Agricultural Bank Credit Intervention And The Application of Big Push Theory to Beneficiaries:Evidence From Nigeria
Abstract
Up till now there is shortage of empirical evidence on volume of loan received that generates big push for the farmers and the bank to curtail abuse of fund and its determinants. The purpose of this study is to examine the agricultural bank credit intervention and the application of big push theory among beneficiaries in Nigeria so as to make advocacy for a bailout intervention. A total of 295 beneficiaries were randomly selected. A questionnaire was developed, and data collection was undertaken by means of a multistage sampling technique. Descriptive statistics, regression model and t-test analysis were used to analyze the data. The mean age of beneficiaries was 46 years old. The respondents had an average household size of 6 persons with 79.3% of the beneficiaries being literate with one form of formal education or the other. About 65.4% of the beneficiaries did not subscribe to membership of farmers groups. The beneficiaries had 13 years’ experience in arable crop farming. The average farm size was 1.57 ha. This tells us that the beneficiaries were small scale farmers. The result reveals that the region of big push was between $244.34-$977.37 The variables that had positive and substantial relationship with big push in the model were age of respondent, years spent in farming, education, farm size, cooperative membership, household size, collateral requirement and marital status. The outcome of the t-test indicated that there was much impact after benefiting from agricultural bank credit loan scheme in the area. The foremost constraints were collateral requirement and high interest rate. Loan acquisition procedure by agricultural bank credit should be made easier as well as the threshold of farmers financial management ability should be considered during disbursement of loan to farmers for effective utilization.
References
- Abdallah, A. (2016). Agricultural credit and technical efficiency in Ghana: is there a nexus? Agricultural Finance Review, 76(2),309-324.
- Abdullah, A.l .M., Muniady R., Yukthamarani, P.P., Zainol. N.R.B., Mohamad, M.R (2016). Micro-enterprise development initiatives and entrepreneurial competencies, innovativeness, and social capital in Malaysia. Development in Practice, 26(8),1094-1110.
- Adegbite, D. A..,Adeleye, O. A. (2011). Determinants of farmers’ access to micro-loan in Oyo State, Nigeria. Journal of Agricultural Research and Development, 10 (1)
- Agbo, F. U., Iroh, I. I., Ihemezie, E. J. (2015). Access to loan by vegetable farmers in Nigeria: A case study of Owerri agricultural zone of Imo State, Nigeria. Asian Journal oƒ Agricultural Research, 9, 155-165.
- Akinwale, J.A., Ladele, A.A., Olajide, B.R. (2016).Yield differentials among participating and non-participating rice farmers in public/private partnership in Benue and Ogun States, Nigeria..Agrosearch 16(1),23-37.
- Akudugu, M. A (2016).Agricultural productivity, credit and farm size nexus in Africa: A case study of Ghana, Agricultural Finance Review, 76 (2),288-308.
- Akudugu, M. A. (2012) Estimation of the determinants of credit demand by farmers and supply by rural banks in Ghana's Upper East Region. Asian Journal of Agriculture and Rural Development, 2(2), 189.
- Akudugu, M. A., Guo, E., Dadzie, S. K. (2012). Adoption of modern agricultural production technologies by farm households in Ghana: What factors influence their decisions?
- Ani, I.I. (2014). Impact of national fadama II development project on agricultural productivity in Federal Capital Territory, Abuja. Unpublished post field seminar M.Sc. Thesis presented to the Department of Agricultural Extension and Communication University of Agriculture, Makurdi. p67.
- Asogwa, B.C., Abu, O., Ocheche, G.E. (2014). Analysis of peasant farmers access to agricultural loan in Benue State, Nigeria. British Journal of Economics, Management and Trade. 4(10), 1525-1543.
- Beck, T. (2007). Financing Constraints of SME’s in developing Countries. Evidence, determinants solutions. Journal of International Money and Finance 31(2): 401-441.
- Currie, L. (2018). The big push and balanced and unbalanced growth. Institutional Economics Magazine. Rev.econ.inst.vol.20 no.39 Bogotá July / Dec.2018. http://dx.doi.org/10.18601/01245996.v20n39.04.
