phonelogo+234 8146561114 or +2347015391124

ROLE OF BANKING SECTOR IN THE DEVELOPMENT OF AGRICULTURAL EXPORTS IN NIGERIA

USER'S INSTRUCTIONS: The project work you are about to view is on "role of banking sector in the development of agricultural exports in nigeria". Please, sit back and study the below research material carefully. This project topic "role of banking sector in the development of agricultural exports in nigeria" have complete 5(five) Chapters. The complete Project Material/writeup include: Abstract + Introduction + etc + Literature Review + methodology + etc + Conclusion + Recommendation + References/Bibliography.Our aim of providing this "role of banking sector in the development of agricultural exports in nigeria" project research material is to reduce the stress of moving from one school library to another all in the name of searching for "role of banking sector in the development of agricultural exports in nigeria" research materials. We are not encouraging any form of plagiarism. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works.


TITLE PAGE

ROLE OF BANKING SECTOR IN THE DEVELOPMENT OF AGRICULTURAL EXPORTS IN NIGERIA

BY

---
EE/H2013/01430
DEPARTMENT OF ----
SCHOOL OF ---
INSTITUTE OF ---

DECEMBER,2018



APPROVAL PAGE

This is to certify that the research work, "role of banking sector in the development of agricultural exports in nigeria" by ---, Reg. No. EE/H2007/01430 submitted in partial fulfillment of the requirement award of a Higher National Diploma on --- has been approved.

By
---                                                     . ---
Supervisor                                                  Head of Department.
Signature……………….                           Signature……………….        

……………………………….
---
External Invigilator



DEDICATION
This project is dedicated to Almighty God for his protection, kindness, strength over my life throughout the period and also to my --- for his financial support and moral care towards me.Also to my mentor --- for her academic advice she often gives to me. May Almighty God shield them from the peril of this world and bless their entire endeavour Amen.



ACKNOWLEDGEMENT

The successful completion of this project work could not have been a reality without the encouragement of my --- and other people. My immensely appreciation goes to my humble and able supervisor mr. --- for his kindness in supervising this project.
My warmest gratitude goes to my parents for their moral, spiritual and financial support throughout my study in this institution.
My appreciation goes to some of my lecturers among whom are Mr. ---, and Dr. ---. I also recognize the support of some of the staff of --- among whom are: The General Manager, Deputy General manager, the internal Auditor Mr. --- and the ---. Finally, my appreciation goes to my elder sister ---, my lovely friends mercy ---, ---, --- and many others who were quite helpful.


PROJECT DESCRIPTION: This work "role of banking sector in the development of agricultural exports in nigeria" research material is a complete and well researched project material strictly for academic purposes, which has been approved by different Lecturers from different higher institutions. We made Preliminary pages, Abstract and Chapter one of "role of banking sector in the development of agricultural exports in nigeria" visible for everyone, then the complete material on "role of banking sector in the development of agricultural exports in nigeria" is to be ordered for. Happy viewing!!!


ABSTRACT

Agricultural exports sector has been declining due to poor access to credit facilitiesat pre-shipment and post shipment stages as opposed to what is happening in other countries of the world.  This may be attributed to the banking sector not clearly identifying their major functions in boosting agricultural sector.Against this background, this study examined the role of banking sector in the development of agricultural export in Nigeria. The specific objectives were to: (i)to examine the contribution of banking sector to the development of agricultural exports in Nigeria; (ii) assess the impact of increased cost arising from exchange rate fluctuation on agricultural exports in Nigeria; (iii) evaluate the impact of interest rate on loans granted to the Agricultural sector in Nigeria.Ex-post facto research design was used and data of banking sector GDP, exchange rate, interest rate and agricultural exports from period of 2005-2015 were used. The study used descriptive statistics, pairwise correlation and generalised least square technique to analyse the secondary data extracted from NBS, Nigeria statistical bulletin among others for the period of 2005 to 2015. The study revealed that (i)banks does not provide adequate fund to the farmers needed for the production of Agricultural goods, (ii) fluctuation in the exchange rate allows the agriculturists to export agricultural products. (iii) interest rate has  significant influence on agricultural exports in Nigeria. The study therefore recommended that government should provide incentives and enabling environment that aid the activities of agricultural exporters, intervene in the level of interest rate given to agriculturists or investors from banks, government should ensure pre and post shipment finance in local currency through rediscounting facility and exchange rate should be stabilised.

