THE EFFECTS OF RURAL BANKING ON DEVELOPMENT IN BORNO STATE
THE EFFECTS OF RURAL BANKING ON DEVELOPMENT IN BORNO STATE
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Date
1988-06
Authors
GAVS, KATlYA
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Abstract
The rural sector which dominates the Nigerian economy
has been stagnant of declining over the years. One of the
major factors that account for the insalubrity is poor
capital market which, largely inhibits the development
efforts of rural entrepreneurs. One of the efforts made to
overcome this obstacle by the Federal Government is the
establishment of Rural Banking Scheme through the Central
Bank of Nigeria in 1977.
To bridge the gap between demand and supply for rural
credit, the Rural Banking Scheme was saddled with the role
of harnessing the financial resources of the rural sector
ana channel same to productive ventures of the sector.
Using data obtained from constructed questionnaires
responded to by bank branch managers, farmers and small
scale entrepreneurs in rural areas of Borno State, this
study examined the extent to which Rural Banking Scheme
has achieved its set objectives. The main objective is
mobilization of financial resources and the provision of
same to the rural economy by the rural banks.
The findings of the study show that Rural Banking
Scheme has not been very effective in achieving its main
objective of developing the rural economy. It is discovered
that the rural banks only transmit the funds generated
within the rural cector to the urban economy. Another
major finding of the study reveals that the little credits
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made available to the rural producers, tended to be shared
among those with substantial landed property and other
securities. Other major findings of the study reveal
that bank loan defaults are more of urban dwellers than
rural and rural entrepreneurs appreciate the need for
another credit source.
Finally, a multi-agency approach to rural banking is
recommended because of the wide gap between demand and
supply of rural lending facilities in the study area. To
develop the rural economy, the present Rural Banking
Scheme should be more effective, and in addition, Rural
Community Banks (RCBs) model, with a potential of meeting
the credit needs and aspirations of the rural economy, is
suggested. In order to make the above recommendations
more practicable for rural development, the nation's
monetary policy and other legal clauses should be reviewed
Description
A THESIS SUBMITTED TO THE POST-GRADUATE SCHOOL, AHMADU
BELLO UNIVERSITY, FOR THE DEGREE OF MASTER OF SCIENCE
(ECONOMICS).
DEPARTMENT OF ECONOMICS
AHMADU BELLO UNIVERSITY, ZARIA.
JUNE 1988
Keywords
EFFECTS,, RURAL,, BANKING,, DEVELOPMENT,, BORNO STATE