Performance Review of the Bank of Agriculture in Katsina State, Nigeria

Abstract

Aims: The study aims to review the performance of the Nigerian bank of agriculture, Katsina state, in terms of micro credit disbursement and loan recovery. Study Design: Reviewing the bank performance in terms of micro-credit delivery and loan recovery from the year 2013 to 2015. Place and Duration of Study: Katsina state, Nigeria and College of Economics and Management, Shenyang Agricultural University, Shenyang, 110866, China from Sep, 2015 to Sep, 2016. Methodology: Data was collected using structured questionnaire administered to a hundred and seventy six randomly sampled money borrowers from the bank of agriculture. Similarly secondary data on the bank’s loan disbursement for the period under study was collected. The collected data were analyzed using descriptive statistics and the data was analyzed using loan repayment and loan default rate equations. Results: The study result revealed that, about 81% of the borrowers from the bank are males, 55% of them are in their productive ages and 49% among them had no formal education and 32% of the borrowers complained of the inadequate number of bank branches in the region. The study also revealed that a total of $164889.68 was disbursed by the bank to 398 borrowers in the years under study. Furthermore the bank has recorded 79% loan repayment rate from 2013 to 2015. Conclusion: Based on the findings, it is recommended that the bank should be restructured administratively and repositioned by employing more competent and better experienced banking personnel. Also, government should inject more funds into the bank.