The primary objective of the Nigerian Industrial Development Bank (NIDB) is the provision of provision of loans to?

Answer Details

The Nigerian Industrial Development Bank (NIDB) was established to promote industrial development in Nigeria. Its primary objective was to provide medium- and long-term loans specifically to manufacturers and industrial enterprises. By financing manufacturing ventures, the NIDB aimed to accelerate industrialization, reduce Nigeria's dependence on imported manufactured goods, and create employment in the industrial sector.

The NIDB should not be confused with other specialised financial institutions in Nigeria:

• Loans to farmers were the domain of the Nigerian Agricultural and Co-operative Bank (NACB), later reorganised as the Bank of Agriculture (BOA).
• Estate agents and real estate development were served by the Federal Mortgage Bank of Nigeria (FMBN).
• Transporters did not have a dedicated development bank; transport businesses accessed general commercial lending.

The correct answer is manufacturers, because the NIDB was created as a development finance institution focused on the industrial and manufacturing sector of the Nigerian economy.