- D’Espallier B., M. Hudon, Szafarz. A. (2016). Aid volatility and social performance in microfinance. Nonprofit and Voluntary Sector Quarterly, 46 (1),116-140.
- Edet G.E., Etim Nsikak-Abasi. A. (2017). Credit Accessibility to Poor Rural Farmers: A Logistic Regression Approach. American Journal of Business, Economics and Management. 5(3):18-24.
- Elias, S., Ahmad, I.M., Paul, B.L (2015). Determinants of access to agricultural loan for small and marginal farmers in Nigeria: A case study of Owerri agricultural zone of Imo State, Nigeria. Asian Journal of Agricultural Research, 9,155-165.
- FAO. (2016). Nigeria at a Glance. Available at www.fao.org/nigeria-at-a-glance/en (Accessed on 01July 2016). http://www.ajol.info/index.php/jard/article/view/74029.
- Gbigbi, T.M. (2021). Technical efficiency and profitability of cassava production in Delta State: A stochastic frontier production function analysis. Journal of Tekirdag Agricultural Faculty,18(1),21-31.
- Gbigbi TM. 2020. Impact of multinational oil firms' corporate social responsibility on agricultural development in host communities in Nigeria. Black Sea Journal of Agriculture, 3(2): 146-154
- Ibitoye, S.J.(2010). The influence of farm size, educational status and farm income on adoption of maize varieties in Kogi State, Nigeria. American-Euro Asian Journal of Sustainable Agriculture 4(1),20-25.
- Lu, W.C., Hassan, M.A. (2011). Effect of microloan programme on rural poverty alleviation: An empirical study of four major microloan organization at Monirampur Upazila in Bangladesh. African Journal of Agricultural Research, 6(26), 5742-5746.
- Mgbenka, R.N., Mbah, E.N. (2016). A review of smallholder farming in Nigeria: Need for transformation. International Journal of Agricultural Extension and Rural Development Studies, 3(2):43-54.
- Nouman, M., Siddiqi, M. F., Asim, S. M., Hussain, Z. (2013). Impact of socio-economic characteristics of farmers on access to agricultural credit. Sarhad Journal of Agriculture, 29(3), 469-476.
- Okojie, C., Monye-Emina, A., Eghafona, K., Osaghae, G., Ehiakhamen, J.O. (2010): Institutional environment and access to microfinance by self-employed women in the rural areas of Edo State. NSSP Brief No.14. International Food Policy Research Institute: Washington. D.C.
- Ololade, R. A. and Olagunju, F. I. (2013). Determinants of access to loan among rural farmers in Oyo State, Nigeria. Global Journal of Science Frontier Research Agriculture and Veterinary Sciences, 13(2), 16-22.
- Sadiq, M.M., Kolo, M.D., Akerele, F.O. (2015). Determinants of loan constraints of farming households participating in National Special Programme for Food Security (NSPFS) in Niger State, Nigeria. Global Journal of Agricultural Economics and Econometrics, 3(1), 114-120.
- Sarker, M. N. I. (2016.). Role of banks on agricultural development in Bangladesh. International Journal of Ecology and Development Research, 1(1), 010-015.
- Semerci, A., Celik, A.D.(2017).Reflections of Animal Husbandry Subsidies on Dairy Cattle Enterprises: A Case Study of Hatay Province-Turkey. Journal of Tekirdag Agricultural Faculty,14(2),92-100.
- Sofayo, S. A. (2017). Credit risk management techniques and loan portfolio quality of Nigerian commercial banks (2006-2015). A Ph.D thesis submitted in the department of business administration and marketing Babcock business school Babcock University Ilishan-Remo Ogun State Nigeria.
