The study examined agricultural loan utilisation among borrowers of Bank of Agriculture in
Tafawa Balewa Local Government Area, Bauchi State. It had the objective analyzing
agricultural loan utilisation among borrowers. Data were collected from 48 randomly selected
respondents through the instrument of questionnaire and analyzed using descriptive statistics
(frequencies, ratio, percentages, and statistical means), T-test, regression and correlation
analyses. The results showed that beneficiaries had a 0.6:1 ratio of loan receipt to credit
applied for having received an average loan amount of N107, 250, being 60.4% of the loan
application. It was found out that crop production beneficiaries utilised the loan on fertiliser,
labour, farm assets, storage bags, agrochemicals and seed/seedlings, while animal production
beneficiaries used the loan for stocking, feed, labour, drugs and livestock equipment.
Regression result on the factors affecting loan utilisation showed that educational level,
farming experience, and number of supervisions were statistically significant (P<0.05), while
timely loan receipt and interest rate were significant at (P<0.01). Correlation between number
of supervision visits and the loan amount put to agricultural use was statistically significant
(P<0.05). It was concluded that farmers made the best use of the amount of loan acquired.
However, the loan volume granted to farmers was inadequate. It was therefore recommended
that while more should be given in terms of loan volume to farmers, it should be followed by
intense supervision as it was found to correlate positively with loan utilisation.
Abdurrahman, S., Nasiru, M., Iliyasu, A. G., Ja,afar-Furo, M. R. and Baidu, M. (2015). Economics of Acha Production in Bauchi State, Nigeria. Research Journal of Agriculture, 2:12.
Danso-Abbeam, G., Cobbina, M. T. and Antwi, R. A. (2016). Agricultural credit utilisation among farmers in Bole District of Northern Region, Ghana. Russian Journal of Agricultural and Socio-Economic Sciences 52(3): 70-80
Isitor, S. U., Babalola, D. A. and Obaniyi, K. S. (2014). An analysis of credit utilization and farm income of arable crop farmers in Kwara State, Nigeria. Global Journal of Science Frontier Research: D Agriculture and Veterinary, 14(10): 27-33.
John R., Kumar D., Ratnam S. (2017). Pattern of utilisation of agricultural credits among KCC credit holding farmers of Allahabad District UP 1. International Journal of Academic Research and Development. 2(3) 21-23
Mailumo, S. S., Yusuf, S.T. and Mbah, J. J. (2007). Farmers perception of the environmental effects of organic material application in selected rural farming communities in Bauchi State. Haruna, U.; Jibrin, S.A.; Mancha, Y.P.; Nasiru, M. (ed). Proceedings of the 9th Annual Conference of the National Association of Agricultural Economists (NAAE). Held at Abubakar Tafawa Balewa University (ATBU), Bauchi. pp 427-432
NPC. (2006). National Population Communication. Abuja, Nigeria.
Oboh, V. U. and Ekpebu, I. D. (2011). Determinants of formal agricultural credit allocation to the farm sector by arable crop farmers in Benue State, Nigeria. African journal of Agricultural Research, 6(1): 181-185.
Oboh, V.U., Sani, R.M. and Ochi J.E. (2007). Availability and utilisation of formal agricultural credit by arable crop farmers in Benue State, Nigeria. Haruna, U.; Jibrin, S.A.; Mancha, Y.P.; Nasiru, M. (ed). Proceedings of the 9th Annual Conference of the National Association of Agricultural Economists (NAAE). Held at Abubakar Tafawa Balewa University (ATBU), Bauchi. pp 75-83
Okoronkwo, U. L., Joseph, E., Collins, M. A. and Epbari, N. M. (2014). Access and utilization of micro-lending scheme among rural farmers in cross river state: potentials for sustainable agricultural development in Nigeria. Humanities and Social Sciences Letters, 2(2): 72-80.
Philip, T.K., and Isaac N. I. (2012). Demographic characteristics, agricultural and technological profile of acha Farmers in Nigeria. Agricultural Engineering International: CIGR Journal 14(1): Manuscript No.1933.