...THE ROLE OF COMMERCIAL BANK FINANCING ON THE GROWTH OF THE MANUFACTURING SECTOR IN NIGERIA A RESEARCH PROJECT SUBMITTED BY ETIM KATHRINE ETOK: 08/BAF-5/140 DEPARTMENT OF BANKING AND FINANCE: FACULTY OF MANAGEMENT SCIENCES UNIVERSITY OF CALABAR: TO DEPARTMENT OF BANKING AND FINANCE FACULTY OF MANAGEMENT SCIENCE UNIVERSITY OF CALABAR IN PARTIAL FULFILMENT OF THE COURSE REQUIREMENT FOR THE AWARD OF A BACHELOR OF SCIENCE DEGREE IN BANKING AND FINANCE JUNE, 2014. ACKNOWLEDGMENT My profound gratitude goes to God Almighty, for his guidance, protection, love and strength etc. that has seen me throughout these five years of study. Special thanks also go to my parents, Elder and Mrs. NyongEtok for allowing themselves to be used by God as a foundational stone to my academic pursuit. I am also grateful to my siblings Master, EkpenyongEtokEtim, Miss, AritEtokEtim, Miss Victoria EtokEtim and little Daddy boy, and my friend EgbeAsikong. Special thanks to my supervisor Hon. BasseyIbor, who took pains to go through my work and provided required guidance and insightful comments. Finally I thank all those whose names are not mentioned here but who contributed in one way or the other in making this work successful. May God bless you all. ABSTRACT This examined the role of commercial bank financing on the growth of the manufacturing sector in Nigeria. Time series data covering the period 1990 – 2012 was used. Four research questions guided the study and...
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...GOVERNMENT POLICY 2.4 SUPPORT SYSTEMS 2.5 FINACING 2.6 MONETRY POLICY DEVELOPMENT IN FAVOUR OF SMAL SCALE INDUSTRIES 2.7 BEBEFITS OF SMALL SCALE INDUSTRY 2.8 PROBLEMS FACING SMALL SCALE INDUSTRY 2.9.1 FINANCING THE PROJECT 2.9.2 TECHNICAL KNOWS HOW 2.9.3 PERSONNEL ,MATTERS AND GENERAL ADMINISTRATION 2.10 IMPROVING FUNDING SMALL SCALE INDUSTRIES REFERENCES CHAPTER THREE: RESEARCH METHODOLGY 3.0 INTRODUCTION OF THE STUDY 3.1 RESEARCH DESIGN 3.2 AREA OF STUDY 3.3 POPULATIO OF STUDY 3.4 SAMPLE SIZE DETERMINATION 3.5 INSTRUMENT FOR DATA COLLECTION 3.6 VALIDATION OF THE INSTRUMENT 3.7 RELIABILITY OF THE INSTRUMENT 3.8 METHOD OF DATA COLLECTION 3.9 DATA ANALYTICAL RECHNIQUES CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA 4.1 PRESENTATION OF DATA 4.2 HYPOTHESIS TESTING CHAPTER FIVE FINDINS: CONCLUSIONS AND RECOMMENDATIONS 5.1 FINDINGS 5.2 CONCLUSION 5.3 RECOMMENDATION BIBLIOGRAPHY APPENDICES CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO PROBLEM The successive development plans of Nigeria have laid emphasis on the attainment of self reliance. The need for this national objective is because much is expected from individuals from the view point of providing employment opportunities self reliance in basic food and material production high per capital income, foreign exchange earnings and the production of industrial raw materials. Okporobie (1989:10) observes that...
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...CHAPTER ONE 1. BACKGROUND In recent years, particularly since the adoption of the economic reform programme in Nigeria in 1986, there has been a decisive switch of emphasis from the grandiose, capital intensive, large scale industrial project based on the philosophy of import substitution to small scale industries with immense potentials for developing domestic linkages for rapid, sustainable industrial development. Apart from their potential for ensuring a self reliant industrialization, in terms of ability to rely largely on local raw materials, small scale enterprises are also in a better position to boost employ raw materials, small and medium enterprise, are also in a better position to boost employment, guarantee a more even distribution of industrial development in the country, including the rural areas, and facilitate the growth of non-oil exports. In Nigeria, the definition of small and medium enterprises also varies from time to time and according to institutions, for instance, the Central Bank of Nigeria’s (CBN) monetary policy circular No:27 of 1988 define small scale enterprises (excluding general commerce) as enterprises in which total investment (including land and working capital) did not exceed #500,000 and or the annual turn-over did not exceed #5.0 million. Medium enterprise (excluding general commerce) as enterprises in which total investment and not exceed #1,000,0000 (1 million) and the annual turnover did not exceed #1.2 million. Small scale enterprises...
