DEVELOPMENT OF RURAL COMMERCIAL BANKING IN NIGERIA “AN EVALUATION”

DEVELOPMENT OF RURAL COMMERCIAL BANKING IN NIGERIA “AN EVALUATION”

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 – viii – 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.

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

DEVELOPMENT OF RURAL COMMERCIAL BANKING IN NIGERIA “AN EVALUATION”