Impact of microfinance bank loan on aquaculture development in Ogun State, Nigeria
Pertanika Journal of Social Science and Humanities
Agricultural Media Resources and Extension Centre, University of Agriculture, P.M.B 2240, Abeokuta, Ogun State, Nigeria; Department of Aquaculture and Fisheries Management, University of Agriculture, P.M.B 2240, Abeokuta, Ogun State, Nigeria
This study was conducted to assess the impacts of microfinance bank loan on beneficiaries and non-beneficiaries aquaculturists in Ogun state, Nigeria. A total of eighty aquaculturists (40 beneficiaries and 40 non-beneficiaries) were randomly selected from four agricultural extension zones, as classified by Ogun State Agricultural Development Programme (OGADEP). Data collected were scored and the percentages of the parameters were calculated appropriately. The types of loan disbursed to beneficiaries revealed that 27.5% was in kind, 7.5% in cash, and the remaining 65% was both in cash and kind. The credit package ranged between N50,000 and N250,000, with 40% of them ranging between N 100,001 and N150,000 were approved, and 70% of the loans were released timely. The results obtained from the membership of cooperative showed that 87.5% of the beneficiaries and 37.5% of the non-beneficiaries were cooperators. Meanwhile, 65% of the beneficiaries earned a higher income (N62,500), while only 42.5% of the non-beneficiaries earned this amount per respondent. Major constraints hindering aquaculture development in the study area include high cost of feeding, poor marketing channel, lack of adequate capital and high cost of investment. Lastly, recommendations are made for the financial institutions, government and other lending institutions on how to improve the livelihood of the aquaculturists, i.e. by increasing the loans that are usually granted. © Universiti Putra Malaysia Press.