MAPPING THE SPATIAL DISTRIBUTION OF FINANCIAL INSTITUTIONS IN

JIMETA METROPOLIES

KEKEMA, Mohammed B

SVG/17D/1939

DECEMBER, 2022
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 MAPPING THE SPATIAL DISTRIBUTION OF FINANCIAL INSTITUTIONS IN
JIMETA METROPOLIES

By

KEKEMA, Mohammed B

SVG/17D/1939

A PROJECT SUBMITTED TO THE DEPARTMENT OF SURVEYING AND

GEOINFORMATICS, FACULTY OF ENVIRONMENTAL SCIENCES, MODIBBO
ADAMA UNIVERSITY, YOLA IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF BACHELOR OF SCIENCE OF THE
MODIBBO ADAMA UNIVERSITY, YOLA

DECEMBER, 2022

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 DECLARATION

I hereby declare that this research work was written by me and it is a record of my research
work. It has not been presented before in any previous application for a B.Tech degree. All
references cited have been dully acknowledged.

KEKEMA, Mohammed B Date

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 DEDICATION

This research work is dedicated to my beloved parents

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 APPROVAL PAGE

This project sentitled “Mapping the Spatial Distribution of Financial Institutions in Jimeta
Metropolis” meets the regulations governing the award of Bachelor of Technology Degree of
Modibbo Adama University, Yola and is approved for its contribution to knowledge and literary
presentation.

Dr. Muhammed Ibrahim Date

(Supervisor)

(External Examiner) Date

Dr. (Surv.) Takana Abubakr Date

(Head of Department)

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ACKNOWLEDGEMENTS

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 ABSTRACT

The location of financial institutions is a key consideration for customers’ physical

transactions. Customers consider a number of factors such as time, distance from workplace
and residence, cost and convenience, in choosing their banks. Distance to and fro point of
origin to a bank for physical transaction may discourage or encourage a customer in the
selection of bank to opt for. This study therefore adopted Geographic Information System to
map the location of the existing financial institutions and to determine the spatial
distributional pattern of banks in the study area through Average Nearest Neighbour
Analysis. Also Road Weighted Overlay Analysis built in ArcGIS was used to determine the
suitable locations for siting locations of new financial institutions within Yola North Local
Government, Adamawa State. This study therefore revealed that banks are clustered around
commercial and areas while less consideration were given to residential areas. This study
therefore suggest that residential areas should be considered in siting banks and there
should be several meters in - between banks to reduce the rate of bank clustering in a
particular area. Also, more roads should be constructed to allow ease of movement.

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 TABLE OF CONTENTS

COVER PAGE i
TITLE PAGE ii
DECLARATION iii

DEDICATION iv

APPROVAL PAGE v

ACKNOWLEDGEMENTS vi

ABSTRACT vii

LIST OF TABLES x

LIST OF FIGURES xi

CHAPTER ONE: INTRODUCTON 1

1.1 Background of the Study 1

1.2 Statement of the Problem 5

1.3 Aim and Objectives 5

1.4 Significance of the Study 5

1.5 Scope and Limitation of the Study 5

CHAPTER TWO: LITERATURE REVIEW 6

2.1 Basic Concept of Spatial Mapping 6

2.1.1 Environmental Influences on Spatial Mapping 6

2.1.2 Mapping in GIS 7

2.2 Review of Related Literature 8

2.2.1 Locational Convenience of Financial Institutions 10

CHAPTER THREE: METHODOLOGY 11

3.1 Study Area 11

3.2 Data Acquisition 13

3.2.1 Primary Data 13

3.2.2 Secondary Data 14

3.2.3 Instruments 14
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 3.2.3.1 Hardware Equipment’s 14

3.2.3.2 Software (Package) 14

3.4 Methods 14

3.4.1 Reconnaissance 14

3.4.2 Office Planning 14

3.4.3 Field Reconnaissance 14

3.4.4 Field Observation 15

3.4.5 Mapping of Existing Financial Institutions 15

3.4.6 Distribution Pattern and Locational Efficiency of Financial Institutions 15

3.4.6.1 Nearest Neighbour Analysis 15

3.4.6.2 Weighted Overlay Analysis 15

CHAPTER FOUR: RESULT AND DISCUSSIONS 16

4.1 Results 16

4.1.1 Results Description 19

4.2 Discussions of Results 19

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 21

5.1 Summary 21

5.2 Conclusion 21

5.3 Recommendations 22

REFERENCES 23

APENDIX 24

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 LIST OF TABLES

Table 3.1: List of Data 13

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 LIST OF FIGURES

Figure 3.1: Map of the study area 12

Figure 3.2 Flowchart of Methodology 13

Figure 4.1: Street map of the study area showing the existing financial institutions 16

Figure 4.2: Nearest Neighbourhood Analysis 17

Figure 4.3: Suitability Map of Financial Institutions in Yola North Metropolis 18

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 CHAPTER ONE: INTRODUCTON

1.1 Background of the Study

A Geographic Information System (GIS) is a system designed to capture, store, manipulate,

analyze, manage, and present spatial or geographic data. GIS applications are tools that
allow users to create interactive queries (user-created searches), analyze spatial information,
edit data in maps, and present the results of all these operations. GIS (more commonly
GIScience) sometimes refers to geographic information science (GIScience), the science
underlying geographic concepts, applications, and systems. Since the mid-1980s,
geographic information systems have become valuable tool used to support a variety of city
and regional planning functions (Bassey, 2003).

