Project Materials

GENERAL

THE DEVELOPMENTAL IMPACT OF RURAL BANKING IN NIGERIA

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CHAPTER ONE

1.      INTRODUCTION

Banking service when introduced in our rural areas will bring development or specifically economic development to the doorstep of every citizen in this country since between 70 – 80 percent of Nigerians lives in the rural area.

Every Nigeria want to go to the urban area because of availability of infrastructural amenities like electricity, good roads, pipe borne water, civilized operation, job opportunities and so on.  If these social amenities continue to exist in urban areas, life in rural areas will still remain underdeveloped.  Money they say is the blood that nourishes or gives life to any prosperous of a nation.  For money to accomplish its aims in an , it needs to be properly managed and controlled in the banking sector.

Agriculture is the second major sources that generate revenue to the Nigeria after oil industry.  The sector of the right from time has been neglected.  The rural areas have not felt any positive impact on the development plan but only recorded a decline in agricultural productivity, which shows that the rural areas have been neglected at the expense of the urban areas.

The banking industries one of every nations sectors that has a controlling impact on the particularly in terms of , this is why federal has continuously encouraged banks to expend their services and facilities not only to the urban cities but also rural areas.

1.1       MS AND OBJECTIVES

This research work is aimed at investigating the impact the rural banking services, commercial banks have on the productivity of small and medium agricultural farmers and the entire economic activities of the rural areas.  This project work also aimed at acquainting ourselves with the benefit of rural banking services in terms of mobilizing and organizing present farmers into efficient and active co-operative groups, small and medium scale farmers and integrated rural communities.

The objective of this research is to evaluate how effective credit allocation among productive activities the rural areas have been realized.

Finally, the aim of the project work is to suggest policy measures to in improving rural banking so as to have the desired development impact on the rural areas in Nigeria.

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