Analysis of credit demand and supply markets among youth farmers in Agro-ecological zone B, Kogi State, Nigeria

Abstract

There has been a shift of dominance in the sources of credit markets in Nigeria from the Government to the private sector. Inadequacy of capital has been identified as one of the constraints faced by youth farmers. This research work aimed to analyse credit demand and supply markets among youth farmers. Data collected were analyzed using descriptive, multiple regression and Z-test. Most credits were sourced through informal souces by the youth farmers. Personal savings(65%), RoSCAs (52.5%) and Money lender(50.8%) respectively are from the informal sources while LAPO (42%) and even commercial bank (15%) which is the least are obtained from formal sources. Further, the study showed that 50% of the respondents demanded credit to the tune of N2, 000,000 while most of the credit supplied(45.83%) was only less than N100.000. The multiple regression results showed an R2 value of 0.65. The study identified the potential credit demanded by the farmers to be at the range of N1, 000,001-2,000,000. Furthermore, the study identified age, marital status, level of education, interest rate and credit awareness as the major determinants of the volume of actual credit supplied by youth farmers. The test for significant difference shows that there is significant difference in the amount of credit sourced and required by the youth farmers by 1%. The study recommends that the interest rate charged on credit facilities should be reduced to motivate the youth farming in the study area to source for credit