Subject : 

Business Studies 

Term :




Class :


Previous lesson: 

The pupils have previous knowledge of


that was taught as a topic during the last lesson.

Topic :




Behavioural objectives:

By the end of the lesson, the pupils should be able to

  • say the meaning of banks
  • mention types of banks
  • give examples of commercial banks in Nigeria
  • write out the functions of commercial banks in Nigeria
  • define cheque
  • list the reasons for making banks dishonour cheques



Instructional Materials:

  • Wall charts
  • Pictures
  • Related Online Video
  • Flash Cards

Methods of Teaching:

  • Class Discussion
  • Group Discussion
  • Asking Questions
  • Explanation
  • Role Modelling
  • Role Delegation


Reference Materials:

  • Scheme of Work
  • Online Information
  • Textbooks
  • Workbooks
  • 9 Year Basic Education Curriculum
  • Workbooks



Meaning of a Bank 

Banks are financial institutions where money is put for safekeeping and where money can be paid out to the owners when the need arises.


Types of banks

Central Bank (CBN) is the government bank and which acts as the banker to other banks, the Nigeria industrial Development Bank, Agricultural and Cooperatives Bank, Mortgage Bank and Commercial Banks.


Examples commercial banks are: First Bank of Nigeria (FBN) PLC, Union Bank of Nigeria (UBN) PLC, United Bank for Africa (UBA) PLC, Zenith Bank (PLC), Guaranteed Bank (PLC), WEMA Bank (PLC), Skye Bank(PLC).


Functions of Commercial Bank

  1. Commercial banks accept deposits from customers into their different accounts for safe-keeping and make it possible for them to withdraw the money when the need it.
  2. They make payments on behalf of their customers. They perform investment services and receive and pay dividends to their customers.
  3. Commercial banks grant loans and overdrafts to aid their customers’ trade.
  4. They provide foreign exchange to their customers to facilitate their foreign transactions.
  5. They issue travelers cheques to their customers when travelling abroad for business.
  6. They safe-guard valuables such jewelry, share certificates and other important documents.
  7. Through e-banking facilities, they make withdrawals and transfers of money from one place to another very easy and faster especially in the course of business


Commercial banks provide the following banking services:

Current Account

A current account is an account from which the owner can withdraw money at any given time provided there is enough money in it. Choques’re normally used to withdraw money from the current account. But with e-banking facility, a customer can also withdraw money from his current account with ATM. Payments can also be made from the bank account through a standing order.


Conditions for Dishonouring a Cheque

  1. A bank can dishonor a cheque if the amount written on the cheque is more than the amount in the drawer’s account. 
  2. The signature of the drawer does not agree with his specimen signature.
  3. The cheque is not signed.
  4. The cheque may be signed but has become stale. A stale cheque is an exchequer that is not presented for payment before the end of six months of its issue.
  5. There is a disagreement between the amount in figures.
  6. The drawer does before the presentation of the cheque for payment.


Types of cheques

  1. Open Cheque
  2.   Bearer cheque        
  3.   Order cheque    
  4.   Crossed cheque


Savings Account

A savings account is an account in which the money saved earns interest at prevailing interest in the economy at the given time.

Deposits made into a savings account are not for a specified fixed period of time for the purpose of interest. Interest is paid on the money kept in the savings account but the interest is lower than the interest on money kept in the fixed deposit account. Withdrawal can be made from savings account at any time but not more than four times in a month in order to earn the required interest. To save money in a savings account, a customer has to fill in the savings form and complete a withdrawal form to withdraw money from the account. 


Fixed Deposit Account

A fixed deposit account in which money is kept for a specified period, say, six months, one year, or more, before a customer can withdraw it. Ifa customer wishes to withdraw money before the stated period, he has to give sufficient notice to his bank. 


Bank Statement 

The following details usually appear in the statement of account or bank statement:

(i) Name of the customer.

(ii) Account Number.

(iii) Payment or Deposit made to the bank within the stated period.

(iv) Withdrawal effected within the same period.

(v) Bank charges for its services.

(vi) Balance for the stated period.

(vii) The address of the customer

(vii) Interest on deposit.

(ix) VAT and other types of taxes or commissions deducted.


Other Banking Services 


An overdraft is the amount of money which a commercial bank allows a customer to withdraw over and above the amount he has inhis current account.

An overdraft does not always need a guarantor, surety or security. A good and well-kept current account by a customer will enable the bank grant an overdraft.



A loan is a fixed sum of money which a customer borrows from a commercial bank.

A bank loan requires sureties, guarantors or some security.

Traveller’s cheque

A Traveller’s cheque is a document issued by banks on payment of local currency and which is acceptable international currency.

When a Nigerian commercial bank issues the cheque to Travellers in exchange for the amount paid in Naira, it charges a commission for the service.



E-Banking is an electronic banking system which enables banks to provide banking services to customers that are less tension filled. With e-banking services, a customer can withdraw money from his account at any branch of his bank in Nigeria. Anyone can also deposit money into the same account at any branch of the bank. 


Essentially Electronic-Banking has provided the following facilities:

(i)    An opportunity for a customer to deposit money into his account at any branch of his bank.

(ii)Similarly, withdrawal of money can also be done at any branch. 

(iii) A customer can make an online check of his account balance and can equally transfer money from one account to the other.

(iv)A customer can use Automated Teller Machine (ATM) to withdraw cash from his account on any day and at any time of the day.

(v) There is a reduction of time in clearinghouse at inter-bank clearing houses.

(vi) Businessmen no longer have to carry cash about when going on business trip.

(v) They only need to deposit the money in the bank and at the completion of their purchases, they go to the bank to withdraw money and make payments for the wares purchased.


There are many other facilities associated with e-banking (Automated Telemechanic ATM)

This is a computerized self-service device which enables the holder of a debit card and Personal Identification Number (PIN) to withdraw cash from his account and access other banking services. A holder of an ATM can use it to perform the following banking activities:

(i) Make fund transfer into or out of his account.

(ii) Check his account balances.

(iii) Make cash withdrawal from his account.

(iv) Print out mini bank statement of his transactions.

(v) Make payment of his bills.






The topic is presented step by step


Step 1:

The class teacher revises the previous topics


Step 2.

He introduces the new topic


Step 3:

The class teacher allows the pupils to give their own examples and he corrects them when the needs arise




  1. say the meaning of banks
  2. mention types of banks
  3. give examples of commercial banks in Nigeria
  4. write out the functions of commercial banks in Nigeria
  5. define cheque
  6. list the reasons for making banks dishonour cheques
  7. What is an overdraft
  8. Define market.
  9. Mention and explain types of market.
  10. List classification of operation in the commodity market.
  11. What are the methods of buying and selling?
  12. What is the full meaning of ATM
  13. What is trade?
  14. List three importance of trade.
  15. Explain in writing why home trade is important.




The class teacher wraps up or concludes the lesson by giving out a short note to summarize the topic that he or she has just taught.

The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.

He or she makes the necessary corrections when and where the needs arise.