Browsing by Author "Olaniyi, T.A"

Now showing 1 - 20 of 26
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    An appraisal of cost of queuing in Nigerian banking sector, a case study of first bank of Nigeria Plc; Ilorin branch
    (Faculty of Business and Social Sciences, University of Ilorin, 2004) Olaniyi, T.A
    The endless customers waiting for service delivery in Nigeria banking halls is a phenomenon that bothers both the management of banking institutions and the customers alike. Thus the need to optimize total operating cost by determining the optimal balance between the cost of making customers to wait for service and the cost of providing additional service. Some studies have claimed that service improvement can be achieved by increasing the number of servers, but to what extent can this be done to minimize overall total cost? This study examines the validity of this claim by comparing the comparing the performance of a single channel with multi – channel queuing models in achieving cost reduction and customer satisfaction objectives using the First Bank of Nigeria Plc, Ilorin Branch as a case study. The study reveals a preference for multi-channel system determines a limit to its usage and makes recommendations for improvement in service delivery.
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    Assessment of foreign direct investment on economic growth in Nigeria
    (Department of Banking and Finance, Economics and Management Studies, Afe Babalola University, 2015) Olaniyi, T.A
    As unclear as the efficacy of tax incentives for attraction of Foreign Direct Investment (FDI) is, governments especially those of the developing countries have continued to grant incentives to expatriates in order to lure them to invest in their domestic economies. Thus, this study evaluated the impact of tax policy incentives on the inflows of foreign direct investment in Nigeria. It specifically investigated the impact of company income incentives, petroleum profit tax incentives, value added tax incentives, and custom and excise duties incentives on inflow of foreign direct investment into the country from 1994 to 2016. This study adopted ex-post facto research design, while multiple and correlation methods were used to analyze the secondary data obtained from Central Bank of Nigeria database. The study revealed that custom and excise duties and value added tax incentives has significant effects (Coeff= -2.096 and 4.247, p-values= 0.0233. 0.0125) respectively on foreign direct investment in the country, while companies income tax and petroleum profit tax incentives showed insignificant impact (Coeff= -1.514 and 2,749 percent; p-values= 0.1510, 0.7375) respectively on foreign direct investment in Nigeria. The study concluded that tax incentive policy is a good driver of foreign direct investment into Nigerian economy. It was recommended among other things that the government should find justifiable level of the VAT and custom duty to be paid by importers of foreign materials that will yield the maximum level of FDI into the country.
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    Bankruptcy prediction through financial strength analysis, a case study of trade bank Plc
    (Department of Business Administration, University of Ilorin, Ilorin., 2006) Olaniyi, T.A
    Loss of depositors’ funds, loss of jobs, insecurity of property and investment as well as consequential loss of confidence coupled with other concomitant effects of bank failure had reduced the value of Nigerian banks as the live-wire on which the payment system relies. This study measures the bankruptcy status of Nigerian banks with a view to determining their potential of failure of using Trade Bank Plc; as a case study. The study however, made use of secondary data only which were obtained from the published annual financial statements over a period of five years ended 2002, while the analysis was carried out through the use of Altmans Multiple Discriminant Analysis model (Z Scores). It was concluded that the bank has a high potential of failure as evidenced by poor operational performance, low Zeta score and recommends a drastic redress in terms of profitability, liquidity and effective credit management.
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    Comparative analysis of the effect of tax haven, tax evasion and tax avoidance on tax revenue in Kwara state, Nigeria
    (Federal University, Gashua, 2016) Olaniyi, T.A
    Tax haven, tax evasion and tax avoidance practices are problems bedeviling the Nigerian tax system and revenue generation for some years now and it seems to have defied various forms of solutions. While some had blamed the situation on tax authorities for failing to live up to expectation as regards tax administration, others associated it to the unpatriotic attitude of tax payers, The study examines the effect of tax haven, tax evasion and tax avoidance in Nigeria, it specifically examined individual effect of tax haven, tax evasion and avoidance on tax revenue on a comparative basis in Nigeria, Survey research design was adopted and 55 copies of questionnaire were administered to collect primary data for the study. Descriptive statistics and inferential statistics (regression analysis, ANOVA and Chi-square) were used in analyzing the data. The study revealed that tax haven, tax evasion and tax avoidance greatly hinder tax revenue generation in Nigeria with Tax haven contributing the greatest hindrance. Tax rate was also found to be a key factor determining the level of tax avoidance, tax evasion and shifting income to tax haven in the country. The study concluded that tax revenue is greatly reduced by all the independent variables, tax haven having more devastating effect on revenue reduction while tax revenues were not judiciously used in the provision of social amenities to the benefit of tax payers. The study recommends amongst others that government should efficiently utilize that tax revenue in the provision of public goods, and encourage tax payers through enlightment and tax incentives to reduce the incidence of tax avoidance, tax evasion, and shifting of income to tax havens outside the country.
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    Determinants of accounting students’ academic performance of public universities in Kwara state
    (Departments of Accounting & Finance and Business Administration, Fountain University, Osogbo., 2016) Olaniyi, T.A; Adetoyan, E.S; Mustapha, A
    Students, who were provided with the same facilities, taught by the same lecturers and used the same study modules differ in terms of academic performance the trend of which are subject of different factors which also vary from students to student. This study examines the factors that influence academic performance of accounting students in public universities in Kwara state, Nigeria. Specifically, the study evaluates impact of lecturer’s ability to impact knowledge, effect of personal factors, physical and environmental factors on academic performance of accounting students. The study employed Krejciean and Morgan’s table to select 250 respondents from University of Ilorin and Kwara State University for 2014/15 academic session. Structured open-ended questionnaire was used to obtained primary data used while ordered logistic regression analysis was used to analyze responses on core factors as specifies in the model. The result revealed a significant positive relationship between lecturer’s ability, class attendance, class size, study hour, course unit loading; accommodation and student academic performance while internet facility give a negative significant relationship with students’ academic performance. Based on these findings, it was recommended that students should increase their study hour per day. University internet facility should be restricted from certain social sites so as to prevent student abuse, class attendance should be strictly taken into consideration when preparing students list for examination purpose. Frequent training, workshop and seminars should be continued for lecturer so as to increase their lecturing skill and professionalism.
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    Effect of pricing decisions on performance of small and medium enterprises in Kwara State.
    (Department of Accounting, Kaduna State University., 2014) Olaniyi, T.A; Abiola, W.O; Oluwatusin, R.G; Sakariyahu, O. R
    The strategic nature of price determination has been trivialized by the SMEs in Nigeria as they jumped at any opportunity of temporary raw material scarcity or associate price hike to increase their product prices leaving the consumers with paying higher for products that remain the same in quality and quantity. This share lack of pricing and marketing strategies had led to constant strike actions and increase in prices by bakeries in Kwara State and thus propelled the need to evaluate the effect of pricing decisions on turnover of these bakeries which forms the fundamental objectives of this paper. The primary data used in this study were obtained through questionnaire administration on 100 purposively selected respondents from 20 registered bakeries in Kwara State while the secondary data were obtained from the records of these bakeries. The primary data were analyzed descriptively while the secondary data were analyzed using student t-distribution test of two mean and price elasticity of demand was conducted while Pearson Moment Correlation Coefficient was carried out to establish the degree of relationship between turnover and changes in pricing decision. The result reveals an insignificant increase in turnover /profitability as price of bread increase while no form of conventional pricing methods or marketing strategies is followed in pricing policy of the bakeries but they depend on the rule of thumb as well as their desire profit margin in fixing product prices (X1-X2=65.06, T=0.67 and R2=84%). More so, the demand for bread is inelastic as it has no close substitute. The study recommends that training of the bakery operators on conventional pricing and marketing strategies, while serviced of experts should be engaged in price determination with a view to keep cost of production under control and evolves appropriate prices that will increase their turnover and bring value to the consumers.
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    Effect of tax rate,tax avoidance and tax evasion on revenue generation in Nigeria
    (Faculty of Management & Social Sciences, Ibrahim Badamasi Babangida University, Lapai., 2014) Olaniyi, T.A; Olabisi, S.O; Adeyemi, Z.A; Sakariyahu, O. R
    The shift from dependence on oil revenue to Internally Generated Revenue (IGR) of which tax constitutes a huge proportion to finance developmental functions in Nigeria has not yielded the required results due to draw down on the country’s revenue base by tax rate, tax avoidance and tax evasion practices. This study, therefore, evaluates the effect of these dominant factors (tax rate, tax avoidance and tax evasion) on company income tax revenue in Nigeria, using a survey method via the instrument of questionnaire on a sample of 396 employees of Federal Inland Revenue Service in Nigeria. The reliability confirmatory test yielded 0.81 and 0.78 coefficients (Crombach Alpha) for dependent and independent variables respectively while hypotheses of significant relationships between and among the dominants factors and companies income tax revenue were tested using Analysis of Variance (ANOVA) model. The study finds a significant tax evasion and tax avoidance practices among Nigerian companies while prevailing ax rate has been adjusted fairly high which has resulted into negative significant impact on tax revenue. The study also reveals lack of transparency on the use of tax revenue which fuels more tax evasion and tax avoidance practices. It was therefore, recommended that tax rate should be lowered while Nigerian government should demonstrate accountability and transparency in the utilization of company income tax revenues on developmental functions with a view to discourage tax avoidance, tax evasion and boost revenue base as well.
