Title page- - - - - - - - - - i
Declaration - - - - - - - - ii
Approval- - - - - - - - - - iii
Dedication - - - - - - - - iv
Acknowledgment - - - - - - - v
Abstract - - - - - - - - vi
Table of content- - - - - - - - vii
1.0 Background of the essay - - - - - 1
Objectives of the
essay - - - - - 4
Significance of the
essay - - - - - 5
Scope of the essay - - - - - - 7
Limitation of the
essay - - - - - 8
Definition of terms - - - - - - 9
2.0 Introduction - - - - - - 13
2.1 Meaning of NACRDB - - - - - - 23
2.2 The aspect of NACRDB - - - - - 24
2.3 Summary of literature review - - - - 28
Summary - - - - - - - - 29
Conclusion - - - - - - - 31
Recommendations- - - - - - - 35
- - - - - - - - 37
BACKGROUND OF THE EXTENDED ESSAY
of credit can be regarded as important to financial institutions in any
economy. Consequently the formulation and implementation of bound credit
policies among the most crucial responsibilities of management in any financial
institution. Thus this formulation of a sound credit policy is a necessary
condition if financial institutions are to attain their objectives to serve the
public in an efficient manner and more importantly, ensure the safety of their
funds. An articulate credit management policy not only seeks to balance profit
ability with liquidity but in doing so, it is expected to determine to whom
credit must be granted, how to ensure successful recovery. (I Yowu 1985).
The achievement of
an efficient credit management entails an element of subject judgment.
posited that “in order” to arrive at a good judgment there is a need to
evaluate the cannons of lending or the five’s of credit namely condition,
character, capacity, capital and collateral.
Agricultural cooperative and rural development bank (NACRDB) was established on
the 24th November 1972 and went into operation on 6th March 1973 its
establishment was hinged on the now enhanced vindicated conviction that the
bank will enhance the income level of farmers and this make farming more
started as the Nigeria Agricultural bank ltd (NAB) and actually took it’s new
name in 1978 at the instance of the Nigerian government. this in the government
view was to reflect more vividly, the bank commitment to Agricultural
development through the promotion and financing of co-operates the general
consensus however, was that these credit financing institutions, failed die to
some factors. Agricultural experts say these factors ranged political
interference, inefficient project, appraised monitoring and supervision, the
low coverage of the farming population, trade quite funding adoption of the
excessively rigid and time consuming procedures for processing loans
application, low loan recovery and untimely loan disbursement, the loans
institutional lending consisting of such informal sources as money lenders,
friends relations and thrift societies, took advantage of the weakness of these
institutional lenders to change exorbitant rate themselves which the government
commissioned a number of studies which finally culminated in the world bank
stonenam report of 1969.
recommended among other things the establishment of a National Agricultural
credit institution, whose major function would be the provision of credit to
farmer so as to exterminate the major impediment to agricultural development in
And after 22 years
of existence (NACRDB) can unequivocally be said to have lived up to these
objectives it has provided diverse credits to improve the whole ambit of the
country’s agricultural and agro business. Thus, the (NACRDB) of today is a
welcome relief to Nigerian farmers, the banks inauguration market an important
land mark in the history of the nation’s agricultural development and it is has
continued to serve as a national financing institution devoted industry to
investing in all aspect of the agricultural industry. And more importantly, it
has continued to serve as a source of fund to Nigeria farmers.
1.1 OBJECTIVE OF THE EXTENDED ESSAY
The following are the objectives of
the extended essay;
TO find out the
beneficiaries of NACRDB loan.
To find out the
rate of loan repayment and its consistency
To find out how
NACRDB loan is disbursed to its beneficiaries.
To make the essay
work the basis upon which other essay writers can improve upon.
SIGNIFICANCE OF THE
The relevance of
any essay work to the society being studied and the economic work of the nation
lies or the qualify of the work carried out.
Nigeria Agricultural cooperative and rural development bank (NACRDB) Kaduna was
assessed by the then Head of State, General Yakubu Gowon (Rtd) at its launching
in 1973 as also concerned on the validity of the conception it has become a
household name, in agricultural financing might be a risky venture, but that it
will be the magnitude of agricultural development of the national economy in the long run.
The essay will
serve as means of appraising the agricultural sector as to determine if the
aims and objectives are being met to other financial institutions it will serve
as a means of estimating their contribution to the overall economic development
of the small scale farmers in particular and the larger scale farmer
(exporters) in general through the different loan schemes. To this end, we will
be also to see if their different schemes are meeting the expectations required
to them and to suggest remedies where they are found wanting.
To farmers, the paper
will serve as a means of creating much needed awareness as regards the
different ways that they can meet up with their commitments to the bank and in
making the bank continue to assist irrespective of the various schemes it is
involved in this work will also serve as a reminder to other financial
institution other than NACRDB of the need to extend their activities to the
venture of agricultural financing sector of the economy that concentrating only
on the banking aspect.
Finally, this paper
will serve as a guide of enlightening the general populace of the importance of
agricultural financing and suggesting ways and strategies of reducing the risk
involved in loan.
SCOPE OF THE
The essay is
limited to NACRDB Head office that is to took into the operations, problems and
prospect of loan recovery techniques in NACRDB.
Agricultural cooperative and rural development bank (NACRDB) is chosen for
study being the single most important financial institution in the country
lending support and effect governments policies on agriculture. Based on this
premise, any conclusion, inferences and recommendation arising from this study
are likely to apply to other financial institutions that give loan for
agriculture the study will also focus on how the different loan scheme of the
social and economy will being of the beneficiaries.
LIMITATION OF THE
The study requires
some quality and full concentration which it has not been able to get due to
the following factors:
constraint: The time to carry out this
study is too short because there are other school activities that prevent me
form devoting my whole time unto the research. Activities such as lectures,
assignments and tests etc.
constraint: The researcher had to go for
various research to get materials needed for this work but due to financial
constraints, the researcher was unable to go too far to get the materials.
Also, the researcher needed to buy some vital printed materials, transport
herself to various libraries in Kaduna town but due tot financial constraint,
the researcher was unable. This factor limited me for giving my best. But
despite those short coming the research was able to overcome the limitations by
getting some materials necessary to accomplish the objectives and make the
research work a reality.
DEFINITION OF TERMS
In this essay it is
only NACRDB which the full meaning in the Nigerian agricultural cooperative and
rural development bank
provision of money, goods or services with the expectation of future payment
i.e. long-term also money, goods or services provided.
execution of public affairs as distinguished from policy making.
Debt: Is the credit
received by a borrower from a prime lender who may be a formed or informal
Asset: The entire
properly of a person, association, corporation, or estate applicable or subject
to the payment of debts.
Parallel, coordinate, or corresponding in position order, time or significance.
Something for which one is liable especially pecuniary obligation.
development: The process whereby simple, low income national economies are
transformed into modern industrial economies.
Bad debt: Are debt
that are doubtful of recovery
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