INSTITUTIONAL FINANCING OF SMALL SCALE INDUSTRIES IN KOGI STATE
INSTITUTIONAL FINANCING OF SMALL SCALE INDUSTRIES IN KOGI STATE
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Date
1999-12
Authors
SULE, ALH. HASSAN
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Abstract
ABSTRACT
The issue of Institutional Financing of Small Scale Industries have received great
attention in recent times in realisation of the fact that availability of finance is very
essential for the growth and development of small scale industries. However, small scale
industries have some common problems in all countries and perhaps the most basic
problem in the lack of adequate capital and credit facilities for sustaining their growth
and development.
In view of this chronic problem of financing small scale industries, this research
project was undertaken with a view to find out whether the financial arrangement
available in Kogi State in particular and Nigeria in general, were adequate, and to
pinpoint their short-comings and suggest remedial measures so that finance does not
hinder the growth of this vital sector of the economy.
The development and growth of small industries sector is very vital to any
economy, whether developed or developing. Small scale industries contribute immensely
to any economy in terms of employment of income and wealth, import substitution,
encouragement to traditional craftsmanship, preservation of cultural heritage and
development of entrepreneurship.
This study reveals that the S.S.l.C. scheme have not provided adequate financial
assistance to small scale industries in Kogi State. Only 121 enjoy a total amount of
N2.18 million only and the number of applications granted is very insignificant compared
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to the number of applications received. Our findings also reveals that the N.B.C.I. has
approved only N2.2 million for fourty six small scale projects since its establishment in
1982, and because it is new in Kogi State, many small scale industrialists are not aware of
its existence or have no knowledge of the type of services it renders. We also found that
the commercial banks have played an insignificant role in the financing of small scale
industries in Kogi State. These findings reveals that the financial institutions have not
been able to meet the financial requirements of the small scale industries.
In view of this conclusion, we suggest that some specialized financial institutions
should be established to cater for the needs of the small and medium scale industries in
Kogi State.
Description
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTITUTE OF ADMINISTRATION
AHMADU BELLO UNIVERSITY
ZARIA, NIGERIA.
Keywords
INSTITUTIONAL,, FINANCING,, SMALL,, SCALE,, INDUSTRIES.