The Role of Informal Credit on Agriculture: An Assessment of Small Scale Maize Farmers Utilization of credit in Jema`a Local Government Area of Kaduna State, Nigeria

Ishaiah, P.; Yusuf, O.; Yusuf, H. O.; Shuaibu, H.

doi:10.9734/ajea/2015/12099

Cited by 6 publications

(4 citation statements)

References 4 publications

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“…It may also be that during repayment, friends and family members may not request any form of interest. This agrees with findings of Yusuf et al (2015), who found that a major source of informal credit was from family and friends. The major formal source of credit accessed by marketers was the microfinance bank followed by cooperative bank; the least common source of formal credit among marketers was commercial banks.…”

Section: Resultssupporting

confidence: 92%

Appraisal of Vegetable Marketers’ Access to Formal and Informal Credit

Oni

Adeoye

2016

International Journal of Vegetable Science

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Section: Resultssupporting

confidence: 92%

Appraisal of Vegetable Marketers’ Access to Formal and Informal Credit

Oni

Adeoye

2016

International Journal of Vegetable Science

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“…Furthermore, there is disagreement in the extant literature about the role of informal credit. Some studies reveal that informal credit is terrible for farmers' livelihood [27,28], while others verify its crucial function in economic development [29,30]. These contentions further intensify the generalization of the existing literature on informal credit to Afghanistan.…”

Section: Introductionmentioning

confidence: 99%

Agricultural Credit and Extension Services: Does Their Synergy Augment Farmers’ Economic Outcomes?

et al. 2021

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Access to credit is essential for sustainable agricultural development. This paper evaluates the impact of formal and informal agricultural credit, access to extension services, and different combinations of agricultural credit and extension services on the economic outcomes of farming households in Afghanistan. This study applies a quasi-experimental approach (propensity score matching) and inverse-probability-weighted regression adjustment (IPWRA) analysis. The data comes from a survey of 277 randomly selected farming households in the three districts of rural Afghanistan. The results show that having access to formal agricultural credit has a positive and differentiated impact on the farming costs and net revenue of farming households. However, the effects increase when a farming household has access to both formal credit and extension services. The results also reveal that credit constraints affect farming costs and net revenue. The study provides some practical implications for agricultural development policymakers. First, formal agricultural credit affects farm revenue in rural Afghanistan. Second, the impact of credit bundled with agricultural extension services on farm revenue is higher than the impact of the provision of each service separately. Therefore, a more sustainable agricultural credit arrangement should be supplemented by extension services for farmers in Afghanistan.

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“…The fund's liability is limited to 75% of the amount in default net of any amount realized by the lending bank from the sale of the security pledged by the borrower. Since the inception of the scheme in 1978, the aggregate number of loans to agriculture hasalways been on the rise from a negligible number of 341 loans amounting to 11.28 million NGN (18,613,861 USD) in 1978 to 3,571 loans valued at 218.60million NGN (1,679,600.46 USD) as at May, 2006(Yusuf et al, 2015.…”

Section: Introductionmentioning

confidence: 99%

Agricultural Credit Guarantee Scheme Fund and Its Effect on Agricultural Output in Nigeria

Reuben¹,

Nyam²,

Rukwe³

2020

RAAE

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Research Background: Agricultural production in Nigeria experiences the challenge of inadequate funding particularly by farmers in rural areas. In an attempt to enhance farmers' access to credit, the federal Government of Nigeria set up Agricultural Credit Guarantee Scheme Fund (ACGSF) to boost funding in the sector. But to what extent the Scheme has affected the output of agricultural sectors in the Country for the period under review is of great concern especially to policy makers in the Country. Purpose of the article: The study analysed trends and effect of Agricultural Credit Guarantee Scheme Fund (ACGSF) on farmers' agricultural output (GDP) in Nigeria. The specific objectives of the study were to examine the trend in volume of loans guaranteed by ACGSF to farmers and determine the effect of ACGSF on agricultural output for the period under review. Methods: Secondary data were sourced from Central Bank of Nigeria bulletins, National Bureau for Statistics data base and other financial bulletins. The data were analysed using descriptive and inferential statistics. Findings and value added: The trend revealed that the supply of funds to agricultural sector from the scheme has always increased in a wobbly pattern. It was found that funds guarantee to crop-sub sector increased steadily from 1998 to 2009. The result shows that credit supplied to livestock sub-sector by ACGSF rose consistently in the period under review but initially declined from 1998-2007. The multiple determination coefficients (R 2) of 0.8523was obtained and the coefficients of ACGSF on crop sector, livestock sector and fishery sector were 0.1607, 0.2320 and 0.2110 respectively. The signs were all positive and significant at 1% and 5% levels. The study concludes that ACGSF has a positive effect on agricultural output in Nigeria. Hence, it is recommended that government, agricultural agencies and allied bodies should give more preference to the scheme to boost agricultural production. Government should increase funding to the scheme in order to diversify the earnings to eliminate her dependency on oil export.

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The Role of Informal Credit on Agriculture: An Assessment of Small Scale Maize Farmers Utilization of credit in Jema`a Local Government Area of Kaduna State, Nigeria

Cited by 6 publications

References 4 publications

Appraisal of Vegetable Marketers’ Access to Formal and Informal Credit

Appraisal of Vegetable Marketers’ Access to Formal and Informal Credit

Agricultural Credit and Extension Services: Does Their Synergy Augment Farmers’ Economic Outcomes?

Agricultural Credit Guarantee Scheme Fund and Its Effect on Agricultural Output in Nigeria

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