The nexus between cooperative business model, access to credit, and risk mitigation strategies in Nigeria’s agricultural value chains

Smallholder farmers in Nigeria face significant risks from climate change, market volatility, and credit constraints. Cooperative Business Model (CBM) offer a collective approach to mitigate these challenges by enhancing market access, credit availability, and risk-sharing. This study investigates the relationship between CBM, access to credit, and the choice of risk mitigation strategies among 173 agricultural value chain actors in North Central Nigeria. Using descriptive statistics, ANOVA, and Likert scale analysis, we find statistically significant differences in the means of CBM adoption, credit access, and risk mitigation strategies. Results highlight cooperatives’ role in promoting crop diversification, insurance uptake, and collective savings. Constraints to insurance adoption include high premiums and limited awareness. Policy recommendations emphasize institutional support for CBM and tailored financial products.