GIS can refer to a number of different technologies, processes, techniques and methods. It
is attached to many operations and has many applications related to engineering, planning,
management, transport/logistics, insurance, telecommunications, and business. For that
reason, GIS and location intelligence applications can be the foundation for many location-
enabled services that rely on analysis and visualization (Bassey, 2003).

GIS can relate unrelated information by using location as the key index variable. Locations
or extents in the Earth space–time may be recorded as dates/times of occurrence, and x, y,
and z coordinates representing, longitude, latitude, and elevation, respectively. All Earth-
based spatial–temporal location and extent references should be relatable to one another and
ultimately to a "real" physical location or extent. This key characteristic of GIS has begun
to open new avenues of scientific inquiry (Bassey, 2003).

Geographic Information System (GIS) is a computer system build to capture, store,

manipulate, analyze, manage and display all kinds of spatial or geographical data. GIS
application are tools that allow end users to perform spatial query, analysis, edit spatial data
and create hard copy maps. In simple way GIS can be define as an image that is referenced
to the earth or has x and y coordinate and it’s attribute values are stored in the table. These x
and y coordinates are based on different projection system and there are various types of
projection system. Most of the time GIS is used to create maps and to print. To perform the
basic task in GIS, layers are combined, edited and designed (Adetoro, 2007).

GIS can be used to solve the location based question such as “What is located here” or
Where to find particular features? GIS User can retrieve the value from the map, such as
how much is the forest area on the land use map. This is done using the query builder tool.

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Next important features of the GIS is the capability to combine different layers to show new
information. For example, you can combine elevation data, river data, land use data and
many more to show information about the landscape of the area. From map you can tell
where high lands is or where is the best place to build house, which has the river view. GIS
helps to find new information (Adetoro, 2007).

Spatial describes how objects fit together in space, either among the planets or down here
on earth. There's a spatial relationship between Mars and Venus, as well as between the rose
bushes in the backyard (Adetoro, 2007).

Spatial has to do with the distance between things, so mathematicians and computer
scientists love using the word. "They measured the spatial relations of ping-pong balls in
the gravity-free room." It can also refer to how people perceive the objects in front of them.
If you're not wearing your glasses, your spatial perception might be off. If you're a space
cadet, you might wander off into space. Not surprisingly, spatial is from the Latin word
spatium for "space" (Adetoro, 2007).

Distribution is the action of sharing something out among a number of recipients. the way
in which something is shared out among a group or spread over an area. "changes
undergone by the area have affected the distribution of its wildlife, Social aminities,
Schools, Hospitals etc". There are three types of distribution in this case namely;

A. Uniform distribution
B. Clustered distribution
C. Random distribution

Uniform distribution: -This is a type of distribution in which the aspect or object is said
to be distributed uniformly from each other and same distance same portion at a regular
interval or based on region population.

Clustered distribution: - This is an distribution in which the aspect or objects are said to
be distributed closed around each other at either regular or irregular interval.

Random distribution: - This is type of distribution in which the aspect or objects are said
to be distributed randomly at irregular interval around region or area based on the
infrastructural population’s pattern of the region.

A spatial distribution is the arrangement of a phenomenon across the Earth's surface and a
graphical display of such an arrangement is an important tool in geographical and

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environmental statistics. A graphical display of a spatial distribution may summarize raw
data directly or may reflect the outcome of more sophisticated data analysis. Many different
aspects of a phenomenon can be shown in a single graphical display by using a suitable
choice of different colors to represent differences. One example of such a display could be
observations made to describe the geographic patterns of features, both physical and human
across the earth (Bassey, 2003).

Surveying or land surveying is the technique, profession, art and science of determining the
terrestrial or three-dimensional positions of points and the distances and angles between
them. A land surveying professional is called a land surveyor. These points are usually on
the surface of the Earth, and they are often used to establish maps and boundaries for
ownership, locations, such as building corners or the surface location of subsurface features,
or other purposes required by government or civil law, such as property sales. Surveyors
work with elements of geometry, trigonometry, regression analysis, physics, engineering,
metrology, programming languages, and the law. They use equipment, such as total
stations, robotic total stations, theodolites, GNSS receivers, retroreflectors, 3D scanners ,
radios, clinometer, handheld tablets, digital levels, subsurface locators, drones, GIS , and
surveying software (Bassey, 2003).

But in the case of this project Geographical information system was been chosen to carry
out

GIS can refer to a number of different technologies, processes, techniques and methods. It
is attached to many operations and has many applications related to engineering, planning,
management, transport/logistics, insurance, telecommunications, and business. For that
reason, GIS and location intelligence applications can be the foundation for many location-
enabled services that rely on analysis and visualization.

GIS can relate unrelated information by using location as the key index variable. Locations
or extents in the Earth space–time may be recorded as dates/times of occurrence, and x, y,
and z coordinates representing, longitude, latitude, and elevation, respectively. All Earth-
based spatial–temporal location and extent references should be relatable to one another and
ultimately to a "real" physical location or extent (Bassey, 2003).

In recent years, banking industry has been undergoing drastic changes, reflecting a number
of underlying developments. Significant advancements in communication and information
technology accelerated and broadened the dissemination of financial information and

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services. The financial institutions landscape in Jimeta Urban Area is faced with lots of
problems. These include; finding new bank branch locations, lack of branch performance
monitoring tools, lack of customer and competitor analysis tools, lack of asset monitoring
and management et al. GIS technology is a tool that could aid in solving of the
aforementioned problems. This is to account for the financial institutions landscape in
relation to distribution and patterns. The outputs could be produced visually in form of
special (thematic) maps (Eze, 2010; Ayeni, 2006).

