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Original scientific paper

ANALYSIS OF FACTORS INFLUENCING LOAN DEFAULT AMONG POULTRY FARMERS IN OGUN STATE NIGERIA

O.A. Oni
O.I. Oladele
I. K. Oyewole


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Abstract

This study is interested in determining factors infl uencing default in loan repayment among poultry farmers in Ijebu Ode Local Government Area of Ogun State. A total of 100 poultry farmers were randomly sampled from the study area. Probit model was employed to determine and analyse the factors infl uencing default in loan repayment in the study area. Descriptive statistics were also employed to describe the socio-economic characteristics of the farmers. Finding revealed that majority of the farmers in the study area are educated. About 55.0 percent of the farmers source
their credit from formal fi nancial institutions. Result from the probit model revealed that fl ock size of the farmers signifi cantly infl uence default in loan repayment at (P<0.10) level. Age of the farmers signifi cantly infl uence default in loan repayment at (P<0.01) level, while Educational level and Income of the farmers also signifi cantly infl uence default in loan repayment at (P<0.05) level.

Keywords

loan; loan default; poultry farmers; Nigeria; agricultural credit; probit analysis

Hrčak ID:

17331

URI

https://hrcak.srce.hr/17331

Publication date:

1.5.2006.

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