Determinants of Loan Repayment among Beneficiaries of Government Guaranteed Agricultural Loan Scheme (GGALS) in Osun State, Nigeria 1* 2 3

• D.A. Adegbite

  Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

  Author

• S. Momoh

  Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

  Author

• R.A. Oyeyinka

  Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

  Author

• R.A. Abolude

  Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

  Author

Agricultural loan plays a vital role in economic transformation and rural development. This role will be impossible without a virile and active loan scheme characterized by good practices in terms of disbursement and repayment. This study determines the factors affecting loan repayment among beneficiaries of Government Guaranteed Agricultural Loan Scheme (GGALS) in Osun State, Nigeria. The study was based on data from primary and secondary sources. Primary data were obtained from 180 GGALS beneficiaries selected using a multi-stage sampling technique as well as the records of Osun State Agricultural Development Corporation. Data were analyzed using descriptive statistics, test of difference of means and Tobit regression model. Descriptive statistics revealed that most (86.9%) of the beneficiaries were married, 70.8% were male and 89.3% were literate with a mean age of 46 years, an average of 14 years farming experience and a mean household size of approximately 6 persons. The Tobit model showed that farming experience (p<0.05), poultry enterprise (p<0.01), fishery enterprise (p<0.01), piggery enterprise (p<0.01) and borrowing frequency (p<0.01) were significant factors that positively influenced loan repayment while household size (p<0.01), disbursement lag (p<0.01) and non-farm expenses (p<0.05)) negatively affected loan repayment. Therefore, the study recommended among others that, the lending institution should design a better lending strategy focusing particularly on prompt loan disbursement so as to further improve loan repayment performance.

1. D.A. Adegbite, Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

   Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

2. S. Momoh, Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

   Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

3. R.A. Oyeyinka, Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

   Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

4. R.A. Abolude, Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

   Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria. Department of Agricultural Administration, Federal University of Agriculture, Abeokuta, P.M.B 2240, Abeokuta, Ogun State Nigeria

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