AN INVESTIGATION ON THE PERFORMANCE OF NIGERIA AGRICULTURAL COOPERATIVE
AND RURAL DEVELOPMENT BANK (NACRDB) IN AGRICULTURAL CREDIT DELIVERY IN EDO STATE; A CASE STUDY OF BENIN BRANCH
The study investigating performance of Nigeria agriculture cooperation and rural development bank limited (NACRDB) this specific objective were to identify the different loan scheme, number of farmer did participated in these scheme, examine the bank services rate, their arrival rate, the categories of customers served by the bank, a well structural questionnaire was used to elicit information. The information was used to analyze, using descriptive statistics. The study therefore recommended that more branch office should be established, staff strength of the bank should e increased and approved.
TABLE OF CONTENT
Background of the study
Purpose of study
Significance of the study
Scope of study
Limitation of the study
Definition of terms
Population of the study
Validity of instrument
Procedure for data collection
Method of data analysis
Analysis of data
Summary, conclusion and recommendation
Suggestion for further research
Agriculture involves the cultivation of land raising and rearing of animal for the purpose of production of food for man, feed for animal and raw materials for industries. It is undisputable that agriculture is the bedrock of any developing nation as it provides the food and fibre requirement of the teeming population. Agricultural development is one of the crucial requirements for overall economic growth. Although the oil sector has now dominated the Nigeria economy, contributing up to 80% of government revenue and more than 10% of the country’s foreign exchange. It is still the agricultural sector that is sustaining the majority (70-75%) of the country population estimated of over 84 million in 1980 (Olatunbode, 1990). The low level contribution of agriculture to the Nigerian economy over the years has been known to be the major reasons why huge amount of import, bills are incurred by the government on food/fibre importation since the discovery of crude oil in the 70’s.
One characteristics of agriculture is that most of its product are seasonal and are susceptible to deterioration in storage, the rating of agriculture production in Nigeria make it a rather difficult sector for commercial bank lending. For exchange, a large number of the farmer are not literate and hence are not familiar with bank procedure. Also, then farmer often produce enough food to feed their families with little left for the market. (Ojo, et al 1981).
Despite the huddle faced by the farmers they still produce food and raw materials for the nation. The development of agriculture involved the adoption of new and more efficient technologies by farmers, the new technologies includes the improve seed, breeds, agrochemical, as well as farm implement. These technologies must be purchased by only a few of the small holder farmer in Nigeria have the financial resources to make such purchase (Okpeku, 1992). Yet the estimated is more than 50% Nigeria food supply is produced by the rural small-scale farmers with farm size ranging from 0.1-0.2 hectares (Olayide, 1980). Under these circumstances therefore lack of credit poses a serious impediment to agricultural development hence the economic development of Nigeria.
The research work is intended to assess the performance of Nigeria agriculture cooperative and rural development bank (NASCRDB) in meeting the credit need of farmer. Reluctance of the commercial bank and merchant bank to extend credit facilities to the agricultural venture and the low rate(s) of return that characterize agricultural business undertaking informed the laudable decision of the federal government of Nigeria to establish a national agricultural bank, the Nigeria agriculture and cooperative bank (NACB) now the (NACRDB) was incorporated in 1972 and commenced operation in 1973 as an apex development financing institution charge with the singular responsibility of providing credit facilities for agricultural and rural development in the country.
The birth of Nigeria’s agricultural cooperative and rural development bank (NACRDB) limited as a single largest development finance institution in Nigeria followed the successful merging of the former people bank of Nigeria (PBN) the defunct Nigeria agricultural and cooperative bank (NACB) limited and risk assets of the family economic advancement programme (FEAP) in October, 2000. NACRDB is dedicated primarily to agricultural financing as well as micro-financing of small and medium scale enterprise. The bank is a registered limited liability company that is wholly owned by the government of the Federal Republic of Nigeria with the share capital fully subscribed by the federal ministry of finance (60%) and the central bank of Nigeria 40%) with its branches scattered all over the country including Edo State with six (6) bond office namely South-South bond office at Port-Harcourt, North East bond office at Bauchi, North West bond office at Kano and North Central bon office at Abuja. However, the bank performs this all important function of credit delivery is what this study is therefore set out to assess.
MAIN OBJECTIVE AND FUNCTION OF NIGERIA’S AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB)
As the development financial institution Nigeria agricultural cooperative and rural development bank (NACRDB) limited was established to deliver credit to the agricultural sector of the Nigeria economy having the following specific objective as the central forces.
Thus the function of the bank to achieve the above objective are;
NIGERIA’S AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK OPERATIONAL SCHEME
The bank operates a supervised loan delivery system through the following scheme;
The bank interest rate regime on is generally concessionary and discriminatory in favour of small farmer and trader to who the bank buck of loanable fund is directed.
ii. Agro-processing – 17.5% per annum.
iii. Marketing – 18.5% per annum
iv. Cotton production – 70% per annum
i. Interest on micro credit is calculated on simple basis.
ii. The listed rate are subjected to large from time to time (NACRDB, 2000)
1.2 STATEMENT OF PROBLEM
The major problem militating against the accelerated growth and development of the agriculture sector generally is the apparent lack and inadequacy of available capital for agricultural production and distribution by the rural farmers. In recognition of the severity of this problem, the federal government of Nigeria established the (NACRDB) former (NACB, PBN and FEAP). In 2000 in place of NACB for better service to the farmer, though the bank and its former level has been in operation for over three decade the problem level inadequate capital is still paramount among the rural farmer, this raise such question as what could be responsible for this situation.
How effective is the performance of the bank in delivery credit for farmer. Are farmers not making use of this facility of is the bank serving other at the expenses of farmer? Does the bank delay the approval of loan request thereby building up queues? These and some other are the questions that study is set out to answer.
1.3 OBJECTIVES OF THE STUDY
The main objective is to assess the performance of NACRDB in agricultural credit delivery in Edo State. The specific objectives are;
The desire of any nation is to be self-reliant in food production for its citizen. One sort way of achieving this is adequate funding of the agricultural sector through the provision of loans to the farmers.
Much work has been done on the different sources of loan to farmers but the assessment of the performance of such sources does not seem to have been done. This needs to be done for such credit sources to reorganize their strategy, the result of the study would be invaluable to the bank, farmers and policy makers.
TERMS AND CONDITIONS
Using our service is LEGAL and IS NOT prohibited by any university/college policies
You are allowed to use the original model papers you will receive in the following ways:
1. As a source for additional understanding of the subject
2. As a source for ideas for your own research (if properly referenced)
3. For PROPER paraphrasing ( see your university definition of plagiarism and acceptable paraphrase)
4. Direct citing ( if referenced properly)
Thank you so much for your respect to the authors copyright.
For more project materials
Log on to www.grossarchive.com