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 Problem
Objectives of the study
Significance of the study
Scope of the Study
Definition of Terms
CHAPTER 2: REVIEW OF RELATED LITERATURE
Historical Background of Economic Activities
Importance of finance to small scale industries
The major forms of financial assistance
role of books as financial system in financing small scale
Problems of economic activities in Nigeria
of Nigeria bank for commerce and industry (NBC) as source of finance to
Disadvantage when compare to govt. Financing
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 Instrument
Method of Data Analysis
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
Analysis and Interpretation of Response
Test of Hypothesis
Summary of Results
CHAPTER 5: FINDINGS, CONCLUSION AND RECOMMENDATION
Discussion of Finding
Limitation of the Study
Suggestion for Further Study/ Research
Background of the Study
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
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
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.
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
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
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.
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
· 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
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 laid.
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 problems.
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.
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
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
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).
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.
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
Role: for 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 the future.
Finance: This is concerned with available money and capital goods for investment in industries to boost production.
Industrialization: Can be defined as a strategy through which none industries one encouraged to sprung up.
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
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:
- Do you consider banks necessary?
Yes [ ] No [ ]
Have there been any changes of the financial system mode of operation
Yes [ ] No