This project is a study of Nigeria financial system the prime
mover of economic activities a case study of Nigerian bank for commerce and
industries. This research shows the financial system have been of a great help
to our economic system especially entrepreneurs. During the course of this
research it was seen that the financial system have helped a lot in the
development of our communities and also been of a great help to both
agriculture list sole proprietor etc. During the research period, I used many methods
e.g collection of data, questionnaires, observations and secondary data.
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
Background of the Study
Statement of the
Objectives of the
Significance of the
Scope of the Study
CHAPTER 2: REVIEW OF RELATED LITERATURE
Historical Background of Economic Activities
Importance of finance to small scale
The major forms of financial assistance
The role of books as financial system in financing small scale
Problems of economic activities in
Advantages of Nigeria bank for commerce and industry (NBC) as
source of finance to
Disadvantage when compare to govt.
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY
Population of the Study
Sample and Sampling Techniques
Method of Data Collection
Instrument of Data Collection
Reliability of the Research
Method of Data Analysis
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
Analysis and Interpretation of
CHAPTER 5: FINDINGS, CONCLUSION AND
Limitation of the
Suggestion for Further Study/ Research
Background of the Study
Every economy is made up of a multitude of economic units and
agents. Here are individuals, households, different forms, firms and the
central authority. To carry on with its economic activities, it needs funds.
These units engaged in production., distribution or consumption may
require from other agents the service of their facilities of goods and services.
Specialization and minute elivison of labour in modern economy
have led to firms specializing in different ways. Some of these firms deals
with physical goods and services where as other specialize in money and credit.
The later deal wholly and exclusively in financial assets in liabilities. It is
the specialization that provides the link between different lowers of the
financial sectors and between different hers of economy.
In an economy, financial institution perform a wide set of
functions. There are monetary and non monetary financial institutions. The
former ensures that there is an adequate stock of money to service the needs of
the economy. Some of the type of financial institutions is the central bank and
commercial banks. These institutions can increase or decrease the stock of
money through their actions. But they later facilitate the transfer of money
between economic units. These action of both institutions affect the level of
employment. Income and prices (that is economic activities) which shows that
financial system is the prime mover of economic activities.
Statement of the Problem
This study/research entitles the Nigerian financial system as the
prime mover of economic activities attempts to determine the Nigerian financial
system as the prime mover of economic activities as compared to others and to
determine the best credit financing for small scale enterprises. This is with a
view to determine the actual achievement of the bank as a financial house in
terms of seize of loan, profitability of credit etc. The question here then is whether
it can be safety said that small scale enterprises have benefits appreciably
from finance houses (Bank) in terms of capital provision.
Generally the major problems of small and medium scale industries
consist of finance organization.
A comparison of banks performance with other sources open to small
scale industries will be undertaken in this research in order to find out
which of these sources of credit are most useful and important to small scale
Another problems is lack of time, since this study is just out of
many course offered by the researcher, she was not able to carry out intensive
research on this study in question because her time is limited. She also lack
the fund to run up and down to find suitable materials for this research.
Purpose of the Study
In view of the problem of some industrialist the objective of
these studies is to evaluate the role of financial houses in financing economic
activities for economic activity to be moving money must be made available to
the economic units.
The Specific Objective Are:-
·To identify the problem encountered by economic
activities in obtaining finance from banks.
Financial institutions provide liquidity by making it possible to
convert near money assets into manager. Such near money assets are time
deposits in the banks, treasury bills, share and bonds and commercial bills etc.
They mobilize the collection and storage of savings.
To appraise the situation and make recommendation on how to
improve on the finance houses.
Financial institutions highlight the extent to which the commercial banks
have helped to finance on economic activities and problems hindering such.
To guard against risks inherent in the day – to – day activities of the
economic units. Specialization in function has promoted the creation of
financial institution to insure against and thereby minimize the impact of risk.
Significant Of the Study
The significance of the study is to evaluate the extent to which
the economic activities have been able to obtain the assistance of financial
system in capital funding of their business. The research will be important in
that, it will provide data for future studies on the subject. Thus the study
will be of benefit to students who will be like to research on related topic in
future, it will make their work easier because already, a foundation has been
Industries will benefit because the research project will reveal
any problems in the relationship between banks as a financial institution and
economic activities when these problems are
revealed it will and borrowers to act loans easily without many
Finance houses will benefit because the actual role they play in
financing of economic activities will be revealed. This gives them strength to
ask federal government for loan when they have need for that.
Individuals will also gain because when banks give loans to
industrialist, it will help to act that the needs to the people are provided if
not fully but to an extent that a good number of people will benefit.
Scope of the Study
This topic Nigerian financial system as the prime mover of
economic activities (A case study of Nigerian bank for Commerce and Industries
(NBCI) Enugu) is very vast but for purpose of manageability to the financials
constrained. It has therefore restricted or limited itself to some specific
banks in Enugu state.
In choosing these bank, the research has invited his research in
those areas of operation of these institution that enhance economic
emancipation of Nigerian and used instance drawn to apply to other development
financial institution. This has been so because the research assumed that all
financial institutions saddled with the sole responsibility of small scale
industry have the same goals and objective of enhancing small – scale industry
as an economic activity.
Definition of Terms
The Nigerian Bank for commerce and Industry (NBCI) which currently
plays a very active role in the promotion of small industries defines a small
scale industry as one employing up to N500.00 Ezeye (1990).
In most cases, the varied definitions appear to be governed by the
interest of the perceived. The purpose of the definition the stage of
development in which the definition is employed.
Generally, a small business is defined as one which is owned,
managed by one or two persons, influences by the family in decision making, has
no undifferentiated organizational structure, market share is small and
employed less than fifty (50) persons.
The National Economic Reconstruction fund (NERFUND) defined some
of the economic activities e.g. small scale industries as those whose fixed
assets value do not exceed N10 million. While the central bank on the other
hand regards any enterprise whose annual turnover is less than (N500,000) five
hundred thousand naira.
the purpose of this research role should mean and includes all part played and
exhibits by financial banks.
is the transfer of fund from one economic entity to another which must be
repaid with interest over a stipulated period of time.
word credit comes from latin words “Credo” meaning I believe. It means ability
to command capital of another in return for a promise to repay as specified in
is concerned with available money and capital goods for investment in
industries to boost production.
be defined as a strategy through which none industries one encouraged to sprung
can be define as anything which is generally acceptable in a given society or
locality as a means of exchange and for settlement of debth.
Short Term Loan: A
source of fund, which has a short period of maturity.
In the process of carrying out this study, the following
assumption are made:-
Frequently apply for loan from commercial banks
Frequently apply for loan from Nigerian bank for commerce and industry (NBCI)
An Increase in bank loan will result in an increase in industrial production
Remember, the financial system of any society is the frame work
within which capital formation takes place. It is a frame work within which the
saving of some members of society are made available to other members of
society for production investment.
From the statement of problem, the study is aimed at providing answers
to the following questions:
you consider banks necessary?
there been any changes of the financial system mode of operation
TERMS AND CONDITIONS APPLY
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