The Role of Financial Sector in the Promotion of Non Oil Exports in Nigeria

THE ROLE OF FINANCIAL SECTOR IN THE PROMOTION OF NON OIL EXPORTS IN NIGERIA.

There is the need for promoting non oil exports, and the financial institution have a lot of roles to play in this direction. A summary of literature written by other people concerning them of this study and the need fro non-oil export promotion has been considered.

In a paper presented by professor the head of department of finance, university of Lagos. “He observed a huge drop in the value of Nigeria’s foreign trade. The drop he noted has been attributed to a decline in oil exports. To make up, therefore, for the decline or sluggish performance in the oil export sector and thus the inadequate foreign exchange earnings, measures to boast non – oil export activities should be vigorously embarked upon. [Read more…]

The Role of Commercial Bank in the Privatization of Public Enterprises in Nigeria

THE ROLE OF COMMERCIAL BANK IN THE PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA.

Various meanings of privatization have been stressed in the guide of explaining the basic concepts underlying privatization. Ibie (1986:16) recognizes  privatization as the “denationaliztion of national business” and also a process by which the size of an inefficient and effective public by which sector is reduced by transferring some of its functions to a relatively more efficient private sector “Ibie (1986:17).  [Read more…]

The Role of CBN in Agricultural Finance Development in Nigeria

THE ROLE OF CENTRAL BANK OF NIGERIA (C.B.N)IN AGRICULTURAL FINANCE DEVELOPMENT

PROBLEMS AND PROSPECTS.

Agricultural Finance Development in Nigeria – Many agricultural credit programmes in Nigeria have been  establishment  of each of these schemes since the early 1960s. The main purpose of each of these schemes has been to make credit available to small-scale farmers to enable them procure those modern inputs that are capable of raising the productivity of the traditional agricultural inputs – land and labour. It is a known fact that agriculture is the mainstay, of the economy of Nigeria since it is the major source of food for the growing population and was the only source of foreign exchange before the discovery of oil. [Read more…]

Banking Lending Policies and Recovery Procedure in Nigeria

Banking Lending Policies and Recovery Procedure in Nigeria

Banking play important role in the economy of a nation, in development countries like Nigeria for example, banks act as agent of development. They provide loans and advances inducing a variety of facilities, which could either, be long term or short term. This also explains why credit guidelines contained in government monetary circulation as well as the sector allocation which bank: and other financial institutions must adhere  to during a fiscal year. [Read more…]

The Role of Financial Institutions in the Management of Loan Syndication in Nigeria Economy

The Role of Financial Institutions in the Management of Loan Syndication in Nigeria Economy

FEATURES OF LOAN SYNDICATION

Large bank loans are made by syndicates of commercial and Merchant banks as a result of restrictions imposed upon the banks through the Banking Acts and Monetary policy Guidelines.

The following are the prominent features of a syndicated loan or credit.

  1. The numbers of participants are substantial. A minimum of two banks is the standard in Nigeria.
  2. Large amounts of debts are raised, Mitchel and Wall (1980) consider this an advantage, as according to them “a major advantage of syndicated loans for borrowers is the large size of financing available, their flexibility and the fact that they are relatively cheaper to arrange.
  3. Prepayment is customarily permitted
  4. The lending is governed by single common loan documentation
  5. Draw down can be flexible
  6. Syndicated loans are usually structured as term locus with floating interest rates.
  7. Syndicated loans are arranged by lead bank. The lead bank negotiates terms and conditions.  The lead bank could be a commercial bank providing loan funds or either a merchant bank or a commercial bank, which acts solely as the manager to the loan.

[Read more…]