This research project is a very crucial study on the Role of Nigeria Agricultural Co-operative and rural Development Bank. The study is motivated by the necessity to establish the extent of Agricultural Co-operatives.
To solve the research problem primary and secondary data was collected. The data were questionnaire and oral interview. The respondents comprised of personnel of the bank in organizing and presenting data collected, tables’ frequencies and percentages were used. Data analysis and interpretation give the following findings:
1. Criteria for granting loan to co-operative is that they have an account holder, have viable and bankable project and should be credit worthy.
2. The impact of NACRA has been very much via FEAP, NACB through micro and macro loans and PBN loans to co-operatives
3. Collateral Securities do not pose much problem to give facility to farmers.
4. Insurance cover is necessary to cover some degree of risk involved co-operative failure.
5. The level of response to wards loan facilities is very satisfactory.
6. Loan management by co-operatives is very satisfactory.
7. When loan is not repaid, the guarantors are involved and auction of any real estate mortgaged.
Based on the findings the researcher recommends that:
Banks should constitute a feasible alternative for providing financial assistance to support all efforts for further development of co-operative sector.
Banks should develop their farmers by allowing agricultural loan to cover all stages of agricultural production consultation of agricultural specialist by farmer if need be lending should be basically for agricultural activities.
The conclusion of the study is the role NACRDB has major contribution to make in field of agricultural credit. It has proved to be an important channel in providing financial services particularly, credit to small farmers.
Banks are financial house with the authority to guide groups and individual who could be having monetary transaction to do. The provision of sound financial regulations that make for economic well being is very essential and the assistance of financial house in building up a safe terrain of monetary reserves is very important. The well directed influence of vital banks on the larger society, as a whole is always something to admire every time. The need to have on economic group well tasted and approved of with the education of members of the society in forming a financial viable social ground belong in the part to the intelligent services rendered by banks.
In Agricultural Co-operative societies, where individuals who hold agricultural stock could pull their resources together when union of these stockholders could amount to a greater gain to the advancement of their individual well being and collective aspiration, the expertise of bank posted to assist piece groups material comes by with a great relief government has whole lot of work load to carryout financial or otherwise and so has not much moment to supervisor minor economic units. She has to assign a duty to her agencies these agencies as the dog in the wheal of the success of such co-operative societies and of the same time supply the necessary materials for their improvement and standard procedure. Special agro allied banks have been set up under the auspices of the Apex Bank to grant material aid to agro-stock holders. These Banks are viz.:
These financial institutions have the authority to deal on multiple problems traumatizing agriculture and formation of agro Unions in Nigeria. The Bank of agriculture is becoming so highly modernized so that it will take a lot of money to produce food and cash crops in much profitable abundance. If is with these in mind that government has arranged with her many agencies to bring some relief to aspiring agro stockholders.
Banks in any nation have the keynote to play on unfolding the financial success in the economy.
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