A CRITICAL ANALYSIS OF THE ROLE OF BANK OF INDUSTRY TOWARDS THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA
1.1 BACKGROUND OF THE STUDY
study of the role of government agencies towards the development of small scale
enterprises is quite interesting. These enterprise have a very important impact
on the life of everybody in the society. Small independence business are
everywhere and in every line of work, they can also be seen in every community.
This business is as old as man. So virtually everything is done in life
involved the element of business. Small scale enterprise constitutes an
importance in todays business activities or system. The role of small scale
enterprise in our economic history however, has been one of the distribution
its relative importance has decline with the growth of the big business, small
scale business is till major contribution to the countries economy. Business in
today is made up of both large and small business. Today small scale enterprise
have to enjoy more prestige than ever before because of its vital contribution
to the nations economy. So vital is small scale business. There are successful
small scale enterprise operating like the manufacturing plants, retails,
stores, wholesales, drugs, computers, construction firms and hundred of other
type of business.
population was estimated to be 140 million in 2007 with about 75% of this made
up of small scale enterprise operators. Lack of full study of government
agencies in the development of these enterprises especially, the financial
institution made it impossible to know
the size, structure and function of these small scale business to the
development of the economy.
agencies are charged with the responsibilities among others to carryout duties
and deliver utilities as may be regulated from time to time on behalf of the
government for the purpose of uplifting the standard of living. Government
agencies such as bank of industry (BOI) is charged with the responsibility like
provision of medium and long term finances by way of equity funding, loan and lease financing, guarantees, investment in corporate
bonds business development services, co-financing, working capital finance
and promotion of small scale
enterprises and industries project, co-sponsoring financial institutions and
small scale enterprises.
bank of industry was formerly originated from Nigerian industrial development
bank limited was established in 1964 following the reconstruction of the
investment company of Nigeria limited (ICON) NIDB was set up primarily to
accelerate Nigerian industrialization.
bank was to conceive shortly after Nigerian attains independence in 1960. The idea
was to set up development financial institution to serve as a dedicated window
for channeling fund from within and outside the country to the young nation
states industrial sector. Economic reconstruction fund (NERFUND) in the last
regime of Obasanjo administration is renamed as BOI.
OF THE PROBLEM
government agencies have undergone number of re-organization especially bank of
industry (BOI) which affect their forces and activities that leads to effective
performance and lack of proper control on their activities.
most obvious problems of Bank of Industry (BOI) is how to produce or provide
efficient financial resources technical assistance, security on loan given out
to customer (SSE) evaluating of project that are financed which may take more
time than stated at the beginning.
the project time table, which depends on nature and complexity of the project,
it may take one to two years sometimes longer from when project was identified to
when it was commissioned.
the part of small scale enterprises (SSE) how effective are they utilizing the
services rendered to them by the bank of industry (BOI). Also are they able to
cope with the policies adopted by this agencies (BOI) in obtaining loan and
other services rendered such as interest rate on capital collateral facilities
and the role of government.
OF THE STUDY
aims and objectives of the study is to analyse various role played by (BOI) in
developing of small scale enterprises as well as the activities of government
policies such s provision of infrastructural facilities, provision for local
finance, facilitating and funding industries and funding institutions like the
(CIRD), (FIRO) and (SSICS) to what does the policies of government are achieved
towards developing Small scale enterprise.
is also to analyze the various ways by which bank of industries (BOI) has
contributed effectively to the development of he economy through the role
played in financing and provisions of other necessary features for development
of Small scale enterprise.
OF THE STUDY
significance of the study is to serve a reference material to other students
who may write on, make research on similar topic and serve as recommendation to
bank of industry (BOI) in discharging its functions to the customers as well as
the mode of rendering services to the customers small scale enterprise
on the subject matter, the researcher prefer to use the following questions for
What are the problems of small scale
What are the roles of small scale?
banks of industry the sole financier of small scale enterprise
government have favourable policies towards development of small scale
OF THE STUDY
study will cover the area of activities and role played by the government
agency (BOI) in developing small scale enterprises.
OF THE STUDY
is not an easy assignment for a student to conduct a research work without
encountering two or more problems one of such problems faced by the researcher
was lack of adequate information which the researcher could obtain for
necessary research work as some of the organization officials formed to be very
busy and required for some signatory from the department before giving out
information to be used.
Small Scale Enterprises (SSE): a
type of business that is run and managed by a single person
NIDB: Nigeria Industrial Development Bank
NBCI: Nigeria Bank for Commerce and
NERFUND: National Economic reconstruction Fund
FIIRD: Federal Institute of Industrial
SSCF: Small Scale credit fund
Interest: Certain amount that are charged on
gradual growth of some thing, so that it
becomes more advanced, stronger
Community: Local country side