PROBLEMS PROSPECTS AND GROWTH OF THE NIGERIAN’S CHEQUEING SYSTEM

ABSTRACT
This study is intended primarily to find out why the Nigeria society appears to have lost confidence on the use of cheques for transaction. Whether this loss of confidence is as a result of people’s misuse of this instrument or due to some lapses in the chequeing system itself. 
Based on the primary motivation, various major problems associated with the use of cheques were identified. However, the use of dud cheques appears to be the base of other problems, which have precipitated into people’s mistrust for cheque in Nigeria. The result according to the author’s findings, is the cash payment basis or bankers draft is usually preferred by individuals, establishments and government agents for settlement of transactions. 
Furthermore, this study give a number of solutions and recommendation for more effective chequeing system in Nigeria based on the identified problem. 
It is believed that the elimination of these problems will usher in a more functional chequeing system in Nigeria. Happily, the major finding of this study is that there was an increase in the use of cheques during the currency exchange of 1984, and that more employers new pay their workers with cheques through the bank.
 

CHAPTER ONE

1.1 INTRODUCTION
The question is does an average Nigerian really understand what cheque is? Does he for example, know that cheque are supposed to be mind tenders for monetary transaction.
How does he use the instrument? Again do banks, government officials and their agent actually encourage the use of cheque and operate system without necessary suspicion. Have there been any serious efforts to educate banks, customers and the workings of the system? We are going to discuss the causes of this problem.
For instance, in America and Britain, most ever transaction is done in cheque or credit card without bordering anybody with the liquid cash. Therefore, Nigerians should be thinking as civilized people, though they can on no way compare their standard of organization, management and their affairs and responsibility with those of industrially advanced nations.
The idea of paying for ever thing on liquid should be left to the past. Payment by chequeing system should be over handled with an aim of making it function more effectively.
However, the writer is optimistic that despite all odds and problems facing the Nigerian chequeing system itself has quite a lot of prospects. That is never works well in Nigeria maybe attributed to machination of the operator of the system. As soon as the Nigerian society learns to be honest on their dealings and conscious on their work, the chequeing system will begin to work effectively people had the feelings that no one can be trusted and this makes them not to confide on cheque. But when the chequeing system start to work effectively, people will begin to trust one another, business transaction will begin to flow smoothly, loss of liquid cash to arrived robbers will be minimized and the naira will look afresh.
The aim of the project work is to as much as possible, identify the problem seemingly facing the Nigerian chequeing system, the prospects or the growth of all the system, if any will equally be high liquated. Therefore suggestion and recommendation will be advanced as means of making the chequeing system work more effectively in Nigeria.
To achieve all thee a conscious efforts must be made by the operation of chequeing system, and should be geared to wards educating the Nigeria public on the importance of the system. In this direction the government has a part to ply. The Banks and other financial institutions should Toin hands to save the Nigerian chequeing system from total collapse. There are some solution for more effective use of cheques on Nigeria, which we are going to treat on the next coming pages in order that Nigeria chequeing will prove more effectively. And most of these solutions has to be firstly solid by banks. When we look more closely we may fund out that the process of clearing cheques in bank is always a long process thereby frustrating the customers who is in need of the money thereby discouraging the customers from putting their money in bank. They prefer lauding their moneys without any hassles.

1.2 DEFINITION OF TERMS 
PROBLEMS: Problem of Nigeria chequeing system or rather ineffectiveness of cheques in Nigeria is problems that hinder the growth of Nigeria chequeing system.
PROSPECTS: Prospects of Nigeria chequeing system is the hope or the height the Nigeria chequeing tends to attain in the near futures.

1.3 PURPOSE OF THE STUDY 
The purpose of this study is to identify the problems, prospects and growth of Nigeria chequeing system out finding will help us to determine on how to solve the problems customers encounter in clearing cheque and what could be done to solve the problems of chequeing system.
And them, to highlight on the prospects or the height they want to attain in the near future and then most of their achievement and the growth they have got so far.

1.4 SIGNIFICANCE OF THE STUDY 
The researcher believes that this study will be of immense significance to both the readers customers to banks and government agencies in number of ways. By going through this study, the reader will know the problems posed in the country in terms of Nigerian chequeing system. The reader will understand some problem of lack of economic development following the consequence of not putting money in the bank due to delays in clearing cheques.

1.5 STATEMENT OF PROBLEM
This study is centered on the problem prospects and growth of Nigeria chequeing system. There are so many problems customer banks have in the use of cheque as a medium of exchange. Banks are dishonouring so many cheques. There are frauds in the usage of cheques. Thus a lot of questions are to be answered in this study. What are the conditions on which cheque could be dishonoured is the customer to the banks able to make use of cheques issued to him/her. Some people grant cheques knowing fully well that they don’t have any account in the said banks to cash the cheque or that they don’t have enough money in their account, so when people go to banks to present their cheque, it will be dishonoured.
We have heard details or records concerning forgeries in cheque and manipulation in cheque, which will be treated in the later payee. When we look in the prospect of cheque in Nigeria system, Banks are in a high prospect or hope in making Nigeria chequeing system run smoothly without any problem or to be able to detect fraud in a cheque that is to be cashed in the bank and so banks has high hope of making chequeing system in Nigeria run smoothly without any ineffectiveness so that people will be encouraged to put their money on bank to reduce risk.

1.6 LIMITATION OF THE STUDY 
The researcher delimited herself to banks such as First Bank of Nigeria (FBN) and Inland Bank Nigeria Plc (IBN) and Guaranty Trust Banks Plc (GTB) some of other Nigerian Banks was also used in this study and they include: 
a. African Continental Bank ltd
b. Diamond Bank Nigeria ltd 
c. Fidelity Bank Plc

REFERENCES
1. Adekanye, Femi .A. : The Element of Banking in
Nigeria A practical guide 1st Edition 1983 (Grapham Bu Limited Kingdom) page 250.
2. M.J. Henderson: Banking Operations D.P Publishing 
ltd. 
3. Onuora (2005:8) U.S.A 1988 fed page 223-225.
4. Adekanye, F.A (1983:pg 250): The Element of Banking 
in Nigeria. A practical guide 1st Edition. (Grapham Bu Limited kindom)
5. M.J. Henderson (1988:pg 223-225) The Banking 
operations D.P published ltd U.S.A