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Determinants Of Informal Credit Delinquency Among Food Crop Farmers In Rural Niger Delta Of Nigeria

Author

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  • ESSIEN, Ubon A.
  • IBEKWE, U. C.
  • AKPAN, S. B.
  • BEN-CHENDO, N. G.

Abstract

The study examined the determinants of informal credit delinquencies among food crop farmers in rural Niger Delta of Nigeria using Akwa Ibom State as a case study. A multi-stage random sampling technique was adopted to select 96 beneficiaries and structured questionnaires as well as personal interview were used to collect data. Probit and logit models were used to analyse the factors influencing credit delinquency among food crop farmers in the state. Result of the descriptive analysis of the socio-economic characteristic of respondents revealed that 93% of male and 72% of female food crop farmers had one form of formal education ranging from primary to tertiary education. Empirical result from the Probit and logit models were similar and showed that borrower’s non-farm income, credit amount received, household size, net farm profit and farm size are determinants of credit delinquencies among food crop farmers in Akwa Ibom state. The study also discovered that the probability of food crop farmers being credit delinquent is about 0.427 ceteris paribus. It is recommended that food crop farmers should form marketing co-operative societies as a means of generating additional income to augment loan obtained. Furthermore, local government authorities should set up credit programmes that should focus on soft loans to rural farmers at a subsidize interest rate.

Suggested Citation

  • ESSIEN, Ubon A. & IBEKWE, U. C. & AKPAN, S. B. & BEN-CHENDO, N. G., 2016. "Determinants Of Informal Credit Delinquency Among Food Crop Farmers In Rural Niger Delta Of Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(1), pages 1-6, April.
    • Handle: RePEc:ags:roaaec:254150
    DOI: 10.22004/ag.econ.254150
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    Cited by:

    1. Aduralere Opeyemi, OYELADE & Benjamin Oluwafemi, AYENI & Michael O., OGUNDIPE & Temitope Q., SALISU & Olamide David, TIJANI & Imoh Edet, UMAH, 2019. "Challenges and Prospects of Commercial Bank Loan Extended to Farmers in Lagelu Local Government of Oyo State, Nigeria," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(1), pages 31-41, March.

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