ABSTRACT

Inadequate capital is a major problem confronting small-holder enterprises including farmers in Nigeria, despite the fact that small scale farmers produce the bulk of the food consumed locally and some export crops which generate foreign exchange to the country. Micro credit is a powerful anti-poverty tool that has demonstrated relevance to people on six (6) continents and in nearly every country. Consequent upon the foregoing, this study is to determine access for formal microfinance among small holder farmers in Ezinihitte Mbaise local government area of Imo state, Nigeria. Specifically, it sought to describe the socio-economic characteristics of smallholder of the farmers in relation to access to micro credit; to examine demand for micro credit by comparing the amount of formal loans applied for with the amount approved and the amount actually received by the farmers from the micro finance bank in the study area; determine factors that influence access to micro credit in microfinance banks. Random sampling technique was used to select 50 beneficiaries. Instrument of data collection was through a set of structured and pre-tested questionnaire. The study employed descriptive statistics and multiple regression model as analytical tools. The results of the multiple regression analyses showed that the coefficient of interest rate, and credit applied were statistically significant at one percent probability level while distance to source of credit and membership were at 5 percent level. It was however recommended that Micro finance banks should ensure timely disbursement of loans to young, experienced and educated farmers who are more likely to utilize resources efficiently.