1.1 BACKGROUND OF THE STUDY
The use of computer in business transaction is growing day by day and it is widely use. It is common in most part of the country and the world itself is becoming a global village. Information technology most especially in the area of computer and communication network has incorporated in most all aspect of business activities today. It has been found to be effective, efficient, fast and reliable.
Computers are fast and also easier to use that is why organizations have adopted the use of computers in business transaction. Nigerian stock exchange adopted the use of information technology by using computer in their day to day transaction, they also use internet in carrying out their transaction by communication with stakeholders globally.
The internet is basically a vast and ever increasing network of computers across the globe that is interconnected over existing telecommunication network. That is, it is a network or networks. World over the term of world internet has become a household thing. It is a mega tool in the world of information technology that has shattered the defensive barrier of time, space and language thereby compressing the world into a global village the services of the internet include electronic commerce, electronics banking, electronic library etc.
The Nigerian Stock exchange was incorporated in 1960 as the Lagos Exchange in December 1977, it becomes Nigerian Stock Exchange with branches established in some of the major commercial used of this technology in their day to day transaction because of the increase of customers, these technologies make their work fast and easier to operate.
Although, a lot has been done by organizations and companies in the field of information technology adequate attention has not been paid on the performance of Nigerian Stock Exchange in Yola Zonal Office to determine the impact of information technology and its implementation in business transaction towards enhancing service delivery. Some of these problems are inadequate information technology facilities like the need for more vaster internet portal to be procured and install to make it adequate. The present situation in which the offices have linked to Lagos to participate in trading everyday do not means well for the general progress of the exchange.
The research therefore aimed at taking a closer look at some of these facilities, its performance in business transaction and implementation in enhancing services delivery.
1.2 STATEMENT OF THE PROBLEM
Computerization is a world phenomenon and is now taken for granted as an indispensable companion in financial structure of any independent and dependent organization. In Nigeria as a whole it is merely about Thirty-nine (39) years old one may wonder without computer as they have been doing before.
Looking generally at the operation of computer in the Nigerian Stock Exchange one could notice some problems of the computer section of the stock exchange.
The specialized nature of the job which involves staff with a high degree of skill in the computer field. The services rendered to customers are very poor and has to be improved because customers waste a lot of time before making a transaction manually, which is now lying in the hands of the section.
The computer section in the stock exchange is left the task of preparing the customer reports instead of leaving it to account department which lead to serious misunderstanding between the computer staff and account staff.
The manual data processing method in the Nigerian Stock Exchange has the following as its shortcomings.
1) The method involves much paper work
2) It is time consuming and tedious
3) There are always calculation errors
4) It waste customers valuable time
5) Customers file cannot be easily updated
6) Staff are being overworked and close late
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is to determine the need for computer communication system and the performance of Nigerian Stock Exchange. The following are the specific objectives:
i) To find out how the Nigerian Stock Exchange use computers in their business transaction.
ii) To find out how internet that is world wide network of computers has help in business transaction and service delivery.
iii) To find out how trading is done on the floor of the Nigerian Stock Exchange using the communication system that is mobile phone.
1.4 RESEARCH HYPOTHESIS
A hypothesis is an idea, suggestion, put forward as a starting point for reasoning or explanation it also refer to opposition made as a starting point for further investigation from facts known it is also a conceptive statement of the relationship between two or more variable.
There are basically two method of testing hypothesis, which would be used as basis on which the result would be drawing.
a) Alternative Hypothesis (H1): The information technology plays a vital role in the improvement of the Nigerian Stock Exchange.
b) Null Hypothesis (H0): The information technology does not, play a vital role in the improvement of the Nigerian Stock Exchange.
1.5 SIGNIFICANCE OF THE STUDY
The essence of this research work is to determine the use of computers on the trading floor of the Nigerian Stock Exchange and also to find out the use of internet and how it has helped capital market stakeholders in monitoring their shares o the floor of the exchange to know how far they have gone as far as information technology is concerned and to improve on their services for the betterment of the company.
1.6 SCOPE OF THE STUDY
The research intended to cover the overall head office of the Nigerian Stock Exchange Laos but for certain constraint the researcher restricted it to the Nigerian Stock Exchange Kaduna Zonal Office. This work will focus on the effects of information technology on the performance of Nigerian Stock Exchange. In view of this, the researcher limited his study to the relevant information obtained from Nigerian Stock Exchange and view of relevant literature.
1.7 HISTORICAL BACKGROUND OF THE CASE STUDY
The Nigerian Stock Exchange was established in 1960 as the Lagos Stock Exchange. In December, 1977, it became the Nigerian Stock Exchange with branches established in different part of the country.
Presently, there are seven branches of the Nigerian Stock Exchange in which each branch has a traditional floor that of Lagos (branch) was opened in 1996, Kaduna 1978, Port Harcourt 1980, Kano branch 1989, Onitsha was February 1990, and Ibadan August, 1990, Abuja area office in 1999, where Lagos is the Head Office of the Exchange.
However, the exchange which started with only nineteen (19) securities made up of 34 Federal Government Stock, 62 Industrial Loan (debenture) and preference stock and 183 equity/ordinary shares of companies all with a total market capitalization of approximately N170.00 Billion. Most of listed companies have foreign and multinal applicational and represent a profile of the various sector of the economy ranging from automobile banking, airline, breweries through pharmaceutical to agro-allied publishing, textile, petroleum and insurance companies.
Furthermore, they have in place a tested stock market network of 153 stock brokerage firms (as at August, 1995) issuing houses (merchant banks) practicing cooperate law firms and over 50 quality firms of auditors and reporting accountants most with internal banks it is a recognized fact that the stock exchange and most of the nation’s stock broking firms and issuing houses are staffed with creative financial engineers that can compete anywhere in the world. They therefore have a network of intermediating and creditably meet the challenges and growing needs for foreign investors, the stock exchange has a year of grand history, which is devoid of any fraud, stocks, scandal or any insider dealings.
1.8 DEFINITION OF TERMS
Security: These are written or printed document by which claim of holders specified properly are secured. This could be stock, shares bond, debenture.
Investor: Is a person in an institution that uses saving or borrowing to buy securities.
Stock Brokers: Is people who buy and sell securities on behalf of inventors for a commission called brokerage.
Automated Trading System: This is where the buying and selling of shares is done on computer. The computer automatically does the transaction.