The main purpose of conducting this research is to ex ray the effect of dividend  announcement on security prices in order to determine whether the Nigeria capital market is efficient and at what form of its efficiency. Many searchers have attempted to determine the efficiency  from of Nigeria capital market. Empirical results observed from their research has tended to suggest that the efficiency  from of Nigeria capital market is weak and others, in the semi- strong form. However very jew have attempted to analyze the  effect of dividend announcement do have impact on stock priles. This observation to the best of my knowledge have not been reasonable or scientifically studied in Nigeria.

Considering the jact that Nigeria capital market. Is under development assessing relevant information was discover pain staking there were no easy reliable published data on divided  announcement as it is prevent in other advanced economic like USA limited period of time and unavailability of appropriate research facilities contribute  their quota as hindrance to this research work.

But base on the jew available relevant data, decision was made to address this research work on a small sample size and upon securities on the first tier market so that to give dividend announcement in information starting from the ones previously announced. This  information will affect the stock prices spontaneously. And at the  this research will equally lends credence to the observation that Nigeria capital market is efficient in the semi strong form.


Chapter 1:      Introduction

1.1              Background of the Problem

1.2              Statement of the Problem

1.3              Objectives of the Research

1.4              Research Questions

1.5              Statement of Hypothesis

1.6              Scope  of the study and Its Delimitation

1.7              Organization of the Report

Chapter 2:      Literature Review

2.1              Evolution of the Nigeria Capital Market.

2.2              Major Participation’s in the Nigerian Capital Market

2.2.1        The Central Bank of Nigeria

2.2.2        Development Finance Institutions

2.2.3        Issuing Houses

2.2.4        Stockbroking firms

2.2.5        Securities and Exchange Commission

2.2.6        Stock Exchange

2.2.7        Share Registrars

2.2.8        Commercial Banks

2.2.9        Insurance companies and Pensims / Provident funds

2.3              Dividend

2.3.1        Forms of Dividend

2.3.2        Factors influencing Dividend Policy

2.3.3        Stability of Dividend

2.3.4        Relationship between Dividend and Share prices

2.3.5        Information content of Dividends

2.3.6        Random Walk Theory of Share Price Movements

2.3.7        Random Walk and an Efficient Stock Market

2.3.8        Varying Degrees Efficiency

2.3.9        Week form Tests or Weak form of Efficiency

2.3.10    Semi-strong form Tests and semi-strong Efficiency

2.3.11    Strong form Tests and Strong Form Efficiency

2.3.12    Implications of Efficient Market Hypothesis

2.3.13    Empirical Studies of Capital Market Efficiency in Nigeria

2.3.14    Dividend Announcement and Capital Market Efficiency.

Chapter 3:       Research Methodology

3.1              research Design

3.2              Sources of Primary & Secondary Data

3.3              Population & Sample

3.4              Data Collection Techniques

3.5              Data Analysis Technique

3.6              Hypothesis Test Statistic

3.7              Limitation of Research Methodology

Chapter 4:       Analysis and Presentation of Data.

4.1              Presentation of Primary Data

4.2              Analysis and Presentation of Data According to Research Questions

4.3              Analysis and Presentation of Data According to hypothesis.

Chapter 5

5.1              Summary of Findings

5.2              Conclusion

5.3              Recommendation

5.4              Suggested Research Work




The desire of every national producer is to minimize the resource invested to achieve a desired objective thus at any point in time he should be devising ways of minimizing the  cost of achieving the desired benefit.

This situation is equally relevant to organization of any kind whether profit oriented on nonprofit oriented and therefore make it imperative for every organization especially the profit oriented ones not to stop at controlling the use of resources to conform with established standards but should also  make spirited attempts to continuously minimize cost without impairing the quality of  their  products. The need for manufacturing companies to be conscious of the above need has been magnified by the fact that Nigeria economy is experiencing an era of astonishing rate of inflation despicable how exchange rate requiring reports of grossly low capity utilization and the inter play of some other very powerful extraneous variable which makes the business environment very inclement. These are the cries of mangers. Sectioning through the streets of industry and commerce saying Nigeria is passing through a difficult period, everything possible must be done to every one  in position to do so , to assist the economy in making a quick recovery. One way of heading these glariot calls    by mergers off companies is the adoption of cost minimization strategy aimed at improving efficiency.


            Some companies embark on cost minimization strategies with full awareness of the benefit obtainable therefrom and therefore give a strong recognition and  support to such strategies. They strive ass much as  possible to carryout  their operations or project at the minimal costs. Therefor we they adopt and implement several strategies or techniques of  minimizing or reducing their cost of operation and or production.  This study will endeavor to find solution to the enumerated problem below as well as others.

(1)               Does LBN minimize cost of production or operation

(2)               How are cost minimization effected?

(3)               What  are the strategies or techniques used for cost minimization?

(4)               Is cost minimization a viable means of enhancing the performance  of manufacturing firm?

(5)               What are the problem encountered in minimizing cost and ways  minimizing  the impact of such problem or possible prevent them.

(6)               How effective are the strategies adopted

1.2              RESEARCH QUESTION

To accomplish the objective enumerated above answers are hopefully going to be provide to the following question.

