ASSESSMENT OF NATIONAL POVERTY ERADICATION PROGRAMME (NAPEP) IN FINANCING SMALL SCALE INDUSTRIES

ASSESSMENT OF NATIONAL POVERTY ERADICATION PROGRAMME (NAPEP) IN FINANCING SMALL SCALE INDUSTRIES IN KADUNA STATE

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ABSTRACT
The study is on the Assessment of National Poverty Eradication Programme (NAPEP) in financing small scale industries in Kaduna state. The aim of NAPEP is to eradicate absolute poverty by helping many people in financing small scale business and training others on crafts and trade so that they could be self reliant.

 

This aim is based on the fact that small scale businesses are the major contributors to the economic development of any nation or state. The research revealed that most obvious problems of NAPEP are how to produce or provide efficient financial resources, technical assistance, security on loans given to customers and the evaluation of projects financed by NAPEP.

 

Other problems include the evaluation of the project time tables, the complexity of the projects and the implementation of government policies. In spite of these problems, the research found out that NAPEP programmes have brought about increase in small scale facilities thereby empowering small scale business owners in Kaduna state since the establishment of the organization.

 

Base on the research findings, the research recommended that NAPEP programs should be rejuvenated and strengthened so as to provide the necessary support for better performance. It is also recommended that NAPEP programmes should focus more on the rural communities at the grass root level since the rural communities are usually more affected by poverty.

 

The research emphasized the need for an effective monitoring of entire NAPEP programmes so that mismanagement of funds and diversion of other resources for other uses could be checked.

 

 

 

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.

 

 

 

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