Indexing
All Issues
Submission
Author Guidelines
Reviewers
Editorial Members
Publication Fee
Vol.4 , No. 4, Publication Date: Jul. 5, 2017, Page: 64-68
| [1] | Okpachu Steve Adogwu, Department of Agricultural Education, School of Vocational Education, Federal College of Education (Technical), Potiskum, Nigeria. |
| [2] | Madu Victor Uzoma, Department of Agricultural Education, School of Vocational Education, Federal College of Education (Technical), Potiskum, Nigeria. |
| [3] | Okpachu Godwin Oche, Department of Agricultural Education, School of Vocational Education, International Institute for Tropical Agriculture (IITA), Ibadan, Nigeria. |
The rural farmers who constitute a large percentage of food producers in Yobe state have problem of access to financial resources from the formal financial institutions because of the institutions’ stringent conditions and location. In effect, most of the rural farmers have to rely mainly on the informal financial institutions for funding. This problem of inadequate finance has made them to produce at subsistence level. Therefore this study investigated the Impact of Informal Financial Institutions on Agricultural Production in Yobe State, Nigeria. The source of data for this study was mainly primary that was collected using structured questionnaire from sampled farmers who were participating in three informal financing schemes namely periodic savings; money lending; and rotating savings. 200 rural farmers were selected using purposive random sampling. Data was analysed using inferential and descriptive statistics like regression analysis and frequencies/percentages respectively. The findings indicated that the periodic savings and rotating savings had positive impact on agricultural production through while money lending had negative impact. Based on the results, the study recommended the urgent mobilization of fund int the study area and partnership with micro finance institution.
Keywords
Informal Financial Institutions, Namely Periodic Savings, Money Lending, And Rotating Savings
Reference
| [01] | CBN (2010). Annual Report and Statement of Account: Central Bank of Nigeria, Abuja. |
| [02] | Gulong, P. N. (2012) The Role of Informal Financial Institutions on Socio-economic Development of Mangu Local Governemnt Area, Plataeu, Nigeria: Unpublished B. Sc project, Department of Sociology, University of Mkar, Benue State, Nigeria. |
| [03] | Iganiga, B. O. and Asemota, A. (2008), The Nigerian Unorganized Rural Financial Institutions and Operations: A Framework for Improved Rural Credit Schemes in a Fragile Environment. Journal of Social Sciences, 17(1): 63-71. |
| [04] | Henri-Ukoha, A, et al (2011), Determinants of Loan Acquisition from the Financial Institutions by Small-Scale Farmers in Ohafia Agricultural Zone of Abia State, South East, Nigeria, Journal of Development and Agricultural Economics Vol. 3(2), pp. 69-74. |
| [05] | Oleka, C and Eyisi, N (2014). The Effect of Informal Financial Institutions on Poverty Alleviation in Nigeria. Journal of Economics and Sustainable Development.. Vol. 5, No.6, |
| [06] | Adam, G. (2007), “Role of Microfinance Institutions in Actualization of MDGs”. Paper delivered at the induction ceremony of Institute of Chartered Economists of Nigeria (ICEN) in Port Harcourt |
| [07] | Aryeetey E., and Udry C., (1995), The Characteristics of Informal Financial Markets in Africa, Paper Presented at the Plenary Session of the Bi-Annual Research Conference of the African Economic Research Consortium, Nairobi, Kenya, December 1994. |
| [08] | Mehrteab, H. T. (2005), Adverse Selection and Moral Hazard in Group- Based Lending: Evidence from Eritrea. Unpublished PhD Thesis, Faculty of Economics, University of Groningen, The Netherlands. |
| [09] | Rweyemamu, D. C., Kimaro, M. P. and Urassa, O. M. (2003), Assessing Micro-Finance Services in Agricultural Sector Development. A Case Study of Semi-formal Financial Institutions in Tanzania. Economic and Social Research Foundation. pp.1-46 |
| [10] | Lawal, W. A. and I. B. Abdullahi, I. B(2011) Impact of informal Agricultural financing on agricultural production in the rural economy of Kwara State, Nigeria. International Journal of Business and Social Science Vol. 2 No. 19 [Special Issue - October 2011] 241 |
| [11] | Adeoye, P. B. (2005), Informal Financial Sector and Poverty Alleviation. Proceedings of the National Conference on Informal Financial Sector and Sustainable Development in Nigeria. Department of Banking and Finance, University of Ado-Ekiti, Ado-Ekiti, Ekiti. State, Nigeria, pp. 93-96. |
