THE ROLE OF COMMERCIAL BANK IN FINANCING OF AGRICULTURAL PROJECTS
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
THE ROLE OF COMMERCIAL BANK IN FINANCING OF AGRICULTURAL PROJECTS
ABSTRACT OF COMMERCIAL BANK’S ROLE IN AGRICULTURAL PROJECT FINANCING
The function of commercial banks in the financing of agricultural projects in Enugu State is a topic so important that there are many people engaged in the job.
It is critical given the role that commercial banks play in financing agricultural projects in Enugu State in order to support the economy.
The researcher was drawn to the creditable function performed by Enugu State’s above-bank economy and the position of agriculture in the development of a virtue and self-sufficient nation.
The instruments with which the central commercial bank in terms of agricultural loans were assessed with credit guidelines that come out every year, the Central Bank of Nigeria defines the minimum proportion of agricultural loan.
Second, the Federal Government of Nigeria and the Central Bank of Nigeria established an agricultural credit guarantee scheme fund, through which farmers who obtain loans under the plan are guaranteed by the CBN. CBN’s liability in the event of default can be up to 75%.
This study attempted to determine whether the decline in agricultural output within the state is related to the lack of credit facility made available to farmers by commercial banks in financing agricultural projects in Enugu State.
Three local government areas were chosen for study due to their size: Enugu North, Enugu East, and South cluster sampling.
Because some of the farmers were illiterate, the interview method was also utilised to obtain data.
The acquired data was utilised to test the two hypotheses for the topic. The hypothesis said that conducting feasibility studies for Agric farmers would have little effect on commercial banks financing agricultural projects.
In testing the aforementioned hypothesis, commercial banks in Enugu State do not respond adequately to farmers in need of financing for agricultural projects.
It was also established that commercial banks do not adequately respond to farmers in Enugu State in terms of financing needed agricultural projects.
Other minor difficulties in the project’s research topic were weighted to percentages.
Finally, commercial banks should be encouraged to support the agricultural sector, and suitable staff growth is advised for effective loan default and diversion supervision in Enugu State.
CHAPTER ONE: THE ROLE OF THE COMMERCIAL BANK IN AGRICULTURAL PROJECT FINANCING
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
There have been seminars, conferences, articles, journals, and various publications by both local national and international organisations on the sharp decline in agricultural production on these various programmes,
they emphasised on the need to promote agricultural production, to reduce the unguided population explosion, which is at a geometrical procession, while agricultural production was only growing in an arithmetical procession.
These seminars also informed people all around the world of the imminent risk faced by Mr. Foresft reserves’ continuing deforestation practises, bush fire over grazing, continuous farming, and other environmental degradation hazards.
They stated that little or no concerted effort is made to replace deforested regions. There was a call for a national aforestation scheme and forest conservation.
In Nigeria, different programmes have been launched to encourage residents to plant at least one tree crop in their area each year (tree planting campaign). All of this would have been unnecessary if agriculture had not played such an important role in the Nigerian economy.
Agriculture is one of the most important sectors in developing and underdeveloped countries. It offers food for the growing population in both rural and urban areas. It also offers raw materials for our allied industries, such as cotton for our textile industry, and so on.
Agriculture employs the majority of the labour force in developing countries, accounting for more than sixty percent (60%) of the total labour force.
Agriculture offers cash to individuals, states, and nations, as well as current farmers and traders. It provides money as income and a means of subsistence to farmers who sell their commodities to the people.
Cashew plantations in states such as Enugu State not only provide raw materials to industries, but also income to the state government and the nation, as well as a means of export,
earning foreign exchange and thus reducing the chronic balance of payment deficit prevalent in these regions in 1969. Agriculture contributed 31% of Sierra Leone’s Gross Domestic Product (GDP).
It provided more than 61% of Nigeria’s GDP in 1957, and it increased to 80% when the petroleum industry began contributing significantly to national income.
Agriculture is currently seen as a restricted field that includes the propagation of seed and crops as well as the keeping of animals for human use.
This does not fully instill all relevant aspects of agriculture. Some agriculture, in addition to animal rearing and propagation, include the sourcing and purchasing of farm inputs such as machinery,
and the selling of its output (agriculture marketing), and the use and provision of credit in agriculture (agricultural financing).
This latter viewpoint is increasingly more widespread, particularly among the literate population. The use and provision of agricultural credit will also help us better understand the role of commercial banks in financing. Enugu State’s agricultural project, its issues and opportunities. This is the project’s crusade.
Need help with a related project topic or New topic? Send Us Your Topic