This study examines the utilization of informal credit and its effects on cassava production among smallholder farmers in Akure North Local Government Area (LGA), Ondo State, Nigeria with specific objectives to describe the socio-economic characteristics of cassava farmers, assess the benefits of informal credit utilization, identify factors influencing its use, and examine constraints associated with informal credit access. Primary data were collected from 120 cassava farmers using a structured questionnaire and a two-stage sampling technique. Data were analysed using descriptive statistics, Likert-scale analysis, probit regression, and t-test. Results revealed that 75.0% of the respondents were male, with a mean age of 54 years. Most respondents (80.0%) were married, had an average household size of six persons with 85.0% of respondents attaining tertiary education. The mean farming experience was 16.9 years, and 91.7% of the farmers belonged to cooperative societies. Informal credit was accessed by 52.5% of the respondents. Major benefits derived from informal credit utilization included improved cassava yield (= 2.72), asset accumulation (= 2.38), and improved standard of living (= 2.36). Probit regression results indicated that gender (p < 0.10), interest rate (p < 0.05), and repayment period (p < 0.01) significantly influenced informal credit utilization. Key constraints identified were inadequate credit amounts (= 1.92) and lack of collateral (= 1.71). The study concludes that informal credit positively contributes to cassava production; however, access remains constrained by financial and institutional factors. It recommends strengthening linkages between informal and formal financial institutions, improving access to affordable and flexible credit, and promoting financial literacy and gender-inclusive financial interventions to enhance agricultural productivity and rural livelihoods.
Publication Date: 2026-06-15