TABLE OF CONTENTS
Title page – – – – – – – – – i
Declaration – – – – – – – – – ii
Certification – – – – – – – – – iii
Dedication – – – – – – – – – iv
Acknowledgements – – – – – – – – – v
Table of contents – – – – – – – – – vi
List of table – – – – – – – – – ix
Abstract – – – – – – – – – xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study – – – – – – – 1
1.2 Statement of Problem – – – – – – – – 3
Objectives of the Study – – – – – – – 4
1.4 Research Questions – – – – – – – – 4
1.5 Research Hypothesis – – – – – – – – 5
1.6 Significance of the Study – – – – – – – 5
1.7 Scope and Limitation – – – – – – – – 6
1.8 Definition of Terms – – – – – – – – 7
1.9 Organisation of the Study – – – – – – – 7
CHAPTER TWO: LITERATURE REVIEW
2.1 The Concept of Agriculture – – – – – – – 8
2.1.1 The Role of Agriculture in the Economic Development of Nigeria – – 10
2.1.2 Agriculture and Employment – – – – – – – 11
2.1.3 Agriculture and Gross Domestic Product (GDP) – – – – 11
2.2 Agricultural finance – – – – – – – – 11
2.2.1 Categories of agricultural finance – – – – – – 13
2.2.2 Nature and scope of Agricultural finance – – – – – 14
2.2.3 Significance of Agricultural Finance – – – – – – 14
2.2.4 Importance of Agricultural Finance – – – – – – 15
2.2.5 Role of Agricultural Finance – – – – – – – 16
2.2.6 Status of Agricultural Finance – – – – – – 17
2.2.7 Strategy to Improve Agricultural Finance – – – – – 17
2.3 Source of Agricultural Finance – – – – – – 20
2.3.1 Characteristics of Agricultural Financing – – – – – 20
2.3.2 Nigerian Agricultural Finance Policies, Institutions, Schemes and Programmes – 21
2.3.4 Role of Credit in Agricultural Production – – – – – 23
2.3.5 Constraints to Agricultural Financing in Nigeria – – – – 25
2.3.6 Sustainable Development – – – – – – – 26
2.4 Case Study Review – – – – – – – 28
2.4 Theoretical framework – – – – – – 37
2.4.1 System theory – – – – – – – – – 37
2.4.2 Ignorant elite theory – – – – – – – – 38
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design – – – – – – – – 39
3.2 Population of the Study – – – – – – – 39
3.3 Sample Size and Sampling Technique – – – – – 40
3.4 Description of Research Instrument – – – – – – 41
3.5 Validity of Research Instrument – – – – – – 41
3.6 Method of Data Collection – – – – – – – 41
3.7 Method of Data Presentation and Analysis – – – – – 42
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0 Introduction – – – – – – – – – 43
4.1 Analysis of Respondents and Responses Section A: Personal Data – – 34
4.2 Test of Hypothesis – – – – – – – – 51
4.3 Discussion of findings – – – – – – – 64
CHAPTER FIVE: SUMMARY OF STUDY, CONCLUSION AND RECOMMENDATIONS
Summary of study – – – – – – – – 65
5.2 Conclusions – – – – – – – – 65
5.3 Recommendations – – – – – – – – 66
References – – – – – – – – 67
Appendix 1 – – – – – – – – 70
Appendix 11 – – – – – – – – 71
LIST OF TABLES
Table 4.1.1: Sex of Respondents – – – – – – – 43
Table 4.1.2: Age of Respondents – – – – – – – 44
Table 4.1.3: Level of Farming – – – – – – 44
Table 4.1.4: Senatorial District – – – – – – 45
Table 4.1.5: Level of Education – – – – – – 45
Table 4.1.6: Question 6: The financial policies adopted by government has affected agriculturist farming calendar. – – – – – – – – 46
Table 4.1.7: Question 7: You must not belong to government agricultural association to benefit from their programmes. – – – – – – – 47
Table 4.1.8: Question 8: Financial policies of government don’t only favours urban farmers – 48
Table 4.1.9: Question 9: There is a policy of percentage increased in the case of delayed loan return. – – – – – – – – – – 49
Table 4.1.10: Question 10: Prior knowledge (by the finance institution) of the farmer aids in securing funds for agricultural purposes. – – – – – 50
Table 4.1.11: Question 11: Previous agricultural programmes by government have not been fully satisfied before new introduction. – – – – – – 51
Table 4.1.12: Question 12: Agricultural programmes sponsored by the State government have captured the plans of Agriculturist. – – – – – – 52
Table 4.1.13: Question 13: I have benefited from government agricultural programme from 2007 – 2018. – – – – – – – – – 53
Table 4.1.14: Question 14: Agricultural programmes embarked upon by the Akwa Ibom State government at this period are such that ensures food sufficiency. – – 54
Table 4.1.15: Question 15: Agriculturist are not consulted for inputs before the introduction of new programmes. – – – – – – – – 55
Table 4.1.16: Question 16: The State government shows kin interest on the agricultural sector. 46
Table 4.1.17: Question 17: Insufficient funds for the agricultural sector have significantly hampered the growth and sustainability of the agricultural sector in Akwa Ibom State. – 57
Table 4.1.18: Question 18: Financial institutions don’t rate the agricultural sector in the state big enough to worth the commitment of sufficient funds. – – – 58
Table 4.1.19: Question 19: Agricultural development in Akwa Ibom State is significantly hampered by the diversion of funds meant for agricultural financing. – 59
Table 4.1.20: Question 20: Funds appropriated for agricultural purpose are not delivered timely for proper planning of farm year. – – – – – – 60
ABSTRACT
