The effects of rural credit access on technical efficiency among cassava-based farmers in south-south Nigeria

This study is intended to assess the effects of rural credit access and resource use efficiency among cassava-based farmers in South- South Nigeria. It counts on field survey that was conducted in 2023, using well designed questionnaire. The survey sampled 284  respondents covering Rivers, Bayelsa and Akwa-Ibom States of Nigeria, which were selected through a multi-stage random sampling  technique. Descriptive statistical analysis, and the Cob Douglas stochastic production frontier were used to analyse the data collected.  Results showed that the mean income for households with access to formal credit was ₦1, 008617 per annum ($1,345 USD) while that of households with informal credit access was ₦491,815 per annum ($656 USD), implying that farmers with access to formal credit are  relatively better off in wellbeing compared to informal credit users. Results from the stochastic production frontier showed an average  technical efficiency of 90% and 67% for formal credit and informal credit using far m households respectively. Major determinants of the  efficiency of the formal and informal credit access households that were identified include farm size (0.924 and 0.802), at p > 0.01, labour  (0.315 and 0.286), at p > 0.05; p > 0.10, and fertilizers (0.075), at p > 0.05. Similarly, key influencers of technical inefficiency were age (-0.112  and -0.356), at p > 0.05, marital status (-0.223 and -0.930), at p > 0.05, and years of farming experience (0.344 and -0.930), at p >  0.01; p > 0.05, for both categories of households. Smaller farms were also found to be more efficient than larger ones. It is strongly recommended that a special window be opened in the agricultural input sector to enhance rural farmers' access to credit facilities and to  develop farmers’ capacity to harness and utilize the limited financing facilities and production resources extended to farmers.