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Financial A Small Scale Business In Nigeria Effect On Economic Development Prospect And Problems
[A CASE STUDY OF NIGERIAN AGRICULTURAL AND COOPERATIVE BANK LIMITED ILORIN]
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1.3 SCOPE OF THE STUDY
This research work is concerned with problem and solution of financial in management in small scale business.
However, this study restricted to Nigeria Agricultural and Cooperative Bank Limited (NACB) Ilorin and effort will be made to contract after stamp organisation. Stamp organisation was to examine what goes on in their establishment.
1.4 SIGNIFICANCE OF THE STUDY
This is to be justified if consideration is to be given to the large numbers of small scale business which have filled up as a result of bad financial management but without them being able to dearly determined the use of their problems.
However, it is also good to know the due to lack of production in the organisation and gross management that of scarce many small business have found itself in economic problems which leads to the closure of company after short period of operation.
Furthermore, since the capital needed to run small scale business are supplied by the owner or by so call financial houses or banks. Therefore these fund have to be properly managed in order to encourage their leader to give them more.
A study of this nature is also very important in the sense that seek to show necessary prepared of possible assistance by the government for economic efficiency and effectiveness.
1.5 LIMITATION AND CONSTRAINTS OF THE PROJECT
The problem face in this study are the following.
i. Ability of proprietor not to give relevant information concerning their financial affairs.
ii. Unavailability of proper account records
iii. The time given to carryout research and investigation is too small.
1.6 HISTORICAL BACKGROUND OF THE STUDY
Nigeria Agriculture and Cooperative Bank Limited (NACB) was established as a national agriculture credit institution in November 24, 1912 and went into operation on March 6, 1913. Its establishment was binged on the now vindicted eviction the bank will enhance income level of farmers and thus make farming more attractive.
Today’s NACB started off as the Nigeria Agricultural Bank Limited (NACB) and actually froks its new name in 1978 at the instance of the Nigeria government.
This in the government’s view was to reflect more vivid the banks commitment to agricultural development through the promotion financial of co-operative.
Prior to the establishment of NACB as an institutional under the Nigeria farmers the financial of Nigeria Agriculture sector was essentially being handled by a variety of public institution these included the fund for agriculture and industrial development the regional local government boards, development cooperation’s and the regional marketing boards.
The general consensus however was that these credit financial institution failed due to some factors. Agricultural experts say that these factors range from political interference, inefficiencies project appraisal monitoring and supervision to low coverage of the farming population inadequate finding, adopting of excessively rigid and time consuming procedure for processing loan application low loan recovering and untimely loan distribution.
The non-institutional tender consisting of such information source as money tender, friends, relationship, and thrift societies took advantage of the weakness of the institution tenders to change exorbitant rates of interest to loan seeking farmers. This was the state Nigeria formal found themselves whom the government commissioned a number of studies which finally culminated in world bank “stone nam government†of 1969.
The report recommended among other thing the establishment of a national agricultural credit institution whose major function would be the provision of credit to farming so as to exterminate the death of capital which has been the major placement of agricultural development in Nigeria.
An after 19 years of existence NACB can unequivocally by said ton have lived up to this objective. It has provided diverse credits to improve the ambit of the country’s agricultural and agro business.
Thus, the NACB is today a welcome relief to Nigeria farmers the banks migration marked in important landmark in the history of the nations agricultural development institution devoted entirely to investing in all aspects of the agricultural industrial and more importantly, it has continues to serve as a source of fund to Nigeria farmers.
As a development finance institution the Nigeria agricultural and cooperative bank limited (NACB) was established to deliver credit to the agricultural sector of the Nigeria economy the following objectives as its central focus.
• Promotion of agricultural production and rural development
• Assisting in the improvement of the income adequate of life of the Nigeria rural population.
• Contributing to the overall growth and development of the Nigeria economy. There are also some certain function performs by NACB and they are as follows.
1. The provisions of loans to individual farmer cooperative organisation limited liability companies state and federal government agencies financing direct investment in the equity capital of major agricultural agro allied industrial ventures.
2. Providing guaranties for viable agricultural and agro allied ventures to enable them raise financing either locally or from abroad.
3. Assisting in improving the incomes and welfare of farmers promoting rural development.
4. Increasing the nation’s output of food and cash crop to meet the needs of a rapidly increasing population.
5. Financing of all forms of agricultural project which include fishing cattle, poultry, rabbitry, piggery, forestry and timber production horticultures available crops and trees crops.
6. Provisions of finance for the marketing of agricultural product locally & for export, if also make finance available to industries that process agricultural products.
7. Financing of agro-allied project including tractor hiring operation agro processing and storage.
In addition, during the investigations research was able to interview the head of department and some offices concerning some other things about how NACB finance small scale business.
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