Abstract:
Every nation both developed and developing economies requires money. Productivity which is the hallmark of all economy is anchored on the availability of required fund. Fund which stimulates production in the economy is managed by banks through their loan administration and management; which must be liberal enough to produce the required level of encouragement to both entrepreneurs and government. Moha (2006:110), said, for any developing country to escape the vicious circle of poverty, there has to be foresight and insight into the funding of entrepreneurial activities to stimulate production in all sectors of its economy. One major constraint to production in the sub-Saharan Africa, as opined by Adeniyi (2006:62) is poor funding. Leadership be said, is the rallying point of all activities. This vital point (leadership) the Central Bank of Nigeria recently took up headlong to make commercial banks assume their proper place in the funding of production activities in the economy. It means not only profit to the banks, but also creation of new jobs and increased capacity utilization. Bank loan have to affect different sectors of the economy, viz; Agriculture, Commerce, Mining, Education, Industry and different services which yawn for holistic development. Soludo (2006:08), lent his support to the above when he said, the heartbeat of any nation is its diversified and effective production sustained economy. It is a bull-wave against any external infiltration. Loan policy meaningfully framed and religiously implemented is all that is needed to transform Nigeria. This study has much impact on all and sundry. Development of the society, very much lies on investment put into it. By virtue of loans and advances, a society can be made vibrant and the economy monetized to accommodate all; that is, the ordinary man can be uplifted to investment levels.