Financial institution is the institution which collects funds from public and places them in
financial assets, such as deposits, loans, and bonds, rather than tangible property or any
organization in the business of moving, investing or lending money, dealing in financial
instruments, or providing financial services. This includes commercial banks, thrifts, federal
and state savings banks, saving and loan associations, and credit unions.

Financial institutions worldwide are established to promote and enhance business

operations of individuals and groups or promoting savings or even perform both roles
(Abubakar et al., 2015). Financial institution is the institution which collects funds from
public and places them in financial assets, such as deposits, loans, and bonds, rather than
tangible property or any organization in the business of moving, investing or lending
money, dealing in financial instruments, or providing financial services. This includes
commercial banks, thrifts, federal and state savings banks, saving and loan associations, and
credit unions (Adeboboye et al., 2012).

Geographic Information System (GIS) is a complete computer system that links information
about where things are located with information about what particular data represents. A
GIS map can combine many layers of information into a single theme (Ojiako and Igbokwe,
2004). In the digital product (map) of GIS, features are represented using dots or points for
cities, lines for roads and areas for lakes. GIS can be used in banking sector for location of
new branches and continuous functioning of the institution. Therefore, this study focuses on
financial institutions spatial distributions and the potentials of GIS in financial institution
mapping. Presented here are the results of a study carried out to determine the spatial
distribution of banks in Jimeta.

Geographic Information System (GIS) is widely used and very helpful tool for decision
making. In particular, if it involves making a decision related to “location”, it requires GIS.

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GIS makes locational analysis very easy. It makes the analysis simple and precise if the
inputs are correct (Khan, 2013). Using GIS in the arena of finance can be very supportive
and cost effective to facilitate location based decisions for financial institutions.

1.2 Statement of the Problem

In a developing urban environment like Jimeta, locations of financial institutions are vital in
meeting the high financial transaction needs of the populace. Jimeta usually experience
above average increases in traffic congestion over time, therefore, there should be an above
average increases in the number of financial institutions. In addition, there are site-specific
factors such as traffic patterns, parking availability, route access, and visibility that are
considered by decision-makers as factors that are critical to the success of financial
institution. It therefore becomes imperative to use GIS technology as a tool that could aid in
solving of the aforementioned problems, by mapping the location of financial institution
and propose new locations that could aid smooth operation of financial institution within
Jimeta. This is also to account for the financial institutions landscape in relation to
distribution and patterns.

1.3 Aim and Objectives

The aim of this study is to analyze and map the location of financial institutions in Jimeta-
Yola North Local Government with a view to aid planning and decision making. The aim
will be achieved through the following objectives:
i. To identify and map all financial institution in the study area
ii. To determine the distributional pattern and locational efficiency of the financial
institutions.
iii. To propose new location for financial institution

1.4 Significance of the Study

This study seeks to assist the relevant development authorities in carrying out the
necessary actions on the status of the already existing financial institutions in as well as
verify with ease the locations of the financial institutions to be proposed. This will thus
serve as guide for individuals, developers, the government and other stakeholders in the
financial sector for further research and decision making.

1.5 Scope and Limitation of the Study

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 This study will cover examination of the spatial distribution of financial institution in
Jimeta. The pattern of Distribution and the location of financial institution will be determined
by the study. The Data will be collected during the month of January, 2022, thus the analysis
will be restricted to the financial institutions existing at the time of this study. However not
all the physical planning standards will be examined due to resource and other constraints
such as time

CHAPTER TWO: LITERATURE REVIEW

2.1 Basic Concept of Spatial Mapping

One of the most crucial cognitive abilities of any navigating individual is to form a mental
map of its surrounding environment and to figure out how to get from one place to another.
Everyday excursions, such as hunting and foraging, can take an individual on a complex
path away from home, along which one can easily become disoriented and lost. An
external, world-based representation of the environment provides the navigator with the
capacity to not only compute one’s own location in space but also plan multiple possible
routes to one’s destination. Such ability is highly adaptive for the behavioral flexibility it
provides, as goals and paths that are subject to change for a variety of reasons. While it has
been argued for many decades that we (and other animals) do indeed possess such
allocentric representations (Tolman 1948), the precise nature of such spatial computations
and their neural underpinnings have only come into light more recently.

2.1.1 Environmental Influences on Spatial Mapping

An important characteristic of our spatial mapping ability is that it relies heavily on

calculations of geometric relationships defined by the large-scale structure of the
environment (Gallistel 1990). For instance, a disoriented child is able to use distance
relationships according to the walls of a room to reliably find her way to a goal location,
while being unable to use those same geometric properties when provided by an array of
freestanding objects or 2D lines. Objects and surface markings such as colors and texture
are used effectively as beacons, or direct cues to location, but evidence suggests that
relative spatial locations are mapped primarily with respect to extended 3D structures (e.g.,
boundaries). This pattern emerges early development and persists until middle childhood,
when performance changes with the acquisition of abstract representations of space. It is
shared by nonhuman animals, including birds and fish, and proposed to serve as one of the
core components of Euclidean geometric concepts in humans (Spelke and Lee 2012). Why

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might children have a representation of space that is more attuned to particular properties of
the environment over others? There are several possible reasons that could explain the
primacy of extended surfaces in spatial encoding. One advantage to representing the 3D
structure of the environment is that unlike natural objects and their featural properties (e.g.,
color, texture, odors), the geometric shape of the terrain is a stable, reliable source of
information that does not change significantly throughout the year. Another advantage is
that large, extended structures are easier and faster to process globally and does not take up
a lot of attentional or perceptual resources. A third possibility is that because the sensory
system is inundated with spatial information, it is much more computationally efficient to
organize the input into large-scale 3D layouts and to encode locations with respect to those
layouts, rather than to process all of the information (e.g., as in a pixelby-pixel visual-
matching strategy).

