AN EXAMINATION OF THE ROLE OF COMMERCIAL BANKS IN FINANCIAL OF AGRICULTURAL PROJECTS IN ENUGU STATE ( A CASE STUDY OF FIRST BANK NIGERIA PLC 1999 – 2003)

PROPOSAL 
It has because very imperative to examine the role of commercial Bank in financing of A agricultural projects PLC, (1999 – 2003), is s topic so crucial that interested parties in the work many.  It is very vital considering the role of commercial banks in general and first Bank in particular play in financing of Agricultural. Project in Enugu state, in sustaining the Economy.   This creditable role being played by the above bank in sustaining the economy of Enugu state and the position of agriculture in the building of a venture find a self reliant nation attracted the attention of the researcher. The instrument with which the Central Bank of Nigeria Central the commercial Banks in general and first Bank in particular in terms of Agricultural loans were examined. With credit guidelines which comes out every year, Central Bank of Nigeria specifies, the minimum percentage of loan of agricultural sectors. Secondarily, the Federal Government of Nigeria and the Central Bank of Nigeria established the Agricultural credit guarantee the value fund by which the farmers who receive loan under it are guaranteed by the Central Bank of Nigeria. The liability of CBN is the case of default is up to 75%.  The study tried to find out whether the decline in agricultural output within the state has link with the absence of credit facility made available to formers by commercial banks in general and first bank in particular in financing of Agricultural projects in Enugu state, in doing so first Bank of Nigeria (FBN) PLC with Bank office and area offices within Enugu state were selected for studies, and because of size three local Government treas were also selected for study and the include Enugu East and Enugu South.. Cluster sampling was used to selected farmers on which questionnaire were administered.    Also used in collecting data was interview method because there were some farmer who were not very literate. The data collected was used testing the two hypothesis for the topic. The hypotheses included that carry out feasibility study to Agricultural farmers do not have any effect on commercial Banks in general and Bank in particular in financing of agricultural project in Enugu state, and commercial Banks aim general and first Bank in particular do not respond adequately to farmers in  financing needs of agricultural project in Enugu state.       In testing the above hypothesis, chi – square test was used. The test concluded that carrying out feasibility study to Agricultural farmers in Enugu state do not have any effect.. It was also concluded that commercial Bank in General and first Bank in particular do not respond adequately to farmers in financing need of agricultural projects in Enugu state.    Other mirror issues in  the researcher questions in the project were weighted to percentages.  In conclusion, commercial banks in general and first Bank in particular should be more encourage to assist agricultural sector and appropriate staff expansion recommended for effective supervision to avoid both loan default and  diversion in Enugu state. 
TABLE OF CONTENTS 
Title page ii Approval page iii Dedication iv Acknowledgement v Abstract viii Table of contents xi List of tables xv List of figures xv List of abbreviation xv
CHAPTER ONE  Introduction 1 1.1Background of study 1 1.2Statement of the problem 4 1.3Purpose / objective of the study 6 1.4Research question 7 1.5Research hypothesis 8 1.6Significance of study  8 1.7Scope, limitations and delimitations 11 1.8Definitions of terms 12 References 14
CHAPTER TWO Review of related literature 16 2.1The meaning of agricultural finance 16 2.2Financing agricultural projects in developed country 17 2.3Agricultural finance in Nigeria as a developing country 21 2.4Problems facing agricultural project finance in Nigeria commercial bank  (first bank of Nigeria plc) 24 2.5Agricultural financing in Enugu state 31 2.6Evaluation of commercial banks (first bank Of Nigeria plc) performance in granting agricultural loans 31 2.7Sources of agricultural finance in Enugu state 34 2.8An overview of the federal government assistance in relation to agricultural finance 35 References 40
CHAPTER THREE:  Research design and methodology 42 3.1Research design 42 3.2Area of study 43 3.3Population 43 3.4Sample and sampling techniques 44 3.5Instruments of data collection 46 3.6Methods of data presentation 48 3.7Methods of data analysis 49 References 51
CHAPTER FOUR  Data presentation and analysis 52 4.1Presentation of questionnaire 54 4.2Discussion of result 70 References 73
CHAPTER FIVE  Findings, recommendations and conclusions 74 5.1The findings of the study 74 5.2Recommendations 77 5.3Conclusions 80 Bibliography 81 Appendix 87 Questionnaires 88
LIST OF TABLES
4.1Administration of questionnaire  4.2Feasibility study table  4.3Contingency table on loan application  4.4Save custody respondent  4.5Advisory services respondent  4.6Conditions specified by banks  4.7Respondent on granting of loan to agricultural projects 
LIST OF FIGURES  4.1Graph showing acceptance and rejection region  4.2Graph showing level of significance 
LIST OF ABBREVIATION  Acgsf -agricultural credit guarantee scheme funds  Camd -company and allied matter degree C.B.N -central bank of Nigeria  Fao -food and agricultural organization  Fbn  -first bank of Nigeria  Nig -  Nigeria  Plc - public liability company  X2  - chi – square 
ABSTRACT It has become very imperative to examine the role commercial Banks play in financing Agricultural project in Enugu state. This creditable role being played by the above bank in the economy of Enugu state and the position of agricultural in building of a virtue and self – reliant nation will attract the attentio0n of the researcher. The instruments with which Central Bank of Nigeria (CBN) control the commercial banks in terms of agricultural loans will be examined. With credit guideline which comes every year, CBN specifies the minimum percentage of loan to agricultural sector.   This study will find out whether the decline in agricultural output within the state has link with the absent of credit facility made available to farmers by commercial banks in financing agricultural project in Enugu state. In doing this, First Bank of Nigeria with the Enugu Zonal Office and area offices within Enugu State will be selected for the study. Because of size, three Local Government treas will be selected for the study and they are Enugu North, Enugu South and Enugu East Local Government treas. Cluster sampling will be sued to select farmers on which the question will be administered.   Also, interview method will be used in collecting data because there are some farmers who are not very literature. Data that will be collected will be used in testing the hypothesis of the topic. In the testing of the above hypothesis, chi – square test will be used. The finding and recommendation of this will be made based on the analyzed data.