Volume 12, Issue 25, January - June 2026

Microcredit Access, Repayment, and Profitability Differences in Cassava Production in Ona-Ara Local Government Area, Oyo State, Nigeria

Ismaila MO^1♦, Akanbi OM², Fakayode SB¹

¹Department of Agricultural Economics and Extension, Federal University Oye-Ekiti, Nigeria
²Department of Animal Health and Production, Federal University Oye-Ekiti, Nigeria

^♦Corresponding author
Ismaila MO, Department of Agricultural Economics and Extension, Federal University Oye-Ekiti, Nigeria

ABSTRACT

This study aimed to profile the socio-economic characteristics of cassava farmers, assess loan volumes accessed and repaid, and compare profitability between microcredit beneficiaries and non-beneficiaries in Ona-Ara Local Government Area, Oyo State, Nigeria. The methodology utilised multistage sampling involving purposive selection of cassava-prominent villages and communities, stratification by credit status, and random sampling of 2% of registered farmers (218 usable responses), with data gathered through questionnaires and interviews. Analysis via descriptive statistics, t-tests for group differences, budgetary techniques for profitability, Cobb-Douglas production function for input effects, and marginal value productivity for efficiency assessment. Results showed farmers were mostly male, married, educated to secondary level, with small households and infrequent extension visits; beneficiaries farmed larger areas (2.1 ha compared to 0.8 ha) and sourced credit primarily from cooperatives (59.5%) and microfinance banks; significant gaps existed in loan demand (₦240,900 requested compared to ₦117,747 disbursed) and repayment (₦70,923 repaid), with t-tests confirming differences; profitability was markedly higher for beneficiaries, driven by farm size elasticity (>1), planting materials, and labour, though inputs generally showed inefficient use except herbicides among non-beneficiaries. The study concluded that microcredit significantly enhances cassava profitability for beneficiaries by enabling greater production scale and returns, notwithstanding low repayment rates and disbursement shortfalls. Recommendations encompass promoting farmer cooperatives for collective savings and improved credit access, extension-led education on microcredit advantages, policy reforms for timely and sufficient soft loans, and enforcement of repayment discipline to sustain lender confidence and program viability.

Keywords: Cassava, Microcredit, Profitability, Loans, Cooperatives

Discovery Agriculture, 2026, 12, e10da3206

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Published: 21 May 2026