OF THE STUDY
Long before the inception of community
banking system in Nigeria, intensive campaigns were organized nation wide
urging community to form community Development Association [CDA] or where they
already exist6 in form of town union or patriotic association to register them
in their local government. This was to create an avenue for which they could
more effect t lively participate in rural development programmes at grassroots
.Development association was found and registered as at 31st December 1992.
It is pertinent to mention that government
had before this time established some development agency intended to providing
grassroots’ development. These include National Directorate for Employment [NDE]
Better life programmed of Rural Dweller [BLPRD] Rural Banking, people’s Bank
and Directorate of food, road and Rural
infrastructure [DEFRRI] whose primary task was to a identify, involve and
support viable local community organization in the mobilization of the rural
population for sustained rural development activities bearing in the mind the
need of promoting greater participation and economic self- reliance on rural
On the basis of this and other functions
defined in the Decree 4 of the 1987, as stressed by mabogunje, the directorate
fell into three broad areas as;
1. Community organization and social
2. Infrastructural Development
3. Promotion of productive activities.
The idea of community banking was made known
to the public during January 1st 1990 budget speech by the president and
commander of chief the Armed forces,
General Ibrahim Alamosa Babangida, in that speech he clearly spelt out what the
government has in mind as follows.
The adjustment subsidy levels of domestic
price of petroleum product have been estimated millions is 1990 fiscal year.