The project examines an evaluation of the impact of Ifelodun
Microfinance bank Ikirun on agricultural development in Ifelodun Local
Government. Introduction, purpose and limitation of the study etc were
examined. I deals with development of Agricultural Financing in Nigeria
objective, scope, literature review, the role of agricultural in
economic development and solution to the problem facing them. That is
research methodology and process of data collection were examined.
Exposed the financing data analysis and data collecting and also
analyzing of response from respondent from Microfinance bank in which
were critically review. Conclusion base on the summary of findings and
recommendation to the general public at large.
BACKGROUND OF THE STUDY
Nigeria is a country that is enclosed by nature with all the
resources that facilitate Agricultural Development. These include Vast
Kind of areas, rich soil, plenty of rainfall and hardworking peoples.
Nature has been generous to this country. So when Nigeria attained
Independence in 1960, agriculture was the dominant sector of the
economy. It constituted over 65% of the country’s gross domestic product
(GP) and provided the bulk of foreign exchange earning through the
export of cash crops. There is therefore little or no wonder that pivot
of discovery of oil. This country has been a great exporter of farm
produce as groundnut, cocoa, palm cannel and oil, cotton and rubbers.
The overall agriculture deteriorated creating a wide gap between
supply and demand for food and revenue from agricultural export
demanded. So government was faced with mouthing food import bills at the
same time, industries, increasingly restore to importing agricultural
raw materials. In order to tackle some problems facing the agricultural
sector, the federal government and central bank of Nigeria (CBN) put in
place certain policies no respect agricultural financial through:
The establishment of specialized financial institution likes The
Nigeria Agricultural and Micro Finance Bank (NAMB), Peoples bank among
others and control policy under the policy of commercial merchant Bank
of Nigeria (CBN) through monetary policy circular to lend a certain
percentage of their loan portfolio to farmers and agro- based
Their establishment of special scheme like agricultural credit
guarantees scheme (ACGS), the Nigeria agricultural insurance, company
(NAIC), Small and Medium Scale Enterprises (SME), were established to
supplement the activities of specialized financial institutions in
credit delivery. Since finance is a key element for modernization of
agricultural and agro- allied business, because necessary to study the
contribution of micro finance banks on Agricultural Development with
special reference to Ifelodun Microfinance Banks Ikirun Osun State.
STATEMENT OF THE PROBLEM
The contribution of micro finance bank to Agricultural Development
can not be over emphasized in the development of the any state or
country particularly at local government level.
Agricultural contribute greatly to the revenue generation and the
economic growth and development of the local government and individual.
In view of the laudable contribution of microfinance Bank to
Agricultural development it is necessary to examine these contributions
in Osun State with particular reference to Ifelodun Local Government
The statement of hypothesis includes null hypothesis (Ho) and alternative hypothesis (Hi). They are as follow:
Ho: Ifelodun micro finance Bank contribution to Agricultural development is not significant.
Hi: Ifelodun micro finance Bank contribution to Agricultural development is significant.
Ho: There is no significant relationship
between microfinance Bank and Agricultural development at Ifelodun Local
Hi: There is no significant relationship between microfinance Bank and agricultural development in Ifelodun Local Government.
PURPOSE OF THE STUDY
Despite the federal government and central bank of Nigeria (CBN)
policies in respect of agricultural financing in Nigeria. The sector
still remains in picturing of shoddy performance. Therefore, it is
imperative to study the role of micro finance bank in financing through
agricultural credit guarantee scheme (ACGS).
SCOPE OF THE STUDY
The study covered the contribution of micro finance banks to agricultural development in Ifelodun local government area.
It will look at the general overview of micro finance banks
contribution to agricultural development in Ifelodun local government
area Osun State.
LIMITATION OF THE STUDY
In considering the wideness of this topic or study the extent at
which we intend to treat the topic is insufficient supply of text book,
time factor, financial constraints, distance and inadequate information
given by the banks and farmers.
SIGNIFICANCE OF THE STUDY
The study has become relevance to the academic community and the
society in general. Micro finance contribution to agricultural
development in Ifelodun local government area makes the society in
general to known the contribution of micro finance bank to agricultural
Also, the academic community and society will benefit when there is
increase in the development of agriculture through financing by micro
DEFINITION OF TERMS
i Agricultural : Refers to the production of foods and cash crops.
Ii Funds: This can be simply refers to money or anything that can be used for settlement of debits.
iii. SME: Small scale medium
iv. NAIC: Nigeria agricultural insurance company
v. Lending: This is the act of given out money and collect it back of a specified date with interest.
vi. Agroallied: This is the chemical used in agriculture in order to prevent any pesticides like rodent, bird e.t.c.
vii. NACB: Nigeria Agricultural and Cooperative Bank.
viii. Interest Rate: This is the amount charged on any given out at a specific period of time.
ix. Financing Opportunity: This refer to finance available with the business, either injected by owners as equity and director loan.
x. Formal Sectors: This consists of some component like banking system, the capital market, non bank financial institutions.
xi. Informal Sector: This consists of money lenders, trade association, age grade association.