The role of bank in industrial development of Nigeria exists with an aim of giving the nation a new hope through the establishment of industries which will generate revenue a different thing from what is been received from crude oil and natural resources.
TABLE OF CONTENTS
Title page I
Dedication ii
Acknowledgement iii
Abstract iv
Chapter one
Introduction
Chapter two
Literature review
Chapter three
Conclusion and recommendation
Bibliography
CHAPTER ONE
INTRODUCTION
In Nigeria, the oil boom in early 70’s has been victim of a montithic economy and since them has been enjoying the so called “ petronaira” without adequate evolving a sound policy that will keep the national economy in the form foundation for steady growth. Though the country recognized the importance of industrialization as far back as 1964 yet when the “ Petro Naira”, stated slowing in they were bindfolded as to ignore the importance of establishing industries to ensure a diversified economy-
Now the “ petro Naira” is no more and the future out look in black, the need for a diversified economy became the subject matter of many government polices and actions. This leads as to one of the ways for solving this problem and that is INDUTRIALIATION.
Apart from the ensuring a diversified economy industrialization also accelerates the economic development of a country wishes to accelerates overall rate economic development she must have manufacturing production rising much faster than the overall rate of growth the GNP and this has to be reflected in an increasingly dominating role of manufacturing in the total economy. Also industrialization ensures export expansion and import contraction coupled with the fact that it will stimulates foreign exchange earnings international recognition and the provision of employment opportunities for the teeming population.
INDUSTRIALISATION is synominous with the production of goods and service for the benefit of this work in industry could be defined as the sum total of firms producing a particular commodity here both goods and services, thus we have the banking industrial, the food processing industry the sugar processing industry. The tobacco manufacturing industry etc . industrialization is the act of establishing different types of industries in the country for the purpose of stabilizing nations economy and ultimately improving the standard of living of the citizens.
Industrialization has been proved beyond doubts as very important for a nations survival therefore, it is present that we explicably manifest how the role of banks could be employed for the development of these industries. In doing this, the small and medium scale industries are included as the important to economy. The small scale industries are refunded by the central bank, credit guidelines is any manufacturing or services enterprises whose annual business turnover does not exceeds N500, 000 ( five hundred thousand naira) and it does not attract the direct emphasis to central bank the medium scale. The role of bank in industrial development of Nigeria could also provide the sustenance of industrialization in the country such services are the provision of capital in form of long term loan which the industries could used to finance fixed assets and the bank provides overdraft facilities which are necessary to finance the working capital of the business.
An overdraft could be defined as an arrangement whereby the banks allow the customer to overdraw his account up to a credit position at the end of the period. Apart from grading loan and overdrafts the played a role of personal advice , leasing and factoring, extend invoice discounting hire purchase, discounting bill services and determination of the actual external funds required by a borrower and it helps industries to grow and expands. The central bank of Nigeria should step up their moral suasion policy so as to make these banks especially the commercial banks to increase the level of their financing to industries. The increase level of finance emphasized to be placed on medium and long term loan so as to enable these industries investments to have a better results of outputs. The commercial banks also declare excess profit at the end of each year involve a lending pattern for medium and long term loans without adversely affecting their liquidity ratio.
With the funds available from the banks the industrialist should be made to judiciously invest them and with other important a sound firm and concrete foundation must have been laid for the industrial development of the country.
NOTE:
1. Federation of Nigeria statement on industrial policy sectionals paper No. 6 (1964) page 20
2. Gross National product it is a measure of the total value of all goods and services produced in the economy.
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