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The Contribution Of Bank Of Industry (boi) To Industrial Development In Nigeria (1980-2010)
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1.2 STATEMENT OF THE PROBLEM:
Labour may
be abundant but the gross national output of the less developing
countries (LDC’s) remain limited by. It is widely recognized that the
LDC’s must make additional efforts to mobilize and achieve effective use
of their available resources. The mobilization of external resources
requires policies that would facilitate the process of capital
accumulation.
Many economists, including Rostow and Lewis, emphasized
capital accumulation as the major factor governing the rate of the
development (Udabah 1999).
BOI has carried out its mandate under
difficult conditions with Government support; it has been able to
overcome many operational and organizational problems. A few lessons may
be drawn from experience. First, the assumption of the exchange risk by
BOI’s sub borrowers in a context of exchange rate instability (a major
devaluation took place in September 1986 as part of the adjustment
process) had seriously affected their viability and thus undermined
BOI’s own portfolio quality and credit worthiness, although the
government did subsequently step in to share the exchange losses. This
emphasizes the importance of DFI’s having a reasonable balance between
foreign currency and local currency liabilities. Secondly institution
building is a slow and continuous process, lack of discipline in
following sound banking practices and inadequate commitment to continue
staff training could adversely affect the institutional effectiveness.
Thirdly, the BOI should have contained to some extent its zeal for its
development rule and maintained a better balance between developmental
and commercial objectives. Lastly, BOI’s experience emphasizes the need
for more thorough sensitivity analysis of all subprojects to take
accounts the impact of changing economic situations.
1.3 RESEARCH QUESTIONS
The study revolved or tries to answer the following research questions;
a) What are the contributions of the bank of industry to industrial development in Nigeria?
b) How have the BOI contained and maintained a better balance between developmental and commercial objectives?
c) To what extent has the contribution of BOI’s influenced the selected macro economic indicator in Nigeria?
d) How have the BOI been able to overcome many operational and organizational problems?
1.4 OBJECTIVES OF THE STUDY
The broad objectives of the study are to examine the contribution of the bank of industry to industrial development in Nigeria.
Specifically, the study seeks to achieve the following:
a) To establish a relationship between the BOI’s disbursement and industrial development in Nigeria
b)
To determine if there is equilibrium or stable relationship between
BOI’s disbursement and the rate of industrial production in Nigeria.
c) To gain useful policy conclusion from the study.
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