Impact of Rural Credit on Arable Crop Production in Aliero Local Government Area of Kebbi State

Abstract

This study investigated the impact of rural credit markets on arable crop production in selected villages within Aliero Local Government Area (LGA) of Kebbi State, Nigeria. Specifically, it examined the socio-economic characteristics of credit market participants, analyzed the credit demand functions of rural borrowers, assessed the determinants of loan repayment, and evaluated the influence of credit utilization on input use in arable crop farming. A multistage random sampling technique was employed to choose120 respondents from six villages. Both primary and secondary data were collected through structured questionnaires and oral interviews. Data analysis involved the use of descriptive statistics (frequencies, percentages, and means) and linear regression analysis. The findings revealed that all respondents were male and married (100%), suggesting a gender imbalance in access to rural credit. Regression results indicated that educational attainment (70.6%), farming experience (7.8%), and interest rate (50.2%) significantly influenced the volume of credit demanded. Key challenges identified in rural credit operations included low literacy levels, limited access to formal credit sources, and poor organizational structures. The study concludes that while rural credit plays a significant role in enhancing input use and productivity in arable crop farming, access remains constrained—especially for women. It is therefore recommended that targeted policies be implemented to encourage female participation and improve rural financial inclusion.