Role Of The Nigerian Agriculture And Co-operative Bank In Agricultural Financing (Problems And Prospects)

INTRODUCTION
1.1 STATEMENT OF THE PROBLEM
The role of the Nigeria Agricultural and co-operative Bank can not overemphasized. According to ugwuanyi (2002), there have been series of efforts. By the NACB in providing short, medium and long term finance to the Agricultural sector of the economy. This is aimed at making farmers to increase their problem, as well as adopting the mechanized system of farming. Anyanwu (1993) stated that it is also meant to encourage or create employment opportunity for the unemployed in the nation.
However, inspite of all the effort being made, the objective of increase in productivity can not actually be said to have been attained. Many people feel reluctant to go into agriculture, instead they seek for other job opportunities. On the side of the NACB, it feels reluctant in extending credit to some categories of farmers.
What actually are the reason for these set back? Could it be as a result of the rate of interest on loan amount? Could it be as a result of loan default? Could it be as a result of the amount being requested for? Could it be as a result of the nature of collateral involved?
Therefore, the researcher intends to investigate on the reason for all these set backs.

1.2 RATIONALE OF STUDY
In respect to the rationale of study, the researcher intends to justify her reason for laying emphasis on this particular topic.
However, what motivated the researcher to write on this topic is as a result of the prevailing problems facing the NACB in Agricultural financing in the society.
Therefore, this study or research work will contribute immensely to improve the in dept knowledge of those in Agricultural sector as well as the NACB in respect to the role of NACB in Agricultural financing.

1.3 SIGNIFICANT OF THE STUDY
The usefulness of this research work can not be absolutely exhausted. However, individuals and groups of individuals will benefit from this research work, mostly those who are ignorant of the essence of the establishment of the NACB.
Also, those in Agricultural sector will also benefit from this research work. This is by having indept knowledge on how the NACB operate in terms of extending short, medium and long – term credits to farmers.
Conclusively, those in various schools of agriculture and other institute of higher leaning will benefit immensely from this work

1.3 DEFINITION OF TERMS
AGRICULTERAL FINANCING:- According to Uguwanyi (1999), Agricultural financing is the sourcing of fund and making it available for agricultural production and uses. That is, it involves the acquisition and utilization of funds for agricultural purpose.
NACB Nigeria Agricultural and co=operative Bank, which was established to fill the financial gap in terms of credit extension to the co=operatives and the agricultural sector.
NACRDB – Nigerian Agricultural, co-operative and Rural Development Bank, which was formed as a result of the merging of the inability of the NACB to meet up with its responsibilities.
NECHANISED SYSTEM OF FARMING:- This implies the system of farming with the aid of machines, such as tractors, bulldozer or Catapilers, Ploughs, etc.
COLLATERAL:- This is also referred to as security. It can be described as an item which a borrower deposits to a bank in hence of the loan amount, of which the bank will later consider in the case of default by the borrower.