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FINANCING SMALL SCALE INDUSTRIES IN NIGERIA: A CASE STUDY OF MAKARFI SUGAR INDUSTRIES LTD
ABSTRACT
This project seeks to examine the prospects, problems, and scope of Small Scale Industrial Development in Nigeria with special emphasis on our Company’s efforts at establishing a Mini-Sugar Refining Plant at Makarfi, one of the Local Government Areas in Kaduna State, where sugarcane grows in abundance. The selection of this topic was informed by the belief that a radical review was required to our quest for industrialisation with new emphasis on the promotion of small scale industries which would be cheaper to establish, easier to manage and simpler to maintain. This was against the previous trend of establishing very large, expensive and complicated as well as capital intensive plants which took very long time to complete. At the end they became white elephants due to their capital intensive nature. The study examines some large scale companies that have not been very successful like Nigerian Sugar Company (NISUCO) Bacita and Savannah Sugar Company Numan as well as those small to medium scale ones such as Santi and Lafiagi Sugar Companies and their degree of success. The Nigeria Industrial Policy 1990 was also examined as well as the role of Structural Adjustment Programme which gave birth to new institutions like Nigerian Economic Reconstruction Fund (NERFUND), Nigerian Export and Import Bank Ltd (NEXIM), Small and Medium Enterprises (SME) and Export Processing Zone Authority and their activities. The role of the newly created Nigeria Sugar Development Council has also been examined. Some of the recommendations made include:- vi Restructuring Financial Institutions by the Government to ensure that SMEs benefit from their functions with ease. Reviewing Industrial Policy periodically to eliminate areas that proved to be out of tune with current realities. Getting funds SME’s should be made more liberal to avoid the mistakes of NERFUND and SME Funds easier created. Backward and Forward Linkages between Universities, Research Institutes and industries for more effective development in terms of funding research, proto-type machinery production and raw materials development. Enabling environment creation for large scale agricultural production for both export and local raw materials provision. Encouraging Private Entrepreneurs to establish small and medium scale industries either singularly or as joint ventures. Large sugarcane plantations should be established to encourage the establishment of more processing plants.
TABLE OF CONTENT
Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi
CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10
CHAPTER TWO
LITERATURE REVIEW – – – – – – -11
CHAPTER THREE
Research methodology – – – – – – -39
Design of study – – – – – – – -40
CHAPTER FOUR
Presentation, analysis and interpretation of data – -48
CHAPTER FIVE
Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69
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