Credit Constraints towards Agricultural Development in Ogun State, Nigeria

ABSTRACT: This study examines credit constraints towards agricultural development in Ogun State, Nigeria. A structured questionnaire was constructed to randomly collect primary data from 100 farmers in the study area using a multi-stage sampling procedure. The study specifically investigates the socio-economic characteristics of the rural farmers, and tries to identify factors influencing farmers’ credit constraint conditions. Data gathered for this study has been analyzed using descriptive statistical tools and a binomial logit regression model. The sigma of the binomial logit regression model, which has the function of measuring the significance of the model, reveals that the data sufficiently fit the model. Results obtained from the regression model suggest that there is a statistically significant relationship between education, marital status, annual farm income, high interest rate and the credit constraint condition towards agricultural development in this area. This study concludes that there is a significant need for improvement in credit accessibility by rural farmers in Ogun State, Nigeria. Financial institutions should help look into the issue of high interest rate, as it has been a consistent challenge with agricultural development in Nigeria. Keywords: rural, agriculture, credit, socio-economics, logit, Ogun State, Nigeria. …………………………………………………………………………………………………………………………