Project Abstract

Abstract
Organic farming practices have gained significant attention in recent years due to concerns about the long-term sustainability of conventional farming methods. This study aims to conduct an economic analysis of the use of organic manure in yellow pepper (Capsicum annuum L.) production. Yellow pepper is a popular vegetable crop known for its nutritional value and culinary uses. The research project will focus on comparing the economic performance of using organic manure versus chemical fertilizers in yellow pepper production. The study will consider factors such as input costs, yield levels, market prices, and profitability to evaluate the economic viability of organic manure use. Data will be collected from experimental plots where yellow peppers are grown using either organic manure or chemical fertilizers. The study will analyze the differences in input costs between the two methods, including the cost of purchasing and applying the fertilizers. Yield levels will be monitored throughout the growing season to assess the impact of the fertilization method on crop productivity. Market prices for yellow peppers will be obtained from local markets to determine the potential revenue from selling the produce. By comparing the input costs and potential revenue, the study will calculate the profitability of using organic manure in yellow pepper production. In addition to the economic analysis, the study will also consider the environmental and health implications of using organic manure. Organic farming practices are known to have less negative impact on the environment compared to conventional methods that rely heavily on chemical inputs. The use of organic manure can improve soil health, reduce pollution, and enhance biodiversity in agricultural systems. Overall, this research project will provide valuable insights into the economic feasibility of using organic manure in yellow pepper production. The findings will be beneficial for farmers, policymakers, and other stakeholders interested in promoting sustainable agricultural practices. By demonstrating the economic benefits of organic farming, this study aims to encourage more farmers to adopt environmentally friendly and socially responsible methods of crop production.

Project Overview

1.1 BACKGROUND OF THE STUDY

The Central Bank of Nigeria (CBN) in 2019 implemented its 2014 intended policy on cash-based transactions which stipulates a cash handling charge on daily cash withdrawals that exceed N500, 000 for Individuals and N3, 000,000 for corporate bodies. The new policy on cash-based transactions (withdrawals) in banks, aims at reducing (NOT ELIMINATING) the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.)

Money performs a number of roles in economic activity; it is a unit of account, store of value, medium of exchange and means of deferred payment. Also, money has evolved over the centuries to minimize the friction of transaction costs that are involved in mediating exchange. In fact, the process can be observed from the development of the very first monetary products. For instance, conducting economic transactions in barter economies involved high transaction costs as considerable time and effort was required in finding suitable partner. Subsequently, another facet in the evolution of money was the need for fungibility and divisibility. Hence, the advent of study money (notes and coins) made the process less costly by allowing people specialize in production based on their strengths and by enabling the monetary authorities to mint coins in convenient denominations, thereby creating divisibility (Baddeley, 2004).

However, there has been drift towards electronic money, which is quite difficult to define because it blends technological and economic characteristics (Basel Committee, 1998; BIS, 1996). According to ECB (1998), electronic money is broadly defined as an electronic store of monetary value on a technical device that may be widely used for making payments to undertakings other than the issuer without necessarily involving bank accounts in the transactions, but acting as a prepaid bearer instrument. Analogous to this definition is that of cashless economy wherein there exist no notes and coins issued by central banks but by private financial institutions (Costa and De Grauwe, 2001). The central bank of Nigeria introduced the new cash policy for a number of key reasons, which includes:

To drive development and modernization of our payment system in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020. An efficient and modern payment system is positively correlated with economic development, and is a key enabler for economic growth.

To reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.

To improve the effectiveness of monetary policy in managing inflation and driving economic growth.

In addition, the cash policy aims to curb some of the negative consequences associated with the high usage of physical cash in the economy, including:

High cost of cash: There is a high cost of cash along the value chain - from the CBN & the banks, to corporations and traders; everyone bears the high costs associated with volume cash handling.

High risk of using cash: Cash encourages robberies and other cash-related crimes. It also can lead to financial loss in the case of fire and flooding incidents.

High subsidy: CBN analysis showed that only 10percent of daily banking transactions are above 150k, but the 10percent account for majority of the high value transactions. This suggests that the entire banking population subsidizes the costs that the tiny minority 10percent incur in terms of high cash usage.

Informal Economy: High cash usage results in a lot of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth.

Inefficiency & Corruption: High cash usage enables corruption, leakages and money laundering, amongst other cash-related fraudulent activities.

1.2 STATEMENT OF THE PROBLEM

The Nigeria bankers’ bank and financial apex institution announced the strict implementation of the cashless policy across six states which includes Lagos, Ogun, Kano, Abia, Anambra, Rivers states. The federal capital territory was not left out. This policy directive was in line with the institution’s vision to drive development and modernization of Nigeria’s payment system in line with the country’s vision 2020 goal of being amongst the top 20 economies by the year 2020. The Central Bank of Nigeria believes that an efficient and modern payment system is positively correlated with economic development, and it is a key enabler for economic growth. The envisioned card dominated society in place of cash is also considered to reduce crime and eliminate huge cost that comes with cash. However, despite the brilliance of this policy and the intention of the Bankers’ bank; the outburst from the several regions of the nations has been with an ill perception. This is evident in the call by the House of Representatives to the central bank of Nigeria to suspend the cashless policy until after due consultation. The policy however have been implemented and several groups have perceived the implementation as uncalled for. It is on this premise that the researcher embarked on this study to establish with facts the impacts of the 2019 cashless policy on market Organizations.

1.3 OBJECTIVES OF THE STUDY

The primary objective of the study is to examine the impacts of 2019 CBN cashless policy directive on Market organizations. Specifically, the objectives are:

1. To determine how the Cashless policy have affected transactions in the market place.

2. To determine the constraints to effective cashless policy in the market place.

3. To recommend methods for effective implementation of cashless policy in market places.

1.4 RESEARCH QUESTIONS

The study seeks to provide answers to the following research questions

1. How has cashless policy affected the transactions in the market place?

2. What are the constraints to effective cashless policy in the market place?

3. What methods will enhance effective implementation of cashless policy in market places?

1.5 SIGNIFICANCE OF THE STUDY

This study will provide insights on how the 2019 cashless policy has affected transactions in market places. This insight would serve as useful data for policy makers in adopting effective implementation strategies or modify the policy to suit the common good. This study in essence is an appraisal guide.

1.6 SCOPE AND LIMITATION

The study is focused on the impacts of 2019 CBN Cashless policy directive. The impact of this directive is limited to Market places with special consideration for Onitsha main market, Anambra state.

1.7 DEFINITION OF TERMS

Cashless: A situation of transaction where cash is absent.

Policy: a course or principle of action adopted or proposed by an organization or individual.

Organization: This refers to any system, body or group of people working together to achieve common goals and objectives of the business