Category Archives: Banking And Finance Project Material Sample

Banking And Finance Project Material Sample

THE ROLE OF BANKS IN THE DEVELOPMENT OF ENTREPRENEURSHIP IN NIGERIA (A CASE STUDY OF FIRST BANK OF NIGERIA PLC.)

THE ROLE OF BANKS IN THE DEVELOPMENT OF ENTREPRENEURSHIP IN NIGERIA

(A CASE STUDY OF FIRST BANK OF NIGERIA PLC.)

ABSTRACT

This paper is on the role of banks in the development of entrepreneurship. It is aimed at dealing with the problems encountered by entrepreneurs in acquiring loans for their business, and also the role banks play in the development of entrepreneurship in Nigeria.

It seeks to look at the problems of getting the loans and also that of the banks contributions to the average Nigerian small-scale enterprises.

A detailed research methodological approach, which involved, the review of related literature, personal observation, different techniques for the data collection and questionnaires were embarked upon.

Based on he major semantic problem identified, recommendation are made which includes aggressive enlightenment campaign by banks, small-scale manufactures and government to ensure continued positive encouragement to the small-scale industrialist.

CHAPTER ONE

Introduction                                                                   1

  • Problem identification or statement of problem 1
  • Rationale of study 2
  • Significance of study 3
  • Background of the study (optional) 4
  • Definition of terms 5

CHAPTER TWO

Literature review                                                           6

  • Theoretical review 7
  • Empirical review 14

CHAPTER THREE

Hypothesis, methodology of the study source of data &

Limitations of the study.                                                         17

  • Hypothesis 17
  • Methodology of the study 21
  • Data collection 21

 

CHAPTER FOUR

Data presentation, analysis and discussion of the results       27

  • Data presentation 27
  • Discussion of the result 40

 

CHAPTER FIVE

Summary, conclusion and Recommendation                           43

  • Conclusion 43
  • Recommendations 44

Bibliography                                                                 46

Appendix                                                                       50


CHAPTER ONE

INTRODUCTION

  • PROBLEM IDENTIFICTION/STATEMENT OF PROBLEM

Over the years, unemployment has been a common problem, which almost every Nigerian suffers.

According to NWABUEZE (2003), “the most affected among these unemployed resources is human labour.

The government policy makers, economic and social philosophers, private individuals and banks have in one-way o the other contributed tremendously to the control of the economic menace.

The prime among these unemployment regulators are banks, and thus, this research work aims at uncovering the extent bans have helped in mitigating the teaming unemployed human labour by development of entrepreneurship through;

  • Deposit/collection/safe-keeping of entrepreneurial evaluates.
  • Advances/credit extension to entrepreneurs.
  • Corporate finance services to entrepreneurs.
  • Money transfer on behalf of the entrepreneurs.
  • International finance services to the entrepreneurs.

 

1.2     RATIONALE OF STUDY

The purpose of the research work is to

  • Examine entrepreneurship as a way for development of the economy.
  • Suggest way banks can avert the problem encountered during the implementation of the Nigerian enterprise promotion decree 1972.
  • Review the liquidity problem of first bank, in order to know their ability in granting loans and other customers’ related services for development of entrepreneurship in Nigeria.
  • Highlight ways of improving poor branch network in the rural areas, which will enhance their participation in the programme.
  • To discover the role-played by banks in development of entrepreneurship.
  • To recommend or advice on the appropriate role these banks will play to solve these problems of entrepreneurship.
  • To compare the extent these roles of banks will go in solving the problems of these entrepreneurs.

 

1.3     SIGNIFICANCE OF THE STUDY

          The significance of the study lies in the fact that the findings will help the banks to know the problems faced by small-scale industrialists or the entrepreneurs and therefore help the policy makers to adjust to the existing lending policy and rendering other bank customer services.

Secondly, the effective implementations of the research work suggestion will not only facilitate the performance of banks but will also crab the high incidence of risk of default on bank loans.

This research work will equally mean an increase or easier access of small-scale manufacturers to institutional source of finance/fund (banks) that will alleviate their problems of lack of finance and assist the nation in achieving the dream of industrialization.

Also students who will be writing project may also use this as a reference material.

Lastly, any verification on the authencity of the allegation that banks are reluctant in financing small-scale industries that will form part of this study will make the work more justifiable.

 

1.4     BACKGROUND OF THE STUDY

According to Okafor (1999), it is now a hundred and five (105) years since banks commenced operation in Nigeria. Throughout these periods, there were few published and comprehensive reference materials on the role of banks in entrepreneurship development.

Ntomi (2003) adds that shortly after the Nigerian civil war which lasted for three years (1967-1970), the discovery of oil in commercial quantity and the subsequent abandonment of agriculture and mining, many human and material resources were left unemployed. He maintained that the policy makers, economic philosophers and the UNO (United Nations Organization) seeing the state and rate of unemployment in Nigeria, gave directives to the banks to extend short and medium term loan to small-scale industrialists especially young school leavers to facilitate self-employment.

According to Anuka (2001), in 1979, this scheme allowed five hundred naira (N500) free interest loan to any qualified school leaver. Presently, Soludo argues that owing to the value of naira and the current trend of economic development, entrepreneurship should attract about five hundred thousand naira (N500, 000) with little or no interest attachment, to boost the economic growth and development.

Though Nigerian financial system is not well developed, but that is not to say that many small-scale industrialists have not benefited immensely from this scheme.

1.5     DEFINITION OF TERMS

The following terms are use in this research work expressly or impliedly;

  • Entrepreneurs; these are people who have the ability to see and evaluate business opportunities, to gather the necessary resources to make advantage of them and to initiate appropriate action to ensure success.
  • Commercial banks; these are banks owned by shareholders (joint stockholders) that transact business with the general public with fundamental target of profit maximization.
  • Small-scale industrialists; individuals who establish and operate a business for the principal purpose of furthering personal goals
  • Merchant banks; these are banks owned by holders that are meant to give long-term loans to people in business.