2.1.2 Mapping in GIS

There have been so many ways to define GIS. An earlier definition of GIS is "a special case
of information systems where the database consists of observations on spatially distributed
features, activities, or events, which are definable in space as points, lines or areas. A GIS
manipulates data about these points, lines, and areas to retrieve data for in particular queries
and analyses" (Dueker, 1979). GIS provides acuminous insight of financial services
business to know customers’ purchasing habits and demands, so that it fixes on the target
customers, the target market and the distribution of advertising resources, afterward
provides customers with value-added products and services.

Geographic models integrate with banking models can offer tangible benefits to the banking
sector. Adding spatial locations to bank’s customer database via geographical tools can
obtain answers to compete effectively. Thus GIS is becoming a critical tool in today’s
banking environment (Fu, 2007). The importance of location cannot be ignored as argued:
"You can be the best retailer in the world, but if you set up your shop in the wrong place,
you will never do much business. If you operate from the wrong properties, you start with
your hands tied behind your back?-you should always go where your customer is" By
George Davies (Davies, 1991).

GIS can help to understand how a potential new branch should be performed. Much
information for bank seeking location are needed, for example land costs, building
availability and suitability, construction costs, local and state taxes, local and state

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development incentives, availability and cost of energy, transportation costs to customers,
the location and market areas of competitors, and the availability of other infrastructure
such as telecommunications, sewer, and water, even the quality of life (Jafrullah, et al.
2003). Using GIS, this various information can be identified and integrated easily. In
addition, this information can also be displayed in map formats to demonstrate that the sites
meet specified criteria.

According to Thulasi (2007), banks should take into account different spatial components to
establish a new bank branch, for example :

i. Land value, or socio-economic condition to make a general idea of the area for
establishing branch.
ii. The commercial land use of the area.
iii. Locations of the residential area and business area.
iv. The road network.

Banks can analyze the performance by using GIS. Spatial components can offer greater
advantages for monitoring the branches performance. The spatial distribution of the
customers can help bank to draw potential customer zones. GIS may help banks to monitor
branches in defining a trade area around the branch, measuring the market potential within
the trade area, and finding out the nearby competitors (Jafrullah, et al., 2003).

One of the major services in banking system is to provide loan service to the customers,
especially in real estate loan. Banks have to take into account credit risks for making
decision regarding if they provide real estate loan to the customers or not. Banks make
sanction of loans by evaluating the value of the land, plot, or house. In doing this activity,
banks have to analyze the property or plot like current land valuation, the size of the house
and so on (Fu, 2007). After providing a loan, it is better if bank can locate the account
holders or loan takers in order to offer other services in the future. Bank is now spending a
lot of money on this task (DelFin Analytics, 2005). GIS can make this job easily by
profiling and finding customers. Banks need to produce a list of account holders or loan
takers, and each in the list should have an address. Here GIS play a role for assigning a
spatial identifier to each account holder or loan takers record such as a postal code, address
or census tract and so on, then account holders or loan takers can be identified in the map.
Also GIS can help to calculate the distance and present the route from bank or branch to the

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client’s address. This process is known as geo-coding. But for this, the database has to be
updated regularly (Fu, 2007).

2.2 Review of Related Literature

Abubaka et al., (2015) observed that an analysis of Data on location of microfinance banks
in Nigeria which was collected from the Central Bank of Nigeria (CBN) and that of poverty
from the National Bureau of Statistics (NBS). These were analysed using Geographical
Information System (GIS) operations based on regions and states with the aid of ArcGIS 10
vector based software. Additionally, correlation statistics was used to relate absolute
poverty at the geopolitical and state levels with number of microfinance banks located at the
spatial scales. Results indicated a clustering of microfinance banks in the southwest
geopolitical region such that the ratio of population to bank was least in the southwest and
highest in the northeast. At the state level, Lagos, Ogun, Anambra and FCT had the heaviest
concentration of microfinance banks with a ratio of 30,570 – 79,811 persons per bank while
Borno, Yobe, Kano and Katsina had the least concentration with a ratio of 925,670 –
2,321,339 persons per bank. The concentration of these banks at the geopolitical and state
levels showed an inverse relationship with absolute poverty situation (r = -0.85 at regional
and r = - 0.38 at state level) signifying strong relationship between these banks and poverty.
It was recommended that communities and wealthy individuals especially in the northern
states need to be targeted while ethical products as interest free deposits and loans could be
floated by microfinance banks to satisfy community needs.

Furthermore, Adeboboye et al. (2012) in their study a GIS approach to management of

financial institutions spatial distribution and location in Awka, Anambra sSate, Nigeria
which involved acquisition and digitizing of existing maps, points picking of financial
institutions within the study area using GPS and demonstrating, through various analyses,
the capabilities of GIS in management of financial institutions spatial distribution. In the
approach, primary and secondary data of the area were acquired. The acquired data were
processed and modeled using ArcGIS 9.2. The analytical tools of ArcGIS 9.2 package were
used to analyze and the thematic map of the study area showing the distribution of banks.
The main product generated is the digital map of Awka, on which further analysis was
based. It was recommended that digital map of the study area be made available to form the
basis of future decisions for efficient business and social development.

