ACCESS TO FORMAL CREDIT FACILITIES AMONG SMALLSCALE CROP FARMERS’ IN GWAGWALADA AREA COUNCIL, ABUJA, NIGERIA

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This study examined access to formal credit facilities among small scale crop farmers in Gwagwalada Area Council, Abuja, Nigeria. The specific objectives of this research were to: identify the socio-economic characteristics of sampled small scale crop farmers in the study area; examine sources and accessibility of credit to the sampled small scale crop farmers in the study area, evaluate factors influencing accessibility of credit among the sampled small scale crop farmers in the study area and identify problems encountered by farmers in accessing credit. Primary data were used for the study. Systemic random sampling technique was adopted; one hundred (100) respondents were selected. The data were collected and analysed using descriptive statistics and Logit Regression Model (LRM). The study showed that eighty seven (87) percent of the sampled small scale crop farmers were male. About eighty six (86) percent of the respondents had their age range from 30-60 years. Eighty three (83) percent of the respondents were married. Furthermore, eighty one (81) percent had formal education. The study further showed that thirty one; (31) percent of farmers obtained credit facilities from banks. The result of Logit regression model showed that farm size, membership of co-operative and household distance from source of credit had significant positive influence on access to formal agricultural credit among the respondents in the study area at P<0.05; P<0.01; and P<0.01 levels respectively. Delay in approval and disbursement of credit, lack of collateral security as well as too much bank procedures and requirements constituted the major constraints in accessing formal agricultural credit among the respondents in the sample area. The study recommends that credit should be disbursed to farmers with minimum delay; formal credit institutions should be widely spread and situated in places close to farmers. Also farmers should be encouraged by relevant government agencies to seek ways of increasing their farm size and rural farmers should be encouraged to join co-operative associations as this can increase their chances of accessing formal agricultural credit facilities.

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