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ROLE OF GOVERNMENT IN CO-OPERATIVE DEVELOPMENT

ROLE OF GOVERNMENT IN CO-OPERATIVE DEVELOPMENT

COMPLETE PROJECT  MATERIAL COST 3000 NAIRA

 

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ABSTRACT

 

The Role of Government in Co-operative Development emphasis on the economic growth of the nation and the eradication/alleviation of poverty among the populace.

 

The significant of the contribution of government towards the growth of co-operative society in the country (Nigeria) cannot be over emphasized because it has brought about the reduction of dependency rate of the country.  This increasing the national income of the country.  The government take no special interest in the co-operative movement outside  providing it with the necessary legal basis for registration and under some circumstances, granting minor privilege  in the form of reduced tax rate.

 

The aim of this project is to find out the role of Anaocha Co-operative society development,  Anaocha local government area in Anambra state.  The subjects used for the study consisted of four hundred and ninety-nine (499) Anaocha co-operators from six (six) registered Anaocha co-operatives in the same local government.  Sample size was used in selecting these four hundred and ninety-nine (499) co-operators from the population of six registered Anaocha co-operatives societies in the local government.  Questionnaire and oral interview were the major instruments used for the study.

 

A total of 550 questionnaires were administered to registered members of the co-operative societies.  Out of this number, 499 were completed and returned, one more questionnaire was administered to the Divisional co-operative officer of Anaocha local government area.  He also stressed on the need for the co-operative officers in Anaocha local government area to encourage the women to invest more to productive ventures than collection of individual loans from the co-operatives.  This will help provide employment opportunities for the members and the people of Anaocha in general.

 

Enemuoh Jacinta .N.

 

August 2005.

 

 

 

 

TABLE OF CONTENTS

CHAPTER ONE:

  • INTRODUCTION

1.1    BACKGROUND OF THE STUDY

  • STATEMENT OF THE STUDY
  • PURPOSE OF THE STUDY
  • SIGNIFICANCE OF THE STUDY
  • SCOPE AND LIMITATION OF THE STUDY
  • DEFINITION OF TERMS

REFERENCE

 

CHAPTER TWO:

  • REVIEW OF RELATED LITERATURE

2.1   INTRODUCTION

  • PROBLEMS OF CO-OPERATION DEVELOPMENT
  • PROMOTIONAL EFFORT OF THE GOVERNMENT IN ANAOCHA TOWARDS CO-OPERATIVE DEVELOPMENT.
  • MACRO-EFFECTS OF CO-OPERATIVE IN ANAOCHA
  • OPERATIOONAL ROLE OF GOVERNMENT IN CO-OPERATIVE

REFERENCE

 

CHAPTER THREE

  • RESEARCH DESIGN AND METHODOLOGY

3.1    INTRODUCTION

  • AREA OF THE STUDY

 

  • POPULATION OF THE STUDY
  • SAMPLE AND SAMPLING PROCEDURE
  • INSTRUMENT FOR DATA COLLECTION
  • RELIABILITY OF THE INSTRUMENT
  • METHOD OF DATA COLLECTION

CHAPTER FOUR:

  • SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

4.1   INTRODUCTION

  • SUMMARY OF FINDINGS
  • RECOMMENDATIONS
  • CONCLUSION

BIBLIOGRAPHY

APPENDIX

 

 

 

CHAPTER ONE

 

INTRODUCTION

  • BACKGROUND OF THE STUDY

According to the co-operative law of Eastern Nigeria (CAP.28) of 1956 co-operative society is an association which has its objective the promotion of the economic interest of  or the provision of services for its members in accordance with co-operative principles.  Therefore, co-operative is a self help project.

 

Abinitio, co-operative were not supposed to be under government influences and control, though, co-operative were not supposed to work in isolation or in competition with government for is all states of the world political  power is exercised for the state by government.

The government provides security for lives and property and also provides and enacts laws which enables business and co-operative to flourish.  Beyond the level of work only for the interest of the member and betterment of the entire society.

