DEVELOPMENTAL IMPACT OF RURAL BANKING IN NIGERIA

(A CASE STUDY OF UNITED BANK FOR AFRICA (U.B.A) PLC)

ABSTRACT

          This research work is aimed at bringing into light the Development impact of rural banking in Nigeria’s rural area and how it affects the economy in general. For the purpose of orderly presentation of relevant materials, the main body of this work has been divided into five chapters

          The first chapter which is the introduction consider among other things problems identification/statement of problems, Rational of the study, Significance of the Study, Background of the Study and Definitions of the Terms used.

          Chapter two (2) focuses on the literature review, Theoretical Review and Empirical Review which discusses on banking marketing awareness and acceptance, the social responsibilities facing banks, rural banking and agricultural development, rural banking scheme and evaluation of the rural banking scheme among others.

          The third chapter deals with hypothesis of the study, research methodology, sources of data and limitation of the study.

          The fourth chapter shows data presentation, analysis of data and discussion of the results.

          The fifth and final chapter focuses on the summary, conclusion and recommendation.

TABLE OF CONTENTS

Title Page                                                                                ii Approval Page                                                                        iii

Dedication                                                                               iv

Acknowledgement                                                                             v

Abstract                                                                                  vi

Table of Contents                                                                    vii

CHAPTER ONE

1.0     Introduction                                                                            1

1.1            Statement of the Problem                                                        1

1.2            Rational of the Study                                                     2

1.3            Significance of the Study                                                         3

1.4            Background of the Study                                                        4

1.5            Definitions of the Terms Used                                       8

CHAPTER TWO

2.0            Literature Review                                                          13

2.1     Theoretical Review                                                        13

2.1.1 Banking Marketing Awareness and Acceptance             16

2.1.2 The Social Responsibilities Facing Banks                      17

2.1.3 Rural Banking and Agricultural Development               21

2.1.4 Rural Banking and Rural Infrastructural Development  22

2.1.5 Rural Banking and other Development                                    24

2.2            Empirical Review                                                          25

2.2.1    The Rural Banking Scheme                                           25

2.2.2    Evaluation of the Rural Banking Scheme                      34

2.2.3    Measures for Improving Banking Habit in Nigeria                 39

CHAPTER THREE

3.1            Hypothesis of the Study                                                          42

3.2            Research Methodology                                                  43

3.3            Sources of Data                                                             45

3.4            Limitation of the Study                                                  45

CHAPTER FOUR      

4.1              Data Presentation                                                                   46

4.2              Analysis of Data                                                           49

4.3              Discussion of Results                                                   55

CHAPTER FIVE

5.1              Summary                                                                      57

5.2              Conclusion                                                                    60

5.3              Recommendations                                                        62

Bibliography                                                                  66

CHAPTER ONE

INTRODUCTION

1.1     PROBLEMS IDENTIFICATION/STATEMENT OF THE PROBLEM

According to Osuntogun and Adewuimi (1983).

          The commercial bank is a profit making organization and as such there is geat fear by operators of commercial banks in establishing in the rural areas, this is because like every profit making organization they would not want to lose their business. But it has been that rural banking is in dispensable if the Nation is to develop its rural area will development of one’s rural area may not be realized it the serious of commercial banks are not at the reach of our rural dwellers.

          This project work is designed to measure what extent the rural commercial bank have been able to involve the rural dwellers in economic activities in terms of awareness and the influence on their style of living through banking activities and how successful the banks are measuring up with their major aim of existence.

          This research work is aimed at bringing into light the development impact of rural banking in Nigeria rural areas and how it affect the economy in general.

          It is also aimed at investigating the impact of the rural banking services.

1.2     RATIONAL OF THE STUDY

          The reason for the study is aimed at finding out the development impact rural banking in Nigeria has on rural areas/rural dweller.

          The study is important now because rural banking in Nigeria increases the productivity of small and medium agricultural farmers and the entire economic activities of the rural areas.

          The study is necessary now in the sees use that it leads to infrastructural development of the rural areas that is provision of basic amenities like electricity, good roads and pipe bore water etc.

          Finally study is important because it leads the rural dweller to cultivate banking habits of depositing their money in the banks and stop their old way of burying money the ground with clay pots.

1.3     SIGNIFICANCE OF THE STUDY

                   The study is significant in many aspects.

          Firstly would enable our rural farmers and industrialists to obtain loans from the banks to reduce the hardship involves in banks acquiring farm inputs as well as cultivating their farms and building of firm and industries.

          Secondly, individuals and rural dweller will through this study cultivate banking habits and be enlighten on the activities and the benefits of banking industries.

          Thirdly, the findings will serve as a guide to other bank that has no branches in the rural areas to know that impact of rural banking in our rural areas.