Bank of Industry Lending Policy and Growth of Microenterprises in Anambra State: A Focus on the Leather-making Clusters. African Journal of Business and Economic Research

Christopher, E. Obianagwa and Emmanuel, O. Ezeani and Louiemarie, A. Ifem and Ugwuozor, Ifeanyi Samuel (2025) Bank of Industry Lending Policy and Growth of Microenterprises in Anambra State: A Focus on the Leather-making Clusters. African Journal of Business and Economic Research. African Journal of Business and Economic Research (AJBER), 20 (2). pp. 345-372. ISSN 1750-4554

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Abstract

Several studies have investigated the effect of commercial bank lending on the growth of micro, small, and medium enterprises (MSMEs) in Nigeria. At the same time, there is still a dearth of empirical literature examining the contributions of the Bank of Industry (BOI) to the growth of microenterprises in the country. Against this background, the study investigated the effect of BOI lending on the growth of microenterprises in Anambra State from 2015 to 2023. Although the microenterprises provide many channels for jobs and revenue sources in the state, they face funding challenges for business expansion. As a leading development finance institution in Nigeria, understanding the role of the BOI in the growth of microenterprises becomes fundamental. Methodologically, the study relied on the theory of government failure to interrogate the research problem. The study utilised an ex post facto research design and employed a survey method for data collection. A total of 109 leather clusters were selected for this study from a pool of 150 registered leather clusters in Anambra State. It was determined using the Taro Yamane formula (1967), while the purposive sampling technique was relied upon during the distribution of questionnaires and interview sections. Also, the study adopted descriptive statistics and qualitative descriptive methods to analyse the primary data generated through questionnaires and interviews. The study found that the BOI microenterprises lending scheme did not advance the growth of leather-making enterprises in the state. It recommends, among others, the need for the BOI to grant leatherworkers waivers on the provision of collateral and ranking guarantors in civil service as the basis for loan procurement. The findings and recommendations of this study would help the BOI to address the identified shortfalls and develop initiatives required to dismantle the current financial barriers facing small business growth in Anambra State.

Item Type:	Article
Subjects:	J Political Science > JA Political science (General)
Divisions:	Faculty of Management and Social Sciences
Depositing User:	miss Sylvia Onyia
Date Deposited:	23 Aug 2025 20:45
Last Modified:	23 Aug 2025 20:45
URI:	http://eprints.gouni.edu.ng/id/eprint/5183

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