Publisher: Bachudo Science Co. Ltd

An Assessment of Sources and Utilization of Credit By Small Scale Farmers In Benin Metropolis of Edo State, Nigeria

K. O. Ilavbarhe
KEYWORDS: Assessment, Sources, Utilization, Credit Small Scale Farmers, Benin Metropolis


This study focused on the sources and uses of credit by small scale farmers in Benin metropolis of Edo state. Data were collected by the use of a well structured questionnaire administered to sixty (60) respondents randomly selected from the study area. Data were analyzed using simple descriptive statistics, chi-square and Z-test. Findings revealed that the formal credit sources contributed 30.64 percent of the total credit to only 12 farmers while the informal sources contributed 69.36 percent to 48 farmers The commercial banks, though loan.out the highest amount of credit per person (W30, 000), was the least patronized. "Esusu" on the other hand was the most patronized of the credit sources. Local merchants contributed lowest amount of credit per person (N5, 500). The performance of the credit sources was found to be significant (P<0.05). Furthermore, the effect of credit on expenditure on variable inputs, adoption of innovations and farmers' income was not significant. This may be due to amount. high cost of credit and loan diversion. It is recommended that banks and credit providers should give loans that are adequate in amount to avoid diversion.   

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