TABLE OF CONTENTS
Title page                                                                                                                    i          
Certification                                                                                                                ii
Dedication                                                                                                                  iii
Acknowledgement                                                                                                      iv
Table of Contents                                                                                                       vi
List of Tables                                                                                                              x
Abstract                                                                                                                      xii
CHAPTER ONE: INTRODUCTION
1.1       Background to the Study                                                                               1                     
1.2       Statement of the Problem                                                                               5         
1.3       Research Questions                                                                                         6
1.4       Objective of the Study                                                                                   6         
1.5       Hypotheses of the Study                                                                                7         
1.6       Justification of the Study                                                                               7         
1.7       Scope of the Study                                                                                         8
1.8       Organization of the Study                                                                             8

CHAPTER TWO: LITERATURE REVIEW
2.0       Introduction                                                                                                    10
2.1       Conceptual Review                                                                                         10
2.1.1    Concept of Agricultural Exports                                                                    10
2.1.2    Concept of Agricultural Credit                                                                       13
2.1.3    Sources of Agricultural Financing                                                                  19
2.1.3.1 Bank of Agriculture                                                                                        20
2.1.3.2 Commercial Banks                                                                                          22
2.1.3.3 Central Bank of Nigeria                                                                                  22
2.1.4    Agricultural Credit Guarantee Scheme fund establishment                           23
2.2       Theoretical Framework                                                                                   25
2.2.1    Absolute Advantage Theory                                                                           25
2.2.2    Comparative Advantage Theory                                                                     27
2.3       Empirical Review                                                                                            29
2.4       Research Gap                                                                                                  38

CHAPTER THREE: RESEARCH METHODOLOGY
3.0       Introduction                                                                                                    40
3.1       Model Specification                                                                                        40
3.2       Research Design                                                                                             41
3.3       Population of the Study                                                                                  42
3.4       Sample Size and Sampling Technique                                                            42
3.5       Sources of Data                                                                                              42
3.6       Method of Data Analysis                                                                               43

CHAPTER FOUR: RESULTS AND DISCUSSIONS
4.0       Introduction                                                                                                    44
4.1       Data Description                                                                                             44
4.2       Data Analysis and Results                                                                              45
4.2.1    Descriptive Statistics                                                                                      45
4.2.2    Testing of Research Hypotheses                                                                     48
4.2.3    Model Summary                                                                                             51
4.2.4    Analysis of Variance                                                                                       52
4.2.5    Interpretation of Regression Coefficient                                                        53
4.3       Discussion of Findings                                                                                   54

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1       Summary                                                                                                         58
5.2      Conclusion                                                                                                       59
5.3       Recommendation                                                                                            59
REFERENCES                                                                                                          62

LIST OF TABLES
Table 4.1:        Data Description                                                                                             44
Table 4.2:        Descriptive Statistics                                                                                      46
Table 4.3:        Correlation Analysis                                                                                       49
Table 4.4:        Model Summary                                                                                             51
Table 4.5:        ANOVA Table                                                                                               52
Table 4.6:        Regression Results                                                                                          53


LIST OF FIGURE
Figure 4.1:       Mean Agricultural Exports                                                                 47

