ABSTRACT

This study was designed to examine the impact of Development Banks in Agricultural financing in Nigeria with special concentration on the Nigerian Agricultural Cooperative and Rural development Bank (NACRDB) from 1996-2005.The following among others were the problems that prompted this study, low productivity, lack of mechanization, misallocation of funds by the bank, misappropriation of the funds by the farmers, inadequate funding on the part of government and neglect of agricultural practices by most Nigerians. The objectives of the study were, to determine the impact of development banks in supply of agricultural finance, to determine the impact of agricultural output on economic growth of the country. The following null hypotheses were formulated to guide the study, development banks have contributed negatively to Agricultural fmancing in Nigeria, there is no significant relationship between Agricultural financing and the economic growth. However, other peoples work who have worked on related subjects matter were reviewed. The study was mainly based on secondary data collected from the CBN statistical bulletin volume 15 of 2005; with regression analysis for the testing of the hypotheses, using SPS S package of computer programme. The study found out that, development banks have contributed positively to agricultural fmancing in Nigeria, that there is a positive relationship between agricultural financing and agricultural output. The study also made some recommendations such as: development banks shall always be maintained by government. Federal and states government should ensure that there are markets for the sale of these agricultural products. The bank should employ qualified agricultural staff for identification of viable agricultural project and proper supervision of on-going projects so as to inculcate the habit of using modem agricultural techniques to the farmers. Loans from the bank shall be given to known and practicing farmers. There shall be monitor team to examine the claims of the farmers.