Various criteria had been used to define small and medium scale
enterprises in different countries of the world. In Nigeria, small and
medium scale enterprises are defined as those in the industrial sector,
which exclude general commerce, whose total capital investment does not
exceed N2.5 million (including land and working capital or whose maximum
turnover is N12.5 million annually).
These enterprises are very essential and important for the economic
development of any economy. They serve as sources of raw materials for
the large-scale enterprises, channel of employment and for rural
development. As a result, the monetary authorities through the Central
Bank of Nigeria (C.B.N.) credit guideline directed the commercial banks
to give a certain percentage of their total assets to the small and
medium scale enterprises as credit.
The project aims at examining the extent the commercial bank have
completed with the guideline in providing credit to the small and medium
scale enterprises, if they have complied, how adequate are the
financial assistance and what the impediments on their way are. At the
end suggestions will be made for improving or increasing credit
facilities to the sector.
The main source of material of this project is primary sources such as interviews.
Data analysis does not go into statistical theorems and methods but based on simple comprise and percentages.
Bases on the analysis, finding emerged, recommendations for
improvement of credit faculties to the small and medium scale
enterprises made and finally conclusion drawn.