DETERMINANTS OF INFORMAL CREDIT DELINQUENCY AMONG FOOD CROP FARMERS IN RURAL NIGER DELTA OF NIGERIA

Review of Agricultural and Applied Economics, RAAE, VOL.19, No. 1/2016

ARTICLE TYPE: REGULAR ARTICLE
RECORD ONLINE: 08.04.2016
‹ Previous article Next article ›
KEYWORDS:
Credit delinquency, informal credit, food crop farmers, Rural Niger Delta, Akwa Ibom
DOI NUMBER:
10.15414/raae.2016.19.01.50-55
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.
JEL CODES:
Q1, Q14, Q140
PAGES:
50 - 55
Please Cite this Article as:

Ubon A. ESSIEN, U. C. IBEKWE, S. B. AKPAN, N. G. BEN-CHENDO (2016) Determinants Of Informal Credit Delinquency Among Food Crop Farmers In Rural Niger Delta Of Nigeria. Review of Agricultural and Applied Economics. XIX (Number 1, 2016): 50-55. doi: 10.15414/raae.2016.19.01.50-55
URL for sharing:

https://roaae.org/1336-9261/doi/abs/10.15414/raae.2016.19.01.50-55

FULL TEXT PDF:
▼ direct download link| view online in fullscreen ▲
Review of Agricultural and Applied Economics | ISSN 1336-9261
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia.
Technical solution by jajo.online (2012)

© 2021