The Role of Microfinance Bank Credit on Agricultural Output for a Sustainable Growth and Development in Nigeria
The importance of Agricultural output ranges from production for local consumption to that of export for foreign exchange reserve. This study investigated the role of microfinance bank credit on Agricultural out put in South East Nigeria. Questionnaire was used to collect data from respondents; farmers and microfinance bank staff in the South East zone of Nigeria. The options were scaled with a Likert scale Rating Model with a 2.5 bench mark. Result showed that an increase in microfinance bank credit to farmers increased agricultural out put, with a mean score of 3.5 which is quite high as compared to 2.5 bench mark. Further findings showed that microfinance bank credit had no significant impact on agricultural out put in Nigeria, hence escalation of hunger and high prices of agricultural products. Other findings showed that interest rate charged for microfinance bank loan was high hence the inadequate agricultural financing of farmers. Among the recommendations were reducing the interest rate to encourage farmers to borrow from microfinance banks, as well as the federal government incentive through microfinance bank to encourage farmers, so as to increase efficiency and effectiveness of farmers and to attract more youths to the agricultural sector for increase in economic growth and development in Nigeria.
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