Select Currency
Translate this page

AN INVESTIGATION ON THE PERFORMANCE OF NIGERIA AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB) IN AGRICULTURAL CREDIT DELIVERY

Format: MS WORD  |  Chapter: 1-5  |  Pages: 50  |  819 Users found this project useful  |  Price NGN3,000

GET THE COMPLETE PROJECT

ABSTRACT

The study investigating performance of Nigeria agriculture cooperation and rural development bank limited (NACRDB) this specific objective were to identify the different loan scheme, number of farmer did participated in these scheme, examine the bank services rate, their arrival  rate, the categories of customers served by the bank, a well structural questionnaire was used to elicit information. The information was used to analyze, using descriptive statistics. The study therefore recommended that more branch office should be established, staff strength of the bank should e increased and approved.

 

CHAPTER ONE

INTRODUCTION

BACKGROUND TO THE STUDY

Agriculture involves the cultivation of land raising and rearing of animal for the purpose of production of food for man, feed for animal and raw materials for industries. It is undisputable that agriculture is the bedrock of any developing nation as it provides the food and fibre requirement of the teeming population. Agricultural development is one of the crucial requirements for overall economic growth. Although the oil sector has now dominated the Nigeria economy, contributing up to 80% of government revenue and more than 10% of the country’s foreign exchange. It is still the agricultural sector that is sustaining the majority (70-75%) of the country population estimated of over 84 million in 1980 (Olatunbode, 2010). The low level contribution of agriculture to the Nigerian economy over the years has been known to be the major reasons why huge amount of import, bills are incurred by the government on food/fibre importation since the discovery of crude oil in the 70’s.

 

One characteristics of agriculture is that most of its product are seasonal and are susceptible to deterioration in storage, the rating of agriculture production in Nigeria make it a rather difficult sector for commercial bank lending. For exchange, a large number of the farmer are not literate and hence are not familiar with bank procedure. Also, then farmer often produce enough food to feed their families with little left for the market. (Ojo, et al 2011).

Despite the huddle faced by the farmers they still produce food and raw materials for the nation. The development of agriculture involved the adoption of new and more efficient technologies by farmers, the new technologies includes the improve seed, breeds, agrochemical, as well as farm implement. These technologies must be purchased by only a few of the small holder farmer in Nigeria have the financial resources to make such purchase (Okpeku, 2012). Yet the estimated is more than 50% Nigeria food supply is produced by the rural small-scale farmers with farm size ranging from 0.1-0.2 hectares (Olayide, 2010). Under these circumstances therefore lack of credit poses a serious impediment to agricultural development hence the economic development of Nigeria.

The research work is intended to assess the performance of Nigeria agriculture cooperative and rural development bank (NASCRDB) in meeting the credit need of farmer. Reluctance of the commercial bank and merchant bank to extend credit facilities to the agricultural venture and the low rate(s) of return that characterize agricultural business undertaking informed the laudable decision of the federal government of Nigeria to establish a national agricultural bank, the Nigeria agriculture and cooperative bank (NACB) now the (NACRDB) was incorporated in 1972 and commenced operation in 1973 as an apex development financing institution charge with the singular responsibility of providing credit facilities for agricultural and rural development in the country.

The birth of Nigeria’s agricultural cooperative and rural development bank (NACRDB) limited as a single largest development finance institution in Nigeria followed the successful merging of the former people bank of Nigeria (PBN) the defunct Nigeria agricultural and cooperative bank (NACB) limited and risk assets of the family economic advancement programme (FEAP) in October, 2000. NACRDB is dedicated primarily to agricultural financing as well as micro-financing of small and medium scale enterprise. The bank is a registered limited liability company that is wholly owned by the government of the Federal Republic of Nigeria with the share capital fully subscribed by the federal ministry of finance (60%) and the central bank of Nigeria 40%) with its branches scattered all over the country including Edo State with six (6) bond office namely South-South bond office at Port-Harcourt, North East bond office at Bauchi, North West bond office at Kano and North Central bon office at Abuja. However, the bank performs this all important function of credit delivery is what this study is therefore set out to assess.

MAIN OBJECTIVE AND FUNCTION OF NIGERIA’S AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB)

As the development financial institution Nigeria agricultural cooperative and rural development bank (NACRDB) limited was established to deliver credit to the agricultural sector of the Nigeria economy having the following specific objective as the central forces.

Promotion of agricultural production and rural development

Assisting in the improvement of the income and quality of life of the Nigeria rural population.

Contribution to the overall growth and development of the Nigeria economy

Promotion of capacity building through the provision of received training and advisory services.

Encouraging the formation of cooperative societies at all levels.

Thus the function of the bank to achieve the above objective are;

 

The provision of loan to industrial farmers, cooperative organization, limited liability companies

Financing direct investment in the equity capital of major agricultural and agro-allied industrial venture

Providing guarantee for viable agricultural and agro-allied venture to enable the rate raise finance either locally or internationally.

