Browsing by Author "Olumba, Ujunwa Miriam"

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    Comparative analysis of financing livestock production by formal and informal financial institutions in Imo State, Nigeria
    (Federal University of Technology, Owerri, 2025-03) Olumba, Ujunwa Miriam
    This study aimed to comparatively analyze the financing of livestock production by formal and informal financial institutions in Imo State, Nigeria. Questionnaire was used to collect data from 120 livestock farmers comprising 60 livestock farmers financed by formal financial institutions and 60 livestock farmers financed by informal financial institutions through multistage sampling procedure. Data collected were analyzed using descriptive statistics (frequency distribution, percentages, mean score, TRCS and standard deviation) and inferential statistical tools (Probit model, Multiple Regression Model, Chow test and Zstatistic). Results of the socio-economic characteristics showed that livestock farmers financed by formal financial institutions were more of male (55%) with mean age of 47 years, married (88.3%) with average household size of 5 persons and 9.7 mean years of education, were members of cooperative society (66.7%) while livestock farmers financed by informal financial institutions were also mostly male (56.7%) with mean age of 44 years, married (86.7%) with average household size of 4 persons, majority were not members of cooperative society (80%). Findings showed that with Z-test values (6.9650) and (6.7646), which were significant at 5% level, there was a significant difference in the credit characteristics of livestock farmers financed by formal and informal financial institutions and that livestock farmers financed by formal financial institutions were more financially credible (65%) than those financed by informal financial institutions (28.3%). Results of the probit analysis showed that income with a marginal value of 1.30e-06, livestock size (0.0013), and credit duration (0.0305) positively influenced financial credibility of livestock farmers financed by formal financial institutions while gender with a marginal value of 0.3185, level of education (0.0460), years of experience (0.0098), livestock size (0.0052) and cooperative membership (0.3561) positively influenced financial credibility for livestock farmers financed by informal financial institutions. Findings also revealed that there was a higher level of risk associated with financing livestock farmers through formal financial institutions when matched with informal financial institutions. Results of the socioeconomic and institutional factors influencing livestock financing showed that income (1.12E-06), years of experience (0.0318) and duration of credit (0.0567) positively influenced livestock financing by formal financial institutions while livestock size (0.1823), cooperative membership (0.3033) and credit duration (0.8931) influenced livestock financing by informal financial institutions. The major factors militating against livestock financing by formal financial institutions were years of account holding (75.00%), savings deposits (95.00%), insufficient collateral (85.00%) and lack of personal guarantors (83.33%), while that of livestock financing by informal financial institutions were insufficient credit (90.00%), years of membership (80.00%) and lack of personal guarantor (53.33%). It was recommended that government make improved policies and innovative financial products tailored specifically to the needs of the livestock sector to enhance its growth and productivity.