 

This project is aimed at x-raying the various ways and programmes  which government contributes towards the development of co-operative societies.  Therefore, the project research is to identify the various areas where government affects the development of co-operative society in Anaocha and to clearly state the significance of the programme.  Also, the research work elaborates the factors responsible towards the development of co-operative in Anaocha; thus no financial aid to the orgnisation operating under the co-operative society sector.

 

 

  • STATEMENT OF THE PROBLEM

 

From the background of the study, it should be understood that modern Anaocha co-operative societies were formed in Anaocha local government area to cater for the socio-economic needs of the Anaocha.  It is also aimed at savings as instrument for Anaocha development.

 

But it is however, surprising that despite the existing Anaocha co-operative in the said local government, the various communities that constitute the local government are still in their primary stage of development.  Even the Anaocha co-oper

 

THE IMPORTANCE OF IMPROVING AGRICULTURE PRODUCTION THROUGH CO-OPERATIVE SOCIETIES.

THE IMPORTANCE OF IMPROVING AGRICULTURE PRODUCTION THROUGH  CO-OPERATIVE SOCIETIES.

(A CASE STUDY OF ANIOCHA L.G.A, ANAMBRA STATE.)

COMPLETE PROJECT  MATERIAL COST 3000 NAIRA

 

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ABSTRACT

 

Agriculture is a science or practice of cultivating the land the keeping or breeding animal for food and for the promotion of the countries economy.

 

The importance of improving Agricultural production through Co-operative Society especially in Anambra State, is their source of earning food and money for their survival, both man and animal around.  It is also provision of  raw materials for the Agro-based Industries, which helps in the production facilities programmes.

Co-operative society is the coming together of different people in order to achieve a common goals and objectives of the society.  They teamed up in Anambra State to cultivate and supply masses with food and also to feed themselves with their families.

 

TABLE OF CONTENTS

 

CHAPTER ONE

1.0     INTRODUCTION     ……………………………….               1

1.1     BACKGROUND OF THE STUDY    ………………               3

1.2     STATEMENT OF THE PROBLEM   ………………               4

1.3     PURPOSE /OBJECTIVE OF THE STUDY  ……….               5

1.4     SCOPE  AND LIMITATIONS OF THE STUDY  …..              6

1.5     DEFINITION OF TERMS  …………………………..              7

REFERENCES   ……………………………………..             10

CHAPTER  TWO

  • REVIEW OF RELATED LITERATURE ……………           11

2.1    DEFINITION OF AGRICULTURE           ……………            12

2.2    IMPORTANCE OF AGRICULTURE       …………….            12

2.3    AGRICULTURAL CO-OPERATIVE SOCIETIES   ….            13

  • TYPES OF ORGANISATIONAL FORMS OF AGRICUL-

TURAL CO-OPERATIVES AND HOW THEY IMPROVE

AGRICULTURAL PRODUCTION ……………………….       17

 

  • SERVICES PROVIDED BY AGRICULTURAL CO-

OPERATIVES                       ……………………………….       22

 

REFERENCES    ……………………………………………       25

 

CHAPTER THREE

3.0     RESEARCH DESIGN AND METHODOLOGY  …………..     27

3.1     SOURCES OF DATA COLLECTION………………………     27

3.2     METHOD OF DATA COLLECTION  ………………………    28

3.3     RESEARCH POPULATION    ……………………………….    30

3.4     SAMPLE SIZE       ……………………………………………    30

3.5     METHOD OF DATA ANALYSIS  …………………………..    30

 

CHAPTER FOUR

  • SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATION  ………………………………………      32

4.1    SUMMARY OF FINDINGS  ………………………………….      32

4.2    CONCLUSION             ………………………………………..       34

4.3    RECOMMENDATIONS   …………………………………….       36

BIBLIOGRAPHY  …………………………………………….        38

APPENDIX            …………………………………………….        39

 

 

CHAPTER ONE

 

 

  • INTRODUCTION

In Anambra State, most inhabitants survive through Agriculture and their main occupation is subsistence farming which attracted the interest  of many co-operative societies both the old and new ones.  Improving the Agricultural production was their main target and at the same time lifting the level of it size and qualities.  Most of the crop couldn’t grow well in  order to produce as expected.  The product that were several affected were yam tubers, cocoa yam, vegetable, cassava stem and tubers.