Assisting in improving the income and welfare of farmer by promoting rural development.   

Increasing the nation output of food and cash crop to meet the need of a rapidly increase population.

Financing of all form of agriculture project which includes fishery, cattle, poultry, rabbitry, forestry and timber production horticulture, arable crops, and free crops.

Provision of finance for the marketing of agricultural produce locally and for export.

Financing of agro-allied project including tractor, living operation agro-processing and storage (NACRDB, 2010).

NIGERIA’S AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK OPERATIONAL SCHEME

The bank operates a supervised loan delivery system through the following scheme;

On-lending: Under theses scheme lending is made to established institution against repayment guarantee for on-lending to small scale farmer. The on-lending institution includes state government cooperative organization, state agriculture credit cooperation agricultural development project and river basin and rural development authorities.

Micro-credit: The scheme is designed to directly reach small farmer who produce the bulk of our food, this step was taken in order to meet the increasing credit demand of the small scale farmer who produce 90% of the total output of food and fibre of the country, the security requirement such as certificate of occupancy of project land and other security requirement applicable to the micro credit are waived for turnover under micro credit scheme. What is require is only that the farmers  satisfies operational staff that he is largely a full farmer with a farmland belong to him or his family of what he has permission to use it. Also that he is residence in a village where farm land is located and can produce two guarantors to guarantee the loan is not to exceed N250, 000.00.

Macro-credit: This loan scheme is specifically designed to meet the credit need of the medium and large scale farm, under the scheme, the bank deal directly with individual farmer and organization without going through on-lending intermediaries the loan is from N250, 000.00 and above (NACRDB, 2010).

LENDING RATE

The bank interest rate regime on is generally concessionary and discriminatory in favour of small farmer and trader to who the bank buck of loanable fund is directed.

Micro-credit – 80% per annum

Macro credit

Agriculture production – 16.5% (except cotton production) per annum      

Agro-processing – 17.5% per annum.

Marketing – 18.5% per annum

Cotton production – 70% per annum 

Special project – as prescribed and negotiated with donor agencies and state holder;

Interest on micro credit is calculated on simple basis.

The listed rate are subjected to large from time to time (NACRDB, 2010)

 

1.2    STATEMENT OF PROBLEM

The major problem militating against the accelerated growth and development of the agriculture sector generally is the apparent lack and inadequacy of available capital for agricultural production and distribution by the rural farmers. In recognition of the severity of this problem, the federal  government of Nigeria established the (NACRDB) former (NACB, PBN and FEAP). In 2000 in place of NACB for better service to the farmer, though the bank and its former level has been in operation for over three decade the problem level inadequate capital is still paramount among the rural farmer, this raise such question as what could be responsible for this situation. How effective is the performance of the bank in delivery credit for farmer. Are farmers not making use of this facility of is the bank serving other at the expenses of farmer? Does the bank delay the approval of loan request thereby building up queues? These and some other are the questions that study is set out to answer.

 

1.3   OBJECTIVES OF THE STUDY

The main objective is to assess the performance of NACRDB in agricultural credit delivery in Edo State. The specific objectives are;

To identify the different loan scheme available to the farmers.

To identify the number of farmer that participate in the scheme per time period.

To identify the category/type of customer served by the bank.

To identify the presence of a queue and examine the bank service rate their arrival rate and waiting time.

To determined the traffic intensity in order to access the level of effectiveness of the performance of the bank.

To identify the problem militating against the performance of the bank in agricultural credit delivery.

 

1.4    JUSTIFICATION

The desire of any nation is to be self-reliant in food production for its citizen. One sort way of achieving this is adequate funding of the agricultural sector through the provision of loans to the farmers.

Much work has been done on the different sources of loan to farmers but the assessment of the performance of such sources does not seem to have been done. This needs to be done for such credit sources to reorganize their strategy, the result of the study would be invaluable to the bank, farmers and policy makers.

GET THE COMPLETE PROJECT

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

HOW TO GET YOUR COMPLETE PROJECT INSTANTLY

  • Select 3 Project Topics of your choice from your Department.
  • Submit the 3 topics to your Supervisor for Approval.
  • Call Our Instant Help Desk on 0813-292-6373 and Get Your Complete Project Material Instantly.
  • All project materials on this website are well researched by professionals with high level of professionalism.

FREQUENTLY ASKED QUESTIONS

How do i choose a Project Topic?

Look for your department and select any topic of your choice

I have a fresh topic that is not on your website. How do I go about it?

How fast can i get a complete project from your website?

Within 15 minutes if the exact project topic is on our website

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

One of your topics suites my project, but the case study is different. What do i do?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

How do i get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: (+234) 813-292-6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!