Thesis Abstract

Abstract
The financing of state government projects through the capital market is a critical aspect of public finance that requires careful examination. This research project seeks to explore the challenges and opportunities associated with utilizing the capital market as a source of funding for state government projects. The study will investigate the current state of capital market financing for state projects and analyze the key issues that hinder or facilitate its effective use. The research will employ a mix of qualitative and quantitative methods to gather data and analyze the findings. Interviews with key stakeholders such as state officials, financial experts, and market analysts will provide valuable insights into the existing practices and challenges faced in financing state projects through the capital market. Additionally, a thorough review of relevant literature and case studies will be conducted to understand the historical context and best practices in this area. One of the main problems identified in the financing of state government projects through the capital market is the lack of awareness and understanding among state officials and investors. Many states may not fully comprehend the intricacies of capital market instruments and may be hesitant to explore this option due to perceived risks or complexities. This research aims to address this issue by providing clarity on the benefits and risks associated with capital market financing and offering recommendations for effective implementation. Furthermore, regulatory constraints and legal frameworks may also pose challenges to leveraging the capital market for state projects. The study will examine these barriers and propose strategies to overcome them, including policy recommendations and advocacy for legislative changes to streamline the process of accessing capital market funds. Despite these challenges, there are significant prospects for state governments to benefit from capital market financing. By tapping into the vast pool of investors and financial instruments available in the capital market, states can access long-term funding at competitive rates, diversify their sources of revenue, and promote transparency and accountability in project financing. Overall, this research project aims to shed light on the problem and prospect of financing state government projects through the capital market and provide valuable insights for policymakers, investors, and other stakeholders involved in public finance and infrastructure development.

Thesis Overview

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 PROBLEMS.

Efficient 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 SIGNIFICANCE 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.

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.