1.1 Background to the Study
The role of banks is critical to the development of a nation in terms of Credit to agricultural sector, the rural areas and small business in general. This is because it drives capital formation and technology upgrade Anyanwu, J.C. (2002). Bank of Agriculture activity in this area involves the direct making of loans and strengthening of local Micro Finance Banks, which deliver credit at the local community level.
The bank has a mandate to provide low cost credit to small holder and commercial farmers, and small and medium rural enterprises. It also provides micro financing to small and medium scale non-agricultural enterprises. It aimed at ensuring effective delivery of agricultural and rural finance services on a sustainable basis to support the national economic development agenda, including food security, poverty reduction, employment generation, reduction in rural to urban migration, less dependency on imported food items, and increase in foreign exchange earnings Adeleke, S. & Damilola, F. A. (2013).
The bank have embarked on various initiatives to strengthen the cooperative credit structure at local and state government level as well as rural micro finance banks. The effect is that adequate and timely credit is made available to the needy Ketu, A. A. (2008). In order to reinforce productive and the growth of the Nigerian economy, Bank of Agriculture began the implementation of a number of developmental and promotional activities such as:-
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