ABSTRACT

The establishment of development banks in Nigeria is expected to enhance industrial development in the country through medium and long — term financing of industries. However, this has not been efficiently achieved since the establishment of development banks in the country. These development banks have not been efficient in managing their financial resources. As a result of this, this research is aimed at discovering the success of development banks towards achieving their set objectives and to evaluate the contributions of these development banks to the industrial development of the country. Furthermore, the research will investigate strategies for improving the efficiency of the banks in finding out and establishing viable projects through loans and equity participation. In carrying out this research, both primary and secondary data were collected and analyzed. The analysis involved the use of financial rations, regression and t — test analysis. The result of the regression analysis shows that the cost of projects has a significant effect on sanctions. This can be seen from the high value of R2(0.851) which shows 85.1% degree of relationship between costs of projects and sanctions. This result also shows that development banks have contributed significantly in the development of industries in Nigeria. Also result of the t — test shows that there is a significant difference between loan collection due and actual collection which means that 801 has been efficient in the management of their loan business. In conclusion, in as much as the bank has contributed its quota to the development of industries in Nigeria, there are still 4 scopes for improvement. This necessitates certain recommendations which include the infusion of new capital so as to increase its capital base; the giving of V greater attention to monitoring on-going, projects; more effective loan recovery strategy; ensuring management autonomy and accountability and establishing appropriate guidelines for lending activities.