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ABSTRACT
This study is all about the analysis of credit facilities to small scale fish farmers. A study of Small scale fish farmers in Sagbama Local Government Area of Bayelsa State. The choice of this topic is derived from the fact that most small scale fish framers are yet to another terms with the realities of the implication of micro-credits on the overall performance of their business. The researcher employed both primary and secondary data. The primary data contains the findings gathered through the administration of questionnaires to small-scale fish framers. The secondary data as its source from relevant writing materials such as textbooks projects, magazines, newspapers, journals etc. It provides a detailed analysis of credit facilities its merits and demerits. In carrying out the research, descriptive survey method was used. The population is made up of 240 small-scale fish farmers in Sagbama local government Area out of which 150 small-scale fish framers was drawn as the sample size using Yamane’s formula. Chi-square statistic method was used to test the hypothesis in order to ascertain their validity. The instrument used for the study is a questionnaire. The data collected was analyzed using simple percentage. The result shows among others that high interest rate collateral security, complex credit acquisition procedures, deposit of 10% of the needed credit, lending to small scale fish farmers us being perceived risky and unwilliness to present document and accounting records on the part of the small scale fish farmers are the constraints of micro credit acquisition that affect the small scale fish farming. The researcher recommended among others that, government should regulate a policy to reform the procedure of issuing credit to small scale fish farmers should also direct their credit officers to reach the small scale fish farmers as they are being scattered in various fishing ports and communities.
CHAPTER ONE
INTRODUCTION
1.1 Background Of The Study
Credit is the transaction between two parties in which the creditor or lender supplies money, or goods and services or securities in return for promised future payments by the debtor or borrower. It also refers to money that a bank or business will allow a person to use and then pay back in the future. In economics and finance, credit is a contractual agreement whereby a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. Micro is defined by Horroby (2001) as small or small scale. Adekaye (1983) referred to small scale fish farmers as traditional, rural and mostly private or family owned enterprises, which are characterized by low capital, low productivity, Meager saving from agricultural investment, thus a vicious cycle of poverty. They are unable to take advantage of any new technology to either create or maintain adequate farm size due to lack of access to funds. They may engage in cropping, livestock production, fishing and forestry.
According to FAO (2003) small scale farm activities supply up to 80% of the food products for domestic consumption which improves agricultural activities in the country, especially Bayelsa State. The Bayelsa State population is dominated by small scale fish farmers who mostly carry out subsistence agriculture activities. Ambeze (1995) described the sector as a sector that deals with small scale, the sector as a fisheries, lumbering, farming etc. and defines it as the hunting and removal of fish and aquatic organism from their wild habitat. He refers as the major employer of labour in the riverine communities.
Kwesiniju (1996) described that in spite of the tremendous contribution of the sector, no proper incentive has been put in place to courage their performance. They are faced with numerous production problems such as fishing crafts and gear, processing and preservation equipment’s, net and other accessories (Moses 1992) small scale fish farmers need micro credit to purchase fingerlings, fish feeds, fertilizers, agro-chemicals, payment for labour cost and transportation. Money is also needed to run the day to day transaction in the fish farming business and to feed the family.
Anyanwu and Anyawu (2003) observed that small scale farmers are poor and cannot afford to acquire these modern inputs, for their production. This is why the small scale fish farmers need to acquire micro-credit to utilize for their operation. But the access of these farmers to micro-credit is uncertain. How these farmers acquire micro-credit for their production activities is a problem? From the aforementioned there is the need to raise the necessary capital for agricultural development among farmers. Anyanwu also observed that farmers do not often receive much financial assistance from relations, friends or neighbours as these people are generally poor. Herbert (2001) identifies both informal or non-institutional or formal or institutional credit to farmers.
Nwezer (1993) refers to informal finance or credit as money from traditional or indigenous arrangement for saving and credit which often lack legality and are outside any statutory control in Nigeria, informal source of credit available to small scale farmers can be divided into financial self-help groups and individual financial self-help association and other development, oriented self-help groups in which financial functions are normally secondary (Kipp, marx Prumid, Quinones and Sehel, 1989). The most wide spread and most important financial self-help or mutual associations are the saving and credit association (Seibel and Damachi, 1982, Seibel and Marx, 1987, Nweze, 1990).
Herbert (2001) stated that successive government in Nigeria recognizing the relevance of credit as a tool in poverty alleviation among farmers, have put in place a number of all productive sectors of the economy especially agricultural enterprises. Herbert (2003) also identify the following institutional or formal micro-credit service in Nigeria
Nigerain Agricultural and Cooperative Bank (NACB)
People’s Bank of Nigeria (PBN
Community Bank (CB)
Family Economic Advancement Programme (FEAP)
Agricultural Credit Guarantee Scheme (ACGS)
Rural Banking Scheme (RBS)
1.2 Statement of the Problem
The importance of small scale fish farmers in the economic development of Nigeria, especially in Bayelsa State has manifested in the provision of food, personal income, shelter, clothing, raw materials and other. Larwaih (2000), a huge percentage of the Nigeria labour force (15%) are engaged in this small scale farming. These farmers who provide these all-important functions are faced with the problem of low capital and need the acquisition of micro-credit to improve their production.