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Balogun, and Ogbeide (2020) opined that Marketing planning and business development
analysis relied on understanding and mental images of the geographic space acquired by
constant commuting of the market space. This is ineffective as various stakeholders
involved in banking businesses do have varying degree of understanding of the geographic
space. In their research they explore the use of geospatial technology as a valuable tool to
carry out an assessment of banking business activities and operation in Benin City. The
study adopted the 34 political wards; GPS coordinates locations of 107 bank branches and
1759 business outlets locations, structured questionnaires and High resolution satellite
image in a GIS environment to accomplish the objective of the paper. Buffering, overlay
and hotspot operations were carried out to determine areas that are over-served, under-
served areas and optimized areas. The study reveals that banks management tends to locate
close to market centres with high economic activities and high traffic of pedestrians. In
terms of centrality, the first 3km from City centre have 62% of bank branches while the last
two concentric zones have no bank branch.

2.2.1 Locational Convenience of Financial Institutions

Location convenience is an important factor when customers select a financial institution.

To stay competitive, banks usually attempt to increase convenience (be as close as possible
to customers) by expanding their branch. Using GIS in the arena of finance can be very
supportive and cost effective to facilitate location based decisions for financial institutions.
For business expansion planning, banks need location-relevant data, and cost effective site
analysis to select a new bank branch or automatic machine location confidently and reliably
in a shorten-time cycle. When banks plan to open new branches, they need to consider the
data such as the concentration of commercial areas, traffic patterns, workplaces or living
places of customers whose demographics and purchase behavior match banks’ target
customer profiles (Sadat and Nurshad, 2018). In their research, GIS-based approach has
been developed to identify suitable location for an automatic machine network in
Perspective of Bangladesh. The newly established banks those have not set up automatic
machine network yet or have very small scale automatic machine services network can
expand their banking services through acquiring partners from existing automatic machine
network of other Banks and simultaneously can construct new automatic machine in the
most suitable unserved areas. This is how these banks can expand their network more
rapidly with a less establishment cost. Also banks, those have large network with some
unserved areas, can expand their existing network by reaching to the customers’

10
convenience locations. The paper recommends that the analysis using GIS to find most
suitable locations for automatic machine is better applicable for other cities and towns.

CHAPTER THREE: METHODOLOGY

3.1 Study Area

The study area, Jimeta, is located between latitude 9010‟ N to 9015‟N and longitudes 120
11‟ E to 120 17‟E. Jimeta, a twin city to Yola town, is the seat of Yola North local
Government Headquarters and the Adamawa State capital of Nigeria (see fig. 1.1 below).

Like any other Nigerian city, Jimeta comprises of so many land use types ranging from
institutional, commercial, and residential. The city is clearly stratified in terms of
population densities. These are low, medium and high density areas. The low density areas
are well planned units where government officials reside while medium and high density
areas are made up of common people with little or unplanned buildings (Orisakwe and
Bakari, 2013).

In recent times, Jimeta has risen as the premier commercial, industrial and transportation
urban area of the north-eastern Nigeria. The rapid growth of Jimeta, particularly within the
past 30 years, has made it one of the fastest growing metropolitan areas in Nigeria. The
population of Jimeta was 73,080 as of 1991, the population increased significantly by 69%
between 1973 and 1991 and 58% between 1991 and 2006 (NPC 2006).

The current city jurisdiction came into effect in 1996 as a result of the creation of Yola
North Local government Area with eleven Political wards. These wards are Yelwa,
Limawa, Ajiya, Alkalawa, Gwadabawa, Lugere, Demsawo, Jambutu, Nasarawo, Doubeli,

11
and Karewa. It was discovered that Jimeta started growing faster as an urban centre from
the middle of 1970s when Yola was made the headquarters of the defunct Gongola State in
1976. Even TS02A - Administration in though Yola has been the nominal headquarters of
Gongola and later Adamawa State, but virtually all the government offices and other
official buildings are found in Jimeta. That is to say the actual seat of Adamawa State is in
Jimeta (Orisakwe and Bakari, 2013).

The city expanded from 33, 133 hectares in 1986 to 51,578 hectares in 2008 (Zemba et al,
2010). Most of the new developments took place in the suburbs as organized clusters for
accommodating especially residential expansions, academic institutions, emerging
settlements, warehouses, or external transportation facilities, in addition to rapid
developments on the outskirts of the old city core. Karewa and parts of Gwadabawa were
designated as GRA in the 1980s. This led to massive construction of offices and
government quarters in these areas. New residential buildings quickly swelled up to reach
these areas. By this time, new developments were mostly directed to the suburbs in order to
contain the growth of the inner city (Orisakwe and Bakari, 2013).

Jimeta, being a state capital, it is a major transport hub with buses and taxis heading north
to Mubi and Maiduguri, West to Numan, Gombe and Bauchi and South to Makurdi and
Katsina.

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Figure 3.1 : Map of the Study area

Satellite Imagery

Georeferencing

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 NNA Weighted Overlay

Suitable Locations for Financial

Institutions in Jimeta Metropolis

Figure 3.1: Flowchart of Methodology

3.2 Data Acquisition

S/N Data Source Year Resolutio Relevance

n

1 Satellite Google Earth 2021 15m To extract the land

Imagery use map of Jimeta
2022

2 Coordinates Field survey 2021 - For mapping

of financial purpose
Institution

3.2.1 Primary Data

The main field work entails the acquired primary datasets of object(s) of interest, such as,
coordinate position of sites of interest - using GPS (Handheld) where possible e.g. financial
institutions and others. Attribute data (non-spatial description information) of such sites of
interests – sourced from published/unpublished records kept by statutory bodies and
organizations.

3.2.2 Secondary Data

The acquisition of secondary datasets needed were done which entails the digitization of
available map data such as: Administrative map of Adamawa State showing Local

14
Government Area (LGA) boundaries and Yola North LGA map showing road network and
constituent districts.

3.2.3 Instruments

For the successful execution of this project, the following instruments were used.

