The effects of loan default on externally funded small and medium-scale enterprises in Nigeria

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Periodical article

Title:	The effects of loan default on externally funded small and medium-scale enterprises in Nigeria
Authors:	Raji, M.A. Akintola, J.O.
Year:	2000
Periodical:	The Nigerian Journal of Economic and Social Studies
Volume:	42
Issue:	2
Pages:	213-222
Language:	English
Geographic term:	Nigeria
Subjects:	small enterprises loans
Abstract:	Since 1986, when the economic reform programme was adopted in Nigeria, there has been a decisive switch from capital intensive, large-scale industrial projects to small and medium-scale industries. Loan schemes were introduced to assist in funding these enterprises. This paper examines the efficiency and viability of loan programmes of the Nigerian Bank of Commerce and Industry and the Nigerian Industrial Development Bank with particular reference to the assisted agro-allied and non-agro-allied enterprises in the small and medium-scale subsector. The projects studied cut across enterprises in all the industrial sectors in Nigeria, including food processing, beverage, tobacco, wood, textiles, chemical related production and the transport and equipment sector. The study used the multiple discriminant analysis model to determine variables which separate defaulting from non-defaulting beneficiaries. The promotors' loan experience gave the highest contribution to the total distance separating defaulters from non-defaulters. Bibliogr., sum. [Journal abstract]