CHAPTER ONE
1.0       INTRODUCTION
1.1       Background to the Study
From the period of Nigerian independence to 1970s, the Nigerian economy was dominated by agricultural commodity exports. The immediate post independent Nigeria heavily depended on export of agricultural commodities for her foreign exchange earnings. In 1960 precisely, share of agricultural export particularly cocoa and rubber to total export accounted for virtually 90% (Onayemi&Akintoye, 2009; Central Bank of Nigeria, 2010; and Eleje, 2013).   According to Ogunkola, Bankole and Adewuyi (2006) and Okoh (2004), the situation later changed in the mid-1970s when crude oil constitutes 96% of total exports as against 4% for non-oil exports in Nigeria (a negative trend). As a result of that, the performance of the non-oil sector had little significance influence in the economy as a whole and the policies aimed at reversing the trend have been to expand agricultural exports in a bid to diversify the nation’s export base (Okoh, 2004).
Agriculture contributes to employment, food production, foreign exchange earnings and industrial inputs. In 2001, agriculture was about 41 per cent of GDP. Some 60 per cent of the workforce is employed in agriculture, predominantly smallholders (CBN, 2002). Nigeria has a total land area of 98.3 million hectares, of which only 71.2 million hectares are cultivable. Only 34.2 million hectares (about 48 per cent of the cultivable area) are actually being cultivated, and less than 1 per cent of the arable land is irrigated (FMARD, 2001). The modest growth between 5.5 per cent and 7.5 per cent in the agricultural sector over the period 1999–2005 has been traced to the favourable weather conditions, while services and commerce expanded following improvements in the purchasing power of consumer.
Nigeria, over the years has engaged herself in export trade. This is not only very pertinent in foreign exchange earnings, but also in its significant contribution to economic growth and development. In some countries that were not endowed with crude oil as Nigeria, agriculture have been found as the engine of growth especially through high productivity exports, a nation can take advantage of international division of labour and acquire desired goods and services from abroad at considerable savings in term of inputs productivity resources, thereby helping to increase the efficiency of export industry (Kehinde, 2012).

The country is far behind the new world major producers of agricultural products (especially cocoa and crop) such as Cote‘d’Ivoire, Ghana and Indonesia. One of the most dramatic events in Nigeria over the past decade was the devaluation of the Nigerian Naira with the adoption of a Structural Adjustment Programme (SAP) in 1986. A cardinal objective of the SAP was the restructuring of the production base of the economy with a positive bias for the production of agricultural items for exports. The foreign exchange reforms that facilitated a cumulative depreciation of the effective exchange rate were expected to increase the domestic prices of agricultural exports and therefore boost domestic production (Adubi&Okunmadewa, 2009). Bank credit is the aggregate amount of credit available to a person or business from a banking institution. It constitutes the total amount of funds financial institutions provide to an individual or business. A business or individual’s credit depends on the borrower’s ability to repay and total amount of credit available in the banking institution (Adubi&Okunmadewa, 2009).

One of the bank credits is agricultural credit which finances  farmers or ranchers as they plant crops, buy equipment, harvest, or do any other things necessary for operations but from which profits will not be realized for quite some time. Unfortunately, credits are not easily available for most of the farmers because of collateral and other things that are usually required by the commercial banks and other credit institutions. This makes difficult for large scale agricultural investment in Nigeria. Ogunfowora (2003) reported that credit is not only needed for farming purposes, but also for family and consumption expenses; especially during the off season period.
It is important to note that not all banks focus on agricultural finance. Agricultural banks require a specialised skill which may not be the core competency of some banks and financial institutions. In addition, agriculture is perceived to be a high risk sector especially with Nigeria agriculture dominated by smallholder farmer who quite often are not in a position to offer traditional securities. Lack of usable collateral together with production climate and price risk in agricultural finance failing outside of the traditional balance sheet lending approach (Adegeye& Ditto, 2005).
With the moves by the leading country of the world to diversify their economy, Nigeria is conscious of the danger signal this portray and this underscores the need to move away from total reliance on petroleum related revenues. These signals according to Soludo (2009) include the on-going global economic crisis that is threatening the growth and development agenda of the present administration, the crisis in the Niger delta which has interrupted petroleum operations in the past few years, and the frightening revelation that the United States of America, the highest buyer of Nigeria crude oil, Brazil and several other countries are seriously engaged in research for an alternative source of energy.
Alabi and Chime (2008) have attributed the present economic problem in Nigeria to the poor performance of the agricultural sector. One of the sectors expected to act as a catalyst towards the realization of this goal is agriculture. At present Nigeria has lost its role as one of the world’s leading exporters of agricultural commodities. In addition, the country is currently suffering from a declining as well as fluctuating income from its heavy dependence on oil exports. With the present situation in the oil market, it has become necessary for the country to reconsider its agricultural commodity export position. Therefore, this study is intends to assess the role of banking sector in the development of agricultural exports in Nigeria.
1.2       Statement of the Problem
With the fall in the global price of crude and the naira’s poor performance against dollar recently experienced in Nigeria, policymakers and private sectors have begun to diversify towards non-oil exports.  The non-oil export sector is faced with a lot of problems. For example, the problem of agricultural exports and indeed the entire non-oil sector has been made more complicated with influx of importers, customs agents and all manner of businessmen seeking to raise foreign exchange or generate income through exports. According to Ijaiya (2003), commercial banks credit to agricultural exports sector has been very low. Also, high cost of finance does not allow non-oil exporting industries to modernize outdated plants and machineries in Nigeria, which results in poor quality goods of non-oil exports (Odularu, 2008).
Access to banks financial services for agricultural exporters is one of the major problems stifling the growth of the sector in Nigeria, because of high interest rates and little disbursement in terms of the volume of credit (Ijaiya, 2003; Theodore, 2004; Sanusi, 2010). There is also the problem of increased cost arising from exchange rates fluctuations which has been identified by (Elumelu, 2016). The agricultural exports sector has been declining due to poor access to credit facilities at pre-shipment and post shipment stages as opposed to what is happening in other countries of the world (Azzam, 2015).
Commercial banks in Nigeria were unwilling to grant credits to small scale farmers because of the high rate of default associated mostly with loan repayment and lack of collateral security often demanded by banks during loan agreement (Kehinde, 2012). According to Okojie (2016), the reason could be lack of bank accounts, collateral, and  information regarding the procedure for accessing credits from banks limit  peasant farmers and rural women‘s access to credit from formal institutions. In view of these issues raised, this study aims at assessing the role of banking sector in the development of agricultural export in Nigeria.            
1.3       Research Questions
Based on the problems, the following questions are raised by the researcher:

