PROPOSAL
This research work, the developmental impact of rural banking in Nigeria, a case study of United Bank for Africa (UBA) was carried out to measure to what extent the rural commercial banks have been able to involve the inhabitant of our rural areas in economic activities in terms of awareness and influence on their style of living through banking.
In conducting the research, related literature to research were consulted. This was followed by a fieldwork in which questionnaires and personal interview were administered as a method of obtaining primary data from respondents who are both in the rural areas.
From the data, the following findings became apparent that a tremendous impact has been made by commercial banks on rural communities after the phases of the rural banking programme in Nigeria since its inception in 1977. Moreso profit and industrialization is very important in the development of the rural areas which implies that government must closely work hand in hand with rural banks.
Finally, policy recommendations were reached through the provision of loan facilities to farmers, boost agricultural production thereby making impact felt in rural areas. And the industrialization serves to make most of the rural banks become profitable.
TABLE OF CONTENTS
CHAPTER ONE
1.1 Aims and objectives
CHAPTER TWO
2.1 Historical Background of United Bank of Africa, Enugu Branch
CHAPTER THREE
3.1 Sources of Data collection
CHAPTER FOUR
4.1 Data presentation analysis
CHAPTER FIVE
5.1 Findings
References
Appendix
ABSTRACT
This research work, the developmental impact of rural banking in Nigeria, a case study of United Bank of Africa (UBA) was carried out to measure to what extent the rural commercial banks have been able to involve the inhabitant of our rural areas in economic activities in terms of awareness and influence on their style of living through banking activities and how successful the bank are measuring up with their major aim of existence.
Chapter one, is an introductory aspect of the study. It contains items like the statement of the problem, objective of study, scope limitation and definition of terms.
Chapter two, this chapter is essentially made up of review of related literature, where attempt is made to keep the readers full understanding of the theories underlying subject matters.
Chapter three, is on research design and methodology. This chapter tried to justify the method of data collection method of data presentation, which can be used in the research method.
Chapter four, data presentation and analysis in the financial statement interpretation and ratio analysis in the financial statement.
Chapter five will deal with the finding, conclusion, recommendations and appendix.
CHAPTER ONE
Banking service when introduced in our rural areas will bring development or specifically economic development to the doorstep of every citizen in this country since between 70 – 80 percent of Nigerians lives in the rural area.
Every Nigeria want to go to the urban area because of availability of infrastructural amenities like electricity, good roads, pipe borne water, civilized market operation, job opportunities and so on. If these social amenities continue to exist in urban areas, life in rural areas will still remain underdeveloped. Money they say is the blood that nourishes or gives life to any prosperous economy of a nation. For money to accomplish its aims in an economy, it needs to be properly managed and controlled in the banking sector.
Agriculture is the second major sources that generate revenue to the Nigeria government after oil industry. The sector of the economy right from time has been neglected. The rural areas have not felt any positive impact on the development plan but only recorded a decline in agricultural productivity, which shows that the rural areas have been neglected at the expense of the urban areas.
The banking industries one of every nations sectors that has a controlling impact on the economy particularly in terms of monetary policy, this is why federal government has continuously encouraged banks to expend their services and facilities not only to the urban cities but also rural areas.
1.1 AIMS AND OBJECTIVES
This research work is aimed at investigating the impact the rural banking services, commercial banks have on the productivity of small and medium agricultural farmers and the entire economic activities of the rural areas. This project work also aimed at acquainting ourselves with the benefit of rural banking services in terms of mobilizing and organizing present farmers into efficient and active co-operative groups, small and medium scale farmers and integrated rural communities.
The objective of this research is to evaluate how effective credit allocation among productive activities the rural areas have been realized.
Finally, the aim of the project work is to suggest policy measures to government in improving rural banking so as to have the desired development impact on the rural areas in Nigeria.
The commercial bank is a profit making organization. There is a great fear in establishing in rural areas where it cannot maximize profit. Rural banking has been seen as indispensable if the nation is to develop its rural areas. The development of one rural area may not be a reality if services of commercial banks are not at the reach of our rural dwellers.
The problem therefore is how to resolve the profit motive of the rural commercial banks and the essential services being rendered to the rural dwellers. This project work is designed to measure to what extent the rural commercial banks have been able to involve the rural dwellers in the economic activities in terms of awareness and
Nigeria is a developing country with more than 70 percent of her population living in the rural areas. These rural dwellers are faced with lot of hardship in terms of basic infrastructures. The rural dwellers are mostly farmers, definitely require loans, to reduce the hardship involved in acquiring input as well as cultivating their farms, therefore, the services of banking becomes very essential.
