ABSTRACT

 The study examined the role of commercial banks funding agricuilure in Nigeria. (A J case study of the Union Bank of Nigeria plc Umuahia Branch). The primary objective study was to compare the bank loans and advances to the agricultural and non-agricultural sector to determine the agricultural sub-sector with the highest finding and union hank's performance tinder (lie central bank's guidelines. Two sets of questionnaires were used for data collection, loan beneficiaries were given one while the other one was given to he financial institution in the name of union bank of Nigeria plc Umuahia. The data collected were analyzed by the use of simple descriptive statistical techniques like percentages, tables and averages, histogram and pie chart. The period of 5 years was selected for this study ranging from 1 998- 2002. 1-lowever the study shows that the agricultural sector was under funding giving by the fact that money set aside for agricultural financing was diverted to the nonagricultural sector. More so, during this period there were variations in the interest rates each year. The study further revealed that more loans were granted to the food crop sub-sector than the poultry and livestock sub-sector. However, it was discovered that Union 13ank of Nigeria plc Umuahia have not been complying with the CBN's guidelines which led to the decline in the funding of the agricultural sector. This study however recommends that the Central Bank of Nigeria should enforce the compliance of its policy on agricultural finance and its prompt payment x of bank claims so as 10 aid. continuous release of loans to farmers. It is equally important that ' 1nion Bank put in place a proper and efficient monitoring and supervision of loans given to farmers in order to curb the act of diversion and reduce default.