Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria

Okoroji Nma Okechukwu; Nalwoga Mukokoma Maurice; Bwanika Godfrey

doi:doi:10.11648/j.ijfbr.20220803.11

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Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria

Okoroji Nma Okechukwu, Nalwoga Mukokoma Maurice, Bwanika Godfrey

Published in International Journal of Finance and Banking Research (Volume 8, Issue 3)

Received: 24 January 2022 Accepted: 15 February 2022 Published: 9 June 2022

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Abstract

The agricultural sector provides food and raw materials for human use, this sub-sector in Nigeria is dominated by smallholder farmers who are often time limited by finance. An important crop in this sector is rice which have gain acceptance among the populace. Most farmers in rural areas engaged in rice production are sometimes un-bankable which calls for the microfinance services to bridge the gap created by long absence of commercial banks. To this effect; the study was on the effect of microfinance services on smallholder rice productivity in Anambra State, Nigeria. The study had three specific objectives which identified the microfinance services smallholder farmers receive to improve their rice productivity, ascertained the effect of microfinance services on smallholder rice productivity, and examined the constraints to smallholder rice productivity in Anambra State, Nigeria. Data for the study were collected with a structured questionnaire from a cross-section of randomly selected 300 smallholder rice farmers. The data were analyzed with a combination of analytical tools such as descriptive statistics, Logit regression model, principal factor analysis (PFA), linear regression analysis, and inferential statistics such as t-test. The researcher found that in order of ranking, the services that the smallholders’ rice farmers received in the study area to improve their productivity are micro-savings (60.3%), remittance service (54.0%) among other services. These microfinance services significantly influenced rice productivity at a 1% level of probability. The socioeconomic determinants to microfinance services received by the smallholders’ farmers are: age, marital status, education, household size, and farm size. Lastly, the study equally, rotated the constraints to rice production into three factors which is named as management, institutional, and location factors; at the management factor; there is a need to keep a close watch over poor access to information (0.777), high cost of machines (0.745), and inadequate access to finance for expansion (0.707) among other constraints. At the institutional factor; eagle eye should be kept on cattle menace (0.755), and high cost of input (0.705). While at the location side; one should be mindful of high cost of water management (0.784), and transportation issue (0.733). The researcher therefore recommend that information on how to access microfinance service and the best way to produce and sell rice should be made available to the public domain, government should invest in setting up a good information management system to help popularize the services of microfinance banks in the rural areas.

Published in	International Journal of Finance and Banking Research (Volume 8, Issue 3)
DOI	10.11648/j.ijfbr.20220803.11
Page(s)	84-94
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Microfinance Services, Smallholder, Rice Production, Anambra State, Nigeria

References

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APA Style

Okoroji Nma Okechukwu, Nalwoga Mukokoma Maurice, Bwanika Godfrey. (2022). Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria. International Journal of Finance and Banking Research, 8(3), 84-94. https://doi.org/10.11648/j.ijfbr.20220803.11

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ACS Style

Okoroji Nma Okechukwu; Nalwoga Mukokoma Maurice; Bwanika Godfrey. Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria. Int. J. Finance Bank. Res. 2022, 8(3), 84-94. doi: 10.11648/j.ijfbr.20220803.11

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AMA Style

Okoroji Nma Okechukwu, Nalwoga Mukokoma Maurice, Bwanika Godfrey. Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria. Int J Finance Bank Res. 2022;8(3):84-94. doi: 10.11648/j.ijfbr.20220803.11

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@article{10.11648/j.ijfbr.20220803.11,
  author = {Okoroji Nma Okechukwu and Nalwoga Mukokoma Maurice and Bwanika Godfrey},
  title = {Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {8},
  number = {3},
  pages = {84-94},
  doi = {10.11648/j.ijfbr.20220803.11},
  url = {https://doi.org/10.11648/j.ijfbr.20220803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20220803.11},
  abstract = {The agricultural sector provides food and raw materials for human use, this sub-sector in Nigeria is dominated by smallholder farmers who are often time limited by finance. An important crop in this sector is rice which have gain acceptance among the populace. Most farmers in rural areas engaged in rice production are sometimes un-bankable which calls for the microfinance services to bridge the gap created by long absence of commercial banks. To this effect; the study was on the effect of microfinance services on smallholder rice productivity in Anambra State, Nigeria. The study had three specific objectives which identified the microfinance services smallholder farmers receive to improve their rice productivity, ascertained the effect of microfinance services on smallholder rice productivity, and examined the constraints to smallholder rice productivity in Anambra State, Nigeria. Data for the study were collected with a structured questionnaire from a cross-section of randomly selected 300 smallholder rice farmers. The data were analyzed with a combination of analytical tools such as descriptive statistics, Logit regression model, principal factor analysis (PFA), linear regression analysis, and inferential statistics such as t-test. The researcher found that in order of ranking, the services that the smallholders’ rice farmers received in the study area to improve their productivity are micro-savings (60.3%), remittance service (54.0%) among other services. These microfinance services significantly influenced rice productivity at a 1% level of probability. The socioeconomic determinants to microfinance services received by the smallholders’ farmers are: age, marital status, education, household size, and farm size. Lastly, the study equally, rotated the constraints to rice production into three factors which is named as management, institutional, and location factors; at the management factor; there is a need to keep a close watch over poor access to information (0.777), high cost of machines (0.745), and inadequate access to finance for expansion (0.707) among other constraints. At the institutional factor; eagle eye should be kept on cattle menace (0.755), and high cost of input (0.705). While at the location side; one should be mindful of high cost of water management (0.784), and transportation issue (0.733). The researcher therefore recommend that information on how to access microfinance service and the best way to produce and sell rice should be made available to the public domain, government should invest in setting up a good information management system to help popularize the services of microfinance banks in the rural areas.},
 year = {2022}
}

