Industrial financing in Nigeria: a review of institutional arrangements.

Abstract

This paper reviews institutional arrangements for industrial financing in Nigeria, especially the development banks and specialised credit-granting agencies/ schemes with direct focus on the industrial sector. The overall conclusions were that most of these institutions have performed below expectations as most industrial enterpises in the country have continued to be self -financed. Also these arrangements have deteriorated further in recent times due to some operational bottlenecks, including inadequate funding and under- capitalisation, unwieldy institutional .framework and overlapping of functions, inadequate staffing and high cost of operations. Thus, on- going initiatives to streamline the dense institutional framework for industrial credit delivery through the elimination of functional overlaps and filing of gaps are steps in the right direction.