AN ANALYSIS OF THE RURAL BANKING PROGRAMME IN NIGERIA: A CASE STUDY OF SAMINAKA LOCAL GOVERNMENT AREA OF KADUNA STATE (1977-1989)
AN ANALYSIS OF THE RURAL BANKING PROGRAMME IN NIGERIA: A CASE STUDY OF SAMINAKA LOCAL GOVERNMENT AREA OF KADUNA STATE (1977-1989)
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Date
1991-06
Authors
MALUMFASHI, Aminu Gide
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Abstract
One of the most s e r i o u s problems t h a t impede economic
development of r u r a l economies world wide is t h e g l a r i ng
p r e v a l e n c e of low l e v e l of income and p r o d u c t i v i t y . It
i s r e c o g n i s e d t h a t an e f f i c i e n t banking system, through
p r o v i s i o n of c r e d i t i n the r u r a l a r e a s , is capable of
r a i s i n g the income l e v e l and p r o d u c t i v i t y in t h e r u r al
a r e a s . As such many developing c o u n t r i e s such as I n d o n e s i a,
P h i l i p i n e s , I n d i a and N i g e r i a embarked on the i n t r o d u c t i on
of v a r i o u s Rural Banking Programmes. In N i g e r i a t h e Rural
Banking Programme i n t r o d u c e d in 1977 was aimed at
i n c u l c a t i n g banking h a b i t s among the r u r a l i t e s , m o b i l i s i ng
of d e p o s i t s from and e x t e n d i n g same in t h e forms of l o a ns
and advances to t h e r u r a l i t e s , as well as i n t e g r a t i n g t he
r u r a l i t e s i n t o the fold of o v e r a l l economic l i f e of the
n a t i o n .
The main t h r u s t of t h i s r e s e a r c h t h e r e f o r e is to
examine the e f f i c a c y of t h e Rural Banking Programme through
an e m p i r i c a l assessment of the performance of the N i g e r ia
U n i v e r s a l Bank and A l l i e d Bank of N i g e r i a in m o b i l i s i ng
d e p o s i t s from and e x t e n d i n g same as c r e d i t to the people
i n Saminaka Local Government Area of Kaduna S t a t e . The
t h e s i s also t r i e s t o a s s e s s t h e a t t i t u d e of the people
towards t h e programme, with a view to e s t a b l i s h i n g the
l e v e l of acceptance of the programme in the a r e a ; as well
a s examine t h e impact of r u r a l banks on t h e p r o d u c t i v i ty
o f the r u r a l i t e s.
Our findings have confirmed the hypothesis that
establishing banks in the rural areas will give rise to
the mobilisation of deposits from and credit extension
to the r u r a l i t e s . The study however discovered that the
level of credit extended was continually falling far below
the desired level, which implies a financial drain of the
rural deposits for onward investment outside the rural
areas.
The research findings also confirmed the hypothesis
that rural banks enhance rural productivity. However the
findings revealed that the impact of bank credit on rural
productivity is limited by harvest conditions and the size
of credit f a c i l i t i e s.
Other discovery made in the area of study was that
traditional saving i n s t i t u t i o n s s t i l l survived as an
important source of credit in the area and to some extent
they influence banking habits among the r u r a l i t e s.
The research further concludes that the programme has
failed to remove the fcredit trap1 that the a f f l i c t the
r u r a l i t e s . Some recommendations were also offered for
consideration in any rural credit policies the Government
might decide to embark upon. such recommendations include
among others the need for Government to address the
problems that characterise procurement of c e r t i f i c a t es
of occupancy and t i t l e deeds over landed properties, the
need for Government to intensify i t s policies on People's
Banks, Community Banks, Nigeria Agricultural and
Cooperative Bank, ACGSF and the recently introduced
Agricultural Insurance scheme.
Description
A THESIS SUBMITTED TO THE POST-GRADUATE SCHOOL,
AHMADU BELLO UNIVERSITY, IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF
SCIENCE (ECONOMICS)
DEPARTMENT OF ECONOMICS,
FACULTY OF ARTS AND SOCIAL SCIENCES,
AHMADU BELLO UNIVERSITY, ZARIA.
JUNE, 1991.
Keywords
ANALYSIS,, RURAL BANKING,, PROGRAMME,, NIGERIA, CASE STUDY,, SAMINAKA,, LOCAL GOVERNMENT AREA,, KADUNA STATE (1977-1989)