Email this article 
Hide
Show all
Original Research
Household access to agricultural credit and agricultural production in Nigeria: A propensity score matching model
Submitted: 09 July 2018 | Published: 27 January 2020
About the author(s)
Romanus Osabohien, Department of Economics and Development Studies, Covenant University, Ota, Nigeria; and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, NigeriaEze Osuagwu, Department of Economics and Development Studies, Covenant University, Ota, Nigeria
Evans Osabuohien, Department of Economics and Development Studies, Covenant University, Ota, Nigeria; and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria
Uche Eseosa Ekhator-Mobayode, Division of Management and Education, University of Pittsburgh, Bradford, United States
Oluwatoyin Matthew, Department of Economics and Development Studies, Covenant University, Ota, Nigeria
Obindah Gershon, Department of Economics and Development Studies, Covenant University, Ota, Nigeria; and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria
Abstract
Background: Agricultural production is low in Nigeria as a result of low utilisation of farm inputs facilitated by farmers’ inability to save and invest. Therefore, credit is needed by farmers to enhance their productive capacity and efficiency in agriculture.
Aim: Given the importance of credit to farmers, this study examined the nexus between households’ access to credit and agricultural production in Nigeria.
Setting: The study made use of data from the Living Standard Measurement Study-Integrated Survey on Agriculture (LSMS-ISA) consisting of 4210 households across the 36 states in Nigeria, as well as the Federal Capital Territory, Abuja.
Methods: The study employs the propensity score matching (PSM) technique.
Results: The main result from the study suggests that households who had access to agricultural credit facilities had yields that are thrice those of their counterparts who did not benefit from such facilities. In the event of a shock, the farmers who did not have a source of credit are often forced to adopt measures such as lowering consumption and selling assets, which in the long run worsen their poverty levels.
Conclusion: The study recommends that policymakers should address underlying factors that prevent access to credit for agricultural production, which is capable of raising the productive capacities of farmers.
Keywords
Metrics
Total abstract views: 5568Total article views: 9549
Crossref Citations
1. The Nexus Between Age Groups, Gender Dynamics of Smallholder Maize Farmers, and Poverty Status in Tanzania
Daudi Moses Msengi, Adam Akyoo
Global Social Welfare year: 2023
doi: 10.1007/s40609-023-00327-1
2. Impact of agricultural credit sources heterogeneity on rice production efficiency in Côte d'Ivoire
N'Banan Ouattara, Xueping Xiong, Abdelrahman Ali, Dessalegn Anshiso Sedebo, Trazié Bertrand Athanase Youan Bi, Zié Ballo
Journal of Agribusiness in Developing and Emerging Economies vol: 15 issue: 4 first page: 849 year: 2025
doi: 10.1108/JADEE-11-2021-0304
3. How does Salam financing affect farmers’ income? A system dynamics approach
Eka Nurhalimatus Sifa, Sudarso Kaderi Wiryono
Journal of Islamic Accounting and Business Research vol: 15 issue: 1 first page: 119 year: 2024
doi: 10.1108/JIABR-02-2022-0042
4. Effect of Credit Access, Utilization, and Repayment Patterns on Rural Women Agro-Entrepreneurship Performance in Katsina State, Nigeria
Ikwuakam, O. T., Musa, M. T.
