CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Before the
emergence of modern banking system, banking operation was manually done which
lead to a slow down in settlement of transactions. This manual system involves
posting transactions from one ledger to another which human handles. Figures or
counting of money which should be done through computers or electronic machine
were computed and counted manually which were not 100% accurate thereby
resulting to human errors. Most bank then use only one computer in carrying out
transactions which ameliorate the sluggish nature of banking transaction.
Nigeria do not
embrace electronic banking early compared to developed countries. Nigeria
adopted electronic banking system in the early 2000s. During the introduction of electronic banking
system, the use of raw cash was said to have bred corruption through the “cash
and carry syndrome” usually linked with the swift movement of Ghana-must go”
bags by some politicians. Such bags as some analyst say, are a major source of
corrupt practices as dubious persons seeks to bribe their way to avoid been
checked in some sensitive areas or places in a corrupt society.
Since electronic
banking started in all Nigeria banks, it has been a woe for civil servants;
checks show that some staff in establishments such as the national boundary
commission for instance, are yet to receive their salaries for the previous
months as efforts to electrically transfer salaries into their account have
failed according to Ibrahim, D. (2009).