Determinants of lack of credit access among indigenous vegetable producers in Nigeria: Implications for policy interventions

Abstract

In this study we assessed the determinants of lack of credit access among the Indigenous Vegetables (IVs) farmers based on primary data collected in a cross-sectional survey. Using descriptive statistics and logistic regression analysis, the results revealed that more females were involved in the indigenous vegetable production with average age of 40 years, seven household members, eight years of formal education and cultivating 0.76 acre of land. Only 8 % had access to credit and 76 % did not have contact with extension agents. The mean monthly income from indigenous vegetables production, off-farm income and savings were about ₦35,000 (US$96.83), ₦15,000 (US$42.12) and ₦13,000 (US$38.57), respectively. Further, lack of credit access significantly depended on gender (β = 0.15, P < 0.05), educational level (β = 0.11; P < 0.05), farming experience (β = 0.73; P < 0.05), off-farm income (β = 0.23, P < 0.05), saving habits (β = 0. 25; P < 0.01) and annual numbers of extension contact (β = 0.94, P < 0.01) of indigenous vegetable farmers. Therefore, improved access to formal education, extension supports, creation of gender-specific credit scheme and farm-based organisation (FBO) for indigenous vegetables farmers to sustain credit accessibility were advocated.

Keywords

• credit policy
• binary logit model
• access to loan
• farm-based organisation
• socio-economics
• off-farm income
• gender