CHAPTER ONE  INTRODUCTION 1.1 BACKGROUND OF THE STUDY

The financing of micro, small and medium enterprises investment is today the major pre-occupation in various economies in the world and Nigeria in particular, there is a general consensus among such enterprises stakeholders in the country that accessing finances and financial services is the major problems affecting the sector and the economy. Adequate and access financing is a necessary condition for the survival of any business enterprise and considering the  fact that the contribution of micro small and medium enterprise to employment generation and capacity building.

It was based on those fact  that  the  successive government in Nigeria initiated programmes and policies toward financing MSMEs with the intention of enhancing availability of funds for enterprises development in the  country.

Some of this policies include the one issue by central  bank of Nigerian (CBN) annual guidelines for banking

operation in the country, thus guidelines have consistently serve as a policy directing commercial banks to extend Ten

(10) persons of all loan advances to micro small and medium enterprises. The policy was later modified and allowed banks  to extend 10% of their profit before tax to such enterprises.

Also in order to encourage entrepreneur micro, small and medium to secure loan the government come up with policy and programmes Nigeria export import Bank (Nexim) was established to offer incentive of guarantee and facility to local entrepreneurs to boost export, the introduction of national credit guarantee scheme (NCGS) aimed at providing financial support to mention just but few.

Although, if efficiently carried out/implemented the economy would be able to mobilize or yield proportionate result in terms of financial accessibility, that no viable project like micro, small and medium enterprises is frustrated due to lack of finance.

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