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GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

Enter Amount

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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THE ROLE OF CENTRAL BANK IN ESTABLISHING NIGERIA ECONOMY (A CRITICAL REVIEW)

THE ROLE OF CENTRAL BANK IN ESTABLISHING NIGERIA ECONOMY (A CRITICAL REVIEW)

PROPOSAL

 

Central bank is generally known to be concerned with he maintenance of monetary stability.  This task will involves the regulations of money in circulation  consistent with excessive growth is money supply rates  to high

Rates of spending on domestic or foreign goods.

This research will be carried out through oral interviews.  Questionnaires will also be distributed in collecting data and information .  analysis will be done on the data base on the testing and proofing of hypothesis.  Secondary data will also be source by the researcher; and they include journals, magazines, textbooks, periodicals etc.

The researcher as a student will  experience many difficulties  in the cause of collecting data which will include;

  1. The time given is limited for the researcher to collect enough data on time
  2. The responsible officials will not give audience to the researcher.

One of the strategies of achieving this objectives is through the adoption of the liquidity management policies / techniques which afford the CBN the use of monetary policy instrument to influence bank reserve and the growth in  money supply.  Also the government should grant of relief granting of loans for the establishment of industries and importation of raw materials on concessionaire import duties.

ABSTRACT

 

Central banks are general known to be concerned with the maintenance of monetary stability.  This task involves the regulation of money in circulation consistent with the absorphic capacity of the economy axiomatically, excessive growth in money supply rates to high rates of spending on domestic or foreign goods given that domestic supply of goods and services in essentially in elastic in the short run, excess liquidity is likely to result in substantial inflationary is likely to result in substantial inflationary pressures in the economy.  To the extent that spending pressures are directed towards foreign goods or (assets0 balance of payment pressures will ensure.  Thus, the task of monetary authorities is to ensure that the growth in the domestic  liquidity is consistent with the  objectives of out-put growth, inflation and the balance of payments.  This at any given time the CBN would ensure that supply of money is sufficiently optimal to sustain non-inflationary out-put rate and exchange rate stability.

One of the strategies of achieving this objectives is through the adoption of the liquidity management policies / techniques which afford the CBN,  the use of monetary policy instrument to influence bank reserve and consequently the growth in money supply.  The ability of the central bank to effectively control domestic liquidity depends interaction the level of the economic development particularly the state of its financial system the number and types of policy instruments available to the central banks and degree of harmonization between monetary and fiscal policies

CHAPTER ONE

  • Introduction
  • Objective of the study
  • Research questions
  • Statement of hypothesis
  • Statement of problem
  • Significance of study
  • Scope and limitations of the study
  • Definition of terms

CHAPTER TWO

REVIEW OF RELATED LITERATURE

  • Introduction
  • Meaning of central bank
  • The central bank Vs commercial banks
  • The relation of CBN with other banks
  • Central bank of Nigeria and its objectives and functions
  • Monetary policy, meaning, objectives and instruments
  • Fiscal policy, meaning, objectives and instruments used.
  • Stabilization policies, objectives and conflicts,
  • The role of CBN in stabilizing Nigeria economy
  • Problem faced by CBN ins stabilizing Nigeria economy

CHAPTER THREE

RESEARCH DESIGNS AND METHODOLOGY

  • Introduction

3.1     Population

  • Samples selection
  • Description of instruments used in data collection
  • Questionnaire
  • Abstract
  • Personnel interview
  • Questionnaire distribution and control
  • Sources of data
  • Procedure of data Analysis

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

  • Introduction

4.1     Analysis of response to questionnaire

  • Testing and proofing of Hypothesis

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

  • Summary of findings

5.1     Recommendations

  • Conclusions

Questionnaire

Bibliography

 

 


CHAPTER ONE

 

1.1     INTRODUCTION

The growth and development of international trade along West African coast played a major role in extending the medium of exchange beyond trade by barter in the nineteenth century.

The ‘’native currency’’ system which relied on item such as manila, cowries, brass and copper rods   had to accommodate foreign currencies such as Maria Theresa dollar and British silver coins increased trade motivated the setting up of the Bank of British West African [BWA] in 1894, thereby drastically reducing the barter system and ushering in a rudimentary form of commercial banking.

The issue of legal tender currency for the West African region  was however deferred till 1912 when the west African currency Board  [WACB] was established. The WACB was an offshoot of the recommendation of the EMMOE committee set up by the then secretary of state the Rt. Ifon. Lewis Harcourt. The WACB retained the services of the BBWA as its currency distribution agent. It set up four currency centers in Lagos [Nigeria] and Bathurst, now Banjul [the Gambia].  The currency in circulation in West Africa increased steadily through the 1950s in response to the growing demand and increase in the World price for West African primary products such as cocoa, groundnuts and palm oil.

The WACB, however, did not have discretionary control over the money stock of the territories under the money stock of the territories under its sphere of influence. It was set up primarily to promote the influencing of export trade. Specifically, it was changed with the issue of a West African currency, the repatriation of such currencies and the investment of reserves. There was a fixed parity between the local currency and the British pound while the currency had 100 percent sterling banking. The   reserves   were   invested in British   and this way facilitated Nigeria’s international   payment.  As the WACB was automatically linked   to the British system, the investment policy   was   rather conservative in   the   sense that   sterling reserves were invested only   in   Britain.   Moreover, the   WEACB   could   not engage   in   monetary   management, neither   were Nigeria’s   trained   in   the   art.   In   order to eliminate   this   deficiency   and promote    the   growth   of the   domestic    money   and   capital   markets, especially   as    the   country   marched    toward   political    independence   in    1960, the CBN was   established   by   the   central   Bank Of   Nigeria   Act of   1958.

