THE ROLE OF COMMERCIAL BANKS IN FINANCING THE AGRICULTURAL SECTOR IN ENUGU STATE

INTRODUCTION 
1.1 STATEMENT OF PROBLEM  The major problem of agricultural development lack of finance or lack of capital to be invested in the process of economic development and since past decades productivity in the sector has been steadily decolong.  In Nigeria this stands as a problem to the national development and agricultural financing therefore his become a priority to the federal government. In recent times, emphasis has shopted slightly from industrial development to agricultural development consequently the federal government has been granting loans to school leavers and graduates for investment in agriculture. This is in recognition of the role of agricultural in national development. The traditional system of agriculture in national development. The traditional system of agriculture in Nigeria accounts for its low productivity and to transform those sector, massive investment is required. This will imply spending huge sums of money in order to improve the system through higher productivity for the farmer whose income serves as the only sources of funding the investment. Since they are poor, they cannot purchase the modern agricultural implements for school leavers, they are unemployed and the alterative sources of funds for investment is agricultural credit. This is mostly provides by the government and some private lending institutions in the SO’S the need to finance agriculture remains insignificants because oil revenue provided in large quality almost all that the national require4d but in 90’s following the speedy and rapid fall in revenue from the oil sector, there have been a renewed emphasis on increased agricultural production for self sufficiency and reliance. This means increase demand for agricultural credit which is not matched by increase in supply of the credit because of the inadequacies of government and existing private lending institutions in providing agricultural credit the federal government made it mandatory for financial institution to lend a certain percentages of their loan pantaloon to farmers. This finally culminated in 1977 in the formation of the agricultural credit guarantee scheme fund (ACGSE) managed by central bank of Nigeria. This scheme guarantee repayment of loans granted to agricultural investors. But it has not significantly reduced the increased pressure of high demand for agricultural credit.  The table I this page shows the demand and supply of agricultural loan from the government in some local government areas in Enugu state through the national directorate of employment in  1990.  TABLE OF CONTENTS Title pageiiApproval page iiiDedication ivPreface vTable of contents vi
CHAPTER ONE Introduction  1.1Statement of problem 11.2Objectives and purpose of the dissertation 41.3Delimitation and limitations of the study  4
CHAPTER TWO 2.1Role of agricultural credit 62.2View on agricultural finance 92.3Role of commercial bank in financing agricultural sector in Enugu state.12
CHAPTER THREE 3.1Summary 143.2Recommendations 153.3Conclusion 17References 19