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...CONFRONTING THE DEVELOPMENT OF SMALL AND MEDIUM INDUSTRIES IN NIGERIA BY YEOSUF .A. ABDULRASAQ BEING A SEMINAL PAPER PRESENTED AT 3RD ANNUAL NATIONAL BUSINESS CONFERENCE OF SCHOOL OF BUSINESS STUDIES, FEDERAL POLYTECHNIC, NASARAWA. NASARAWA STATE BETWEEN 21ST AND 23RD APRIL, 2010. ABSTRACT This paper identified the barriers confronting the growth and development of SMIs in Nigeria. An analysis of 150 SMIs, using chi-square technique and percentages, indicates that formal barriers and informal barriers form the most significant barriers for SMI businesses. The environmental barriers were secondary in significance. The government should provided enabling environment for the SMI to grow and develop such as good road, electricity supply, good provision of funds at low interest rate, Reduction in tax and finally, the SMI. Operators should form a support networks among themselves, in term of needs. INTRODUCTION Small and medium Industries (SMIs) have been widely acknowledge as a major divers of economic growth. In most of the developed country, SMIs accounted for 90% of all business enterprises. In china, SMIs are said to be responsible for about 60 percent of the industrial output and employed about 75 percent of the workforce in the urban centres. In spite of all the efforts and support of the succeeding administrations and governments to the developments of SMIs in Nigeria, the SMIs have not played the expected role in the economic...
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...CHAPTER TWO REVIEW OF RELATED LITERATURES 2.0 Introduction There have been a lot of work on SSEs but the available few have given in depth into the concept of SSEs. In Nigeria, attention has been drawn to the fact that SSEs have been receiving Small attention from government whereas they provide employment for a large number of people engaged in manufacturing as well as playing roles of crucial importance to our developing country. This is why it is important to reconsider the problem hindering the development of SSEs in Nigeria. There have been numerous contributions, opinions, and commentaries on how the government can help in the development of SSEs in Nigeria. Unfortunately, some of these opinions have not been given a listening ear by...
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...European Scientific Journal January 2013 edition vol.9, No.1 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431 AGRICULTURE FINANCING AND ECONOMIC GROWTH IN NIGERIA Obansa S. A. J. Departments of Economics University of Abuja I. M. Maduekwe Departments of Economics and Agric. Economics Department University of Abuja Abstract The importance of agricultural surplus for the structural transformation accompanying economic growth is often stressed by development economists. This lead to the question: Does agriculture financing matters in the growth process? To this end, the need to investigate the impact of agriculture financing on economic growth appears more imperative for Nigeria. This paper employed secondary data and some econometric techniques such as Ordinary Least Square (OLS); Augmented Dickey-Fuller (ADF) unit root test; Granger Causality test. The results of the various models used suggest that there is bidirectional causality between economic growth and agriculture financing; and there is bidirectional causality between economic growth and agricultural growth. It further suggests that productivity of investment will be more appropriately financed with foreign direct private loan, share capital, foreign direct investment and development stocks. And also capital-output ratio will be more appropriate financed with multilateral loan, domestic savings, Treasury bill, official development assistant, foreign direct investment and development stock. It is recommended that maintenance...
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...School of Business United International University FINANCING OPTIONS FOR SMALL AND MEDIUM ENTERPRISES (SMES): EXPLORING NON-BANK FINANCIAL INSTITUTIONS AS AN ALTERNATIVE MEANS OF FINANCING THE CASE OF BANGLADESH Submitted To Submitted By James Bakul Sarkar Md. Moniruzzaman Assistant Professor ID: 111091381 School of Business Bachelor of Business Administration Bachelor’s Degree Thesis in Business Administration ACRONYMS SMES SMALL AND MEDIUM-SIZED ENTERPRISES NBFI NON BANK FINANCIAL INSTITUTIONS. FFS FORMAL FINANCIAL SYSTEM IFS INFORMAL FINANCIAL SYSTEM FMF FEDERAL MINISTRY OF FINANCE CBN CENTRAL BANK OF NIGERIA NDIC NIGERIAN DEPOSIT INSURANCE CORPORATION SEC SECURITIES AND EXCHANGE COMMISSION NIC NATIONAL INSURANCE COMMISSION FMBN FEDERAL MORTGAGE BANK OF NIGERIA NDIC NIGERIA DEPOSIT INSURANCE CORPORATION SEC SECURITY AND EXCHANGE COMMISSION NAICOM NATIONAL INSURANCE COMMISSION ABSTRACT TITLE: FINANCING OPTIONS FOR SMALL AND MEDIUM-SIZED ENTERPRISES (SMES): EXPLORING NON-BANK FINANCIAL INSTITUTIONS AS AN ALTERNATIVE MEANS OF FINANCING. AUTHOR: Md. Moniruzzaman SUPERVISOR: James Bakul Sarkar DEPARTMENT: School of Business, United International University COURSE: Bachelor’s Thesis...
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...management, University of Nigeria, Enugu Campus. PMB 011 *E mail of the correspondence author: annogbo@yahoo.com brightchidi@yahoo.com Abstract The aim of the paper is to develop and analyse the contributions of entrepreneurship in the economic development through SME development in Nigeria. A total of 100 SMEs were randomly selected from a cross section of a population of all SMEs spread around some states of Nigeria and covering virtually all forms of enterprise. Participants were selected through a simple random sampling. The responses to the questionnaires were complemented with personal interviews of some SMEs operators. The responses of the participants were analyzed using the statistical package for social sciences (SPSS), which generated the frequency distributions, means, standard deviations, chi-square statistics, analyses of variance, etc of the responses. The hypotheses of this research which were tested at 0.05 level of significance using chi-square statistics hinged on identifying the greatest problem which SMEs face in Nigeria, the identification and ranking of the top ten problems or challenges of SMEs in Nigeria and the relationship between the form and nature of the business enterprise and its sources of funding for its operations. The major findings of this study include the following: SMEs have played and continue to play significant roles in the growth, development and industrialization of many economies the world over. In the case of Nigeria, SMEs have performed...
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...CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND TO THE STUDY In a published report on Business Day by Chuka Uroko (2015), he explained that, Lagos, Abuja and Port Harcourt, Nigeria’ commercial, administrative and petroleum industry capitals respectively, are the top real estate investment destinations, and account for as high as 65 percent of all activities in this asset class, a report by the National Bureau of Statistics has revealed. The report indicated that Lagos has the greatest amount of real estate activities at 37 percent, followed by Abuja with 22 percent and Port Harcourt (Rivers State) with 6 percent, all covering 65 percent of real estate activities in the country. The trio, often regarded as Nigeria’s traditional cities, have seen increased tempo of activity in real estate development and much of the investments that have gone into real estate in the country in the last decade were concentrated in these cities. Nigeria’s has a burgeoning real estate sector, which by the GDP rebasing exercise in the country in April 2014, was discovered to be the fastest growing and sixth largest sector in the Nigerian economy, explaining the rising level of investment in the sector by both local and foreign investors. Foreign direct investment (FDI) is defined as “an investment in which a firm acquires a substantial controlling interest in a foreign firm (above 10 percent share) or sets up a subsidiary in a foreign country” (Chen, 2000). The International Monetary Fund adds...
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...MMN222154-13- AB THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA BY AZUMONYE M. CHUKWUEMEKE S1344407 INTRODUCTION Over the years, the debate on the role of foreign direct investment (FDI) as a factor that induces economic growth has received the attention of policy makers, researchers and international organizations (Tumala et al, 2011). There is no denying that most countries strive to attract foreign direct investment (FD1) because of its putative advantages as a tool of economic development. Therefore, this essay seeks to ascertain the extent at which growth in foreign direct investments (FDIs) influences economic growth in Nigeria in the long-run and investigated the empirical relationship between FDI and privatization. Nigeria, after independence began with an economy that was mostly driven by the public sector. According to Tumala et al (2007), Nigerian Enterprises Promotion Decree (NEPD) of 1972 imposed several restrictions on FDI entry, thereby earning the tag „the indigenization policy‟. It reserved 22 business activities exclusively for Nigerians, including advertising, gaming, electronics manufacturing, basic manufacturing, road transport, bus and taxi services, the media and retailing and personal services. Foreign investment was permitted up to 60 per cent ownership and provided that the proposed enterprise had, based on 1972 data, share capital of N200, 000 ($300,000) or turnover of N500, 000 ($760,000).As Martin Meredith (2005)...
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...management, University of Nigeria, Enugu Campus. PMB 011 *E mail of the correspondence author: annogbo@yahoo.com brightchidi@yahoo.com Abstract The aim of the paper is to develop and analyse the contributions of entrepreneurship in the economic development through SME development in Nigeria. A total of 100 SMEs were randomly selected from a cross section of a population of all SMEs spread around some states of Nigeria and covering virtually all forms of enterprise. Participants were selected through a simple random sampling. The responses to the questionnaires were complemented with personal interviews of some SMEs operators. The responses of the participants were analyzed using the statistical package for social sciences (SPSS), which generated the frequency distributions, means, standard deviations, chi-square statistics, analyses of variance, etc of the responses. The hypotheses of this research which were tested at 0.05 level of significance using chi-square statistics hinged on identifying the greatest problem which SMEs face in Nigeria, the identification and ranking of the top ten problems or challenges of SMEs in Nigeria and the relationship between the form and nature of the business enterprise and its sources of funding for its operations. The major findings of this study include the following: SMEs have played and continue to play significant roles in the growth, development and industrialization of many economies the world over. In the case of Nigeria, SMEs have performed...
