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

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 (ײ) 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.

TABLE OF CONTENT

Title page - - - - - - - - - i

Approval page - - - - - - - - ii

Dedication - - - - - - - - iii

Acknowledgement - - - - - - - iv

Abstract - - - - - - - - - v

Table of Contents - - - - - - - vii

CHAPTER ONE - - - - - - -

INTRODUCTION - - - - - - - - 1

1.0 Background of the Study - - - - - 1

1.1 Statement of Research Problem - - - - 3

1.2 Objective of the Study - - - - - 5

1.3 Scope of the Study - - - - - - 6

1.4 Significance of Study - - - - - - 6

1.5 Statement of Research Hypothesis - - - 8

1.6 Sources of Data - - - - - - - 98

1.7 Limitation of Study - - - - - - 9

1.8 Definition of Terms - - - - - - 10

References - - - - - - - 13

CHAPTER TWO - - - - - - - -

LITERATURE REVIEW - - - - - - - 14

2.1 Theoretical Background - - - - - 14

2.2 Sources of farm Credit - - - - - 19

2.3 Agricultural Credit Policies - - - - - 20

2.4 Features of the Agricultural Credit Guarantee Scheme 22

2.5 Bank Credit for Agricultural Development - - 24

2.6 The role of parastatals in the Development of Agriculture

In Nigeria - - - - - - - 26

2.7 Nigerian Agricultural Cooperative and Rural Development

Bank (NACRDB) - - - - 319

2.8 Assessment of the Banking Industry’s Development of

Agriculture and Future Expectation - - - 35

2.9 Extension Research and Rural Development strategies In aid

of agricultural development in Nigeria - - 41

2.10 Importance of credit facilities in Agriculture - - 45

2.11 Constraints of the Nigeria Agricultural sector - 47

Reference - - - - - - - - 50

CHAPTER THREERESEARCH METHODOLOGY - - - - - - 52

3.1 Introduction - - - - - - - 52

3.2 Research Design - - - - - - 52

3.3 Population of the study - - - - - 52

3.4 Sample design - - - - - - - 53

3.5 Methods of data collections - - - - 53

3.6 Method of data analyses - - - - - 5410

References - - - - - - - - 55

CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS - - - 56

4.1 Test of hypothesis - - - - - - 67

Reference - - - - - - - - - 76

CHAPTER FIVE

SUMMARY RECOMMENDATION AND CONCLUSION - 77

5.0 Summary and Conclusion - - - - - 77

5.1 Summary of Findings - - - - - - 78

5.2 Conclusion- - - - - - - - 80

5.2 Recommendations - - - - - - 82

5.3 General Policy Recommendations - - - 84

5.4 Prospects of agricultural financing in Nigeria - - 86

Bibliography - - - - - - - - 89