The Impact of Agricultural Credit on Rural Poverty in some selected Local Government Areas of Katsina State, Nigeria
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Abstract
A study on the impact of agricultural credit in the alleviation of rural
poverty in some selected Local Government Areas in Katsina state was
undertaken through field surveys, conducted between June and December
2022. The primary data was collected from 100 respondents randomly
selected from four purposively selected Local Government Areas. The data
generated were subjected to descriptive and inferential statistical t-test.
The majority (76%) of the credit-benefiting farmers were males while 24%
were females. Most respondents (84%) acquired their land through
inheritance. Sixty-six (66%) percent of the respondents benefited from the
cash credit while 34% benefited from the credit in kind. The respondents
received their credit from the Bank of Agriculture (BOA), Community
Bank (CB), KTARDA/UNDP and Katsina State Development Fund
(Gidauniya) The average land holding of respondents after benefiting from
credit was (6.45 ha) compared to (4.81ha) before the credit program. The
average income of the respondents after the credit was N155,945 as
compared to N51,824 before benefiting from the credit. The respondent's
average savings after benefiting from the credit was N86,000, as compared
to N16,000.00 savings before borrowing. The yield of the benefiting
farmers after the credit is significantly higher than before the credit.
Lending agencies ought to refrain from imposing guarantees that
disqualify most potential candidates. Alternative methods, such as
solidarity groups and circles consisting of three to eight small business
owners who share responsibility for loan repayment, effectively replace
traditional guarantees. In the community, an individual's reputation holds
greater significance than collateral.
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