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 role of government agencies towards the development of small scale enterprises is quite interesting.
These enterprise have a very important impact on the life of everybody in the society. Small independence business
are everywhere and in every line of work, they can also be seen in every community. This business is as old as man.
So virtually everything is done in life involved the element of business. Small scale enterprise constitutes an
importance in todays
business activities or
system. The role of small
scale enterprise in our
economic history however,
has been one of the
distribution and contribution.
Although its relative importance has decline with the growth of the big business, small scale business is till major
contribution to the countries economy. Business in Nigeria today is made up of both large and small business. Today
small scale enterprise have to enjoy more prestige than ever before because of its vital contribution to the nations
economy. So vital is small scale business. There are successful small scale enterprise operating like the
manufacturing plants, retails, stores, wholesales, drugs, computers, construction firms 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
operators. Lack of full study of government agencies in the development of these enterprises especially, the financial
institution made it impossible to  know the size, structure and function of these small scale business to the
development of the economy.
Government agencies are charged with the responsibilities among others to carryout duties and deliver utilities as
may be regulated from time to time on behalf of the government for the purpose of uplifting the standard of living.
Government agencies such as bank of industry (BOI) is charged with the responsibility like provision of medium and
long term finances by way of equity funding, loan and lease financing, guarantees, investment in corporate bonds
business development services, co-financing, working capital finance and    promotion of small scale enterprises
and industries project, co-sponsoring financial institutions and small scale enterprises.
This bank of industry was formerly originated from Nigerian industrial 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
financial institution to serve as a dedicated window for channeling fund from within and outside the country to the
young nation states industrial sector. Economic reconstruction fund (NERFUND) in the last regime of Obasanjo administration is renamed as BOI.
- 1. STATEMENT OF THE PROBLEM
- Most government agencies have undergone number of re-organization especially bank of industry (BOI) which affect their forces and activities that leads to effective performance and lack of proper control on their activities.
The most obvious problems of Bank of Industry (BOI) is how to produce or provide efficient financial resources
technical assistance, security on loan given out to customer (SSE) evaluating of project that are financed which may
take more time than stated at the beginning. Also the project time table, which depends on nature and complexity of the project, it may take one to two years
sometimes longer from when project was identified to when it was commissioned. On the part of small scale enterprises (SSE) how effective are they utilizing the services rendered to them by the bank of industry (BOI). Also are they able to cope with the policies adopted by this agencies (BOI) in obtaining loan and other services rendered such as interest rate on capital collateral facilities and the role of government.
A CRITICAL ANALYSIS OF THE ROLE OF BANK OF INDUSTRY TOWARDS THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA