Abstract
In summary of this, the objective of this study therefore are to look at the operations of loan syndication in Nigeria. The study will also give suggestions on how the problem of loan syndication can be solved to improve the practice of loan syndication in Nigeria.
The Study investigated the role of financial institutions in the development of the Nigeria economy. The objective is to find out whether the role of financial institutions is improving the growth and development of Nigeria economy, to know what the government doing to maintain or encourage the financial institutions in the development of the Nigeria Economy. We tested two hypothesis using chi-square methods. In hypothesis one, we tested the relationship between financial institutions and economic development. After calculated it was discovered that chi-square calculated is greater than chi-square tabulated. So the null hypothesis was rejected and all the alternative is accepted which said that, there is a relationship between financial institution and economic development. In hypothesis two, we tested the relationship between financial institutions and implementation of government policies. After calculated, it was discovered that chi-square calculated is greater than chi-square tabulated and the alternative is accepted which said that there is relationship between financial institution and implementation of government policies.
The study among others recommend that financial institution should channel to the key productive sector of the economy such as agricultural sector and manufacturing sector which will lead to rapid growth and diversification of the economy.
CHAPTER ONE
INTRODUCTION
1.1 Background Of The Study
           Financial institutions occupy a vital position and play a land able role in the economy of the nation. Their major purposes are proper mobilization of find as well as provision of capital for industrial development, which is aimed at enhancing economic growth and development.
In the early year of banking operation in Nigeria, banks performed their intermediary function by giving loan mainly on individual basis (i.e separately) but as the country entered the threshold of development and more investment opportunities opened up, industrialist started demanding large sums of money which is provided by bank on medium or long term basis.
           However, banking is a highly regulated industry the world over with restrictive monetary and credit guideline in loan growth and reserve requirement, selector allocation to priority sector of the economy, and excess liquidity mop-up through the assurance of stabilization securities to the bank to mention a few due to these restrictions, it is difficult for a bank to meet up with the huge loan demanded of their customers. Also, it is well know that lending is not risk free, and that bank prefer to spireas their risk with others in the banking industry.
