– The Effect of Microfinance Banks Services on Agricultural Production of Members of Cooperative Societies in Awka South Local Government Area of Anambra State –
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ABSTRACT
The study examined the on Agricultural Production of Members of Cooperative Societies in Awka South Local Government Area of Anambra State.
The study provides empirical evidence on the socioeconomic characteristics of the members of the , the extent to which microfinance banks have provided financial and non-financial needs of the farmer.
To determine if a relationship exists between the levels of access to microfinance financial and non-financial services and the productivity of the farmer members and the challenges farmers face in accessing services of microfinance banks.
Three (3) microfinance banks and seventeen (17) agricultural cooperatives were selected using multi-stage random sampling as well as judgmental nonrandom sampling. Descriptive statistics and t-test were used to analyze the data collected.
The results obtained from the t-test revealed that microfinance banks have provided financial and non-financial needs of farmer cooperative members (p<0.05)and that there is a significant relationship between the level of Microfinance banks services and productivity of farmer cooperative members and in Awka South LGA of Anambra State (p<0.05).
Therefore, based on the findings, it was therefore recommended that Microfinance banks in Awka South LGA of Anambra State provide cooperative members with training on for easy and effective products, and also proper advice should be given to cooperative farmer members on how best to operate their farm activities.
TABLE OF CONTENTS
Title page i
Certification ii
Approval iii
Dedication iv
Acknowledgement v
Abstract vi
Table of contents vii
List of tables x
CHAPTER ONE
1.0 introduction 1
1.1 background of the study 1
1.2 statement of the problem 3
1.3 research questions 5
1.4 objectives of the study 5
1.5 research hypothesis 6
1.6 scope of the study 6
1.7 significance of the study 6
1.8 limitations of the study 7
CHAPTER TWO
2.1 Conceptual review 8
2.1.1 Concept of microfinance 8
2.1.2 Microfinance services 11
2.2 Microfinance policy measures and institutions 14
2.2.1 Microfinance policy measures 14
2.2.2 Microfinance policy targets 15
2.2.3 Policy objectives 16
2.2.4 Cooperative members 17
2.3 The role of microfinance in agricultural production 18
2.4 Agricultural production and productivity 20
2.5 The challenges of farmers in accessing microfinance services 22
2.6 Review of related empirical study 24
2.7 Theoretical Review 27
CHAPTER THREE
3.0 Research methodology 28
3.1 Research design 28
3.2 Area of study 28
3.3 Population of study 29
3.4 Sample technique and Sample size 30
3.5 Sources of data 33
3.6 Description of instrument for data collection 33
3.7 Validity of Research Instrument 34
3.8 Reliability of Test of Data Collection Instrument 34
3.9 Measurement of variables 35
3.10 Administration and collection of research instrument 37
3.11 Methods of data analysis 37
CHAPTER FOUR RESULTS AND DISCUSSION
4.1 Socioeconomic characteristics of members of cooperative societies 39
4.1.1 Sex 42
4.1.2 Age 42
4.1.3 Family size 42
4.1.4 Farm size 43
4.1.5 Family experience 43
4.1.6 Educational qualification 43
4.1.7 Monthly income 44
4.1.8 Monthly savings 44
4.2 Provision of financial and nonfinancial needs of cooperative members by microfinance banks 44
4.3 Improvement of farm productivity of the cooperative members by microfinance banks financial and nonfinancial services 47
4.4 Challenges of access to financial and non-financial services from microfinance banks 49
4.5 Testing hypothesis 50
4.5.1 Testing hypothesis one 50
4.5.2 Testing hypothesis two 51
CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATION
5.1 Summary of findings 52
5.2 Conclusion 53
5.3 Recommendation 54
Reference 55
Appendix 60
INTRODUCTION
1.1 Background of the Study
Lack of access to credit has negatively affected poor farmers and rural dwellers for many years. Rural people need credit to allow investment in their farms and small businesses, to smooth consumption and to reduce their vulnerability to weather and economic shocks.
Because they have little access to formal financing institutions, poor rural people follow sub-optimal risk management and consumption strategies and rely on costly informal credit sources (FAO, 2010).
To this end, Eluhaiwe (2008) noted that microfinance banks were established in Nigeria in 2005 for the purpose of providing economically active poor and low-income earners financial services, to help them engage in or expand their businesses.
By definition, microfinance refers to the provision of financial services to the poor or low-income clients including consumers and the self-employed Ledgerwood (2010).
According to Robert(2009), microfinance refers to movements that envision a world in which as many poor or near-poor households as possible have permanent. Access to an appropriate range of high-quality financial services including not just credit but also savings, insurance, and fund transfers.
In addition, Eluhaiwe (2008) stated that microfinance is about providing who are traditionally not served by conventional financial institutions. Three features distinguish microfinance from other formal financial products.
REFERENCES
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Adams, D.W., Douglas, H and Von Pischke, J.D (eds) (2011) Undermining Rural Development with Cheap Credit Westview press, Boulder and London.
Adedayo, A. and Yusuf, O.R. (2004). Cooperatives and Poverty Alleviation in Alleviation and food Production in Saharan Africa. Seminar paper on Risk Assessment of Global Agrifood Production Chains. Department of Economics and Management, University of Helsinki, Finland.
Adeyemi, K.S (2008), Institutional Reforms for Efficient Microfinance Operations in Nigeria: Central Bank of Nigeria. Bullion, 32(1), 26-34.
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Anyanwu, C.M (2009), Microfinance Institution in Nigeria: Policy Practice and potentials. Abuja: CBN press.
Bamisile, A.S (2006), Developing a Long term Sustainable Microfinance Sector in Nigeria: The Way Forward. http://seepstageforumone.com/content/library/detail/4609
Bright (2008), Access for all: Building Inclusive Financial System. Washington. C GAP/ World Bank, pp. 35-57.