THE ROLE OF FINANCIAL INSTITUTIONS IN AGRICULTURAL DEVELOPMENT (1990-2010)

THE ROLE OF FINANCIAL INSTITUTIONS IN AGRICULTURAL DEVELOPMENT (1990-2010) [A CASE STUDY OF NIGERIA AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK]

Code No: 535904

₦5,000.00

ABSTRACT

This study examined the role of financial institutions in agricultural development. A case study of Nigeria Agricultural Cooperative and Rural Development Bank, with a view to make useful suggestions and recommendations as way of enhancing the development of agricultural sector. The population for the study includes large and small scale farmers and the sampling method adopted for the study is the stratified random sampling in order to ensure adequate representation of the population. In order to achieve the objective of making useful suggestions that would improve the agricultural sector, a number of hypotheses were made and tested. Samples of one hundred and eighty responses were collected and analyzed using the chi-square (Ã—Â²) and tested method. It was discovered that bank credit loan scheme is making some impacts in lending loans to farmers. The result also showed that farmers prefer informal to the formal sources of finance mostly because of the demand of formal institutions that farmers most present collateral security. Finally, the study also indicated that the problems facing agricultural financing.

CHAPTER 1

CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
Nigeria is endowed with natural resources, large fertile farmland, wide range of crops, and river amongst others. Despite its abundant nature resources it is faced worth a poor food situation. The poor food situation is traceable to the decline in the agricultural sector. The problem of feeding and provision of natural resources is increasing by the day. However, several efforts are being made to improve the standard.
Prior to the discovery of petroleum in Nigeria agriculture used to be the highest foreign exchange resources earner and its contribution to gross domestic product GDP has been estimated to about 62.63% in 1960, 48.08% in 1970, and 20.63% in 1980. Recently due to the growing awareness of the role of agriculture, the various governments have intensified efforts aimed at transforming from its present subsistence level to a market oriented production. One of those efforts was the ban made on
importation of agricultural products like palm oil, maize and rice. This was done to encourage improvements on our production standard.
Due to the fall in the level of production from decade to decade, the country could no longer feed the large population, provide raw material for domestic industries, engage in export of agricultural produce and employ the labor force of the country despite the abundance of human and material resources.
In spite of growing urbanization, Nigeria is known to be predominantly rural in nature and majority of the population is dependent directly or indirectly on agriculture for their livelihood. Though, the Nigerian agriculture is characterized by low farm income, low level capacity to satisfy the fond needs of the country, due to the outdated and primitive techniques of production, it is still the mainstay of the nationâ€™s economy.
Measures and program setup to upgrade the Agricultural sector involve the construction and reformation of the whole structure of the agricultural sector by the creation of appropriate institutions and public services. This would help strengthen the economic position of the dependent farmers. Examples of such measures are National Accelerated Food Production Project (NAFPP), Structural Adjustment Program (SAP), Nigeria Agricultural Cooperation and Rural Development Bank (NACRDB).