Access to credits enhances the adoption of new and more advance technologies that will enable rural households to expand agricultural and non agricultural enterprise which in turn improve their income levels and hence help in reducing the incidence of poverty.
Prior to the discovery of petroleum in Nigeria agriculture used to be the highest foreign exchange resources earner and contribution to gross domestic product GDP has been estimated to about Since Nigeria detached itself from the dominion of British rule in by using politically independent, it has not detached from British in terms of policy formation and articulations.
It should not be considered as an end to research and policy making but as a guide taking into consideration of its limitation. This funding as farmers take long tie to break-even and equally find it very difficult in servicing their loans. While the internal funds arise from net flow as a result of entrepreneurial activities, the external funds arise from Loans extended by micro finance providers, and Equity introduced by new proprietors.
Also, unfavorable investment climate in agricultural sector and delays in the disbursement of approved agricultural credit can also lead to loan diversion.
Even though found in urban areas, these industries are more prominent in the rural areas. The questions to which this research will provide answers to one, is the credit advanced to farmers through microfinance adequate to have a significant impact on agriculture?
The oiling rehabilitating and growling rate of development economically has caught the attention of the researcher and prompted her into making statements, she visualized that the problems acting is a load in the wheel of economic progress of Nigeria.
To the managers of financial institution including orthodox banks.
Most of the condition that exist in the investment loan like demand for collateral, are completely waved to meet the requirement of the small farmers. Credit delivery is perhaps one of the most important roles of microfinance banks, as the loans extended are used to expand existing businesses and in some cases to start new ones.
The study calls for more contribution to the agricultural sector by the banks and proffers solutions to the constraints limiting their role in agricultural development.
This was established by the Government to fill the financial gap in the agricultural sector; specifically, low savings, inadequate investment and lack of entrepreneurial skill are among the various factors that necessitated the establishment of the Nigeria Agricultural and cooperative Bank.
Ketu observed that Microfinance banks have disbursed more than eight hundred million micro-credits to over 13, farmers across the country to empower their productive capacities.
For example, the burden of extended family system can compel a farmer to use a part or all the loans e has just received from a bank to pay for the hospital bill of a mother-in-law. As such it is expected that agricultural output will increase with the increase in funding.
Institutional lenders should as a matter of fact be consulted and their fee4lings incorporated in the credit policy guidelines. It is in search for an efficient agricultural development financial institution that the Nigerian Agricultural cooperative and Rural Development Bank was established.
The loan duration as well as the moratorium period vary depending on the gestation period of the project concerned; and it may be a medium or long term loan. Conclusion The CBN recognised micro finance as an important tool for poverty alleviation through empowering the micro and small entrepreneurs.In Nigeria, credit has been recognised as an essential tool for promoting small and Micro Enterprises (SMEs) About 70 percent of the population are engaged in the informal sector or in agricultural production.
THE ROLE OF MICROFINANCE BANK IN ECONOMIC DEVELOPMENT IN NIGERIA. ABSTRACT.
This project is seriously discussing the function and the role of which the micro financebank played in Economic development in killarney10mile.coms: 7. The study calls for more contribution to the agricultural sector by the banks and proffers solutions to the constraints limiting their role in agricultural development.
Keywords: Credit, role, microfinance banks, agricultural development, problems. Agricultural Financing – The Role of the Nigerian Agriculture and Co-Operative Bank. The Concept of Agricultural Financing – Agriculture in Nigeria has over the years been largely a private indigenous activity inspite of the relatively recent intensification of interest by government in the sector and official efforts to infuse foreign private participation.
the role of microfinance bank credit on agricultural development in nigeria: () ABSTRACT This research work tries to investigate the role of microfinance bank on agricultural development in Nigeria using Nigeria as a case study. THE ROLE OF MICROFINANCE BANKS IN THE DEVELOPMENT OF RURAL COMMUNITIES IN NIGERIA CHAPTER ONE INTRODUCTION BACKGROUND TO THE STUDY The word "micro" literally means small and finance also mean investment or support, therefore microfinance can be defined literally as small investment or support.Download