 

In the sixties, Anambra State economy had a mono-sectorial dependency on Agriculture as the main source of earning, and also the main source of employment.  Then we took one leaf from this dependency  on agriculture to a higher dependency on trade and white collar jobs.

 

Anambra state Agriculture is till completely preasentised,  hoe, cutlass economy with a large number of small-scale holder producers.  One can observe that Anambra state is still semi-substantial and their output from Agriculture production can neither feed the fearing population nor provide essential raw material for the agro-based industries.  The export of the state major cash crops which has in the past supported the economy has virtually stopped.

 

While a lot of observers dwell on the urgent need to reinitialize this sector, Omuma (1986) implied the adverse effects of no reinitialization  of the agricultural sector noted that under such conditions, all it needed was famine and kwashiorkor to be evident in the village.

 

Furthermore, one wondered why it is taking the state so long despite its abundant land and know-how to revitalize the agricultural sector and save the inhabitants of Anambra state who both underrated kwashiorkor stricken  and undernourished.  While emphasizing the importance of improving agriculture productions, through co-operatives.  Igbo (1996)  said, it is now on the government  the dependence on the external sources of food, because it has ties their state independence to the uncertainties of ridiculed.

 

According to Anambra state food journal (1991), Agriculture was the back bone of the state’s economy development to thousands of Anambra  state indigenes over 95%  of the labour force, mostly from rural areas.  Agriculture produces feeds for animals that provide proteins for man.

 

All these made the government to organize these present farmers into agricultural co-operative with view of having massive food production in the country.

 

1.1     BACKGROUND OF THE STUDY

Co-operative movement all over the world has been considered or taken as both mean and instrument  of development whereby individual as group of people with common social-economic come together mutually to take and solve their common socio-economic problems.  In our country today, sources of statements have been made in the newspapers and other news media, by scholars advocating the use of co-operative societies for the development and improvement of living standard of the rural people.

 

Meanwhile, many programmes have been launched by the federal government in support of this rural development, such as Agricultural Development Project (ADP), National Land Development Authority (NALDA), Directorate of Food, Roads and Rural Infrastructures (DFRRI), Better Life  {Programme (BLP),  etc.

 

Recently, the family support programme (FSP) which was launched by the federal government which aims at improving the life of the rural dwellers through the formation of co-operative movement.  Co-operative movement spans through many aspects of our economic life such as production, consumption, distribution, thrift, savings and the provision of rural infrastructures.

 

 

 

  • STATEMENT OF THE PROBLEM

 

Nigeria has embarked on various programmes and policies, costing hundreds of millions of naira aimed at reviving the depressed agricultural sector.

 

In view of this, agricultural co-operative was instituted so as to organize the small-scale farmer who are still involve in manual labour type of farming in co-operative and had failed to produce enough food for our teaming population thereby forcing the country to be involved in importation of large quantity of food with a huge percentage decline in agricultural export.  All these government efforts have not actually had much significant improvement in this sector as much emphasis is now being placed on agriculture.  This  call for urgent reexamination of the role of these agricultural products, its aim of facilitating the attainment of self sufficient in agricultural and making agriculture

 

Continue reading THE IMPORTANCE OF IMPROVING AGRICULTURE PRODUCTION THROUGH CO-OPERATIVE SOCIETIES.

An Examination of the role of Co-Operative thrift and Credit Societies in Agricultural Financing.

An Examination of the role of  Co-Operative thrift and Credit Societies in Agricultural Financing.

(A case study of selected Co-Operative thrift and credit societies in Enugu State.)

