THE ROLE OF BANKS CREDIT FACILITY IN FINANCING AGRICULTURE IN NIGERIA. (A CASE STUDY OF NIGERIA AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB), LOKOJA)


THE ROLE OF BANKS CREDIT FACILITY IN FINANCING AGRICULTURE IN NIGERIA. (A CASE STUDY OF NIGERIA AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB), LOKOJA)

ABSTRACT

The primary objective of this project is to examine the role of bank’s credit facilities in financial agricultural sector with particular references to Nigeria Agricultural Cooperatives and Rural Development banks as a case study. The research work is entirely made up of five chapters. In chapter one, we painstakingly examined a number of issues such as statement of problem, aims objectives of study, significant of the study etc. chapter two, exhaustively dealt on literature review with in-depth analysis of all the views of the experts. Chapter three is centered on the research methodology of the study. Chapter four gives statistical and empirical account of the work based objectively and purely on the result of the questionnaire administered. Chapter five conclude the work with summary and recommendation based on the empirical findings, and references are also included.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

This research project is purposely carried out to examine the role of a financial institution in aiding, the agricultural sectors, through granting of credit facilitates, using Nigeria Agricultural Cooperative and Rural Development (NACRDB) as a case study.

In the year back, the Agricultural sector has been faced many difficulties to meet up with their target due to inadequate financial assistance or credit facility from the government.

Many researchers have been able to disclose that agriculture provides over 80% of employment and that over 80% of the farming population in Nigeria resides in rural areas.

Hence, to develop agricultural production some important facilities have been put in place to encourage farmers. And this brings about agricultural credit facilities.

Farmers before the introduction of the Nigeria Agricultural Cooperative and Rural Development Bank, seek credit from other sources such as commercial banks and private lenders which is really difficult if not unattainable due to the stringent condition imposed on intended borrowers by lenders.

The introduction of Nigeria Agricultural Cooperative and Rural Development Bank as a specialized agricultural bank has really relieved farmers of the difficulties imposed by the money lenders.

Agricultural is as olds the origin of Nigeria and the development in the area of agriculture has been a form of continuous variation.

The development of agriculture can be grouped into three stages:

Pre-colonial stage

Colonial stage

Postcolonial stage

1.         Pre-colonial Stage: It can be viewed into perspective which is stone and medieval age.

i.          Stone Age: In this era, human race were concerned with food and shelter, the method of farming then was so poor that crops were destroyed by most of the dangerous insects such as locusts, pest and diseases, etc.

ii.         Medieval Age: This state emanates immediately after the age of stone, which was really a way of improving various stages of the stone age.

The importance of agriculture was realized by a human being. Life was somehow primitive those men used animal skin for cloth others, cutlasses and hoes were made.

2.         Colonial Stage: By colonial stage, we refer to the period that Nigeria was actually colonies by British people and the coming of the country of British people about some development in the agricultural sector.

3.         Post Colonial Stage: This was the time that Nigeria became a nation of its own and no longer under the control and directive of the British people.

Agriculture was recognized as one of the main sources of Nigeria's income, in the sense that, it provides raw materials for industries and foreign exchange for the country’s import needs. Thus, the effort production of that the active farming population (smallholder and families) constitute a central piece of the agric delivery credit programs designed and implemented by NACRDB over the past decades.   

1.2       STATEMENT OF PROBLEM

With all the distance of NACARDB to farmers, numerous problems are still persisting, which are either caused by the farmers or the bank. On the farmer's side, some of the farmers hardly approach banks for loans, some do not have accounts with them at any time needed. On the other hand, the bank refuses to grant loans to peasant farmers at the right time.  

Among the problems are listed below:

Inadequate Funding: The banks are finding it difficult to source their fund to meet the needs of the farmers.

Hardship in Recovery of Loan: The loans granted to farmers are paid in half or not even paid at all. Thus, discouraging the banks from granting loans to farmers.

Poor Interest Rate: NACRDB interest rate of 21% is the approved rate before recent time. The difficulty is not on the side of serving the overhead cost (as general administrative).

OBJECTIVES OF THE STUDY

The primary objective of this research work is to examine the role of bank credit facilities on agricultural financing in Nigeria.          

RESEARCH METHODOLOGY

Research methodology refers to the different approaches or methods used by the researchers in the collection of data. This method was equally carried out in the collection of data in respect of bank credit facilities in financing agriculture using NACRDB as a case study.

SCOPE OF THE STUDY

The scope of the work covers the NACRDB operation evolution and roles towards the development up to this year 2004.    

Despite the fact that there are other sources of finance for agriculture, this bank plays a vital role in agriculture credit facilities which boost maximum productivity among the other sources, loans from the NACRDB have been found to be easily attainable and less stringent than the sources.

Therefore, the study covers the workings of NACRDB with regard to operation and organization.

It is very important to note that the research work does not seem to have covered all areas concerning NACRDB but efforts have been made to cover as much as possible, the area of concerning studies with regard to NACRDB funding or agriculture.

SIGNIFICANCE OF THE STUDY

The importance of the studies are:

It serves as a source of information to other future researchers.

To stimulate the interest of the farmer and the roles of NACRDB equally.    

it is a means of updating the knowledge of individuals farmers who are benefiting from the activities of NACRDB.

To bring to the notice of the government and other finances of the bank on the need to improve on their present financing of the bank.

LIMITATION OF STUDY

This research work supposed to have contained more information than what we have gathered but due to the following:

The reluctance of must of the organization in providing the required information.

Inadequate time to enable us to conduct in-depth research into the subject matter of this study has hindered the production of this research work.    

The financial constraints particularly at the initial stage of this project would have halted the successful completion of the study.

Nonavailability of sufficient literature review.

Despite the above problem mentioned, the researchers made use of his best luck by patronizing most of the bank, thereby dissenting most of the recommended factor mostly from NACRDB, for example on a member of the KABBA Branch rendered his maximum cooperation in this regard, regardless of the fact that they are not ready to disclose their secret to any researcher. I was opportune to get the required information from a colleague who himself is an ex-student of the federal polytechnic, Idah

DEFINITION OF TERMS

Banking System: This comprises of those financial institutions that have to do with the acceptance of deposits and giving of loans to customers. They include the central bank, the commercial banks, the merchant banks, and the development banks.

Collateral: It is evidence, security property e.g sticks or bonds, pledged as security for repayment of a loan.

Credit: Is money borrowed from someone or from an institution by agreement with the intention or promise to pay it back at a later date, with or without interest.

To determine whether one needs credit or not some financial aspects must be looked into

.

THE ROLE OF BANKS CREDIT FACILITY IN FINANCING AGRICULTURE IN NIGERIA. (A CASE STUDY OF NIGERIA AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB), LOKOJA)



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.ORG

Researchwap.org is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.org guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.org is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.org" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.