3.2.3.1 Hardware Equipment’s

i. A computer system
ii. A GPS Receiver

3.2.3.2 Software (Package)

i. Microsoft Office (2010)

3.4 Methods

The data obtained (i.e. XYZ from handheld GPS) were processed in ArcGIS 10.3 to
produce the existing map of financial institutions in the study area, obtain the distributional
pattern of financial institutions through Nearest Neighborhood Analyses.

3.4.1 Reconnaissance

During the project, office reconnaissance, field reconnaissance, was carried out in order to
achieve, the objective of the project. The materials used to carry out this project are mainly
computer instruments. These are the materials that are digital in nature. This help in no
small measure in the automation of the project.

3.4.2 Office Planning

The total number of financial institutions within the study area were consulted and that
served as a based list for this project.

3.4.3 Field Reconnaissance

This aspect deals with visiting the site to ensure the selection and marking of the financial
institutions location. This was carried out at the project site and got familiar with the site,
and possible challenges to be encountered in the actual survey were outlined during this
stage of the study.

3.4.4 Field Observation

The GPS was switched on using the power button (key) which was pressed and hold for
about 3 seconds, then the menu page appeared and the GPS acquired satellites. When

15
sufficient signals have been acquired, the coordinate of each financial institution, were
captured.

3.4.5 Mapping of Existing Financial Institutions

This was achieved through the use of a handheld GPS receiver (GARMIN 78SC) for
obtaining the geographic coordinates of the existing financial institutions in Jimeta. These
data (point locations) were used to produce digital maps of financial institutions. These point
locations were overlaid and presented on a downloaded, georeferenced, and digitized base
map of the study area as a financial institutions map using ArcGIS 10.3 software.

3.4.6 Distribution Pattern and Locational Efficiency of Financial Institutions

3.4.6.1 Nearest Neighbour Analysis

This was achieved by analyzing the spatial distribution of the point locations of financial
institutions presented on the base map of the study area. Here, Nearest Neighbourhood
Analysis (NNA) was employed to examine the distribution pattern of financial institutions.
The NNA uses the distance between each point and its closest neighboring point to
determine if point pattern is clustered, random or dispersed. The result will be generated
from the NNA analysis to be carried out using ArcGIS 10.3 software. Which gives clustered
points when the Nearest Neighborhood Index (NNI) is tending towards 0, random when it is
closer or equal to 1.0 and regular when the result is closer or equal to 2.15 (Sherwood,
1970).

3.4.6.2 Weighted Overlay Analysis

The Weighted Overlay tool applies one of the most used approaches for overlay analysis to
solve multicriteria problems such as site selection and suitability models. In a weighted
overlay analysis, each of the general overlay analysis steps were followed. Weighted
overlay is used when a number of factors of varying importance is considered to arrive at
a final decision, classified raster image was subjected to a common measurement scale.
Each raster was assigned a percentage influence. The cell values were multiplied by their
percentage influence, and the results are added together to create the output raster. The
output raster from Weighted Overlay is integer, the final value is rounded to a whole
number. From the analysis a new location of financial institutions were proposed.

16
 CHAPTER FOUR:

RESULT AND DISCUSSIONS

4.1 Results

The results obtained in this study include, coordinates of existing financial institutions in
the study area, digital map of the study area, Nearest Neighborhood analysis, buffering
analysis. Graphical representations of the results obtained are shown in figures below.

Figure 4.2: Nearest Neighbourhood Analysis

17
 Figure 4.2 above depicts the Nearest Neighborhood Analysis performed in ArcGIS 10.3.
Nearest Neighbour Analysis measures the spread or distribution of something (in this case
financial institutions) over a geographical space. It provides a numerical value that
describes the extent to which a set of points are clustered or uniformly spaced.

Figure 4.3: Distribution Map of Financial Institutions in Yola North Metropolis

Table 1. Description of the major criteria and sub-criteria used to define suitable location of the MIZ)
in Mafraq city.
Major sub-criteria Data Source Description
criteria
Accessibilit Transportation, Open street map, and The new site should be accessible by
y and Power local authorities transportation and power networks to
network reduce the infrastructure cost.
Condition: less than 1km from the
networks.
Health Digitized from The new site should be as far as possible
facilities Google Earth pro, from the city’s health facilities, especially
2022 the central hospital, for health issues.
Availabilit Land parcels Ministry of Local The potential site should be at a distance
y Urban area Administration, 2022 of not more than 1km from the current
urban boundary, taking into
consideration future urban sprawl and
for further urban expansion of the study

18
 area.
Land vacancy All vacant land is given priority in the
selection to reduce the cost of
compensating owners and restructuring.
Protected These areas include the land parcels of
areas the military base and airport, Refugee
Camp.
Ecologic Stream Derived from ALOS To decrease the chance of pollution
criteria network and PALSAR affecting groundwater tables, by
Slope DEM (Alaska discarded oils, paints, and other chemical
Satellite Facility, poisons draining into the streams
2019) (Gratzfeld, 2003).
Source: Developing the GIS-AHP Model
Description de n Score Value
equally suitable 1
slightly more suitable 3
strongly suitable 5
very strongly suitable 7
extremely suitable 9
intermediate values 2, 4, 6, 8

19
 Figure 4.3: Suitability Map of Financial Institutions in Yola North Metropolis

Source: Authors work

The Figure and table Classification above show that the Red-colored zone scaled
within the range of 50-500m is considered as Most Suitable for siting financial institution due
to the distance and the purple zone is considered as Unsuitable site which is scaled above
1000m
4.1.1 Suitability against Built Up Environment
Using the 50–500-meter buffer zone built up environment are suitable for location of
financial institution in Jimeta. This shows the areas above that less suitable for establishing a
financial institution this was done in order to avoid much traveling before locating a financial
institution that is Bank location should accessible to the neighboring residential, commercial,
public areas in respect. The map serves to distinguish suitable areas and unsuitable areas for
financial institution location. Economically, the financial institution should not be very far
from the residential should also be easily accessible.
Scale Score Classification
Build Up Area Factor 1
50-500 1 Most Suitable

20
 500-800 2 Moderately Suitable

800-1200 3 Less Suitable

Greater than 1200 4 Highly Unsuitable

Suitability against Minor Road Network.

