Determinants of Microfinance Institutions Microcredit Procurement among Rural Farm Households in Niger State, Nigeria.

Abstract

The study examined the factors that influenced microcredit program procurement of the microfinance institutions in Niger State. Data were collected using two sets of well structured questionnaires administered to both the microfinance institutions and the respondents respectively. Multi-stage sampling technique was used to sample the institutions and the respondents. Questionnaires were administered to 36 microfinance institutions and 144 respondents. Data were analyzed using descriptive statistics, multiple regression analysis and Likert Scale. The results show that the coefficient for level of education was negatively related to the amount of loan procured at 5% level of significance. Farmers years of experience as well as farm and non-farm incomes were positively related to the amount of loan procured by the maize farmers at 1% level of significance. Similarly, the years of farming experience, farm and non-farm incomes were significant determinants of maize farmers microcredit procurement processing, high interest rate and sundry charges, political interference among others. Suggested solutions include setting aside credit limits in order to make economic impact, reinforcement of made of operations of the institutions and designing of farmers specific credit regime program instead of the stencil-type that farmers are expected to bit into.