- The Complete Research Material is averagely 50 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,500
Get the complete project »
ABSTRACT
The objective of this study is to find out the impact of agricultural financing on economic growth in Nigeria for the period 1981 to 2014. The study used endogenous components of Agricultural Credit Guarantee Scheme (ACGS) loans to Individual Farmers (LIF), loans to Informal Group (LIG), loans to Co-operative (LCO), and loans to Company (LCY) as explanatory variables to capture agricultural financing. Gross Domestic Product (GDP) at constant prices was used to proxy economic growth. Data for the study were obtained from the Central Bank of Nigeria (CBN) statistical bulletin of various publications, and regression analysis was carried out using IBM SPSS statistics. The t-test coefficients which attests to the significance of each of the independent variables of the study reveals that three of the parameters of the explanatory variables; ACGS loans to Informal Groups (LIG), ACGS loans to Cooperatives (LCO) and ACGS loans to Companies (LCY) counter apriori expectation with negative signs respectively. This implies that they do not have significant impact on economic growth (GDP). On the other hand, the variable of ACGS loans to individual farmers (LIF) as revealed by the regression result proved to have significant impact on economic growth (GDP). This indication is as a result of the variable’s conformity to the aprori expectation with positive sign in the analysis. It was recommended that more loanable funds should be made available to individual farmers (for commercial purposes), as ACGS loans to individual farmers can be used to formulate policies that can impact significantly on economic growth (GDP) in Nigeria. Further recommendation made was that, all economic stakeholders, monetary and regulatory authorities; both at the public and private sector of the economy should combine efforts and formulate policies aimed at improving financial inter-mediation, in the area of providing adequate credit to farmers in Nigeria. This will eventually lead to the achievement of a favourable productive-based economy and viable growth of GDP in the country. The study has contributed to the body of knowledge by providing current information on agricultural financing vis-à-vis Agricultural Credit Guarantee Scheme (ACGS), with an extensive period of 1981 to 2014 (34 years). This study thus has implications for global economy particularly in the area of food production and living standard of nations.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Finance for agricultural development has an increasing role in contemporary times. Finance affects economic growth, stagnation or even decline in any economic system. However, a growing concern has developed over time regarding the need for effective access to credit facilities for farming purposes. The Nigerian government recognizes that finance is an essential tool for promoting agricultural development because the agriculture sector is one of its main sources of sustainability. Access to finance for agriculture is an incentive for increasing the agricultural sector’s performance; it stimulates productive growth, and supports the survival of small and new enterprises. Access to finance increases the average inputs of labour and capital which has positive effects on production output. Irrespective of the benefits that can be derived from financing agriculture, there is an inherent risk of loan defaults amongst farmers, which discourages banks from lending to farmers.
According to Beck and Demirguc-Kunt (2006), specific financing tools can be useful in facilitating greater access to finance. The government of Nigeria, being fully aware of the need for progressive policies, has introduced various initiatives and policies dating back to the 1970s to attract finance to enhance agriculture productions. Such policies have mainly been in the form of specialized agriculture lending, the supply of credit finance by the commercial banks in favour of the agriculture sector and through various programmes. While some of these efforts have failed, the operation of the remaining leaves one to wonder if they are actually achieving their intended objectives as rural poverty is on the increase and yet a large portion of the population is engaged in agricultural activities.
The problem of access to finance for agriculture is not solely as a result of non availability of finance but it is caused by the reluctance of credit providers to give out loans without a certainty of recovering the loan. However, the banks are not to be blamed as they are not charity organizations who disburse money without recourse to repayment; rather they are in business to make profit from their lending operations. Unfortunately, the situation makes farmers a neglected group in the economy because they are not able to provide the adequate collateral needed to secure bank loans. Because of the challenges facing farmers, which have adverse effects on agricultural production, the government thought it fit to act as an intermediary through the Agricultural Credit Guarantee Scheme (ACGS) whereby the government stands as a guarantor for agricultural loans in order to mitigate the risk involved in agricultural financing.