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    Effect of taxpayers trust and confidence on voluntary compliance in Ilorin, Nigeria.
    (Faculty of Management and Social Sciences, Fountain University, 2016) Olaniyi, T.A
    Lack of taxpayers’ trust and confidence (TC) in the tax system and/or in the tax officials is manifested tax avoidance and tax evasion and strained relationship between tax payers and corrupt tax officials (CM). More so, tax benefit (TB) expected from the government (infrastructure provision and security of lives and property) were at low ebb which aggravates trust and confidence in the tax system. This study evaluates the effects of tax payer’s trust and confidence on voluntary compliance in Kwara state, Nigeria using primary data collected through questionnaire administration on selected 384 samples while analysis was carried out using probability multiple regression (probity) model. The study reveals that TC, TB and transparency of the tax system have significant positive effect (p-0.0024; 0.0019 Coeff-=0.4696, 0.4686) respectively on voluntary compliance while CM and CC have significant negative effect (P= 0.0026; 0.0042 Coeff= 0.6650; -0.6668) respectively on tax payers voluntary compliance. The study recommends that government should elicit voluntary tax compliance by providing basic necessities for human survival; security, jobs, good roads, drinkable water as well as good health system and stable per supply among others, minimize corruption in the tax system with a view to increase government revenue for sustaining economic growth of the country.
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    Effect of value added tax and capital gains tax on economic growth in Nigeria: traditional versus buoyancy approach
    (Faculty of Management Sciences, Al-Hikma University, Ilorin., 2016) Olaniyi, T.A; Bello, N.F; Yunus, B.A
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    Effect of value added tax and capital gains tax on economic growth in Nigeria: traditional versus buoyancy approach
    (Faculty of Management Sciences, Al-Hikma University, Ilorin., 2016) Olaniyi, T.A; Bello, N.F; Yunus, B.A
    This paper evaluates the effect of Value Added Tax (VAT) and Capital Gains Tax (CGT) on economic growth in Nigeria using both the traditional method of raw data analysis and a more robust buoyancy method of measuring performance of tax systems. Secondary data used relating to main variables (VAT, CGT) and control variables Company Income Tax (CIT) and Petroleum Profit Tax (PPT) covering 1994-2014 were obtained from reports of Federal Inland Revenue Service (FIRS) and Central Bank of Nigeria (CBN) and these data were analyzed using Ordinary Least Square regression analysis with robust standard error. The result of the study at 5% significant level using traditional method reveals positive significant effect of PPT and CIT on Nigeria’s Economic growth (p-values = 0.0000, 0.0000) while VAT is also significant at 5% (p=0.0002). However, CGT was insignificant (p=0.220). Contrarily, the buoyancy approach reveals mixed and oscillating performance of VAT and CGT on an annual basis but such performance were satisfactory in 13 years out of the 20 years covered (tax buoyancy ≥ 1). The study concludes that the use of buoyancy approach in evaluating the performance of tax systems is preferred to the traditional method for policy direction and is recommended to be used in conjunction with the traditional approach. More so, VAT and CGT should be adequately exploited as alternative revenue sources to support the dwindling oil revenue to sustain economic growth vision of Nigerian government.
