This is a critical analysis of the role of bank of industry towards the development of small and medium scale enterprises in Nigeria. The influence of government agencies in the development of small businesses is a fascinating topic to research. These businesses have a significant impact on the lives of everyone in society. Small independent businesses can be found in every field of endeavor, as well as in every community.

This is an age-old business. As a result, commerce is present in almost every aspect of life. Small businesses play an important role in today’s commercial operations and systems. Small businesses, on the other hand, have played a distribution and contribution role in our economic history.

Despite the fact that its relative importance has waned as big company has grown, small business continues to make a significant contribution to the economies of developing countries.

A critical analysis of the role of bank of industry towards the development of small and medium scale enterprises in Nigeria

In 2007, the population of Nigeria was expected to be 140 million, with small business owners accounting for around 75 percent of the population. The lack of thorough investigation by government authorities in the growth of these operations, particularly by financial institutions, made it hard to determine the number, structure, and function of these small businesses in the economy’s development.

Government agencies are in charge of, among other things, carrying out obligations and delivering utilities on behalf of the government as may be regulated from time to time for the goal of raising the standard of living. Government entities such as the Bank of Industry (BOI) are in charge of providing medium and long-term financing through equity funding, loans, and other means.

The Nigerian Industrial Development Bank Limited (NIDB) was created in 1964 after the reconstruction of the Investment Company of Nigeria Limited (ICON). NIDB was established largely to accelerate Nigerian industrialization.

The bank was supposed to be established soon after Nigeria gained independence in 1960. The plan was to establish a development financial institution that would act as a dedicated channel for channeling funds from inside and outside the country to the industrial sector of emerging nation states. In the last administration of Obasanjo, the Economic Reconstruction Fund (NERFUND) was renamed BOI.


Most government agencies, particularly the Bank of Industry (BOI), have undergone a series of reorganizations that have affected their forces and activities, resulting in ineffective performance and a lack of proper oversight over their activities.

The Bank of Industry’s (BOI) most visible challenges are how to develop or deliver efficient financial resources, technical support, security on loans given out to customers (SSE), and analyzing sponsored projects, which may take longer than stated at the outset.


Also, depending on the type and complexity of the project, it may take one to two years, or even longer, from the time the project is selected to the time it is commissioned.


1. The study’s goals and objectives are to examine the various roles played by the (BOI) in the development of small scale enterprises, as well as the activities of government policies such as provision of infrastructural facilities, provision of local finance, facilitating and funding industries and funding institutions such as the (CIRD), (FIRO), and (SSICS), to see how government policies are implemented in order to develop small scale enterprises.

2. It is also to examine the many ways in which the Bank of Industries (BOI) has effectively contributed to the development of the economy by providing finance and other essential elements for the development of small scale enterprises.


The researcher chooses to employ the following questions for study findings, depending on the subject matter:

1. What are the issues that small businesses face?

2. What is the significance of tiny scale?

3. Are industrial banks the sole financiers of small businesses?

4. Does the government have policies that encourage the growth of small businesses?


H0: The Bank of Industry has no substantial impact on the growth of small and medium-sized businesses.

H1: The Bank of Industry has a considerable impact on the growth of small and medium-sized businesses.


The study’s relevance is to serve as a reference material for other students who may write on, do research on, or recommend to the Bank of Industry (BOI) in executing its functions to clients, as well as the way of providing services to small scale enterprises.


This research will focus on the government agency’s (BOI) operations and role in the development of small businesses.


Conducting research without facing two or more obstacles is not a simple task for a student. One of the issues that the researcher encountered was a lack of suitable information that the researcher could access for necessary study work, as several of the organization’s leaders were extremely busy and required a signature from the department before releasing information.


SME (Small Scale Enterprise): a type of company run and managed by a single individual.

NIDB (Nigeria Industrial Development Bank) is a Nigerian development bank.

BOI stands for Bank of Industry.

Nigerian Bank for Commerce and Industry (NBCI) is a commercial bank in Nigeria.

NERFUND stands for National Economic Recovery Fund.

FIIRD (Federal Institute of Industrial Research) is the acronym for the Federal Institute of Industrial Research.

SSCF stands for Small Scale Credit Fund.

Interest is a fee that is levied on money that has been borrowed.

Money is referred to as capital.

Development: The process of something becoming more advanced and stronger through time.

Community: The surrounding countryside

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