The bank   commenced   business   on   1st July   1959    with   an   initial   capital equivalent to   N30 million.  The    legal   framework of   the central   bank   has been   strengthened    over    time   to   address   lapses   in   financial   system prior to   the    enactment   of 1958   central   Bank   act   the   banking   system   in    Nigeria   was largely unregulated. Initial attempt   in   1952   at streamlining    the   practice   to   banking    to ensure monetary   stability through    the   enactment   of    the   banking ordinance     did   not   quite address   the   problem. The   spate of    bank failures could   not   be stemmed, thus the central   Bank   Act   of    1958    was   enacted to   formally establish   a   central   monetary   authority   that   would   perform   the    traditional   roles   of   a     central     bank. The   1969   Banking   Act   and its amendment, which   defined   the   business    of    banking    and    stipulated   penalties   for   banking   malpractice   further   strengthened      legal    framework.

To      further     strengthen    the   supervisory     capacity   of    the   bank, the    central   bank of     Nigeria decree   No. 24 and   Bank and   other   financial, Institutions  [Bofi] Decree N.25 of 1991 were promulgated.  The Bofi Decree among other provisions centralize the    functions   of   licensing as well   as   regulation of    banks   and   other   financial   institution in    the bank.

The     current   legal   framework within   which    the   CBN    operates    in   the   central   Bank growth in economics development is one of the many problems facing the Nigerian economy through these problems manifesting themselves   in most   developing countries and    yet   this   gets   worsened with   the   military rule, Nigeria   is a typical   area   in point. Hence the   essence of this research is to examine   the   topic ‘‘THE ROLE OF CBN IN    STABIBILISING   NIGERIA ECONOMY’.

 

1.2       OBJECTIVE     OF   THE    STUDY.

The   objective of this study shall be;

To ascertain why the CBN is yet to stabilize the Nigeria economy with instrument (s) of monetary and fiscal policies with their objectives and role they play in the stabilization of the economy.  Also the study shall also look at why the economy of Nigeria needs to stabilize and problems facing CBN in stabilizing Nigeria economy and to make recommendations where necessary

 

1.3     RESEARCH QUESTION

a    Why is it that our economy is yet to developed

  1. Does the establishment of CBN help in stabilizing Nigeria economy.
  2. Does monetary

 

 

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COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

Enter Amount

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE

THE ROLE OF CENTRAL BANK IN STABILIZING NIGERIAN ECONOMY (A CRITICAL REVIEW)

THE ROLE OF CENTRAL BANK IN STABILIZING NIGERIAN ECONOMY (A CRITICAL REVIEW)

ABSTRACT

 

Central banks are generally known to be concerned with the maintenance of monetary stability.  This task involves the regulation of money in circulation consistent with the absorphic capacity of the economy axiomatically, excessive growth in money supply rates to high rates of spending on domestic or foreign goods given that domestic supply of goods and services in essentially in elastic in the short run, excess liquidity is likely to result in substantive inflationary pressures in the economy.  To the extent that spending pressures are directed towards foreign goods or (assets) balance of payment pressures will ensure.  Thus, the task of monetary authorities is to ensure that the growth in the domestic liquidity is consistent with the objectives of out-put growth, inflation and the balance of payments.  This at any given time the CBN would ensure that supply of money as sufficiently optimal to sustain non-inflationary out-put rate and exchange rate stability.

One of the strategies of achieving this objective is through the adoption of the liquidity management policies/techniques which afford the CBN the use of monetary instrument to effectively control domestic liquidity depends inter-alia, on the level of the economic development particularly the state of its financial system the number and types of policy instruments available to the Central banks and the degree of harmonization between monetary and fiscal policies.

 

PROPOSAL

 

The role of Central Bank of Nigeria in stabilizing Nigerian economy.

This research work will consist in full  details the role of Central Bank of Nigeria in stabilizing Nigerian economy.  It is certain that every economy is made up of two sectors which is public and private sector.  None of these sectors can exist without the movement of fund, that is income and expenditure.  The Central bank being the governor in Nigerian banking system controls the flow of money in circulation.  In doing this, they are trying to make the Nigerian economy stable.

Therefore, this study is going to explain the activities of CBN in stabilizing Nigeria economy.  The researcher will use both primary and secondary data.  Also for the fact that this problem has to do with central bank of  Nigeria, the researcher will employ a sample size from CBN Ojkpara Avenue Enugu.

The write-up will consist of first chapters which will be displayed as follows:-

Chapter one shall discourse the general introduction. Chapter two will consist of the literature review. Also chapter three will deal with the research designs and methodology. In chapter four, the presentation of data analysis shall be treated. Finally, the summary of findings, conclusions and recommendations shall be contained in chapter five.

 

CHAPTER ONE

Introduction                                                                                                1

1.1     Statement of problems                                                            3

1.2     Objectives of the study                                                            5

1.3     Research questions                                                                           6

1.4     Statement of hypothesis                                                                   6

1.5     Significance of the study                                                                   7

1.6     Scope and limitation of the study                                            8

1.7     Definition of terms                                                                            9

Chapter two

Introduction                                                                                                10

2.1     Meaning of central banking                                                     11

  • Central banks vs commercial banks. 13
  • The relationship of central bank of Nigeria with other banks 15

2.4     Central Bank of Nigeria and its Objectives and Functions                24

2.5     Monetary policy meaning, objective and instruments             33

2.6     Fiscal policy, meaning, objectives and instrument used          45

2.7     Stabilization policies objectives and conflicts                          52

2.8     The role of CBN in stabilizing Nigerian economy                             57

2.9     Problems faced by CBN in stabilizing Nigeria economy                   61

CHAPTER THREE

Research design and methodology                                                    64

  • Population 64
  • Sample selection 64
  • Description of instruments used in data collection 65
  • Postal questionnaire 65
  • Abstracts                                                                    66
  • Questionnaires distribution and control 66
  • Sources of data 67
  • Procedure of data analysis 67