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    Employee motivation and public sector fraud: evidence from Kwara state, Nigeria
    (Federal University of Agriculture Abeokuta, 2013) Olaniyi, T.A; Saad, T; Abiola, W.O; Adebayo, S.A
    This study examines the relationship between fraud and employee motivation in Kwara state public sector with a view to ascertain what will happen to fraud occurrence if good salary, allowances and perquisites, effective working hours, conducive environment, timely promotion are put in place. Multistage sampling technique was used in obtaining the primary data used from 870 respondents selected from 7 local governments in the state and were analyzed using Ordinary Least Square Regression and Friedman ANOVA test but interpreted using R2 adjusted R2, Durbin Watson statistics, F statistics and t statistics. The result show that employed motivational factors (salary, perquisites and regular promotion) can reduce fraud activities among the state employees; this is consonance with theoretical expectations (Douglas McGregor’s theory Y, Abraham Maslow’s needs theory and Fredric Herzberg’s two-factor theory). Contrarily, allowances, conducive environment and training show a positive relationship with fraud and this is at variance with a-priori expectations. The study recommends that government should improve the working conditions of its employees including the provision of improved training to motivate employees towards efficiency, commitment and inhibit fraud inclinations. If all these are put in place and erring officials are made to face the full wrath of the law without bias, the state economy in particular and Nigeria economy in general will be better for it.
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    Evaluating the impact of corporate social responsibility on profitability in the oil and banking sectors of Nigeria.
    (Department of Accounting, Adekunle Ajasin University, 2014) Olaniyi, T.A; oloyin-HabdulHakeem, B.O; Sanni, M; Oke, A.A
    Although corporate social responsibility is a means of given back to the society in place of social and environmental damage that organizations might have caused, thereby reducing communal conflict and facilitate smooth operation, however, it also severs as income leakage thereby serving a dual role. This study investigate the impact of Corporate Social Responsibility on profitability in the oil and banking sectors of Nigeria for the period of 2001 to 2010 using secondary data generate from annual reports of Royal Dutch Shell Plc and First Bank of Nigeria Plc. A correlation analysis estimated with ordinary least square method was used to evaluate the relationship between Corporate Social Responsibility expenditure and profit before tax of both firms while a cause and effect relationship between the two variables was established using Granger causality method. The result finds a strong and significant positive relationship between Corporate Social Responsibility and profitability in both sectors which precisely implies that a unit increase in Corporate Social Responsibility expenditure will lead to an increase in Profit before Tax of both sectors. More so, no causation was found to exist between the two variables. It is therefore recommended that organizations should improve on their CSR activities, look beyond the interest of the society and the host community as well, while government should monitor CSR expenditure of corporate organizations to ensure compliance with extant laws and as well prevent tax evasion by overstating the CSR expenditure, all with a view to have a better by far society and a growing economy.
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    An evaluation of the determinants of tax compliance in Ilorin metropolis
    (Department of Accounting, Banking &Finance, Osun state University, 2019) Olaniyi, T.A; Oyeniyi, K.K; Kuranga, A
    Tax constitutes the principal source of government revenue and the beauty of any government is for its citizens to voluntarily execute their tax obligations without much coercion and harassment. However, tax compliance among SMEs in Kwara State is poor such that they were being forced to pay either by locking up their business outfits or waylaid during marketing or transportation of their products. Therefore, this study evaluates the factors that influence SMEs owners to willingly comply with tax obligation in Ilorin metropolis. A cross sectional survey design was adopted and sample sizes of one hundred and two (102) registered firms were selected. The primary data, which were collected through self-administered questionnaires, were treated statistically using simple percentage and probability multiple regression model (probit). The study reveals that all the variables: audit probability and fine rate (APF), tax morale(TM), tax fairness (TF) as well as trust in Government (TG) have positive significant effect on tax compliance in Ilorin metropolis (prob= 0.004), 0.0175, 0.0060 and 0.0260 respectively at 5% level of significance. The study concludes that both deterrence (audit probability, fines and penalties) and socio-psychological factors (TM, TF, TG) exert significant impact on tax compliance in Kwara State. However, it was recommended that: (i) Kwara State government and its tax authorities should increase tax audit and penalty/fines for non-compliance, (ii) build trust in taxpayers by being honest with the use of tax proceeds. (iii) Also SMEs should be levied bearable tax liability in order to pave way for SME growth, give them better chances of survival in a competitive market with a view to stimulate more tax compliance and sustainable economic development in the state.
