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DEVELOPMENTAL IMPACT OF RURAL BANKING IN NIGERIA

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

According to Osuntogun and Adewuimi (2013). The commercial bank is a profit making organization and as such there is geat fear by operators of commercial banks in establishing in the rural areas, this is because like every profit making organization they would not want to lose their business. But it has been that rural banking is in dispensable if the Nation is to develop its rural area will development of one’s rural area may not be realized it the serious of commercial banks are not at the reach of our rural dwellers.

This project work is designed to measure what extent the rural commercial bank have been able to involve the rural dwellers in economic activities in terms of awareness and the influence on their style of living through banking activities and how successful the banks are measuring up with their major aim of existence. This research work is aimed at bringing into light the development impact of rural banking in Nigeria rural areas and how it affect the economy in general. It is also aimed at investigating the impact of the rural banking services.

1.2    RATIONAL OF THE STUDY

The reason for the study is aimed at finding out the development impact rural banking in Nigeria has on rural areas/rural dweller. The study is important now because rural banking in Nigeria increases the productivity of small and medium agricultural farmers and the entire economic activities of the rural areas. The study is necessary now in the sees use that it leads to infrastructural development of the rural areas that is provision of basic amenities like electricity, good roads and pipe bore water etc.  Finally study is important because it leads the rural dweller to cultivate banking habits of depositing their money in the banks and stop their old way of burying money the ground with clay pots.

1.3   SIGNIFICANCE OF THE STUDY

The study is significant in many aspects. Firstly would enable our rural farmers and industrialists to obtain loans from the banks to reduce the hardship involves in banks acquiring farm inputs as well as cultivating their farms and building of firm and industries. Secondly, individuals and rural dweller will through this study cultivate banking habits and be enlighten on the activities and the benefits of banking industries.  Thirdly, the findings will serve as a guide to other bank that has no branches in the rural areas to know that impact of rural banking in our rural areas.

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