BACKGROUND OF THE STUDY
Industrial development can be defined as a growth in the manufacturing sector. Like in most other developing countries, the government is the main initiator of industrial development in Nigeria. This grant concern has been reflected in the national development plan adopted so far. The determinants of industrial development include availability of natural resources process of capital accumulation or formation organization and technological progress. It was in recognition of these facts that government has established many financial institutions to accelerate the rate of industrial development some of the institution are either wholly owned by the government while some are partially owned by the government. These institutions include the Nigeria industrial development bank (N.I.D.B) the Nigeria bank for Agriculture commerce and industry (N.B.C.D) the Nigeria agricultural and cooperative bank (N.A.C.B) the state investment corporation etc.
These institution are designed to supply the much needed medium and long term credit for industrialization and supplement the short term classical banks. They are also expected to perform important promotional functions which include technical managerial and consultancy service.
To achieve the government shall take the socio- economic priorities of their government.
The relevance of this study therefore is to assess to appraise the role of development bank (N.I.D.B) in particular in the industrial development of Nigeria 1975-1984. it is hoped that when completed recommendations and solutions suggested will be useful to the bank other researcher and the government in future development plans.
The main objective of industrial policy is to accelerate the pace a industrial development through the provision of greater employment opportunities increased export of manufactured goods dispersal a industries increased local content of industrial output, improved incentive to attract and increased private sector participation in the manufacturing sector.
Industrial development banks are to offer specialized services to industry. Paramount among these services is the provision of soft loans and advances to large medium small scale and cottage type industries on concessionary terms.
Development banks in their effects to industrialized Nigeria are faced with the following problems.
1. Acute shortage of fund: The available fund is not enough to satisfy the industrial needs of the manufacturing sectors. This is because N.I.D.B does not raise funds directly form the capital market to increase its capital base N.I.D.B raised fund through icon ltd. Also it is not in a position to sources internally.
2. N.I.D.B area administration office is not located in each state of the federation. This means that all the activities are centered ay head office instead of being restricted to supervisory work. This has undoubtedly decreased the arte of contact between the bank and prospective customers and has delayed processing of applications.
3. The public is not aware of the operation of bank with the result that most application are rejected on the grounds of being out of the banks scope of operation. This a public enlightenment campaign is needed to create awareness on the operation of the bank.
4. N.I.D.B has had at various times in its life business climate at various times in its life for example the structural adjustment programme SAP, has given N.I.D.B some problem in terms of inventory recovery. According to Rasheed Gabadamasi Chairman of the bank “we have has to put some of our customers under receivership”. To sustain some customers in business he said NIDB bent over- backward to give then working capital at loan to enable them have a new orientation.
The study will aim at developing industrial sector through the development of financial institutions in terms of orienting these institution towards providing support in terms of long terms finance.
TABLE OF CONTENT
Cover page
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
INTRODUCTION
Background of study
Statement of problem
Objective of study
Significance of study
Limitation of study
Definition of the terms
CHAPTER TWO
The literature review
CHAPTER THREE
Research design and methodology
Sources of data (secondary data only)
Location of data
Method of data collection
CHAPTER FOUR
Finding
CHAPTER FIVE
Recommendation
Conclusion
Bibliography
