A STATISTICAL STUDY ON THE EFFECTS OF AGRICULTURAL LOAN ON FARMING ACTIVITIES IN NIGERIA

Format: MS WORD  |  Chapter: 1-5  |  Pages: N/A  |  1002 Users found this project useful  |  Price ₦3,000

GET THIS PROJECT INSTANTLY

A STATISTICAL STUDY ON THE EFFECTS OF AGRICULTURAL LOAN ON FARMING ACTIVITIES IN NIGERIA

 

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Since the discovery of crude oil in Nigeria, farming activities has had its fare share of inconsistencies and relegation. Agriculture is a very important sector of Nigeria’s economy. Its role in economic development cannot be over emphasized; umar 2014 opined that between 1960-1976 alone, agriculture accounted for 40 to 60 percent of the national income and about 50 to 80 percent of the labour force is engaged in agricultural production. Agriculture has some major roles to play in Nigeria’s economic development. These are, to increase the supply of food for domestic consumption and export and to create more jobs. Despite the crucial roles of agriculture in the country’s economy, agriculture has had its fair share of problems which has led to the decline and poor performance in agricultural sector. The cardinal problem is the lack of adequate funding.

Agricultural activities in Nigeria have undergone a constant decline this is as a result of more financing by government and other corporate organizations like commercial banks. Efforts have been made by previous governments in Nigeria to resuscitate agriculture activities in Nigeria by making provisions for loans so that agriculturists a vast majority of them being average Nigerians can have access to these loans to improve their production base and employ labour. Agricultural financing in Nigeria has proven to be fairly successful when it comes to getting these funds to the actual rural farmers who are in dare need of this assistance. The effect of adequate agricultural loan on agricultural activities cannot be over emphasized. For agricultural loan system to be effective again a lot of things have to be gotten right. Agricultural loan is considered as a catalyst that activates other factors of production and makes under-used capacities functional for increased production (Ijere, 2014). Thus  agricultural loan plays an important role in agricultural and rural development as it enables farmers reap economies of scale, venture into new fields of production, employ new technologies and empower them to provide utilities for a widening market.

1.1   Statement of General Problem

In a developing country like Nigeria, they’ve not been a defined way of properly financing agricultural activities; this is because most of these farmers are rural dwellers. Another problem is the challenges faced by these farmers in accessing these loans from government since most of them are peasant. A Major problem leading us to this research is to know the percentage of success recorded in assistance of farmers especially those ones in the villages with loans. An equally major problem is to know if increased agricultural loan assistance would actually end unemployment and increase productivity.

1.2. 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.

i.  To know the difficulties encountered by those farmers in assessing these loans

ii.  To know which institutions have been really supportive in assisting the farmers to increase productivity.

iii.  To know if increased assistance would mean increase in employment and productivity.

iv.  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.

v.  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.

1.3. Significance of the study

A major significance of this study is to know the level of success in assisting farmers in the rural areas. Another significance of the study is to know if there is a relationship between increased governments financial assistance and the level of their productivity. The following are the other significances of this study:

a) How are loans disbursed?

b) What are the causes and effects of default in loan repayment?

c) What methods have the bank developed in recovering their loans?

d) What are the problems faced by farmers in obtaining this loans and what is their attitude towards repayment?

e) Do farmers generally like assessing these loans?

f) To know how successful agricultural financing has been in recent years and reasons.

g) Does adequate agricultural funding increase employment?

h) how does agricultural loans increase farming activities.

1.4. Scope and limitation of the study

This study is basically on the effect of agricultural loan on farming activities in Nigeria a case study of ohaofia local government area of Abia state. Another scope of the study is to know how agricultural loan in Nigeria has a relationship to employment and finally to know the level of satisfaction of the end users of this loans.

Limitations

It is pertinent to mention the limitations of this research work, chief among the limitations is the difficulty in administering the questionnaire in ohaofia local government area, respondents response wasn’t as expected in that they were some information required that weren’t given. Notwithstanding, in the highlighted limitation above, it is hoped that this research will be useful to the Nigerian government, its citizens, farmers and agricultural organizations that may be interested in this work.

1.5. Definition of terms

Loan: Money that an organization such as a bank lends and somebody or group of people borrows.

Agriculture: The science or practice of farming.

1.6. Research Hypotheses

The research hypotheses are as follows:

HYPOTHESIS 1

H0: There is no significant relationship between agricultural loan system and employment level in Nigeria

H1: There is a significant relationship between agricultural loan system and employment level in Nigeria

HYPOTHESIS 2

H0: There is no significant relationship between agricultural loan system and agricultural output in Nigeria.

H1: There is significant relationship between agricultural loan system and agricultural output in Nigeria.

HYPOTHESIS 3

H0: There is no significant relationship between agricultural loan system and farming activities in Nigeria.

H1: There is significant relationship between agricultural loan system and farming activities in Nigeria.

GET THIS PROJECT INSTANTLY

Not What You Are Looking For?



For QUICK Help Call Us Now!

+234 813 292 6373


Here's what our amazing customers are saying

JONNAH EHIS
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Temitayo Ayodele
Obafemi Awolowo University
My friend told me about iprojectmaster website, I doubted her until I saw her download her full project instantly, I tried mine too and got it instantly, right now, am telling everyone in my school about iprojectmaster.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work
Very Good
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent
Merry From BSU
I am now a graduate because of iprojectmaster.com, God Bless you guys for me.
Excellent
Samuel From Ajayi Crowther University
You guys just made life easier for students. Thanks alot iprojectmaster.com
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent