Authors : F.I. Olagunju and R. Adeyemo
Abstract: The study examined the factors that determine the loan repayment decision among the small-scale farmers of Nigerian Agricultural Cooperative and rural Development Bank (NACRDB) in Southwestern Nigeria. Data for the study were collected through a three- multi stage sampling technique, which culminated in the final selection of one hundred and eighty respondents from 3 branches of the bank in Oyo and Ondo states. The results obtained revealed that the higher repayment rate (78.02%) in 2001 was as a result of merger effect of Nigerian Agricultural Cooperatives Bank (NACB) with the risk assets of the defunct Family Economic Advancement Programme (FEAP) and Peoples Bank of Nigeria (PBN). The Tobit regression results on loan repayment of Log-likelihood function (-17.99385) showed that farm experience, farm location, cost of obtaining loan, visitation, borrowing frequency and education with normalized coefficients of �0.0285, -0.0661, -0.1196E-04 0.1048, 0.0518 and 0.0112, respectively were very important factors in determining the repayment performance of the beneficiaries in all the institutions. The study concluded that there was a great potential for improving the loan repayment capacity of the beneficiaries if adequate visitation policy and timely disbursement lag policy that increase the accessibility of farmers to loan are adopted and this would be an effective measures to aid flow of funds into the agricultural sector.
F.I. Olagunju and R. Adeyemo , 2007. Determinants of Repayment Decision among Small Holder Farmers in Southwestern Nigeria . Pakistan Journal of Social Sciences, 4: 677-686.