- Yehuala, S.(2008). Determinants of smallholder farmers access to formal credit: The case of Metema Woreda, North Gondar, Ethiopia (Unpublished master’s thesis). Haramaya University, Ethiopia
Agricultural Bank Credit Intervention And The Application of Big Push Theory to Beneficiaries:Evidence From Nigeria
Abstract
Up till now there is shortage of empirical evidence on volume of loan received that generates big push for the farmers and the bank to curtail abuse of fund and its determinants. The purpose of this study is to examine the agricultural bank credit intervention and the application of big push theory among beneficiaries in Nigeria so as to make advocacy for a bailout intervention. A total of 295 beneficiaries were randomly selected. A questionnaire was developed, and data collection was undertaken by means of a multistage sampling technique. Descriptive statistics, regression model and t-test analysis were used to analyze the data. The mean age of beneficiaries was 46 years old. The respondents had an average household size of 6 persons with 79.3% of the beneficiaries being literate with one form of formal education or the other. About 65.4% of the beneficiaries did not subscribe to membership of farmers groups. The beneficiaries had 13 years’ experience in arable crop farming. The average farm size was 1.57 ha. This tells us that the beneficiaries were small scale farmers. The result reveals that the region of big push was between $244.34-$977.37 The variables that had positive and substantial relationship with big push in the model were age of respondent, years spent in farming, education, farm size, cooperative membership, household size, collateral requirement and marital status. The outcome of the t-test indicated that there was much impact after benefiting from agricultural bank credit loan scheme in the area. The foremost constraints were collateral requirement and high interest rate. Loan acquisition procedure by agricultural bank credit should be made easier as well as the threshold of farmers financial management ability should be considered during disbursement of loan to farmers for effective utilization.
References
- Abdallah, A. (2016). Agricultural credit and technical efficiency in Ghana: is there a nexus? Agricultural Finance Review, 76(2),309-324.
- Abdullah, A.l .M., Muniady R., Yukthamarani, P.P., Zainol. N.R.B., Mohamad, M.R (2016). Micro-enterprise development initiatives and entrepreneurial competencies, innovativeness, and social capital in Malaysia. Development in Practice, 26(8),1094-1110.
- Adegbite, D. A..,Adeleye, O. A. (2011). Determinants of farmers’ access to micro-loan in Oyo State, Nigeria. Journal of Agricultural Research and Development, 10 (1)
- Agbo, F. U., Iroh, I. I., Ihemezie, E. J. (2015). Access to loan by vegetable farmers in Nigeria: A case study of Owerri agricultural zone of Imo State, Nigeria. Asian Journal oƒ Agricultural Research, 9, 155-165.
- Akinwale, J.A., Ladele, A.A., Olajide, B.R. (2016).Yield differentials among participating and non-participating rice farmers in public/private partnership in Benue and Ogun States, Nigeria..Agrosearch 16(1),23-37.
- Akudugu, M. A (2016).Agricultural productivity, credit and farm size nexus in Africa: A case study of Ghana, Agricultural Finance Review, 76 (2),288-308.
- Akudugu, M. A. (2012) Estimation of the determinants of credit demand by farmers and supply by rural banks in Ghana's Upper East Region. Asian Journal of Agriculture and Rural Development, 2(2), 189.
- Akudugu, M. A., Guo, E., Dadzie, S. K. (2012). Adoption of modern agricultural production technologies by farm households in Ghana: What factors influence their decisions?
- Ani, I.I. (2014). Impact of national fadama II development project on agricultural productivity in Federal Capital Territory, Abuja. Unpublished post field seminar M.Sc. Thesis presented to the Department of Agricultural Extension and Communication University of Agriculture, Makurdi. p67.
- Asogwa, B.C., Abu, O., Ocheche, G.E. (2014). Analysis of peasant farmers access to agricultural loan in Benue State, Nigeria. British Journal of Economics, Management and Trade. 4(10), 1525-1543.
- Beck, T. (2007). Financing Constraints of SME’s in developing Countries. Evidence, determinants solutions. Journal of International Money and Finance 31(2): 401-441.
- Currie, L. (2018). The big push and balanced and unbalanced growth. Institutional Economics Magazine. Rev.econ.inst.vol.20 no.39 Bogotá July / Dec.2018. http://dx.doi.org/10.18601/01245996.v20n39.04.
- D’Espallier B., M. Hudon, Szafarz. A. (2016). Aid volatility and social performance in microfinance. Nonprofit and Voluntary Sector Quarterly, 46 (1),116-140.
