ABSTRACT
Based on historical evidence,
the highest contribution to the Nigeria Economy was Agriculture at present,
Agricultural Production has been deducing drastically, especially since the oil
boom. This was also contributed to the neglect on this sector due to the
problem the Agriculturist encountered.
Nigeria Agriculture is characterized by the
pre-prudence of small scale farming which yields the bulk of the total
production. The small scale farmers have been the bedrock of our Agriculture
economy and is characterized by illiteracy, small size of farm holding, little
capital, unclear titled to land, low productivity and little savings. The
muddle class farmers has been increasing in absolute number but is significant
in terms of ration. He has large capital, he is more educated and has probably
succeeded in his career before retiring into farming. He has better access to credit
and information and because this class of farmers were still
insignificant in terms of contribution to Agricultural production. It is
university and misleading to base Agriculture policy formation on it.
The government in its various tiers is another of Agriculture, in Nigeria. She
gets involved into physical farming as well as provision of basic
infrastructure and inputs. Examples are: Agriculture Development Project,
National Accelerated Food Production Programme, Poverty Alleviation Programme,
etc. The plethora of this programme is but a pointer to the confusion
regarding the role of government in Agriculture.
Apparently, government has been inefficient and ineffective both in physical
farming and in a way of encouraging agricultural finance appears to have
increased the volume of Central Bank of Nigeria loans in this direction but it
has not had a corresponding impact on the economy. A need to reappraise and
indirect agricultural policies and strategy towards the small scale farmer is
suggested as one of the basic solution. To achieve and fulfill the motive of
this study, the researcher tried as much as she could to use both primary and
secondary data.
TABLE OF CONTENT
CHAPTER ONE:
1.1 Background
of the study
1.2 Statement
of problem
1.3 Objective
of the Study
1.4 Research
Questions
1.5 Research
Hypothesis
1.6 Significance
of the Study
1.7 Scope,
Limitation and Delimitations
1.8 Definition
of Terms
Reference
CHAPTER
TWO:
2.0
Review Of Related Literature
2.1
Nigerian Agricultural Insurance Company’s
Relationship with any other
Establishment
2.2
Accelerating with cheaper food production
2.3 Reasons for low agriculture
output
2.4 Banking industry and development of
agriculture
2.5 Role of agricultural credit
2.6 Reasons for low participations by
farmers in Nigerian agriculture
2.7 Role of agricultural insurance company
2.8 Insurance and Agriculture
2.9 Summary of the Reviewed
Literature
Reference
CHAPTER THREE
3.0
Research design and methodology
3.1
Research design
3.2
Area of study
3.3
Population
3.4
Sample and Sampling
Techniques
3.5
Instrument of Data
Collection
3.6
Methods of Data presentation
3.7
Methods of Data Analysis
Reference
CHAPTER FOUR
4.0
Presentation and Analysis of
data
4.1
Data presentation
4.2
Testing the Hypothesis
Reference
CHAPTER FIVE
5.0
Findings, Recommendation and
Conclusions
5.1
Findings
5.2
Recommendations
5.3
Conclusions
Bibliography
CHAPTER ONE
1.1 BACKGROUND
OF THE STUDY
Agriculture is defined as the
cultivation of land for the purpose of producing food for man, feed for animal
and fiber or raw material for our industries. It is includes the
processing and marketing of crops”. In order words, it embraces all activities
involved in the primary and controlled production of plant and animals, such as
fishing, forestry, farming, livestock, poultry and small scale industries
connected with processing of agricultural products.
Agriculture is one
of Nigeria’s largest industry and it does only provide the food and cash crops
which are consumed locally and exported to earn foreign exchange, but also
employs more than 75% of the entire population, thereby generating revenue to
individuals and government.
This goes a long
way to increase the ratio of our Gross National Product (GNP).
It is important to
note that the present economic predicament of Nigeria could be credited to the
drastic fall in the contributions of the agricultural sector. The contribution
of agricultural sector to the national economy before independence and the
years period after, cannot be emphasized. During this period of
per-independence and shortly after words, agricultural products dominated in
Nigeria export trade, but today, these products (GNP). Agriculture contribution
in the early years of independence (1963 – 1964) was 61.5% throughout the 60s.