CHAPTER FOUR

Presentation and analysis of data                                                     69

  • Analysis of response to questionnaire 69
  • Testing of hypothesis 72
  • Interpretation of results 80

CHAPTER FIVE

Summary of findings, conclusion and recommendations                            82

  • Summary of Findings 83
  • Conclusion 84
  • Recommendation 85

Bibliography                                                                           86

 

 

 

 

 

CHAPTER ONE

 

INTRODUCTION

The growth and development of international trade along West Africa coast played a major role in extending the medium of exchange beyond trade by barter in the nineteenth century.  The “native currency” system which relied on items such as cowries, manila; brass and copper rods had to accommodate foreign currencies such as Maria Theresa dollar and British silver coins.  Increased trade motivated the setting up of bank of British West Africa (BWA) in 1894, thereby drastically reducing the barter system and ushering in a new era rudimentary form of commercial banking. The issue of legal tender currency for the West African region was however deferred till 1912 when the West African Currency Board (WACB) was established.  The WACB retained the services of the BBWA as its currency distribution agent.  It set up four currency centres in Lagos (Nigeria) and Bathurst, now Banjul (the Gambia).  The currency in circulation in West, Africa increased steadily through the 1950s in response to the growing demand and increase in the world prices for West Africa primary products such as cocoa, groundnuts and palm oil.

 

The WACB, however, did not have discretionary control over the money stock of the territories under its sphere of influence.  It was set up primarily to promote  the financing of export trade.  Specifically, it was charged with the issue of a West African Currency, the exchange of existing currencies, the repatriation of such currencies and the investment of reserves.  There was a fixed parity between the local currency and the British pound while the currency had 100 percent sterling banking.  The reserve were invested in Britain and this in a way facilitated Nigeria’s international payment.  As the WACB was automatically linked to the British system, the investment policy was rather conservative in the sense that sterling reserves were invested only in British.   Moreover, the WACB could not engage in monetary management neither were Nigerians trained in the art.  In order to eliminate this deficiency and promote the growth of the domestic growth of the domestic money and capital markets, especially as the country marched towards p[political independence in 1960, the CBN was established by the Central Bank of Nigeria Act of 1958.  The Bank commenced business on 1st July, 1959 with an initial capital equivalent to N30 million.  The legal framework of the Central Bank has been strengthened over time to address lapses in financial system prior to the enactment of 1958 Central Bank Act, the banking system in Nigeria was largely unregulated.  Initial and other financial institutions (amendment)

Decree No. 38 of 1998, which repealed Boji (amendment) Decree No. 4 of 1997.  In 1999 these legislations were further amended.

The Boji (Amendment) Decree No. 4 was conferred on the Governor and Board of Directors of the CBN powers to revoke the operating licenses of a bank granted under financial institutions.  The Decree extended the provisions that empowered the CBN to remove erring managers and officers of the banks to other financial institutions.  The CBN amendment decree No. 41 of 1999 restored administrative autonomy to the Bank over its internal affairs.  The decree also vested on the  Board of Directors power to remove the annual budget estimates of the bank.

 

1.1     STATEMENT OF PROBLEMS:

The failure of government adequately implement its monetary and fiscal policies in order to attain an appreciable level of growth in economic development is one of the main problem facing Nigerian economy.  Through these problems manifesting themselves in most developing countries and yet this get worsen with the military rule, Nigeria a typical area in point, hence the essence of this research is to examine the topic “THE ROLE OF CBN IN STABILIZING NIGERIAN ECONOMY” attempt in 1952 at streamlining the practice to banking to ensure monetary stability through the enactment of the banking ordinance did not quite address the problem.  The spate of bank failures could not be stemmed, thus the Central Bank Act of 1958 was enacted to formally establish a central monetary authority that would perform the traditional roles of a central bank. The 1969 banking act and its amendments which defines the business of banking and stipulated penalties for banking malpractices further strengthened the legal framework.

To further strengthen the supervisory capacity of the bank, the Central Bank of Nigeria, decree No. 24 and Banks and Other Financial Institutions (BOFI) Decree No. 25 of 1991 were promulgated.  The Boji Decree among other provisions centralize the functions of licensing as well as regulation of banks and other financial institutions in the bank.

 

The current legal framework within which the CBN operates in the Central Bank of Nigeria (amendment) decree No. 37 of 1998 which repealed the Central Bank of Nigeria amendment decree No. 3 of 1997.  The decree provides a measure of operational autonomy for the CBN to carry out its traditional functions and enhances its versatility.

 

Similarly, the regulatory powers of the CBN have been further strengthened by the Banks.

 

1.2     OBJETIVES OF THE STUDY

The objectives of this study shall be as follows:-

To ascertain why the CBN is yet to stabilize the Nigerian economy with instruments of monetary and fiscal policies with their objectives and role they play in the stabilization of the economy.  Also the study shall look at why the economy of Nigeria, need to be stabilized and problems facing CBN in stabilizing Nigeria economy and to make recommendations where necessary.

 

 

1.3     RESEARCH QUESTIONS

  1. Why is it that our economy is yet to be developed?
  2. Does the establishment of CBN help in stabilizing Nigeria economy?
  1. Does monetary policy and fiscal policies used by CBN really help in promoting the rapid development of Nigerian economy?
  2. Why do we need stability?

 

1.4                   STATEMENT OF HYPOTHESIS

In the course of the study, the following hypothetical statement would be subjected to significant text.

  1. Hi: Has the establishment of CBN helps in regulating the economy.

Ho:  The establishment of CBN has not helped in regulating the economy.

 

  1. Hi: Does CBN control the circulation of money in the economy through the commercial banks effectively.

Ho:  CBN does not control the circulation of money in the economy through the commercial banks effectively.

