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

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.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

APPRAISAL OF THE PERFORMANCE OF AGRICULTURAL CREDIT GUARANTEE SCHEME: A CASE STUDY OF SOME SELECTED COMMERCIAL BANKS