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...PRODUCTIVITY IN THE NIGERIAN MANUFACTURING INDUSTRY BY C. M. ANYANWU ASSISTANT DIRECTOR, RESEARCH DEPARTMENT, CENTRAL BANK OF NIGERIA. INTRODUCTION Prolonged economic recession occasioned by the collapse of the world oil market from the early 1980 and the attendant sharp fall in foreign exchange earnings have adversely affected economic growth and development in Nigeria. Other problems of the economy include excessive dependence on imports for both consumption and capital goods, dysfunctional social and economic infrastructure, unprecedented fall in capacity utilization rate in industry and neglect of the agricultural sector, among others. These have resulted in fallen incomes and devalued standards of living amongst Nigerians. Although the structural adjustment programme (SAP) was introduced in 1986 to address these problems, no notable improvement has taken place. From a middle income nation in the 1970s and early 1980s, Nigeria is today among the 30 poorest nations in the world. Puttingthecountrybackonthepathofrecoveryandgrowthwillrequireurgently rebuilding deteriorated infrastructure and making more goods and services available to the citizenry at affordable prices. This would imply a quantum leap in output of goods and services. The path to economic recovery and growth may require increasing production inputs - land, labour, capital and technology - and or increasing their productivity. Increasing productivity should be the focus because many other countries that have...
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...ultimately put the funds to productive uses. In line with the assumption that banking sector plays an important role in financing the investment projects, successive governments in Nigeria have carried out reforms and institutional innovations in the banking sector. The overall intention of these reforms has been to ensure financial stability so as to influence the growth of the economy and also enhance banks to play a critical role of financial intermediation in Nigeria. However, despite the fact that Nigerian banks have undergone series of restructuring/reforms aimed at strengthening the banks’ ability to efficient service delivery and fund the real sector, problems such as; inefficiency in allocating funds to the real sector, lack of long-dated funding, neglect of the core private sector in terms of credit extension, weak capacity of the banks to fund the real sector, low-level activities of banks, and illiquidity still lingers. This study therefore, examines empirically the impact of financial intermediation on the development of the Nigerian economy with the aim of determining the importance of financial intermediaries and its influence. This study found out that the financial intermediaries (banks) in Nigeria exhibit inefficiency and weak capacity in the allocation of funds to finance the some sectors. On the overall therefore, the study found that the economy Nigeria rely heavily on the banking sector to finance its activities even though the desired expectation is not met by the...
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...questions of various aspect of entrepreneurship was administered personally to the owner/managing director of each of the units as the case may be. This study is partially exploratory but basically descriptive in nature. From the interpretation and analysis of data collected the result shows that age is not a static phenomenon for entrepreneurship. Those who have less education but have more practical experience and training, enter into the industry early. However, in such cases less education restricts the growth and development of the enterprise. The paper also finds reasons for enterpreneurship, the three was to earn high profits and prosperity. The variables which decide the area of activity or the product line are based on assured market, parental business, experience and revival of the sick unit etc. There are certain irritants that also serve as impediments for the growth of enterprises. For instance competition from small scale units, (28%) financial constraints, high intent ratio and others. Introductionn The prosperity and progress of a nation depends on the quality of its people. If they are enterprising, ambitious and courageous enough to bear the risk, the community/society will develop quickly. Such people are identified as entrepreneurs and their character reflects entrepreneurship. Entrepreneurship is no monopoly of any religion or community, Business Timus (1995) entrepreneurial potential can be found and developed anywhere irrespective of age, qualification...
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... Question 2: Discuss fully the merits and demerits of mergers and acquisition of banks in the consolidation exercise of 25 banks in Nigeria. A. MERITS OF MERGERS & ACQUISITION IN THE BANKING INDUSTRY IN NIGERIA Improvement of Financial Capacity: The consolidation in the banking industry will bring about improved financial capacities of the banks. Thus, the banks would have larger capitals at their disposal to finance mega projects both in the long and in the short terms. Management of the Foreign Reserves by the mega banks would enable the bank finance high capital intensive projects: manufacturing, oil and gas, agriculture etc. Security of Depositors’ Funds: The availability of this capital also means that the banks are now stronger and customers’ deposits would become safe. The issue of distress in the banking industry would become a thing of the past if the banks are able to effectively manage the large pool of funds. Improvement of Technical Capacity: The coming together of different banks will bring about improved technical capacity. The merging/acquired banks will benefit from the technical competence of one another. Improvement in Managerial Capacity: Other things being equal, the consolidation would bring about expansion and this comes with the multiplier effects such as employment generation in other sectors of the...
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