A Statistical Study on the Effects of Agricultural Loan on Farming Activities in Nigeria – A Case Study of Ohaofia Local Government Area of Abia State
Chapter One
Aims and Objectives of the study
The chief objective or aim of this study is to know the level of success recorded in assisting rural farmers to increase productivity.
To know the difficulties encountered by those farmers in assessing these loans
To know which institutions have been really supportive in assisting the farmers to increase productivity.
To know if increased assistance would mean increase in employment and productivity.
To know if there is a relationship between agricultural credit or loan and the level of productivity in Nigeria. We are also interested in knowing the nature of this relationship if any.
To know if there is equally a relationship between agricultural loan and the employment level in Nigeria. The nature of this relationship ( if any ) is also important to us.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
This chapter gives an insight into various studies conducted by outstanding researchers, as well as explained terminologies with regards to the impact of internet banking on profitability of commercial banks in Nigeria.The chapter also gives a resume of the history and present status of the problem delineated by a concise review of previous studies into closely related problems.
THEORETICAL FRAMEWORK
One of the most dominant theory by which we can conceptualize the development process is termed a two-sector or dualistic model. Its analytical framework is always based on distinguishing the traditional sector (Agricultural) from the modern sector (Manufacturing). The early model of Lewis (1954:87) began with the assumption of the existence of an Unlimited (or totally elastic) supply of labour originating from the traditional sector. It was assumed that the traditional sector was not rational in the sense of profit maximizing and that the emigration of reduction of its output because of zero marginal product of its labour.
The modern sector, says Lewis, which consists of manufacturing and some agricultural production, uses modern technology. The sector is capital intensive and is rational in the sense of seeking to maximize profit by hiring labour up to the point where the marginal product of the last unit of labour transferred to the modern sector is equal to the wage. Savings were assumed to be made only out of profit. As these profits were reinvested, the demand for labour would increase. This would continue until labour in the traditional sector is no longer unlimited. At the point when labour becomes scarce traditional sector, it began to be commercialized and subsequently, labor would be hired up to the point where the marginal product is equal to the wage.
An alternative on Lewis’s unlimited labor supply theory was made by Rains and Fei (1961:43), where the marginal product of labor was drawn out of the sector, terms of trade would turn against the modern sector and the wage rate must be raised, as the traditional sector produces, foods were assumed to be consumed by the modern sector. Consequently, profits in the modern sector tended to go down, and investment would also slow down. It is also likely, therefore, that growth will stop prior to the commercialization of the traditional sector.
In this regard, there are two schools of thought: the pre-requisite thesis and the concurrence thesis. The former thesis argues that an agricultural revolution and the subsequent rise in agricultural productivity are pre-requisite for the initial spur of development, whereas the latter thesis denies he condition for pre-requisite and asserts instead that rapid growth in agricultural productivity could occur simultaneously with industrialization.
Marx, one of the early growth- stage theorists, presented his (stages) classification on changes in production technology and associated changes in the system of property rights and ideology? Rostow also presented his classification of stages in the transition from a primitive to a modern economy and offered basically an equivalent reason of regarding the agricultural development as the pre condition to lake-off” (Hayami and Ruthan, 1971).
As mentioned earlier, one reason for supporting the pre- requisite thesis is in fact that it is the outputs of the primary sector, rather than of others that could be increased without costing much of the critically scarce resources of financial capital and foreign exchange. Thus, it is only when agriculture is already growing rapidly that it could and should be squeezed on behalf of the more dynamic sectors of the economy. If, on the other hand, the agricultural sector is operating at the “immature” stage i.e the quasi-subsistence level, squeezing agriculture would create economic stagnation and not growth.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter describes the various methods and techniques used to collect and analyze the data gathered for the study to gain a deeper understanding of the topic under study.
The data collection stage is important since the result of the analysis is dependent on the quality of the data obtained. Therefore, the method selected for data collection must be the most appropriate to assist in achieving the objectives of the study:
In this case, it is to be used to determine the real status of employee involvement, causes of low employee involvement or participation in the decision-making process; determine the consequences of low employee involvement in decision-making on the implementation of management decisions.
It is also to be used to identify ways to arrest this problem in order to improve organizational performance and explore how employees can be involved and the result of involving employees in decision-making as well as make recommendations on how to improve the involvement of employees in decision-making.
RESEARCH DESIGN
The type of research design for this study is exploratory and it is conducted because a problem has not been clearly defined. It helps to determine the best research design, data collection method and selection of subjects.
This is the best approach if one aims at clarifying understanding of a problem by three
Primary ways which are Literature Research, talking to experts in the area of study and
DATA COLLECTION METHOD
This study utilizes secondary data extracted from the published annual reports of the commercial bank used for the study. With the secondary data collected, returns on assets and equity for the relevant years were computed.
The secondary source used in conducting this research was based extensively on documentary sources which are textbooks, journals, articles, newspaper articles, paper presentations etc. also it involved Publications of Central Bank of Nigeria and monetary institutions such as CBN bulletins, presentations, slides, commercial bank bulletins etc.
MODEL SPECIFICATION
The model for the study comprises of two constructs as described below:
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
This chapter is devoted to the presentation, analysis and interpretation of the data gathered in the course of this study. The data used for this study is secondary data from the worldbank.org indicator. The data are been analyzed using regression.
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATION
The objective of the study was to
To know if there is a relationship between agricultural loans and agricultural output in Nigeria.
To know if there is a relationship between agricultural loan system and employment level in Nigeria.
Findings
Findings from the study revealed that there is a positive, strong and significant relationship of 0.917 between agricultural loan system andagricultural output of Nigeria.
There is no relationship between agricultural loan system and employment level in Nigeria.
Conclusions
More emphasis should be placed on the availability of loans to farmers as this would help expand the productive capacity of Nigeria.
REFERENCES
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- Ekzie, E.S. (1997). The Elements of Banking Money Financial Institutions and Markets. Onitsha: Africana-fep Republishes.
- Essang, S. &Olajide, S. (1974). Intermediate Economic Analysis.Ibadan: Aromolara Publishing Company Limited.
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- Garba, P.K. (2000). An Analysis of the Implementation and Stability of Nigeria Agricultural Policies. Accra: AEC Publishers.
- Ijere, M.O. (1986). New perspectives in Financing Nigeria Agriculture. Benin: Dimension Publishers.
- Iyoha, M. (2004).Applied Economics Second Edition. Benin: Mindex Publishing Nigeria.
