Credits seeking and sourcing for agribusiness firms in developing countries: An empirical review of Nigerian experience
Department of Agricultural Economics, Faculty of Agriculture, Delta State University, Abraka, Delta State, Nigeria.
Review Article
GSC Advanced Research and Reviews, 2023, 17(02), 196–208
Article DOI: 10.30574/gscarr.2023.17.2.0432
Publication history:
Received on 05 October 2023; revised on 19 November 2023; accepted on 22 November 2023
Abstract:
Credit is one of the crucial resource capable of accelerating revolutionary transformations Credit stands out as a vital source of funding among the numerous ones that are essential for agribusiness firms. Agribusiness includes all aspects of farming and allied business ventures with the overall goal of increasing aggregate agricultural output and promoting general economic development. Agribusiness has been recognized as a key driver of the world economy Banks, nonbank financial organizations, stock exchanges, and other sources are only a few of the places where credit can be obtained for agribusiness. One of the difficulties limiting Nigerian agribusiness performance in developing nations is credit finance. While the government of developing nations are trying to assist farmers, their efforts frequently fail to reach the intended targets. Most times, only farmers with strong political ties or allegiances typically have access. These loan facilities occasionally get into the hands of people who are not real farmers, diverting government efforts away from their primary goal.Credit seeking and sourcing behaviours involves the frequency of credit application within a short period of time. This behavior can be viewed evaluated by lenders as it may indicate that the borrower is in serious financial distress and is seeking credit to address it. There `has been a discernible rise in the amount of money going to the agriculture industry throughout time. It was concluded that both in the short and long terms, bank loans had no discernible effect on agribusiness performance due to high interest rate charged. It was recommended that monetary authorities should make a concerted effort to close the growing gap between the lending rate and savings rate so that people will be completely encouraged to save in order to access credits for agribusiness investment in Nigeria.
Keywords:
Credits seeking behavior; Credit sourcing; Agribusiness; Firms; Developing countries; Credit mobilization
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
