ABSTRACT through the central bank of Nigeria (CBN) should




The purpose or aim of this study is to examine the contribution of Social Media in on small scale businesses in Nigeria .Also to view and analyze social media challenges facing small scale business using Fina Micro Finance bank for a case study.

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This study relies purely on secondary data, and using multiple regression model, the study find out

that bank lending accounts for about 82.6% variation in economic progression in Nigeria for the period under study.

The study concludes that there is a statistically significant impact of social media on economic growth in Nigeria.

This, proposed that the performance of the Nigerian economy is greatly influence by bank lending. The study Recommends that the federal government of Nigeria through the central bank of Nigeria (CBN) should Strengthened the banking sector to ensure an improve credit flow to the activity sectors because of its strategic importance in creating and generating growth of the economy.

From the results of the test of hypotheses and interpretation, this study found the followings;

Firstly, there is a statistically insignificant relationship between aggregate bank lending and economic growth in Nigeria. The implication of this finding is that the small scale micro financing banking sector in Nigeria showed a weak capacity and low level activities of banks to finance the Nigerian economy. Secondly, there is a statistically significant. relationship between DMBs assets (which is a measure of importance of banks) and economic growth in Nigeria.

Lastly, on the overall, this study found that there exist  86.2% degree of variation between aggregate bank lending and economic growth in Nigeria for the period 1987-2012, which implied that aggregate bank lending account for 86% variation in the growth of the Nigerian economy. The implication of this finding is that for the Nigerian economy to grow it depends to a greater extent on the banking sector to finance the activity sectors in Nigeria.

From the foregoing, this study recommends the followings:

Firstly, the federal government of Nigeria (FGN) through the central bank of Nigeria (CBN) should strengthened the micro  banking sector to guarantee a progressive credit flow to the activity sectors because of its strategic importance in establishing and generating development of the economy. Secondly, the FGN through the CBN should ensure the financial stability of the Nigerian economy by starting programmes that would improve the growth, operation, and quality of banks in Nigeria




Descriptive Data was Collated and evaluated. The Study discovered the diverse ways at which social media as assisted in marketing their product. Furthermore, it has also been discovered that small scale enterprises uses more of social media for marketing their product. Been afraid of that making use of social media in marketing will bring about disclosure to legal suits.

The study proposes that every small scale business or organizations should try as much as possible to make use of social media in marketing their product to achieve a positive life changing performance. More so, the study also recommend that small scale business should recognize their weakness and strengthen in order to rebrand and innovate their businesses with the use of social media.

It is also discovered that despite the awareness of computer age some managers of small scale business did not have the knowledge did not have the knowledge of using computer in creating awareness in marketing and advertisement of their goods and services.











1.1. Background to the study

This chapter provides a short-term outline of the study presented in this project. The background to the research, Organizational Background statements of the problem, significance of the  problem, and research question, as well as the Aims and objectives,  The overview prepares the reader for chapter 2; the review of literature.

The supremacy of the social media in the 21st century in altering the social organization cannot be over-emphasized. Social media has been concluded to be the most operational foundations of social change in modern times due to the role it has played in the political, religious, educational economical and socio-cultural spheres of the society. It is well known that, any business that does not exploit the power of the social media in this time could be look upon as regressive and unprogressively. The main area in which the social media has been very operational is in the discourse that it is a conduit of beneficial information to economic agents (such as small-scale businesses) in achieving their economic goals (Zuwarimwe and Kirsten, 2010). Owing to this fact, the World Bank research portfolio has incorporated social media concept with the aim of understanding its role in socio-economic development. This comes in the wake of the failure by orthodox economic theory to steer countries out of economic distress towards a more sustainable economic development trajectory (World Bank, 2003: Zhang et al,2006)

The social media also referred to as networking or Web 2.0 has been defined by Ahmad et al (2012) as “internet based applications that enable greater application through user generated content”. They went further to state that social media comes in the form of podcasts, social blogs, web logs, news portals, interforums, facebook, Twitter etc, to generate a public domain to communicate. Tapscott and Williams (2008) on their own part conceptualized the social media to mean collaboratively produced and shared media content and to network communities, with the aims of sharing their views and encounters. This they stated assists in creativity, open communication and sharing of knowledge among users. Furthermore, Kaplan and Haenlein (2010) on their own part defined it as ‘a group of internet-based applications that build on the ideological and technological foundations of Web 2.0 and that allow the creation and exchange of user-generated content’. It includes web-based and mobile based Technologies that are used to turn communication into interactive dialogue among individuals, organizations and communities. Typical examples of social media platforms include websites such as Facebook, Twitter, Flickr, YouTube, and the interactive options on these websites, such as the “re-tweeting” option on Twitter. These instrument are referred to as media because they are tools which can also be used for the storage and Dissemination of information, however, unlike the traditional media like television and Radio, most of the social Media tools allow their users to interact as re-twitting” and “comment” options on Facebook illustrate (Kaplan And Heinlein ibid).

