ABSTRACTThis project was a through research into the role of community banking in the economic development of Nigeria.

Its cardinality is to investigate the performance of community banks and to what extend they her contributed in the economic development of Nigeria especially in these rural areas they was established.

It also endeavoured to verify empirically the prudent management of these community barite and profer suggestions on how improvements can be made to ensure the envisioned returns on investment and contribution towards the economic well being of the nation are achieved.

Writing the linct of the analysis carried out it was observed that community bank have may pr0blems facing than due to the following reasons.

i.                   Inability to function very well in the rural area due to back of infrastructures.

ii.                 Lack of sufficient fund

iii.              Lack of skille workers

iv.              Lack of securities and packing spaces

The research work equally proffered suggestions to cushion, ameliorate and remedy the tainted situation such suggestion are.

a.       Government should command the national board for community banks, to allow this community to expend and obtain loans outside community loose. Government double organize an intensive training scheme for the community banks.

This fill help these banks acquire trained staff.




Table of contents

CHAPTER ONE1.0     Introduction

1.1            Purpose of the study

1.2            Significance of the study

1.3            Scope of the study

1.4            Limitation of the study

1.5            Definition of terms

CHAPTER TWO2.0     Review of related literature

2.1            The need for the community banking in economic development of Nigeria

CHAPTER THREE3.0     Research design and methodology

3.1            Location of data

3.2            Data analysis

CHAPTER FOUR4.0     Summary of finding

CHAPTER FIVE5.0            Recommendation

5.1     Conclusion



When God created man, the lest man with divine injection as recorded in the holy file. Be fruitful and multiply and replenish the earth and subduing the word as a mega society and the rural areas as a micro society of the overall good of man economically, politically and socially and other.

The British Government has declared a protectorate over areas claimed by the company in 1887. Their on January, 1900, it took over direct administration of the area from the Royal Niger company.

In (1973) Nigeria continued in the march towards development in every fact of life as a new emerging nation in the West African region and y October, 1960, she was granted an independence statues. To crown the whole stickle of had already made, she granted a republican status in1963.

To grapple with the attendant problems as an emerging nation and satisfy its citizen various development plains were launched or were introduced to accelerate economic development was introduced to run from 1962 to 1968 but was extended to 1970 in the account of the civil war. During his period it witnessed the construction of the Niger. Dan project well as the development of reads light industries such as textile, rubber and groundnut processing which used agricultural crop’s and the encouragement of agricultural in the form institution ad loans addressor 1976.

Most community header especially during the colourial time saw developments as more provision of schools, post officers loan halls churches, mosques good roads, portable water, electricity and telephone. However in the development process came to put more emphasis on the improvement in the “Material conditions and living (Ofman) through the use of resources available to him.


The purpose of community banking in the economic development of Nigeria are;

i.                   To know the extent the establishment of community banking system will protect economic development in Nigeria.

ii.                 To ascertain the impact of central bank of Nigeria (CBN) bank, and other financial institutions Decree (BOFID) and companies and allied matters acts on the community banking system in its vowed determination to cause this country in to economic alternation.

iii.              To change the negative impact of non-provision of a central cheering house for the economic development train in Nigeria.

iv.              To determine to what extent founds generated from the rural areas are extended to them to sensitize economic development in these area.


This research work will be of invaluable assistance to industrial list, managers of financial institutions, small and medium scale industrials policymakers and other researchers in this field.

Some of the attendant benefits therefore include:

a.       Industrialists, small and medium scale industrialists, will be able to see community banking system as another sources of financial at their deposition.

b.       To the managers of financial institution.