Roles of Commercial Banks among Farmers in Ibadan South West Local Government Area of Oyo State

Abstract

This project access the role of commercial banks among the peasant farmers and the commercial farmers in Ibadan South West Local Government Area of Oyo State, Eighty questionnaires were administered. The sampling technique which was used for data collection was a random sampling technique that is much suitable for data collection using questionnaire instrument for collection while hypothesis was tested using chi-square. Results showed that (51.3%) of the respondents were male while (48.8%) of the respondents were female which means that males are more prominent in the business. Considering the literacy level, (20%) of the farmers had a formal education, (23.8%) attended modern school, (32.5%) had NCE/ND while (23.8%) of the farmers had HND/B.Sc. From the field survey, it shows that the majority of the projects the farmers in Ibadan south west local government embark upon are fishery project, vegetable project, poultry, and animal system. The majority of the projects the financial institutions embark upon are fishery project and vegetable production with (30.0%) because of the way people handle the project but poultry project with (21.3%) and animal system project with (18.8%). This study discovered that most of the farmers in Ibadan south west local government consulted the financial institution with a view to borrowing loan for their different projects. It reveals that (48.8%) of the total farmers applied for institutions finances are crop production project with (37.5%), fishery project with (23.8%), poultry project with (15.0%) and animal production with (23.8%). The gender and educational level of the respondents had a significant difference (p>0.05). the field survey shows the type of project the bank assist, other assistance rendered to farmers, the problem encountered as loan recovery, and the improvement in the living of the respondent had significant difference (p>0.05). There will be changes in the living of the farmers if recommendations such as the provision of bank credits and loans to the farmers at all levels.