FINANCING SMALL SCALE INDUSTRIES IN NIGERIA: A CASE STUDY OF MAKARFI SUGAR INDUSTRIES LTD
FINANCING SMALL SCALE INDUSTRIES IN NIGERIA: A CASE STUDY OF MAKARFI SUGAR INDUSTRIES LTD
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Date
1999
Authors
SHITU, Shehu Muhammad
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Abstract
ABSTRACT
This project seeks to examine the prospects, problems, and scope of Small Scale
Industrial Development in Nigeria with special emphasis on our Company's efforts at
establishing a Mini-Sugar Refining Plant at Makarfi, one of the Local Government Areas
in Kaduna State, where sugarcane grows in abundance. The selection of this topic was
informed by the belief that a radical review was required to our quest for industrialisation
with new emphasis on the promotion of small scale industries which would be cheaper to
establish, easier to manage and simpler to maintain. This was against the previous trend
of establishing very large, expensive and complicated as well as capital intensive plants
which took very long time to complete. At the end they became white elephants due to
their capital intensive nature. The study examines some large scale companies that have
not been very successful like Nigerian Sugar Company (NISUCO) Bacita and Savannah
Sugar Company Numan as well as those small to medium scale ones such as Santi and
Lafiagi Sugar Companies and their degree of success. The Nigeria Industrial Policy 1990
was also examined as well as the role of Structural Adjustment Programme which gave
birth to new institutions like Nigerian Economic Reconstruction Fund (NERFUND),
Nigerian Export and Import Bank Ltd (NEXIM), Small and Medium Enterprises (SME)
and Export Processing Zone Authority and their activities. The role of the newly created
Nigeria Sugar Development Council has also been examined. Some of the
recommendations made include:-
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Restructuring Financial Institutions by the Government to ensure that
SMEs benefit from their functions with ease.
Reviewing Industrial Policy periodically to eliminate areas that proved to
be out of tune with current realities.
Getting funds SME's should be made more liberal to avoid the mistakes of
NERFUND and SME Funds easier created.
Backward and Forward Linkages between Universities, Research
Institutes and industries for more effective development in terms of
funding research, proto-type machinery production and raw materials
development.
Enabling environment creation for large scale agricultural production for
both export and local raw materials provision.
Encouraging Private Entrepreneurs to establish small and medium scale
industries either singularly or as joint ventures.
Large sugarcane plantations should be established to encourage the
establishment of more processing plants.
Description
BEING A PROJECT SUBMITTED TO THE DEPARTMENT
OF BUSINESS ADMINISTRATION, A.B.U. ZARIA IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF MASTERS DEGREE IN BUSINESS
ADMINISTRATION (MBA).
Keywords
FINANCING,, SMALL SCALE,, INDUSTRIES,, NIGERIA, CASE,, STUDY,, MAKARFI, SUGAR INDUSTRIES.