CHAPTER ONE
Manufacturing is the ability to produce goods with labor, materials and inputs produced by others. Simple forms of production have characterized all organized societies, but the application of steam power for production in Britain in the late eighteenth and nineteenth centuries significantly increased production capacity, and since first industrial revolution, economic progress has in many peoples minds was associated with the ability to produce and trade in manufactured goods. Manufactures now dominate world trade and are typically about 80 percent of world exports in one year with the development of accounting for nearly a third of that. In most developing countries, outside the LDCs and oil-rich countries, manufacturers account for the majority of export earnings. In terms of regional distribution, the majority of developing countries manufactured exports come from East Asia (70 percent in 2005) to about 40 percent of those in China. Export data are also available by product category gives developing countries and regional actions is manufactured exports by selected types of products. It shows developing countries as a group to take over 50 percent of world exports in labor, simple categories of textile technology, footwear and leather.

The banking sector in Nigeria in year 2006 was an oligopolistic structure that only ten banks 11.1% of the operation 90 represented 54.5% of total assets, 52.4% of total deposits and 46.1% of total deposits of deposit money bank at 31/12/2006 amounted to 2.705 billion by #. While overall credit to the economy amounted to 1302.2 billion #. In 2006, the sectoral distribution of credit deposit banks continued to favor the least productive sector of the economy in only 40.9% of the total credit went to agriculture, solid minerals, exports and manufacturing low of 46.2% in 2001.

In 2007, the overall performance of banks was not significantly different from what happened last year. Ten of the 89 banks operations accounted 55.3% of total credit. At 3047.9 billion, total assets, the level at December 31, 2006.
The manufacturing sector or the service company with capital investment exceeding # 950,000 in machinery and equipment. The importance of the manufacturing sector in promoting economic development has always been in developing or prior strategies. Moreover, Nigeria like other developing nations adopted the use of alternative import policy as manufacturing means. This objective of producing domestic consumer goods in these industries.

The main functions of commercial banks Nigeria

1. Acceptance of deposits and Storage

2. The granting of credit facilities to consumers

3. The transfer of funds on the instructions to customers

4. Client Investment Management

5. Act as trustees and executors of "will

6. Provide facilities for the care of important documents and other valuables.

7. Please provide exchange facilities for travelers

8. Advising clients on insurance issues

9. Project Finance

10. Provide financial advisory services to clients

11. Real estate transactions packaging. Problem Statement

The nation had stated import substitution and transformation of political commodity in the past. They had made the sector to be dependent on industrialized nation in the world for capital goods and has contributed significantly to our current economic situation. The sector is currently heavily dependent on imported raw materials and spare parts. This put pressure on countries in exchange gains. Manufacturing sector like any other business can not be operated largely unless funds are available for maintenance and the purchase of necessary equipment and inputs. on other deposit money banks hand accused the manufacturer loan given to them. So do not bring a high level of losses in their banking activities. Unfaithful and dishonest to them are criticized suites of this manufacturer. Furthermore, the small scale business can hardly be more stressed, over the manufacturer on the Nigerian economy were denied evaluation report attention or could it be that the money bank deposit are not playing their role in promoting manufacturing?

Adequate funding is a requirement for running a successful business and it is certainly one of the main reasons for the poor performance of most companies in the manufacturing sector in Nigeria. This is because banks are reluctant to invest in their sector distress that is surrounded by a hostile business environment is not encouraging. Sad enough, the scenario changing nowadays, at least before the accident in the capital market, is that capitalists and banks prefer to move facilities to customers to enable them to invest in the securities markets. Such

customers would in turn gontsmultiplyto bad "during the night doing nothing rather than investing too much money in

all SMEs (small and medium enterprises to scale) or business so cal. The thought of capitalists and banks still weak

thus depriving the real sector the manufacturing sector the opportunity to generate employment.

Objective of the study

1. To determine if the lack of commercial banks credit to the manufacturing sector has contributed to the reduction of manufacturing productivity.

2. To determine how the refusal of the deposit money banks to give loans to the manufacturing sector hit.

3. Also consider the problems militating against manufacturing outside of finance in Nigeria and recommending appropriate.

ASSUMPTION OF STUDY

The hypothesis tested in this study

Ho: The manufacturing sector contribution has no significant impact on lending to deposit money bank.

Ho: high rate of interest on the money bank has no effect on the significance of manufacturing development in Nigeria.

IMPORTANCE OF THE STUDY