Determinants of Access to Credit by Farming Households in Rural and Peri-Urban of Akinyele Local Government Area, Oyo State

International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue IX, September 2019 | ISSN 2321–2705

Determinants of Access to Credit by Farming Households in Rural and Peri-Urban of Akinyele Local Government Area, Oyo State

Okunola Solomon Olufemi

Department of Agricultural Economics, Ladoke Akintola University of Technology, Ogbomoso, Nigeria

Abstract: – The research work investigated the determinants of credit access by rural farming households in Akinyele Local Government Area Oyo state. The study employed both descriptive and inferential statistics. In the study area, most respondents were literates especially those in the peri-urban parts of the Local Government Area. This set had access to different forms of credit although nongovernmental, as against their rural counterparts where a lot did not have access. Different collateral items used involved certificates, building and vehicle particulars including their salaries. Creditors closely monitored debtors to ensure recovery of funds.Inferential analysis shows that sex, experience, labour and contact with monitoring and extension officials were the main factors affecting access to credit in the study area.

Keywords: Credit, Rural and Peri-urban

I. INTRODUCTION

Essence of funding to Agriculture

Agricultural funding becomes imperative because of the importance of Agriculture itself. It provides food in terms of adequate nutrition to nations buttress and beef up the health and well being of their people. It is a residual source of employment to a larger proportion of the population. Most people return to agriculture when other sources fail with little or no protocol. It is the source of raw materials to the Agribusiness, pharmaceutical and other allied businesses worldwide. Agriculture in Nigeria has been funded essentially by private savings, governmental allocations, agricultural credit schemes and foreign investments. Few farmers can save enough from their meager earnings to take full advantage of the ever increasing range of improved agricultural technologies (NAERLS (1992).
According to Sanusi L, (2011), about 90 percent of Nigeria’s food requirement is produced by small scale farmers who constitute the majority of the nation’s poor. He claimed that a myriad of factors are blamed for this condition, both natural and man-made.

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