Relationship Between Savings Mobilisation and Agricultural Loan Disbursement in Community Banks in Kebbi State

Savings mobilisation is a foundational function of community banks, and its relationship with agricultural loan disbursement capacity is particularly important for states with predominantly agrarian economies such as Kebbi State in North West Nigeria. This study examines the relationship between savings mobilisation performance and agricultural loan disbursement in community banks operating in Kebbi State. A descriptive correlational design was adopted, and data were collected from the financial records of 10 community banks in Birnin Kebbi, Argungu, and Zuru Local Government Areas for the period 2018 to 2022. Savings mobilisation was measured by total deposits, average deposit growth rate, and savings product variety. Agricultural loan disbursement was measured by total agricultural credit volume, number of beneficiaries, and loan disbursement cycle time. Pearson correlation and simple linear regression were used to analyse the data. Results showed a strong positive significant relationship between total deposits and agricultural credit volume (r = 0.79, p < 0.01). Savings product variety also positively correlated with the number of loan beneficiaries (r = 0.61, p < 0.05). Average deposit growth rate significantly predicted agricultural loan disbursement cycle efficiency. The study concludes that expanding savings mobilisation capacity directly enhances agricultural lending potential in Kebbi State community banks. Recommendations include introducing targeted savings products for rural farmers, particularly those linked to seasonal agricultural cycles in the North West zone. Keywords: savings mobilisation, agricultural loan disbursement, community banks, Kebbi State, rural finance