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Commercial Banks and Industrial are synonymous as the growth of one enhanced b y the other. Precisely, banking operation is an accent business which was already in the accentBabylonduring the classical civilization, particularly inRome.  But modern banking started inItalywhere banker apart from buying and selling of foreign currencies also took demand time deposits.

Therefore, this banking habits remained inItalyand other development nations until in the year 1894 when British Bank of West African (BBWA) came into being, now called First Bank of Nigeria Plc, which was established inLagos, founded by a shipping manager fromLiverpool, sin Alfred Jones. Then in 1917, Barleys Bank Ltd, now called union Bank Plc was established to challenge the monopoly of the BBWA. Union Bank has now the largest number of branches located allover the country.

In the same vein, Industry is as old as man on earth. Even the inception of the industrial revolution which scattered industries to all nooks and corners of the world claimed to be the originator. With good communication and banking networks, a lot of industrialists potential ones are attracted from all works of life to their industries here in this country. Consequently, it will be understood in the subsequent chapters that the abundant assistance rendered to the industrialists by the commercial bank to a large extent helps in the development ofNigeriaat large. Though both bankers and industrialists are atimes faced with problems. And this research work made honest attempts to expose some of the problems and recommend possible ways of arresting those problems.

Evolution and development of Commercial Banks in Nigeria

In the First stage of this these, we did say that banking operation is an ancient business. Even before the break of industrial revolution, there were banks in the ancient City ofBabylon, but the System of their operations were very crude. At this time, the procedure was that the owner visiting the banker who sat baking his bench or table through cheques were not yet known. Thus, the current term “bankruptcy” comes from the banker who could not pay-off his creditors. The most famous of these grew at of the customer of goldsmiths who took gold and silver from customers for safety keeping. They later discovered that they could lend such coin out and as certain proportion as revenue since not all customers came in for payment at the same time. To make this transferable, goldsmith issued the receipts in round number forms. Thus, serving as primitive bank note, but repayable on demand by the bankers in gold or silver. Hence, we can say that goldsmiths note becomes the precursor of modern banks note and goldsmith become the forerunner of modern banking.

Banking in Nigeria dated back to 1894 when the British or west African (BBWA) was established by taking over corporation itself established two years earlier in 1892, since that time, the foreign banks dominated Nigeria banking scene until 1913 when the national bank of Nigeria enraged to become the first indigenous bank in Nigeria. However, the origin of British bank of West Africa (BBWA) which later changed its name to a standard bank of Nigeria Ltd, and currently to as first bank of Nigeria Plc cannot be treated in an Isolation of Elder Dampster. Elder Dampster line, which name as become synonymous with shipping and maritime trade inWest Africasub region, was name after Alexander Elder and John Dampster.

In 1899, Anglo African bank was established atCrossRiverState, Calabar by the Royer Niger Company. The bank was later changed its name to Nigeria bank Ltd, but was later brought over in 1912 by BBWA. Then, in 1917 Barleys bank Ltd now know as  Union  Bank Plc was  established to change the monopoly of BBWA. It was remarkable that between 1929 to 1952, many indigenous banks were established but most of them collapsed under misadministration.

Union bank was incorporated as Barleys banks of Nigeria Limited on march 13th 1969, it was late changed to Union Bank of Nigeria Limited.

More so, the recent problem of distress facing some of our commercial banks especially our new generation banks, there is every tendency that the increase, impart Union bank stated not as a chance phenomenon rather for the basic social and economic needs for the society. The needs especially as concern industrialist no small measure will be seriously looked into in the next stage of this research work.

 1.2.    STATEMENT OF THE PROBLEM                     

Commercial banking is grouped in the serious industry, the quality of services rendered by our banks have been attracting criticisms from people in all work of life. The government functionaries, industries, the media and the general pubic are all very critical of such banking services, the complaints ranged from the those of long delays in cashing cheques, tenderness in granting loans and or credit unfriendly attitude of banks works.


From the little explanation made above, there is no doubt whetherNigeriais the home pride of technology, but there is every need to trace the extent the commercial bank in question has contributed to the development of industries inNigeria. Before we process, we should explain to the interested readers this two concepts “development and modernization” for purpose of clarity. In the sense, for a country to be said to have development, it must first and foremost be seen to have the inherent potentials development. Hence development process becomes synonymous with the potentials that bound in the country, but in modernization, we talk of mere artificial decoration of towns and stated with usually two rapid in native. Having taken a radial look at the two confusing concept, that is” Development and modernization”, attempts made to analyze the expression that will enable us to know the purpose of the study are as follows

(i)     To identify the problems facing the industrialist as regard to finance.     

(ii)     To find out how industrialists obtain their loans from the banks.

(iii)    To determine the problems facing them in paying back the loan.

(iv)    To ascertain effect default in loan repayment ahs in the banking business.

(v)     To identify the best solution in handling the problem.

(vi)    To identify whether Commercial Bank charges high, moderate to industrialists.

Attempts to answer all these questions will enable us to actualize whether commercial banks has help in development of industries inNigeria. For purpose of clarity ad simplicity, the above question of clarity and simplicity, the above question will be answered in details in subsequent chapters.

 1.4            SCOPE OF THE STUDY

The scope of the study is aimed at liberalizing the minds of the industries on the best means to organize and utilize loan granted to them by commercial banks judiciously, beside the need for the industrialists to adheres strictly to the credit terms, credit period cannot be over emphasized as born funding services as till that lubricates the industries. On the other hand, banks should carryout heavy enlightenment campaign to educate some of illiterate industrials on how best to shamed their request to the banks for easy handing. This could be done by organizing seminars, workshops, visit etc to the industrialists and potentials ones.

Also, this thesis mounted an intensive research on common features of commercial banks types of loan and measures for security such loans, sources of fund and loan advantage, some problems facing both commercial banks and industrialists regarding loans were also focused.


In this sub-section, there is need to state out research questions to be used in the study of the problem. The question are:-

(i)    What are the problems facing the industrialist as regard to finance (loan)?

(ii)   How the industrialists can obtain their loans from the Banks?

(iii)   What are the problem facing them in paying back the loan.

(iv)   What effect default ij loan repayment has in the banking business:

(v)    What are the best solution in handling the problems.

(vi)  Does the commercial bank charge high, moderate to industrialists.


The modern world scientific observations and investigations help us to eliminate greater risk of uncertainties in this research works there are two major schools of thought with two alternatives hypothesis as a trend to solution of this research problem.

(1)  Ho:    Industrialist have problem in obtaining loans;

         Hi:     Industrialists have no problem in obtaining loans.

(2)  Ho:    Commercial banks loans have no impact on industrialist

development inNigeria.

          Hi:     Commercial banks loans have impact on industrial

development inNigeria.

However, the out come of this survey will be seen in last of the thesis.


When we talk of the significance, we mean the benefits to be derived in researching the case. In this case, on completion of this work, Industrialists and potential ones will take advantage or the researcher exercise to know the simplest and cheapest means of fund sourcing through the banks rapid development of their industry.

Moreso, they will benefit know expert ideals and advice of the banks to obtain a greater height in their business.


This study is limited, based on the fact that there is no time, money and material resources to see to the whole commercial banks inNigeria. The study is limited in Union Bank of Nigeria Plc. Onitsha and the findings may not reflect the situation in the whole country and also may not be valid for the whole commercial banks inNigeria, but by the Large what happen in Union Banks inOnitshacan be said to apply to the other banks.


For the purpose of clarity and simplicity, there is used of define some of the terms used because time we suspects that own readers may give different on other meaning to our research terms used. Such term as “Role”, “Commercial Bank,”, Industry”, and development “.

According to universal English Dictionary, Role is defined as part or function assumed by a person in any action or proceeding.

World book Dictionary volume two, see Role as a part played on real life or function assumed by any person or things.

The Banking Decree of 1969, see Commercial Bank as an acceptance house and financial institution, it further states that any person who transacts banking business and whole include the deposits and withdrawals my cheque.

Web new collegiate define industry as a habitual employment in a useful work involving a skill that is mostly concerned in a particular business.

According to Ronald flatteners, Development can mean the actualization of an implicit potentiality, the simplest example being the patterned growth and maturation of seed or an initial grow-cell to the full adult form of individual plant or animal or human being without stipulating at this points, anything too weight or too prices, this can also certainly seen to apply to man and his social situation.

However, in our next chapter, we are going to have a classical review on what people have said about this topic. (Literature review) common features or commercial banks in Nigeria sources of funds to commercial banks, types of loans and how such loans could be applied, more, the importance and problems associated with loans all should be discussed. 


 Fleater R. (1995), Evolution and Development societyLondon, JET Publishers.

 OxfordEnglish Dictionary, 6th Edition

 Thomas M. (1981), Money, Banking and Economy New York, W. W. London and company.