The Role of Central Bank of Nigeria Plc in Agricultural Finance Development Problems and Prospects
CHAPTER ONE
OBJECTIVE OF THE STUDY
The major objective of this study is to determine and appraise the performance of the central Bank of Nigeria and its agencies to agricultural finance and development.
This involves:
- To identify the central Bank of Nigeria policies in relation to Nigeria Agriculture.
- To evaluate various measures introduced to boost agricultural production and agricultural financing and how this affected the relisation of the agricultural goals and
- To identify the problems associated with the implementation of these policies and suggest solution so as to improve agricultural production.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
This research work in particular is very crucial one in any economy as it deals with policies of the bank at the apex of the banking system (the central Bank) and one of the most priority sector of Nigeria economy – the Agriculture sector. As a result much ought to have been written on it by eminent school and schools of thought in the field of banking, finance, monetary economies and Agriculture, but only very few have dealt with the two aspect (CBN and Agriculture).
The policies of the central bank of Nigeria as they affect agriculture are mainly on the monetary programs, and fiscal policies. However, the literature reviewed were the background of agricultural financing, importance, problems, establishment of the CBN and its organization, roles and policies (fiscal and monetary policies) of the CBN in relation to Agriculture and its other policy instruments / programmes.
HISTORICAL PROSPECTIVE OF AGRICULTURAL FINANCING IN NIGERIA
Tracing the early sources of agricultural credit financing in Nigeria, M.O. Ijere (1983) wrote “there are three categories of Agricultural credit in Nigeria – The organized credit which is characteristically subject to the market laws of supply and demand and are granted by institutions. The organized credit is characterized by its being given by private person on whose whims and caprices the conditions are completely dependent as it is less regulated by the market forces of Demand and supply, in between them is the quabi organized credit which contains the characteristics of both”.
In a study on the early Agricultural credit institutions: Nzewi 91986) stated that “tare provisions of institutional agricultural credit in Nigeria dates back to the 1930s when the native authorities in Northern Nigeria undertake to finance mixed farming” According to this man “agricultural financing by a public credit institution started on a nation wide scale with the Nigeria local Development loan Board which was established in 1946 but centralized along regional lines in 1947.
These boards were not efficient and so were re-organized into the western state Agricultural co-operation fund for the Agricultural and industrial Development and the mid-western Nigeria Agricultural credit co-operation. Agricultural loans in the North were mostly in form of government guaranteed overdraft from commercial banks. As a result of the credit gap existing in the four regions which these institutions were unable to fill the Nigeria Agricultural and cooperative bank (NACB) was established in 1973 to boost agricultural production and enhance agricultural development in Nigeria.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
RESEARCH METHODOLOGY
In this chapter, the researcher tries to access the following issues. Research design area of study, sources of data, method of investigation, method of data analysis.
RESIGN DESIGN
This study is designed to use the survey approach and conduct intensive and in-depth investigation of the research problems. The output will be inform of descriptive findings and descriptive answers to the research questions presented in the section. The output survey will be used to test the hypothesis.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
RESEARCH METHODOLOGY
In this chapter, the researcher tries to access the following issues. Research design area of study, sources of data, method of investigation, method of data analysis.
RESIGN DESIGN
This study is designed to use the survey approach and conduct intensive and in-depth investigation of the research problems. The output will be inform of descriptive findings and descriptive answers to the research questions presented in the section. The output survey will be used to test the hypothesis.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION.
SUMMARY OF FINDINGS.
The findings from hypothesis tested in this study upheld the view that CBN has made remarkable impact in the Agricultural financing in Nigeria though its policies and programs. This was gotten from the hypothesis these tested in hypothesis using X2 (o – e)2 that is X2 computed was greater than the critical value E 14.41 > 3.841
The second revealed that the calculated value X2 is greater than critical value by X2. this means that the CBN has introduced measures to boost agricultural production through its policies and programs 9.41 > 3.841
The third tested hypothesis revealed that calculated X2 is greater than critical value. This indicates that the assessment of the use of monetary and fiscal policies in stabilizing Agriculture should be regarded very good. 8.91 >3.841
Apart from finding from hypothesis tested there are also some other findings from oral interview carried out by the researcher. This include
The economy is yet to be stabilized and Nigeria economic has not a well developed financial market for proper functioning of financial and monetary instruments.
About 90% of respondent to the interview indicated that illiteracy of the farmers initiates against the ineffectiveness of Agricultural finance scheme.
The problems of poor record keeping also constitutes another category.
Mismanagement and irregularity has contributed immensely to the inadequate financial and agricultural development in Nigeria.
The CBN has introduce some measures to boost up agricultural production by reducing the interest rate and encourage commercial banks to give loans to farmers.
RECOMMENDATION
Based on the findings of this study the researcher therefore makes the following recommendations.
The CBN, through its agencies should find out what people use the loans granted for Agricultural production for and make use there is a follow up on this farmers to make sure financial aids granted to them are guiding utilized.
The government should reduce the prices of fertilizer, so as to enable the farmers buy at affordable price.
The government should also establish a scheme that will be in charge of Agricultural funding and the people that will be among the scheme should be people of good conduct in order to avoid or rather reduce fraud and mis-appropriation funds.
The CBN should make sure that Nigerian Agricultural cooperative and Rural development bank Ltd (NACRDB) spread out into the interior parts of the states so that farmers can always have people to lean on for some of those farmer are poor to the extent that they can’t afford the transport fare of going to the urban banks to seek advisory services or rather spend delegates to them on weekly bases
CONCLUSION
In consideration of the review of the related literature and the research findings in this study, it has been established beyond reasonable doubt that CBN plays a vital role in Agricultural finance development. But still some pose a threat to the sucessfuil attainment of their objectives. Genrerally, everybody is awre that the nation (Nigeria is bad, so there is no way CBN can play 100% role and achieve adequate agricultural finance development. In addition to this, corruption is virtually every where, we are yet to be developed especially in financial market. Based on this, CBN cannot work effectively while the economy is still bad. There fore, to achieve a very good agricultural based nation the entire economy people and most of all Agricultural sector need a total “OVERHULL”
BIBLIOGRAPHY
- ADEYEMO FEMI A: The establishment and growth of the CBN. Element of banking F&A Publisher limited Lagos 3rd Edition
- ADEYEMO REM: Agricultural finance policies and strategies in the 1990’s in M.O.Ojo C.C Edordan and J.Ayo, Akinghade Agricultural Credit and finance in Nigeria problems and prospect, Lagos CBN 1981
- NWANKWO G.O The traditional functions of the CBN. The Nigeria financial system Macmillan Publisher
- NZEWI U.C. economic emergency in Nigeria Anambra state Polytechnic Oko press 1996
- UZOAGA W. OKEFIE Money and banking in Nigeria furth edition dimension publisher 1991.
