Are There Road Blocks to Access Micro-Credit From Selected Microfinance Banks in Delta State, Nigeria? Implications for Small Scale Farmers Sustainability!

Abstract

The study was carried out to investigate the factors that affect small scale farmers to access fund and utilized for greater efficiency in production in Delta State, Nigeria. The logit model was used to analyze the data. A multi-stage random sampling technique was used for the study. Charts were used to analyze the socioeconomic characteristics of the farmers. About 120 farmers were interviewed using pretested questionnaire. The study showed that sex, education, farm size, cash balance, collateral, frequency of transaction and membership of cooperative society were positive and significant at 1%, 5% and 10% probability levels respectively. The coefficient of age, interest rate, household size and distance were negative and significant at 10% and 5% levels. The results of the study call for policies aimed at encouraging microfinance banks to consider the farmers in accessing credit to increase their output, income and productivity in the study area.