Role of Commercial Banks in Financing Small Scale Industries in Nigeria

Role of Commercial Banks in Financing Small Scale Industries in Nigeria.

ABSTRACT

An appraisal Of Commercial Banks in Financial Small Scale Industry in Nigeria. A case study of First bank of Nigeria plc. This study is to ascertain the extent to which commercial banks have helped to finance small scale industries in Sokoto.

To achieve this study adopted a survey  research which employed the use of simple random sampling technique was employed and SMEs where selected which constitute the sample size of the research.

Structured questionnaire was designed to facilitate the collection of the relevant data which was used for the analysis. Descriptive statistics which involves simple percentage and chi-square.

The findings indicate that the operations of commercial banks towards SMEs have grown phenomenally in the last 3 years, driven largely by expanding informal sector activities.

The study also reveals the challenges faced by SMEs, which has been addressed in this research. Commercial banks traditional lend to medium and large enterprise, which are judged to be credit worthy.

They avoid doing business with small and medium scale industry because the associated.

TABLE OF CONTENTS

CHAPTER ONE INTRODUTION ANALYSIS
1.1 BACKGROUND TO THE PROBLEM
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 RESEARCH HYPOTHESIS
1.5 SCOPE OF STUISY
1.6 LIMITATIONS OF THE STUDY
1.7 SIGNIFICANCE OF THE STUDY
1.8 DEFINITION OF STUDY

CHAPTER TWO LITERATURE REVIEW

2.1 INTRODUCTION
2.2 MEANING OF SMALL SCALE INDUSTRY
2.3 GOVERNMENT POLICY ON SMALL SCALE FINANCING
2.4 MONETARY POLICY DEVELOPMENT IN FAVOUR OF SMALL SCALE INDUSTRIES
2.5 BENEFITS OF SMALL SCALE ENTERPRISES
2.6 PROBLEMS FACING SMALL SCALE INDUSTRY
2.6.1 TECHNICAL KNOWS HOW
2.6.2 PERSONNEL, MATTERS AND GENERAL ADMINISTRATION
2.7 IMPROVING FUNDING SMALL SCALE INDUSTRIES

CHAPTER THREE: RESEARCH METHODOLGY

3.0 INTRODUCTION OF THE STUDY
3.1 RESEARCH DESIGN
3.2 AREA OF STUDY
3.3 POPULATION OF STUDY
3.4 SAMPLE SIZE DETERMINATION
3.5 INSTRUMENT FOR DATA COLLECTION
3.6 VALIDATION OF THE INSTRUMENT
3.7 RELIABILITY OF THE INSTRUMENT
3.8 METHOD OF DATA COLLECTION
3.9 DATA ANALYTICAL RECHNIQUES

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 PRESENTATION OF DATA
4.2 HYPOTHESIS TESTING

CHAPTER FIVE FINDINS: CONCLUSIONS AND RECOMMENDATIONS

5.1 FINDINGS
5.2 CONCLUSION
5.3 RECOMMENDATION
BIBLIOGRAPHY
APPENDICES

INTRODUCTION

1.1 Background to Problem

Small and medium enterprises are believed to be the engine room for the development of any economy, because they form the bulk of business activities in a growing economy like that of Nigeria.

This is manifested in the following ways, Employment generation, rural development, Economic growth and Industrialization, Better Utilization of Indigenous Resources.

In the past, Nigeria’s over dependence on oil which really exposed the economy to unprecedented macro-economic instability resulting from the effects of external shocks to oil prices.

The world economic recession and the sustained slump in oil prices posed a serious challenge on Nigeria economy which accounted for a reduction in our external Reserves and also diminished on the nation’s capacity to finance much of its development needs.

It was also observed that the real GDP growth slows to 2.2% from 2009; population growth rate will climb to 2.5%. Such situation could plunge the country into economic embarrassment and posed a major challenge to the Government.

BIBLIOGRAPHY

Adekanye F: The Element of Banking in Nigeria. F and A Publishers Ltd. (1986).

Annual Report and Accounts: First Bank of Nigeria ltd 2003.

Ashonibare M.D: The Role of Small and Medium Scale Industries in Development Planning IDC Sokoto (1990).

Doyle, E.P. & Kelly, J.E: Practice of Banking: Macdonald and Evans, Third Edition 1981.

Exejelue A.C. and Ogwu: Basic Principle of Managing Research Projects. African Feb. Publishers, Onisha (1990). Femi A: The Element of Banking in Nigeria: Third Edition.

Femi A: The Nigeria Banking Handbook: Graham Burn Publishers, 1984. Ogujiuba, F.K. Ohuche & A.O. Adenuga: Credit Availability to Small and Medium Scale Enterprises in Nigeria:

Importance of new capital base for banks. Bullion Vol. 28 No. 4 October- December, 2004.