AN EVALUATION OF THE IMPACT OF THE NIGERIAN AGRICULTURAL AND COOPERATIVE BANK'S DIRECT INVESTMENT LOAN SCHEME IN KATSINA STATE
AN EVALUATION OF THE IMPACT OF THE NIGERIAN AGRICULTURAL AND COOPERATIVE BANK'S DIRECT INVESTMENT LOAN SCHEME IN KATSINA STATE
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Date
1996-09
Authors
IDAH, MUHAMMED LAWAL
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Abstract
The contribution of the agricultural sector to the
Nigeria's macro-economy has been declining in recent
years. This is buttressed by the fact that the demand
for food and raw materials have not kept pace with their
ever increasing demand in the country.
In view of the indespensibility of agriculture to
the growth and development of any nation state, successive
government in Nigeria have employed policies and
programmes aimed at ensuring that agriculture is given
the priority it deserves.
The establishment of the Nigerian Agricultural and
cooperative Bank (N.A.C.B.) Limited, in 1973 and the
Agricultural Credit Guarantee Scheme Fund (A.C.G.S.F.)
by the government in 1977 are the most recent efforts
by the government to deliver agricultural credit to the
innumerable farming population in Nigeria, The Bank
operates both direct and on-lending credit programmes.
Among the direct lending programmes is the Direct
Investment Loan Scheme (D.I.L.S.) which caters for medium
and large scale farmers involved in all the major
agricultural productions.
The impact of the Direct Investment Loan Scheme
operated by NACB was evaluated within Katsina state to
ascertain its1 impact on the use of modern technologies,
farm size and income using a sample of 64 beneficiaries
Selected purposively. The influence of certain socioeconomic
characteristics of the beneficiaries such as
age, educational background, farming experience and
income/expenditure pattern on loan repayment, adoption
of modern technologies and farm income were also
investigated.
Descriptive statistics, correlation anaysis and
analysis of variance were used to investigate the
performance parameters. The findings of the study
revealed that the adoption of modern technologies such
as the use of fertilizers, herbicide, insecticide,
improved Seeds and beneficiaries gross farm income were
positively correlated with the use of the loan.
However, number of tractors, work bulls and farm size
were negatively correlated to the use of the loan.
The impact of credit use on the adoption of modern
technologies and farm income were all found to be
significant at one per cent level of probability; while
the ownership of tractors, work bulls and increase in
the beneficiaries farm size v/ere not significant at
both one and five per cent level of probability. The
loan repayment rate in general, below 50 percent under
the scheme was poor and discouraging considering the
amount disbursed at any given period. The yearly dwindling
recovery rates under the scheme were found to be 29 per
cent, 21 per cent and 20 per cent for the years 1989,
1990 and 1991 respectively.
Description
A THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL,
AHMADU BELLO UNIVERSITY, ZARIA,
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF MASTER OF SCIENCE IN
AGRICULTURAL ECONOMICS
DEPARTMENT OF AGRICULTURAL ECONOMICS AND RURAL
SOCIOLOGY, FACULTY OF AGRICULTURE
AHMADU BELLO UNIVERSITY, ZARIA
Keywords
EVALUATION,, IMPACT,, NIGERIAN,, AGRICULTURAL,, COOPERATIVE BANK,, DIRECT,, INVESTMENT,, LOAN,, SCHEME,, KATSINA STATE