Effect of Credit Facility on Aquaculture Technology Adoption by Fish Farmers in Oyo State

Abstract

The development of aquaculture can only be enhanced by the introduction of modern technologies. The study was therefore aimed to identify effect of credit on aquaculture technologies adopted by fish farmers,. The study area is Oyo state. Questionnaires were administered to registered fish farmers under Oyo State Agricultural Development Programme (OYSADEP) through stratified sampling method. Clarias gariepinus (84.0%) and Oreochromise niloticus (42.0%) were the most common species cultured. Majority (85.0%) of the fish farms were located in the urban or peri-urban where they can easily access credit. Sources of fund for aquaculture production were personal (45.0%), cooperative loan (35.0%) and bank loan (20.0%). There was an increase in units of technologies used before and after credit such as increase in boreholes users, number of nursery pond, drag net for fish harvesting and pumping machines. Quantity of fish seed produced, increased from 400,000 pieces to 900, 000 fingerlings/juveniles. In terms of their perception, 71.0% of the fish farmers were convinced that credit has a positive effect on technology adoption and that loans from cooperatives are the best (63.0%). Results of the Chi-square statistics show that access to credit has a significant effect on income and production (p< 0.05). Most of the farmers have challenges with being able to access bank credit, due to poor feasibility studies and inadequate farm record keeping. Other constraints to acessing credit include high interest rates, short pay back period and limited credit sources.The success of modern fish farming business in Nigeria is dependent on technology adoption and credit. More credit should be made available to the fish farmers at reduced interest rate, to enable them purchase inputs for increased fish yield.