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    An evaluation of value analysis as a corporate strategy in the attainment of organizational objectives in Nigeria
    (Department of Business Administration, University of Ilorin, Ilorin., 2008) Olaniyi, T.A; Adewale, A.A
    The focus of corporate performance had been on reporting higher profits rather than shareholders’ wealth maximization. The ability to report such higher profit was a reflection of corporate efficiency even to the detriment of other crucial organizational objectives ranging from customer retention through improved product quality to employee satisfaction. All these are expected to be achieved within the framework of the industry regulation. Today, profitability alone had been adjusted as an inadequate measure of corporate efficiency. This therefore calls for a more pragmatic approach of producing goods/services at lower costs without a reduction in value (value analysis). The efficiency of this approach supersedes the traditional approaches of cost reduction and cost control in achieving other organizational multifarious objectives. This study evaluates the applicability and extent of practice of value analysis in comparison with traditional approaches to achieving organization objectives in Nigerian Manufacturing companies, using Cadbury Nigerian Plc; as case study through interval estimates method of analysis. The study revealed a fairly satisfactory level of practice of value analysis in spite of the company’s major focus on traditional techniques. It equally revealed a sharp customers response to price-quality relationship and recommends a more dedicated efforts towards improving the practice of value analysis.
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    The global endemic nature of financial malpractices: an analytical appraisal
    (Department of Business Management, Faculty of Management Sciences, University of Maiduguri., 2005) Adefila, J.J; Kasum, A.S; Olaniyi, T.A
    It is increasingly becoming a commonplace knowledge that virtually every facet of the nation’s economy is enmeshed in financial inadequacies. It is equally not in doubt that to an average educated Nigerian, fraud in the form of financial mismanagement has become a bed-mate to our national life. The above scenario brings to question as to whether Nigeria is an island of corruption and hence making saint of the rest of the world. In an attempt to address this rather imposing question, study examines financial malpractices on a global terrain in order to have the picture of the global occurrences and of course, the position of Nigeria in the comity of nations. To this end, the study specifically examines the occurrences in Nigeria using the banking industry as a showcase. From this point, it went further to examine the bank crises at a global level using the experiences as obtainable from some selected countries. The global economic mismanagement of political leaders was equally brought to light. Since all these have a devastating effect on the economy by increasing the poverty index and hence reducing the standard of life, the study further revealed the comparative standard of life of some selected countries. The Nigerian placement on the corruption index was equally delved into, all in an attempt to have the position of Nigerian in the scheme of things. The study being a theoretical exposition made use of the available records of relevant agencies of Government, World Bank reports and publications of the Transparent International. The mode of analysis was purely descriptive but supported with facts and figures. The study was concluded by, recommending that though fraud is endemic; curbing it would require organizational awareness of what it takes to prevent its occurrence. Once each organization leaves to expectation the nation and the entire world will be better for it.
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    Impact of tax touting on interstate road transport service delivery in Kwara State, Nigeria.
    (Department of Accounting, University of Ilorin., 2016) Olaniyi, T.A; olanipekun, A.A; Mustapha, A
    This study examines the impact of tax touting on interstate road transport service delivery in Kwara State through the use of survey research design via primary data obtained from questionnaire administration. The data was analyzed with the aid of Ordered Probit Regression, Z-test and ANOVA after ascertaining the internal consistency and reliability of the data using Chronbach Alpha which gave an acceptable value of 0.7170. The study finds and concludes that ta touting (TT) has negative impact (Coeff= -0.12685) on interstate road transport service delivery in Kwara State, while payment of Local Government Dues (LGD) and Transport Union Dues (UD) also have negative impacts (-0.3023, -0.3031 respectively) on ITSD. Contrarily, National Committee against Touting (NCAT) has a positive but insignificant impact on ITSD, indicating that NCAT has not been able to curb the activities of tax touts from illegal extortion of tax payers. The study recommends the discontinued use of third party (consultants) for collection of taxes and levies, strict enforcement of the law establishing NCAT and the committee should be empowered legally and with man and material resources to eradicate tax touting, eases the transport system, create public convenience, raise the standard of living and economic growth of Nigeria.
