ABSTRACT

The study analyzed flexors influencing solvency among agribusiness enterprises in Irno State, Nigeria. Beyond the broad objective, the study sought specially to examine examined the assets and liabilities of the enterprises, determined the financial health of the enterprises, analyzed the solvency status of the enterprises and ascertained the determinants of solvency of the agribusiness enterprises in Imo state, Nigeria. A total of 60 agribusiness enterprises were selected from which data and information were elicited using the questionnaire. Analytically, the study employed descriptive statistics, the Altman Z-score model, financial ratio analysis and the probit regressions in attainment of specific objectives. The analytical result revealed that that 60% of the agribusiness enterprises were adjudged to be financially strong (Z-score > 2.90) while 40% of the enterprises were financially weak (Z-score <1.23), the agribusiness enterprises interest charges are covered by 112.07 tunes by their available funds and total assets turnover of 3.284 times; determinants of solvency of the enterprises using the probit analysis showed that access to loan was a positive signficant determinant of the solvency of the enterprise by its significant influence on probability of the financial health of the enterprises at l% probability level and government policy and interest rate negatively and sign ficantly contributed to the solvency of the agribusiness enterprises by their contribution to its financial health status at 5% and 10% levels of probability. The study concludes that that development of Nigeria 's agribusiness enterprises through its solvency status and financial health is possible with the effective exploitation of provisions of production facilities at affordable rate; opening up of local and international markets and creating access to adequate financing and recommends amongst others that programmes and policies meant to promote capital access of the agribusiness enterprises should be promoted and executed judiciously as it will help in improvement of their fixed and current assets.