DEVELOPMENT OF RURAL COMMERCIAL BANKING IN NIGERIA "AN EVALUATION"
DEVELOPMENT OF RURAL COMMERCIAL BANKING IN NIGERIA "AN EVALUATION"
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Date
1987-09
Authors
ONYEWUOTU, RAPHAEL CHIBUZO
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Abstract
Commercial banks as financial institutions can
and do contribute to economic growth and development
of a nation. In Nigeria today, there is growing
emphasis on the need for rapid development of the
agricultural sector of the economy in order to break
the vicious circle of poverty that is prevalent in the
rural sector. This need can only be met if there is
among their things broader dispersal of bank offices
i > i
for smooth integration of urban and rural development.
The objective of this study therefore is to
evaluate the rural banking programme since its
inception in 1976. An attempt also has been made to
analyze the problems and shortcomings of the overall
effectiveness of the scheme. The methodology employed
in our study was mainly descriptive. We held oral
interviews with some bank executives, the purpose of
such interviews was to find out some vital or relevant
information, since no questionnaires were administered.
Two phases of the programer have been complete
with the banks recording 88 percent success rate in
terms of number of branches opened. Based on the
objectives of the economy and the specific goals of
the policy instrument. The criteria for branch
allocation under the two completed phases have been
discovered to be idealistic or political and not
strategic in meeting target goals.
The study also shows that apart from inculcating
banking habits into not more than I4.O percent of the
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under-banked population, the developmental strategy
which should be the primary objective has been
neglected due to the banks unsavory attitudes.
Further findings show that the banks reactionary
attitude in rural development was based on exigencies
and problems inherent in investing in areas with
divergent unsecured risks. Besides, inadequate public
utilities and lack of credit guarantee scheme have also
been found major draw-backs why banks reject ;the rural
areas.
However, in the course of this study, we
encountered the following limitations: First and
foremost was the constraint due to inadequate financing.
The time constraint and the uncooperative,
attitudes of some people interviewed also affected the
work considerably.
In view of these findings, we have recommended
the following:
(a) Active government participation in regulatory
aspects of the rural banking programme0
(b) We advocate intensive competition among the
commercial banks in the provision of their
services.
(c) That Government should embark on extensive
campaign strategy to foster the program-me.
All the same, the study though not exhaustive, has
tried to bring out some important aspects of the
subject matter.
Description
PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE -
REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION OF THE DEPARTMENT OF BUSINESS
ADMINISTRATION, AHMADU BELLO UNIVERSITY, ZARIA.
SEPTEMBER, 1987
Keywords
DEVELOPMENT,, RURAL,, COMMERCIAL,, BANKING,, BANKING,, EVALUATION"