Determinants of Access to the Central Bank of Nigeria (Cbn) Commercial Agriculture Credit Scheme by Agro-Enterprises in Nasarawa State, Nigeria

This study which was carried out in Nasarawa State of Nigeria was designed to obtain a first hand assessment of the performance of the Commercial Agriculture Credit Scheme of the CBN in the state. Sixty agro-enterprises that have received credit from the scheme formed the sample size for the study. Data on the operations of the sixty agro-enterprises as well as their socio-economic characteristics were obtained by use of structured questionnaires and interview schedules. Multiple regression analysis and Likert scale rating were used for data analysis. Results obtained showed that most of the agro-enterprises were young, probably registered to take advantage of the scheme. Owners of the enterprises were also young, fairly well educated and were mostly males. Constraints identified included stringent conditions for access like required asset base, acquisition of an insurance cover and high cost of the facility inspite of a single digit interest rate. It was recommended that the CBN revisits some of the credit guidelines to ensure a wider access to the services of the scheme in the state. Keywords: Access, Commercial Agriculture, Credit Scheme, Agro-enterprise

Determinants of Access to the Central Bank of Nigeria (Cbn) Commercial Agriculture Credit Scheme by Agro-Enterprises in Nasarawa State, Nigeria

This study which was carried out in Nasarawa State of Nigeria was designed to obtain a first hand assessment of the performance of the Commercial Agriculture Credit Scheme of the CBN in the state. Sixty agro-enterprises that have received credit from the scheme formed the sample size for the study. Data on the operations of the sixty agro-enterprises as well as their socio-economic characteristics were obtained by use of structured questionnaires and interview schedules. Multiple regression analysis and Likert scale rating were used for data analysis. Results obtained showed that most of the agro-enterprises were young, probably registered to take advantage of the scheme. Owners of the enterprises were also young, fairly well educated and were mostly males. Constraints identified included stringent conditions for access like required asset base, acquisition of an insurance cover and high cost of the facility inspite of a single digit interest rate. It was recommended that the CBN revisits some of the credit guidelines to ensure a wider access to the services of the scheme in the state. Keywords: Access, Commercial Agriculture, Credit Scheme, Agro-enterprise