• A. O. ESENWA



Benue State, Cassava Processors, Credit, Contribution, Formal Financial Institutions.


The study was carried out to assess the contribution of Formal Financial Institutions (FFIs) to income of cassava processors in Benue state, Nigeria. Multistage sampling technique was used to select 234 cassava processors from 18 communities in the state. Data on credit sources and uses, processing activities and income were collected using structured questionnaires. The data were analyzed using descriptive and inferential statistics while the impact of the credit was assessed using the before and after comparison. The result shows that about a third of the processors had access to formal credits. The Nigerian agricultural bank ranked highest (83%) in terms of patronage. Commercial and microfinance banks’ lending to cassava processing represented about 12% and 5% respectively of the total credit received. Majority (70%) of the processors received less than N100, 000 per year; an average of N63,152, which is about 12% of total amount, required. Credit financing from formal financial institutions was found to have significant effects on both the output of garri and flour processed and the profit from garri, flour and chips’ processing. The credit use structure shows that over 65% of the credit was use to increase processing scale, through increase in the purchase of raw tubers and payment for processing labour.


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