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TY  - JOUR
T1  - Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria
AU  - Okoroji Nma Okechukwu
AU  - Nalwoga Mukokoma Maurice
AU  - Bwanika Godfrey
Y1  - 2022/06/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ijfbr.20220803.11
DO  - 10.11648/j.ijfbr.20220803.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 84
EP  - 94
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20220803.11
AB  - The agricultural sector provides food and raw materials for human use, this sub-sector in Nigeria is dominated by smallholder farmers who are often time limited by finance. An important crop in this sector is rice which have gain acceptance among the populace. Most farmers in rural areas engaged in rice production are sometimes un-bankable which calls for the microfinance services to bridge the gap created by long absence of commercial banks. To this effect; the study was on the effect of microfinance services on smallholder rice productivity in Anambra State, Nigeria. The study had three specific objectives which identified the microfinance services smallholder farmers receive to improve their rice productivity, ascertained the effect of microfinance services on smallholder rice productivity, and examined the constraints to smallholder rice productivity in Anambra State, Nigeria. Data for the study were collected with a structured questionnaire from a cross-section of randomly selected 300 smallholder rice farmers. The data were analyzed with a combination of analytical tools such as descriptive statistics, Logit regression model, principal factor analysis (PFA), linear regression analysis, and inferential statistics such as t-test. The researcher found that in order of ranking, the services that the smallholders’ rice farmers received in the study area to improve their productivity are micro-savings (60.3%), remittance service (54.0%) among other services. These microfinance services significantly influenced rice productivity at a 1% level of probability. The socioeconomic determinants to microfinance services received by the smallholders’ farmers are: age, marital status, education, household size, and farm size. Lastly, the study equally, rotated the constraints to rice production into three factors which is named as management, institutional, and location factors; at the management factor; there is a need to keep a close watch over poor access to information (0.777), high cost of machines (0.745), and inadequate access to finance for expansion (0.707) among other constraints. At the institutional factor; eagle eye should be kept on cattle menace (0.755), and high cost of input (0.705). While at the location side; one should be mindful of high cost of water management (0.784), and transportation issue (0.733). The researcher therefore recommend that information on how to access microfinance service and the best way to produce and sell rice should be made available to the public domain, government should invest in setting up a good information management system to help popularize the services of microfinance banks in the rural areas.
VL  - 8
IS  - 3
ER  -

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Author Information

Okoroji Nma Okechukwu

Department of Business Administration, Uganda Martyrs University, Nkozi, Uganda
Nalwoga Mukokoma Maurice

Department of Business Administration, Uganda Martyrs University, Nkozi, Uganda
Bwanika Godfrey

Department of Business Administration, Uganda Martyrs University, Nkozi, Uganda

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APA Style

Okoroji Nma Okechukwu, Nalwoga Mukokoma Maurice, Bwanika Godfrey. (2022). Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria. International Journal of Finance and Banking Research, 8(3), 84-94. https://doi.org/10.11648/j.ijfbr.20220803.11

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ACS Style

Okoroji Nma Okechukwu; Nalwoga Mukokoma Maurice; Bwanika Godfrey. Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria. Int. J. Finance Bank. Res. 2022, 8(3), 84-94. doi: 10.11648/j.ijfbr.20220803.11

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AMA Style

Okoroji Nma Okechukwu, Nalwoga Mukokoma Maurice, Bwanika Godfrey. Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria. Int J Finance Bank Res. 2022;8(3):84-94. doi: 10.11648/j.ijfbr.20220803.11

