ACCESS AND DEMAND FOR CREDIT AMONG SMALL SCALE AGRO-BASED PROCESSORS IN UYO AGRICULTURAL ZONE, AKWA IBOM STATE, NIGERIA

The study analysed the determinants of access and demand for credit among agro-based processors in UyoAgricultural Zone of Akwa Ibom State. A multi-stage sampling technique was employed to select 110 agro-basedprocessors (cassava graters and oil palm millers). A structured questionnaire was administered to the processorsto collect the required information. The descriptive statistics and Heckman two-step selection model were used toanalyze the information collected. Results show that majority of the processors were males, who had access tocredit information and ICT facility; were married and moderately educated. They were of average age (46.58years), processing experience (19.83 years), household size of about 6 persons, belonged to a social group (0.76years), and with an average annual income of about N305, 222.70. The empirical results revealed that theprocessors' age, education, social capital, access to ICT, experience, household size and credit information weresignificant determinants of access to credit. Also, education, experience, household size, machine capacity, socialgroup, labour cost, the amount of collateral, interest rate, distance to credit source and income from other sourcesinfluenced the level of credit demand among the processors. To promote credit access and demand among agrobasedprocessors, it is recommended that, social capital formation among the processors is the key. Also,intensifying adult education and family planning would enhance credit access and demand among the processors.In addition, the youths should be encouraged to engage in agro-based processing as a way to decrease the cost oflabour and ensure the sustainability of the business in the State. Furthermore, internet coverage should beexpanded in the rural areas while the amount of interest rate charged on loans from the informal credit sourcesshould be moderated.