COMPLETE PROJECT  MATERIAL COST 3000 NAIRA

 

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ABSTRACT

In Nigeria, agriculture has remained the prime mover of the economy from pass government and individual attention have been focused to significantly  improve the adequacy of the this sector. In this prefect, efforts have been made to examine the role of the co-operative thrift and credit societies in the financing of agriculture in the nation.  As a result of circumstances beyond the control of the researcher, selected co-operative societies in Enugu state has been chosen as a case study.  Therefore, to arrive at a meaningful and dependable conclusion, a  selection of co-operative societies in the state have been made and studied.  It is believed  that generalization would be made on the entire nation using the reseat arrived at in this research.  The project is divided into five chapters to enhance understanding and comprehension.  In chapter one an introduction of research was made.   Among other things in this chapter, the objective of the study and testable hypothesis were established.

 

Chapter two concentrated on the literature review, here materials relating to the project topic were thoroughly examined.  In chapter three which further on the design and methodology of the research the source and types of data

 

were established the technique for the presentation and analysis of the data were outlined.

 

In chapter four, the data so collected were presented on bar chart.  The hypothesis were tested and analysis using the chi-square testing technique relationship were necessary established using the spear man’s rank order correction co-efficient the perfect was finally concluded in chapter five.

 

TABLE OF CONTENTS

CHAPTER ONE

1.0     INTRODUCTION

  • BACKGROUND OF THE STUDY
  • STATEMENT OF THE PROBLEM
  • OBJECTIVES OF THE STUDY
  • RESEARCH QUESTION
  • SIGNIFICANCE OF THE STUDY
  • SCOPE AND LIMITATIONS OF THE STUDY
  • DEFINITION OF TER

 

CHAPTER TWO

2.1            THE CONCEPT OF AGRICULTURAL PRODUCTION IN

NIGERIA.

2.2           CO-OPERATIVES IN NIGERIA CONCEPT ORIGIN AND

STRUCTURE.

2.2A.      CONCEPT

2.2B.      ORIGIN OF CO-OPERATIVE MOVEMENT IN NIGERIA

2.2C.      ORIGIN OF CO-OPERATIVE MOVEMENT IN ENUGU STATE

  • TYPES OF CO-OPERATIVE SOCIETIES IN ENUGU STATE
  • PROBLEMS OF AGRICULTURAL DEVELOPMENT IN ENUGU STATE.
  • IMPORTANCE OF CREDIT TO FARMERS IN ENUGU STATE.
  • PROBLEMS OF THE CO-OPERATIVES IN ENUGU STATE.
  • RURAL BANKING SCHEME AND AGRICULTURAL FARMING.
  • ANALYSIS OF CO-OPERATIVE SOCIETIES PERFORMANCE IN GRANTING CREDITS TO MEMBERS FOR AGRICULTURAL DEVELOPMENT.
  • NIGERIAN AGRICULTURAL AND CO-OPERATIVE BANK LIMITED (NACB).

REFERENCE.

 

CHAPTER THREE

  • RESEARCH METHODOLOGY AND DESIGN

3.1       INTRODUCTION

  • SOURCES OF DATA
    • PRIMARY SOURCES OF DATA
    • SECONDARY SOURCES OF DATA
  • POPULATION SIZE
  • SAMPLE SIZE
  • QUESTIONNAIRE DESIGN
  • METHOD OF SAMPLE SELECTION
  • DATA PRESENTATION
  • METHOD OF DATA ANALYSIS

REFERENCE

 

 

CHAPTER FOUR

  • DATA PRESENTATION AND ANALYSIS

4.1        INTRODUCTION

  • QUESTIONNAIRE ADMINISTRATION
  • DEMOGRAPHIC CHARACTERISTIC OF RESPONDENTS

ANALYSIS OF RESPONSES FROM OFFICIALS OF CO-OPPERATIVE SOCIETIES.

  • TEST OF HYPOTHESIS.

CHAPTER FIVE

5.0       SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

  • INTRODUCTION
  • SUMMARY OF FINDINGS
  • RECOMMENDATIONS
  • CONCLUSION

BIBLIOGRAPHY

QUESTIONNAIRE.