International Journal of Entrepreneurship and Business Innovation vol: 8 issue: 3 first page: 21 year: 2025
doi: 10.52589/IJEBI-224X3CBV
5. Impact of agricultural credit disbursement on cereals yield in Odisha
Bamadev Mahapatra, Diptimayee Jena
International Social Science Journal vol: 73 issue: 248 first page: 373 year: 2023
doi: 10.1111/issj.12425
6. Agricultural credit and productivity of crops in India: field evidence from small and marginal farmers across social groups
Inder Sekhar Yadav, M. Sanatan Rao
Journal of Agribusiness in Developing and Emerging Economies vol: 14 issue: 3 first page: 435 year: 2024
doi: 10.1108/JADEE-05-2022-0092
7. Assessing the Nexus between Environmental Degradation, Agro-Climate Financing, and Economic Growth in Sub-Saharan Africa
Charles O. Manasseh, Chine Sp Logan, Ogochukwu C. Okanya, Ebelechukwu L. Okiche, Kenechukwu K. Ede, Jonathan E. Ogbuabor, Ebele C. Igwemeka, Sylvester Ilo, Odidi C. O. Onuselogu
Sustainability vol: 17 issue: 21 first page: 9862 year: 2025
doi: 10.3390/su17219862
8. Land use returns in organic and conventional farming systems: financial and beyond
Ana Paula Alf Lima Ferreira, Letícia de Oliveira, Edson Talamini
Organic Agriculture vol: 12 issue: 3 first page: 353 year: 2022
doi: 10.1007/s13165-022-00392-4
9. Large-scale Agricultural Investments and Female Employment in Nigerian Communities
O. O. Edafe, E. Osabuohien, R. Osabohien
IOP Conference Series: Earth and Environmental Science vol: 655 issue: 1 first page: 012082 year: 2021
doi: 10.1088/1755-1315/655/1/012082
10. Addressing Unemployment challenge through micro and small enterprises (MSEs): Evidence from Nigeria
Oluwatoyin Matthew, Daniel E. Ufua, Romanus Osabohien, Tomike Olawande, Oluwatosin D. Edafe
Problems and Perspectives in Management vol: 18 issue: 2 first page: 79 year: 2020
doi: 10.21511/ppm.18(2).2020.08
11. The efficacy of Agricultural Financing on Agricultural Production in Zimbabwe
Lucy Chamba, Ismael Tarirai
African Journal of Commercial Studies vol: 5 issue: 4 first page: 273 year: 2024
doi: 10.59413/ajocs/v5.i.4.9
12. Improving Farmers’ Pesticide Packaging Waste Recycling Behavior: Using Smartphones to Access the Internet
Xin Deng, Yating Zhan, Qian Qiao
SAGE Open vol: 15 issue: 3 year: 2025
doi: 10.1177/21582440251379162
13. Gender disparities in literacy: an analysis of regional and age-group variations in Somalia
Mukhtaar Axmed Cumar, Abdisalan Hassan Muse, Befekadu Zeleke Kidane, Jibril Abdikadir Ali
Discover Education vol: 4 issue: 1 year: 2025
doi: 10.1007/s44217-025-00563-x
14. Tarımsal Destek Politikası Olarak Kullandırılan Sübvansiyonlu Tarımsal Kredilerin Üreticilerin Geliri Üzerindeki Etkisi: Erzurum’da Bir Uygulama
Ayhan Korkulu, Yusuf Akan
Sosyoekonomi vol: 32 issue: 61 first page: 401 year: 2024
doi: 10.17233/sosyoekonomi.2024.03.18
15. Transforming South African Agriculture: The Role of Credit in Supporting Value Chain Sustainability
Nomonde Jonas, Mzuyanda Christian
Agriculture vol: 15 issue: 6 first page: 620 year: 2025
doi: 10.3390/agriculture15060620
16. Transmission effect of international grain prices on China’s grain prices
Chiming Qi, Chang Meng, Shuo Yan
Frontiers in Sustainable Food Systems vol: 9 year: 2025
doi: 10.3389/fsufs.2025.1483424
17. The Water, Food, and Energy Nexus: The Inclusive Roles of Governance and Finance in South Asia
Ali Furman, Anwar Khan, Syed Sumair Shah
Land Degradation & Development vol: 35 issue: 17 first page: 5367 year: 2024
doi: 10.1002/ldr.5302
18. Soil technology and post-harvest losses in Nigeria
Romanus Osabohien
Journal of Agribusiness in Developing and Emerging Economies vol: 14 issue: 3 first page: 570 year: 2024
doi: 10.1108/JADEE-08-2022-0181
19. Effects of Microfinance Credits on Farm Performance of Small-Scale Mango Farmers in Davao del Sur
Charnilyn Mae Girasol, Cherry Ann Roxas
Journal of Interdisciplinary Perspectives vol: 3 issue: 7 year: 2025
doi: 10.69569/jip.2025.379
20. Can credit promote rural transformation? Evidence from district-level data in Bangladesh
