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Social Sciences

The Impact of Financial Institution in Agricultural Development

Bachelors Degree

It is a known fact that agriculture is the lifeblood of the Nigerian Economy. The sector (Agriculture) has contributed immensely to the development of the Nigerian Economy. The contribution of Agriculture to economic development cannot be overemphasized. Since independence (1960) the sector still provides employment for a large percentage of the population.

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It is a known fact that agriculture is the lifeblood of the Nigerian Economy. The sector (Agriculture) has contributed immensely to the development of the Nigerian Economy. The contribution of Agriculture to economic development cannot be overemphasized. Since independence (1960) the sector still provides employment for a large percentage of the population. The economic growth of most developing countries, Nigeria inclusive depends to a great extent on the growth of the agricultural sector. In Nigeria, like in most of the developing countries, the majority of the farmers still use traditional inputs like hoes and cutlasses for farming (Federal Ministry of Agriculture, 1981). It is imperative at this juncture to have a look at the term Agriculture. Agriculture refers simply to the cultivation of crops and rearing of animals both for consumption (subsistence) and financial purposes (commercial Agriculture).

Financial institutions are organizations which raise funds from individuals and corporations and invest as principal in the stock market using professional management and operating within the constraints provided in their own articles, trusts, deeds and legal consideration e.g. commercial banks (NACRDB, First Bank, Zenith Bank, etc).

Agricultural development, on the other hand, refers to profound changes in farming systems from simple production techniques to modern highly productive and commercially profitable farming systems. This involves the substitution of low bunching seed varieties and animal breeds within irrigated areas where rainfall is sufficient for farming. All these are referred to as agricultural transformation.

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