THE IMPACT OF FOREIGN LOAN ND FOREIGN INVESTMENT ON THE NIGERIA ECONOMY (A CASE STUDY OF FIRST BANK OF NIGERIA PLC, IBADAN)
1.0 INTRODUCTION OF THE STUDY
In a word where nation are unequally endowed with human natural, financial resources, a high degree of interdependent do exist. No nation can therefore operate as an Island for survival may be impossible.
This interpendent is so vital that it cuts across ideological and potential political lines. Hence we see, for instance trade between the Eastern and Western blocks despite their strong ideological differences.
1.1 STATEMENT OF PROBLEM
Owing to such inequalities and independence, there is a constant flow of international resources from one country to another, particularly from surplus to deficit areas. There resources are transferred through many methods that sis foreign loans and investments both of which bring about economic development if well directed and utilized.
1.2 RESEARCH QUESTIONS / HYPOTHESIS
These researches are broadly classified into two parts, first part relates to internal test management problems while the other part is on the problem associated with borrowing nations.
There are ten research question as follow:
- What are the role of financial institution in assisting foreign loan?
- How far has foreign loan and foreign investments enhance or boost employment in the nation?
- What are the impacts of foreign investment on the economic and industrial development of the nation for the past forty (40) years?
- Has the foreign investment been able to create development most especially to the third world countries?
- What are the risks encountered by the financial institutions in foreign investment to the economy?
- Is the economic situation conducive for borrowing or more funds?
- Is these monetary term to monitor the realized fund vise-visa application to the agreed economic and industrial development?
- Incase of default is there any measured of recovering to foreign loan?
- Is there any collateral security adequate and valid for borrowing nations?
- What are the advantages of foreign loans and foreign investment in economic and industrial development?
1.3 PURPOSE OF THE STUDY
i. To examine critically the aids of foreign loans and foreign investment giving to developed countries and developing countries.
ii. To find out the reason behind foreign loan and foreign investment in economic an industrial development of Nigeria.
iii. To appraise the impacts of foreign loans and foreign investment in economic and industrial development in Nigeria.
iv. For stimulation of employment.
1.4 SCOPE OF THE STUDY
Although foreign and foreign investment taking as dictionary of business and management defines advance to be banking loan. It goes further to define loans itself as a business transaction between two legal entities whereby one party (the lender) agrees to lend finds to the developing countries.
PLAN OF THE STUDY
The plan of the study is to examine the prospect and impact of foreign loans and foreign investment in economics and industrial development in Nigeria.
To achieve this, the granting of foreign loan and foreign investment in economic must be given to the developing countries more than given to developed countries in other to be productive and effective.
It is necessary to determine which percentages of loans given out will yield and appreciable revenue and its impact and effect on general price level index. Based on the findings, additional recommendation of any will be towards efficient and effective collecting foreign loan and foreign investment.
1.5 LIMITATION OF THE STUDY
The study is expected to cover the research aspect, however due to time visit more banks and financial constraint of the research been due to the non-availability of some required materials to conduct the research work. in spite of these constraints, an attempt had been made to solve processes involved to the best of our knowledge.