Financial institutions serves as an intermediary between the
source of fund and its users for productive or personal purpose.
Especially it is a temporary depository of excess fund of individual,
private enterprises and government parastatals from which loan are
granted to borrowers.
Hutchison D. (2001) “Side financial institutions
in business is considered to be a business based on trust, viz money
entrusted for safe-keeping or protection and for immediate demand as
the need arise”.
It has become the responsibility of government,
to watch closely the operations of these institutions for the interest
of the depositor.
Moreover, to assist in this function, several
provisions in the commercial banking law and other policies issued by
the Central Bank of Nigeria (CBN) are considered, additional protection
to the public fund.
Duggau (Governor of Agricultural in farm credit
Administration U.S.A) and Ralph U. Battle (Assist. Chief Economic and
Research division) in their book “Financing the farm business” gave
some useful information on how credit loan can be obtain and the way
which the borrower can repay either by installments or liquidate the
same borrowed from the bank on the so called repayment at a time.
Akpog Hor (1984) stated that agricultural development is first
act of a human problem if all farmers have access to production,
inputs, but because most of our farmers lack reacts to these condition
they therefore, lack both the resources. A small scale farmers could
thus be defined as such conglomerate of small scale farmers normally
constitutes the cooperative.
Abo-Ola Ifayes (1990) said that in developing economies like ours,
the small at all dept to the nature of their farm operation.
Although the pleasant farmers have been commended
for their efficient ability of resources usage they never the less
have prior showing coverage that the availability of to her resources
such as land capital and technology to our peasant farmer.
A lecture delivered by Mr. N.I.D Oninatus (Read)
Dec. 11th -14th (1989) is of the belief that capital loans are term in
nature and are usually required to finance fixed assets such as land,
construction of farm building, purchase of agricultural machinery,
plant and equipment purpose of livestock for other development purpose
which bring about changes in their physical and financial assets of the
Presented by Adesina (1977) on the roleof NACDB in agricultural
and marketing financing with reference to small scale farmers and crops
societies reminded that agricultural is a broaden term which includes
ventures such as available forestry, fisheries, poultry and livestock
in general. The significance of this is that small scale farmers have
to be dynamic to rise to the challenges. This can be achieved by
farmers organizing themselves into coops societies because the coops
societies has been adjoined to be one of the ways of achieving more
efficient results in agricultural production.
Adesina (1977) on his topic the need for credit
stated that is has been long recognized that in developing economic
like rural areas, the small scale farmers who use mentioned earlier
product, produce about 90% of our agricultural output have little or no
savings at all, unlike to the nature of their farm operation.
General Babangida (1988) while speaking at the
launching of National Agricultural policy in Lagos said, other factors
responsible for the failure of agricultural policies are poor
implementation as well as defined institutional arrangements.
Cooperative news (vol 4 No. 8) in its editorial said considering its
vast membership, farmers cooperative have special potentials for
agricultural revolution in Nigeria, therefore, to be undermine, the
potentials of cooperatives in agricultural programme is certainly a
In 1974 all such farmers were estimated to make
up about 94% for about 28 million holdings of al farm holding in
Nigeria the remaining 6% (or about 1.7 million holding of all holding
was estimated to be large scale. Today the farmers population in
Nigeria is estimated to about fifteen (15) million with average farm of
1.2 hectares, unfortunately, the majority of these farmers are peasants
of small scale farmers still relying much on their fragmented and
small size farmers.
Okories (1976) on potentials of using traditional
rulers as loan guarantors for small holder farmers in Nigeria, said
that lack of production credit is generally recognized as important in
expanding food production and modernizing agriculture especially among
the small holder farmer, experience in Nigeria also has shown that
unless production credit is made available on suitable farms, majority
of small farmers will be seriously handicapped in adopting profitable
technology. Most of the agricultural cooperative have been meager
internal resources viz share capital reserves and deposits. This
position will remain so. For some years to come the NACRDB and other
banks should rationalize their loan their loan policy and procedure and
grand credit to NACMO and the distribution of agro-inputs, marketing
fo crops against pledges, it is expected that the bank in Nigeria also
take a positive view in this direction and help agricultural coops
effectively to undertake production and marketing so as to accelerate
the agricultural production process.
Igan (1989) On credit delivered to small scale
fisheries stated that small scale fisheries required more than input
delivery and infrastructures programmes design and management of an
appropriate loan and credit scheme for effective input delivery system
to develop small scale fisheries.
Again M.B Akakiye (1992) on livestock unit stated
that livestock credit unit (L.C.U) is a unit carved for operations in
department of the second livestock development project (S.C.P.O) a
world bank assisted programme. Ajakaiye (1990) speaking extensively on
the problems besetting agricultural lending in the country said, it was
doubtful it any programmes could be more difficult to operates
successfully than the administration of loans to agriculture especially
to the small scale farmers. This not withstanding- NARCDB has over
the years liberalized the loan conditions for small scale farmers but
not without what he described as its attendant problems prominent among
these problem according to him, the fact that the bank is now other
problems included earth of farm inputs and cooperatives bodies through
which the bank finds could be channeled to members who were small scale
farmers. These later problems he said has necessitate the banks use of
the method of outgrows scheme as an alternative to reach a large
number of farmers. The visible solution lies on in the formation of
more cooperative societies and or consolidating farming groups or
association through which agricultural financing institutions such as
commercial and merchant banks and the Nigeria Agricultural and
Cooperative bank reach the small borrow sector.
This chapter aimed at reviewing what other
writers or experts, educationalist and other reliable sources have side
about Nigeria Agricultural cooperative and Rural Development Bank
(NACRDB) and individual comments and opinions with regards to the role
(NACRDB) play in improving agricultural productivity. The main
objective here is to look at the relationship of these writers with
research topic. This expert views are presented in this chapter to
serve as eye opener for the benefit of large group of people and the
progress of economic.
Farmer’s cooperative is a way by which farmer
group themselves through portion of land for farming purposes for the
attainment of self goals one of the writers on the topic is Dr Onuha
(2003) who wrote in his book “consumer and producer cooperatives”
according to him, he stated that “nevertheless since the creation of
the state of Israel in 1948 delegate from Asia and African countries
have gone to Israel every year to study his cooperative achievement.
They were highly impressed, the Kibbutzim type is yet a dream in
African Dr. Onuha is right since that was obtain in Israel as far as
cooperative farming is concerned it has been far from being reached in
Asia and some parts of Africa, this is because of the long years of
cooperative establishment which indicates that little success has been
recorded. However, in Israel Udo was of the view that this is the only
country in the world as at date that has been accepted and provide by
many to be the place in which a comprehensive cooperative agricultural
system was created on a voluntary basis.
The Israel Kibbutzim for instance is aided to
represent the only perfect integrated all embracing cooperative to be
found any where in the world therefore, in other countries today, more
than cooperative settlement are found with a membership of ten thousand
in which very details of production, consumption, marketing,
distribution, living comfort as well as education and health are
One point of view that is how cooperative farming
societies should look like generally, though even the Rochdale
equitable society of pioneer succeeded by applying and practicing well
organized system of education setting higher standard of living
comforts trade and distribution.