EFFECT OF MICROCREDIT DYNAMICS ON CATFISH ENTERPRISES IN IBADAN, NIGERIA

Abstract

The broad purpose of this study was to assess the effects of Microcredit Dynamics on Catfish Enterprises in Ibadan, Oyo State, Nigeria, focusing specifically on microcredit accessibility, utilization, and repayment metrics. The population of catfish production firms in Oyo State comprises of several production systems. A multistage sampling technique was employed to select 150 catfish production firms operating under earthen, concrete, tarpaulin, and fiber/plastic systems. Primary data were collected using a structured questionnaire and analyzed using descriptive statistics and multiple regression analysis. Descriptive results showed a mean farmer age of 44.6 years and an average farming experience of 14.8 years. About 95.3% of respondents had access to credit, while 89.3% maintained business accounts. The mean intended loan amount was ₦311,149, whereas the mean loan accessed was ₦272,485.33. The microcredit accessibility index was 88%, indicating that farmers obtained 88% of the credit applied for. The utilization index was 95%, demonstrating efficient deployment of funds for production activities, while the repayment index stood at 87%, reflecting strong repayment performance. The result of the multiple regression analysis shows a significant relationship between catfish output (COUPUT) and independent variables microcredit accessibility, Utilization and repayment (MACCES, MUTIL & MREPAID) of the model. The study therefore recommends that Creditors should make sure that loan forms are processed swiftly and that successful applicants receive their loans on time so they can comply with their due date for catfish production.