ABSTRACT

 The general objective of the study was to analyse the demographic factors that affect loan repayment among agribusiness operators in Abia state, Nigeria. The specific objectives are to: describe the socio- demographic profiles of the respondents in the study area; examine the sources of these loans; estimate the demographic factors that influence loan repayment in the study area; examine the major problems and challenges faced by the borrowers, and make recommendations based on the findings. Random sampling was used to select rural and periurban farmer’s respondents across the state. Two local governments were randomly selected from each ofthe agricultural zones. From Aba agricultural zones, Ukwa west and Isiala Ngwa south local government areas were chosen. Umuahia north and Ikwuano local government areas were chosen from Umuahia agricultural zones; while Umunneochi and Isiukwuato was local government areas were chosen from Ohaha agricultural zone. Two communities were chosen at random from each selected local government areas. Ten farmers were purposely chosen from each selected community giving a sample size of 120 farmers. The selected farmers were personally interviewed with a structured questionnaire. Data used in this study were from primarily sources. Questionnaire was prepared and administered to the selected respondents in the study area. Objectives (i), and (ii) was analyzed using descriptive statistics such as means, frequency and percentages. However, objective (iii) employed Tobit model. From the socioeconomic profile ofthe respondents, the mean or average age ofthe operators was 39 years and 8 months; the minimum was 26 years, while the maximum number of years was 65 years. The average number of years spent by the operators in school was 10 years and 3 months, having spent a maximum of 23 years. The minimum number of persons in their households was 1 person; while on the average 4 persons were found. The maximum number of years in terms of experience was 30 years, with an average of 7 years and 5 months and a minimum oftwo years. A minimum of 30,000.00 accrued in terms ofincome with a maximum of 0900,000.00 and a mean income of 095,957.72 .The result also showed that majority ofthe respondents accounting for 76.67 percent obtained their loans from informal sources. However, only about 23.33 percent of the agribusiness enterprenurers obtained their loans from formal sources. The maximum likelihood estimates ofthe factors that influence loan repayment among agribusiness operators in Abia state, Nigeria, indicated that the coefficients of age of the enterprenurers, educational attainment, sex, household size, experience, loan diversion, and value of collateral to loan amount were significant with different signs and probability levels. The study therefore, recommends that: Enlightenment should be given to the farmers on the need to utilize the loans strictly for the purpose it was meant fbr. This will lead to increased repayment rate. This enlightenment will also correct the age long impression that, this is a part ofthe national cake which ordinarily should go to the farmers. Policies which tend to discriminate against the female gender in terms ofcredit acquisition should be reconsidered. This is coming against the backdrop that the female gender who were opportune to obtain these credits repaid more than their male counterparts.