ABSTRACT

Institutional credit delivery to farmers in Afikpo North Local Government Area of Ebonyi State, Nigeria was evaluated using the Nigeria Agricultural Co-operative and Rural Development Bank to, analyse the socio-economic characteristics of the farmers, determine the factors that influence loan repayment performance among beneficiaries of NACRBD from 2000-2008, and determine the loan repayment performance among the beneficiaries of NACRBD credit scheme in the study area from 2000-2008. Data were analysed using descriptive statistics, multiple regression and discriminant functions. A total of 100 respondents were randomly selected from the beneficiaries of NACRDB credit scheme from 2000 -2008 from the autonomous communities that make up Afikpo North LGA. Two sets of well structured and pre-tested questionnaires were administered to the 100 respondents and to the manager NACRDB, Afikpo Branch. The result of the socio-economic characteristics showed that farmers within the age bracket of 31-40 years (44%) were the main beneficiaries of the scheme, 30% of the sample had no formal education, 50% of the beneficiaries had a farming experience of 20 years and above and 60% of the beneficiaries financed their farm operation with their personal savings and NACRDB credit scheme. The study also revealed that 43% of the farmers had a household size numbering from 11-20 persons. It was found out in the study using multiple regression analysis that age, farm size, loan period, farming experience, education, gender, household size, income, distance, and amount borrowed are factors that influence loan repayment performance. The discriminant function analysis result revealed that 72% of the beneficiaries were operating performing loans, while 28% were operating non performing loans. Based on the results, it was recommended that preference should be given to those farmers operating performing loans on loan approval and disbursement so that defaults will be reduced; the relatively more experienced farmers should be given preference on loan approval because farming experience contributed positively to loan repayment and performance and so on.