NETWORK ANALYSIS OF THE NIGERIAN AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK (NACRDB) AND MAIZE FARMERS IN OSUN STATE, NIGERIA
Keywords:Network, Loan, Gross margin Maize.
This paper analyzed the network between the NACRDB and the maize farmers in Ilesa, Osun State, Nigeria. The network was assessed in terms of loan disbursement from the NACRDB and the profitability of the maize enterprise of the beneficiaries. Data were obtained from the bank and sixty randomly selected beneficiary maize farmers. These were analyzed using descriptive statistics and budgetary analysis to elicit the profitability of maize enterprise. The results indicated that the bank witnessed remarkable increase in the number of beneficiaries (728%), loan approval and disbursement (486%) between 2003 and 2004. However, loan per beneficiary dropped by 29% during the period. Loan approval and disbursement relative to loan application increased from 57% in 2003 to 90% in 2004, loan recovery rate was low (43% - 44%). An average beneficiary derived 59.2% of investment in maize production in 2004 as credit from NACRDB. The highest component of the average variable cost was land clearing (31.3%) while that of the average fixed cost was permanent labour/management (54.0%). Profitability of the maize enterprise, with a gross margin of N152, 201 and profit of N79, 912, suggests that loan recovery should be higher than what it is currently in the bank. The bank is therefore advised to improve on staffing and logistic supports for loan monitoring.