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    Impact of taxation on government capital expenditure in Nigeria
    (Fountain University, Osogbo., 2019) Olaniyi, T.A; Mustapha, N.A; Oyedokun, G.E
    This paper investigated the impact of taxation on government capital expenditure in Nigeria. Secondary data were used and were obtained from Central Bank of Nigeria (CBN) Statistical Bulletin and Federal Inland Revenue Service website for period 1994 to 2016. Descriptive statistics was used to describe the variables under investigation, Augmented Dickey Fuller (ADF) Unit Root Test and Johansen Co-integration tests were used to establish the stationarity and long run association among the variables while Error Correction Model (ECM) was used to establish the exact impact of taxation of capital expenditure in Nigeria. The study showed that Company Income Tax (CIT), Petroleum Profit Tax (PPT), Personal Income Tax (PIT) and Education Tax (EDT) have significant financing power on government capital expenditure. Contrarily, Value Added Tax (VAT) and Capital Gain Tax (CGT) are not significant variables affecting government capital expenditures. It was concluded that taxation revenue has significant effect on government capital expenditure in Nigeria and the Nigerian government should improve its efforts in ensuring that all taxes are collected to prevent revenue leakage, in order to ensure provision of adequate infrastructural facilities which translate to economic growth with a view to sustaining the welfare of its citizens.
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    The Nigerian public sector reforms and accountability: an examination of integrated payroll and personnel information system.
    (Department of Economics, University of Maiduguri., 2013) Olaniyi, T.A; Mahmoud, F.B
    Inability of previous reforms to address lack of transparency and accountability in the Nigerian public sector led to the introduction of Integrated Payroll and Personnel Information System (IPPIS) whose efficacy was also wrapped in absurdity. On one hand, there have been reports by the Federal government on how successful the implementation of the program has been in terms of cash savings and reduction in ghost worker conversely, (civil servants complained of its poor implementation which had resulted into series of industrial actions and death in some cases. This study therefore evaluates the performance of IPPIS with respect to achieving accountability in the Nigerian public sector. The primary data used were obtained from administration of Four hundred (400) copies of the questionnaire to six (6) identified categories of stakeholders under IPPIS. Skewness, Kurtosis and Cronbach Alpha test were conducted to establish Normality and reliability of the data which was later analyzed using Pearson Product Moment Correlation. The study revealed that only regular payment of authorized salary to IPPIS enrollees contributes positively significantly to accountability while personnel information is inadequate and the payment process, data integrity and record update have negative impact on accountability. IPPIS on the whole has negative but insignificant impact on accountability. Improvement in personnel information, data integrity, payment process and record update are recommended while the Federal government should ensure judicious usage of recovered funds if the much desired accountability in the name IPPIS is to be achieved.
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    Post consolidation assessment of the effect of capital structure on banks’ performance in Nigeria
    (Department of Business Administration, University of Ilorin, Ilorin., 2013) Olaniyi, T.A; Adeyemi, A.Z; Oloyin-AbdulHakeem, B.O
    This study examines the effect of capital structure of bank performance in post-consolidation era in Nigeria with a view to validate or refute the long standing Modigliani and Miller theory of irrelevance or the Traditional relevance theory. The secondary data used were obtained from annual financial statements over a period of seven (7) years from 2005 to 2011 of the stratified sampled fifteen (15) banks listed on the Nigerian Stock Exchange. A panel regression analysis was applied on Return on Assets (ROA) as performance indicator as well as short term debt ratio (STDTA) and total debt ratio (TDTA) as proxies for capital structure while a 2-tailed t-test was used to test the formulated hypothesis at 5% significance level. The study finds an insignificant negative impact of capital structure (STDTA and TDTA) on bank performance (ROA), a compliance with MM irrelevance theory leading to the acceptance of null hypothesis; that no significant relationship exist between capital structure and bank performance in Nigeria. The study recommends that instead of emphasizing capital structure composition, managerial efficiency must be sought instead, with a view to enhance bank performance/profitability, achieve all-round stake holders satisfaction and engender a more viable and reliable banking sector in the country.
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    Predicting potential of failure in Nigerian banking sector, a comparative analysis of first bank Plc; and trade bank Plc;
    (Department of Political Science and Public Administration, Babcock University., 2007) Olaniyi, T.A
    The consequential disruption of the payment system, that spirally reduce employment level, per capital income and Gross Domestic Product (GDP) which hampers the growth of small scale businesses are the concomitants of bank failure which if not timely addressed might worsen the poverty level of Nigerians. This study evaluates the susceptibility of Nigerian banks failure with a view to discriminate between sound and unhealthy banks a guide to investment decisions using First Bank and Trade Bank as case studies. Multivariate Analysis of Z Scores was carried out on the secondary data obtained from the bank’s annual reports and accounts between 1998 and 2003 and it was concluded the model can measure accurately potential of failure of unhealthy banks but inaccurately the failure status of sound banks. A more rigorous study involving more healthy and unsound banks is recommended to establish the accuracy of prediction of the model.