In the 1970s, it declined miserably by 2.3%. The decline may be
attributed to the domination of the nations exports by oil since 1970 and
the oil sector accounted for 57:6% of total export income in 1970 and this
share rose steadily, attaining an overwhelming proportion of 98% in 1981.
This oil lead to
absolute neglect in the both GDP (Gross Domestic Product) and export earnings
which has been the major factor dictating the need to reactivate out
agricultural products. The need for the re-activation and in effort to revamp
this sector has been the reason years to it. It rose from 6% in 1970s to 22% in
1984. This increase acts as incentive and motivation to farmers, but these
farmers while engaging in these agricultural ventures are exposed to a lot of
problems like disease and pest attacks, fire destructions, industries
pollution, machinery breakdown and other problems.
To these problems,
the farmers need some aids in solving or minimizing them.
Loan, through the Central Bank
of Nigeria seems to be one of the solutions to these problems. To deal more
effectively with these risks that the farmers are exposed and to encourage the
growth of Agriculture Contribution towards our economy; agriculture insurance
was introduced and launched in Nigeria on 15th December
1987, by the Federal Government of Nigeria. The scheme at it’s launched in
Nigeria in the year has a budgetary allocation of N4.5m, N6.5m was used to set
initial expenses and N35m, the initial contribution to the reserve fund. The
main farming activities being covered under this scheme are crops (maize and
rice) livestock (poultry and cattle). Tangible fixed assets like farm buildings
and farmers, employees and dependants.
Following the
formal launching, the Nigeria Agriculture insurance Company was established by
the Federal Government of Nigeria (Central Bank of Nigeria i.e their agent) to
enhance and oversee the operation of the scheme and to underwrite the loans
given to farmers by the Central Bank of Nigeria. The scheme was designed to
benefit the small, medium and large scale farmers, either in group or as
individual producers.
In order to make
the scheme a success, the Federal Government of Nigeria through the Central
Bank of Nigeria subsidized the premium rate to 59% to enable subsistence
farmers to participate in the scheme. This will definitely boost food
production and surplus for exportation upon the efforts of the Central Bank of
Nigeria to make this scheme a success, it has not been following effectively
and efficient as expected, hence, this is an indicator that there has been some
elements of problems debilitating it from functioning positively.
1.2 STATEMENT
OF PROBLEM
It is self incident that
agriculture has been losing it’s portal role in Nigeria economy irrespective of
the various programmes that have been designed to resuscitated it.
Finance has been traced to the major handicap to the typical Nigeria farmer,
lack of modern farming storage facilities, making and distribution system..
Then the central Bank of Nigeria the apex bank has been mandated by the federal
Government of Nigeria is find a solution to these problem.
Consequently, the central Bank of Nigeria through its agencies grant credit for
the purpose of agriculture. But was faced with the following problems:
- Lack of general awareness.
- Inadequate public enlightment
- Mismanagement
- Lack of co-operation from the lending house
To minimize the high rate of
default that characterized the agricultural insurance company was introduced.
- Public’ skeptical attitude
toward insurance
- Lack of liquidity cash to pay
the premium .
The problem is that the impact
of agriculture on the economy continuously dwindle irrespective of the various
efforts of the central Bank of Nigeria including the recent of introduction of
Nigeria Agricultural insurance company
1.3 OBJECTIVE
OF THE STUDY.
The major objective of this
study is to determine appraise and identify the performance of the central Bank
of Nigeria and it’ agencies including the Nigeria Agricultural Insurance
company and the performance of the central of Nigeria and Agricultural
financing.
This involves.
- To determine the exact
efforts of the Central Bank of
Nigeria in agricultural
financing.
- To identify the Central Bank
of Nigeria agencies in
relation to Nigeria
agriculture.
-To identify the problems
associated with the implementation of these agencies and suggest solution so as
to improve agricultural financing
-To appraise the pre and post
Nigeria Agricultural Insurance company and the performance of the central Bank
of Nigeria in agricultural financing.
- To determine why
agricultural pivotal position in the
economy is still from being recovered with a view to
recombining possible solutions.
These objective are very important because agriculture is the bedrock of any
sound-economy more especially in Nigeria context because of her natural
endowments in agriculture. I believe that this is why various government have
always come up with agricultural slogan as the key to their major
objectives such slogan belonging to different past government includes –
operation feed the Nation Green Revolution.
