ABSTRACT

The broad objective of this study was to appraise the NDE farmers' credit scheme in Abia State. The specific objectives were to - determine the adequacy of loan granted to beneficiaries of the scheme. - determine the level and rate of loan repayment by beneficiaries - identify factors that influence loan repayment by beneficiaries. - identify other support services provided to beneficiaries of the scheme. Primary data on loan repayment and other socio-economic characteristics of respondents were obtained through the use of structural questionnaire administered to NDE loan beneficiaries at Isuikwuato and Bende Local Government Areas of Abia State. Secondary data were obtained from relevant NDE staff at the NDE office in Umuahia. Data collected were analysed using basic statistics such as percentages, means and frequency distribution as well as multiple regression analysis. The ordinary least square regression technique was used to estimate the determinants of loan repayment. The results indicate that loans granted beneficiaries of the scheme were inadequate. The level of loan repayment was low, indicating high levels of default. Amount of credit received and household size were significant and positive determinants of loan repayment. Support services provided by NDE include sourcing acquisition and allocation of land to beneficiaries, pro-cerement and distribution of farm inputs and training of beneficiaries. An intensive study to determine the capital requirements for a given level of farm investment should be under- taken before loans are allocated.