Page Length: 75

Size: 3459 KB

Format: PDF & Word



The Agricultural sector in Nigeria has remained one of the largest contributors to the gross domestic product of the nation’s economy contributing an average of 39% of GDP. Since the beginning of the millennium, over 80% of the country’s population living in the rural areas is directly or indirectly dependent on agriculture for livelihood. “NBS 2005” Livestock sector plays a crucial role in rural economy and livelihood, and access to credit has both direct and indirect effects on farm production. This has examined the factors affecting farmers’ participation in credit market and howsocio-economic dimensions of poultry farmers their suitability to access credit. Variables for this study included household, collateral, level of education, years of experience and farm size against credit supply.


Descriptive and inferential methods were used to analyse the data collected from one hundred (100) poultry farmers within Odeda Local government of Ogun state Nigeria. Instrument use for data collection was poultry farmers’ access to credit questionnaire (PFACQ).


The result shows that Household size and collateral have a significant impact on access to credit from formal and informal financial institution (t-statistics ≥ 1.64 in absolute value terms) while level of education; years of experience and farm size are not statistically significant on credit supply since t-statistics ≤ 1.64.


The study concluded that credit supply was not dependent on the years of experience, level of education or farm size of poultry farmers but to a certain level, dependent on the Household and the collateral of these farmers. Therefore it is recommended that the government should make loans available to poultry farmers in Nigeria irrespective of their exposure in knowledge, in the business or the available facilities for the poultry farming.


Keywords:     Poultry farming, Credit supply, level of education, years of experience, collateral

Word Count: 290





Content                                                                                                                                    Page

Title Page                                                                                                                    i

Certification                ii

Dedication                  iii

Acknowledgements                iv

Abstract                                                                                                                      v

Table of Contents                                                                                                       vi

List ofTables                                                   viii

List of Figures                                                                                                             ix



1.1       Background to the Study                                                                               1

1.2       Statement of the Problem                                                                               3

1.3       Objective of the Study                                                                                   3

1.4       Research Questions                                                                                         4

1.5       Hypotheses                                                                                                     4

1.6       Significance of the Study                                                                               4

1.7       Scope of the Study                                                                                         5

1.8       Justification for the Study                                                                              5

1.9       Operational Definition of Terms                                                                     5



2.1       Conceptual Review                                                                                         7

2.2       Concepts of Credits                                                                                        11

2.3       Concepts of poultry farming                                                                           12

2.4       Theoretical Framework                                                                                   20

2.5       Empirical Findings                                                                                          26

2.6       Gap in Literature                                                                                             29





Content                                                                                                           Page


3.1       Research Design                                                                                             30

3.2       Population                                                                                                       30

3.3       Sample size and sampling Technique                                                              30

3.4       Instrument                                                                                                       31

3.4.1    Validity of Instrument                                                                                    31

3.4.2    Reliability of Instrument                                                                                 31

3.5       Method of Data Collection                                                                             32

3.6       Method of Data Analysis                                                                               32

3.7       Objectives                                                                                                       32

3.8       Limitations of Methodology                                                                           35

3.9       Ethical Consideration                                                                                     35



4.1       Descriptive Statistics for Variable Employed                                                 36

4.1.1    The Level of Education of the Poultry Farmers                                             36

4.1.2    Household Size                                                                                               37

4.1.3    Farm Size                                                                                                        38

4.1.4    Collateral of the Poultry Farmer                                                                     39

4.2       Discussion of Findings                                                                                   40

4.2.1    Test of Hypothesis One                                                                                  41

4.2.2    Test of Hypothesis Two                                                                                  42

4.2.3    Test of Hypothesis Three                                                                                42

4.2.4    Test of Hypothesis Four                                                                                 42

4.2.5    Test of Hypothesis Five                                                                                  43




  • Summary                                                                                                 44
    • Summary of Findings 44
  • Conclusion 45


Content                                                                                                                    Page

5.3       Recommendations                                                                                          46

5.3.1    Policy Implication                                                                                           46

5.4       Contribution to Knowledge                                                                            47

  • Limitation of the Study                                                                                  47

5.6       Suggestion for Further Research                                                                   47

REFERENCES                                                                                                    48





Table                                                                                                               Page3.7.1        Discussionof Variables                                                                                 33
4 1.1    Educational Attainment of the Poultry Farmers                                             36
4.1.2    Household Size                                                                                               37

4.1.3    Farm size                                                                                                         38

4.1.4    Collateral of the Poultry Farmer                                                                                   39

4.2: Impact of the dependent variables on access to credit                                        41




Figure                                                                                                              Page

1Educational Attainment                                                                                            37

2 Household size of the Poultry Farmers                                                                    38

3 Average Number of Birds                                                                                       39

4 Asset of Poultry Farmers                                                                                         40






























1.1       Background to the Study

The Agricultural sector in Nigeria has remained one of the largest contributors to the Gross Domestic Product of the nation’s economy. For the past two decades it has contributed an average of 39% of the country’s GDP. Over 80% of the country’s population living in the rural areas is directly or indirectly dependent on agriculture for its livelihood (NBS, 2005). Livestock sector plays a crucial role in rural economy and livelihood. This is one sector where the poor contributes to the growth directly instead of getting benefit from growth generated elsewhere. In Nigeria, the livestock sector forms an important livelihood activity for most of the farmers, supporting agriculture in the form of critical inputs, contributing to the health and nutrition of the household, supplementing incomes, offering employment opportunities, and serving as a store of wealth in times of need. It acts as a supplementary and complimentary enterprise. Livestock is also important as a part of agriculture diversification and income enhancement. Livestock plays a vital role in the overall economic development of the farm households and nation as a whole.


The prolificacy of livestock which include; goat, pig and poultry are the influencing factors for rearing them. The returns are quick; losses, if any, are recovered soon and the poor can afford them. The multiple species-animal husbandry system is also environmental friendly. Income from livestock production contributes a significant percentage of the total income of rural farm households engaged in agricultural production (Johnson, Perry and Morehart. (1995).  Among livestock – based vocations, poultry occupies a pivotal position because of its enormous potential to bring about rapid economic growth. The importance of the poultry sub-sector is chiefly in the provision of meat and egg as well as the provision of employment either directly or indirectly and the contribution to the revenue (Gross Domestic Product) of the country. The poultry sub-sector of the economy in Nigeria remains chiefly primitive. This is because government, at all levels, has neglected it for a long time. The poultry industry in Nigeria has the highest number of poultry farm in Africa.  Currently, Nigeria has about 10% of the population, and is responsible for less than 15 to 18% employment opportunities, due to the fact that the industry is mainly subsistent.( Afolami (2011), in comparison with other livestock products (e.g. beef, mutton, pork), poultry is considered to be more palatable, having lower level of cholesterol and high protein value (Adegbola, 2000) Egg, a product of the industry, gives about 3.5 g of the total 7.2 g animal protein requires for individual dietary need per day. For developing countries, poultry contributes just about 15% of total animal protein intake, with approximately 1.3 kg of poultry products consumed per head per annum (NLDC, 2000).


The World Health Organization (WHO) and Food and Agriculture Organization (FAO) recommended 3.6 kg per capita intake of poultry products per annum. Therefore to meet the basic minimum of the dietary needs of Nigerians, the country requires an annual production of 10 to 20 billion eggs and 0.3 to 0.6 million tone of poultry meat (NLDC, 2000).  In Nigeria, production of food has not increased at the rate that can meet the increasing population. While food production increases at the 2.5%, food demand increases at 3.5% due to high rate of population growth of 2.83% (CBN, 2004). The apparent disparity between the rate of food production and demand for food in Nigeria has led to increasing resort to food importation and high rates of increase in food prices. The demand and supply gap for animal protein intake is so high.


The Food and Agricultural Organization recommends that the minimum intake of protein by an average person should be 65gm per day; of this, 36gm (i.e. 40%) should come from animal sources. Nigeria is presently unable to meet this requirement. The animal protein consumption in Nigeria is less than 8gm per person per day, which is a far – fetched from the Food and Agricultural Organization minimum recommendation (Niang & Jubrin, 2001). Poultry food plays a useful role in bridging the protein gap in Nigeria. It is palatable and generally acceptable. This acceptability cuts across nearly all cultural and religious boundaries in the country. The importance of poultry to the national economy cannot be overemphasized, as it has become popular industry for the small holders that have great contribution to the economy of the country. The enterprise has assumed greater importance in improving the employment opportunity and animal protein production in Nigeria. To this end, an up-to-date knowledge of the profitability and efficiency of resource utilization in the industry will go a long way in bridging some knowledge gap and help in formulating policies aimed at ensuring increased and more profitable poultry production in the country.


1.2       Statement of the Problem

The provision of credit has increasingly been regarded as an important tool for raising the incomes of rural population, mainly by mobilizing resources to more productive uses (Atieno, 2001). Access to sufficient credit is certainly a requisite to viable production outfits, especially as the industries are some of the way out of industrial backwardness, unemployment and mass poverty.

Inadequate credit affects the purchasing power of producers to procure farm implement, and make farm related investments, which they can fall back on to help augment incomes and alleviate poverty. Inadequate access to credit indirectly affects the risk behaviour of producers (Eswaran & Kotwal, 1990; Guirkinger & Boucher, 2005). It usually compels poultry farmers to invest in less risky and less productive technologies rather than in the more risky but productive ones (Dercon, 1996). Risk behaviour has negative effects on technical efficiency of the poultry farmers in that it limits the effort of the poultry farmers in attaining maximum possible output and, hence, efficiency is compromised.  It is possible that some of the famers in Odeda Local government areas operate below their full capacities. A lot of poultry farms are likely to have folded up as a result of this inadequate access to credit. It is possible that socio – economic dimension has influence on access to credit. This perceived problem of access to credit by poultry farmers in Odeda Local Government, area of Ogun State moved the curiosity of the researcher to investigate socio-economic dimension of the poultry farmer in relation to access to credit.