- Edet G.E., Etim Nsikak-Abasi. A. (2017). Credit Accessibility to Poor Rural Farmers: A Logistic Regression Approach. American Journal of Business, Economics and Management. 5(3):18-24.
- Elias, S., Ahmad, I.M., Paul, B.L (2015). Determinants of access to agricultural loan for small and marginal farmers in Nigeria: A case study of Owerri agricultural zone of Imo State, Nigeria. Asian Journal of Agricultural Research, 9,155-165.
- FAO. (2016). Nigeria at a Glance. Available at www.fao.org/nigeria-at-a-glance/en (Accessed on 01July 2016). http://www.ajol.info/index.php/jard/article/view/74029.
- Gbigbi, T.M. (2021). Technical efficiency and profitability of cassava production in Delta State: A stochastic frontier production function analysis. Journal of Tekirdag Agricultural Faculty,18(1),21-31.
- Gbigbi TM. 2020. Impact of multinational oil firms' corporate social responsibility on agricultural development in host communities in Nigeria. Black Sea Journal of Agriculture, 3(2): 146-154
- Ibitoye, S.J.(2010). The influence of farm size, educational status and farm income on adoption of maize varieties in Kogi State, Nigeria. American-Euro Asian Journal of Sustainable Agriculture 4(1),20-25.
- Lu, W.C., Hassan, M.A. (2011). Effect of microloan programme on rural poverty alleviation: An empirical study of four major microloan organization at Monirampur Upazila in Bangladesh. African Journal of Agricultural Research, 6(26), 5742-5746.
- Mgbenka, R.N., Mbah, E.N. (2016). A review of smallholder farming in Nigeria: Need for transformation. International Journal of Agricultural Extension and Rural Development Studies, 3(2):43-54.
- Nouman, M., Siddiqi, M. F., Asim, S. M., Hussain, Z. (2013). Impact of socio-economic characteristics of farmers on access to agricultural credit. Sarhad Journal of Agriculture, 29(3), 469-476.
- Okojie, C., Monye-Emina, A., Eghafona, K., Osaghae, G., Ehiakhamen, J.O. (2010): Institutional environment and access to microfinance by self-employed women in the rural areas of Edo State. NSSP Brief No.14. International Food Policy Research Institute: Washington. D.C.
- Ololade, R. A. and Olagunju, F. I. (2013). Determinants of access to loan among rural farmers in Oyo State, Nigeria. Global Journal of Science Frontier Research Agriculture and Veterinary Sciences, 13(2), 16-22.
- Sadiq, M.M., Kolo, M.D., Akerele, F.O. (2015). Determinants of loan constraints of farming households participating in National Special Programme for Food Security (NSPFS) in Niger State, Nigeria. Global Journal of Agricultural Economics and Econometrics, 3(1), 114-120.
- Sarker, M. N. I. (2016.). Role of banks on agricultural development in Bangladesh. International Journal of Ecology and Development Research, 1(1), 010-015.
- Semerci, A., Celik, A.D.(2017).Reflections of Animal Husbandry Subsidies on Dairy Cattle Enterprises: A Case Study of Hatay Province-Turkey. Journal of Tekirdag Agricultural Faculty,14(2),92-100.
- Sofayo, S. A. (2017). Credit risk management techniques and loan portfolio quality of Nigerian commercial banks (2006-2015). A Ph.D thesis submitted in the department of business administration and marketing Babcock business school Babcock University Ilishan-Remo Ogun State Nigeria.
- Yehuala, S.(2008). Determinants of smallholder farmers access to formal credit: The case of Metema Woreda, North Gondar, Ethiopia (Unpublished master’s thesis). Haramaya University, Ethiopia
Details
| Primary Language | English |
|---|---|
| Journal Section | Articles |
| Authors | |
| Early Pub Date | May 17, 2022 |
| Publication Date | May 31, 2022 |
| Submission Date | January 24, 2021 |
| Acceptance Date | December 27, 2021 |
| Published in Issue | Year 2022 Volume: 19 Issue: 2 |