Subrata Saha, Mohammad Jahangir Alam, Al Amin Al Abbasi, Ismat Ara Begum, Maria Fay Rola-Rubzen, Panam Parikh, Andrew M. McKenzie
Humanities and Social Sciences Communications vol: 12 issue: 1 year: 2025
doi: 10.1057/s41599-025-04588-3
21. Male and Female Employment in Agriculture and Agricultural Productivity in Nigeria
Esther M. Folarin, Evans S. Osabuohien, Henry Okodua, Ademola Onabote, Romanus Osabohien
IOP Conference Series: Earth and Environmental Science vol: 665 issue: 1 first page: 012066 year: 2021
doi: 10.1088/1755-1315/665/1/012066
22. Agricultural credit constraints in smallholder farming in developing countries: Evidence from Nigeria
Bedru B. Balana, Motunrayo A. Oyeyemi
World Development Sustainability vol: 1 first page: 100012 year: 2022
doi: 10.1016/j.wds.2022.100012
23. Enabling Environment and Agriculture in ECOWAS: Implications for Food Security
Romanus Osabohien, Isaiah O. Olurinola, Oluwatoyin A. Matthew, Amechi Endurance Igharo
WSEAS TRANSACTIONS ON ENVIRONMENT AND DEVELOPMENT vol: 17 first page: 38 year: 2021
doi: 10.37394/232015.2021.17.4
24. Healthcare Delivery and Agricultural Sector Output: An Empirical Analysis from Nigeria
Ahmed Adekunle
International Journal of Applied Research in Business and Management vol: 6 issue: 2 year: 2025
doi: 10.51137/wrp.ijarbm.2025.aaht.45850
25. Youth Farmers, Shocks and Food Security in Nigeria
Romanus R. Osabohien, Isaiah O. Olurinola, Oluwatoyin A. Matthew, Oluwatosin D. Edafe
IOP Conference Series: Earth and Environmental Science vol: 665 issue: 1 first page: 012037 year: 2021
doi: 10.1088/1755-1315/665/1/012037
26. A comparative discourse of sustainable finance options for agribusiness transformation in Nigeria and Brunei: implications for entrepreneurship and enterprise development
Lukman Raimi, Rabiu Olowo, Morufu Shokunbi
World Journal of Science, Technology and Sustainable Development vol: 18 issue: 4 first page: 325 year: 2021
doi: 10.1108/WJSTSD-05-2021-0051
27. Prospects and problems of agricultural credit loan in Bangladesh: A case study of Rajshahi Krishi Unnayan Bank (RAKUB)
Md Shakib Ahamed, Md Nazmus Sadekin, Shapan Chandra Majumder, Md. Hasanur Rahman, Md. Mazadul Hoque
Journal of Public Value and Administrative Insight vol: 4 issue: 2 first page: 90 year: 2021
doi: 10.31580/jpvai.v4i2.1964
28. Access to credit and agricultural sector performance in Nigeria
Romanus Osabohien, Anita Mordi, Adeyemi Ogundipe
African Journal of Science, Technology, Innovation and Development vol: 14 issue: 1 first page: 247 year: 2022
doi: 10.1080/20421338.2020.1799537
29. Paddy Farmers' Perception and Indigenous Decision to Climate Change Risks: Insights from Bagerhat District of Bangladesh
Fatema Khatun, Md. Nasif Ahsan
Khulna University Studies first page: 202 year: 2024
doi: 10.53808/KUS.2024.21.02.1209-ss
30. Impact of technological advancement and greener energy on sustainable agriculture in Asia: Evidence from selected Asian countries
Gagan Deep Sharma, Muhammad Ibrahim Shah, Ritika Chopra, Amar Rao, Umer Shahzad
Sustainable Development vol: 33 issue: 1 first page: 221 year: 2025
doi: 10.1002/sd.3106
31. SOCIAL PROTECTION AND EMPLOYMENT IN AFRICA’S AGRICULTURAL SECTOR
Romanus Osabohien, Olaronke Onanuga, Busayo Aderounmu, Oluwatoyin Matthew, Evans Osabuohien
Business: Theory and Practice vol: 21 issue: 2 first page: 494 year: 2020
doi: 10.3846/btp.2020.11945
32. Impact of Human Development Indices on Agricultural Output in Nigeria
King Sunday Agbagwa, Data Irene Ekine, Prince Nwosa, Eleoke Chikwenmegbu Chukuigwe, Iboh Andrew Okidim, Ikechi Kelechi Agbugba, Jacques Nsengiyumva
European Modern Studies Journal vol: 8 issue: 6 first page: 332 year: 2025
doi: 10.59573/emsj.8(6).2024.25
33. Farm Household Access to Agricultural Credit in Sagnarigu Municipal of Northern Ghana: Application of Cragg’s Double Hurdle Model
Benjamin Tetteh Anang, Gilbert Dagunga
Journal of Asian and African Studies vol: 59 issue: 8 first page: 2449 year: 2024
doi: 10.1177/00219096231154234