1.4 RESEARCH QUESTIONS
(1)
To what extent is the establishment of Nigeria Agricultural Insurance Company
(NAIC) helped in increasing Agricultural Productivity in Enugu State.
(2)
To what extent do farmer benefit from (NAIC) in the event of natural hazard
which resulted to financial loss.
(3)
How does the establishment of NAIC in Enugu State enhance the level of lending
of agricultural loans to the farmers by financial institution.
(4)
To what extent has the establishment of NAIC helped in evenly distribution of
government financial relief packages to farmers who sustain financial loss from
natural disaster?
1.5 RESEARCH HYPOTHESES
The role of Central Bank of Nigeria in
agricultural finance development will not be complete without testing the
following hypotheses:
1. Ho: There
is no significant relationship between the mean perception of NAIC staff of
Enugu State office and farmers in Enugu on the improvement of agricultural
productivity in Enugu State since the establishment of NAIC.
Hi: There
is significant relationship between the mean perception of NAIC staff of Enugu
State office and farmers in Enugu on the improvement of agricultural
productivity in Enugu State since the establishment of NAIC.
2. Ho: There
is no significant difference between the NAIC staff of Enugu State office and
farmers in Enugu State view on the benefit farmer derive from NAIC in the event
of nature harzards on their farm set-up.
Hi: There
is significant difference between the NAIC staff of Enugu State office and
farmers in Enugu State view on the benefit farmers derive from NAIC in the
event of Natural harzard on their farm set-up.
3. Ho: There
is no significant difference between the NAIC staff of Enugu State office and
farmers in Enugu State office and farmers in Enugu State enhance the level of
lending of Agricultural loans to farmers by financial institution.
Hi:
There is no significant difference
between the NAIC staff of Enugu State office and farmers in Enugu State enhance
the level of lending of agricultural loans to farmers by financial institution.
Hi:
There is significant difference
between the NAIC staff of Enugu state office and farmers in Enugu State
enhance the level of lending of Agricultural loans to farmers by financial
institution.
4. Ho: There
is no significant difference between the NAIC staff of Enugu State office and
farmers in Enugu State helped in evenly distribution of financial relief
packages to farmer who sustain has from natural disaster.
Hi: There
is significant difference between the NAIC staff of Enugu State office and
farmers in Enugu State `helped in evenly distribution of financial relief
package to farmers who sustain has from natural disaster.
1.6 SIGNIFICANCE OF THE STUDY
Unless the cause of a problem is found, any attempt at solving the problem
would likely be efforts in futility. But when the basic causes of a problem
situation are identified, solutions would be easily found.
The contribution of agriculture in the nations economy in providing basic raw
material for industries, food for the teeming population and to the balance of
trade and payment cannot be over-emphasized.
Moreso, it creates employment opportunities acts as a source of revenue to the
government and private sector of the economy.
So, in this context, since agricultural cannot be ignored, there is therefore a
need to undertake this descriptive research in order to determine the true
nature of it’s problems moreso in the light of agricultural financing.
The research work when complete will be of use to the following;
- The
farmers and agriculturists
- Insurance
companies (agricultural insurance companies)
- Students
in the department of banking and insurance.
- The
Central Bank of Nigeria (Federal government)
- Subsequent
researchers in the topics
1.8 DEFINITION OF TERMS
DEVELOPMENT
=> This
means a process of sustained
increased in both per capital
income and total income accompanied by structural modification of the socio
economic and political environment.
FINANCIAL INSTITUTION=>These are
institutions, either
private or public which to
channel loanable funds from savers to borrowers.
AGRICULTURE=> In this research paper, the word
“Agriculture” is used in its common parlance which includes production,
research and training in fields of crops, forestory fishing and livestock.
SMALL SCALE FARMERS=>this is the small size of farm holding; literacy and
ignorance; little to capital, lack of tangible assist and clear title to land;
how level of productivity; low income; generally vural milieu.
FARMERS=> The term farmer” have been used in a
generic sence to cover the spectrum of agricultural production.
Department | Banking and Finance |
Project ID Code | BFN0030 |
Chapters | 5 Chapters |
No of Pages | 52 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |