Evaluating the Differential Role of Public-Private Credit Sources in Financing Climate Change Adaptation Technologies for Rural Farmers in Delta State, Nigeria

This study analyses the differential role of public and private credit sources in financing climate change adaptation technologies among rural farmers in Delta State, Nigeria. A multiple-stage random sampling procedure was utilized, and data were collected from 338 farmers employing a semi-structured questionnaire. The investigation uncovered that the average income from formal credit sources (N212,553.85) was essentially higher than from informal sources (N137,514.79). Variables impacting the volume of credit from informal sources included farming experience, marital status, cooperative participation, credit access, interest rates, and income. Conversely, education level, cooperative membership, credit access, and income were key determinants of credit volume from formal sources. The Chow test results indicated a significant structural difference between the two groups, with a calculated statistic of 369.48 exceeding the critical value of 1.936 at the 5% significance level. This highlights a significant difference in the sum borrowed and access to credit between formal and informal sources, underscoring the significant role of formal credit in enhancing climate adaptation among rural farmers.