THE ROLE OF BANKS IN INDUSTRIAL DEVELOPMENT OF NIGERIA
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This research work tries to give an insight into the issue of the role of Banks in industrial development of Nigeria. Since 1982 when the petrol Naira started flowing. The project work is aimed at analyzing and ensuring a diversified economy, industrialization also accelerates the economic development of a country, which sound a policy that will keep the nation’s economy.
This is work is organized into five chapter
Chapter one deals with the introduction, Background, statement of problem, purpose of study, significance of the study, limitation and definition of terms.
Chapter two involves a review of some related literature the for industrialization, the need to improve compettileness, the need to improve operational capacity, and problems of industrialists and industrialization.
Chapter three treat the Research the signed and method of collection, source of data used and location of data.
Chapter four deals with the summary of finding, low work is observed, and finally the last chapter, which contain the Recommendation, conclusion and Bibliography which end the this project.
TABLE OF CONTENT
1.0 INTRODUCTION 7
1.1 BACKGROUND 7
1.2 PURPOSE OF THE STUDY 11
1.3 STATEMENT OF THE PROBLEM 11
1.4 SIGNIFICANCE OF THE STUDY 12
1.5 LIMITATION OF THE STUDY 12
1.6 DEFINITION OF TERMS 13
CHAPTER T WO
2.0 REVIEW OF RELATED LITERATURE 17
2.1 THE NEED FOR INDUSTRIALIZATION 17
2.2 THE NEED FOR BANKS INVOLVEMENT
IN INDUSTRIALIZATION 24
2.3 THE NEED TO IMPROVE COMPETITIONS 28
2.4 THE NEED TO IMPROVE OPERATIONAL CAPACITY 28
2.5 THE PROBLEM OF INDUSTRIALIZATION AND
3.0 RESEARCH DESIGN AND METHODOLOGY 37
3.1 SOURCE OF DATA 37
3.2 LOCATION OF DATA 38
3.3 METHOD OF DATA COLLECTION 38
4.1 SUMMARY OF FINDING 41
5.1 RECOMMENDATION 45
5.2 CONCLUSIONS 47
5.3 BIBLIOGRAPHY 49
Nigeria, since the oil boom in the early 80’s has been a victim of a monolithic economy and since then has been enjoying the so-called petrol Naira without adequately evolving a sound policy that will keep the nation’s economy in a firm foundation of steady growth.
Though the country recognized the importance of industrialization as far back as 1982 yet when the petrol naira started flowing in, we were blind folded as to ignore the importance of establishing industries to diversify the economy. Now the petrol naira is no more and the future out look is bleak, the need for a diversified economy became the subject matter of many government policies and action.
This leads us to one for the ways for solving the problem, and that is industrialization. Apart from ensuring a diversified economy, industrialization also accelerates the economy, industrialization also accelerates the economic development of a country. Infact the basic premise is that if a country wishes
to accelerate the over all rate of growth of G.N.P and this has to be reflected in an increasing dominating role of manufacturing industry in the total economy.
This also emphasizing on the role which banks plays in order to improve the growth of industries in Nigeria by explicable manifesting ho w the roles banks can be employed for the growth and development of industries. It also emphasizes on the role in which banks play in the industrial development of Nigeria as it could be seen through the sustenance of industrialization in the country.
More so, industrialization ensures export expansion and import contraction coupled with the fact that it stimulates foreign exchange earrings, international recognition an the provision of employment opportunities for the teeming population.
Industrialization has been proved beyond doubts as very important for a nation’s survival therefore it is pertinent that we explicable manifest how the role of banks an be employed for the development of these industries though the country recognized the importance of industrialization as far back as 1964 yet when the “petrol Naira” started flowing in, they were blind folded as to ignore the importance of establishing industries to ensurear diversified economy.
Also the banks provide overdrafts facilities, which are necessary to finance the working capital of the business. An over draft could be defined as arrangement whereby the banks allow the customer to overdraw his account up to a credit position at the end of the period. Apart from granting loans and over draft facilities there are other roles which includes professional advice, reasing and factoring, also extend into invoice discounting hire purchase, bill discounting hire purchase, bill discounting service and above all the determination of the actual external funds required by a borrow these are accepts of such services which help industrialization grow or expand sight should not e lost of the fact that industrialists and industrialization suffer thri own problems, which should be analyzed ans solved to ensure industrial development.
These problems of obtaining capital from banks and operational problems are caused by the dictates of the Nigeria environment and society. It has been noticed that the level of banks industrial financing has been very poor compared with what obtains in industrialized nations such as Germany, Untied states of America, V.S.S.R and t he united kingdom to mention but a
few. The central bank of Nigeria should step up their moral suasion policy so or make these banks especially the commercial Bank to increase the level of their financing emphasis should be placed on medium long term loans so as enable the industries concretized their form of outputs with the funds available from the banks, the industrialists should be made to judiciously invest them with other important of sound firm and concerete foundation must have been laid for the industrial development of the country,
Banking industrial, the food processing industry the sugar processing industry the tobacco manufacing industry e.t.c.
1.2 PURPOSE OF THE STUDY
(a) To analyze the role of banking industries
(b) To example the need for industrialization
(c) To trace the diversification of Economic development
(d) To have a look with export expansion and import contraction
(e) To stimulate of foreign exchange earrings and international recognition.
(f) To find the need for Banks involument in ind