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 This research is a study aimed at finding the main causes of customers of commercial banks to be prompt wherever they are in their current or saving accounts or withdrawing cash from their savings account balances or cash cheque in their current account balance.

Consequent upon this, it will determine the impact balance of the organizational structure of commercial banks on efficient customer services.

          In other words, this pieces of research work goes to determine whether the organizational structure of commercial banks service in Nigeria especially First Bank (Nig) Plc.

This research was restricted to (4) four branches each in three states Lagos  fourteen branches in Nigeria.

Both interview and questionnaires, method of data gathering were used. This categories of sample were used in this exercise namely customers clerical staff and the management staff in determine the promptness of first bank (Nig) plc to the customers. The three categories of sample contributed in determining how to solve problems of delay if any.



A commercial bank in a country can be described as the fuel tank which supplies oil that lubricates trade and industry in order to get the wheel of economic activities in motion. A commercial banks is no larger uniquely described in terms of being a financial intermediary offering demand deposit and commercial lending service. Rather, it is a financial intermediary that provides financial service in an evolving industry.

The financial service is affected by both the organization and the structure of the bank. The quality of financial services rendered by the bank has great effect to some extent in determining the degree of patronage by the public.

Competition among banks due to the rapid growth in the number of financial institutions is so high that a wide range of institution via with one another in affricating customers and offering the customers a verity of financial services. With the foregoing the study will endeavor to examine to what extent the organizational structure of the FIRST BNAK PLC, militate against its provision of efficient service to its customers.


Commercial banking in Nigeria dates back to the early colonial period. The decline in barter system of trade and the rise in financial transaction of the colonial government required an institutions in the form of a commercial bank for safety and transmission of funds. It was for this purpose that African banking corporation based in south Africa was invited in 1892 to open a branch office in Lagos. The African banking corporation was therefore the first modern commercial bank to open a branch office in Lagos in that year.

In the year 1894 its operation were taken over by the bank of British West Africa.

In 1899, the bank in Nigeria was established by the royal Niger company. In the year 1912, the bank of British West African absorbed the bank of Nigeria and exercised monopoly over Barclays bank started operation in Nigeria, other colonial, banks joined in the later year.

The indigenization exercise abolished the existence of the expatriate banks in Nigeria. Their existence was terminated. For some of the following reason:

1.                 The integration of the monetary and security market for   liquid assets and investment of excess reserve and in effect retardation of the emergence of local money and capital markets.

2.                 The banks by virtue of their interlocking relationship with important transnational banks are assured of credit Accommodation.

3.                 The operations of the banks failed to take into consideration the credit needs of Nigeria.

The discrimination suffered by Nigeria spurred them to attempt to found their own bank. In year 1973 the banking industry was indigenized by the federal government acquiring 40% of the equity of foreign banks in Nigeria.

This indigenous commercial banks in Nigeria represent the effort of Nigeria businessmen to establish their own banks since the expatriate banks have not been particularity interested in giving them assistance they own business.

          The first effort in this direction was the establishment of the industrial and commercial bank in 1929 which failed in 1930.  The Nigeria mercantile bank was formed in 1931 but it went into voluntary liquidation in 1936.

Successful indigenous banking effort in Nigeria began with the establishment of the national bank of Nigeria in 1933. The next successful Indigenous bank the African continental bank was established in the year 1957. The pan Nigeria bank was established in the year 1951. Currently there are over 60 Indigenous commercial banks in Nigeria with numerous branches spread throughout the country.

In fact, the period 1947 to 1952 witnessed the experience of bank failures in Nigeria. It has been shown from available records that these banks also collapsed with the same rapidity with which they were established.

By 1954 twenty one(21)out of the twenty five (25)  indigenous banks failed due to inadequate capitalization over trading, lack of technically skilled personnel and of course poor management. The failures were an affairs for banks officials, depositor and government.

The forty three commercial banks which responded to our survey reported having a total of 397 board members for an average of about 9 members per an board. No bank has more than 15 members and no bank has more than 15 members on its board.

There appeared to b no relationship between  bank size and board size or size. For example, the biggest three banks and fifteen and thirteen board members.

Similarly, some state owned banks had between five and six board members just as state owned banks had between five and six board members.

The survey also revealed that out of the 397 board members, only 154 of them had equity interest in the banks they were directing.

In other word, 234 board members were not shareholders in the bank they directed. As would be expected, the directors without equity interest were primary representing state and federal government interests in the banks. The directors were government appointees.

The indigenous bank as a group have contributed significantly to the economic development operate mostly in the indigenous  business sector and have extended credit to small and large scale indigenous entrepreneur .

Secondly, they have contributed to the development or potential depositor and banking habit W.A. (1970) in his development process states that development occurs in all directions.

Simultaneously, growth and development run into bottlenecks sectors.

“thirdly the aggressive mobilization of the domestic savings though direct contact with the people and the use of mortem have  contributed development. Introduced by Shaw and MacKinnon in (1973) as the concept of “financial deepening” and also providing employment opportunities for Nigeria in responsible position in banking Industry.

The Structure of the Nigeria Commercial Banks can be Discussed As:

Branch banking, the commercial banks in Nigeria operate the branch banking structure.

This is a structure arrangement where by very few large banks with net work of branch office dominate the economy. This branch banking takes instructions from their head offices (not autonomous).

Indigenous banks this is a banking structure in which the ownership of banks invested completely on the indigenes of the country. These banks operate mainly in their state of origin some of them have their head office at their state origin.

They serve mainly indigenous interest.

          Mixed banks, these are banks that are jointly owned by Nigerians and foreigners. The maximum ownership interest of the foreigners in Mixed banks is 40%. The indigenous owners have a 60% minimum ownership interest in the mixed banks.(Orjih .J.1996)


Banking is a service industry and a such a bank should have it as a duty to provide services to its customers.

In other to remain in good business, the banks services must be tailored to the public needs and rendered efficiently.

All efforts should be made to eliminate or reduce delays .speed and accuracy should be the watch-word.

          A bank which produces and renders service efficiently would embraces the patronage of the public and enhance the economic growth.

          Infect the rendering of efficient service and profitability and so on.

All these obligations of a bank, its customers are very important in any country.

          The reverse however is the case in being made by the customers of first women, the asset that there are inadequate service and frustrating delay in first bank plc they normally complain that “time is money” and they believe that any time wasted or lost in order to with draw or deposit money is a lot to their business.  

          Civil servants often complain that a great number of hour is lost when they level their office for hour just either to deposit or withdraw money from the bank.

All these problems will affect our economy, if not amended and also the gross national product will be adversely affected.

          The researcher, therefore want to determine the principle causes of this delay, caused by the staffs of first banks offices and its organizational structure.

“An investigation into these question is the main basis of the study.


The objectives of this study are stated as follow:

a.      To find out ways of improving the quality and the efficiency of those financial service products, rendered to the customers of first bank plc. 

b.     To investigate some ways of eliminating or ridiculing delay by first bank (nig) plc. To its customers.

c.     To examine if the service rendered and produce by first bank (nig) plc will embrace the patronage of the public and enhance the economic growth of the country.

d.     To examine the impact of organizational structure of first bank plc from 1999 – 2004 on an efficient customer services.

This material content is developed to serve as a GUIDE for students to conduct academic research

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