AN ANALYSIS OF ACCESS TO CREDIT AND FACTORS INFLUENCING CREDIT UTILIZATION AMONG CASSAVA FARMERS IN SOUTHWEST, NIGERIA

This study analyses access to credit and factors influencing credit utilization among cassava farmers in Southwest, Nigeria. Multi-stage sampling procedure was used to select 210 small holder cassava farmers for the study. A structured questionnaire was used to collect data on respondents’ access to credit, sources and volume of credit granted, and factors influencing amount of credit utilized by cassava farmers. Results show that 49.5% of the cassava farmers had access to credit, 23.3% obtained credit from cooperatives, 33.3% requested for less than ₦100,000.00 credit while the mean amount of credit requested and granted were ₦125,923.08 and ₦105,346.15 respectively. Ordinary least squares regression results show that farm experience (α = 2.8609, p<0.05), educational level (α = 4.7334, p<0.01), farm size (α = 9.6706, p<0.05) and membership of cooperative society (α = 47.9905, p<0.05) significantly influenced the amount of credit utilized by the smallholders cassava farmers. The study determined that the credit use of cassava farmers in southwest Nigeria is influenced by several characteristics, including their level of farm experience, educational attainment, farm size, and participation in a cooperative organization. Therefore, it is imperative for farmers to actively seek out opportunities to get further expertise, expand their land holdings, pursue adult education, and establish cooperative societies. These actions will enable them to secure financial support from stakeholders and enhance their ability to obtain and effectively utilize loans in the study area.