STATISTICAL ANALYSIS OF PERFORMANCE OF NATIONAL POVERTY ERADICATION PROGRAM IN NIGERIA

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STATISTICAL ANALYSIS OF PERFORMANCE OF NATIONAL POVERTY ERADICATION PROGRAM IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The research work is to assess the Impact of National Poverty Eradication Programme (NAPEP) in financing small scale industries. The role of government agencies towards the development of small scale enterprises is quite interesting. These enterprises have a very important impact on the life of everybody in the society. Small independence businesses are everywhere and in every line of work, they can also be seen in every community. This business is as old as man. So virtually everything is done in life involved the element of business. Small scale enterprise constitutes an importance in today’s business activities or system. The role of small scale enterprise in our economic history however, has been one of the distribution and contributions.

Although its relative importance has decline with the growth of the big business, small scale business is still the major contribution to the countries economy. Business in Nigeria today is made up of both large and small business. Today small scale enterprise have to enjoy more prestige than ever before because of its vital contribution to the nation’s economy. So vital is small scale business. There are successful small scale enterprise operating like the manufacturing plants, retails, stores, wholesales, drugs, computers, construction firms and hundreds of other type of business.

Nigeria population was estimated to be 140 million in 2007 with about 75% of this made up of small scale enterprise operators. Lack of full study of government agencies in the development of these enterprises especially, the financial institution made it impossible to know the size, structure and function of these small scale business to the development of the economy.

Government agencies are charged with the responsibilities among others to carryout duties and deliver utilities as may be regulated from time to time on behalf of the government for the purpose of uplifting the standard of living. Government agencies such as the National Poverty Eradication Programme (NAPEP).

NAPEP aims at eradicating absolute poverty in Nigeria, through the streamlining and rationalizing of exiting alleviation institutions and implementation of relevant schemes and programmes. NAPEP was established in 2001. Different ministries and agencies were recognized as core poverty alleviation ministries and agencies. Some of these ministries and agencies are: Agricultural and Rural Development, Education, water resources, Industry, employment, labour and productivity.

1.2 STATEMENT OF THE PROBLEM

Most government agencies have undergone number of re-organization especially which affect their forces and activities that lead to effective performance and lack of proper control on their activities.

The most obvious problems of NAPEP is how to produce or provide efficient financial resources, technical assistance, security on loan given out to customers, evaluation of projects that are financed which may take more time than stated at the beginning. Also, the project time table, which depends on nature and complexity of the project, it may take one to two years sometimes longer from when the project was identified to when it was commissioned.

On the part of small scale enterprises (SSE) how effective are they utilizing the services rendered to them by NAPEP. Also are they able to cope with the policies adopted by this agency in obtaining loan and other services rendered such as interest rate on capital collateral facilities and the role of government.

1.3 OBJECTIVES OF THE STUDY

1. To assess the impact of NAPEP in financing of small scale businesses in Kaduna state.

2. To analyze the various ways by which NAPEP has contributed effectively to the development of the economy.

3. To find out the role of small scale business in the development of the economy in Kaduna.

4. To highlight some of the government policies that help in financing and developing small scale enterprises.

1.4 SIGNIFICANCE OF THE STUDY

The significance of this study cannot be overemphasized as it is a prerequisite for the award of Higher National Diploma in Business Administration as such it is important to the researcher.

The study will also enable government officials, that is, the bureaucrats and policy makers to know whether the programme actually contributes positively on the lives of the people especially in Kaduna State, so that both government and policy makers can adopt the policy programme, as well as implementation strategies that will avoid mismanagement and misdirection of the nation’s scarce resources.

The study is also significant as it seeks to verify whether the policy programme is beneficial with its impact being felt on Small Scale Enterprises.

The study will in the end suggest possible ways through which government policy programmes can be improved or effectively implemented, especially those programmes that relates to the economic wellbeing of the people.

The study will apart from addition to general knowledge, will also reveal issues that can be of theoretical importance to the academicians in other field.

1.5 RESEARCH QUESTIONS

1 What is the impact of NAPEP in financing of small scale business in Kaduna state?

2 What are the various ways by which NAPEP has contributed effectively to the development of the economy?

3 What is the role of small scale business in the development of economy in Kaduna?

4 What are some of the government policies that help in financing and developing small scale enterprises?

1.6 SCOPE OF THE STUDY

The researcher for the purpose of this project work wishes to limit her study to National Poverty Eradication Programme (NAPEP) as it relates to financing of small scale enterprises. This study will cover the area of activities and role played by the government agency

1.7 LIMITATIONS OF THE STUDY

In any research undertake it is usually associated with some constraints. Some of the constraints of this research work include the following:

a. Available data: in no small measure, incomplete and inaccurate data also provide a lot of difficulty in carrying out this research work. As a matter of fact it is because most of the senior staff were either too busy running their official responsibility that made them hardly to give the researcher the needed time to gather information or they were not just willing to do that, though some did cooperate just like most senior staff.

b. Time constraint: this was the biggest constraint faced by the researcher because combing rigorous drilling of the institution i.e. lectures, assignment (both individual and group), test etc. on carrying out the research work made it virtually impossible to dedicate all the time needed to carry out this research work mostly easily.

1.8 DEFINITION OF TERMS

Entrepreneur: A person who makes money by starting or running business, especially when this involves taking business risks.

Business: Activity of making, buying, selling or supply goods and services for money.

Industries: The production of goods from raw materials. The people and activities involved in producing a particular thing or service.

Capital: Amount of money that is invested or is used to start a business.

Poverty: The state of being poor, conditions of abject/extreme poverty.

Alleviation: To make, less severe, ease.

Investment: the act of investing money. The act of giving time or effort to a particular task in order to make it successful.

Marketing: This is a total system of business activities designed to plan price, promote and distribute wants, satisfying product and services to present to a potential customer at profit.

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