  1. Hi: How would you assess the use of monetary and fiscal policies in stabilizing Nigeria economy which CBN uses as instrument of work.

Ho: The assessment of CBN cannot be assessed using monetary and fiscal policies in stabilizing Nigerian economy which CBN uses as instrument of work.

  1. Hi: Can CBN sanction any commercial bank that fails to follow CBN regulation?

Ho: CBN cannot sanction any commercial banks that fails to follow CBN regulation.

 

1.5     SIGNIFICANCE OF THE STUDY

This Study will therefore be very significant in informing the government that if CBN is given free hand to operate, it will use monetary and fiscal policies to stabilizer Nigeria’s economy.

The significance of this study will be to a great extent enable the researcher to know why Nigeria is yet to be stabilized.

 

 

1.6     SCOPE AND LIMITATIONS OF THE STUDY

This study is made to cover the role of Central Bank in stabilizing the Nigerian economy.  However, the depth of coverage will be limited by such, containing functions and objectives of CBN, the instrument of monetary policy and fiscal policy are problems CBN encounter in stabilizing the economy of Nigeria.

The researcher a student experienced many difficulties in the cause of collecting data for the work.  The researcher’s efforts to reach extensive information where necessary for the comprehensive work were severely restrained by some factors which include:-

CBN library is not regularly open.  The time given is so limited for a researcher to collect enough data on time and some statement or document are not allowed for photocopying

The responsible officials are not giving audience to the researcher at first and subsequent visits and the response to questionnaires from CBN were delayed.  Finance and time constraint also posed a lot of limitation on this .exercise.  The time given to the researcher is not enough, because he combines lectures and research at same time, on the financial aspect the researcher was adversely affected since she required huge amount for transportation, especially in respect of data collection, and typing the questionnaires.

 

1.7     DEFINITION OF TERMS

(a)     Economy: According to Oxford Advanced Learners Dictionary defines economy, “A measure to control and manage money and resources”.

(b)     Fiscal Policy:  Is the influence of economic activities through variation in taxation and government expenditure

©       Monetary Policy: Is a government policy about money, it is a deliberate manipulation of cost and availability of money and credit by government as a means of achieving the desired level of prices, employment, output and other economic objectives.

(d)     Stabilize: According to Oxford Advanced Learner’s Dictionary defines stabilize; as causing something or somebody to become stable.

Download our android mobile app for more materials

ORDER NOW

COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

Enter Amount

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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THE ROLE OF CENTRAL BANK OF NIGERIA IN EFFECTING THE STABILIZATION MEASURE IN THE ECONOMY

THE ROLE OF CENTRAL BANK OF NIGERIA IN EFFECTING THE STABILIZATION MEASURE IN THE ECONOMY

CHAPTER ONE

1.1   Introduction

1.2   Statement of Problem

1.3   Hypothesis Statement

1.4   Objective of the Study

1.5   Limitation of the Study

1.6   Definition of Terms

CHAPTER TWO

Literature Review

  • Definition of Central Bank
  • The Function of Central Bank
  • The Role of Central Bank in the Stabilization of the Economy
  • Exchange Rate Policy
  • Foreign Exchange Management
  • Debt Rescheduling and Conversion
  • Monetary Policy

CHAPTER THREE

3.1       Research Methodology

3.2       Sources of Data

3.3       Sample of Data

3.4       Data Analysis Method

CHAPTER FOUR

  • Detailed Analysis of Data

CHAPTER FIVE

5.1       Findings, Conclusion and Suggestions

  • Bibliography
  1. Texts
  2. Journal
    • Appendix
  3. Questionnaires

 

CHAPTER ONE

INTRODUCTION

During the period of oil boom, price of oil were high and Nigeria, being an oil producing and exporting country, reaped benefits from this.  However, it did not last for ever and also had disadvantageous effects on the country economy.

Due to the boom and many inappropriate policies introduced by government to guide the economy, distortion were introduced into the vulnerable to external stocks.

The oil boom of 1970’s brought fundamental changes in the patterns of the Nigeria economy.

First the oil boom resulted in heavy dependence of economy on crude petroleum export as the main sources of foreign exchange earnings and government revenue.

By 1980, and oil sector which accoutered for 22 percent o the gross domestic product (G.D.P) provided about 80 percent of government revenue and over 96 percent export earnings.

Secondly, the competitiveness of the agricultural sector in the international market was ended by the over valued naira exchange rate.  People turned collar jobs in offices.

This resulted to low productivity in the agricultural sector, which became so acute that Nigerian became heavily dependent on imported goods and agro allied individual inputs.

At that time, it was almost unbelievable that product like rice grow in Nigeria because almost every used imported product in their homes.

Infact using “made in Nigeria” product at times was a         sign of lack of exposure.

Exporter at that time, were compelled to surrender foreign exchange receipts to authorize dealers and because of the over valued Naira exchange rate, the official equivalent of the foreign exchange receipts often fell short of the cost of non oil exports.

However, the world oil market started  to collapse in mid 1981 and with this collapse, the economic crisis which was quite fierce gripped the country, though its magnitude and duration could not easily be measured or appreciated a the time.

This collapse together with the ineffective, adequate, inappropriate and indeed, sometimes, not well reasoned policies guiding the economy at that time led very serious economic collapse.  Throughout the early 1980’s the structural imbalance in the economy increased rapidly which resulted in persistent balance of payments deficits, rising external debts and in sustainable debt burden, currency over valuation declining production and of course, rising prices which have been the most evident even to the illiterate.  These problems in Nigeria were not made better by the developed countries who adopted protectionist policies for their economics.

The drought of 1983 brought with it poor harvest which was also a contributory factor to the inflation in prices. As this economic crises deepened, internal and external debts mounted rapidly and the inability to pay these debts increased rapidly and the inability to pay these debts increased just as rapidly.