Owing to the Deltaic nature of the terrain of Bayelsa State, there exist several rivers, creeks Lakes and other water bodies in virtually all parts of the state whether Delta or upland. Consequently, farming activities are carried out by the indigenous population everywhere in the state. Farming is a predominant occupation of the people.
Farming development implies increase in the cultivation activities which naturally calls for increase capital investment in procurement of adequate quantity and quality of farming inputs; however, low income accruing to small scale fish farmers is a well-recognized constraint (Obidoze, 1990 and Kuro, 1990). Thus fish farmers who do not have alternative sources of financing resort to borrowing in the form of credit. In the past and recent years various government in Nigeria embarked on different efforts and programmes aimed at boosting the activities of small scale fish farmers in particular and agricultural production in general (Nweze, 2001) these programmes were geared towards funding of the rural society leading to its transformation from traditional isolation, to integration of this broad objectives, government tried several programmes approaches and strategies in order to make funds accessible to small scale fish farmers in the areas (Eboh-Okoye and Ayichi, 1995, and Ehigiamugae, 2000). Government also gives encouragement to, these small scale fish farmers to form cooperation societies to improve their financial base but despite these efforts at both Federal and State levels, micro-credit acquisition and utilization among these small scale fish farmers still not accessible. Fish farmers are still opting for micro-credit to purchase fingerlings, fish feeds, Land or tanks and to pay labour and carriage (i.e. cost of transporting goods) the loan terms and conditions are still not favourable. The following areas of problem shall be looked into: micro-credit needs, acquisition, utilization sources, strategies, terms and conditions of loan among small scale fish farmers are the specific areas of the problem the researcher wish to concentrate in this study.
1.3 Purpose of the Study
The overall purpose of the study is to access the credit acquisition and utilization strategies of small scale fish farmers in Sagbama Local Government Area of Bayelsa State. The specific objectives are as follows
i. To identify the micro-credit needs of small scale fish farmers in Bayelsa State;
ii. To identify the major sources of micro-credits among small scale fish farmers in Bayelsa State.
iii. To determine the terms of micro-credit acquisition among small scale fish farmers in Bayelsa State.
iv. To examine the ways of micro-credit utilization among small scale farmers in Bayelsa State.
v. To identify strategies for enhancing micro-credit acquisition and utilization among small scale fish farmers in the State.
1.4 Research Question
The study will answer the following research questions;
i. What are the micro-credit needs of the small scale fish farmers in Bayelsa State?
ii. What are the major sources of micro credit available to small scale fish farmers in Bayelsa State?
iii. What are the terms and conditions of micro-credit acquisition among small scale fish farmers in Bayelsa Sate?
iv. What are the ways of utilizing micro-credit among small scale fish farmers in Bayelsa State?
v. What are the constraints of micro-credit acquisition among small scale fish farmers in Bayelsa State:
1.5 Research Hypothesis
Given the nature of this research work there is need to formulate a reasonable hypothesis
HO: micro-credit is not significant in the operation of small scale fish farmers in Bayelsa State
1.6 Significance of the Study
Generally, it is assumed that rural and small scale fish farmers have relatively low income and therefore unable to repay loan credit extended to them. Expansion and modernization of their farmers depend to a large extent to capital investment, given good management to obtain micro-credit finance institution. The research work would therefore find out how small scale fish farmers acquire their loans from micro- credits and the strategies that are involved in acquiring these credits.
The finding of this study would also serve as an eye opener to fish farmers who had not known about these micro-credit financing institutions when the information is made available to them by extension agents. The lending institution will also again from the research work since the study will provide useful information on the effort of bans issued to the small scale farmers and their level of operation to meet farmers demand for improving their productivity and income.
Micro-credit to small scale fish farmers no doubt is essential to sustain fish production and there is the need for constant evaluation. The outcome will help to determine their continued existence as the main sources of micro-credit.
1.7 Scope of the Study
The scope of this study shall cover the role of credit facilities to small scale fish farmers in Sagbama Local Government Area of Bayelsa State. This study shall encompass the nature, the structure and availability of credit facilities as well as measurement of relative accessibility to small scale fish farmers in Nigeria at large.
1.8 Justification of the Study
The concern of credit facilities as a factor input has been amplified by different experts and government itself has the potential opening new doors of opportunities in the development of small scale fish farmers in Nigeria.
