AN EXAMINATION OF EFFECT OF OFF SHORE UNIT ON PROJECT FINANCING IN NIGERIAN ECONOMY
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AN EXAMINATION OF EFFECT OF OFF SHORE UNIT ON PROJECT FINANCING IN NIGERIAN ECONOMY
ABSTRACT
This research is a critical study for offshore banks looking to create a financing channel in Nigeria. I intended to conduct this research to investigate the feasibility of off-shore banking operations in Nigeria.
Second, whether there are enough multinational enterprises and corporations in Nigeria to carry out the function of an offshore banking unit. Finally, the offshore banking unit in Nigeria and its operations may be able to financially support the government.
On this basis, I, the researcher, provided recommendations and reached a conclusion to strengthen the operational system of Nigeria’s offshore banking unit.
PROPOSAL FOR A STUDY OF THE EFFECT OF OFFSHORE UNITS ON PROJECT FINANCING IN THE NIGERIAN ECONOMY
The primary goal of this study was the evaluation of the study.
“AN EXAMINATION OF THE EFFECT OF OFF-SHORE UNITS ON PROJECT FINANCING IN THE NIGERIAN ECONOMY”
This study is divided into five chapters for ease of reading and comprehension.
CHAPITRE ONE. An overview of the subject. It comprises information on the study’s history, problem statement, significance of the study, aims of the study, and lastly the study’s limitations and scope.
CHAPITRE TWO. Here is a review of related literature that was used in the process of these studies.
CHAPTERS THREE AND FOUR. It addressed research design and technique. It scanned my data sources. Due to the literature, I chose the location of my data and the method I employed to acquire it.
CHAPITRE FOUR. My findings are summarised here.
CHAPITRE FIVE. Recommendations and results. Based on the findings above, it has been made to assist us in determining whether the offshore banking unit can assist the government. Financially, as well as to assess the viability of off-shore banking operations in Nigeria.
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Off-shore banking refers to financial activities that support international trade and other business activities that take place outside of the entity’s borders. As a result, it includes a wide range of funding activities such as off-shore aid and grants, among others.
However, it has anything to do with financing activities that are targeted towards obtaining funds for corporation operations outside of the country’s location or coastline. As a result, the issue of development projects has posed a severe challenge to Nigerian banks and other developing countries, as well as a difficulty to US investment (capital market), owing primarily to a lack of foreign money and off-shore funds to carry out her development project.
The Nigerian government and poor countries have made efforts to borrow from some of these international financial institutions, including the World Bank, but the anticipated or expected result has not been achieved.
History has shown us that the Nigerian government’s efforts can be traced back to 1988, when it borrowed from the World Bank for the building of a railway expansion under the assurance of the United Kingdom government. Despite Nigeria’s overall size, she nevertheless has a foreign exchange shortage in order to complete her main project.
As a result, the size of a country is irrelevant; rather, its proximity to the eurozone should be considered. For example, the Bahamas and Cayman Islands are modest in size, but due to their proximity to the US investment market, they were able to realise a considerable sum of offshore funds for economic development.
It is important to mention at this point that European people and enterprises have no foreign exchange concerns for the development of their economy, owing to the majority of their investment in the thriving American economy.
However, the United Kingdom is well-known for being at the heart of the euro-currency and has a long history of being the major centre of traditional finance.
Another issue confronting Nigeria is how to fund her malfunctioning oil refinery, which is owing to a shortage of off-shore cash for the project. In this regard, the availability of offshore funds is required.
Furthermore, the term offshore fund can refer to a financial institution that is physically located in a country and provides financial services such as deposits and loans to foreign residents, corporations, and institutions to the exclusion of country residents, corporations, and institutions. It can also relate to the operation of a financial institution that has little to do with the country’s financial system. OYEGBA, O. 2002.
1.2. STATEMENT. OF THE PROBLEM
To begin, one of the issues with offshore banking is the lack of foreign exchange or offshore cash to carry out her numerous projects. As a result of this weakness, the government should keep in mind that proximity to the euro-market is what really matters, and it should focus on how to attain that. Another example is the connection to the centre of the euro – currency, which the United Kingdom uses.
Finally, one of the problems confronting those countries is management, and here is where the research is currently focused.
1.3. OBJECTIVES OF THE STUDY
The following are the goals of this study.
1. To critically assess the prospect of an off-shore banking unit obtaining deposits from overseas residents for our problem in a different country.
2. Another goal of the off-shore banking branch is to assist Europeans in not just serving but also investing in American companies. This is drawing the euro-dollar to the American country.
3. The offshore banking section also assists in gathering information about American companies and their stock prices, volume of trade turnover profit, and dividend, as well as guiding customers through the buying shires procedure.
4. Finally, the offshore banking unit launched euro-dollar services in Brussol to address issues such as physical transportation of securities, the risk of paying for a surrending stock, and bond transfers.
1.4. SIGNIFICANCE OF THE STUDY
One of the most important aspects of offshore banking is the provision of consulting and management services to foreign residents and their customers through their investment. Management section. It is critical that any developing country that want to build an off-shore banking unit become acquainted with such an information network. This is a valuable item that should be purchased.
Off – shore banking units can borrow from any foreign bank or financial organisation, including the home government’s foreign office.
It can also borrow from the parent bank, but it must consider its euro-dollar research liabilities and the minimum borrowing time, which in the case of the United States is overnight.
Offshore banking units lend to overseas citizens, foreign officials of home country firms, and foreign offices, as well as to the parent banks. As with deposits, the funds must be related to international or non-domestic company.
In the United States, a company’s overseas affiliates cannot borrow from an offshore banking unit to support its parent bank, and the parent bank must maintain a 3% reserve requirement on its net euro – currency liabilities. OBTOMA, 1995.
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