examines an evaluation of the impact of Ifelodun Microfinance bank Ikirun on
agricultural development in Ifelodun Local Government. Introduction, purpose
and limitation of the study etc were examined. I deals with development of
Agricultural Financing in Nigeria
objective, scope, literature review, the role of agricultural in economic
development and solution to the problem facing them. That is research
methodology and process of data collection were examined. Exposed the financing
data analysis and data collecting and also analyzing of response from
respondent from Microfinance bank in which were critically review. Conclusion
base on the summary of findings and recommendation to the general public at
TABLE OF CONTENTS
Title page i
Table of content
1.1 Background of the study
1.2 Statement of the problem
1.3 Research hypothesis 2
1.4 The purpose of the study
1.5 Scope of the study
1.6 Limitation of the study
1.7 The significant of the study
1..8 Definition of terms
1.9 Historical background of Ifelodun
Microfinance Bank Ikirun 3
1.10 Organizational chart of Ifelodun
Microfinance Bank, Ikirun. 5
2.0 Literature review 6
2.1 Conceptual framework 6
2.2 The roles of Agricultural in economic
2.3 Sources and types of finance available
for agricultural based industry 8 – 9
2.4 Problems and solutions facing banks in
Agriculture finance 9
2.5 Development of agricultural financing in Nigeria
2.6 Roles of Central Bank of Nigeria
in finding agricultural development 12
2.7 The roles of Microfinance Bank in financial
agricultural development 13
2.8 Major schemes and programme 13
3.0 Research methodology 14
3.1 Research design 14
3.2 Questionnaire design 14
3.3 Type of data used 14
3.4 Procedure for collection of data 14
3.5 Instrument used in data collection 15
3.6 Sources of data collection 15
3.7 Method of data analysis 15
4.0 Date presentation and analysis 16
4.1 Literary presentation 16 - 19
4.2 Testing of hypothesis 19
4.3 Summary of findings
5.0 Summary, Conclusion and Recommendation 22
5.1 Summary 22
5.2 Conclusion 22
5.3 Recommendations 23
OF THE STUDY
is a country that is enclosed by nature with all the resources that facilitate
Agricultural Development. These include Vast Kind of areas, rich soil, plenty
of rainfall and hardworking peoples. Nature has been generous to this country.
So when Nigeria attained Independence in 1960,
agriculture was the dominant sector of the economy. It constituted over 65% of
the country’s gross domestic product (GP) and provided the bulk of foreign
exchange earning through the export of cash crops. There is therefore little or
no wonder that pivot of discovery of oil. This country has been a great
exporter of farm produce as groundnut, cocoa, palm cannel and oil, cotton and
overall agriculture deteriorated creating a wide gap between supply and demand
for food and revenue from agricultural export demanded. So government was faced
with mouthing food import bills at the same time, industries, increasingly
restore to importing agricultural raw materials. In order to tackle some
problems facing the agricultural sector, the federal government and central
bank of Nigeria (CBN) put in place certain policies no respect agricultural
The establishment of specialized financial institution
likes The Nigeria Agricultural and Micro Finance Bank (NAMB), Peoples bank
Credit and control policy under the policy of
commercial merchant Bank of Nigeria (CBN) through monetary policy circular to
lend a certain percentage of their loan portfolio to farmers and agro- based
Their establishment of special scheme like agricultural
credit guarantees scheme (ACGS), the Nigeria agricultural insurance,
company (NAIC), Small and Medium Scale Enterprises (SME), were established to
supplement the activities of specialized financial institutions in credit
delivery. Since finance is a key element for modernization of agricultural and
agro- allied business, because necessary to study the contribution of micro
finance banks on Agricultural Development with special reference to Ifelodun
Microfinance Banks Ikirun Osun State.
contribution of micro finance bank to Agricultural Development can not be over
emphasized in the development of the any state or country particularly at local
contribute greatly to the revenue generation and the economic growth and
development of the local government and individual.
view of the laudable contribution of microfinance Bank to Agricultural
development it is necessary to examine these contributions in Osun State
with particular reference to Ifelodun Local Government area Ikirun.
statement of hypothesis includes null hypothesis (Ho) and alternative
hypothesis (Hi). They are as follow:
micro finance Bank contribution to Agricultural development is not significant.
micro finance Bank contribution to Agricultural development is significant.
