PEASANT AGRICULTURAL FINANCING IN NIGERIA A CASE STUDY OF THE OPERATIONS OF AGRICULTURAL CREDIT GUARANTEE SCHEME FUND (ACGSF) IN THE IDAH LOCAL GOVERNMENT AREA OF BENUE STATE
PEASANT AGRICULTURAL FINANCING IN NIGERIA A CASE STUDY OF THE OPERATIONS OF AGRICULTURAL CREDIT GUARANTEE SCHEME FUND (ACGSF) IN THE IDAH LOCAL GOVERNMENT AREA OF BENUE STATE
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Date
1991-11
Authors
OKPANACHI, MICHAEL A.
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Abstract
Nigeria has over the years instituted policies and scheme
aimed at making credit available to the peasant farmers. One of
such policies is the directive to Commercial Banks to give a
specified percentage of their loans to Agriculture. The
Commercial Banks in carrying out this directive often not only
fall short of Government prescribed percentage, but also deny
the peasant farmers access to their credit due to their
inability to meet up with the banks' demands especially the
colateral requirement. It was to assist the peasants in
obtaining loans from the commercial banks that the government
thought it was necessary to establish special scheme which
can give some relief to the commercial banks by guaranteeing a
part of the loans given by the banks. One of such schemes is
the Agricultural Credit Guarantee scheme (ACGS).
This study was designed to find out the operations of the
ACGSF in Idah Local Government Area of Kogi State.
Two seperate questionnaires for the farmers and the
Commercial Banks were designed and administered in the Local
Government. The following findings were made;
i) Informal Financial sources of Credit still dominate the
rural credit environment despite the operations of the
Scheme in the Area.
ii) The Commercial Banks do not meet up with the required
loon percentage to the farmers despite the government
guarantee level,
iii) Even where the banks granted loans under the scheme, the
peasants for who the scheme was designed never benefited
much.
Some factors were discovered to be responsible for the
apparent failure of the scheme in the area. The peasant farmer
do not repay loans promptly; the commercial banks, on their own
part, fail to extend adequate credit to the peasants due to
some reasons. Reasons which include none provision of
acceptable securities by the peasant farmers.
Finally, the Central Bank default in paying claims by
the Commercial Banks also contributes to the malfunctoning of
the scheme. Proper functioning of the different parties in
the scheme was recommended by the study for the successful
implementation of the scheme for the benefit of the peasants
and the nation as a whole.
Description
A THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL,
AHMADU BELLO UNIVERSITY, IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF
SCIENCE (ECONOMICS)
Keywords
PEASANT,, AGRICULTURAL,, FINANCING,, NIGERIA, CASE STUDY,, OPERATIONS,, CREDIT,, GUARANTEE,, SCHEME,, FUND,, IDAH,, LOCAL GOVERNMENT AREA,, BENUE STATE