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Since independent Nigeria the giant of Africa has spent much time and resources, both human and a material trying to convince the developed countries and indeed the whole world that she (Nigeria) is capable of developing her industrial capabilities. Much of the efforts made in this direction have found expressions mostly in international conference and seminars, newspapers report, radio announcements and various national development plans. Industries have actually increase since after the independent, but the disappointing record of economic performance in the last decade has led to the reopening of the debate on the strategy of industrialization. Nigeria is still a net import of all sorts of goods from needless to heavy machinery, simple because most of the industries where established for their immediate lucrative such as beer, soft drink and other consumers goods industries without the consideration to nation’s industrial needs or for the utilization of local materials. Besides most of the large scale industries before the industrialization decree were foreign owned and were associated with significant possibilities of income leakages. This inspite of the rapid increases in the gross national productivity (GNP) in last decade, the poorest segment of the population peculiarity those in the rural areas has received relatively little benefit. Unfortunately the bulk of Nigeria businesses are small-scale industries of the number of business establishments, they account for about 80% or above of the total number of enterprise in the country. The important role they play in the development process was observed by the first progress report of the second National Development plan “in spite of the anticipated rapid growth of the wage sector, the major solution to the nations unemployment problem will have to be found in other areas like agriculture and small scale industries development. Inspite of all these, the small scale industries sub-sector has continued to suffer from lack of credit most all the governments financial programmes for the small industrial credit scheme, fund for small scale industries has remained largely inadequate and of little effect. The banks and other financial houses cannot help matters either despite the central bank credit scheme to industries. It would be noted in this regard that majority of the small scale industries would not be able to meet the requirement of the bank and other financial institution lending policies. Therefore given this financial constraints.


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