CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
Nigeria is endowed with
natural resources, large fertile farmland, wide range crops, and river amongst
others. Despite its abundant natural resources it is faced with 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 improved the standard.
Prior to the discovery
of petroleum in Nigeria agriculture used to be the highest foreign exchange
resources earner and contribution to gross domestic product GDP has been
estimated to about 62.63% in 1960, 48.08% in 1970s, 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 natural and
majority of population is dependent directly or indirectly on agriculture for
their live hood. Credit delivery is perhaps one of the most important roles of
microfinance banks, as the loans extended are used to expand existing
businesses and in some cases to start new ones. According to CBN (2008)
microfinance loans granted to clients is increasing from 2007 to date and most
of it goes to financing micro-enterprises in rural areas.
Ketu (2008) observed
that Microfinance banks have disbursed more than eight hundred million
micro-credits to over 13,000 farmers across the country to empower their
productive capacities. As such it is expected that agricultural output will
increase with the increase in finding. The entrepreneurial capacity of the
farmers we thus improve.
1.2
STATEMENT OF RESEARCH PROBLEM
According to Anyanwu
etal (1997:14)eagriculturalsector“thhasbeen recognized for a long time as an
important sector to Nigeria economy and development is one of the crucial
requirements for the overall economic growth.
He noted further that
the declined in agricultural activities might appear natural in any development
process, it is obvious that in Nigeria agricultural activities would remain the
most important single sector for some time to come. He emphasized that in the
past, development planners have introduce programs such as national accelerated
food production project (NATPP), green revolution programs (GRP), In
search for all appropriate technique in order to increase farm output and
productivity and such program have at one time been implemented.
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