CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The successive development plan in Nigeria has laid on the attainment of self-reliance. The need for this national objective is because much is expected form individual from the viewpoint of providing employment opportunity; self-reliance is the basic for food and material production of the industrial raw materials.
But Nigeria small-scale industry continues to decline despite the so-called priority giving to this sector. However, the discoveries of the central bank must reserve a proportion of their minimum credit allocation for indigenous borrowers for small-scale enterprises. The largest prescribed in 1979 was 10%. This was subsequently raised to 16 percent in 1980 and had remained at that level till date. Even though the available data shows that the performance of the commercial against this directive have been disappointing the central bank intents to spare no effort in ensuring that bank fully comply without compromising the smooth functioning of the national banking systems.
Without the development of the small-scale industry in Nigeria, the national guest for industrialization will certainly remain at a stake. It the humble opinion of the researcher that future development in our induet4ization must address the basic issue of creating linkage within the economy to begin to produce real input to our manufacturing activities. Priority attention must therefore be giving to industry for which domestic input; could easily produce of this by automatically bringing to mind the agro-allied industry like food processing and other by-products, the objective should be to maximize the value added to them in processing and manufacturing as final goods or immediate inputs.
Empirical evidence indicate that strong producer incentive to small scale industry are necessarily o met the food requirement but also to provide growing input supplied and demand as a foundation for sustained industrial growth. The present economic constraint may well turn out to be a blessing in disguise to