The centre focus of this research is to find out about business funding patterns by Nigeria financial institutions. The research work also carried out in order to know the benefits to be derived from this research activities. The project contains five chapters with different features, therefore, chapter one deals with the introduction, background of the study, statement of the problems, statement of hypothesis, objectives of the study, significance of the study, scope of the study and limitations of the study. Chapter two, focus attention on the literature review, historical background of the case study, concepts of finance, classification of financial institutions, the various funds patterns by financial institutions and roles of commercial banks in economic development in Nigeria and so on. Chapter three gives a comprehensive explanation on research methodology, research design, sources of data collection, population, sample and the preparation of research instrument. Chapter four deals with the presentation and analysis of data, research findings and testing of hypothesis. Chapter five deals with summary, recommendations and conclusions.
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Finance is an indispensable element for the continuity and maintenance of any meaningful business enterprises. For instance, any business organization whether new, old, large, medium, small needs various kind of assets to commence its operation and also for the long run survival of every business organization finance entails the original amount with which a person entered a business. The classes of assets that a business organization would required include cash assets which are needed for working capital, inventories, building and land to purchase or rent, raw materials but to mention but few.
Also, financial institutions provide the necessary finance needed not only for economic development but also for industrial development. Therefore, the existence of these banks serve as a common practice that bank are usually called upon to assist towards economic development which in turn provide available services by financing through medium and short term lending and advisory functions.
1.2 STATEMENT OF THE PROBLEM
Financial institutions in Nigeria are set up to render some services among which is funding of business, granting of credit facility to their customer, however, there have been some problem associated with this services that they render to customers, problem of banking in Nigeria is as a result of the absence of adequate collateral security by customers, of borrowers collateral security is something that the banks is willing to hold against the loan it gives the customers.
Also financial institutions is also affected by mass illiteracy of the people, especially in the rural areas of the economy, people proffers to hoards or keep new money at home instead of saving them. Loan defaulter is rampant because they have no much knowledge about it, the rate of interest is to high for them to be able to repay.
1.3 OBJECTIVES OF THE STUDY
There is nothing without an objective, the objective of undertaking this research work is to provide answers to the questions that will bring confidence in the mind of the management in any financial institutions.
The objectives are;
1.4 SIGNIFICANCE OF THE STUDY
The findings in this study would be of significance in the following ways:
1.5 RESEARCH QUESTIONS
In every research work carried out, there must be research questions which proof the researcher to carryout the research work effectively. Below are the research questions for this study;
1.6 STATEMENT OF HYPOTHESIS
Statement of hypothesis are drawn from statement of the problem which the researcher want to test the hypothesis and identified areas of problems.
Ho: The rate of interest charged on loans granted by the first bank are too high
Hi: The rate of interest charged on loans granted by the first bank are not too high.
1.7 SCOPE OF THE STUDY
The scope of this research work is limited to the use of questionnaire and observation made in the field. It is noted however that all banks in Kogi State cannot be studied. Therefore, effort is geared towards examining First Bank Plc in Kogi State.
1.8 LIMITATIONS OF THE STUDY
During the course of carrying out this research work, the research is confronted with many problems among which are;
1.9 DEFINITION OF TERMS
During the course of this study, the researcher have come across some terms/words which the research want to give meaning to these words and terms.AN APPRAISAL OF BUSINESS FUNDING PATTERN BY NIGERIA FINANCIAL INSTITUTIONS