 

CHAPTER ONE

 

  • INTRODUCTION

1.1       BACKGROUND OF THE STUDY

 

In any economy, one or more sections serves the prime movers drilling the rest of the economy.  Agriculture until recently has been the prime mover of Nigeria’s economy.  The last fifteen years witnessed successive governments in Nigeria’s taking several steps to boost agricultural production in the country.

 

Most notable among these efforts were the “National Accelerated Food Production Programme” ( NAFPP) which was launched in 1973.  Operation feed the nation (OFN) of 1976 and the Green Revolution Programme (GRP) that was launched in 1980 (IJERE. M. O 1975).  Special projects were also embarked upon to enhance agriculture such as Agricultural Development Authorities, River Basin and Rural Development Authorities, to mention just a few.  Provision of fertilizer, improved seeding to farmers, mass enlightenment campaigns.   Introduction of technology packages were also some of the attempts made to raising agricultural production.

In spite of all these, agricultural production in Nigeria is far from the target.  Productivity has declined to the extent that the country had to resort to importing agricultural products including food items, some of which were luthen to known to have been exported.  This unsavory situation has led concerned authorities to examine closely the problems confronting higher agricultural productivity.  One of the major constraints identified is inadequate capital and credit facilities to the farmers.  Others are poor transportation, inadequate flow of funds into agriculture has been identified as a critical factor in decelerating  increased food production in Nigeria (Adeyeye; 1978).

 

Making funds available to farmers through agricultural credit facilities is importance because it enables them expand the scope of their operation and adopt new production techniques, also it enable them to develop orderly marketing of their product through the adaptation of new techniques for processing and storage as well as generating high bargaining power  associated with greater liquidity.

 

In order to ameliorate this funding problems being encountered by the financial institution in Nigeria to allocate yearly a certain percentage of the total lending to the agricultural sector, this is was hoped, would afford the farmers the capital and production credit needed to boast agriculture.  This attempt at sector allocation failed to achieve the intended objective as trading banks were reluctant to lend to agriculturist because of the high default risk resulting from the uncertainty and risk inherit in agricultural production and marketing.

 

The farmers were also confronted with the inability to provide the needed collateral  securities .  The farmers inability to provide the needed collateral securities by banks led to the search for co-operative societies.  The group can lend to individual member farmers and outsiders today.   There are many co-operative thrift and credit societies and this project hereby examines the impact they have made towards the financing or upliftment of agricultural production in Nigeria.

 

  • STATEMENT OF THE PROBLEMS

Co-operative societies was the revolt against exploitation of workers, the die living condition of the urban masses on estimated competition and greed; peoples bad attitudes, hatred and excessive exploitation of man to man.  The establishment of co-operative around Enugu was to ender services among their members and non-members but revers  is now the case, in the sense that almost all the co-operative organization around Enugu is said to have closed down for no good reason.  The few surviving co-operative still in business in Enugu state are so unpopular that they have made impact on the economy of Nigeria.  It is true that lack of interest in the societies and also two much of egocentric is one of the things that runs the societies down in Enugu state.

 

Continue reading An Examination of the role of Co-Operative thrift and Credit Societies in Agricultural Financing.

an Appraisal of the Activities and management methods of Anamco workers multi-purpose co-operative society

an Appraisal of the Activities and management methods of Anamco workers multi-purpose co-operative society

COMPLETE PROJECT  MATERIAL COST 3000 NAIRA

 

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ABSTRACT

This project research was aimed to examine the management and activities of the Anammco worker’s multipurpose co-operative society limited, which is located in Emene, Enugu state.

 

The study is aimed at looking into the aims and objectives of the society, origin and membership, social and business activities; sources of finance of the society; financial benefits to members, assets and liabilities of the society and problems facing the society.

The information gathered from this study was both from primary and secondary sources.

In selecting respondents, the stratified random sampling method was used.  the respondents were the official and members of  Anammco worker’s multi-purpose co-operative society limited.

Questionnaires and oral interviews were used to obtain the required response from the respondents.  The data gathered were systematically analyzed, the present management and activities of the Anammco worker’s co-operative society was revealed through the data analysis.

The finding revealed that officers who are democratically elected annually manage the society.

