CHAPTER ONE INTRODUCTION 1.1      Background of the study

Customers are presumed the stakeholders of an organization and for an organization to flourish, the needs of the customers must be met. Without the presence of customers, the goals and objectives of an organization will not be achieved. It is therefore pertinent to carry out a research on the behaviors of customer, because knowledge of this will help an organization know how to deal rightly with their customers.

In the 80s, the banking sector of Nigeria did not have many policies as regards the way customers’ services should be met. During this era, the number of banks increased, there was availability of foreign reserves, the GDP increased and there was job creation. The banking sector contributed enormously to the economic growth of Nigeria (Adeoye, 2007). In 2005, 2006, 2007 and 2008 were 8.1, 9.2, 9.8 and 10.6 respectively (CBN, 2009). The truth still remains that the banking sector does not only contribute to the growth of Nigeria alone, but in a way contributes to the economic growth of surrounding African countries.

The satisfaction of customers should be the primary aim of any organization. Retail banks use customer satisfaction as a tool to measure their quality and management of customer relationship with customers (Mihelis et al., 2001). In addition, customer satisfaction as a marketing tool helps an organization know its strengths and weaknesses while offering its products and services. Customers could prove dissatisfaction of either the products or services of a bank either through complaints or raining abuses on the bank. When customers complain of dissatisfaction, it can affect the customers’ loyalists and further make them to patronage other competitors.

However, when customers are satisfied, it makes them happy, fulfilled and excited (Hoyer and MacInnis, 2001). It creates this impression that the value of their money is fully achieved and they will not think of switching banks. Also, it will make customers good referrals of their banks, subsequently bringing in new customers. There are four factors that assess the customer satisfaction in banks: optimum facilities of a branch, economic satisfaction (bank charges and interest rates), presence of e-banking, and Automated Teller Machine (ATMs) (Chakrabarty 2006). Service and product quality are the measures banks need to put in place to serve their customers efficiently.

Meanwhile, banks in Nigeria through their services, most especially when it has to do with charges make their customers dissatisfied. Recently, the Central Bank of Nigeria approved some laws with regards to charges on banks’ customers. Some of those charges include a charge of N1.00 for every debit transaction done on a current account, the N50 stamp duty on non-oil revenue transactions, the N100 e-DMMS Application fee for investors, the N65 ATM withdrawals from other banks, and NSE/CSCS Trade Alert. Charges of these sorts have the tendency of affecting the customers and purposively, the bank.

There are cases of bank customers storming the bank, most especially the customer service unit to find out why some certain amounts were deducted from an account. Cases like this can leave the customer angry, lost of customers’ trust, customers’ switching to other banks and the reputation of the bank being at risk.

However, Nigerians complain a lot about the charges of banks on their customers, and United Bank for Africa plc (UBA) is a clear culprit of this. This is why this study is meant to discover how bank charges affect customer satisfaction.


UBA’s has more than 65 years of providing uninterrupted banking operations dating back to 1948 when the British and French Bank Limited (“BFB”) commenced business in Nigeria. BFB was a subsidiary of Banque Nationale de Crédit (BNCI), Paris, which transformed its London branch into a separate subsidiary called the British and French Bank, with shares held by Banque Nationale de Crédit and two British investment firms, S.G. Warburg and Company and Robert Benson and Company. A year later, BFB opened its offices in Nigeria to break the monopoly of the two existing British owned banks in Nigeria then.

Following Nigeria’s independence from Britain, UBA was incorporated on 23, February 1961 to take over the business of BFB. UBA eventually listed its shares on the Nigerian Stock Exchange (NSE), in 1970 and became the first Nigerian bank to subsequently undertake an Initial Public Offering (IPO). UBA became the first sub-Saharan bank to take its banking business to North America when it opened its New York Office (USA) in 1984 to offer banking services to Africans in Diaspora.

Today’s UBA emerged from the merger of then dynamic and fast-growing Standard Trust Bank, incorporated in 1990 and UBA, one of the biggest and oldest banks in Nigeria. The merger was consummated on August 1, 2005, one of the biggest mergers done on the Nigerian Stock Exchange (NSE). Following the merger, UBA subsequently went ahead to acquire Continental Trust Bank in the same year, further expanding the UBA brand. UBA subsequently acquired Trade Bank in 2006 which was under liquidation by the Central Bank of Nigeria (CBN).

