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Effect Of Microfinance Bank’s Credit On Cereal Crops Productivity In Federal Capital Territory, Abuja
[Full Text]
AUTHOR(S)
Gabriel O. Agada, Cornelius Adebayo, & Sally I. Agada
KEYWORDS
Agriculture, Cereal, Credit, Crop, Farmers, Microfinance, and Productivity,
ABSTRACT
This study was carried out to examine the effect of microfinance bank’s credit on Cereal crop productivity in federal capital territory Abuja, Nigeria. Three Area Councils were used- Bwari, Gwagwalada, and Kuje. Specifically, the study described the socio-economic characteristic of cereal crop farmer users and non-users examine the effect of microfinance banks’ credit on productivity of users and non-users of cereal farmers, estimate the profitability of cereal crop production, and identify the major constraints associated with microfinance banks’ credit. Multi-stage Sampling technique was used to select a total of 180 respondent including 90 users and 90 non- users of microfinance banks credit were randomly selected for the Survey. The sample size was drawn from three microfinance bank namely Hasal, Fortis, and Atlas. Both primary and secondary data were collected for the study. Primary data were obtained through questionnaires administered to the respondent. Indices used in data analysis include descriptive statistic, multiple regression analyses, the socio-economic characteristic of the respondent were analyzed using. The data were subjected to both descriptive and inferential statistical analysis. The result shows that 41% of the respondents were between the ages 31- 40 years, 77% were male, 49% had farming experience of between 11-20 years, 56% had family sizes of 1 – 5 persons and 93% had formal education at various levels. The coefficients of cost of farm size, labour, seed, capital input and amount of credit were all positive and significant at 1%, 5%, 1%, 1% and 1% level of probability respectively. It was concluded that users of microfinance bank’s credit were more efficient than the non- users of microfinance bank’s credit in the study area. The study identified Bureaucratic procedure, high interest rate, and frequent absences of loan officer, among others as the most pressing constraints encountered by respondent in accessing the loan.
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