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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The function of the state government in recent times include the provision of amenities infrastructures which are capital intensive in nature over the years most state government  especially in the developing countries have been carrying out such functions with finds from external sources as loans, grants and development assistance or aids. These sources have often been complemented with domestic resources as statutory allocations from the federation accounts, internally, generated finds and domestic. However, events in the last few years have indicate the inadequacies of these sources. Nigerians experience in financing capital projects has been similar to those of other developing countries with large revenue from oil. Thus, with the downturn in the economy, following severe external stocks in the international oil market the necessity to work for viable alternative ways of financing capital projects becomes imperative; there has therefore been a general shift of focus to the capital market in financing government capital project this term attempts an examination if the problems and prospects of financing market.      

1.2  STATEMENT OF FPROBLEMS.

Effi9cient implementing of capital market strategies by the state government in financing capital projects will help a lot in completing numerous abandon projects and stabilize the nation’s economy. Over the years, state government in the country experience abandoned projects in their state government tom pay debts own to its creditors, etc for all these reasons the researcher now want to find out the exact factors militating against completion of these capital projects.

1.3   OBJECTIVES OF THE STUDY

I. to identify the problem facing state government either in the executive level.

II. to know whether the finds set aside nor executive a particular projects will be sufficient or not.

III to find out possible solution of solving these problems.

IV To know whether these problems are caused as a result of poor management of finds in the executive level.

V   finally recommendations, solution which can prevent occurrence of such  problem.

1.4    SIGNIFICANE OF THE STUDY

The theoretical frame work of financing state government project through the capital market were related and equated with the practice in Nigeria by state government which is an empirical model.

1.5  DEFINITION OF TERM

CAPITAL MARKET: capital market can be said to be a market for the institutionalization by long term project financing assist the state government in carrying out their project.  

PROBLEMS: the problems associated in the state as a result of abandoned project by the state government and the problems have been attributed to poor channeling of find to the appropriated project.

PROSPECT: the implementation of project by the state government will help a lot in enhancing the developing of project and stabilization of the nation’s economy.

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