Assessment of Agricultural Credit Access and Its Effect on Farm Output in Niger State

Agricultural credit is a critical input for smallholder farmer productivity, and examining its accessibility and output effects in North Central Nigeria provides evidence for financial inclusion and food security policy. This study assessed agricultural credit access and its effect on farm output among smallholder farmers in Suleja, Lapai, and Agaie Local Government Areas, Niger State. A cross-sectional survey was conducted among 280 smallholder farmers. Data collected covered credit access status, source, amount, repayment terms, input use, and crop output. Ordinary least squares regression was applied to estimate the effect of credit access on farm output. Results showed that only 38.9 percent of sampled farmers had accessed formal or informal agricultural credit in the preceding season. Commercial bank credit reached only 8.2 percent, with microfinance institutions serving 18.6 percent. Collateral requirements and high interest rates were the primary barriers to formal credit access. Regression results showed that credit access significantly increased farm output (coefficient = 1.87, p < 0.001), with each naira of credit generating N1.87 in additional output on average. Fertiliser and improved seed adoption were significantly higher among credit-accessing farmers. The study concludes that credit constraints severely limit smallholder productivity in Niger State. Recommendations include collateral-free agricultural loan schemes through the Bank of Agriculture, group lending models for rural farmers, and expanding NIRSAL credit guarantee coverage to Niger State smallholder cooperatives. Keywords: agricultural credit, farm output, smallholder farmers, Niger State, financial inclusion