The role of banks in financing private sector investment in agriculture; Improving institutional financing of private agriculture in Nigeria: the role of the Central Bank of Nigeria. (2 papers)
Ajakaiye, M.B.; Ezeugoh, S.C.
The private sector and Nigeria' s agricultural development: 235-242; 243-250
1984
Document Number: 558016
The first paper discusses the contribution of the banking sector to the development of Nigerian agriculture. It focuses on the role of the Central Bank of Nigeria, the commercial banks, the merchant banks and the development banks in financing private enterprise investment in Nigeria's agriculture. It suggests that: (1) insurance companies should be mandated to plough part of their profits into agriculture; (2) the National Insurance Corporation (NICON) should launch an agricultural insurance scheme; (3) banks should take equity participation in agricultural concern; and (4) should finance private investment in agriculture through the leasing of equipment and machinery. The second paper considers the main instruments used by the Central Bank of Nigeria to transmit funds to the private sector for agricultural development. These include the credit guidelines which regulate the minimum percentage of overall lending of both commercial and merchant banks that should be granted for agricultural production, and the Agricultural Credit Guarantee Scheme. The operations of the Nigerian Agricultural and Co-operative Bank are also discussed.