AN EXAMINATION OF EFFECT OF OFF SHORE UNIT ON PROJECT FINANCING IN NIGERIAN ECONOMY

The issue of  off – shore banking has to do with those financial activities that aid international trade traction and other business activities that off the shore of the entity. Hence, it include a variety of financing activities like off – shore aids and grants etc. However, it has something in connection with financing activities that is geared towards the raising of funds for financing corporation operation outside the location or the shore of the country. Wherefore, the issue of development project and has made a serious challenge to Nigerian banks and other developing countries as a problem to the U.S investment ( capital market) mostly due to lack of foreign exchange and off – shore funds to execute her development project. Effort has be made by Nigerian government and developing countries to borrow from some of these international financial institutions including the world bank but the anticipated or excepted result has not been reached.
History made us understand, that Nigerian government effort can be traced back to the year 1988 which borrowed from world bank for the construction of the railway extension to borrow under the guarantee of the united kingdom government. Despite the size of Nigeria as a whole, she still has a problem of foreign exchange to execute her major project. Hence, the size of a country does not stand but her or the closeness to the euro – market is what should be considered important. For example, Bahamas and Caymans they are very small in size but because of their proximity to the united state investment market, they were to realize a large sum of off – shore fund for their economic development.
It is necessary to note at this junction that European residents and corporations have no problems of foreign exchange for the development of their economy knowing most of the investment made her in the buoyant American economy. However, united kingdom is known to be at the center of euro – currency and has a long tradition of being the main center of traditional finance. Also, another problem facing Nigeria is how to finance her faulty oil refinery which is due to lack of off – shore funds for the project. It is this respect that the provision of off – shore funds in necessary. Moreover, the term off – shore fund can also refer to a financial institution which is physically located in a country which provide financial services like deposit and loans to foreign residents, corporations, and institutions of the utter exclusion of the country residents, corporation and institutions. Also, it can be referred to as the operation of a financial institution which has little connection with that countries financial system. OYEGBA O (2012).
To start with, one of the problems of the issue of off – shore banking is the problem of foreign exchange or off – shore funds to execute her various project. Hence, having this deficiency the country should bear in mind that the proximity or closeness to euro – market is what really matter, hence should press on how to achieve that. Another, this is the connectivity to the center of euro – currency which the United Kingdom. Finally, the problem of management is also one of the problem facing those country and that is where the research to yet is directed towards.
This research is objective towards the following.
1. To examine critically the possibility off – shore banking unit attracting deposit from foreign residents for our issue in another country.
2. Another objectives of off – shore banking unit is to help European not only to serve but also to invest in American companies. This attracting euro – dollar to American country.
3. The off – shore banking unit also assist in collecting information about American companies and their stock prices, volume of trade turnover profit and dividend and further assist them through procedure of buying shires.
4. finally, the off – shore banking unit established the euro – dollar services in brussol to cope with the problems associated with physical shipment of securities, the risk of paying for a surrending stock and bond transfers.
One of the significance of the off  - shore banking is the provision of advisory and management services rendered for foreign residents as well as their customers through their investment. Management division. It is of prime importance that any developing countries wishing to establish off – shore banking unit should abstract herself with such information network. This is an asset and should be acquired. Off – shore banking unit as well borrow from any foreign banks, financial institution including from foreign office of the home government. It can also borrow from the parent bank through it has take into account its euro – dollar research liability and the minimum borrowing period of which in case of united state is over night.
Off – shore banking units do lend to foreign residents the foreign officials of the home countries corporations and  the offices in foreign countries or to the parents banks. As with deposit, the funds involved must have to do with international or non – home business. In the case of the U.S the foreign affiliates of a company cannot borrow from an off – shore banking unit to finance its parents banks, the parent bank has to put up to 3% reserve requirement on its net euro – currency liabilities OBTOMA (2015).