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The Role Of Commercial Banks In Agricultural Growth And Development In Nigeria
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CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY Agriculture
involves the cultivation of land, raising and rearing of animals and raw
materials for industries. It involves cropping live stock, forestry,
and fishing, processing and marketing of these agricultural products.
Food is man‟s most important basic need before those of clothing and
shelter. It is provision therefore, has been the major concern of man
from the past years since it is both an essential condition and
sinequanon to life. Agriculture being the provider of food can then be
concluded as the life wire of any nation and thus be concluded as the
life wire of any nation and thus its importance cannot be over
emphasized. When Nigeria gained their political Independence in 1960,
agriculture was dominant sector of the economy. It contributed over 65%
of the country‟s Gross Domestic Product (GDP) and provided the bulk of
the foreign exchange earnings through the foreign exports of the cash
crops. The sector catered adequately for nearly all food requirement and
raw materials for industry in the country. Agriculture performs a
number of functions in an economy such as:
STATEMENT OF THE
PROBLEM Nigerian agriculture is confronted with many problems which
ranged from low yield to low productivity and inadequate facilities
among others. Oyatooye (1981) was on the same path when he noted that
the problem of agriculture in Nigeria can be discussed under four
headings. Technology Marketing III. Finance and Government Such
problems include problems of providing adequate extension services,
agricultural inputs, storage facilities, agricultural credit, marketing
information and efficient marketing arrangement, infrastructures such as
feeder roads efficient power supply and institutional reforms where
necessary. William (1981) pointed out that, the major problems facing
Nigeria today are the needs to transform her agricultural industry from
one traditional input with low productivity to one which enables her to
meet the rising expectations of her people and to correct the social and
economic imbalance created by lopsided development between her rural
and urban areas which have encouraged the youths and others to migrate
from rural areas. His statement is a valid one as when it was made from
we have seen, the Nigerian economy is characterized by a high degree of
rural to urban drift in search of greener pastures leaving the farm land
to old aged men who are unable to provide all the food requirements of
the growing population. This is responsible of the growing population.
This is responsible for the high cost of food as there is pressure on
the little produced. Adekanye‟s assertion (1988) when he stated that: it
is a common knowledge that present farmers and artisans who the back of
the rural population do not get adequate and timely loans from
financial institutions and they have no collateral and equally they do
not get supplies of raw materials of standard quality even at the market
place as they come under the ditches of rich farmers and sellers in the
urban areas. The need for setting up of rural based commercial banks is
very urgent.
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ABSRACT - [ Total Page(s): 1 ] The study examines the role of commercial banks in Agricultural development in Nigeria, spanning from 1986-2010. The methodology used is ordinary least squares (OLS), using P.C give 8.00 package. The findings from the study support the view that commercial bank loans are not getting to red farmers. The commercial banks loan to Agricultural sector is positive and significant at 5% level, contributing 67.65 percent variations in Real Agricultural output in Nigeria. Real interest rate and real ex ... Continue reading---
