AKSU Journal of Agricultural Economics, Extension and Rural Development

DETERMINANTS OF CREDIT ACCESS AMONG LIVESTOCK FARMERS IN ABAK AGRICULTURAL ZONE, AKWA IBOM STATE, NIGERIA

Author:  Udoka, S. J., Bassey, N. E. and Okorie, N. U.

Abstract
The study examined the determinants of credit access among livestock farmers in Abak Agricultural Zone, Akwa Ibom State, Nigeria. Data collected from 120 livestock farmers through a multi-stage sampling technique was analyzed using descriptive statistics, t test and logistic regression. Result of credit access analysis showed that of a total amount of Thirty four million, one hundred thousand naira (N34,100,000) accessed, N15,850,000 (46.5%) and N10,050,000 (29.5%) were from informal and formal sources, while N8,200,000 (24%) was from semi-formal sources. On the basis of nature of collateral provided, of the Thirty four million, one hundred thousand naira (N34,100,000) accessed, N20,460,000 (60%) and N11.594,000 (34%) were by farmers who presented surety and those that mortgaged their landed properties while N2,046,000 (5%) was by those that presented other forms of collateral. In terms of beneficiary status, N17, 050,000 (50%) and N11, 253,000 (33%) of total amount accessed was by farmers who had previously obtained credit from the lenders thrice and second timers while N5, 797,000 (17%) was by first timers. Considering livestock enterprise type, N31, 713,000 (93%) of the N34,100,000 accessed, was by poultry farmers, while N682,000 (2%) and N1,705,000 (5%) were by piggery and sheep/goat farmers, respectively. Result further showed a significant difference in mean amount accessed by livestock farmers between formal and informal sources at 5 percent (P≥0.05) level; between formal and informal sources at 10 percent ((P≥0.1) level; and between formal and semi-formal sources at the 1 percent (P≥0.01) level of significance, respectively. The result of the logit model revealed that while educational attainment, membership of social organization, monthly income of farmers and availability of surety/ collateral had a significant positive impact on credit access, interest rate charged had a significant negative effect on credit access. Series of recommendations have been offered based on the research findings.