LOAN SYNDICATION: A SOURCE OF BUSINESS FINANCING IN NIGERIA

ABSTRACT: This study was carried out to examine loan syndication: a source of business financing in Nigeria with special reference to GTBank and Access Bank. Specifically, the study aims to  examine the general terms of the various issue involved in Loan syndication,  find out whether Loan syndication is really a new approach to or another Loan syndication can help in industrial development of the country and  examine the extent of penetration of syndicated loan financing among business organization in the country. The study employed the survey descriptive research design. A total of 35 responses were validated from the survey. From the responses obtained and analyzed, the findings revealed that  the various issue involved in Loan syndication is the expensive nature of syndicated loan, time wasting, repayment schedule and additional long-term debt. Also, loan syndication really a new approach

loan syndication help in industrial development of the country and  the extent of penetration of syndicated loan financing among business organization in the country is high. The study thereby recommends that Banks must search for avoidable dishonest borrowers, although credit depends on good faith, the amount of confidence that the parties have on each other, it does not reduce the importance of scrutiny of those occasions where good faith has been violated either deliberately or inadvertently. This is necessary to ensure that a borrower does not divert the fund to some other frivolous ventures such as taking fresh titles and/or increasing the numerical strength of his wives..