(i)                 Does LBN has know cost minimization strategies  apart from the generally accepted cost minimization techniques?

(ii)               Does the level of employees motivation related to the effectiveness of cost minimization strategy?

(iii)             Are the strategies effective?

(iv)             What are the problem associated with cost minimization implementations?

(v)               What measures do they adopt to reduce the impact of the problem identified (iv) above?

(vi)             What other alternative measure do they adopt?


In order to made conclusion and recommendation the following hypothesis will be tested.

(i)                 There is no significant difference in material costs before and after embarking on cost minimization stately.

(ii)               There is no significant difference in labour cost before and after embarking on cost minimization strategy.

(iii)             There is no significant difference in overhead cost before and after embarking on cost minimization strategy.

1.4              STATEMENT OF PURPOSE

It is a know fact that there are many cost minimization strategies available for adoption by firm and industries. Over the years authorities on costing matters have published dissertation on means and ways of minimizing cost of production or sand operation in manufacturing industries. Theses have  subsequently been recognized by the management of the various enterprise. But the question is how many of these firm put these strategies and techniques into practice?

This study therefore will evaluate some of the existing cost minimization strategies and techniques (if any) as at effects the lever brothers Nigeria (LBN) Plc, the extent of their implementation how effective they are whether they are achieving the goals for which they are adopted as well as analysis their cost benefit to justify their acceance an important and veritable cost monition  tools.


The finding are recommendation of this study will, no doubt be of immense importance to the management of lever brothers Nigeria (LBN) Plc and will equally go long way to guiding similar firms in the manufacturing industries on the proper cost minimization strategies they should adopt that will be appropriate their daily activities, new mangers and prospective mangers should equally be acquainted with not just the cost  minimization strategies already familiar with but also  one suggested by more experienced mangers which may not be found in textbook.

1.6              SCOPE AND LIMIATION

For the purpose of this study emphasis will be solely placed on level brother Nigeria (LBN) Plc this is influenced by the fact that LBN is the  longest surviving manufacturing grants in Nigeria having been operation since 1923.

It was a general consensus that it was against management policy to give out internal document to any outsider for  any reason unless under special circumstances. Therefore, the analysis will be made based on the questionnaire result fact gathered during interview and discussions as well as personnel observation made during the work.

Finally we are equally limited financially such that we may not cover major network (4) manufacturing sites for its operation spread across the country (Nigeria) we will therefore be concentrate its manufacturing sites at Aba Abia state and the commercial lactation at port Harcourt River state.


Lever brothers Nigeria Plc (Rc 113) is the longest surviving manufacturing outfit in Nigeria. The company was incorporated as a private company in 1923 to manufacturing soaps based on local palm oil. Over the years the company diversifies and expandedits operation to the production and marketing of personal wash  product mainly toilet soaps, non soapy detergents foods and personal predicts including toothpaste, body creams lotion body care hair product. In particular and through selective acquisition the  company has strengthened its froth in foods and personal products through its merger with Lipton Nigeria  Limited in 1988 and lately in 1995 through a merger with unilever Nigeria Limited which a merger with unlived Nigeria Limited which effectively transferred to LBN the stewards business following the recent acquisition of seaward and in order to ensure sustained focus in management the company now has four manufacturing sites for its operations from the original sites viz, Apapa , the primes  and largest site, produces soaps such as sunlight they , Oxbare Luk, Breeze, ife  buoy, and Astral and some personal product mainly tooth past and Vaseline range. The second site Abia is devoted to the production of non- soapy detergent powders and bars. Here, the company makes such popular bran as omo Rin, and ox powder. The third and of the plants. Commission in 1983 is the utra modern foods factory in Agbare where the company production  Royco , Blue Band, plant, lree, lop and Beaden, among others and of course the fourth the organ site where popular personal products  brands like elide, pears, and lotus etc. are produced. It is intended that the company shall consolidate all the personal products production including tooth. Paste, ponds and Vaseline range at this site ultimately,

 The company is fully committed to backward integration and self sufficiency and has made considerable progess in its effort towards local souring sad development of raw materials, the tea plantation on the man bill plateau underscores the company unrelenting derive for self sufficiency . the first crop of the end of 1991 and processing factory for the tea leaves has been COMPLETED ON SIT. THE COMPANY HAS ALSO BUTT AT LARGE PLAM KARNEL WILL AT ITS Aba factory  to improve supply vegetable oil essential raw material in soap and edible production. It is also making investment in oil plam plantation in order to improve its local sourcing. Lever brothers Nigeria plc rang of quality products is distributed sad sold at uniform prices all over the country through an established and tested distribution network using appointed distributors, supervised by a well trained sales forces.

The company has direct staff strength of about 2,250 employees in its four manufacturing sites and various distribution points throughout the country of this numbers only five are expatriates. These reflect the extents to which the company has gone at training  and developing management resources? the objective is  to bring in expertrvites who willing and able to work in Nigeria and who will contribute help and train Nigerians. They (expatriate) give LBN and international favour and are in exchange for the company mangers working overseas to obtain international experience. Expatriates are therefore brought into meet the company specific needs. The company also provides indirect employment for over six thousand people.

Lever brothers Nigeria Plc has been decanted to the production of top quality brands for Nigeria for over seventy years


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