Abstract:
The banking habit is not well ingrained in rural Nigeria. This is largely due to the lop-sided nature of the spread of banking facilities in the country (as seen in its concentration in the urban areas at the expense of the rural areas). To diversify the economy and place less emphasis on crude petroleum as its driving
force it would be idea l to restore the lost foreign exchange earning capacity of the lower economic sector, for instance, agriculture. To accelerate national economic development, rural areas need to have a
reasonable presence of both social amenities and financial institutions. The rural banking scheme was set up to improve the Nigerian Banking habit and as a means of extending credit on one hand and mobilizing savings for the purposes of balanced economic development on the other. But with the growth in rural banking network, has there been a spill over effect on the other rural industries such as agriculture, food processing, textiles, manufacturing etc? In addition to providing answers to the above question this study reviews the Banking habit of rural communities in Nigeria and it s implications for investments. While commercial banks have been the engine for propelling the spread of banking facilities in rural areas , findings show that they need to improve on the volume and scope of financial services to the rural dwellers if they are to carry out a vital role in the economic development of Nigeria. Suggestions considered useful have been made herein for the improvement in the development of banking habit expected of the rural banking program in Nigeria.
