EVALUATION OF THE PERFORMANCE OF AGRICULTURAL LENDING SCHEMES IN NIGERIA (Published)
The broad objective of the study was to evaluate the performance of agricultural lending schemes in Nigeria for the period 2009 – 2012. The study was carried out in Benue, Kwara, Kaduna, Abia, Anambra, Rivers, and Ogun states respectively. The method of proportionate random sampling technique was used in selecting 185 borrowers who are registered with their state Agricultural Development Programmes (ADP’s). The sampling frame comprised all the registered ADP farmers in the surveyed states who took bank loan. Data collected were analyzed using frequencies, percentages, means, and multiple linear regression analysis. Results of the analysis showed that during the period 2009 – 2012, a total of 27,987 farmers applied for bank loan in Nigeria totalling N13,704,965,000.00, while 21,490 farmers were granted loan facility during the same period which totalled N7,188,575,000.00 leaving a credit supply gap of N6,516,390,000.00. The total amount of loan repaid by borrowers during the same period was N3, 523,018,005.00 which gave a repayment rate of 49% and a default rate of 51%. The loan granted to borrowers increased national output by 20.33%, and impacted positively on the income of borrowers. It was recommended that the government should continue to encourage increased funding to the agricultural sector for accelerated food production in Nigeria by small and medium scale farmers through the provision of institutional loans to these categories of farmers using ACGSF and CACS.
Keywords: Evaluation, Lending Schemes, Nigeria, Performance
EFFICIENCY OF AGRICULTURAL LENDING SCHEMES IN NIGERIA (Published)
The broad objective of the study was to evaluate the efficiency of agricultural lending schemes in Nigeria with a view to determining their impact on output and income of beneficiaries. The study was carried out in Benue, Kwara, Kaduna, Abia, Anambra, Rivers, and Ogun states respectively. The method of proportionate random sampling was used in selecting 185 borrowers who are registered with their state Agricultural Development Programmes (ADP’s). The sampling frame comprised all the registered ADP farmers in the surveyed states who took agricultural loan. Data collected were analyzed using frequencies, percentages, means, and multiple linear regression analysis. The results of the study showed that both small and medium scale farmers are efficient in the use of farm inputs, but small scale farmers are technically more efficient than medium scale farmers. Borrowers with secondary or tertiary education were efficient in inputs use, but borrowers with tertiary education were technically more efficient than borrowers with secondary education. The efficient lending schemes in Nigeria are ACGSF and CACS, but ACGSF was technically more efficient than CACS. It was recommended that the government should continue to fund farmers in Nigeria through ACGSF and CACS.
Keywords: Agriculture, Efficiency, Lending Schemes, Nigeria