Using the 50-meter buffer for Minor roads and 100 meters for Major roads are
suitable for sitting financial institution. This shows that the whole region that lies within the
50 meter and 500-meter buffer of the Minor Road are considered suitable for establishing a
financial institution. The map serves to distinguish suitable areas and unsuitable areas.
Scale Score Classification

50-100-500 1 Most Suitable

Minor Road Factor 2
500-700 2 Suitable

700-900 3 Less Suitable

21
 Greater than 900 4 Unsuitable

The Figure and table Classification above show that the purple-colored zone scaled
above 100m is considered as Most Suitable for siting Financial Institution due to the distance
and the mint pink zone is considered as Unsuitable site which is scaled above 400m.

Using the -100meter buffer for Major roads are suitable for sitting financial
institution. This shows that the whole region that lies within the 100-500 meter and 50-meter
buffer of the Minor Road are considered suitable for establishing a financial institution. The
map serves to distinguish suitable areas and unsuitable areas.
Scale Score Classification

100-500 1 Most Suitable

Major Road 500-7000 2 Suitable Factor 2

700-900 3 Less Suitable

Greater than 1000 4 Unsuitable

22
 The Figure and table Classification above show that the purple-colored zone scaled
above 100m is considered as Most Suitable for siting Financial Institution due to the distance
and the mint pink zone is considered as Unsuitable site which is scaled above 1000m.
Analytical Hierarchical Process
AHP is a structured and hierarchical decision-making process used in solving
complex decisions. It reduces complex decisions to a series of pairwise comparisons. This
process captures both subjective and objective aspects of decision. Furthermore, the process
includes an added step that checks the inconsistency of the decision maker’s evaluations to
reduce bias in the decision-making process.
The AHP process commences with a creation of a pairwise matrix where each
criterion (factor) is compared to each other and assigned a numeric scale (Judgement Value
from 1 to9)
Table; Saaty’s pairwise comparison scale

Intensity
Definition Explanation
of Importance
Equal
1 Two factors contribute equally
Importance
2 Weak or slight

Moderate Experience and judgement slightly

3
importance favor one factor over another

4 Moderate Plus

Strong Experience and Judgement strongly

5
Importance favor one factor over another

6 Strong Plus
Very strong or One factor is favored very strongly
7 Demonstrated over another, its dominance demonstrated in
Importance practice
Very, very
8
strong
Extreme
9
Importance
Source; Research,2022
AHP Pairwise Comparison Matrix

23
 Minor
1 Major Road Built up Area
Road

Major Road 1.000 0.500 0.333

Minor Road 2.000 1.1000 0.500

Built up Area 2.5000 2.000 1.000

Total = 5.500 3.60 1.83

Source; Authors Analysis, 2022

In Table, each factor is compared to another and assigned a judgement value. To
construct Table above, each factor is compared to another on a pair-by-pair basis. See (row
2, column 2) - Major Road is compared to Major Road and assigned a 1 (since comparing a
factor with itself). In row 4, column 5 – a judgement value of 6 is assigned between the
comparison of the Built-up area factor with Slope factor and in column 2, row 5 a judgement
value of 3 is assigned to the comparison of Erosion with Water Source.
In the preparation of this weightage procedure, I did not have the opportunity to
arrange such a meeting and therefore the numbers assigned above are based on researched
interviews and my personal feeling on the relative importance of one factor over another.
The normalization process involved dividing each of the record in Table 4.5 by its
corresponding column total. The result was a normalized relative weighting. See Table 4.6
for normalization and weighting calculations.

Table; AHP Pairwise Comparison Normalized Matrix

Major Minor
2 Built up Area Priority
Road Road
Major Road 0.107 0.293 0.133 0.533
Minor Road 0.054 0.146 0.200 0.
Built up Area 0.321 0.293 0.400 1.014
Source; Authors Analysis, 2022
Saaty (2012) provides the calculated RI value for matrices of different sizes as shown

4.1.1 Results Description

24
A total of 31 financial institutions whose coordinates were obtained using Global
Positioning System (GPS), at Yola North Metropolis were mapped and their coordinates
inputted in ArcGIS 10.3 Environment for various spatial analysis. Table 4.1 shows the
name, address and coordinates of all financial institutions in Yola North metropolis.

Figure 4.1 shows the satellite imagery of the study area depicting all existing financial
institutions. It can be seen that 31 financial institutions are domiciled in the study area.
Figure 4.2 depicts the digital map of Yola North metropolis showing the digitized pattern of
major roads, residential, commercial, vegetation, administrative and other area of interest.

The spatial pattern of health care facilities as determined by Nearest Neighbour Analysis
revealed a clustered pattern distribution (see figure 4.3) with nearest neighbour index value
of 0.824. This is statistically significant taking into consideration the Z score value of -
1.842975. The result shows that financial institutions are located clustery which guarantee
equitable access to the financial institution. Furthermore, a cursory look at figure 4.2 shows
that there is concentration of these financial institutions in Mohammed Mustapha way
popularly known as Bank road.

