The role of commercial banks in agricultural development in nigeria: 1986-2010

Thesis Overview

<p> </p><p>1.0 INTRODUCTION<br>1.1 BACKGROUND OF THE STUDY<br>Agriculture involves the cultivation of land, raising and rearing of<br>animals and raw materials for industries. It involves cropping live stock,<br>forestry, and fishing, processing and marketing of these agricultural<br>products.<br>Food is man‟s most important basic need before those of clothing and<br>shelter. It is provision therefore, has been the major concern of man from the<br>past years since it is both an essential condition and sinequanon to life.<br>Agriculture being the provider of food can then be concluded as the life wire<br>of any nation and thus be concluded as the life wire of any nation and thus its<br>importance cannot be over emphasized.<br>When Nigeria gained their political Independence in 1960, agriculture<br>was dominant sector of the economy. It contributed over 65% of the<br>country‟s Gross Domestic Product (GDP) and provided the bulk of the<br>foreign exchange earnings through the foreign exports of the cash crops. The<br>sector catered adequately for nearly all food requirement and raw materials<br>for industry in the country. Agriculture performs a number of functions in<br>an economy such as:<br>1.2 STATEMENT OF THE PROBLEM<br>Nigerian agriculture is confronted with many problems which ranged<br>from low yield to low productivity and inadequate facilities among others.<br>Oyatooye (1981) was on the same path when he noted that the problem of<br>agriculture in Nigeria can be discussed under four headings.<br>I. Technology<br>II. Marketing<br>III. Finance and Government<br>Such problems include problems of providing adequate extension<br>services, agricultural inputs, storage facilities, agricultural credit, marketing<br>information and efficient marketing arrangement, infrastructures such as<br>feeder roads efficient power supply and institutional reforms where<br>necessary. William (1981) pointed out that, the major problems facing<br>Nigeria today are the needs to transform her agricultural industry from one<br>traditional input with low productivity to one which enables her to meet the<br>rising expectations of her people and to correct the social and economic<br>imbalance created by lopsided development between her rural and urban<br>areas which have encouraged the youths and others to migrate from rural<br>areas.<br>His statement is a valid one as when it was made from we have seen, the<br>Nigerian economy is characterized by a high degree of rural to urban drift in<br>search of greener pastures leaving the farm land to old aged men who are<br>unable to provide all the food requirements of the growing population. This<br>is responsible of the growing population. This is responsible for the high cost<br>of food as there is pressure on the little produced.</p><div><div></div></div><br> <br><p></p>