AN APPRAISAL OF THE ROLE OF CASH DEPOSIT BANKS IN AGRICULTURAL DEVELOPMENT

(A CASE STUDY OF KEYSTONE BANK KADUNA BRANCH

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

There is no doubt among observers that Nigeria as a country is rich in humans and mineral resources (most of which still remain untapped) having an estimate population of about 140 million people. Prior to the advent of the oil boom in 1973/1974 agriculture was the main source if revenue generation of the country's economy, for example the famous land groundnut pyramids, cotton processing machines both in the northern part and cocoa in the southern part of Nigeria. Infact history will go down to let us know the basic fact that during this era Nigeria was resident in product and as the main source of internal trade, Nigeria use to export the surplus to other desirous nations of the world, it was through this sources that Nigeria was able to finance the cost of oil extract with the advent of oil the oil sector eventually emerged as nations main foreign exchange earners amounting to over 90% of other country's foreign exchange and about 89% of the total revenue to the government. Realizing this dangerous phenomena, the government under took intensive campaign in order to enlighten the citizen, the importance of self reliance especially in food production, local musicians chiefs and emirs were not left behind, hence the introduction of festivals at the end of the deserving farmers.

1.2 STATEMENT OF THE PROBLEMS

Agricultural development and financing In Nigeria suffered severe neglect since the discovery of oil in Nigeria, various effort by both the military and civilian regime to being it to its pre oil period have not meet with adequate results the problem of agricultural was compounded as a result of farmer lacking adequate and easy access to credit facilities to help in the development and financing of the agricultural sector of the economy.

1. Farmer do not have collateral to accept the loan with which to be granted by the bank, these stand as an obstacle obstructing the ability of the farmer to get the loan from bank.

2. Government have no support to the farmer on the need to produce cash crops production that will help boost this sector of the economy.

3. Most farmers in Nigeria have not really knowledge about modern agriculture that would enable them have much out put from the farms.

4. Farmers find it very difficult to comply with the demand of the bank due to the high rate of interest on the loan granted to them.

5. Most farmers are not educated, they do not know how to go bout acquiring bank loan and they remain a substance farmer due to lack of capital to boost their- farming activities.

1.3 OBJECTIVE OF THE STUDY

a. The aim of the research is to review and evaluate the performance of the Bank PHB with particular- reference to its function and as it relates to the agricultural sector of the Nigerian economy.

b. To examine how the bank PHB contribute in boosting agricultural activities in Nigeria by granting loan and providing agricultural facilities to farmer who comply with the requirements of the bank.

c. To examine how effective the farmers make use of loan granted to them by the bank PHB.

d. To examine what problems the farmers encounter before securing that loan, and for how long with the loan, last for what rate is the loan to them.

e. To discover what way can agriculture regain it actual position in Nigeria economy.

1.4 RESEARCH HYPOTHESIS

The hypothesis is the intelligent guesses or statement that the researcher formulates to guide research for the solution to a problem: They express relationship between or lack of relationship between variable use as interplay in the research.

The hypothesis are divided into two types

Null hypothesis (Ho) and alternative hypothesis (Hi) are thus:

(Ho) that bank PHB assistance in terms of agricultural development of farmers and individuals involved in agriculture activities.

Hi: that bank PHB assistance in terms of agricultural development is not low compared to the expectation of farmers and individual involved on agricultural activities.

1.5 SIGNIFICANT OF THE STUDY

The significant of this study tends to show how the farmer benefit from loan and other services from the commercial bank as boosting agricultural activities to in Nigeria being adhered to the procedure following by the Nigeria farmers before they are granted to helping hand from bank before they carrying to their agricultural activities effectively in the loan to do with bank PHB.

This study also serve as a reference to other student were in the course of their project relating to agricultural financing can be bale to achieve some help from the study the bank also from which the case study was take can benefit form the research work the problem mentioned and the recommendation written on the real study problem:

The study indeed can boost the moral of the research and even the farmers the banking services are brought more clear to those we don't understand what the services are.

To also whether commercial banks credit sides can serve as an effective strategy for poverty alleviation through mass mobilization for involvement in rural family.

1.6 SCOPE OF THE STUDY

The aim of this study is to review and evaluate the performance bank PHB in aiding agricultural activities in the country's economy period of the study.

1.7 HISTORICAL BACKGROUND OF THE BANK PHB

Bank PHB was formerly known as Habib Bank Nigeria Limited which merged with other banks because of the new Nigeria, the bank is now knows as platinum Habib Bank

The bank was incorporated as a private limited liability company in November 1982. It was granted banking license on 7th March 1983 and commercial operation on May of the same year.

The shareholder rations 40% of Habib Bank Nigeria Limited Pakistan and 60% to Nigerian Investor in 1985. However, in compliance with the Nigerian enterprises promoting act of 1997 the Nigerian partners of the venture relinquish of their share to the Nigeria employees for acquisition under the staff equity participation scheme. In 1988 where the first share terms on the technical agreement lapses the first Nigerian Managing Director' and chief Executive was appointed and most of the management position were indigenized.

AIMS OF THE BANK

a. To provide financial and technical assistance to the public and private organization with the framework of government of Nigeria economic plan and policies.

b. To introduce a fresh banking style in Nigerian and develop a found bank with branch network in various parts of Nigeria.

c. To mobilize deposits by encouraging saving through introduction of efficient banking services and effective advising programmes with these at the back of the minds of the operations the bank went full blast providing a full range of the reliance banking services failure to the needs of all categories of customers.

1.8 DEFINITION OF TERMS

     i.        Scheme: to a plan specifically having certain motives in mind

    ii.        Loan: Lending of money by a lender to borrower to be paid with a certain amount of interest

   iii.        Security: this is what is put down as guarantee by a borrower of loan:

  iv.        Tax warrant: this is written testimony of having paid a compulsory contribution levied on persons individuals, business to the inland revenue department.

   v.        Interest rate: this is a percentage that expresses the relation between the interest for a particular period and the principal.

  vi.        Beneficiary: this lost on the services of individual or group who gains from particular article, credibility etc. thus quality been posited by an individual on group so as to be generally accepted or limited in act of an event.

 vii.        Validity: the possibility that can act or can be carried out.

viii.         Disbursement: this is the act of giving or paying of fund.