Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 20 ISSUE 3
Written by Felix Odemero ACHOJA
Cases of loan diversion among small scale poultry farmer borrowers in Nigeria have occupied central position in both scientific and public debates in recent times. The study examines the evidence of loan diversion as it affects the productivity of poultry farms and the need for extension financial literacy advisory services in Nigeria. Two hundred and forty respondents were randomly selected using multiple stage method. Quantitative and qualitative data were primarily obtained using questionnaire. Parametric and non-parametric statistical tools were used to analyze data. The finding of the study revealed that the surveyed poultry farmers were male (70.42%) with an average age of 46 years, married and operated small scale farms. A good number of the surveyed farmers (86.67%) had obtained loan and diverted varying amounts of the loans. The test of hypothesis indicates that loan diversion exerts a negative and significant effect on poultry agribusiness growth (P< 0.05). Loan diversion is a significant determinant of loan default rate of poultry agribusiness (P< 0.05). The study recommends that poultry farmers should be made to access extension financial literacy advisory services. They should utilize loans for the intended purpose of enhancing poultry productivity and wealth creation in Nigeria.
[Read full article] [Citation]
Next Issue will be published in April