This study appraised agricultural finance and sustainable development in Akwa Ibom State. The study seeks to solve the problem of food security in Akwa Ibom State with the use of the ministry of agriculture. The researcher formulated three hypothesis three objectives and three research questions respectively. The researcher also adopted the system theory by Herbert spencer & Emile Durkheim and also the ignorant elite theory by Prof Stephen Oculi Oculi to guide the study. The researcher made use of survey method and structured questionnaire in getting data from the respondents that are selected at random. The population of the study was 429,900 gotten from the nominal role of the ministry of agriculture Akwa Ibom State. Base on the population a sample size of 399 was determined and used for the calculation of the study. The researcher made use of the chi-square at 0.05 level of significance to text the hypothesis since it is the best statistical tool that can determine between variables. Three Findings were revealed which are that food sufficiency in the state is dependent on the release of the funds budgeted for the sector. Also that the specific agricultural programme sponsored by the Akwa Ibom State government between 2007 and 2008 tends to affects the sustainable development of the state. And finally that there are great impacts of the shortcomings of the agricultural finance measures adopted by the Akwa Ibom State government in funding agriculture. Finally recommendations were made based on the findings which are that funds budgeted for the agricultural sector should be utilized effectively and efficiently to achieve a sustainable food sufficiency in the state. There should be a proper and development oriented agricultural programme that will enhance the development of the state, finally agricultural loans should be reduced and lenders should be encouraged to provide more credit and also interest rate policies that make for optimal credit provision should be encouraged.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Agriculture is the most comprehensive word used to denote the many ways in which crop plants and domestic animals sustain the global population by providing food and other products. It could be subsumed to be the science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool and other products.
Globally, agriculture has been identified as a major component in the achievement of the second millennium development goals to eradicate extreme poverty and hunger (Kersten,Hams, Liketand Maas(2017): United Nations, 2015) and as such the world’s government has placed so much focus on the development of agriculture across the world.Before the discovery and exploitation of oil in commercial quantities, agriculture was the main stay of the Nigerian economy (Nwosu 1999). This is no longer so as the government and policy makers battle to have agriculture regain prime place in aspects of Nigeria’s food production and economy. The discovery of oil in commercial quantities led to the abandonment of agriculture and the centralization of Nigerian economy on oil and this brought about low productivity which without urgent intervention targeted towards the growth of this sector, agriculture will not attain its fill potential (International Finance Cooperation, 2011; Olajide , Akinlabi, and Tijani. 2012).
If the focus of the world is to eradicate poverty using agriculture as a medium, new investments in agricultural research and perhaps, technological developments directed towards enhanced agricultural farming systems are required (Jones and Ejeta, 2016) and this introduces agricultural financing.
Agricultural finance is highlighted as; the financial services provided for agricultural production, processing and marketing (IFC, 2011); ranging from the institutional/formal and non-institutional/informal financial sources, to short term, medium term and long term loans to leasing.Agricultural finance “is a process of obtaining control over the use of money, goods and services for (agricultural purposes) and in the present in exchange for a promise to repay an agreed amount at a future date” (Ejogu, 2018:10). It is also having access to credit for use to improve the efficiency of farm production and as a means of adopting better technology (IFC, 2011). Hopkin, Barry, and baker (1983) referred agricultural finance as the means of acquiring and control of assets of assets, ownership by cash purchase or borrowing or leasing or custom-hiring. Warren (1973) defined agricultural finance as the economic study of the acquisition and use of capital in agriculture. It deals with the supply of and demand for funds in the agricultural sector of an economy.
According to William (1953) agricultural finance is the economic study of borrowing of funds by farmers; of the organization and operation of farm lending agencies and of society’s interest in credit in agriculture. Tendon and Dhondjal (1962) defined agricultural finance “as a branch of agricultural economics which deals with financial resources related to individual farm units. A combination of the above definitions indicate that agricultural finance entails the availability of a source of finance, the accessibility to the fund, utilization of the fund for agricultural purpose and a plan to repay the fund in the future.On the other hand sustainable development is the organizing principle for meeting human development goals while simultaneously have a sustaining ability of natural system to provide the natural resources and ecosystem services upon which the economy and society depend.
