APPRAISAL OF THE PERFORMANCE OF AGRICULTURAL CREDIT GUARANTEE SCHEME: A CASE STUDY OF SOME SELECTED COMMERCIAL BANKS
APPRAISAL OF THE PERFORMANCE OF AGRICULTURAL CREDIT GUARANTEE SCHEME: A CASE STUDY OF SOME SELECTED COMMERCIAL BANKS
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Date
2000-09
Authors
SAEED, IDRIS I.
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Abstract
ABSTRACT
Over the years the Nigerian peasant subsistence farmers who constitute over 90% of the farming
population, and who live in rural areas, have been having difficulties obtaining bank loans for the
purpose of agricultural development. This is because of the high risks involved in that venture.
Agricultural Credit Guarantee Scheme (ACGS) which was established to disperse the risk
elements of such credits and therefore enhance credit extension to these farmers, has started
showing signs of failure as a result of poor repayment rate and default claim settlement.
An insight into the activities of the Scheme was gained through reviewing literatures on the
Scheme and sampling of opinions and experiences of the participants in the Scheme. The data so
gathered were analysed. It was found that failure in the Scheme was more inclined to the level
of efficiency with which a lending bank discharges its functions (banking activities) rather than
the inaction of the managing agent. And also that the maximum amount loanable without
tangible collateral, is inadequate in the face of rising costs of these loans.
For the Scheme to be more effective and efficient, the agricultural credit departments of both the
Central Bank of Nigeria and the lending banks should discharge their duties with more diligence
and commitment. Cumbersome procedures and lengthy documentation should be eased up so
that delays could be seriously minimized. And also maximum amount loanable without tangible
collateral should be raised to N 10,000 or N 15,000.
Description
DEPARTMENT OF BUSINESS ADMINISTRATION
FACULTY OF ADMINISTRATION
AIIMADU BELLO UNIVERSITY, ZARIA
NIGERIA.
Keywords
APPRAISAL,, PERFORMANCE,, AGRICULTURAL,, CREDIT,, GUARANTEE,, SCHEME,, CASE,, STUDY,, SELECTED,, COMMERCIAL,, BANKS.