ABSTRACT
The study was focused on the study of loan syndication in the
Nigeria financial market and its impact on the economy. The study
examines the extent to which loan syndication has contributed to the
performance of the Nigeria enterprise. Data was collected through the
administration of the questionnaire numbering eighty (80) of which
sixty-seven (67) were answered and returned. The response form the
return questionnaire form the data for the research work.. This data
were analyze on the bases of simple percentages while the Chi – square
were employed in the test of the hypothesis
The study reveals that loan syndication has improved the performance
of the Nigeria enterprise. It has not been significantly being applied
in the basis of the finding made. It was recommended that participating
bank in loan syndication business should endeavor to set up distinct
department or section with good management structure capable of dealing
with the cooperate borrowers seeking for syndication loans and that
banks should be involved in a lot of innovation programme that will
increase their deposit base in order to comprehensively eliminate the
fear of a possible liquidating that may arise from making syndication
loan which one major reason for which should shy away from providing
adequate syndication facilities to industrialist.
TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE:
1.0 Introduction
1.1 Statement of problems
1.2 Objective of study
1.3 Significance of study
1.4 Research hypothesis
1.5 Scope and limitations of this study
1.6 Definition of terms
CHAPTER TWO:
2.1 Review related to literature
2.2 Background of the loan syndication
2.3 Other financial market
2.4 Internationalization of the capital market
2.5 Purpose of syndicating loan
2.6 Parties to loan syndication
2.7 Contribution of syndication in project financing
2.8 Problem of prospect of loan syndication in the nigeria financial market
CHAPTER THREE:
3.1 Research design and methodology
3.2 Sample procedure
3.3 Data collection
3.4 Data analysis techniques
3.5 Determination of the sample size
CHAPTER FOUR:
4.1 Data presentation and analysis
4.2 Test of hypothesis
CHAPTER FIVE:
5.1 Summaries, conclusion and recommendation
5.2 Findings
5.3 Conclusion
5.4 Biography
5.5 Questionnaires and appendix
BIOGRAPHY
APPENDIX/QUESTIONNAIRE
CHAPTER ONE
BACKGROUND OF THE STUDY
The origin of the syndication loan was traced to the bankers of the
middle age who distributing their financial risk among several house to
support the trade flow. This system was more on a participating basis,
then a formalize syndication as the lender did not adopt one common loan
documentation.
In Nigeria loan syndication can be trace to the 60’s. When a
consortium of the commercial bank and the acceptance house discounted
trade bills for the marketing board under the produce bill financial
scheme, formalize loan syndication came into been during the oil boom of
70’s where there was need for adequate capital to finance the
industrialization programme.
During the programme, few of the merchant banks have been incorporated.
Loan syndication has assumed international dimension because of he
need to provide the capital to finance the fast growing world economy.
An international syndication credit is managed and was under written
by one more financial institution normally from access t more than its
currencies of domicile
STATEMENT OF THE PROBLEMS
The management of loan syndication in the Nigeria financial market
has always been the a problem to the enterprise and that is why I am
conducting a research on the topic looking bank as the origin of the
syndicate loan which traced back on the bankers of the middle age who
distributed their financial risk amongst several house to support the
trade flow. This system was more on participating basis than on
formalize syndication, as lenders did not adopt one common loan
documentation.
The problem mogul comes from the delay in packaging and putting the
credit in place before disbursement to the borrowers. Some of the bank
is invited by the lead bank to participate in syndication by decline and
come up with reasons like loan growth constraint, liquidity problem
etc. some syndicated loan takes up to two yeas to conclude. After the
loan has been disbursed, another problem can arise in cooperate attitude
of the borrowers in meeting and condition stated in the loan agreement
such as submission of progress report quarterly management account. The
payment of the interest and principle when due occasionally pose some
problems. The borrowers may be facing a liquidity problem, low sale and
income earn, diversion of working capital into acquisition of fixed
asset etc, such problem is not properly handled may lead to rescheduling
and restructurings and refinancing the loan.
OBJECTIVE OF THE STUDY
a. To ascertain the adequacy of the syndicated loan provided by the bank to the industrialist.
b. To assertion the effect of long term syndicated loan on the liquidity position of the bank in Nigeria.
c. To ascertain the extent to which management structure has affected loan syndication business in Nigeria.
d. To determine the increase of disagreement between the lead bank and the participating bank in loan syndication business
e. To identify the problem encountered in the documentation process of syndicating loan.