Socio-economic factors influencing demand for credit facilities among fish farmers in Oyo State, Nigeria

Fatai Abiola Azeez, Adekunle Segun Adebayo, Olajumoke Celinah Odeyale, Mojisola Olubukola Nosiru, Olukunle Adelere Akinboade

Abstract: This study assessed the level at which fish farmers demand for credit loans, the terms and conditions for seeking credit facilities as well as the factors that influence seeking credit among fish farmers in Oyo State. A three-stage random sampling approach was adopted in selecting the respondents for the study. Simple descriptive statistics such as frequency counts and percentages were used to analyze the characteristics of seeking credit among fish farmers. Likewise, Likert Scale was used to analyze the level at which the respondents seek for credit facilities while Logit Model was used to determine the factors influencing seeking credit. The study concluded that interest rate and conditions for producing guarantors were the main challenges facing the fish farmers in obtaining loan facility. Further, loan repayment through family and friends was usually irregular possibly because of close relationship between the lenders and borrowers. The study therefore recommended that the financial institutions and other medium should reduce their interest rates so that fish farmers would be able to pay back easily. Likewise, Government should initiate credit borrowing friendly policies that will reduce bureaucratic bottlenecks that are usually associated with credit access through banks and other related financial agencies in order to encourage easy access to credit by the farmers.

Keywords: accessibility; credit; demand; factor; fish farming; interest rate

Date published: 2022-03-16