Constraints to Accessing Micro-Credit and Loan Scheme of Bank of Agriculture among Farmers in Enugu State, Nigeria: Implications for Extension Service Delivery

The study examined constraints to accessing micro-credit/loan scheme of Bank of Agriculture (BOA) among farmers in Enugu State, Nigeria: Implications for extension service delivery. Purposive and simple random sampling techniques were used in selecting one hundred (100) respondents for the study. Data were collected using structured interview schedule/questionnaire and analyzed using frequency, percentage, mean scores and standard deviation. The study revealed that micro-credit/ loan scheme (88.6%) were the most patronized among the rural farmers. Others such as ECOWAS, IFAD project and ATHP programme were not patronized at all, probably because the type of projects sponsored by these credit/loan scheme are not important to the respondents. The respondents (farmers) were highly constrained by late release of funds (M= 1.27), grace period too short (M= 1. 17), excessive bureaucracy (M= 1. 14), too short payback period (M= 1. 13), services not regular (M= 1. 13), among others. The Bank of Agriculture staff also noted that they were constrained by late release of approved funds by head quarters of the Bank of Agriculture (M= 1.43), loan diversion (M= 1.27), poor funding of field officers (M= 1.20), lack of awareness by borrowers (M= 1.10) and insufficient staff (M= 0.93). The study recommends that adequate awareness campaign on the availability of micro-credit/loan scheme by Bank of Agriculture should be created in order for the beneficiaries to be knowledgeable about it. It highlights the need for approval of more funds under the scheme and timely release of funds when needed especially during planting season in order to enable the farmers to make judicious use of it for optimum productivity.