NIGERIAN FINANCIAL SYSTEM AS THE PRIME MOVER OF ECONOMIC ACTIVITIES AS STUDY OF NIGERIAN BANK FOR COMMERCE AND INDUSTRY IN ENUGU STATE

ABSTRACT

This project is a study of Nigeria financial system the prime mover of economic activities a case study of Nigerian bank for commerce and industries.

This research shows hoe financial system have been of a great help to our economic system especially entrepreneurs. During the course of the research it was seen that the financial system have helped a lot in the development of our communities and also been of a great help to both agriculture list sole prioprietor etc.

During the research period, I used many methods e.g collection of data, questionnaires, observations and secondary data.

CHAPTER ONE

INTRODUCTION

Every economy is made up of a nultitude of economic units and agents. Here are individuals, households, different forms, firms and the central authority. To carry on with its economic activities, it needs funds. These  units engaged in production., distribution or consumption may require from other agents the service of their facilities of goods and services.

Specialization and minute elivison of labour in modern economy have led to firms specializing in different ways. Some of these firms deals with physical goods and services where as other specialize in money and credit. The later deal wholly and exclusively in financial assets in liabilities. It is the specialization that provides the link between different lowers of the financial sectors and between different hers of economy.

In an economy, financial institution perform a wide set of functions. There are monetary and non monetary financial institutions. The former ensures that there is an adequate stock of money to service the needs of the economy. Some of the type of financial institutions are the central bank and commercial banks. These institutions can increase or decrease the stock of money through their actions. But they later facilitate the transfer of money between economic units. These action of both institutions affect the level of employment. Income and prices (that is economic activities) which shows that financial system is the price mover of economic activities.

STATEMENT OF THE PROBLEM

This study/research entitles the Nigerian financial system as the prime mover of economic activities attempts to determine the Nigerian financial system as the prime mover of economic activities as compared to others and to determine the best credit financing for small scale enterprises. This is with a view to determine the actual achievement of the bank as a financial house in terms of seize of loan, profitability of credit etc. The question here then is whether it can be safety said that small scale enterprises have benefits appreciably from finance houses (Bank) in terms of capital provision.

Generally the major problems of small and medium scale industries consist of finance organization.

A comparison of banks performance with other sources open to small scale industries will be undertaken in this research  in order to find out which of these sources of credit are most useful and important to small scale enterprises.

Another problems is lack of time, since this study is just out of many course offered by the researcher, she was not able to carry out intensive research on this study in question because her time is limited. She also lack the fund to run up and down to find suitable materials for this research.

1.3    OBJECTIVE OF THE STUDY

In view of the problem of some industrialist the objective of these study is to evaluate the role of financial houses in financing economic activities for economic activity to be moving money must be made available to the economic units.

The specific objective are:-

1. To identify the problem encountered by economic activities in obtaining finance from banks.

Financial institutions provide liquidity by making it possible to convert near money assets into manager. Such near money assets are time deposits in the banks, treasury bills, share and bonds and commercial bills etc.

1. They mobilize the collection and storage of savings.

To appraise the situation and make recommendation on how to improve on the finance houses.

1.  Financial institutions highlight the extent to which the commercial banks have helped to finance on economic activities and problems hindering such.
2. To guard against risks inherent in the day – to – day activities of the economic units. Specialization in function has promoted the creation of financial institution to insure against and thereby minimise the impact of risk.

1.4    SIGNIFICANT OF THE STUDY

The significance of the study is to evaluate the extent to which the economic activities have been able to obtain the assistance of financial system in capital funding of their business. The research will be importance in that, it will provide data for future studies on the subject. Thus the study will be of benefit to students who will be of benefit to students who will be like to research on related toque in future, it will make their work easier because already, a foundation has been laid.

Industries will benefit because the research project will reveal any problems in the relationship between banks as a financial institution and economic activities when these problems are revealed it will and borrowers to act loans easily without many problems.

Finance houses will benefit because the actual role they play in financing of economic activities will be revealed. This gives them strength to ask federal government for loan when they have need for that.

Individuals will also gain because when banks give loans to industrialist, it will help to act that the needs to the people are provided if not fully but to an extent that a good number of people will benefit.

1.5    SCOPE DELIMITATION AND LIMITATION

This topic Nigerian financial system as the prime mover of economic activities (A case study of Nigerian bank for Commerce and Industries (NBCI) Enugu) is very vast but for purpose of manageability to the financials constrained. It has therefore restricted or limited itself to some specific banks in Enugu state.

In choosing these bank, the research has invited his research in those areas of operation of these institution that enhance economic emancipation of Nigerian and used instance drawn to apply to other development financial institution. This has been so because the research assumed that all financial institutions saddled with the sole responsibility of small scale industry have the same goals and objective of enhancing small – scale industry as an economic activity.

1.6    LIMITATION OF STUDY

Some of the difficulties encountered by the research is lack of time. The researcher has a full semester work to carry on and still map out time for this research. So there is time constrain.

One cannot talk about the constraints involved in this study without mentioning the financial aspect of the project. As a student the project is sponsored from her meager pocket money as a result she finds it difficult to cover some inevitable expenses like stationary, transportation etc.