Most of the funds needed by companies in the small and medium scale category including value- chain businesses such as flour milling ,cassava to starch, sugarcane to sugar etc are sourced from the few developmental banks in Nigeria. These sectors could be a catalyst for growth and employment generation in Nigeria, provided the environment is conducive.However, commercial banks do not perceive them as good risks ,and they have ended up having to rely solely on the developmental banks. The President of Manufacturing Association of Nigeria, Mr. Frank Udeme Jacobs has advised that the recently established Developmental Bank of Nigeria, dedicated to Industrial development should be fast tracked.
“Government also needs to recapitalize the Bank of
Industry and should use it more effectively to ensure that the needed
financing of industry is attained,” he further said.
On the other hand, Sani Shehu the President Miners Association of Nigeria has informed that miners would soon get relief from the Miners Micro finance Bank for small scale and artisanal player which is being processed. He said the bank would begin operations in 2016. Miners have been heavily impeded by finances, owing to the capital intensive nature of their business. This has affected the delivery to non - metallic producers of glass and ceramics which many serve.
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