  1. To what extent does banking sector contribute to the development of agricultural export in Nigeria?
  2. What is the effect of increased cost arising from exchange rate fluctuation on agricultural export in Nigeria?
  3. To what extent does interest rate affect the loans granted to the agricultural sector in Nigeria?

1.4       Objective of the Study
The general objective of the study is to examine the roles of banking sector in the development of agricultural export in Nigeria. However, the specific objectives include:

  1. To examine the contribution of banking sector to the development of agricultural exports in Nigeria.
  2. To assess the impact of increased cost arising from exchange rate fluctuation on agricultural exports in Nigeria.
  3. To evaluate the impact of interest rate on loans granted to the Agricultural sector in Nigeria.

1.5       Hypotheses of the Study
The following hypotheses are formulated by the researcher to actualise the objective of the study:
Ho1:     The banking sector has no significant impact in the development of agricultural      exports in Nigeria.
Ho2:     Increased cost of exchange rate does not have significant impact on agricultural     exports in Nigeria.
Ho3:     Interest rate on bank credit does not have significant impact on agricultural            exports in Nigeria.
1.6       Justification for the Study
The financial sector is expected to make significant contribution to agricultural exports in Nigeria. This study is set to examine the role of banking sector in the development of agricultural exports. It becomes important to carry out a research on this area of study so as to suggest ways of combating the perceived problems of farmers and to identify how the banking sector has been of help to agricultural exports. Also it sets out to proffer solutions to the problems being faced by the sector.
The relevance of this study will be useful to the government and the policy maker in making informed policies that will help in promoting agricultural exports in Nigeria. Also, this study will be of help to the regulators of financial sector to ensure effective monitoring of banks and implementation of policies that will boost the agricultural sector in Nigeria. This study will add to the body of existing literature that will provide a guide to those intending to carry out further research work in related topics.
1.7       Scope of the Study
This study provides an insight in the role of banking sector in the development of agricultural exports in Nigeria for the periods of 2005-2015.This period covers the period when the naira was overvalued to the present period where it has been devalued.Data is got from sources such as Central Bank of Nigeria statistical bulletin, National Bureau of Statistics, journals and articles.

