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Year 2019, Volume: 2 Issue: 2, 71 - 78, 01.04.2019

Abstract

References

  • Adeoye PB. 2005. Informal financial sector and poverty alleviation. Proceedings of the National Conference on Informal Financial Sector and Sustainable Development in Nigeria, pp.93-96.
  • Ajagbe FA, Adewoye JO, Ajetomobi JO. 2007. An evaluation of financial performance of community banks in Ogbomoso area of Oyo state, Nigeria. Inter Busin Manage, 1(4): 65-69.
  • Bouman FYA. 1995. Rotating and accumulating savings and credit associations: a development perspective. World Develop, 23(3): 371-384.
  • Ezeh CI, Anyiro CO, Obioma NQ, Chilaka AB. 2012. Financial Analysis of vegetable enterprises under the National Fadama II Development project (NFDP II) in Imo State, Nigeria. Inter J Applied Res Tech, 1(3): 30-39.
  • Gebrekidan A. 2006. The impact of micro financing Institutions on the livelihood of the rural poor. Seminar Series, Department of Business Management, Adama University, Nazareth, Ethiopia.
  • Gujarati DN. 2003. Basic Econometrics. Tata McGraw-Hill Edition, New York.
  • Jones JHM, Harford N, Sakyi-Dawson O, Sey A. 1998. Financial Sector Linkages in Renewable Natural Resource (RNR) Sector in Ghana, Poverty Research Unit in Sussex (PRUS) Working Paper, 3: 103-115.
  • Khandker SR, Farugee RR. 2001. The impact of farm credit in Pakistan. The World Bank (Technical Paper No. 258). Washington, DC.
  • Konare K. 2001. Challenges to Agricultural Financing in Mali. A Plan B Paper submitted to Michigan State University in Partial Fulfilment of the Requirement for the Degree of MSc Agricultural Economics.
  • Lawal WA, Abdullahi IB. 2011. Impact of informal agricultural financing on agricultural production in the rural economy of Kwara State, Nigeria. Inter J Busin Soc Sci, 19(2): 241-248.
  • Mehrteab HT. 2005. Adverse selection and moral hazard in group- based lending: evidence from Eritrea. PhD Thesis, Faculty of Economics, University of Groningen, The Netherlands.
  • National Population Commission (NPC). 2006. Bureau of Statistics.
  • Nwaru JC. 2004. Rural credit markets and resource use in arable crop production in Imo State of Nigeria. Ph.D. Dissertation, Michael Okpara University of Agriculture, Umudike, Nigeria.
  • Nwaru JC. 2011. Determinants of informal credit demand and supply among food crop farmers in Akwa Ibom state, Nigeria. J Rural Comm Develop, 6(1): 129–139.
  • Okorie A. 2001. Management of Risks and Defaults in Agricultural lending. M.A. Ijere and A. Okorie (eds) Readings in Agricultural Finance, Longman, Nigeria Plc. Lagos, pp. 44-58.
  • Okurut N, Thuto B. 2007. Informal Financial Markets in Botswana: A Case Study of Gaborone City. Study prepared for Botswana Institute for Development Policy Analysis (BIDPA).
  • Olaiya SA. 2005. Informal Financial Sector and Poverty Alleviation in Nigeria. Proceedings of the National Conference on Informal Financial Sector and Sustainable Development in Nigeria, Ado-Ekiti: Department of Banking and Finance University of Ado-Ekiti, Ado-Ekiti.
  • Osondu CK, Ijioma JC, Udah SC. 2015. Informal Loan Demand and Repayment Potential of Farmers in Ohafia Local Government Area of Abia State, Nigeria. American J Busin Econ Manage, 3(4): 214-224.
  • Tra PT, Lensink R. 2004. Household borrowing in Vietnam: a comparative study of default risk of informal, formal and semi - informal credit. Paper presented at the Expert Group on Development Issues (EGDI) and United Nations University (UNU) – World Institute for Development Economics Research (WIDER) Conference. Unlocking human potential: linking the Informal and Formal sectors. Helsinki, Finland.
  • Udoh EJ. 2005. Demand and control of credit from informal sources by rice producing females of Akwa Ibom State, Nigeria. J Agric Soc Sci, 1(2): 152-155.
  • Uzokwe UN, Ofuoku AU, Dafe D. 2017. Male and female participation in selected Agricultural Development Programmes in Edo state, Nigeria. J Agric Exten, 21: 15-26.
  • Von-Pischke LS, Elumeka BL, Kukuliba SB. 1991. Rural Financial Markets in Developing Countries. Baltimore: The John Hopkins University.

Why Worry About Informal Money Lenders Patronage? A Research Agenda: Evidence From Delta State, Nigeria

Year 2019, Volume: 2 Issue: 2, 71 - 78, 01.04.2019

Abstract

Credit
access will propel economic activities to increase the performance of the
farmers to move from everyday for survival to planning for the future. This
study assessed informal money lenders patronage by farmers in Delta State,
Nigeria. Multistage random sampling procedure was used in the study. Primary
data were obtained from 240 borrowers using structured questionnaire and
interview schedule. Descriptive statistics, t-test and probit regression
analysis were used for the analysis. The result of the study indicated that
54.9% of borrowers had an age range of 34-53 years. Majority of the borrowers
were males (77%), married (78.8%), educated (96%) with household size of
1-5persons (48%). About 59% had farm size of less than one hectare while 49.6%
of borrowers earned income less than N 100,000. The result of the probit
regression analysis showed that patronage of informal money lenders were
influenced by education, occupation, household size, farm size, marital status,
effectiveness and location. The result of t-test confirmed that there was
significant relationship between socioeconomic characteristics of smallholder
farmers and informal money lenders patronage in the study area. The result
indicates that loans from informal money lenders have helped overall
performance. The major constraints of borrowers were high interest rate, small
volume of cash disbursed and collateral requirement. This requires government’s
intervention through the regulation of the activities of informal money lenders
with respect to interest rate charged so as to reduce debt burden worries among
small-scale farmers.

