communications campaigns used by the CBN to create awareness, induce interest and influenced participation by the banks, stakeholders, core investors and the general public on the banking sector reforms that saw the liberalization of foreign exchange market which brought about 1,048 bureau de-change companies (BDCs), the advent of 830 microfinance banks, currency restructuring, stop the abuse of the Naira and a host of others programmes constitute the problem of this study.
1.3. Objectives of the Study
The main objective of this study was to evaluate the marketing communications campaigns used by the Central Bank of Nigeria to execute the banking sector reforms, currency restructuring and the abuse on the Naira projects or policies.
The specific objectives include the following:
- To determine the influence the marketing communications campaigns and the orientation received by the CBN officials (policymakers/implementers) for banking sector reforms exercise had on the restored public confidence in the Nigerian banking sector.
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To determine the influence the CBN marketing communications campaigns for banking sector reforms had on the establishment/effective administration of microfinance banks.
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To determine the influence the marketing communications campaigns for currency restructuring had on the acceptance of the new currency by the public
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To assess the relationship the CBN marketing communications campaigns for currency restructuring had with the use of coins for transactions.
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To evaluate the relationship the CBN marketing communication campaign for currency restructuring had with the abuse of the Naira.