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Assessment of Agricultural Credit Schemes collaboration with Bank of Agriculture, in Rivers State, Nigeria

I.O. Okidim
A.A. Okuduwor
E.C. Chukwuigwe
B.R. Kpaama


This study assessed the agricultural collaboration credit schemes implemented by Bank of Agriculture in Rivers State using cross sectional data as at December, 2022 from the Bank’s Credit Situation Reports (SITREP) on the collaboration credit schemes and the  Memorandum of Understandings (MOU) of the schemes. This was supported with information obtained through focused interview with  five(5) key staff of the Bank who were purposively selected because of their involvement in the implementation of the schemes. The  method of data analysis adopted was descriptive statistics. The results showed that the Bank implemented five (5) collaboration schemes namely: Niger Delta Development Commission (NDDC)/Bank of Agriculture Credit Scheme, Flour Millers Association of Nigeria (FMAN)/  Bank of Agriculture Credit Scheme, Rice Farmers Association of Nigeria (RIFAN) / Bank of Agriculture Credit Scheme, Ministry of Niger  Delta Affairs (MNDA) / Bank of Agriculture Credit Scheme, and International Fund for Agricultural Development (IFAD) / Bank of  Agriculture Credit Scheme, all focused on credit delivery activities in line with the Bank’s mandate and areas of competences.  Performance was very poor on repayment, amount in default and sustainability under all the schemes. Hence, none of the schemes became revolving and sustainable as originally planned. On the economic impact of the credit collaboration schemes on the Bank’s  operations, total credit portfolio was increased by 21.30%, monthly income level rose by 2.89%, monthly expenditure increased by 16.66%  ,total customers base rose by 3.2% and amount in default increased by over 100%. While net monthly income and repayment rate  declined by 1.46% and 22.73% respectively. The nature and behaviour of the credits beneficiaries was the major constraint that impeded  performance. The study therefore, recommended that the collaborating partners should not be responsible for the selection and introduction of credits beneficiaries under the schemes. Beneficiaries should approach the collaboration credit schemes themselves for  objective assessment that will support improved performance. The study also recommended that payment of penalty should be included  in the Memorandum of Understanding guiding the collaboration credit schemes to check counterproductive conducts of the partners. 

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