THE IMPACT OF BANK LOAN ON THE NIGERIAN INDUSTRIAL SECTOR DEVELOPMENT: AN EMPIRICAL ANALYSIS (1980 – 2006). A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
In this study, an attempt was made to investigate and analyze the impact of bank credit (loan) to the Nigeria industrial sector development.
This study involves an appraisal of the extent to which banks have succeeded in enhancing the growth and development and also the general performance of the Nigerian industrial sector since 1980 – 2005, through their various lending portfolios.
The incipient stage of Chapter one opens with an introduction through to the limitation of the study.
Chapter two gave a detail discussion in literature review, beginning with a brief history of the industrial sector, conceptual issues and consequent economic related issues such as the Nigerian industrial policies. This chapter also looked at commercial banks and industries in Nigeria, and also the problems faced by industries in obtaining credit facilities.
Chapter three involves the theoretical framework, model specification and source of data collected for analysis.
Chapter four is a detailed empirical interpretation of ordinary least square (OLS) – regression estimation results of collected data from Central Bank of Nigeria (CBN) Statistical Bulletin.
Finally, in Chapter five which combines the research’s summary of findings, recommendations and then in conclusion that the banking sector credit (loan) has a positive impact on industrial sector development in Nigeria.
Note that this study gave an insight on the relationship between the development of the Nigeria industrial sector and banking sector credit (loan).
1.9 BACKGROUND TO STUDY
Recently, most industries in the country (Nigeria) have been existing in the form of small industries (cottage industries) i.e. household limits carrying out industrial activities in the traditional methods without paid employment. It is to this end (that small and medium industries are the cornerstone of any nation’s industrial and
economic well-being) that successive government came with policies encouraging the development and growth of industries. The small and medium scale industries were not accorded significant importance in Nigeria until 1975 when the government realize that its industrialization strategy of import substitution only resulted in the setting up of large industries. It was not until the third national development plan of 1975 to 1980 that the programmes for the small and medium scale industries were explicitly spelled out; “The creation of employment opportunities, mitigation of rural-urban migration, mobilization of local resources, and a more even distribution of industrial enterprises in different parts of the country”.