Determinants of Credit Access and Default among Crayfish Traders in Four Selected Markets in Akwa Ibom State, Nigeria

Abstract

The paper examine the various determinants of credit access and default using data from a sample of 60 crayfish traders collected through a multi-stage random sampling in three selected markets in Akwa Ibom State, Nigeria. Data were analyzed using logit and multiple linear regressions that involve the use of Ordinary Least Square (OLS). Findings revealed a dominant age bracket and household size of 41-50 years and 6-10 persons with average household size of 6 persons respectively. Traders were also quite experience with high level of literacy. The result of the logit model revealed that only household size and interest rate charged on loan impacted positively on loan default. Findings further revealed that age of traders, educational level, availability of surety and marketing experience impacted positively on credit access in the study area. This suggested the need to pursue policies that would reduce interest rate and household size, enhances educational attainment and marketing experience of traders as well as the evolution of a more articulate and proactive loan monitoring procedure alongside the setting up a loan delinquent court to punish loan defaulters as the way out.

Keywords: Credit access; determinants; crayfish traders and credit default