The situation could just not go on.  The Nigerian Government then started to make efforts to find lasting, not short term, solutions to these problem which threatened to destroy an economy which had a lost of prospects once.  This led to the adoption of several monetary and credit policy measures in 1981 which were designed to provide an optimum level of bank credit and to channel such credit into the mere productive and small scale enterprises, which were sectors of the economy, as a means of raising the level of employment and output of goods and services.  They were also aimed at   reducing further the rate of price inflation and maintaining a healthy of balance of payment position.

However, these policy objective, were not achieved – a healthy balance of payments position was clearing not achieved.  Infact, it surveying from a substantial surplus in 1980 to huge deficit 1981 as result of a sharp decline of the country’s revenue from the oil sector.  There was ineffectiveness of import regulatory measures and therefore foreign expenditure increased greatly.

This led to the adoption of the import licensing programme in 1984. Under this programme, all imports were placed under specific import licensing as to reduce the volume of imported goods and as a result reduce external debt.  In 1985, the Federal Government declared a fifteen month economic emergency period during which specified proportions of worker’s salaries and wages, as well as companies. Profits were compulsory paid to the government.

These two programmes above were not efficiently restructuring the economy.  They had good effects on only some aspects of the economy.  This brought about more detailed search for more lasting solution to the economy’s problems.  As a result of this the Federal Government introduced the structural adjustment programme (SAP) in July, 1986.

As all other programme before the structural adjustment programme have not been effective in clearing the distortions in the economy.  This project will discuss this particular stabilization measure in greater detailed, more positively directed and is still in use in the economy of Nigeria today.

This project reviews the stabilization measures which have been introduced for balancing and improving the Nigeria economy from 1985 till date and examine the role of the Central Bank in implementing these measures.

The direct role of the Central Bank in the structural adjustment programme was programmed to include the design the implementation of the modalities for exchange rate policy, foreign exchange management, external debt management monetary and credit control and domestic monetary policy reforms.

The Central Bank also offers advice to the Federal Government in areas such as fiscal, external trade and other public sector policies.

In implementating and designing the modalities for the exchange rate policy, the Central Bank calls for bills daily from authorized dealers for available foreign exchange. Foreign exchange is sold to successful bidders, in effecting foreign exchange management, the Central Bank of Nigeria took measures to encourage the inflow of funds into foreign exchange market (FEM) from non-official sources.

The Central Bank in collaboration with the Federal Ministry of Finance also plays a role in the management of external debt, especially with respect to reducing the burden and volume (stock) of debt through debt rescheduling and debt conversion.  The policy of the economy is also formulated by the Central Bank of Nigeria to support the government strategies.

The main sources of authority for the administration of foreign exchange transitions in Nigeria is the exchange control Act 1962.  Under provision of this Act, authority for the grant of approvals in respect of foreign exchange transactions is vested in the Minister of Finance.  However, most of the functions in respect of private sector transactions, visible importer, education, medical, expatriate home remittances, travel, airline payments, other services etc. have been delegated to the Central Bank of Nigeria, which in turn has delegated approving authority for all but a few of these to the authorized dealers on foreign exchange.

 

  • STATEMENT OF PROBLEM

Due to the apparent and seemingly increasing distortions in the economy, such as the constant decrease in the value and purchasing power of the Naira rising price obvious loopholes in the management of foreign reserve and infact the impact of the structural adjustment programme on the masses people in Nigeria have resorted to the opinion that the Central Bank of Nigeria has not been and is not playing its role I the stabilization of the economy effectively.  A lay man who is not aware of the Central Banking system will also not be aware of the degree to which the Central Bank of Nigeria plays its role and this is a problem for the Central Bank even through the people who have this opinion are not to be blamed for it due to the lack of adequate communication between the Bank and Public.

 

  • HYPOTHESIS STATEMENT

This study will test the following hypothesis:

Main Hypothesis:     The central Bank of Nigeria is effectively playing its role in the stabilization of the economy.

The following question will guide the researcher in data collection process.

  1. What is the main function of the Central Bank?
  2. In the CBN actively involved in the development and growth of the economy?
  3. Does the Central Bank of Nigeria have anything to do with the management of money and capital market?
  4. Does the central Bank of Nigeria play a role in the debt rescheduling the debt conversion programmes?
  5. Does the Central Bank of Nigeria play a major role in the formulating and implementation of the        monetary policy?

 

 

 

  • OBJECTIVES OF STUDY

This project is aimed at educating Nigeria on the success of the stabilization measures introduced in the economy and to show the role played by the Central Bank of Nigeria.  This topic was selected by the author due to the appalling ignorance displayed by studies and a lot of the Nigerian citizen and infact, professionals in various fields including the business profession.

 

  • LIMITATION ON SCOPE OF STUDY

Due to the detailed nature of this subject, it will not be possible to write everything concerning the stabilization measures introduced by the government.

It would have been preferred to link the oil boom period     in detailed with the structural adjustment programme (SAP) period.

I will also scarified educating people on the effectiveness of all these measures and on possible alternatives which could be adopted by the government to help reduce the advance effects of these measures on the populace.

  • DEFINITION OF TERMS

Balance of Payment Deficit:  This occurs when the amount on the statement of total payment of foreign countries for imports, outflow of capital, and gold is more than the amount stated in the statement for total receipts from foreign countries for export, outflow of capital and gold.

Economy: A system for the management control and use of resource – money, goods and other resources of a community.

Economy Crisis:  Occurs when the economy of a country is facing a difficult time and is in danger with regards to the future.

Exchange Control:  The system of protecting gold and reserve of foreign currency.

Exchange Rate:  The relation in value between kinds of money used in different countries.

Foreign Exchange:  The foreign equivalent for an amount of money of a country.

 

Monetary Policy:  A measure design to regulate and control the volume, cost and direction of money and credit in the economy of a country.

Policy:  A plan of action especially one made by a government political partly etc.