United Nations world commission on environment and development in 1987 released a report “Our Common Future” commonly called the Brudtland Report. The report gave a detailed definition of sustainable development;
“Sustainable development is development that meets the needs of the present without compromising the ability of the future generation to meet their own needs it contains within the two concepts; the concept of needs of the world’s poor to which overriding priority should be given and social organization on the environment’s ability to meet present and future needs”
In the light of the above points, this research will deal extensively on the various ways the government has financed agriculture and its impacts on sustainable development in AkwaIbom state from 2007-2018.
1.2 Statement of Problem
Oladiran (2010), citing One World Guides (2009), stated that “ food security has become the most intractable challenge for development agencies and that almost 1billion people experience hardship that hunger imposes, a figure which continues to rise even amidst the riches of the 21st century.” He said that “hunger exceeds 35% of the population in 15 African countries and food imports (especially cereals) are expected to rise to 190m metric tonnes by 2020, from 90m metric tonnes in 1990”.
Famogbiele, (2013) The food import bill of Nigeria since 2008 has been hovering around USD4bn (about N630 bn) yearly of which, in the year 2010 alone, rice importation bill was USD1bn (N155 bn), wheat USD1.1bn (N165 bn), fish USD 0.7bn (N105 bn), sugar USD 0.4bn (N60bn), etc, according to the 2010 annual report of CBN. By 2012, Nigeria annual import bill on rice alone had exceeded USD2.0bn (N365bn-[N1bn daily]). It is said that a strong and efficient agriculture should ensure, in a nation, adequate food security for the growing population, generate employment, enough raw materials for the industries and sustenance of balance of payment equilibrium. A sustaining growth in agriculture is a major factor in the eradication of poverty and hunger as it aids reasonable stability in the prices and availability of food, apart from being the foundation of export earnings which sustains the balance of payment equilibrium; it also ensures industrial growth of a nation with high capacity utilization not only through the production and smooth flow of raw materials but also release of labor and consequently, full employment.
Similarly to some sectors those who invest on agriculture particularly local farmers do not have access to procure mechanized farm machineries like tractors, harvesters, tillers etc, farm input like fertilizers, pesticide, herbicide which all this things will aid in yielding a greater harvest. In this part of the country farming cannot be said to be in commercial because farmers have not been able to carry it out because of above mentioned issues so they only engage in subsistence farming to carter for himself and his family.As a result of this issue, the problem of food availability has been a problem to the masses, hence affecting sustainable development in Akwa Ibom State.
1.3 Objectives of the Study
The main purpose of this study is to examine how agricultural financing can affect sustainable development in Akwa Ibom state. The sub objectives of the study are to;
To examine the financial policy measures adopted by Akwa Ibom State government in funding agriculture between 2007 and 2018
To identify specific agricultural programmes sponsored by Akwa Ibom state government between 2007 and 2018.
To find out the shortcomings of the agricultural finance measures adopted by Akwa Ibom State government in funding agriculture.
Research Questions
For the purpose of the study, the following research questions are considered important and were used to find suitable answers to these research problems. They include;
What financial policy measures have Akwa Ibom State government adopted to fund agriculture between 2007 and 2018?
How does the agricultural programme sponsored by the Akwa Ibom State government affect the sustainable development of the State?
What are the shortcomings of the agricultural finance measures so far adopted by Akwa Ibom State government in funding agriculture?
Research Hypothesis.
The above hypothesis are represented in alternate form;
- H1 Food sufficiency in Akwa Ibom State is dependent on total release of fund budgeted for agricultural purposes.
- H1: The agricultural programmes embarked upon by Akwa Ibom state government do contribute to food sufficiency and sustainable development
- H1: Insufficient funding is the worst problem to the achievement of food sufficiency in Akwa Ibom State.
1.6 Significance of the Study
This research on agricultural, financing, and sustainable development, a case study of Akwa Ibom Ministry of Agriculture from 2007 to 2018 respectively, goes with great benefit, which will be significant to governmentin all spheres to the development of a sustainable state.
Furthermore, the study also has a great impact as it contribute greatly to the scholarly discourse in widening the knowledge on how to facilitate sustainable development through a proper and adequate financing to the agricultural sector in Nigeria and Akwa Ibom State in particular. It also maps out the challenges which are facing the achievement of the sustainable of developed state and the instrument to be used in order to achieved it.Agriculture, the bedrock for sustainability cannot be achieved without a good and proper financing through which will aid in the improvement of food availability. This work will be useful to researchers and students who have a similar interest.
1.7 Scope and Limitation
The study is on investigation into the government policies on agriculture on how to foster sustainable development with a particular emphasis on Akwa Ibom State ministry of agriculture. The study is however limited to the period of 2007 to 2015.
One of the main limitations was time, as a result of other academic activities could not take a greater sample for the study. Secondly the researcher also had finding challenges. As an undergraduate student, studying all the agricultural zones of the state was a tedious job in termsof finance, hence the researcher restricted his sample to only one community within each agricultural zone for sampling. The third limitation which the researcher encountered was the problem of data collection because of the respondent met were either illiterate or feeling reluctant to give time for response. Inspirits with the above limitation, it could not be a maligns the success of the research.
