AN EVALUATION OF THE IMPACT OF COMMERCIAL BANK LENDING ON SMALL SCALE INDUSTRIES IN NIGERIA . A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
A small-scale industries is a sale volume in the monetary unit. The essence for this research work is to evaluate the extent to which small-scale industries in Nigeria have been able to obtain loans and risk finana from Nigeria commercial bank as a major source of finance to the economy.
This study is interested in finding out and commencing the major cause of the commercial banks unwillingness to lend to small scale industries an also to find possible solution to the lending problems of the commercial bank with regards to the prospect.
In order to expand the industry and it’s activities then there is a need to introduced the banking system to foster the grating of credits facilities
Beside, structural Adjustment programme (SAP) was introduced in orders to product the small-scale industries (S S T ‘S) that was designed to exhibit reliance.
In conclusion, the commercial bank should design program on appropriate ways of utilizing loans e.g. seminar, symposia and workshop and also the commercial bank should Stan granting the small-scale industries medium term loans instead of the usual small term loans.
1.1 BACKGROUND OF THE STUDY
It is certain that Nigeria is endowed with a lot of natural resources. These resources to mention but a few are skel, crude oil, natural gas, Iron ore, palm oil, ground nut yam, cassava etc. these resources found the major export earning before the era of independence an generate 80% of our then total revenue the precolorual era could be regarded as era of substance economy. Each community then was noted for one particular raft or the other some families were known as either artists or blacksmiths on their craft as their source of livelihood ad they were operating as subsistence level fermi (1984)
As a result of increased population and increased demand for these service, there were efforts to increase specialization an efficiency by these craftsmen it worth knowing that there was little or capital intensive Because of this lack of capital intensive, production possibilities curing the precolonial, the federal government did not free movement towards the upliftment of the
industries. The economy under the precolonial, the federal government. What merely existed was the cowry monetary system. Hence, the luck for efficient and effective monesed economy did not exert a concrete influence on economic activities. To foster the industry, there was the introduction of banking system which facilitated granting for credit facilitates e.g. loan and advance (Nwosu 1984)