1.8       Organization of the Study
The study is divided into five (5) chapters. Chapter one forms the introductory part of the study.This is where the main theme of the research is given. It comprises of the background to the study, statement of the problem, research questions, objectives of the study, hypotheses of the study, justification of the study, scope of the study and organization of the study. In chapter two, relevant literatures are reviewed on various concept and theories relating to the study. Also, the empirical works of previous researchers on this issue are reviewed. The next chapter which is chapter three which gives details of the methodology employed. Included in chapter four, are result and discussion of findings. Chapter five, which is the last chapter, concludes the study with summary, conclusions and also recommendations.



CHAPTER TWO: The chapter one of this work has been displayed above. The complete chapter two of "role of banking sector in the development of agricultural exports in nigeria" is also available. Order full work to download. Chapter two of "role of banking sector in the development of agricultural exports in nigeria" consists of the literature review. In this chapter all the related work on "role of banking sector in the development of agricultural exports in nigeria" was reviewed.

CHAPTER THREE: The complete chapter three of "role of banking sector in the development of agricultural exports in nigeria" is available. Order full work to download. Chapter three of "role of banking sector in the development of agricultural exports in nigeria" consists of the methodology. In this chapter all the method used in carrying out this work was discussed.

CHAPTER FOUR: The complete chapter four of "role of banking sector in the development of agricultural exports in nigeria" is available. Order full work to download. Chapter four of "role of banking sector in the development of agricultural exports in nigeria" consists of all the test conducted during the work and the result gotten after the whole work

CHAPTER FIVE: The complete chapter five of design and construction of a "role of banking sector in the development of agricultural exports in nigeria" is available. Order full work to download. Chapter five of "role of banking sector in the development of agricultural exports in nigeria" consist of conclusion, recommendation and references.

 

CLICK HERE FOR MORE RELATED TOPICS/MATERIAL


To "DOWNLOAD" the complete material on this particular topic above click "HERE"

Do you want our Bank Accounts? please click HERE

To view other related topics click HERE

To "SUMMIT" new topic(s), develop a new topic OR you did not see your topic on our site but want to confirm the availiability of your topic click HERE

Do you want us to research your new topic? if yes, click "HERE"

Do you have any question concerning our post/services? click HERE for answers to your questions


For more information contact us through any of the following means:

Mobile No phonelogo:+2348146561114 or +2347015391124 [Mr. Innocent]

Email address emailus:engr4project@gmail.com

Watsapp No whatsapp.html :+2348146561114


COUNTRIES THAT FOUND OUR SERVICES USEFUL

Australia, Botswana, Canada, Europe, Ghana, Ireland, India, Kenya, Liberia, Malaysia, Namibia, New Zealand, Nigeria, Pakistan, Philippines, Singapore, Sierra Leone, South Africa, Uganda, United States, United Kindom, Zambia, Zimbabwe, etc
Support: +234 8146561114 or +2347015391124

Watsapp Nowhatsapp.html
:+2348146561114


E
mail Address emailus:engr4project@gmail.com


FOLLOW / VISIT US VIA:

tweeter instagram.html pinterestusfacebook logo

Order Full Material(s)
Download Full Material(s)
Bank Accounts

Contact us

Hire a writer

Order/learn construction


View other related topics

Vrequently asked questions(FAQ)
View more related topics and download more material
Format = microsoft word

Chapters = 1-5 chapters


Price: N3,000.
»Accountancy (AC) project
» Agric engineering project topics
» Business admin and management project
» Banking and finance project
» Civil engineering project
» Co-operative economics and management project
» Computer science project
» Community Health Project
» Electrical/electronic/telecom/ power project
» Estate management project
» Education
» Human Kinetics & Health Education Project
» Industrial safety and environmental (ISET) project
» Mass communication project
» Mechanical engineering (ME) project
» Medical And Health Science Project
» Office technology and management (O.T.M) project
» Public administration (PA) project
» Public Health Education Project Topics
» Paramedic Project Topics
» Industrial Physics/Physics Electronics Project
» Science laboratory technology (microbiology option) project
» Agricultural science and engineering seminar
» Building engineering seminar topics/materials
» Civil engineering seminar topics
» Computer science seminar topics
» Environmental seminar topics
» Electrical/electronic/telecom/ power seminar
» Mechanical engineering seminar
» Physics / industrial physics/physics electronics seminar topics/materials