Stabilization Measures:  Steps taken to correct the imbalance in the economy of a country when distortions are detected.

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MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

Enter Amount

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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THE ROLE OF COMMERCIAL BANK IN FINANCING SMALL SCALE INDUSTRIES (CASE STUDY OF UNION BANK PLC. ENUGU)

THE ROLE OF COMMERCIAL BANK IN FINANCING SMALL SCALE INDUSTRIES (CASE STUDY OF UNION BANK PLC. ENUGU)

ABSTRACT

It is to review what essentially constitutes small scale industries for an adequate discussion of the issue involved:- financing of small scale industries by the commercial banks. Often, there is no single criticism for classification of business unit as small scale.  The central Bank of Nigeria for example defines small scale enterprises as any enterprise whose annual turnover is less than (N 500,000) five hundred thousand Naira as small scale.

Furthermore the National Directorate of employment (NDE)defines it to include projects with capital investment of below five thousand Naira (N500) and a staff strength of three (3) persons. While the centre for management Development (CMD) gave the definition of small scale industry in the policy proposal it submitted to the federal Government in June 1982 as follow; “A small scale industry in a factory or production type of operations, employing up to fifty (50) full time workers. Investment in plant and machinery but excluding land and building shall not exceed five hundred thousand (N500,000) Naira power, plant and machinery are utilized its operations.

In a nutshell, a small- scale industries are classified in the following criterion; initial capital outlay, ownership structure, initial capital outlay, ownership structure, management style, profit level market share, number of employees and total assert size etc.

The objective of this project work will include the extent to which small scale industries in Nigeria have been able to obtain loans and advances from Nigeria commercial banks as a major source of finance to the economy and many others.

The project was carried out by using Union Bank PLC, Okpara Avenue, Enugu as a case study.

CHAPTER ONE

  • Background of study
  • Statement of Study
  • Objective of the study
  • Scope and limitation
  • Research questions
  • Hypothesis
  • Significances
  • Definition of terms

CHAPTER TWO

  • Introduction
  • Meaning of small scale industries
  • Government policy
    • Projection and promotion
    • Monetary and Fiscal policies adopted by government
    • Effects of Government Polices on small scale industries
  • Financing
  • Problems facing the small scale industrialists
  • Improving funding to small scale industries

CHAPTER THREE

  • Methodology

3.1     Research design

  • Area of the study
  • Population of the study
  • Sample and sampling procedure
  • Instrument for data collection
  • Validity of the research instrument
  • Reliability of the research
  • Method of administration of research instrument
  • Method of data analysis

CHAPTER FOUR

  • Data presentation and results
  • Testing Hypothesis

CHAPTER FIVE

5.1     Summary of Finding

  • Recommendation
  • Conclusion
  • Bibliography

CHAPTER ONE

 

INTRODUCTION

  • BACKGROUND OF STUDY

The concept of self-reliance has occupied a place in the literature of economic development over the years, basically as a manifestation of the various attempts by the developing world to state new economic strategies, which world relieve them form economic dependence of their fromer colonial masters in Europe. Today, some years after, the concepts of self reliance continues to be misunderstood in its fundamental ramifications and has remained elusive in large sections of the developing world.

In Nigeria in particularly, neither the mixed economy approach to development nor the capitalist approach appears to have respond to the dictates of economic self reliance.

Consequently, in pursuit of self reliance in the developing world particularly in Nigeria, the central government, enacted a decree called ‘Enterprises promotion Decree, when there was need for small scale enterprises owned ad managed by Nigerians to be promoted.

The importance of small-scale enterprises in the promotion of economic development has always been at the forefront of development strategies.

However, many developing countries have failed to adopt this strategy owing to their belief that it is a relatively slow process of industrialization. But in the recent times, due to the scarcity of foreign exchange that attention began to be focused once again on development of indigenous that will be local resource based.

Without the development of small-scale industries in Nigeria, that nation’s quest for industrialization will certainly remain forever at a stake.  It is the humble opinion of the researcher that future  developments in our industrialization must address the basic issue of creating linkages within the economy to begin to produce real inputs to our manufacturing activities.

Priority attention must therefore be given to these industries for which domestic inputs could easily be produced. This automatically brings to mind the Agro-Allied industries like food processing and other by products objective should be to maximize the value added in their processing and manufacturing as final goods or immediate inputs.

Empirical evidence indicates that strong incentives should be given to small scale industrialist to enable them meet the food requirement and also to promote for sustained industrial growth.  For instance, the market determined exchange rate through SFEM with its resultant high cost of imported inputs might serve as an impetus fro industrialist to intensify their search for local substitutes.

In 1971, the government of the then East central state statutory enacted an edict establishing on office which was hither to a sub-system of the ministry of commerce ad industry to be known as fund for small scale industry credit scheme (FUSI) to give credits for prospective investors to enable them establish their business in a bid to moving the country towards industrialization.

As at march 9th 1992, loans approved for small scale projects in Enugu State by Nigerian Bank for commerce and industry (NBCI) amounted to N13,345.40.

Similarly, in the circular on small scale and medium enterprises loan scheme released by central Bank of Nigeria in February, 1989, it was reveal that world bank has granted a loan of U.S. $270 million to the federal government for the development of small scale and medium scale enterprises in the private sector.

However, the very slow rate of growth of the industrial sector, the inability of the sector to adequately provide and satisfy the need of the economy, the over dependence of the industrial sector as well as the nation at large on foreign goods, praised a necessary cause for concern.

The means of helping small-scale industries to acquire the much-needed finance for growth and development especially form the banking industry from the background of this research study.

 

  • STATEMENT OF PROBLEM

Small-scale industry like any other business cannot be carried on extensively unless funds are available for maintenance and procurement of equipment and necessary inputs.

Three types of credit are usually required: short-term credit: this type of credit is used to yearly operation until the products or proceeds form the industry are sold: the amount involved s usually small but lock this type of credit is most accurately felt by small scale industrialists who have little or no savings with which to draw.

Medium – Term Loan: This type of loan is for more than one-year maturity period by not exceeding three to five years. This is mostly required for acquisition of inexpensive equipment with relatively short life span.

Long-term Loan:          This type of credit is necessary for acquisition of major industrial machines, improvement on industrial equipment building and land. Small scale industrial credit therefore can be a powerful instrument in bringing about a revolution in industrial practices and in firms productivity especially if supplied is sufficient quantity and used efficiently.

It is well known that the development of small scale industries and attainment of self reliance in industrials production coupled with the provision of raw materials for other industries is among the top priorities of the successive government in the country.

Furthermore, the continuous escalation of Nigeria’s import bill and unemployment are a threat to the country. It is therefore necessary for all to put heads together to formulate a meaningful policy that will stimulate a positive take off of our small scale industrial sector such ideals, this work therefore, aims to put across at the end.

The study therefore, identifies small scale industrial financing by Union Bank Enugu, Nigeria PLc as part of the wider subject of industrial development because finance is just one of the factors of production.

 

  • OBJECTIVE OF THE STUDY

The objective of the study includes

  1. To evaluate the extent to which small scale industries in Nigeria have been able to obtain loans and advances from Nigeria commercial banks as a major sources of finance in the economy.
  2. To examine how commercial banks in Nigeria assist the government in promoting the small industries.
  3. To know the stage of small scale industrial development and what ought to be done to reduce the problems facing the sector.
  4. To ascertain the extent to which the commercial banks have helped to finance small scale industries and problems hindering such
  5. To identify the problems encountered by the small scale industrialists in obtaining funds from the commercial banks.
  6. To evaluate various measures introduced to boost industrial production and its financing and how this have affected the industrialization of the set goals.
  7. To determine the cause of variability in small scale industrial financing by commercial banks

 

  • SCOPE AND LIMITATION OF THE STUDY

The study focused attention on the evaluation of small-scale industries obtaining loans form Union Bank PLC, Enugu.  The research also covers selected small scale business in Enugu.

 

LIMITATIONS:

The researcher encountered the following limitations or rather limiting factors in the process of giving this work a defiled treatment;

Money: The availability of money is to take care of financial angle involving, the collection of data and the printing, was not regular.  However, with a lot of dedication, the study was successfully completed.

Time: Due to the work involved in classes, it was not easy to squeeze out time to adequately complete the project and as a result the project took longer time than necessary.

Availability of Materials: I also had problems with the bank official because they were not willing to disclose some reserved information about their dealing with their customers. The researcher had to travel to various places in the quest to collect material for the study. There was very expensive both in time and in money especially.

 

  • RESEARCH QUESTIONS
  1. Do the financing of small-scale industries by commercial banks boost the production capacity of small-scale industries.
  2. To what extent do the Banking industries channel their investment to the small industries.

iii.      Do the capacity Utilization of our small to produce more and thereby reducing the demand for foreign goods.

  1. Must small scale Business be financed by commercial banks alone
  2. What can be the hindrance to the commercial banks financing small scale industries.

 

  • HYPOTHESIS

Ho:     The Union Bank of Nigeria PLC, Enugu Lending to small scale industries are affected by the attitude of their customers and other influences.

H1:     The Union Bank of Nigeria PLC, Enugu Lending to small scale industries are not affected by the attitude of their customers and other influences.

Ho:     The role of commercial Bank is to increase the productivity of the small-scale industries.

H1:     Commercial Banks have nothing to do with increased productivity of the small scale industries

Remember:

Ho:     Represents null hypothesis

H1:     Represents Alternate hypothesis

 

  • SIGNIFICANCES OF THE STUDY

The development of small scale industries and self reliance in industrial and food production, coupled with the provision of raw materials for other industries is among the priorities of the Nigerian Government in the successive development plans.

Against these backgrounds, the review of the financial problems facing small-scale industries is essential.  An examination of union bank of Nigeria PLC Enugu performance in financing small scale industries will enable us find a large extent why there has been a decline in industrial output in recent years.

 

This study to a every large extent help;

  1. Boost the production capacity of small scale Agricultural and allied industries.
  2. Emphasize the need for re-allocation of our resources to the more productive sectors f the economy.

 

  • DEFINITION OF TERMS:

Small Scale Industries: the Central Bank of Nigeria defines this for monetary purposes in terms of their annual turnover which is not more than five hundred thousand Naira (N500.000).

LOAN: A sum of money unit at an interest.

LONG TERM CREDIT: This type of credit is more than three years maturity. It is used to invest in long-term project.

MEDIUM TERM CREDIT: This type of credit is more than one year maturity but not exceeding three years.

SHORT TERM CREDIT: This has a very short life span. It last for months and should be matured for repayment in less than one year period of a time.

ROLE: An actor’s part in a play, person task or duty, in an undertaking.

BANK:  An established for keeping money and valuables safely, the money is being paid out on the customers order (by means of cheque or cash)

EFFICIENT:  Producing satisfactory result

COMMERCIAL BANKS:- This is the financial intermediary that collects money customers of the general public for safe keeping on their various accounts and make them available when required.  It offers loan at an interest to the customers and also provides the required security.

MORATORIUM:         Temporary agreed ban on an activity

GRAPPLING:     Hold firmly, seize.

 

REFERENCES

Oxford Advance Learner’s Dictionary of

 

Perry F.E. 1982 Elements of Banking Fourth Edition

 

Okonkwo O. Elements of Banking and Economics

 

Nnenna B. Ani 1991 Entrepreneurial Development first                    Edition

Download our android mobile app for more materials

ORDER NOW

COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

MAKE YOUR PAYMENT  INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER:  0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

Enter Amount

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE