ABSTRACT
Many Nigeria find it difficult
to feed due to the high cost of living, which is caused by low productivity of
agricultural products.
Government has established many scheme to
finance agriculture in order to be able to feed her teeming population and for
agriculture to contribute to its gross domestic product. Not withstanding all
these schemes established agriculture still record low productivity. Due to
this, Nigeria still import agricultural products and this has adverse effect on
balance of payment. This calls for government into financing agriculture
through various means like ACGSF e.t.c.
The first chapter opens with the general
background of the topic and then went through the statement of the problem, the
objectives of the study.
Chapter two start with literature review
the problems of agricultural financing in Nigeria.
Chapter three deals with the means of
collections of data.
Chapter four deals with research
questions and its findings in Ojebe- ogbene, local government area of Enugu
state.
Chapter five deals with the summary of
findings and recommendations to farmers, commercial banks, Government and
central bank of Nigeria, it also raise issues for further research on the
topic.
TABLE OF CONTENT
Title page
Approval page
Dedication page
Acknowledgement
Abstract
Table content
CHAPTER ONE
INTRODUCTION
1.1, Background of the
study.
1.2, Statement of the
problem
1.3, Objective of the
study
1.4, Purpose of the
study
1.5, Significance of
the study
1.6, Scope of the study
1.7, Limitations of the
study
1.8, Delimitations of
the study
1.9, Definition of
terms.
Reference
CHAPTER TWO
Literature review
2.1, An overview of
agriculture
2.2, Components of
agriculture
2.3, System of
agriculture
Reference:
CHAPTER THREE
RESEARCH DESIGN AND
METHODOLOGY
3.1 Sources of data
3.2, primary sources
3.3, Secondary sources
3.4, Personal interview
3.5, Location of data.
CHAPTER FOUR
4.0, SUMMARY OF
FINDINGS
CHAPTER FIVE
RECOMMENDATIONS
5.1, Recommendation to
CBN
5.2, Recommendation to
commercial banks
5.3, Recommendation to
farmers
5.4 CONCLUSION
BIBLIOGRAPHY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Agriculture is the production of animals,
fishes, crops and forest resources for the consumption and other benefits of
man.
Financing is the sourcing and application
fund. Ugwuanyi (1997. 36). Therefore, agriculture financing is the sourcing and
application of funds for the production of animals, fishes, crops and forest
resources.
Before independent, agriculture was the economic
mainstay of Nigeria .the Eastern region were producing palm produce in large
quality, the western produced cocoa and the Northern produced groundnut .in
1970s, there was a great neglect of agriculture as a result of oil and that
resulted in a fall in revenue. This stilled up a thought on how to receive
agriculture so that it can serve as a source of revenue, hence the idea of
agricultural financing. Sincere then the central bank of Nigeria CBN through
various policies has been financing agriculture. In its credit guideline, it
introduced sectional allocation, to ensure that merchant and commercial banks
do no deny the important sectors example, agriculture of credit through this
policy was abolished in 1st October 1996.
The CBN strengthen agriculture financing
through the giving of grace period to agricultural loan.
In 1975, rural banking scheme was
established to acquaint the rural dwellers, which are mostly farmers with
banking habits, mobilize idle funds in these areas and from this fund lend to
farmers on demand. But this scheme was abolished in 1997.
In 1973, Nigeria agricultural and
co-operative bank ( NACB) was established to provide a high level of quality
credit for agricultural production but there could not achieve desired objective.
With these and the ability of the commercial
and merchant banks to give adequate loans to agricultural sector because of the
inherent risk involved , and the inability of farmers to provide adequate
securities, the government in 1977, established agricultural credit guarantee
scheme fund ( ACC, SF).the scheme was established to guarantee loans granted to
commercial and merchant banks for agricultural purposes with the aim of
increasing the level of bank credit to agriculture. This scheme guarantees 75%
of default amount.
1.2 STATEMENT OF PROBLEM
The need for Nigeria to feed her teeming
population and the desired to promote the contribution of agriculture to the
gross domestic product (GDP) necessitated agricultural financing through
various means, such as sartorial allocation of credit, rural banking scheme
(through has been abolished). Agricultural credit guarantee scheme fund (ACGSF)
among others.
However, contrary to all these efforts,
agriculture still record low productivity. As a result, Nigeria still impact
agricultural products and this dose not urge well with the balance of payment.
Moreover, since after oil discovery
agriculture has not been earning a considerable amount of foreign exchange for
the economy.
Furthermore, it dose not improve the
standard of living of farmers and this discourages youth from engaging in
agriculture as a profession.
1.3,OBJECTIVE OF THE STUDY
(A) To find if there is
any scheme set by government to finance agriculture by granting loan to farmers.
(B) To finds out if the
extent to which farmers are aware of the existence of this scheme.
(C) To finds out the
extent to which farmers have benefited by ACGSF.
(D) To finds out
whether farmers can obtain loan under this scheme with ease.
(E) To finds out
whether ACGSF has improved agricultural productivity.
1.4, PURPOSE OF THE STUDY
The intention for making this research
project is to find out the impact of ACHSF and other welfare and incentive
packages on agriculture in rural areas with particular reference to
ojebe-ogbene local government council of Enugu state.
The need for high agricultural productivity for income
generation and consumption has motivated and incited the govwernment into
funding agriculture through various means . Some of which include ACGSF
community banking scheme, sartorial allocation.
Finally, the main aim of this research works
it to enable the researcher to obtain a national Diploma in banking and
finance.
1.5, SIGNIFICANCE OF THE STUDY
By the time this research work will be
brought to completion, it will highlight the ways to promote agricultural
productivity through ACGSF loans.
The finding of the research work will be
of importance to the CBN because as the management board of the scheme it will
know the ways to overcome them. It will also be of much importance to
commercial and merchant banks, as it will identify their weak point in
implementing the policies of the scheme and the ways to improve their
performance as to achieve the objective of the scheme.
This project will also help farmers to know
of the existence of this scheme and how to obtain loan under it.
1.6, RESEARCH QUESTIONS
1.
Has there been of scheme set up by government to
finance agriculture by granting loans to farmers.
2.
To what extent are farmers aware of the existence of
these schemes?
3.
Has farmers
benefited from this scheme, and to what extent has their benefited from it.
4.
At what ease can farmers obtain loan under this scheme.
5.
Has agricultural
productivity be increased under this scheme.
1.7, SCOPE OF THE STUDY
The study into agricultural financing is an
inexhaustible one; therefore, the researcher takes the scope of the study to be
five (5) years periods, which ranges from 2000-2005.
1.8, LIMITATIONS OF THE STUDY.
The researcher in collection of data for
research work faced many constraints. Banks officials did not find it easy to
release informations about their implementation of the policies of the scheme.
Some personal did this for lack of time where as some did it for negligence.
Transportation constraint was not left out.
Traveling around the towns in ojebe-ogbene for data collection posed problems
on the researcher, as some of these roads do not have access roads.
Another constraint was finance. Every research
work is left incomplete without money and this posed a problem on the
researcher for a while, as most of the data needed had to be obtained from
different locations, the researcher had travel to these various places and this
required money.
1.9, DELIMITATIONS OF THE STUDY
the delimitation of this study is restricted
to the problems of agricultural productivity with respect to ojebe- ogbene
local government.
This study also handles particular
treatment on the ACGSF loan scheme its implementations a derivation and
effectiveness on the community farmers.
It equally produces analytical statistics on
CBN awareness campaign with in the targeted populace.
Finally, it recommends an increase and
modifications on the scheme and subsequent or under agricultural welfare
packages. And incentives.
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