Empirical Study of Bank of Industry’s Loan to the Development of Micro, Small and Medium Enterprises in Nigeria: (2002-2013)

Abstract

It has been the main objective of Nigerian government to achieve high rate of economic growth that would lead to high economic growth and reduce poverty level. The research is based on the implications of Bank of Industry and loan on development of Micro, small and medium enterprises in Nigeria. The problems noticed are that the lending of funds by Bank of Industry to micro, small and medium enterprises have not been very positive because of government unstable and inconsistent policies, high interest rate charged on loan and inability of customers to have access loan because of liquidity ratio of customers deposits. The research design used is expose fact research model involving events that have already taken place before the multiple linear regression analysis based on the classical regression methodology was used to form the main procedure that was fooled in this study. The findings are based on the implications of Bank industry’s (BOI) interest rate on micro, small and medium Enterprises output in Nigeria; the effect of Bank of Industry’s (BOI) interest rate MSMES output in Nigeria; the effect of availability of BOI credit proxies as total deposit on MSME output in Nigeria, the effect of Bank of Industry loan repayment on MSMES output. The study recommends that Bank of Industry should provide loans and advances to MSMES; reduction in the interest rate charged on loan there is need to redirect BOI focus on making Nigeria a producer nation through MSMES output in Nigeria.