Chapter One — 1.1 Background to the Study

Agency Banking has increasingly attracted the attention of researchers, regulators, and practitioners concerned with economic growth. This growing interest reflects the recognition that agency banking does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Family-Owned Businesses in Nigeria.

Selected Family-Owned Businesses in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on agency banking, there remains limited consensus on the precise nature of its relationship with economic growth, particularly within Selected Family-Owned Businesses in Nigeria. Many organizations continue to make decisions about agency banking without a clear, evidence-based understanding of how those decisions ultimately affect economic growth. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Agency Banking on economic growth in Selected Family-Owned Businesses in Nigeria.
2. To assess the extent to which agency banking influences economic growth within the study area.
3. To identify the challenges associated with agency banking in relation to economic growth.
4. To recommend strategies for optimizing agency banking in order to improve economic growth.

1.4 Research Questions

1. What is the effect of agency banking on economic growth in Selected Family-Owned Businesses in Nigeria?
2. To what extent does agency banking influence economic growth within the study area?
3. What challenges are associated with agency banking in relation to economic growth?
4. What strategies can be adopted to optimize agency banking in order to improve economic growth?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around economic growth. For managers and practitioners within Selected Family-Owned Businesses in Nigeria, the study provides practical insight into how agency banking can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Agency Banking and its relationship with economic growth within the context of Selected Family-Owned Businesses in Nigeria. It reflects a MSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.