THE ROLE OF CENTRAL BANK OF NIGERIA PLC IN AGRICULTURAL FINANCE DEVELOPMENT PROBLEMS AND PROSPECTS .
Click here to download our android mobile app to your phone for more materials and others
COMPLETE PROJECT MATERIAL COST 5000 NAIRA OR $10 ,
. A FRESH TOPIC NOT LISTED ON OUR WEBSITE COST 50,000 NAIRA ( UNDERGRADUATE) OR 100,000 FOR SECOND DEGREE STUDENTS. $500. PLUS FREE SUPPORT UNTIL YOU FINISH YOUR PROJECT WORK. CONTACT US TODAY, WE MAKE A DIFFERENT. DESIGN AND WRITING IS OUR SKILLED. DESIGN AND WRITING IS OUR SKILLED.
Note: our case study can be change to suit your desire location . we are here for your success.
ORDER NOW
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER: 0115939447
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANKER SECURITY GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 2 HOURS
How to transfer from your bank account to All Nigeriabanks
1. Access Bank:
—-*901#
2. EcoBank:
—-*326#
3. Fidelity Bank:
—-*770#
4. FCMB:
—-*389*214#
5. First Bank
—-*894#
6. GTB:
—-*737#
7. Heritage Bank:
—-*322*030#
8. Keystone Bank:
—-*322*082#
9. Sky Bank:
—-*389*076*1#
10. Stanbic IBTC:
—-*909#
11. Sterling Bank:
—-*822#
12. UBA:
—-*389*033*1#
13. Unity Bank:
—-*322*215#
14. Zenith Bank:
—-*966#
15. Diamond Bank
—-*710*555#
To know your BVN, dial
—-*565*0#.
E.g for First bank… *894 *Amount *Acct. No. #
Please dail d code from d number u used to register d account from the bank
CALL OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
MONEY BACK GUARANTEE
PROPOSAL
The role of Central Bank of Nigeria in Agricultural Finance Development, problems and Prospects.
This topic provides for conceptual frame work of the role played by CBN in the development of Agricultural sector of the Nigeria economy as the primary purpose. The secondary purpose is to assess the performance of the policies and programs of the CBN to the development of Agricultural financing in particular and Agricultural development in general.
Data will be collected both primary and secondary sources. Primary data are to be collected by face to face interview with farmers, officials staff of commercial bank, and other financial institution while the secondary data is to be collected from annual time series of different duration depending on the program and policies of the institution.
The research will show the roles played by CBN in financing Agriculture in Nigeria by making funds available to the Agricultural sectors of the economy especially at the rural areas and granting of credit scheme funds o the farmers.
It is the intention of the writer to restrict this work to the role of CBN in Agric Finance which exclude the role of CBN in stabilization measures in the economy and the role of CBN in industrial finance and development
To achieve this objectives the project work will be divided into five chapters, each will be dealing with an aspect of the work and help to highlight the rudiments which when collected get to the root of this investigation.
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 function of a central Bank is to control or regulate the financial system; it was not conoinced nor thought to be an appropriate function that a central Bank also has to the task of developing the financial system if non existed and of organizing and mobilization of resources for development.
To this end, the central Bank of Nigeria embarked on some programmes and policies to curb the under economic development and low trend in agricultural production. These policies include the following :
- The provision of credit to marketing board for the purchase of some agricultural produce for export. This has become the sole responsibility of the central Bank of Nigeria since may 1968, when the commercial financial still was abolished by the federal Government.
- The establishment of the Nigeria Agricultural Bank (NAB) in 1976, this Nigerian Agricultural co-operative societies, improve agricultural production and storage facilities and promote marketing of agricultural products throy liberal credits to farmers at softer terms. The bank started with a capital of #6 million which has increased to #250 million in 1991 with the CBN contributing 40 percent while the Federal Government has 60 percent share. The functions of the banks includes: grant in of loans to small and medium scale farmers.
- The CBM also used another instrument in financing of agriculture, this is through its credit guidelines contained in its monetary and fiscal policies circulars which required the commercial banks to give preferential treatment to Agriculture.
- The establishment of Agricultural credit Guarantee sheme fund (ACGSF) in 1977 by both the federal Government and the central Bank of Nigeria. The Act provided #100 million subscribed by the federal government, and the CBN at the ration of 60 percent or #60 million to the federal Government, 40 percent or #40 million to CBN. This is to grantee for loan default made by commercial banks to farmers for Agricultural purposes to the time of 75% of the default. The CBN was also appointed the managing agent of the fund.
- STATEMENT OF PROBLEMS
Despite the various policies and programmes mapped out annually for the economic development of Nigeria with emphasis on Agriculture, the agricultural production level remained very low and recently on the decline.
Finance has been traced to be the major handicap to the typical Nigeria farmer, inadequacy of modern farming equipment, inputs, basic infrastructure and storage facilities, marketing and distribution system. Then the central Bank of Nigeria – the apex bank has been mandated by the federal Government of Nigeria to find a solution to these problems.
Consequently, the central bank of Nigeria through its agencies grant credit for the purpose of agriculture. But was faced with the following problems.
- Inadequate public enlightenment
- Mismanagement
- Technological constraints
- Poor land tenure system
- Environmental constraints
- Above all financial constraints.
Identifying financial constraints as the major handicap to increase agricultural production. The federal government increded its spending on agriculture by 12.7 percent in 1981 as against 6.5 percent in 1970’s. a total of #8 million was allocated to agriculture during the five years National Development plan 1981 – 85. still not much has been achieved in food production. To this end, the federal Government through the CBN policies and programmes aimed aimed at adequate financing to increase agricultural productivity, for a nation that can not feed herself is said to be economically undeveloped.