CREDIT MANAGEMENT TECHNIQUES IN AGRICULTURAL CO-OPERATIVE BANK IN NIGERIA

ABSTRACT

This project is written to be useful to all who are interested in co-operative organizations, banks and the general public. This is to reveal the process of effective management of credit in Co-operative Agricultural Bank in Enugu.  In this project, one finds out the means of which this Bank of Agriculture grants loans to public.  For example, critical examining showed that BOA grants two broad categories of loans namely: micro and macro.  At the macro level, only agricultural projects like agro processing, marketing, production, etc are considered.  While non-agricultural projects financed under micro include artisans such as vulcanisers, road side mechanics, barbing, hair dressing saloons etc.  Factors militating against effective credit management in Agricultural Co-operative Banks in Enugu were revealed both economical and political. The method use in collecting data for this project is presented in tables and analysed using simple percentage rating.  Much recommendations on the way/ways of improving co-operative credit management is critically highlighted.

CHAPTER ONE

1.0     INTRODUCTION

1.1  BACKGROUND OF THE STUDY:

Bank of agriculture is the nation’s apex agricultural and rural development financial institution. As a development finance institution it is government owned (CBN 40% and federal ministry of finance 60%) and supervised by federal ministry of agriculture. The bank was incorporated as Nigerian Agricultural Bank (NAB) in the year 1973 and in the year 1978 was renamed Nigeria Agricultural and Co-operative bank (NACB).

Subsequently in the year 2000, it was merged with the people’s bank of Nigeria (PBN) and took over the risk assets of Family Economic Advancement Programme (FEAP) to become Nigeria agricultural Co-operative and Rural Development Bank. A plan to reposition the bank into an effective and sustainable national agricultural and rural development finance institution in 2010 led to a further name change to Bank of Agriculture (BOA). Bank of agriculture limited is dedicated primarily to agricultural financing at both the micro and macro levels as well as micro financing of small and medium scale enterprises.

The bank has a 3-tier administrative structure.  The Head Office is in Kaduna and there are six zonal offices located at Abuja, Kano, Bauchi, Enugu, Port Harcourt and Ibadan.  Under the Zonal Offices, there is a network of over 200 branches.  Enugu zonal office is responsible for monitoring and supervision of the activities of the 26 branches in the South-East zone which are distributed as follows: