THE ROLE OF BANKS IN FINANCING AGRICULTURAL CO-OPERATIVES SOCIETIES IN NIGERIA (A CASE STUDY OF NIGERIA AGRICULTURAL CO-OPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB) IN ENUGU
ABSTRACT
This research project is a very crucial study on the Role of Nigeria Agricultural Co-operative and rural Development Bank.  The study is motivated by the necessity to establish the extent of Agricultural Co-operatives.
To solve the research problem primary and secondary data was collected. The data were questionnaire and oral interview. The respondents comprised of personnel of the bank in organizing and presenting data collected, tables’ frequencies and percentages were used. Data analysis and interpretation give the following findings:
1.        Criteria for granting loan to co-operative is that they have an account holder, have viable and bankable project and should be credit worthy.
2.        The impact of NACRA has been very much via FEAP, NACB through micro and macro loans and PBN loans to co-operatives
3.        Collateral Securities do not pose much problem to give facility to farmers.
4.        Insurance cover is necessary to cover some degree of risk involved co-operative failure.
5.        The level of response to wards loan facilities is very satisfactory.
6.        Loan management by co-operatives is very satisfactory.
7.        When loan is not repaid, the guarantors are involved and auction of any real estate mortgaged.
Based on the findings the researcher recommends that:
Banks should constitute a feasible alternative for providing financial assistance to support all efforts for further development of co-operative sector.
Banks should develop their farmers by allowing agricultural loan to cover all stages of agricultural production consultation of agricultural specialist by farmer if need be lending should be basically for agricultural activities.
The conclusion of the study is the role NACRDB has major contribution to make in field of agricultural credit. It has proved to be an important channel in providing financial services particularly, credit to small farmers.