1.2      Statement of the problem

It is very obvious the way bank customers in Nigeria are switching from one bank to the other seeking for a bank with lower bank charges.

Bank charges by banks in Nigeria have left Nigerians unsatisfied with the services offered.

However, the high level of illiteracy among Nigerians contributes to the bank charges meted on them. In the sense that, Nigerians unknowingly accept to some terms without a clear understanding of its implication. For instance, some bank customers subscribe for some alerts (credit, debit and ATM alerts) without the knowledge that it will be deducted from their accounts.

In addition, customers are not well enlightened about the services of the bank and what follows, and this poses a problem at the end of the day.

Another problem bank charges can have on its customers; is that it can affect the reputation of the bank. Customers will go about complaining to friends and family members about how their bank charges and this will discourage prospective customers, thereby reducing productivity.

In conclusion, the tenet of business which refers to customers as king is being forfeited; as they are left unhappy and discouraged through the products and services of the bank.  

1.3      Aims/ Objectives of the study

The major aim of this study is to examine bank charges and customer satisfaction in the Nigerian banking sector.

Other specific objectives include:

To determine the significant difference between bank charges and customer satisfaction. To determine how well Nigerians are informed about bank charges. To determine the relationship between bank charges and the economy. To determine if bank charges affect bank’s productivity. To determine if the Federal government can scrape out bank charges. To determine if bank charges can discourage Nigerians from saving in the bank.  

1.4      Research questions

Is there a significant difference between bank charges and customer satisfaction? Are Nigerians well informed about bank charges? Is there a relationship between bank charges and the economy? Do bank charges affect bank’s productivity?

1.5      Research Hypothesis

H0: There is no significant difference between bank charges and customer satisfaction.

H1: There is a significant difference between bank charges and customer satisfaction.

Significance of the study/ Justification of the study

This study is meant to educate the general public, the banking sector and the government on bank charges and customer satisfaction in the Nigerian banking sector.

It is meant to bring to the knowledge of the banking sector on the need to carry their customers along in other to grant them the needed satisfaction they require. In addition, the study is meant to inform the banking sector, that many charges on their customers can affect their patronage.

However, this study is meant to bring to the knowledge of the government that they can through the CBN help curtail these chargers on customers.

This study will be of immense benefit to other researchers who intend to know more on this topic and can also be used by non-researchers to build more on their work. This study contributes to knowledge and could serve as a guide for other work or study.

1.6      Scope/ Limitations of the study

This study is restricted to bank charges and customer satisfaction in the Nigerian banking sector, a case study of UBA plc, Onitsha.

Limitations of study

1.        Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview). 2.        Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted to the research work.

1.7      Definition of terms

Bank charges: This covers all charges and fees made by a bank to their customers. In common parlance, the term often relates to charges in respect of personal current accounts or saving account. These charges may take many forms, including: monthly charges for the provision of an account.

Customer satisfaction: Is a marketing term that measures how products or services supplied by a company meet or surpass a customer's expectation. Customer satisfaction is important because it provides marketers and business owners with a metric that they can use to manage and improve their businesses.

Banking sector: This is the section of the economy devoted to the holding of financial assets for others, investing those financial assets as leverage to create more wealth, and the regulation of those activities by government agencies


Adeoye, B.W. (2007), “Financial Sector Development and Economic Growth: The Nigerian Experience” Proceedings of Nigerian Economic Society (NES) Conference, 2007.

Central Bank of Nigeria (2009). Annual Report & Financial Statements for the Year Ended 31st December 2008. Central Bank of Nigeria: Abuja.

Mihelis, G., Grigoroudis, E., Siskos, Y., Politis, Y., & Malandrakis, Y. (2001). Customer satisfaction measurement in the private bank 

sector. European Journal of Operational Research, 130(2), 347-360.

Hoyer, W. D. & MacInnis, D. J. (2001). Consumer Behaviors 2nded., 

Boston, Houghton Mifflin Company.

Chakrabarty, A. (2006). Barking up the wrong tree – factors influencing customer satisfaction in retail banking in the UK. 

International Journal of Applied Marketing, 1 (1). Retrieved from http// 





RESEARCHWAP.NET is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • " is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • " is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing