THE PROBLEM OF WORKING CAPITAL MANAGEMENT IN THE MANUFACTURING INDUSTRIES IN NIGERIA: A CASE STUDY OF EMENITE LIMITED
ABSTRACT
This study was embarked upon to ascertain problems of working capital management in the manufacturing industries in Nigeria. The study has a total of three chapter and first chapter titled the introduction started with preamble. The aims and objective of the study were duly light lighted in chapter one. The objectives of the study includes; to discuss how working capital are
managed, t o discuss the problems of working capital management in the manufacturing industries in Nigeria, it is likely to inform us of the avoidance of indebtedness in working capital management with the use of determinant of adequate amount of working capital. And finally, to make recommendation on ways of strengthening the positive contributions of manufacturing industrial sector to the national economy. The more manufacturing industries management working capital, the greater the tendency to reduce indebtedness. Also the significance of the study which include both the theoretical and piratical significance explained. Chapter two included the literature review. Here the earlier works of erudite scholars, theories and analysts and its relevance to the study were analyzed. Chapter three s where the finding of the research were light lighted which included, that heavy working capital should be invested in raw material for a firm to continue in production. Indispensably, manufacturing industries should maintain good working capital cycle, because it gives an in sight into the amount of cash investment required to finance current assets.
I equally recommended that the study should undertaken further and that working capital management should be the basis of granting loan to any manufacturing industry if profitable investment is to be made. I also recommended and verified before credit for than is granted. I finally concluded the chapters and the project by admonishing on the importance of utilizing the finding of the research.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The term working capital originated with the old iankee peddlers, who would load up his wagon with goods and then go off on his route t o peddle his wares. The merchandise was called working capital because it was what he actually sold, or turn over” to produce his projects. He generally owned the Arragon around horse, so that they were financed with ‘equity’ capital, but he borrowed the funds to buy the merchandise these borrowings were working capital loans, and they had to be repaid after each trip to demonstrate to the bank that the credit was sound. If the peddler was able to repay the loan, then the bank would make another loan. From this, working capital is conceptualized as the provision of sufficient current assets that will be able to sustain the normal process of acquisition of raw materials and supplies, turning out the finished product and collection of payments. Working capital management deals with the determination of the ratios at which to hold the current assets and current liabilities in the overall valuation of the firun. Working capital broadly refers to current assets and current liabilities. Net working capital is the deduction of current liabilities from the current assets
