Search. Read. Cite.

Easy to search. Easy to read. Easy to cite with credible sources.

Asian Journal of Agricultural Research

Year: 2015  |  Volume: 9  |  Issue: 4  |  Page No.: 155 - 165

Access to Credit by Vegetable Farmers in Nigeria: A Case Study of Owerri Agricultural Zone of Imo State, Nigeria

F.U. Agbo, I.I. Iroh and E.J. Ihemezie


This study examined the access to credit by vegetable farmers in Nigeria with Owerri agricultural zone of Imo State, Nigeria as a case study. Multi-stage random sampling technique was used to select 120 vegetable farmers. Descriptive and inferential statistics, logit model and factor analysis were used for data analysis. The results showed that the respondents had the following mean scores: Age 43.7 years, household size 6.2, average farming experience 9.9 years and farm size 1.32 ha. About 74.5% of these respondents accessed credit from informal sources while only 25.5% had access through formal sources. Logit model result showed that education and land tenure had significant (p<0.05) relationship with access to informal credit, while education, household size, off-farm income and farming experience had significant (p<0.10) relationship with farmers’ access to formal credit. Factor analysis result showed that the constraints against vegetable farmers in obtaining formal credit in the study area were untimely delivery of credit, bureaucratic processes, high administrative charges, high interest rates, high transaction costs, unreliability and hidden charges. It is evident from this study that vegetable farmers in the study area did not have access to credit especially formal credit and therefore necessary agricultural credit schemes were recommended.

Cited References Fulltext