Conceptualizing social media from a more pragmatic perspective, Sweester and Lariscy (2008: 179) defined the Social media as a “read-write web where the online audience moves beyond passive viewing of the web content to actually contributing to the content”. Commenting on the different definitions of social media the policy and Legal Advocacy Centre (2013) opined that one thing that is common in most definitions of social media is the point that it is based on user-generated participation. Clark and Aufderheide (2009) added that another attribute of the social media which distinguishes it from the traditional media is the choice it accords to its users. Choice enables people to access the information they like to learn about through the social media, eliminating the gatekeeper role of traditional media. Nevertheless, the choice offered by social media reduces the shared experience that viewers of particular traditional media channels usually have; on the other hand, it creates a network of individuals with like interests and similar preferences.

In trying to socialize and connect with each other online, two major methods used are the; social networking sites and electronic messaging. Writing on the use of Electronic messages, Jones and Fox (2009) from a research discovered that more than one-third of America’s teens and young adults send electronic messages and use social networking sites, and more than one-third of all internet users engage in these activities. In Nigeria, as discovered by Asuni and Farris (2011:4), over 3 million people have facebook accounts, while about 60,000

People are on Twitter. Most people who use social media tools access them through computers and mobile devices such as phones and Tablet Pcs. Analysts suggest that majority of phone purchases in the coming years will be more for using online networks rather than making phone calls (Baekdal, 2008).



An Organization is a collection of assets, objectives, Strategies and policies. Inorder to create groups to work in Organizations, generate structure, process and working conditions. Microfinance banks in the country were introduced to nurture small businesses, provide credit facilities to micro-businesses, cooperative societies and individuals who normally cannot obtain loans from the Deposit Money Banks due to strict collateral requirements.


The history of microfinance sector is as old as when man started using money. People have always been borrowing, lending and saving, for as long as there has been money. This has always been done within communities, using their own system and methods without any external assistance or services.

The micro finance scheme has primarily developed as a response to the incapability or apathy of commercial banks and the formal financial system to serve the needs of low-income households and micro enterprise. According to the central Bank of Nigeria (2005:25), the formal financial system provides services to about 35% of the economically active population, while the remaining 65% are excluded from access to financial services.

Looking back into history, one would see that Nigerians have always engaged in economic activities, but such activities continued for a long time on subsistence basis. Agriculture, for instance was in most cases carried out simply to feed the immediate family. Other activities such as pottery, weaving, etc were for personal needs and market within the locality (Oladele, 1988:12).along the line fina Trust bank was introduce is not well known at the beginning but with the help of social media and publicity. Fina Trust Microfinance Bank was established and issued license in   Nigeria by the central bank of Nigeria in September 2009.And commence operations October 2009.Fina micro finance bank as made difference in people life’s in terms of success and they keep their words. They are unique and provide a friend atmosphere for their customers The bank provide retail banking and also provide loan for youth and graduates with good mindset to be an entrpreneurer.  the last few years, the bank have attracted patronage from the Small & Medium Scale subsector of the economy, carved a niche as a supportive Bank for Retail businesses and empowering Micro businesses through distinctive services. The Bank’s commitment to value creation for all its stakeholders has earned it a solid reputation as a responsible corporate citizen and employer of choice. As the fastest growing Microfinance Bank in Nigeria, they share the privilege of empowering their Customers. With the assistance of social media Fina micro finance bank has been able to progress an incomparable strategic alliance with Sterling Bank Plc and Fidelity Bank Plc to enable their Customers deposit or withdraw from any of these Bank branches. This opportunity creates over 250 strategic locations for the bank to meet customers’ needs. Furthermore, the bank recently launched state of the art technology provides ease for the use of ATM