FINANCING STATE GOVERNMENT PROJECT THROUGH THE CAPITAL MARKET PROBLEM PROSPECT. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Financing the state government project through the capital market has brought a lot of problem in our country and people are seeking a way to solve the problems. Now the researcher want to find out the problems encountered in financing the State government project through the capital market and also how the capital market helps in financing the state government project.
Furthermore, the researcher will also find out the functions which the capital market has performed in the funding of government projects. All these point will help the researcher to carry out her work successfully.
1.2 RATIONALE OF THE STUDY
There have been serials of inefficiencies in financing the state government project through the capital market. Hence the reason for this study are:
i. To identify the problems facing state government.
ii. To find out possible solution of solving these problem.
1.3 SIGNIFICANCE OF THE STUDY
The purpose of financing the state government project through the capital market is to ensure the top priorities of the Nigeria government project and the successiveness of the capital market.
Therefore this study will be a benefit to public and state government by:
i. Providing facilities for the quotation and ready market ability of shares and stocks and opportunity and facility to raise fresh capital in the market.
ii. To provide local opportunities to mobilize long term capital for the long term purpose.
iii. Foreign business also benefit with the facility to offer their shares and the Nigeria public on opportunity to invest and participate in the share and ownership of foreign business.
1.4 BACKGROUND OF THE STUDY
The function of the state government in recent times includes the provision of amenities and infrastructures which are capital intensive in nature. Over the years most state governments especially in the developing countries have been carrying out such functions with funds from external sources as loans grants and development assistance or aids. These resources have often been complemented with domestic resources as statutory allocations from the federal accounts, internally generated funds and domestic borrowing.
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