AN
APPRAISAL OF THE ROLE OF CASH DEPOSIT BANKS IN AGRICULTURAL DEVELOPMENT
(A CASE STUDY OF KEYSTONE BANK
KADUNA BRANCH
CHAPTER ONE
1.1 BACKGROUND OF THE
STUDY
There
is no doubt among observers that Nigeria as a country is rich in humans and
mineral resources (most of which still remain untapped) having an estimate
population of about 140 million people. Prior to the advent of the oil boom in
1973/1974 agriculture was the main source if revenue generation of the
country’s economy, for example the famous land groundnut pyramids, cotton
processing machines both in the northern part and cocoa in the southern part of
Nigeria. Infact history will go down to let us know the basic fact that during
this era Nigeria was resident in product and as the main source of internal trade,
Nigeria use to export the surplus to other desirous nations of the world, it
was through this sources that Nigeria was able to finance the cost of oil
extract with the advent of oil the oil sector eventually emerged as nations
main foreign exchange earners amounting to over 90% of other country’s foreign
exchange and about 89% of the total revenue to the government. Realizing this
dangerous phenomena, the government under took intensive campaign in order to
enlighten the citizen, the importance of self reliance especially in food
production, local musicians chiefs and emirs were not left behind, hence the
introduction of festivals at the end of the deserving farmers.
1.2 STATEMENT OF THE
PROBLEMS
Agricultural
development and financing In Nigeria suffered severe neglect since the
discovery of oil in Nigeria, various effort by both the military and civilian
regime to being it to its pre oil period have not meet with adequate results
the problem of agricultural was compounded as a result of farmer lacking
adequate and easy access to credit facilities to help in the development and
financing of the agricultural sector of the economy.
1. Farmer do not have collateral to accept the loan with
which to be granted by the bank, these stand as an obstacle obstructing the
ability of the farmer to get the loan from bank.
2. Government have no support to the farmer on the need
to produce cash crops production that will help boost this sector of the
economy.
3. Most farmers in Nigeria have not really knowledge
about modern agriculture that would enable them have much out put from the
farms.
4. Farmers find it very difficult to comply with the
demand of the bank due to the high rate of interest on the loan granted to them.
5. Most farmers are not educated, they do not know how to
go bout acquiring bank loan and they remain a substance farmer due to lack of
capital to boost their- farming activities.
1.3 OBJECTIVE OF THE
STUDY
a.
The aim of the research is to review and evaluate the performance of the Bank
PHB with particular- reference to its function and as it relates to the
agricultural sector of the Nigerian economy.
b.
To examine how the bank PHB contribute in boosting agricultural activities in
Nigeria by granting loan and providing agricultural facilities to farmer who
comply with the requirements of the bank.
c.
To examine how effective the farmers make use of loan granted to them by the
bank PHB.
d.
To examine what problems the farmers encounter before securing that loan, and
for how long with the loan, last for what rate is the loan to them.
e.
To discover what way can agriculture regain it actual position in Nigeria
economy.
1.4 RESEARCH
HYPOTHESIS
The
hypothesis is the intelligent guesses or statement that the researcher
formulates to guide research for the solution to a problem: They express
relationship between or lack of relationship between variable use as interplay
in the research.
The
hypothesis are divided into two types
Null
hypothesis (Ho) and alternative hypothesis (Hi) are thus:
(Ho)
that bank PHB assistance in terms of agricultural development of farmers and
individuals involved in agriculture activities.
Hi:
that bank PHB assistance in terms of agricultural development is not low
compared to the expectation of farmers and individual involved on agricultural
activities.
1.5 SIGNIFICANT OF
THE STUDY
The
significant of this study tends to show how the farmer benefit from loan and
other services from the commercial bank as boosting agricultural activities to
in Nigeria being adhered to the procedure following by the Nigeria farmers
before they are granted to helping hand from bank before they carrying to their
agricultural activities effectively in the loan to do with bank PHB.
This
study also serve as a reference to other student were in the course of their
project relating to agricultural financing can be bale to achieve some help from
the study the bank also from which the case study was take can benefit form the
research work the problem mentioned and the recommendation written on the real
study problem:
The
study indeed can boost the moral of the research and even the farmers the
banking services are brought more clear to those we don’t understand what the
services are.
To
also whether commercial banks credit sides can serve as an effective strategy
for poverty alleviation through mass mobilization for involvement in rural
family.
1.6 SCOPE OF THE
STUDY
The
aim of this study is to review and evaluate the performance bank PHB in aiding
agricultural activities in the country’s economy period of the study.
1.7 HISTORICAL
BACKGROUND OF THE BANK PHB
Bank
PHB was formerly known as Habib Bank Nigeria Limited which merged with other
banks because of the new Nigeria, the bank is now knows as platinum Habib Bank
The
bank was incorporated as a private limited liability company in November 1982.
It was granted banking license on 7th March 1983 and commercial operation on May
of the same year.
The
shareholder rations 40% of Habib Bank Nigeria Limited Pakistan and 60% to
Nigerian Investor in 1985. However, in compliance with the Nigerian enterprises
promoting act of 1997 the Nigerian partners of the venture relinquish of their
share to the Nigeria employees for acquisition under the staff equity
participation scheme. In 1988 where the first share terms on the technical
agreement lapses the first Nigerian Managing Director’ and chief Executive was
appointed and most of the management position were indigenized.
AIMS OF THE BANK
a.
To provide financial and technical assistance to the public and private
organization with the framework of government of Nigeria economic plan and
policies.
b.
To introduce a fresh banking style in Nigerian and develop a found bank with
branch network in various parts of Nigeria.
c.
To mobilize deposits by encouraging saving through introduction of efficient
banking services and effective advising programmes with these at the back of
the minds of the operations the bank went full blast providing a full range of
the reliance banking services failure to the needs of all categories of
customers.
1.8 DEFINITION OF
TERMS
i.
Scheme:
to a plan specifically having certain motives in mind
ii.
Loan:
Lending of money by a lender to borrower to be paid with a certain amount of
interest
iii.
Security:
this is what is put down as guarantee by a borrower of loan:
iv.
Tax
warrant: this is written testimony of having paid a
compulsory contribution levied on persons individuals, business to the inland
revenue department.
v.
Interest
rate: this is a percentage that expresses the
relation between the interest for a particular period and the principal.
vi.
Beneficiary:
this lost on the services of individual or group who gains from particular
article, credibility etc. thus quality been posited by an individual on group
so as to be generally accepted or limited in act of an event.
vii.
Validity:
the possibility that can act or can be carried out.
viii.
Disbursement:
this is the act of giving or paying of fund.