A small-scale industries is a sale volume in the monetary unit. The essence for this research work is to evaluate the extent to which small-scale industries in Nigeria have been able to obtain loans and risk finana from Nigeria commercial bank as a major source of finance to the economy.

This study is interested in finding out and commencing the major cause of the commercial banks unwillingness to lend to small scale industries an also to find possible solution to the lending problems of the commercial bank with regards to the prospect.

In order to expand the industry and it’s activities then there is a need to introduced the banking system to foster the grating of credits facilities

Beside, structural Adjustment programme (SAP) was introduced in orders to product the small-scale industries (S S T ‘S) that was designed to exhibit reliance.

In conclusion, the commercial bank should design program on appropriate ways of utilizing loans e.g. seminar, symposia and workshop and also the commercial bank should Stan granting the small-scale industries medium term loans instead of the usual small term loans.



It is certain that Nigeria is endowed with a lot of natural resources. These resources to mention but a few are skel, crude oil, natural gas, Iron ore, palm oil, ground nut yam, cassava etc. these resources found the major export earning before the era of independence an generate 80% of our then total revenue the precolorual era could be regarded as era of substance economy. Each community then was noted for one particular raft or the other some families were known as either artists or blacksmiths on their craft as their source of livelihood ad they were operating as subsistence level fermi (1984)

As a result of increased population and increased demand for these service, there were efforts to increase specialization an efficiency by these craftsmen it worth knowing that there was little or capital intensive Because of this lack of capital intensive, production possibilities curing the precolonial, the federal government did not free movement towards the upliftment of the

industries. The economy under the precolonial, the federal government. What merely existed was the cowry monetary system. Hence, the luck for efficient and effective monesed economy did not exert a concrete influence on economic activities. To foster the industry, there was the introduction of banking system which facilitated granting for credit facilitates e.g. loan and advance (Nwosu 1984)

In post independence economy, the government made no remarkable impact on small-scale industries establishment. The federal government in order to protect the small-scale industries (SSTS) In the country introduces the structural adjustment programme (SAP), which was design to exhibit reliance. It allows the SSTS to g row without unhealthy competition with the foreign goods, as it discouraged the importation of raw material that can be preceded locally.

The measures introduced to boast the growth small scale industries (SST’S) include the establishment of national economic reconstruction fund (NERFUND) and the small and medium enterprises (SIGE) fund which is

manned by the CBN. Inspite of these effort by the government, the SSE’s are still struggling to liberate themselves from financial arises the small scale industries (SSI’) tends to differ among countries and individual

The central bank of Nigeria (CBN) create guidance to commercial and merchant bank for this purpose therefore, small scale enterprises shall include cottage industries and defined as enterprises who cost excluded cost of lend but including working capital does not exceeds N10, CBN (1994)


It is obvious that much is gained economically and otherwise form the establishment of small-scale industries in any economy, Nigeria as a case point should not be an exception. This present economic situation in the country in such that one need to wonders above the small-scale industries. These are many commercial bank today in Nigeria shall be complete monetary in native for the survival of the economy.

Presently, the small-scale industries are very much dependants on commercial

banks funding for effective growth. The government in recognition of the need to eradicate the funding problem of small-scale industries has stipulated a lot of rules gathered towards adequate funding of the small-scale industries.

The research is interested in finding solutions to the financial inadequacies and other related problems of the small-scale industries with particular references to commercial banks.


1. To examine the participation of commercial banks in financing small scale industries.

2. To examine the term structure of loans and advance of commercial banks to small scale industries

3. To identify the importance for small-scale industries financing to the commercial banks.

4. To identify the cause of variability of small scale industrial financing by the commercial bank.


The managers of various small scale industries need to be aware of the source of their financing problem and loans they can tackle them effectively on the part of policy makers, that is the government agencies responsible for formulating polices and strategies for the development of small scale industries with this study.


The definition of small-scale industries has facilted the industrial and economic growth of the develop nations of the world. Consequently the desired growth in the main sale industries could be regarded as stepping stone for the growth of the economy.