THE ROLE OF BANKS CREDIT FACILITY IN FINANCING
TABLE OF CONTENT
Title page i
Table of content vi
1.0 Introduction 1
1.1 General Background 1
1.2 Statement of problem 2
1.3 Objective of the study 3
1.4 Research methodology 3
1.5 Scope of the study 3
1.6 Significant of the study 3
1.7 Limitation of the study 4
1.8 Definition of terms 4- 5
2.0 Literature review 6
2.1 Establishment of NACRDB 6 – 7
2.2 Aims and objectives of NACRDB 7 -8
2.3 Organization of the bank 8-10
2.4 Functional and operational scheme 11
2.4.1 Micro credit 11
2.4.2 Macro loans 11
2.4.3 On lending 11 – 16
2.4.4 Special project loan 16
2.5 Source of fund 16
2.6 Condition for borrowing 17 – 19
2.7 Assessment of NACRDB 19 – 20
3.0 Research methodology 21
3.1 Population size 21
3.2 Sample size 21
3.3 Sources of data collection 21 -22
3.4 Method of data analysis and design 22
4.0 Data presentation and analysis 23
4.1 Presentation of data 23
4.2 Analysis and interpretation of data 23 -24
4.3 Problem identification 25 – 26
5.0 Summary of findings, conclusion and recommendation 27
5.1 Summary of findings 27
5.2 Recommendation 28 – 29
5.3 Conclusion 29
1.1 BACKGROUND OF THE STUDY
This research project is purposely carried out to examine the role of financial institution to 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 much difficulty to meet up with their target due to inadequate financial assistance or credit facility from the government.
Much researchers have been able to disclose that agriculture provide over 80% employment and that over 80% of the farming population in Nigeria reside in the rural areas.
Hence, to develop agricultural production some important facilities have been put in place to encourage farmers. And this bring about agricultural credit facility.
Farmers before the introduction of the Nigeria Agricultural Cooperative and Rural Development Bank, seek credit from other sources such as commercial bank 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 old s 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
- Post colonial stage
- Pre-colonial Stage: It can be viewed into perspective which are stone and medieval age.
- 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.
- Medieval Age: This state emanates immediately after the age of stone, which was really a way of improving various stages of stone age.
The importance of agriculture was realized by human being. Life was some how primitive those man used animal skin for cloth others, cutlasses and hoes were made.
- 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 agricultural sector.
- Post Colonial Stage: This was the time that Nigeria became a nation of their own and no longer under the control and directive of the British people.
Agriculture was recognized as one of the main source of Nigeria income, in the sense that, it provides for raw materials for industries and foreign exchange for the country’s import needs. Thus, the effort production of that the active farming population (small holder and families) constitute a central piece of the agric deliver credit programme s designed and implemented by NACRDB over the past decades.