Ho: There is no significant relationship
between microfinance Bank and Agricultural development at Ifelodun Local
Hi: There is no significant relationship
between microfinance Bank and agricultural development in Ifelodun Local
the federal government and central bank of Nigeria
(CBN) policies in respect of agricultural financing in Nigeria. The sector still remains
in picturing of shoddy performance. Therefore, it is imperative to study the
role of micro finance bank in financing through agricultural credit guarantee
SCOPE OF THE
study covered the contribution of micro finance banks to agricultural
development in Ifelodun local government area.
will look at the general overview of micro finance banks contribution to
agricultural development in Ifelodun local government area Osun State.
OF THE STUDY
considering the wideness of this topic or study the extent at which we intend
to treat the topic is insufficient supply of text book, time factor, financial
constraints, distance and inadequate information given by the banks and
OF THE STUDY
study has become relevance to the academic community and the society in
general. Micro finance contribution to agricultural development in Ifelodun
local government area makes the society in general to known the contribution of
micro finance bank to agricultural in Nigeria.
the academic community and society will benefit when there is increase in the
development of agriculture through financing by micro finance bank.
Agricultural : Refers to the production of foods and cash crops.
Ii Funds: This can be simply refers
to money or anything that can be used for settlement of debits.
Small scale medium
agricultural insurance company
v. Lending: This is the act of given
out money and collect it back of a specified date with interest.
vi. Agroallied: This is the chemical
used in agriculture in order to prevent any pesticides like rodent, bird e.t.c.
Agricultural and Cooperative Bank.
Rate: This is the amount charged on any given out at a specific period of
ix. Financing Opportunity:
This refer to finance available with the business, either injected by
owners as equity and director loan.
x. Formal Sectors: This consists of
some component like banking system, the capital market, non bank financial
xi. Informal Sector: This consists of
money lenders, trade association, age grade association.
BACKGROUND OF IFELODUN MICRO FINANCE BANK IKIRUN
Ifelodun Micro finance Bank was
incorporated on 11th June 1991 as Ifelodun Community Bank Limited.
It was granted provisional license to carry on banking business on 2nd
was commissioned by Alhaji Isiaka Adeleke the first Executive Governor of Osun State.
The Bank was under the control of National Board for Community Bank (NABCB)
between 1992 and 2002, in the year 2003; central bank of Nigeria (CBN) took
over the control and issued another authentic practicing lenience.
In 1992, the bank (Ifelodun
Community Bank now Micro Finance Bank) started banking business with paid up
capital of #500,000 only. Between 1994 and 1995, paid up capital rose to #5
million the paid up capital of Ifelodun community bank limited now Ifelodun
microfinance bank limited rose to #10 million in the year 2005.
compliance with CBN directive, the paid up capital rose to #20 million in the
year 2007. The bank experienced rapid development since inception till date
with not less than 20,000 customers different categories.
THE AIMS AND OBJECTIVE OF IFELODUN MICRO
FINANCE BANK LIMITED
1 It was
incorporated to cater for the savings and credit needs of small scale producers
through out the country.
Development of the country, state and locality is the
total commitment of Ifelodun micro finance bank limited.
They involve and support viable local community in the
effective mobilization of the rural population for sustained rural development
activities, bearing in mind the need for promoting greater community.
ORGANIZATIONAL CHART OF IFELODUN MICRO
setting up any establishment, we have to make used of certain recourses. These recourses
are material, human and financial resources. The human resources constitute the
foundation of any organization.
Group emerges in the organization,
but manager must be able to coordinate the activities of the group in order to
achieve the organizational objectives. To achieve these objectives, these is a
need to identify individual task and the necessary tool and technology that
must be made available and a predetermine structure of relationship must be
manager has the responsibility of designing a befitting organization structure
that will best coordinate people to performing their tasks while using
appropriate technology so that organizational objective can be accomplished.
Organizing organization are terms widely used by everybody but each term may
present different meaning when used.
can be defined as a conscious process of management that focuses attention on
the predetermine structure and process of allocating tasks to achieve common
ORGANIZATIONAL CHART OF IFELODUN MICRO
FINANCE BANK IKIRUN
SORCES: the source of this
organizational chart is from internal memo of Ifelodun Micro finance Bank