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Financing Small and Medium Scale Agribusiness in Nigeria: Constraints and Prospects
... Small and Medium Enterprises (SMEs) play an important role in the economic growth and development of any nation (Nto and Acha, 2012). According to (Kpelai, 2009), they are the engine room for the growth of any developing economy. ...
... Many programs have been initiated both by the government and the Central Bank of Nigeria over the years in a bid to raise funds for SMEs in Nigeria. Most of these programs were aimed at encouraging self-sufficiency and promoting main-stream financial transactions (Ayeni-Agbaje and Osho, 2015;Nto and Acha, 2012). However, they faced diverse challenges such as lack of long-term financing, inappropriate management skills, low market access, lopsided legislation and dearth of adequate infrastructure etc (Acha I. A., 2012;Gbandi and Amissah, 2014;Lawson, 2007). ...
This study is a critique of the diverse models adopted for micro insurance covers by microfinance banks in Nigeria. It is aimed at ascertaining the most functional model(s) which best fits the financial system and its low income earning entrepreneurs and businesses. Micro insurance is a financial arrangement to protect low income people against specific perils in exchange for regular premium payments. It is mostly provided by microfinance banks as an innovation to their micro financing activities such as lending, leasing, savings and cash transfer to the poor or those excluded by the mainstream retail banking sector. Diverse micro insurance models have been developed over the years but these are characterized by one flaw or the other such that little value is offered in contrast to the large sums involved. There is therefore a need for a model which could provide a comprehensive yet affordable micro insurance service. In this paper, six models adopted in various countries are analysed with a view to relating their effectiveness to the Nigerian environment. We conclude that the partner-agent model and mutual cooperatives fit the Nigerian financial system and recommend them to microfinance institutions in their efforts to boost SMEs in Nigeria.
... Rice farmers often borrow money from informal sources with very high interest rate. Formal credit institutions are highly constrained in financing rice production because of inherent risk and limitations associated with the enterprise [14,15] An empirical study conducted by [10] on "Analysis of risk among agribusiness enterprises investments in Abia State, Nigeria", using econometric tools like w-statistics and Pearson Criterion reveals that the major source of risk to formal agribusiness enterprises are financial, marketing, currency and production risks in that order. [12] in a study conducted in Ukraine on "Risk Management in International agricultural Markets" using the above model reported that the major risk sources that affected profitability of export-import operations at DE "Rize-Agro-Services" are currency risk and del credere risk in that order with mean rank of 10 and 13 respectively. ...
... The table indicated that majority (73%) of the respondents are male while 27% are female. This contradicts the findings of [18] and [14] that women dominate (60-79%) of the rural agriculture. The mean age is 42.7166 years. ...
The study was conducted to evaluate risk management practices in rice production in Abia State, Nigeria with the specific objectives to: (a ) examinethe profile of rice producers (b ) identify sources of risk and the degree of influence on rice production. (c ) examine appropriate risk management Practices. Data for the study were collected using well structured questionnaires administered on 60 farmers who were obtained through random sampling technique. Data were analysed using mean, frequency table, percentage, w statistics and Pearson Criterion. Results of the study indicate that the highest risk sources to rice production were technical and political risk with mean rank of 1.29 and 2.29 respectively. The w -statistics was calculated to be 0.674 implying that concordance of rice
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