[A CASE STUDY OF AFRIBANK NIGERIAL PLC]

ABSTRACT

     
The objective of this study is to evaluate agricultural loan
disbursement and repayment in the Nigeria commercial banks. In
particular it is intended to examine the adequacy and repayment in
commercial banks. In carrying out this research both. Secondary data
were collected through the use of quantitative and qualitative analysis
of data and other information which were administered to the agric
department of afribank Nigeria plc.

      The result of the
analysis should that agricultural loans has not been effectively
disbursed by the Nigeria commercial banks also the beneficiaries of such
loan has not been repaying them promptly.

TABLE OF CONTENT

CHAPTER ONE                         

        INTRODUCTION

1.1)            Background of  the study

1.2)            Statement of the problem

1.3)            Purpose / objective of the study

1.4)            Significance of the study

1.5)            Limitation of the study

CHAPER TWO

    Review of related literature                           

        CHAPTER THREE

   Research design and methodology.

3.1)            sources of data ( secondary data only )

3.2)            location of the study  

3.3)            methods of data collection literature work only

CHAPER FOUR

         Findings

CHAPTER FIVE

  Recommendation and conclusion   

CHAPTER ONE

INTRODUCTION

1.1)     BACKGROUND OF THE STUDY

            
A commercial bank can be defined as a financial institution or company
carrying on the biz of receiving monies other valuables as deposits from
the public for keeping and for lending to the investors on short and
medium term basis on which it charges interest such deposit or repayable
on demand to the depositors or order. ADEKANYA(1993)

      The
early commercial bank in Nigeria were established by the colonial Govt
and mainly catering for the interest of the expatriates, thus [i]financing
export trade and neglecting agricultural financing. The discriminatory
attitude makes some Nigeria to establishing indigenous commercial banks
could be found in the country which include union bank plc, first bank
plc, universal trust bank limited and afribank plc.These institutions
perform such services which include the acceptance of deposits in form
of cash or cheque   from the public granting of loans and overdraft
faculties to customers, issuance  of letters  credit to worthy customers
and fund transfer service  discounting of bills. 
Etc.                                                            
             Despite the amount  of loan being channeled to the
agricultural sector for industrial development by commercial banks, the
agricultural sector still suffers from some in he rent problems
militating against the industrial and agricultural of the nations. And 
there has been continuous shortage of basic food items in the nation as a
result of lack of agricultural development.

           
The prices of food items are always develop as result of limited yearly
output of agricultural products. A huge sums of foreign exchange is
spent annually on the important of   raw materials for local industries
which would have been source locally, if the agricultural sector was
full developed. Also farmers and other agro-base ventures are not
motivated towards obtain agricultural loan facilities due to the banks
stringent measure of loan appraised, disbursement &re-payment.

     
Finally, a lot of foreign exchange earnings which would have been
earned through commodity exports as a result of improved agricultural
product could not be achieved due to the under development of the
agricultural sector GREENER (1990). This study will therefore focus
attention agricultural loan disbursement and repayment in Nigerian
commercial banks in the there to look the factors that militate against
the proper disbursement and repayment of such loan in other to
revitalize the agricultural sector so as to be self sufficient in food
production and for the economic development of the nation.

1.2              STATEMENT OF THE PROBLEM

The commercial banks, farmers and other agro based

industrials are faced with problem arising from the disbursement and payment of agricultural loans

      
There is a problem of insufficiency of liquidityawardable to the
commercial banks to  meet loan applications by prospective customers or
farmers due to Govt policies on reserve requirement of commercial banks.
The customers and farmers irritability in repaying the loan give to
them also militate against the willingness of banks in agriculture
loans. Sometime the security to be offered by customers for such loans
become a problem as some customer found it difficult to offer a
collateral security for such loans which even tonality deprive them from
obtaining agricultural loans Furness (1991).

       Most farmers
and other agro-based ventures customers deviate from investing the
proceeds of the loan on agricultural ventures for which purpose such
loans was extended during a period of cash sequence in the economy
commercial banks often finds it difficult to extend agricultural loans
to credit worth customers due to scarcity of liquidity. These and other
problems, the research intend to investing in this study.

1.3              OBJECTIVESS OF THE STUDY

         
The purpose of this study can be over emphasized because of the
increasingly shortage of food items, poor and inadequate implements
being used by farmers and other agro-based industries and the inability
of the commercial banks is extending facilities to customers due to
repayment, security and other problem being encountered by bank.

     
The researcher is of the opinion that corrective measure to taken
overcome these predicaments therefore the objectives of the study are:

1.To identify the various criteria for obtaining agricultural loan towards the development of agricultural.

2. To identify whether the agricultural credit policy of the government is being adhered to by both the customers  and banks.

3.To
check the repayment capabilities of customers so as to ensure prompt
repayment of approved facilities including interest charges.

4.To motivate farmers and corporate customers in souring agricultural loan for expansion of their agricultural project.

5.To
encourage mechanized farming as a result of such facilities which could
be used for the procurement of tractors and other farming input.

1.4        SIGNIFICANCE OF THE STUDY

        
     The study of this, is to emphasize on the increasing shortage of
food items, poor and inductor implements  being used by farmers and the
inability of the commercial banks in extending facilities to their
customers due to repayment security and other problems being encountered
by bank.