Figure 4.5 shows the suitability map of financial institution in the study area. Weighted
overlay analysis was done in ArcGIS 10.3, a weighted overlay of commercial area raster
and road raster with an influence of 60% and 40 percent respectively was used. The results
indicated suitable areas for establishing financial institutions in the study area. Some of the
suitable areas are along Gimber road, Hospital road, Justice Buba Ardo road and other
points shown in figure 4.6. The essence (figure 4.6) is that it will aid the decision makers of
financial institutions to determine where to site new branch of such banks where more
customers seems to exist.

4.2 Discussions of Results

The spatial pattern of financial institutions as determined by Nearest Neighbour Analysis
revealed a clustered pattern distribution (see figure 4.3) with nearest neighbour index value
of 0.824. This is statistically significant taking into consideration the Z score value of -
1.842975. The result shows that financial institutions are located clustery which guarantee
equitable access to the financial institution. This agrees with the findings of (Olagoke,
2022) who reported a clustered spatial distribution of banks in Oyo State. Also agrees with
the findinds of (Musa, 2015) who reported a clustered spatial distribution of Banks in Kano

25
State. Furthermore, a cursory look at figure 4.2 shows that there is concentration of these
financial institutions in Mohammed Mustapha way popularly known as Bank road.

26
 CHAPTER FIVE:

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary
Geographic Information System is a system designed to enable users to collect, manage,
analyze, and retrieve large volume of spatially referenced data and associated attributes
collected from various sources. This study shows the capability of Geographic Information
System in analyzing spatial phenomenal relating to financial institutions and accessibilities.
This research revealed that banks in Yola North are mostly located in commercial areas
giving the residential areas less consideration. Majority of bank customers takes
commercial transportation to make physical transaction in their respective banks due to
distance.
The study reveals that, there are thirty one (31) financial institutions in the study area. The
results from the study shows the clustered pattern of distribution exist.
It has also been shown that, this analytical tool-GIS aids proper accessibility of financial
institutions by the customers and tourists, with its income and employment potential.
However, it should be noted that developing a digital map for the bank industry should not
be an end in itself, but a means to an end. Its establishment or creation in any developing
country like Nigeria by any agency (public or private) should be regarded as a catalyst for
sustainable development.
5.2 Conclusion

The research investigates the spatial distribution of financial institutions in Yola North
Local Government Area metropolis, Adamawa State.

The study clearly depicts the process of using Nearest Neighbour and Weighted Overlay
analysis in determining the distribution pattern and deciding suitable area of establishing
financial institution. The coordinates of the existing financial institution in the study area
were obtained using handheld GPS and analysed using the ArcGIS 10.3 software. The map
gave first-hand information of their spatial distribution, and other relevant information
which it provides.

The research allows visualization of field survey results and provides essential financial
institution information. The user-friendly GIS mapping method demonstrated in this study

27
is a practical and feasible method for government, and researchers to obtain information on
the financial institutions in the study area.

5.3 Recommendations

Based on the analysis of result, research findings and conclusion of this study, the following
recommendations were made.

i. This study used Nearest Neigbourhood Analysis to obtain the spatial distribution of
banks in Jimeta Metropolis, further research should be carried out to incorporate
network analysis and service area of financial institutions in the study area.
ii. Financial institutions and private businesses should start using GIS as a tool to plan
and improve their services as based on the method adopted, suitable financial
institutions will be obtained at ease.

28
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 APPENDIX

COORDINATES OF FINANCIAL INSTITUTIONS IN JIMETA

Bank Name Address N (m) E(m)

Zenith Bank Jimeta Main market, Jimeta 2184051 1026460

Stanbic IBTC Main market, Jimeta 218068 1026390

UBA 1 Galadima Aminu 218514 1025877

Way, Jimeta

Access Bank Galadima Aminu 218720 1025650

Way, Jimeta

GT Bank Galadima Aminu 218792 1025598

Way, Jimeta

First Bank (Main Galadima Aminu 218841 1025571

branch) Way, Jimeta

Union Bank Galadima Aminu 219240 1025533

Way, Jimeta

CBN Galadima Aminu 219132 1025453

Way, Jimeta

Keystone Bank Galadima Aminu 219070 1025427

Way, Jimeta

Eco Bank Galadima Aminu 219120 1025399

31
 Way, Jimeta

Polaris Bank Galadima Aminu 219148 1025363

Way, Jimeta

UBA 2 Galadima Aminu 219218 1025433

Way, Jimeta

Zenith Bank 2 Galadima Aminu 219179 1025341

Way, Jimeta

Taj Bank Galadima Aminu 219371 1025277

Way, Jimeta

Bank of Industry Galadima Aminu 219375 1025304

Way, Jimeta

Fidelity Bank Galadima Aminu 219396 1025231

Way, Jimeta

Unity Bank Behaji road 219362 1025086

First Bank Behaji road 219043 1025298

NPF Micro finance Adjcent SPY 220072 1024836

bank

Polaris Bank2 Yola road 220408 1022497

Bank of Agric Dogire road 220608 1023322

FCMB Atiku Abubakar 220364 1025082

road

Sterlin Bank Atiku Abubakar 220368 1025264

road

Heritage bank Atiku Abubakar 220121 1025931

road

32
First bank 3 Atiku Abubakar 220077 1026522
road

Standard MCFB Mohd mustapha way 219655 1026748

Jaiz Bank Mohd mustapha way 218569 1026485

33