THE ROLE OF FINANCIAL INSTITUTIONS IN DEVELOPMENT OF AGRICULTURE IN NIGERIA

THE ROLE OF FINANCIAL INSTITUTIONS IN DEVELOPMENT OF AGRICULTURE IN NIGERIA

CHAPTER ONE

INTRODUCTION

BACKGROUND TO THE STUDY

Nigeria is endowed with natural resources, large fertile farmland, wide range of crops, and river amongst others. Despite its abundant nature resources it is faced worth a poor food situation. The poor food situation is traceable to the decline in the agricultural sector. The problem of feeding and provision of natural resources is increasing by the day. However, several efforts are being made to improve the standard.

Prior to the discovery of petroleum in Nigeria agriculture used to be the highest foreign exchange resources earner and its contribution to gross domestic product GDP has been estimated to about 62.63% in 1960, 48.08% in 1970, and 20.63% in 1980. Recently due to the growing awareness of the role of agriculture, the various governments have intensified efforts aimed at transforming from its present subsistence level to a market oriented production. One of those efforts was the ban made on importation of agricultural products like palm oil, maize and rice. This was done to encourage improvements on our production standard.

Due to the fall in the level of production from decade to decade, the country could no longer feed the large population, provide raw material for domestic industries, engage in export of agricultural produce and employ the labor force of the country despite the abundance of human and material resources.

In spite of growing urbanization, Nigeria is known to be predominantly rural in nature and majority of the population is dependent directly or indirectly on agriculture for their livelihood.

THE ROLE OF FINANCIAL INSTITUTIONS IN DEVELOPMENT OF AGRICULTURE IN NIGERIA