Agriculture contributes immensely to the Nigerian economy in many ways, namely; in the provision of food for the increasing population; supply of adequate raw materials to a growing industrial sector, a major source of employment generation, foreign exchange earnings; and provision of a market for the products of the industrial sector (Food Agricultural Organization, 2006). The agrarian sector has a strong rural base; hence, generation concern for agriculture and rural development. Support for agriculture is widely driven by both government and the public sector, which has established an institutional support in the form of agricultural research, extension, commodity marketing, input supply, and land use legislation to fast-track development of agriculture and rural economic empowerment. Central Bank of Nigeria (2010) asserts that over the years, the inability of this sector to expand and as well contribute meaningfully to the growth of Nigerian economy was due to inadequate financing to improve on the situation; that is, facilitating agricultural credit). Also, the problem of agricultural development in Nigeria indicates that efforts directed at achieving expanded economic base in the rural farmers were frustrated by the scarcity of, and restrictive access to loanable fund. One of the reasons for the decline in the contribution of agriculture to the economy is lack of formal credit policy and paucity of credit institutions which can assist farmers
The role of financial capital as a factor of production to facilitate economic growth and development as well as the need to appropriately channel credit to rural areas for economic development of the poor rural farmers cannot be over emphasized. Credit is viewed as more than just another resource such as labour, land, equipment and raw materials (Rhaji, 2008). According to Shepherd (2002), credit determines access to all the resources on which farmers depend. Since banking cannot be separated from economic development, the banks (especially Deposit Money Banks) in the banking industry have been instrumental to various development schemes of Nigeria over the years. However, their performance in the facilitation of agricultural finance has not been adequately felt in the Nigerian economy; especially in the rural areas (farmers).
Also, in line with Nigeria’s quest for development; the erratic nature of events within the banking industry vis-à-vis agricultural financing is a cause for concern. This uncertain nature of access to credit by farmers in the agricultural sector could result to total loss of confidence in banks by citizens in the sector, as well as growth impediment in the overall economy of Nigeria. Questions are been asked concerning the role of agricultural financing, its contribution to the attainment of agricultural growth and development. It is therefore pertinent to empirically analyze agricultural financing and its economic implication (impact) on Nigeria with the aim of identifying measures to tackle the existing challenges and rebuild the lost glory of the agricultural sector.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
-
SIMILAR AGRICULTURAL EXTENSION FINAL YEAR PROJECT RESEARCH TOPICS
-
1. FACTORS INFLUENCING PARTICIPATION OF FARMERS IN BROWN SUGAR PROCESSING IN SELECTED LOCAL GOVERNMENT AREAS OF KADUNA STATE, NIGERIA
» ABSTRACT The study was conducted to assess farmer‘s participation in brown sugar processing in Makarfi, Soba and Kubau LGAs. A multistage sampli...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
2. THE IMPACT OF AGRICULTURAL DEVELOPMENT ON NIGERIA ECONOMIC GROWTH (1980-2014)
» ABSTRACTIn recent decades, the potential contribution of agriculture to economic growth has been a subject of controversy among development economists...Continue Reading »Item Type & Format: Project Material - Ms Word | 66 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
3. ASSESSMENT OF WEIGHT GAIN BETWEEN INDIGENOUS AND EXOTIC BREED OF BROILER
» TABLE CONTENTS Approval page Dedication Abstract Acknowledgement Table of content CHAPTER ONE INTRODUCTION 1.1 Relevance of project 1.2 Site inspectio...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
4. UTALIZATION OF AGRICULTURAL WASTE GENERATION
» CHAPTER ONE 1.0 INTRODUCTION Agricultural wastes are defined as the residues from the growing and processing of raw agricultural products such as frui...Continue Reading »Item Type & Format: Project Material - Ms Word | 20 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
5. COMPARATIVE DETERMINATION OF PROTEIN CONTENTS OF BREADFRUIT, BROWN BEANS AND SOYBEANS
» CHAPTER ONE 1.0 INTRODUCTION 1.1 Background of the Study Proteins are essential nutrients for the human body (Hermann, 2002). They are one...Continue Reading »Item Type & Format: Project Material - Ms Word | 72 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
6. STRATEGY FOR ENSURING FOOD SECURITY IN TARABA STATE, NIGERIA
» ABSTRACT The study identified strategies for ensuring food security in Taraba State. Specifically, the study was designed to identify the determinants...Continue Reading »Item Type & Format: Project Material - Ms Word | 121 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
7. The role of plants in the treatment of diseases caused by micro-organisms based in the natural products
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUNG OF STUDY 1.1.1 Phyllantus This is a genus of the family Euphorbiaceae. It was first identified in Central and ...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
8. PERCEPTION OF FARMERS ON THE EFFECT OF CLIMATE CHANGE ON FARM PRODUCE
» ABSTRACT The research was carried out based on the perception of farmers of the effect of climate change on farm produce. The aim of the study was to ...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
9. THE PREVALENCE OF POULTRY DISEASE AND ITS MORTALITY RATE
» CHAPTER ONE INTRODUCTION 1.1 Background of the study The Agriculture in Nigeria has remained the largest sector contributing nearly 39% to the gross d...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT
-
10. ANALYSIS OF LIVELIHOOD DIVERSIFICATION STRATEGIES BY FARMING HOUSEHOLDS IN CHIKUN AND ZANGO KATAF LOCAL GOVERNMENT AREAS OF KADUNA STATE, NIGERIA.
» ABSTRACT This study examined livelihood strategies and their contribution to poverty reduction among farming households in Chikun and ZangoKataf Local...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | AGRICULTURAL EXTENSION DEPARTMENT