References

  • Adeoye PB. 2005. Informal financial sector and poverty alleviation. Proceedings of the National Conference on Informal Financial Sector and Sustainable Development in Nigeria, pp.93-96.
  • Ajagbe FA, Adewoye JO, Ajetomobi JO. 2007. An evaluation of financial performance of community banks in Ogbomoso area of Oyo state, Nigeria. Inter Busin Manage, 1(4): 65-69.
  • Bouman FYA. 1995. Rotating and accumulating savings and credit associations: a development perspective. World Develop, 23(3): 371-384.
  • Ezeh CI, Anyiro CO, Obioma NQ, Chilaka AB. 2012. Financial Analysis of vegetable enterprises under the National Fadama II Development project (NFDP II) in Imo State, Nigeria. Inter J Applied Res Tech, 1(3): 30-39.
  • Gebrekidan A. 2006. The impact of micro financing Institutions on the livelihood of the rural poor. Seminar Series, Department of Business Management, Adama University, Nazareth, Ethiopia.
  • Gujarati DN. 2003. Basic Econometrics. Tata McGraw-Hill Edition, New York.
  • Jones JHM, Harford N, Sakyi-Dawson O, Sey A. 1998. Financial Sector Linkages in Renewable Natural Resource (RNR) Sector in Ghana, Poverty Research Unit in Sussex (PRUS) Working Paper, 3: 103-115.
  • Khandker SR, Farugee RR. 2001. The impact of farm credit in Pakistan. The World Bank (Technical Paper No. 258). Washington, DC.
  • Konare K. 2001. Challenges to Agricultural Financing in Mali. A Plan B Paper submitted to Michigan State University in Partial Fulfilment of the Requirement for the Degree of MSc Agricultural Economics.
  • Lawal WA, Abdullahi IB. 2011. Impact of informal agricultural financing on agricultural production in the rural economy of Kwara State, Nigeria. Inter J Busin Soc Sci, 19(2): 241-248.
  • Mehrteab HT. 2005. Adverse selection and moral hazard in group- based lending: evidence from Eritrea. PhD Thesis, Faculty of Economics, University of Groningen, The Netherlands.
  • National Population Commission (NPC). 2006. Bureau of Statistics.
  • Nwaru JC. 2004. Rural credit markets and resource use in arable crop production in Imo State of Nigeria. Ph.D. Dissertation, Michael Okpara University of Agriculture, Umudike, Nigeria.
  • Nwaru JC. 2011. Determinants of informal credit demand and supply among food crop farmers in Akwa Ibom state, Nigeria. J Rural Comm Develop, 6(1): 129–139.
  • Okorie A. 2001. Management of Risks and Defaults in Agricultural lending. M.A. Ijere and A. Okorie (eds) Readings in Agricultural Finance, Longman, Nigeria Plc. Lagos, pp. 44-58.
  • Okurut N, Thuto B. 2007. Informal Financial Markets in Botswana: A Case Study of Gaborone City. Study prepared for Botswana Institute for Development Policy Analysis (BIDPA).
  • Olaiya SA. 2005. Informal Financial Sector and Poverty Alleviation in Nigeria. Proceedings of the National Conference on Informal Financial Sector and Sustainable Development in Nigeria, Ado-Ekiti: Department of Banking and Finance University of Ado-Ekiti, Ado-Ekiti.
  • Osondu CK, Ijioma JC, Udah SC. 2015. Informal Loan Demand and Repayment Potential of Farmers in Ohafia Local Government Area of Abia State, Nigeria. American J Busin Econ Manage, 3(4): 214-224.
  • Tra PT, Lensink R. 2004. Household borrowing in Vietnam: a comparative study of default risk of informal, formal and semi - informal credit. Paper presented at the Expert Group on Development Issues (EGDI) and United Nations University (UNU) – World Institute for Development Economics Research (WIDER) Conference. Unlocking human potential: linking the Informal and Formal sectors. Helsinki, Finland.
  • Udoh EJ. 2005. Demand and control of credit from informal sources by rice producing females of Akwa Ibom State, Nigeria. J Agric Soc Sci, 1(2): 152-155.
  • Uzokwe UN, Ofuoku AU, Dafe D. 2017. Male and female participation in selected Agricultural Development Programmes in Edo state, Nigeria. J Agric Exten, 21: 15-26.
  • Von-Pischke LS, Elumeka BL, Kukuliba SB. 1991. Rural Financial Markets in Developing Countries. Baltimore: The John Hopkins University.
There are 22 citations in total.

Details

Primary Language English
Subjects Zootechny (Other)
Journal Section Research Articles
Authors

Theophilus Miebi Gbıgbı 0000-0002-1335-7231

Publication Date April 1, 2019
Submission Date November 14, 2018
Acceptance Date December 7, 2018
Published in Issue Year 2019 Volume: 2 Issue: 2

Cite

APA Gbıgbı, T. M. (2019). Why Worry About Informal Money Lenders Patronage? A Research Agenda: Evidence From Delta State, Nigeria. Black Sea Journal of Agriculture, 2(2), 71-78.

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