Copy | Download

@article{10.11648/j.ijfbr.20220803.11,
  author = {Okoroji Nma Okechukwu and Nalwoga Mukokoma Maurice and Bwanika Godfrey},
  title = {Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {8},
  number = {3},
  pages = {84-94},
  doi = {10.11648/j.ijfbr.20220803.11},
  url = {https://doi.org/10.11648/j.ijfbr.20220803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20220803.11},
  abstract = {The agricultural sector provides food and raw materials for human use, this sub-sector in Nigeria is dominated by smallholder farmers who are often time limited by finance. An important crop in this sector is rice which have gain acceptance among the populace. Most farmers in rural areas engaged in rice production are sometimes un-bankable which calls for the microfinance services to bridge the gap created by long absence of commercial banks. To this effect; the study was on the effect of microfinance services on smallholder rice productivity in Anambra State, Nigeria. The study had three specific objectives which identified the microfinance services smallholder farmers receive to improve their rice productivity, ascertained the effect of microfinance services on smallholder rice productivity, and examined the constraints to smallholder rice productivity in Anambra State, Nigeria. Data for the study were collected with a structured questionnaire from a cross-section of randomly selected 300 smallholder rice farmers. The data were analyzed with a combination of analytical tools such as descriptive statistics, Logit regression model, principal factor analysis (PFA), linear regression analysis, and inferential statistics such as t-test. The researcher found that in order of ranking, the services that the smallholders’ rice farmers received in the study area to improve their productivity are micro-savings (60.3%), remittance service (54.0%) among other services. These microfinance services significantly influenced rice productivity at a 1% level of probability. The socioeconomic determinants to microfinance services received by the smallholders’ farmers are: age, marital status, education, household size, and farm size. Lastly, the study equally, rotated the constraints to rice production into three factors which is named as management, institutional, and location factors; at the management factor; there is a need to keep a close watch over poor access to information (0.777), high cost of machines (0.745), and inadequate access to finance for expansion (0.707) among other constraints. At the institutional factor; eagle eye should be kept on cattle menace (0.755), and high cost of input (0.705). While at the location side; one should be mindful of high cost of water management (0.784), and transportation issue (0.733). The researcher therefore recommend that information on how to access microfinance service and the best way to produce and sell rice should be made available to the public domain, government should invest in setting up a good information management system to help popularize the services of microfinance banks in the rural areas.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Microfinance Services and Agricultural Production: A Case of Smallholders’ Rice Farmers in Anambra State, Nigeria
AU  - Okoroji Nma Okechukwu
AU  - Nalwoga Mukokoma Maurice
AU  - Bwanika Godfrey
Y1  - 2022/06/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ijfbr.20220803.11
DO  - 10.11648/j.ijfbr.20220803.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 84
EP  - 94
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20220803.11
AB  - The agricultural sector provides food and raw materials for human use, this sub-sector in Nigeria is dominated by smallholder farmers who are often time limited by finance. An important crop in this sector is rice which have gain acceptance among the populace. Most farmers in rural areas engaged in rice production are sometimes un-bankable which calls for the microfinance services to bridge the gap created by long absence of commercial banks. To this effect; the study was on the effect of microfinance services on smallholder rice productivity in Anambra State, Nigeria. The study had three specific objectives which identified the microfinance services smallholder farmers receive to improve their rice productivity, ascertained the effect of microfinance services on smallholder rice productivity, and examined the constraints to smallholder rice productivity in Anambra State, Nigeria. Data for the study were collected with a structured questionnaire from a cross-section of randomly selected 300 smallholder rice farmers. The data were analyzed with a combination of analytical tools such as descriptive statistics, Logit regression model, principal factor analysis (PFA), linear regression analysis, and inferential statistics such as t-test. The researcher found that in order of ranking, the services that the smallholders’ rice farmers received in the study area to improve their productivity are micro-savings (60.3%), remittance service (54.0%) among other services. These microfinance services significantly influenced rice productivity at a 1% level of probability. The socioeconomic determinants to microfinance services received by the smallholders’ farmers are: age, marital status, education, household size, and farm size. Lastly, the study equally, rotated the constraints to rice production into three factors which is named as management, institutional, and location factors; at the management factor; there is a need to keep a close watch over poor access to information (0.777), high cost of machines (0.745), and inadequate access to finance for expansion (0.707) among other constraints. At the institutional factor; eagle eye should be kept on cattle menace (0.755), and high cost of input (0.705). While at the location side; one should be mindful of high cost of water management (0.784), and transportation issue (0.733). The researcher therefore recommend that information on how to access microfinance service and the best way to produce and sell rice should be made available to the public domain, government should invest in setting up a good information management system to help popularize the services of microfinance banks in the rural areas.
VL  - 8
IS  - 3
ER  -

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