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IMPACT OF INSTITUTIONAL FINANCING ON THE PERFORMANCE OF SMALL-SCALES MANUFACTURING INDUSTRIES

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IMPACT OF INSTITUTIONAL FINANCING ON THE PERFORMANCE OF SMALL-SCALES MANUFACTURING INDUSTRIES

 

CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND OF THE STUDY

Financial institutions called development financial institutions DFI(S) were established by the federal government with the specific and clear mandate of providing industrialists and entrepreneur with the required medium and long term finance in order to accelerate industrial development in Nigeria. These financial institutions are the Nigeria Industrial Development Bank (NIDB), Nigerian Bank for Commerce and Industry (NBCI), and the National Economic Reconstruction Fund, NERFUND, all of which have been merged to form the new Bank of Industry, BOI.

Industrial development, otherwise known as real sector growth which small-scale industries is the sub-sector of the real sector, remains the most important parameter for measuring a country’s level of economic development. Thus, industrial development is the bedrock of economic development of a nation.

Nigeria falls within the bracket of world’s underdeveloped countries. Over the years and since independence in 1960, successive governments have had to make conscious efforts aimed at pulling the country out of economic backwardness and stemming up economic development Philips (1987;3). Recognising the importance and significance of industrial growth in the scheme of overall economic development, government (both past and present) have had to embark on one form of economic blueprint or the other.

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IMPACT OF INSTITUTIONAL FINANCING ON THE PERFORMANCE OF SMALL-SCALES MANUFACTURING INDUSTRIES

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