This study is essentially significant in that it is directed towards evaluating the effect the growth of rural banking activities has on the rural inhabitants which is a criteria aimed by measuring economic standard. It is also significant in the sense that it shows to what extend the rural banking programme in Nigeria has been successful.
Conventional economics and experience suggest that by supplying food, labour and invisible surplus, the rural areas help to generate urban income and employment. They also help to stabilize if not reduce production cost for industries and cost of existences of commercial banks in the rural areas will speed up investment.
This study is limited to Enugu State, a state comprising of eighteen (18) local government area each having one or more rural bank(s). For ease of information we would restrict to Awgu, Nkanu East dwellers. This project work is designed to measure to what extent the rural commercial banks have been able to involve the rural dwellers in the economic activities in terms of awareness and influence on their style of living through banking activities and how successful the banks are measuring up with their major aim of existence. The government has accepted banking persuasive rather than forcing banks to establish branches in the rural areas.
Most villages are without electricity and pipe borne water and the banks spend much more that customers deposit to provide these amenities for workers.
A major problem is that the rural dwellers don’t patronize the bank industries. Most of the rural dwellers are farmers. They go to the farm before the bank starts its business and return only after they have closed to customers. Hence the bank finds it difficult to make profit.
The rural banks encounter lot of problems cultivating banking habit in the rural dwellers. Rural dwellers live in mutual suspicion with strangers, for that rural branches workers are affected.
The rural banks also encounter problems of granting loans to rural dwellers and small scale businessmen in the rural areas. Because they are not too aware about why bank lend them loan, they use this loan for marrying wives, thus means of repayment becomes a problem.
Although United Bank for Africa (UBA) has been chosen as a case study, other banks like Union Bank of Nigeria (UBN), first Bank of Nigeria, All States Trust Bank, Citizens Bank etc, can find this study beneficial to hem since they are all operating the same economic environment.
The study focuses attention to the impact of rural banking in the development of rural areas.
In the process of carrying out the research focuses on the development of rural banking in Nigeria with United Bank for Africa (Rural Branches) as case study concrete efforts were been made to arrive at a logical conclusion. However, the work was subject to certain limitations.
Financial constraint is another limitation to this works which is as a result of high cost of transportation fare to the various bank branches together data, cost of material to carry this work to conclusive standard was equally important.
Respondents turned out to be co-operating by completing the questionnaires, which took lot of time and energy to convince them.
The following hypothesis has been formulated to which the study will attempt providing answers.
Ho: The United Bank of Africa UBA makes use of techniques/methods in determination of its return in rural banking.
H1: Apart from the rural farmers, the United Bank of Africa does not source fund from other activities of the rural banking.
Ho2: The United Bank of Africa make adequate benefit from the accumulated investments of urban banking.
Ho3: The United Bank of Africa does not derive any benefit from the accumulated investments of rural banking.
BANK:
According to the Nigerian Banking Act, 1969 (as amended Bank amendment act 1979), a bank is described as the business of receiving money from outside source as deposits irrespective of the payment of interest and the granting of money, loan and acceptance of credited or the purchase of bills and cheques or the purchase and sale of securities for account of those or the incurring of the obligation to acquirer claims irrespective of loan prior to their maturity or the assumption of guarantees and other warranties for others or the commissioner may on the recommendation of the central bank by order publish the federal gazette designed as banking business.
RURAL AREA:
According to Webster’s New Word Dictionary, it refers to that not being characterized with citizen or urban life. That is usually associated with farming and agriculture. The rural area has the features of low level of literacy, poor health facilities, and inadequate family planning, low technology and inadequate infrastructures. In addition, a prominent phenomenon in rural areas is that the people who live there have as integrated culture and social system as their way of life. Development is carried out as group efforts in a community. In Nigeria, majority of people who live in rural areas earn their main income from agriculture.
RURAL BANK:
A rural bank can be described as a brand of existing bank established in the rural area to provide banking services for rural population. These services could be in the form of motivation, rural saving, credit allocation among productive activities of the rural population and linkage of money market in the rural areas with the capital market in the urban centers, in other words, the adequate efficient and equitable allocation of resources amongst
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