1.3       Objective of the Study

The main objective of the study is to determine how socio-economic factors affect credit supply to poultry farmers in Odeda local government of Ogun state. The specific objectives are to:

  • show how level of education affect credit supply to poultry farmers;
  • determine how years of experience influence credit supply to the poultry farmers;
  • analyse the relationship between household size and credit supply of the poultry farmers;
  • establish how farm size affect the supply of credit to poultry farmers and
  • show the extent of the relationship between collateral security and credit supply to poultry farmers


1.4        Research Questions

  1. How does level of education affect credit supply to the poultry farmers?
  2. How do years of experience influence the supply of credit to the poultry farmers?
  3. What is the relationship between the household size and suitability of the poultry farmers to access credit?
  4. How does the size of farm affect the supply of credit to poultry farmers?
  5. To what extent does collateral security affect credit supply to the poultry farmers?


  • Hypotheses

The null hypothesis is at level 10% significant

Ho1:     Level of education has no significant effect on credit supply

Ho2:     Credit supply is not significantly affected by years of experience

Ho3:       There is no significant relationship between household size and suitability of poultry farmers to access credit

Ho4:     There is no significant relationship between size of farm and credit supply to poultry farmers

Ho5:     Collaterals do not have significant relationship with credit supply to poultry farmers


1.6       Significance of the Study

The findings of the study expose some factors that might be responsible for poor production of poultry farming. The identified areas where government at different levels could come in to assist poultry farmers would be brought into focus in order to bridge the gap. This study might be of significant use to stakeholders such as farmers, investors, local government, policy makers, and nation at large.

To the Farmers, this study would be relevant to farmers who want to go into poultry business because it could provide the detailed information on economic importance of poultry farming. To the investors, the study would also throw more light on the performance and profitability of poultry business for investors that are interested in poultry business and for expansion of already existing ones. To local government, its gives education concerning farm size and population of farmers in the entire local government so as to attract credit facilities either from government or private individuals. To policy makers, the intricate of credits constraints and supply of credit by financial institutions would be reviled as this would be used to policy makers and national development planners to know where emphasis and logistic supports are needed. To the nation at large, government needs the information in order to know how to allocate budget for agricultural production in rural development.


  1.7     Scope of the Study

This study was designed to examine socio-economic factors that determine access to credits by poultry farmers in Odeda Local Government. It is expected to be used for further investigation on, either the efficiency or access to credit in poultry farms in Ogun State, Nigeria. The report emanating from the study is based on statistical data, reports, and literature information. This study has covered one hundred (100) poultry farms in Odeda Local Government Area of Abeokuta, Ogun State.

1.8       Justification for the Study

The study is significant as it aimed at investigating socio-economic dimension of the poultry farmers in relation to access to credit and providing suggestions on how the identified problems can be solved.


1.9       Operational Definition of Terms

Socio-economic Factors: These are factors that may affect the supply of credit to the poultry farmers.

Level of Education (LOE): The height of formal educational attainment of the poultry farmers.

Years of Experience (YOE): The period of time (in years) a poultry farmer has been in the poultry farming.

Size of Farm (SOF): This is the size of poultry farm measured in terms of number of eggs and chickens.

Household Size (HHS): The number of dependence of the poultry farmer from within and extended family.

Collateral: This is the assets that qualify the farmer for loan credit, and guarantee repayment default.

Credit Supply: Is the availability of facilities for future repayment with interest.

Financial Inclusion: This is the delivery of financial services to disadvantage and low-income segments of poultry farmers in the society.




DISCLAIMER: All project works, files and documents posted on this website, are the property/copyright of their respective owners. They are for research reference/guidance purposes only and some of the works may be crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a reference/citation/guidance purpose only and not copy the work word for word (verbatim). The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own study. is a repository of research works where works are uploaded for research guidance. Our aim of providing this work is to help you eradicate the stress of going from one school library to another in search of research materials. This is a legal service because all tertiary institutions permit their students to read previous works, projects, books, articles, journals or papers while developing their own works. This is where the need for literature review comes in. “What a good artist understands is that nothing comes from nowhere. The paid subscription on is a means by which the website is maintained to support Open Education. If you see your work posted here by any means, and you want it to be removed/credited, please contact us with the web address link to the work. We will reply to and honour every request. Please notice it may take up to 24 – 48 hours to process your request.

WeCreativez WhatsApp Support
Administrator (Online)
Hello and welcome. I am online and ready to help you via WhatsApp chat. Let me know if you need my assistance.