In business transaction, granting of loan syndication is quit universal.  It is an acceptable method financing in Nigeria transaction and activities. This research work high light into An Evaluation of Loan Syndication as an instrument of project financing in Nigeria (A Case study of Access Bank plc).  The cause of writing this project study, granting of loan syndication from CBN to others banks and customer is a practice that cannot be avoided as long as business is concerning, to some sensitive sector of the economy like banking industry, granting of loans constitute their major earning, that means the larger the loan, the fatter, the interest receivable to the same time poor assessment and analysis of findings can be devastating.  The risk not withstanding, granting loans enhance economic growth and development in any nation.  Provides the lubricant for continuity of transaction availability cash.  In a bid to achieve a meaning research study work this research will review of related literature and recommendation an evaluation of loan syndication as an instrument of project financing in Nigeria oral interview will also be conducted with management of the bank.  Other supplementary instruments are data collected from journals magazines, questionnaire and existing text books.  All these data collected will be analyzed critically and description with the and of table in research work.
The relative insufficient fund for capital investment is a common factor in every economy especially in emerging economics of the world.  In developing countries like Nigeria, the law level of capital investment is clearly shown in high unemployment rates, low productivity and corresponding how standard of living for the greater majority of the population.    
One of the solution they have come up with is loan syndication which is aimed spreading risk, the major reasons is that banks is the syndicate shared the risk on investment, projects.  Syndicate may also arise because an additional syndicate has been defined as an association of finance or industrialists or banking consortion formed to carryout some industrial project (Orji, 1996).
Loan syndication could be defined as the “AA and process whereby a group of finance institutions are raised to provide credit facility to a borrower under common agreement term and single loan document relation (Obalam 1990).
According to Onwughara (1998).  The first syndicate loan could be treated to the banker of the middle ages often distribute financing risk among several houses to support project flow.
Loan syndication is needed when:
  A borrower wants to raise a relatively large amount.
  When a borrower does not wants to deal with a large number lenders.
   When the amounts involved exceeds the exposure of the lenders.
1.1      Background of the study      
1.2      Statement of the Problem    
1.3      Objective    of the study       
1.4      Research Questions             
1.5      Research Hypothesis            
1.6      Significance of the study      
1.7      Scope, Limitation and Delimitation of the study
1.8      Definition of Terms       
1.9      Reference
Review of related literature  
Theoretical Review               
Meaning of Syndicated Loan  
2.1      The Procedures for Syndicating a Loan
2.2      Marketing the Loan and Syndication Meeting
2.4.1       Review of Empirical Literature Impact of Loan Syndication in the Economic
Evaluation on Syndication Loan Financing    
2.3      Summary of Literature Review     
2.4      Reference
3.1      Research Design    
3.2      Area of the study                
3.3      Population of the Study                     
3.4      Sample Size and Sample Techniques    
3.5      Instrument for Data Collection
3.6      Method of Data Presentation
3.7      Method of Data Analysis              
3.8      References
Data Presentation, and Analysis
4.1      Presentation, Analysis,         
4.2      Test of Hypothesis
Summary of Findings, Conclusions and Recommendations
5.1  Summary of Findings                  
5.2      Conclusion                                
5.3      Recommendations        
       The relative insufficiency funds for capital is a common factor in every economy especially in come up economics of the world. In developing countries like Nigeria the low level of capital investment is clear shown high unemployment rates, low productivity and corresponding low standard of living for the greater majority of the population.
       Finding a solution to this problem of providing funds for capital investment has a major pre-occupation of financial institutions in Nigeria. Beyond the traditional term loan, share offers, bonds and so on, business organization and financial institutions alike have seek way of approach equipment for a task, try to overcome the problem insufficient fund for capital investment.
       One of the solutions they have come up with is syndicated loan which is aimed at spreading risk, the major reason is that banks in the syndicate share risk of large investment project. Syndicate may also arise because an additional syndicate member provides information for investment. Syndicate has been defined as an association of financiers or industrialist or banking consortium formed to carryout some big industrial project (Orjih, 1996).
