THE EFFECT OF RURAL BANKING SCHEME ON THE ECONOMIC DEVELOPMENT OF EDO STATE: A CASE STUDY OF OVIA NORTH EAST LOCAL GOVERNMENT AREA. A RESEARCH PROJECT MATERIAL ON ECONOMICS
ABSTRACT
The purpose of this study is to examine the effect of rural banking scheme on the economic development of Edo State, with emphasis on Ovia Local Government Area , Union Bank, fidelity Bank. The overriding problems in Nigeria whish affect the development of rural banking are the underdeveloped and poorly adopted financial practices which prevailed in the country. Furthermore, the project is also to take a look at the extent to which rural banking has been able to meet the needs of the people through their lending policies to finance project. Chapter one gave the insight of the background, statement of the problem objectives of the study, the method used in collection and analysis of data. Definition of terms and scope and limitation of the study. The second chapter deals with literature review. Chapter three describes the design and methodology, while chapter four reveals the data analysis and interpretation. The study was then summarized in chapter five, conclusion and policy recommendations were made.
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
In West Africa before the advent of the European, trade by barter was a phenomenon of the economy. The early stage of monetary development in West African was characterized by crude or primitive saving structures, where valuables are personally hidden in placed not easily detected or kept with some money lenders for custody. Although the term “banking” was not in use “savings: had already been a part of the community. Thus, the idea of banking was not completely foreign to the West African continent. The term “banking” come into existence in Nigeria, with the advent of the European. The numerous advantages associated with the banking institutions called for the rapid development of the banking industry. According to Mobouway, Okaniyan, banks are important from then point of view of economic development because they influence the thriftiness of the community, assist in the mobilization of saving and channel the savings mobilized into investment. Thus, as a result of this fast development, the primitive peasant of West Africa economy was in no time transformed into a modernized and commercialized economy. In view of banking advantages, both the federal and the state budgets and policy speeches. The emphasis on the need to develop the rural areas through the uses of rural banking in Ovia Local Government Area was inaugurated in 1973 in other to help the rural dwellers who mainly used other means of saving their money by lending it out to somebody. Another means is that, they gather themselves and start paying any amount of money to one particular person, this act is called “Osusu”.
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