ABSTRACT
The study was conducted on the effect of Microcredit Financing on cassava Production in Ikpoba Okha Local Government Area, Edo State, Nigeria. The objectives were to describe the socio-economic characteristics of cassava farmers, describe the sources of micro-credit, determine the volume of credit obtained by farmers, determine and compare the effect of micro credit on cassava production by users and non-users of micro credit facilities and identify the constraints faced by cassava farmers in accessing credit.
Primary data were collected from 60 respondents using a well-structured questionnaire via interview method. Data were analyzed using descriptive statistics, inferential statistics, and multiple regression analysis. Secondary data were collected from 20 respondents by randomly selecting names from the lists of attendee of monthly workshop being organized for users of micro credit on cassava production from LAPO.
Findings reveal that majority of farmers were male (67.50%) for users and (77.50%) for non-credit users. Credit users and non-credit users both get credit from both money lenders and rotating savings association (20.00). The average revenue generated from cassava production for credit users was ₦239,533 at an average quantity of 27.42 bags with an average selling price of ₦6,520. The average Revenue generated for non-credit was ₦316,606.4 from an average quantity of 31bags with an average selling price of ₦7,437.5. The major constraints facing credit users include Lack of access to credit facilities, high interest rate, and process of getting loans. While the major constraints facing non-credit users include lack of security required, poor knowledge about micro credit. It was concluded that access to micro credit could offer more opportunities to farmers in terms of higher profit and expansion of farm holding.