       The spectacular growth of loan syndication as an alternative financial instrument for project financing occurred as a response to several economic factors in Nigeria notable among these were:
-      The national industrial policy of 1989, which is aimed at achieving, accelerated space of industrial growth in Nigeria economy.
-      The introduction of the structural adjustment programme (SAP) in 1986 culminating in the establishment of foreign exchange market (FEM) and depreciation in the economy. This made imported machinery and equipment very expensive and requiring huge capital outlays which most companies or financial institution cannot comfortably afford.
Restriction on credit expansion by government and monetary authority to minimize inflation, central Bank of Nigeria dose not include syndicated loan finance within the credit ceiling, Banks are able to syndicate loan without interfering with the credit ceilings.
In addition, there are certain legal and regulatory limitation on lending activities of Access bank such as the statutory lending limit as provided in the banking Act of 1986 S.B (1), the liquidity requirement etc. in other to surmount these legal and regulatory limitations on lending activities of Access bank, loan syndication has become an alternative credit delivery technique aimed at spreading risks and reducing the impact of the restricting laws and regulations. What is perhaps significant about loan syndication in the country is not rapid which have been quite remarkable over the years.
Also study of the extends to which project in the country employ syndicated loans as an alternative financing with particular references. The researcher carefully appraised all aspects of loan syndication as financing alternative in the country from the point of view of the borrower. It was made clear in thus work that in consolidation of numerous merit of syndicated loan financing as against its demerits. It is to be used as a last resort but should be considered along side with equivalent alternative.
       There are conflicting views as to whether project should be financed by syndicated loan or not. The opposition to the use of alternative especially in Nigeria argued that syndicated loan is expensive and induced much administration work. Also there is need to point out in every clear term the advantages inherent in syndicated loan as a medium and long term financing alternative, beside a review of the role of financial institution in financing huge projects through syndicated loan is of paramount importance the researcher identifies these problem and considers necessary to carryout an in depth study on them.
The main objective of this study is to evaluate project financing as an alternative to loan syndication.
-      To examines the operations, advantages and disadvantages of loan syndication as financing options.
-      To evaluate the operations, advantages and disadvantages of project financing options.
-      The examination in general terms of various issues involved in loan syndication.
-      The find out whether loan syndication is really a new approach to other form of borrowing.
-      Does government policies on syndication have any effect on Bank lending activities?
-      Does your bank lay emphasis on any particular sector of economy in giving out syndicated loans?
-      Who bears the greater part of the risk involved in syndicated loan?
-      Does the introduction of SAP has an effect on syndicated loan?
Hi:   Syndicated loan has been employed against other alternatives as a medium/long term financing alternative.
Ho: Syndicated loan has not been employed against other alternative as a medium/long term financing alternative.
Hi:   Syndicated loan effect in our national economy.
Ho: Syndicated loan does not have any effect in our national’s economy.
Hi:   Syndicated loan has much impact in our national economy.
Ho: Syndicated loan does not have much impact in our national economy.
       This research work will be of great significance to the research for the award of Higher National Diploma (HND) in Accountancy Department it will equally be of much significance to graduates mainly in the field of banking and others who will like to gain more knowledge on loan syndication.
       Another significance of this study is to look into ways of making it easy to finance a capital project which requires a syndicated loan; also to encourage financial firms to jointly finance such projects which one financial firm cannot single headedly finance. It is hoped that after these study, it will provide information to general public on how to employ loan syndication as an alternative project financing. It will also help institutions to formulate suitable policy that will guide them in financing a big project jointly with other financing firm.
Loan Syndication: According to Anyanwokoro Mike
(1999) defined loan syndication as an arrangement by which different banks or financial institutions team together to grant a large loan to a customer.
Project:- A project is an undertaken with a view of
maximizing project and reducing or minimizing loss.
Project Financing: Project financing means providing the necessary funds or facility needed for the efficient and effective implementation of a project.
Syndicate: This means an association of financiers or
industrialists or backing consortium formed to carryout some big industrial projects.
and finance review vol32 no1


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