MICROFINANCE BANK’S CREDITS AND AGRICULTURAL PRODUCTIVITY IN ADO-ODO OTA LOCAL GOVERNMENT

Abstract

This research determined the impact of micro-finance bank credits on the agricultural productivity in Ado-ota town. The other specific objectives accompanying the primary aim are: to determine the impact of Micro-finance Bank Credits on the profits made by the agricultural sector and to examine the impact of Gross Domestic Product on the revenues made by the Ado-Odo Ota local government. Primary research was adopted for this purpose of this research with 100 questionnaires being shared with a 78% return rate. The analysis of hypothesis was done using correlation and regression analysis for hypothesis one and two respectively. The correlation analysis shows the r-coefficient is a positive 0.773 which shows a positive relationship exists between the micro-finance credits and profits while the regression analysis shows a r-square of 73.8% indicating a strong relationship between standard of living and agriculture. It is recommended that more micro-finance credits should be given to the farmers to enable them increase productivity which will in turn increase the productive capacity of the economy.