There are few studies on the subject of small farm credit and now their socio-economic characteristics influence their decision about whether or not to take credit. The development of the sectors is not feasible if and avenue of credit facilities is not provided. Therefore this research work is directed at providing insight into this less Studies dimensions in agriculture by eliciting and analyzing small scale fish farmers in Sagbama Local Government Area of Bayelsa State, Nigeria.
1.9 Definition of Terms
For the purpose of clarity, the researcher defined the following terms operationally:
(i) Chi- Square: is a statistical technique employed in testing a hypothesis concerning the difference between a set of observed
(ii) Micro-credit: is a considerable amount of money a Bank or Business unit allows a person to use and then pay back in the future.
(iii) Micro means small or small scale
(iv) Hypothesis: is a statement of the expected relationship between independent and dependent variables in the study.
(v) Collateral security: is a valuable property that one promises to give if he/she cannot pay back money borrowed.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
This chapter is concerned with the presentation, interpretation and analysis of data collected for the study. There will be five (5) tables presented according to research question posed of the study.
4.1.1 Research Question1
What are the micro credit needs of small scale fish farmers?
Table 4.1 summary of percentage scores of respondents on the needs of micro credit by small scale farmers.
| S/N | Micro credit needs | SA% | A% | D% | SD% | TOTAL% |
| 1 | To meet Labour expenses | 34
22 | 67
45 | 37
25 | 12
8 | 150
100 |
| 2 | To purchase fish feeds and fingerlings | 34
23 | 51
34 | 47
31 | 18
12 | 150
100 |
| 3 | Provision of adequate storage | 20
13 | 63
42 | 40
27 | 27
18 | 150
100 |
| 4 | To meet other financial commitments | 26
17 | 55
31 | 44
29 | 25
17 | 150
100 |
| Total mean and percentage | 28
19 | 59
39 | 42
28 | 21
14 | 150
100 |
Sources: field, 2016; cut off percentage = 50
The data presented in Table 4.1.1 shows that 28 (19 percent) of the total respondents strongly agree, 59 (39 percent) agree, 42 (28 percent) disagree and only 21 (14 percent) strongly disagree with the micro-credit needs of small scale fish farmers. This implies that 58 percent of the totals mean respondents agree and 42 percent disagree that Labour expenses, purchase of fish feeds, fingerlings, provision of adequate storage and other financial commitments are micro-credit needs of small scale fish farmers.
4.1.2 Research Question 2
What are the sources of micro-credit available to small scale fish farmers?
Table 4.1.2 summary of percentage scores of respondents on the sources of micro credit available to small scale fish farmers?
| S/N | Sources of micro credit | SA% | A% | D% | SD% | TOTAL% |
| 5 | Micro Finance Banks | 42
28 | 52
35 | 38
25 | 18
12 | 150
100 |
| 6 | The Agricultural and cooperative Rural development banks | 45
30 | 53
35 | 38
25 | 14
10 | 150
100 |
| 7 | State Government credit institution | 32
21 | 60
40 | 35
24 | 23
15 | 150
100 |
| 8 | Co-operative societies | 33
22 | 61
41 | 38
25 | 18
12 | 150
100 |
| Total mean and percentage | 38
25 | 57
38 | 37
25 | 18
12 | 150
100 |
Source: Field, 2016 cuff-off percentage = 50
The data presented in Table 4.1.3 indicates that 38 (25 percentage) of the total respondents strongly agree, 57 (38 percent) agree, 37 (25 percent) disagree and only 18 (12 percent) strongly disagree with the sources of micro credit available for small scale fish farmers. This simply means that, 63 percent of the total mean respondents agree and 37 percent disagree, that micro Finance Banks, Agricultural and cooperative rural development Bank and cooperative societies are sources of micro credit available for small scale fish farmers.
4.1.3 Research Question 3
What are the terms of micro credit among small scale fish farmers?
Table 4.3 summary of percentage scores of respondents in the terms of micro-credit acquisition among small scale fish farmers.
| S/N | Terms and Conditions | SA% | A% | D% | SD% | TOTAL% |
| 9 | Collateral security | 31
21 | 60
41 | 45
30 | 14
9 | 150
100 |
| 10 | 10% deposit of needed credit | 29
19 | 52
35 | 48
32 | 21
14 | 150
100 |
| 11 | Credit given to members only and “collect at your time” | 30
20 | 55
37 | 45
30 | 20
13 | 150
100 |
| 12 | Completion of complex forms and pre-audit of application. | 34
23 | 49
33 | 35
23 | 32
21 | 150
100 |
| Total mean and percentage | 31
21 | 54
36 | 43
29 | 22
14 | 150
100 |
Source: Field; cut-off percentage =50
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