Loan Accessibility and Repayment Performance of Livestock Farmers under the Agricultural Credit Guarantee Scheme Fund in Southeast, Nigeria

Abstract

The study analysed livestock farmers’ accessibility and repayment performance to lending institutions under the Agricultural Credit Guarantee Scheme Fund in Southeast, Nigeria. Two states (Ebonyi and Imo states) were purposively chosen as   representative of the five Southeast states. Primary data were collected using a structured questionnaire administered on 195 loan beneficiaries that were selected through simple random sampling technique. Descriptive statistics, logit and multiple regression analysis techniques were used in data analysis. The result showed that the lending institutions were able to meet 53.7% of the credit demand of the farmers, while their repayment performance was 90.1%. The logit analysis showed a “Percentage Correct” of 71.8% with age, marital status, educational level, farming experience, collateral value and total income as significant factors influencing accessibility to credit demand. The multiple regression analysis on factors influencing the farmers’ loan repayment showed that amount borrowed, age, educational level, household size, livestock value and total income  as significant variables at 5% level of probability influencing their loan repayment. The Federal Government of Nigeria is advised to fashion and enforce a programme for livestock development under the Agricultural Credit Guarantee Scheme Fund that will guarantee credit to livestock farmers. This will assist in enhancing the farmers’ accessibility to the much needed credit thereby making animal protein available at reasonable prices to people.

Keywords: Livestock, Loan Accessibility, Repayment Performance, Credit Guarantee, Southeast.