OSASENAGA MICHELLE OGBEMUDIA

This study examined the effect of agricultural credit on rural livelihood diversification among cassava farmers in Orhionwon Local Government Area, Edo State, Nigeria. A structured questionnaire was used to collect primary data from a sample of 80 cassava farmers through a multi-stage sampling technique. Data were analyzed using descriptive statistics (frequency, percentage, and mean scores) and inferential statistics (Independent Samples T-test). The socio-economic analysis revealed that the majority (56.25%) of the farmers were female, with a mean age of 43 years and a mean farm size of 1.6 hectares. Cooperative societies were identified as the most frequent source of credit (33.75%), while friends and government sources also played significant roles (30% each). The
primary purposes for seeking credit were the acquisition of farm inputs for cassava
production (50.67%) and the payment of farm labor (26.67%). Despite access, 51.25% of respondents indicated that the credit received was insufficient for their needs. Livelihood diversification was found to be a prevalent survival strategy, with 92.31% of farmers engaging in other activities such as poultry farming, petty trading, and cassava processing. The results of the t-test analysis showed a statistically significant increase in mean income from ₦554,000 before accessing credit to ₦736,500 after accessing credit (P < 0.05), confirming that agricultural credit positively impacts financial leverage and diversification capacity. However, high interest rates (Mean = 2.586) and strict collateral requirements (Mean = 2.525) were identified as the leading constraints to credit access. The study recommends that financial institutions and government agencies should lower interest rates and simplify collateral requirements to enhance credit accessibility, thereby fostering sustainable rural livelihoods and economic resilience among smallholder farmers