GOVERNMENT DEVELOPMENT FINANCE INSTITUTIONS OPERATIONAL POLICY: CHALLENGES AND PROSPECTS
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The role of Development Finance Institutions (DFIs) is very crucial in any economy. Nigeria has been promoting development financing since the 1970s. The efforts led to the establishment of so many such institutions over the years. Despite the efforts, it appears that DFIs and development financing are facing enormous challenges despite tremendous prospects in view of Nigeria's substantial human and natural resources endowments. The study examined the role of DFIs in Nigeria, especially in development financing. The study evaluated the challenges facing the institutions and efforts to overcome the obstacles. Arising from the challenges, the study looked at their prospects and how they can be effectively used for development. The study used qualitative research method and relied on documentary materials and interviews. The study found that substantial efforts were made to ensure DFIs played a major role in development financing, but the changing economic environment, especially interest rate, securitization, infrastructure, among others, constituted the major challenges. The prospects of DFIs are very enormous. The study recommended that they should be strengthened to serve as vital instrument of development financing in Nigeria.