The business activities of the society include granting loans to her members at a reasonable rate, selling of good quality products at the society’s consumer’s shop.

The social activities in which the society is engaged includes giving her members some form of bonuses or gifts especially during festival seasons; providing help to her members during marriages, funerals, naming ceremonies, accommodation, medical expenses, etc.

The major sources  of finance for the society includes thrift savings, interests from loans granted to members, levies paid by members and also from the mother company, i.e, the Anambra Motoring Company (ANAMMCO).

 

It was also noted that the society kept some books and records of which include committee General minutes book, member’s register, cash book, personal ledger and attendance register.  Also the study revealed that the society is faced with some problems such as macro and micro factors (effects) effecting the economy, poor government support, etc.

The study made the following recommendations of which includes constant education of both the management and members of the society, establishing a properly equipped consumers shop, the need of more co-operative field officers, electing honest loyal officers, constant evaluation of the society’s aims and objectives.  These and many more will help to add life as well as activate the management and activities of the ANAMMCO worker’s co-operative society limited.

 

TABLE OF CONTENTS

 

CHAPTER ONE: INTRODUCTION

  • General Introduction
  • Statement of the problems
  • Significance of the study
  • Objective of the study
  • Scope and Limitations of the Study
  • Research questions

 

CHAPTER TWO: LITERATURE REVIEW

  • Field Activities undertaken by the Anammco Worker’s Multipurpose Co-operative Society Limited.
    • Credit and Thrift Savings.
    • Workers need to save
    • Worker’s need to borrow
    • Worker’s need to invest their savings/money.
    • Operating a consumer’s co-operative store.

 

  • The objectives and activities of the ANAMMCO worker’s multipurpose co-operative society Ltd.
    • Economic activities for meeting the needs of ANAMMCO worker’s multipurpose co-operative society Ltd.
    • Participatory democracy
    • Human responsibility
    • Social responsibility
    • National and International Economic co-operation.
  • The mode of operation and management of co-operative society

 

 

CHAPTER THREE

RESEARCHDESIGN AND METHODOLOGY

  • Historical Background/Overview of multipurpose co-operative society in Eastern Nigeria
  • Sampling procedure
  • Sources of Data
    • Oral interview
    • Questionnaire
  • Population of the study
    • Sample size
  • Stastically presentation
  • Analytical presentation

 

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

  • Aims and objectives of the society
  • Origin and membership
  • Social and business activities
  • Source of the finance
  • Record books of the society
  • Financial benefits to members
  • Assets and liabilities of the society
  • Problems facing the society

 

CHAPTER FIVE

SUMMARY, CONCLUSION  AND RECOMMENDATION

  • Summary
  • Recommendation
  • Conclusion
  • Bibliography
  • Questionnaire

 

 

CHAPTER ONE

 

  • INTRODUCTION

1.1   GENERAL INTRODUCTION

 

The population of this study is limited to the worker’s of ANAMMCO who come together of their own free will to form the ANAMMCO worker’s multipurpose co-operative society Ltd.  This is made up of people who voluntarily associated together as human beings on the basis of equality, for their social-economic interest.

 

Anammco worker’s multipurpose co-operative society limited has become co-operative that co-operation as a corrective measure to capitalism, has an ideological base that is rooted on democracy, caring and sharing.

The society was formed in August 11 1987 and was incorporated in 25 March 1988, with total membership of 415.  Activities of the society include: granting of loans to members, establishment of staff shop to sell commodities.

 

Presently, Anammco worker’s multi-purpose co-operative society has about 748 members, among them are 70 females and 678 males.

Anammco worker’s multipurpose co-operative society ltd has about N55,000,000 value of their Assets and N25,000,000 value of liabilities.

 

Co-operative as social economic society have their record books which they use to record all the financial transactions and the event in the society.  In Anammco multipurpose Limited, they use six record books among them are:-

  1. Committee minutes book
  2. General minute book
  3. Member’s register
  4. Cash book
  5. Personal ledger
  6. Attendance register

 

As a society that operate in fragile Economic situation, Anammco M.P.L.S are facing many problems which include:

 

  1. Macro and Micro effects or factors
  2. Poor co-operative spirit
  • Lack of co-operative extension workers.

 

 

  • STATEMENT OF THE PROBLEM

Multipurpose co-operative society as the name implies are societies that engage in all types of business thereby performing more than one function to their members.  They engage in production, offer credit to members and market the members products, buys goods in large quantities for its members, e.t.c.  thus, this type of society enables its members to get all that they require from the society and have more time to  attend to their work.

 

Multipurpose co-operatives face a lot of problems such a insufficient financial resources; lack of educated personnel management activities often do not conform with co-operative purpose, non-specification of an ideal co-operative purpose to be followed by management over dependence on government…

 

Continue reading an Appraisal of the Activities and management methods of Anamco workers multi-purpose co-operative society

THE ROLE OF CENTRAL BANK OF NIGERIA PLC IN AGRICULTURAL FINANCE DEVELOPMENT PROBLEMS AND PROSPECTS

THE ROLE OF CENTRAL BANK OF NIGERIA PLC IN AGRICULTURAL FINANCE DEVELOPMENT PROBLEMS AND PROSPECTS

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ABSTRACT

The Role of Central Bank of Nigeria in Agricultural Finance Development, Problems and Prospects

The topic provide for conceptual frame work of the role played by the CBN in the development of Agricultural sector of the Nigeria economy as its primary purpose. Its secondary purpose is to assess the policies and program of CBN to the development of Agricultural Finance.

Data was collected from both primary and secondary sources. In the primary source I interviewed some farmers, officials of CBN while in the secondary data it was from annual time series of different duration on the program and policies of the institution.

The research showed the role played by the CBN in financing Agriculture in Nigeria by making funds available to farmers especially at the rural areas and granting of credit scheme funds to the farmers

Also the problem of ultracy by the farmers has posed a problem and government should make sure that extension workers are sent into the rural areas to educate the farmers.

 

TABLE OF CONTENT.

CHAPTER ONE

Introduction                                                                                           1

  • Background of the study 1
  • State of problems 7
  • Objectives of the study 9
  • Significance of the study 10
  • Hypothesis 11
  • Scope and limitation of the study 11
  • Definition of terms. 12

CHAPTER TWO

Review of Related Literature                                                                  16

2.1 Historical overview of Agriculture financing in Nigeria                  17

2.2 The importance of Agriculture                                                         19

2.3 Problems of Agriculture financing in Nigeria                                  20

2.4 The establishment of Central bank in Nigeria                                  22

2.5 The Major development programs and policies of

C.B.N in relation to Agricultural financing                                  26

2.6 The C.B.N and its objectives and functions.                                    39

2.7 The organizational structure of C.B.N

and its Agricultural finance development.                                    44

CHAPTER THREE

Research Design and Methodology                                                       48

3.1 Research methodology                                                                    48

3.2 Research Design                                                                              48

3.3 Area of study                                                                                   48

3.4 Sources of data                                                                                          49

3.5 Method of investigation                                                                   50

3.6 Method of data analysis                                                                   51

CHAPTER FOUR

Data Presentation and Analysis                                                              52

4.1 Introduction                                                                                     52

4.2 Analysis of responses to questionnaires                                           52

4.3 Testing of Hypothesis                                                                      58

CHAPTER FIVE

Summary of Findings, Recommendation and Conclusion                     64

5.1 Summary of findings                                                                       64

5.2 Recommendation                                                                             66

5.3 Conclusions                                                                                     67

          Bibliography                                                                                68

CHAPTER ONE

 

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Agriculture is defined as “the cultivation of land for the purpose of producing food for man, feed for animal and fibre or raw material for industrial companies.  It also includes the processing marketing of crops.  In other words, it embraces all activities involved in the primary and controlled production of plant and animals, such as fishing, forestry, farming, livestock, poultry and small scale industries connected with processing of agricultural products.

 

 

The agricultural sector forms the background of Nigeria economy dispite concerted effort in industrisation.  Agriculture occupies the pride place as the source of livelihood for over 70 percent of the population.  It is recognized as a pre-requisite to economic development.  With large scale dependence on agriculture for food, raw-material for industries etc, one would expect production to increase, rather it is disheartening to note that this is not the case.  Agriculture has suffered some neglects due to lack of investment since the inception of oil boom in 1970.  in fact, Nigeria is experiencing a dcline in the space of agricultural production in general, this situation is causing a great concern to the government.  Throughout the 1960s, Agriculture contributed 61.5%.  in the 1970s, it declined miserably be 2.3%.  this decline may be attributed to the domination of the nations export by oil since 1970 which accounted for 57.6% of total export income and rose steadily, attaining an overwhelming proportion of 98% in 1981.

 

as a result there was an absolute neglect in agriculture to both God (Gross Domestic Product) and export earnings which has been the major factor dictating the need to reactivate our agricultural products.  The need for this re-activaty and in effort to revamp this sector has been the reason for raising budgetary allocation in recent years to it.  It rose from 6% in 1970s to 22% in 1984.  this increase acts as incentive and motivation to farmers, but these farmers while engaging in these agricultural ventures are exposed to a lot of problem like diseases and pest attacks, fire destructions, industrial pollution, machinery breakdown and other problems.  To these problems, the farmers need some aids in solving or minimizing them.

 

 

Finance has been one of the most significant problems in the expansion of agricultural production.  This was as a result of the neglect of the agricultural sector following the oil boom of 1970s, when the oil sector become a major aspect of the Nigerian’s foreign exchange earning.  This contributed to the inadequate funding of the agricultural sector unlike before the boom.  Also the establishment of industries in the urban areas during the 1990 – 1994 National Development plan to boast industrialization drew the rural populace with constitute the farming population to urban cities for search of white color jobs.  A stage has reached, that average Nigerians are now underfed.  In the words of or P.N.C. Okigbo in 1990 “The average Nigerian consumed on the average, some 20.23 calories per day and 56.46 grammes of protein per day compared to the food and agricultural organization (FAO)minimum of 21.91 calaries and  53.8 grammmes of protein.  This the average Nigerian was and still, is among the worst fed in the world.

 

 

As a result of these situations; the successive Nigerian Governments showed concern over the decling situation of Agricultural production through policies and programmes aimed at revamping the agricultural production in attempt to encourage increase food production “The federal Government in 1993 tried the National Accelerated food production in programme (NAFPP) during the General Yakulu Gowon’s regime; Under the leadership of couneral Obasanjo, the Operation feed the Nation programme “(OFN) in 1976; Green Revolution came up under President Shehu Shagari and Rirectorate of food Road and Rural infrastructure under the regime of General Basangida regime.

 

 

Neither of these measures halted the Agricultural decline or any lasting effect on food production.  This is because “little or no meaningful attempt has been made to change the under developed status of the rural dwellers notwithstanding that these people constitute about 95 percent of the total population engaged in Agricultural in Nigeria.

It has been attributed that inadequate funding of agricultural project and programme has contributed in large measures to the government low production of Agriculture in Nigeria, and the government and other financial institutions forms the major sources of finance for Agriculture though policies and programmes.

 

 

Then what role and impact has the central Bank of Nigeria (CBN) as the bank at the apex of Nigeria Banking system, (Bank of last resort, bank to the government and Banker to other banks)” played to reinforce the government policies or revamp the agricultural sector of the economy.  The under – developed characteristic of the Nigerian economy has made the central Bank of Nigeria to be activity involved in the promotion of rapid economic development of other sector especially agriculture through its development roles unlike in developed economics where the role of central Bank is restricted to development of the financial system.

According to Dr Belshaw in his book entitled “Agricultural credit in economically under-developed countries he wrote that “in respect of agricultural credit, a central Bank has an important part to play by helping to establish, strengthen and promote the extension of commercial banking facilities and agricultural credit institutions.

Professor G. Nwankwo also wrote “it for instance mistaken to think and believe that only the functi