BANKS PARTICIPATION IN INDUSTRIAL DEVELOPMENT IN NIGERIA

By

EZEH KINGSLEY .A.

Presented To

Department of Accountancy

TABLE CONTENT

Title page

Approval page

Dedication

Acknowledgement

Table of contents

CHAPTER ONE

1.0 INTRODUCTION

1.1 STATEMENT OF PROBLEMS

1.2 OBJECTIVE OF THE STUDY

1.3 SCOPES AND LIMITATION OF THE STUDY

1.4 DEFINATION OF TERMS

CHAPTER TWO

2.0 THE NEED FOR INDUSTRIALIZATION

2.1 THE ROLE OF INDUSTRIALIZATION

2.2 THE NEED OF BANKS INVOLUEMENT IN INDUSTRIALIZATION

2.3 THE PROBLEMS OF INDUSTRIALIZING AND INDUSTRIALIST IN NIGERIA

CHAPTER THREE

3.1 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

3.2 FINDINGS

3.3 CONCLUSION

3.4 RECOMMENDATION

BIBLIOGRAPHY

CHAPTER ONE

1.0 INTRODUCTION

In Nigeria since the oil boom in the early 70's has been a victim if monopolistic economy and since then we had been enjoy the so called "PETRO NAIRA" without adequate involving in a sound policy that will keep the nation economy in a firm foundation for study growth. Though, the country importance of industrialization as for back as 1964, yet without "PETRO NAIRA" started flowing in they have blind fold as to ignore the important of establishing industries to ensure a diversified economy.

Industrialization has been approved beyond reasonable doubt as very crucial for a nation to survived henceforth it is pertinent that we explicable manifest how the role the banks can be employed to the development of these industries.

In doing these, we will reach to an extent of study the medium and small-scale industries which are very crucial to economy. To end this, Banks find it difficult to top lure prospective investors having lost the confidence and credibility respond on them to save.

Consequently, this militates against the proper development of industries in any economy like Nigeria. In the light of the above importance of industries they need assistance for their survival. To achieve this, however their activities growth and development need to been matched with financial sound system.

1.1 STATEMENT OF PROMBLES

In this section, the researcher focused on the prevalent problems that led to the services which bank performs for sustenance of industrialization in the economy. These services could be seen as the provision of capital for industries in the form of loan such as long term and medium, which the industries could use for it financing.

Also an overdraft is an arrangement whereby banks could allow the customers to overdraw his account up to certain him and within a specified agrees to bring the accounts back to credit position at the end of the period.

Apart from granting loan and overdraft facility, the banks can equally render professional services, advice leasing and factoring. Also, Banks can equally extents to invoice discounting, hire purchases, hill discounting services and above all the determination of achial extent of funds required by a borrower. These and many more are the services which help industrialization growing higher. Sight should not be lost of the fact that industrialization and industrialist suffer. In cognizance of the aim of the topic in particular the extend to which Nigeria developed and commercial banks have through the provision of financial aid suffer their own problem which could be analyzed and solved to ensure industrial development. The problem such as obtaining capital from banks and operational problems, which could cause by the dictates the Nigerian's environment and society. It has been noticed the level of "banks" of industrial financing has been very poor compare with what is obtained in industrialized nation such as Germany, U.S.A, USRR and finally U.K to mention just a few.

The central bank of Nigeria should set up its moral succession policy so as to enable banks especially the commercial banks to increase the level of its financing to industries. Emphasis should be place on medium and long-term loans so as to enable these industries concretize its investment for better result in the form of output.

Moreover, without fund available from the banks, the industrialist should be made to judiciously invest then with other crucial services. These banks should display for its industries and a sound, firmly and solid foundation must have to be laid for industrial development of the country in particular.

1.2 OBJECTIVE OF STUDY

In the development of industries by banks, some strategies can be use, but it defer from bank to another bank depending on the method used such bank.

STRATEGIES OF DEVELOPMENT

The answer as to what part of development or under development economy like ours should be adopted is not straight forward as it may seen. The government can confine its role fairly strictly to the provision of infrastructure services such as roads, bridge and electricity etc. In the early stages government has to take a very strong and initiative but will have to reside gradually into the other background and lend over to private enterprises.

A second strategy is to envisage the extension of the private sector of the economy of a country. This was the strategy adopted and advance by Soviet Russia.

The third possible strategy attempts to a middle course between private and public enterprises. However, another means is "Mixed" through the establishment of joint companies of state company working side with private once.

However, in view of these, it ought to be understood that no country can be rigid in its selection on what strategy to be modified with time in the light of the above experience. Thus with developing country like Nigeria, the government will have to spear head industrialization. Ceteris paribus pragmatism to another, concept is the only sensible target for any way in which industrialization can be achieved as fast as possible.

Therefore, there is urgent need for the government to make several assumption about political natural condition to which industrialization process be implemented since, there are various method of arresting this need as deficient political system exist, thus socialist, capitalist and mixed economy system.

Furthermore, economic development of any economics is likely building a business from scratch. Certain key factors must be in place for growth and development to be achieved.

Finally, there has to be a vision a national vision in a dream, which the leader particularly, have about nation's future it must be a direction in which the nation should be headed in a long-term and to see the nation becoming in Fify-Hundred in a year time economically.

1.3 SCOPES AND LIMITATION OF STUDY

In a study of this nature, one would like to accumulate data from many areas. But, in view of length of time allowed for this research such a wide ranger sample study was almost external difficult. The researcher, therefore, concentrated his fieldwork in Enugu metropolis. The choice of Enugu metropolis was based on the time factor allowed and upon practical consideration including the fact that the researcher knows almost everything about Enugu metropolis.

Besides, there were many other problems that stemmed up during the research work in which some of them are as follows:

FINANCIAL CONSTRAINT. A student, there was not enough capital to spend in transport and fact finding and borrowing of necessary literature that would have helped in the writing of this research work.

MANAGEMENT CONSTRAINT: The respondents, especially the branch manager, did not co-operate as was expected. Also the workers is the different department visited were as well reluctant in answering some of the question asked.

All this problems not with standing and not prevent the continuation of the research work.

1.4 DEFINATION OF TERMS

In order to avert possible understanding of some points of the researcher in this work, by the reader, some of the major terms are defined in the context they have been use here, which may or may not conform with the common every day usage.

AVERT: To prevent something bad or dangerous from happening.

BANK: An organization that provide various financial services; For Example they are incharge of keeping or lending money.

BOOM: Sudden increase in a trade and economic activities such period in a period of wealth and success.

COGNIZANCE: Knowledge or understanding of something

ENVISAGE: To imaging what will happen in future.

INDUSTRIALIST: A person who own or run a large factor or industry.

JUDICIOUS: Careful and sensible showing of good judgment.

PRAGMATISM: Thinking about solving a problems in a practical and sensible rather than by having fixed ideas and theories.