Central Bank of Nigeria and Agricultural Finance and Development

Reference code: C088

ABSTRACT

This research project investigated the effect of Central Bank of Nigeria on Agricultural Finance Development in Nigeria. Its secondary purpose was to assess the policies and programs of CBN to the development of Agricultural Finance. For the Purpose of the study, data was collected through the issue questionnaires and analyzed Pearson Correlation Co-Efficient. In the course of the data analyses, we found also that there is a positive and significant relationship between agricultural co-operative societies and the central bank of Nigeria. This indicates that the assessment of the use of monetary and fiscal policies in stabilizing Agriculture should be regarded as being very good. Given our findings, it was concluded that: that CBN plays a vital role in Agricultural finance development. But still some pose a threat to the successful attainment of their objectives. Finally, we make the following recommendation: The government should also establish a scheme that will be in charge of Agricultural funding and the people that will be among the scheme should be people of good conduct in order to avoid or rather reduce fraud and misappropriation funds. The CBN should make sure that Nigerian Agricultural cooperative and Rural development bank Ltd (NACRDB) spread out into the interior parts of the states so that farmers  can always have people to lean on for some of those farmer are poor to the extent that they can’t afford the transport fare of going to the urban banks to seek advisory services or rather  spend delegates to them on weekly bases

BACKGROUND TO THE STUDY

......... The Central Bank is a government established agency responsible for controlling the nation’s supply , credit  conditions and supervising the financial system especially the commercial banks and other depository institutions .The major features of Central Bank are as follows: (a)  Note Issues— One of the features of Central Bank is the issue of currency note in the country. The Central Bank controls the  volume of currency in the country in accordance with requirements of the business and the general  public. The Central Bank is the banker to the government and also acts as its fiscal agent. The government keeps its balances with the Central Bank without paying interest. It receives and disburses the payment on behalf  the government

The Central Bank also acts as the banker to scheduled and other banks. It is the custodian of the cash reserves of the commercial banks. Every scheduled bank is required to maintain not less than 5% of its total demand and time liabilities with the Central bank. Against this obligation the scheduled banks are entitled to loan  and discount facilities of the bank. The reserves with Central bank is known as liquid cash. The reserves enable the Central Bank to have control over the credit creation of the commercial banks.

The Central Bank regulates and controls the credit in the  country according to the varying  economics situations. Bank rate policy and open market operations are direct method of  controlling credit by Central Bank. It can either increase or decrease the reserve      ratio and control the advances policy of commercial banks. Agricultural Finance generally means the studying, examining and analyzing the financial aspect pertaining to farm business. This financial   aspect  includes money matters , relating to production of agricultural products and  their disposal.

Murray (1995) defined Agricultural Finance as “ An economic study of borrowing fund by farmers, the organization and operation of farm lending agencies and of society’s interest in credit for  agriculture.” The underdeveloped of Nigerian economy has made the Central Bank  be actively involved in the  promotion of   rapid  economic   development t of  other sectors especially the agriculture through its development  roles.

According to Belshaw  in his   book  entitled “Agriculture al Credit  in economically under-developed countries , he wrote that ‘ .. in respect of  agricultural credit, the Central Bank has an important role to play by helping to establish, strengthen and promote the extension of commercial banking facilities and agricultural credit  institutions. To  this end, the Central  Bank of  Nigeria embarked on some programs and policies  to curb the   under-economic development and  low  trend in agricultural production ..........

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TABLE OF CONTENT

CHAPTER ONE
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of problems 7
1.3 Purpose of the study 9
1.4 Research questions 10
1.4.1 Hypothesis 11
1.5 Significance  of the study 11
1.6 Limitation of the study 12

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Theoretical frame  work 17
2.2 The Conceptual frame work 19
2.3  Emperical  Studies 21
2.4 The Major development programs and policies of 26

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 48
3.2 Population of the study 49
3.3 Sample and sampling techniques 49
3.4 Nature and sources of data 50
3.5 Method of  data collection 50
3.6 Method of data analysis 51
3.7  Validity of instrument 51
3.7.1 Reliability of the instruments 51

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction 52
4.2 Data Analysis 52
4.3 Testing of Hypothesis 58

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of findings 64
5.2 Recommendation 66
5.3 Conclusions 67
Bibliography 68


Reference code: C088

Reference code: C088

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