A Critical Analysis Of The Role Of Bank Of Industry Towards The Development Of Small And Medium Scale Enterprises In Nigeria

A Critical Analysis Of The Role Of Bank Of Industry Towards The Development Of Small And Medium Scale Enterprises In Nigeria

Background Of The Study

The study of the part of government agencies towards the development of small scale enterprises is relatively intriguing. These enterprise have a veritably important impact on the life of everybody in the society. Small independence business are far and wide and in every line of work, they can also be seen in every community. This business is as old as man. So nearly everything is done in life involved the element of business. Small scale enterprise constitutes an significance in moments business conditioning or system. The part of small scale enterprise in our profitable history still, has been one of the distribution and donation.

Although its relative significance has decline with the growth of the big business, small scale business is till major donation to the countries frugality. Business in Nigeria moment is made up of both large and small business. moment small scale enterprise have to enjoy further prestige than ever ahead because of its vital donation to the nations frugality. So vital is small scale business. There are successful small scale enterprise operating like the manufacturing shops, retails, stores, wholesales, medicines, computers, construction enterprises and hundred of other type of business.

Nigeria population was estimated to be 140 million in 2007 with about 75 of this made up of small scale enterprise drivers. Lack of full study of government agencies in the development of these enterprises especially, the fiscal institution made it insolvable to  know the size, structure and function of these small scale business to the development of the frugality.

Government agencies are charged with the liabilities among others to carryout duties and deliver serviceability as may be regulated from time to time on behalf of the government for the purpose of upping the standard of living. Government agencies similar as bank of assiduity( BOI) is charged with the responsibility like provision of medium and long term finances by way of equity backing, loan and parcel backing, guarantees, investment in commercial bonds business development services, co-financing, working capital finance and    creation of small scale enterprises and diligence design, co-sponsoring fiscal institutions and small scale enterprises.

This bank of assiduity was formerly began from Nigerian artificial 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.

The bank was to conceive shortly after Nigerian attains independence in 1960. The idea was to set up development fiscal institution to serve as a devoted window for channelizing fund from within and outside the country to the youthful nation countries artificial sector. profitable reconstruction fund( NERFUND) in the last governance of Obasanjo administration is renamed as BOI.

Statement Of The Problem

utmost government agencies have experienced number ofre-organization especially bank of assiduity( BOI) which affect their forces and conditioning that leads to effective performance and lack of proper control on their conditioning.

The most egregious problems of Bank of Industry( BOI) is how to produce or give effective fiscal coffers specialized backing, security on loan given out to client( SSE) assessing of design that are financed which may take further time than stated at the morning.

Also the design time table, which depends on nature and complexity of the design, it may take one to two times occasionally longer from when design was linked to when it was commissioned.

On the part of small scale enterprises( SSE) how effective are they exercising the services rendered to them by the bank of assiduity( BOI). Also are they suitable to manage with the programs espoused by this agencies( BOI) in carrying loan and other services rendered similar as interest rate on capital collateral installations and the part of government.

Objects Of The Study

The points and objects of the study is to assay colorful part played by( BOI) in developing of small scale enterprises as well as the conditioning of government programs similar s provision of infrastructural installations, provision for original finance, easing and funding diligence and backing institutions like the( CIRD),( FIRO) and( SSICS) to what does the programs of government are achieved towards developing Small scale enterprise.

It’s also to dissect the colorful ways by which bank of diligence( BOI) has contributed effectively to the development of he frugality through the part played in backing and vittles of other necessary features for development of Small scale enterprise.

Significance Of The Study

The significance of the study is to serve a reference material to other scholars who may write on, make exploration on analogous content and serve as recommendation to bank of assiduity( BOI) in discharging its functions to the guests as well as the mode of rendering services to the guests small scale enterprise

Exploration Question

Grounded on the subject matter, the experimenter prefer to use the following questions for exploration findings;

What are the problems of small scale business?

What are the places of small scale?

3. Are banks of assiduity the sole financier of small scale enterprise    Â

4. Does government have favourable programs towards development of small scale enterprise

Scope Of The Study

This study will cover the area of conditioning and part played by the government agency( BOI) in developing small scale enterprises.

Limitation Of The Study

It isn’t an easy assignment for a pupil to conduct a exploration work without encountering two or further problems one of similar problems faced by the experimenter was lack of acceptable information which the experimenter could gain for necessary exploration work as some of the association officers formed to be veritably busy and needed for some signatory from the department before giving out information to be used.

Description Of Terms

Small Scale Enterprises( SSE) a type of business that’s run and managed by a single person

NIDB Nigeria Industrial Development Bank

BOI Bank of Industry

NBCI Nigeria Bank for Commerce and Industry

NERFUND National Economic reconstruction Fund

FIIR Federal Institute of Industrial Research

SSCF Small Scale credit fund

Interest Certain quantum that are charged on espoused plutocrat

Capital plutocrat

Development The gradational growth of some thing, so that it

becomes more advanced, stronger

Community Original country side