A small-scale industries is a sale volume in the monetary unit.
The essence for this research work is to evaluate the extent to which
small-scale industries in Nigeria have been able to obtain loans and risk
finana from Nigeria commercial bank as a major source of finance to the economy.
This study is interested in finding out and commencing the major cause of the
commercial banks unwillingness to lend to small scale industries an also to
find possible solution to the lending problems of the commercial bank with
regards to the prospect.
In order to expand the industry and it’s activities then there is
a need to introduced the banking system to foster the grating of credits
Beside, structural Adjustment programme (SAP) was introduced in
orders to product the small-scale industries (S S T ‘S) that was designed to
In conclusion, the commercial bank should design program on
appropriate ways of utilizing loans e.g. seminar, symposia and workshop and
also the commercial bank should Stan granting the small-scale industries medium
term loans instead of the usual small term loans.
TABLE OF CONTENTS
1.1 BACKGROUND OF T HE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 SIGNIFICANCE OF THE STUDY
1.5 LIMITATION OF THE STUDY
1.6 DEFINITION OF YEARS
2.0 REVIEW OF RELATED
3.0 RESEARCH DESIGN AND
3.1 SOURCES OF DATA (SECONDARY SOURCES ONLY)
3.2 LOCATION OF DATA
3.3 THE METHODS OF DATA COLLECTION
BACKGROUND OF THE STUDY
It is certain that Nigeria is endowed with a lot of natural resources. These
resources to mention but a few are skel, crude oil, natural gas, Iron ore, palm
oil, ground nut yam, cassava etc. these resources found the major export
earning before the era of independence an generate 80% of our then total
revenue the precolorual era could be regarded as era of substance economy. Each
community then was noted for one particular raft or the other some families
were known as either artists or blacksmiths on their craft as their source of
livelihood ad they were operating as subsistence level fermi (1984)
As a result of increased population and increased demand for these service,
there were efforts to increase specialization an efficiency by these craftsmen
it worth knowing that there was little or capital intensive Because of this
lack of capital intensive, production possibilities curing the precolonial, the
federal government did not free movement towards the upliftment of the
industries. The economy under the precolonial, the federal
government. What merely existed was the cowry monetary system. Hence, the luck
for efficient and effective monesed economy did not exert a concrete influence
on economic activities. To foster the industry, there was the introduction of
banking system which facilitated granting for credit facilitates e.g. loan and
advance (Nwosu 1984)
In post independence economy, the government made no remarkable impact on
small-scale industries establishment. The federal government in order to
protect the small-scale industries (SSTS) In the country introduces the
structural adjustment programme (SAP), which was design to exhibit reliance. It
allows the SSTS to g row without unhealthy competition with the foreign goods,
as it discouraged the importation of raw material that can be preceded locally.
The measures introduced to boast the growth small scale industries
(SST’S) include the establishment of national economic reconstruction fund
(NERFUND) and the small and medium enterprises (SIGE) fund which is
manned by the CBN. Inspite of these effort by the government, the
SSE’s are still struggling to liberate themselves from financial arises the
small scale industries (SSI’) tends to differ among countries and individual
The central bank of Nigeria (CBN) create guidance to commercial
and merchant bank for this purpose therefore, small scale enterprises shall
include cottage industries and defined as enterprises who cost excluded cost of
lend but including working capital does not exceeds N10, CBN (1994)
STATEMENT OF THE PROBLEM
It is obvious that much is gained economically and otherwise form
the establishment of small-scale industries in any economy, Nigeria as a case
point should not be an exception. This present economic situation in the
country in such that one need to wonders above the small-scale industries.
These are many commercial bank today in Nigeria shall be complete monetary in
native for the survival of the economy.
Presently, the small-scale industries are very much dependants on
banks funding for effective growth. The government in recognition
of the need to eradicate the funding problem of small-scale industries has
stipulated a lot of rules gathered towards adequate funding of the small-scale
The research is interested in finding solutions to the financial
inadequacies and other related problems of the small-scale industries with
particular references to commercial banks.
1.3 OBJECTIVES OF THE STUDY
1. To examine the participation of commercial banks
in financing small scale industries.
2. To examine the term structure of loans and
advance of commercial banks to small scale industries
3. To identify the importance for small-scale
industries financing to the commercial banks.
4. To identify the cause of variability of small
scale industrial financing by the commercial bank.
SIGNIFICANCE OF THE STUDY
The managers of various small scale industries need to be aware of
the source of their financing problem and loans they can tackle them
effectively on the part of policy makers, that is the government agencies
responsible for formulating polices and strategies for the development of small
scale industries with this study.
DEFINITION OF TERMS
The definition of small-scale industries has facilted the
industrial and economic growth of the develop nations of the world.
Consequently the desired growth in the main sale industries could be regarded
as stepping stone for the growth of the economy.
TERMS AND CONDITIONS APPLY
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