Background of the Study
Agriculture plays a crucial role in the economy of Jega Local Government Area (LGA), Kebbi State, serving as a primary source of livelihood for the majority of its population. Agricultural loans are critical for empowering farmers, enhancing productivity, and ensuring food security. However, the lack of adherence to public sector accounting standards often leads to inefficiencies in loan disbursement processes, including delays, corruption, and inadequate monitoring. This study examines how public sector accounting standards affect the efficiency and transparency of agricultural loan disbursement in Jega LGA.
Statement of the Problem
Farmers in Jega LGA frequently encounter challenges in accessing agricultural loans due to inefficiencies and irregularities in disbursement processes. These issues stem from poor financial practices and a lack of compliance with public sector accounting standards. This study investigates the relationship between public sector accounting standards and agricultural loan disbursement efficiency.
Aim and Objectives of the Study
1. To evaluate the impact of public sector accounting standards on agricultural loan disbursement in Jega LGA.
2. To identify challenges affecting loan disbursement processes.
3. To propose strategies for improving agricultural loan disbursement through adherence to accounting standards.
Research Questions
1. How do public sector accounting standards affect agricultural loan disbursement in Jega LGA?
2. What challenges hinder the efficient disbursement of agricultural loans?
3. What strategies can enhance loan disbursement through improved accounting practices?
Research Hypotheses
1. H₀: Public sector accounting standards do not significantly affect agricultural loan disbursement in Jega LGA.
2. H₀: Challenges in loan disbursement are not significantly related to accounting practices.
3. H₀: Improved adherence to accounting standards does not significantly enhance loan disbursement efficiency.
Significance of the Study
The study provides insights into the role of public sector accounting standards in improving agricultural loan disbursement, benefiting farmers, policymakers, and financial institutions.
Scope and Limitation of the Study
The study focuses on agricultural loan disbursement in Jega LGA, Kebbi State. Limitations include access to financial data and cooperation from stakeholders.
Definition of Terms
• Public Sector Accounting Standards: Guidelines for financial reporting and management in government institutions.
• Agricultural Loans: Financial credits provided to farmers to support agricultural activities.
• Disbursement: The process of distributing funds to intended recipients.
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