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Financial Theories

ANALYSIS OF THE CONTRIBUTION OF FORMAL FINANCIAL INSTITUTIONS TO CASSAVA PROCESSING IN BENUE STATE, NIGERIA

A PROJECT PROPOSAL

SUBMITTED BY

ESENWA ANTHONIA OBIAGELI

MATRIC NUMBER: PG/07/0030

DEPARTMENT OF AGRICULTURAL EXTENSION &RURAL DEVELOPMENT

UNIVERSITY OF AGRICULTURE ABEOKUTA

DECEMBER 2008

Introduction

In Nigeria agriculture has remained the largest sector of the economy.

It generates employment for about 70% of Nigeria’s population and contributes about 35% to Gross Domestic Product (GDP) with crops accounting for 80%, livestock 13%, forestry 3% and fishery 4% (FOS 1999).

Agriculture can be an important source of pro-poor growth especially in countries such as Nigeria where poverty is mainly rural and 60% of the rural populace are engaged in agriculture as their livelihood. (World Bank 2007).

Getting agriculture going in Nigeria will require a co-ordinated strategy comprising policy reforms, institutional restructuring and well targeted investment designed to upgrade rural infrastructure, boost productivity and stimulate increased competitiveness (World Bank 2005).

Recently some development /strategic programmes are taking place in the sector under the National Agricultural policy: the National Policy on Integrated Rural Development, the National Economic Empowerment and Development Strategy (NEEDS) and the Presidential Initiatives on rice, vegetable oil, sugar, cassava, tree crops and livestock industry respectively.

Three Government supported financial parastatals offer support to the sector:

the Nigeria Agricultural Cooperative and Rural Development Bank (NACRDB) that provides loans, mobilise rural savings and advisory services,

the Agricultural Credit Guarantee Scheme Fund (ACGSF) that focuses on credit guarantee only and

the Agricultural Credit Support Scheme (ACSS) that primarily subsidises commercial bank loans to the agric...