THE ROLE OF COMMERCIAL BANK IN THE DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA (A CASE STUDY OF FIRST BANK PLC, ILORIN)

INTRODUCTION

        This research work is carried out to examine the role of commercial bank in the development of small-scale industries in Nigeria. This paper reviews the crucial role of small scale industries in facilitating industrial development and also their source of finance (Commercial bank). It also reviews the type of problem face by small scale industries and some recommendations on how this problem can be solved.

LITERATURE REVIEW

        This is to give a wiser knowledge to what small scale industry is all about due to different orientation of scholars. I have to review both foreign and Nigerian base scholars so as to synthesis both ideals. This scholars use some indicator such as:

1.     The size of capital investment (Fixed Assets)

2.     The annual turnover (Sales)

3.     The number of employees (Workers)

The above mention indicators are use by some of this scholars and some government parastatal to define small scale industries.

RESEARCH METHODOLOGY

        This research was based primarily on first bank plc, Ilorin branch which happen to be one of its branch in Ilorin and they all have;

1.     Operate along the same method.

2      Have common aims and objectives

3.     Are subject to a common supervision system and personnel.

The sources of data was also analyze extensively from the manager, senior staff, and some of the bank employee. The use of questionnaire was not left out.

PLAN OF THE STUDY

        The plan of the study is to look at the role of commercial bank in the development of small scale industry in Nigeria refers to the usefulness of the study. The importance of the assistance being given to small scale industries by the commercial bank.

OBJECTIVE OF THE STUDY

        This study would investigate the source and application of fund from the commercial bank to the small scale industries. It will also evaluate permanent solution to the issue of poor relationship between the commercial banks and small scale industries owners.

        The need for the development of small scale industries has a key in the development of industrialization and as a key to improve the gross domestic product (GDP) and national income of Nigeria. It will also evaluate why some small scale industries are unable to source fund from commercial banks.

LIMITATION AND SCOPE OF STUDY

        This work does not seek solution to all the problems encountered by small scale industries but only how they can be finance by commercial banks. And other limitation is the problem encounter with obtaining information from first bank plc, when information is made available. It is done after undue delay and suspicion.

DEFINITION OF KEY TERMS

        The researcher gives detail information of technical terms used in writing this project work. This is done purposely to enable the reader or lay man to have easy understanding of the terms when reading the project work. Some of the key terms are:

1.     Bank

2.     Account

3.     Accounting

4.     Assets     

5.     Loan

6.     Cheque

7.     Customer

8.     Services

9.     Bank overdraft

10.   Bank statement

11.   Collateral Security

12.   Interest

SUMMARY, CONCLUSION AND RECCOMMENDATION

          The government has been using the monetary policy through the Central bank of Nigeria to stimulate the growth of small scale industries has a base of creating import substitution of product and services to fulfill the economic aspiration of full employment in Nigeria. How far these as help and what need to be done so as to achieve more.