Missed our last presentation on agro-dealer financing? Live in Ibadan? If either of these scenarios apply, join us on October 31st as the International Institute for Tropical Agriculture hosts IFPRI Senior Economist/Consultant Dr. Aderibigbe Olomola for a seminar. In the seminar, titled "Issues Influencing Agro-dealers' Participation in the Loan Market in Nigeria," Dr. Olomola will cover the determinants for agro-dealer participation in loan markets, as well as policy recommendations for improving agro-dealers' access to finance.
Date: Thursday, October 31, 2013
Time: 9:00AM - 11:00AM
Venue: Vigna Room, International Institute of Tropical Agriculture, Ibadan, Oyo State
RSVP: Email email@example.com before the 29th of October. Please note, space is limited. You will not be permitted to attend if you don't RSVP by the deadline and receive a confirmation back from Mrs. Bashir.
We apologize, but we are unable to provide transportation stipends to attend this event.
Agro-dealers have a crucial role to play in the distribution of inputs under the Agricultural Transformation Agenda in Nigeria. However, they have not been able to perform this role effectively due to inadequate financial resources. Thus, the objectives of this study are to (i) examine the issues influencing the decisions of agro-dealers to participate in the loan market, (ii) analyze the demand for business loans by the agro-dealers and (iii) articulate policy measures for sustainable agro-dealership financing. The study employed primary data collected through structured questionnaires from 300 agro-dealers across the six geo-political zones of the country and used the Heckman’s Selection Correction Model for the analysis.
The results show that the probability to participate in the loan market is higher among agro-dealers that are members of trading associations than their non-member counterparts. Agro-dealers who have personal savings to rely on for their business operations may decide not to borrow while those whose level of indebtedness is rising are likely to decide to participate in the loan market. The major determinants of loan demand however, are interest rate, debt, value of asset, membership of trading association and source of credit. Agro-dealers need to organize themselves into input trading associations to enhance their creditworthiness and to unleash the inherent social capital and information advantages for improved agro-dealership financing. Diversification of product coverage by agro-dealers should be encouraged since this is also likely to enhance their credit rating. Finally, a value-chain approach that links internal financing in the form of trade credit within the agro-input sector with external financing from the commercial banks is strongly recommended.
Prof. Olomola is a Senior Economist/Consultant under the Nigeria Strategy Support Programme of the International Food Policy Research Institute (IFPRI) Abuja, Nigeria. Prior to this, he has been working at the Nigerian Institute of Social and Economic Research (NISER) from where he is currently on leave. At NISER, he has been Head of the Macroeconomic and Strategic Modeling Unit, Head, Research and Consultancy Unit, Director, Agriculture and Rural Development Department, Editor-in-Chief of NISER’s Journal – Research for Development- and Director of the Surveillance and Forecasting Department of the Institute.
A renowned international scholar, Prof. Olomola was a winner of the prestigious Fulbright Senior African Scholar Award in 1994/95 and to date he remains an Academic Adviser to the Sweden-based International Foundation for Science (IFS). He was a member of the African Capacity Building Foundation (ACBF) Technical Advisory Panel and Networks (TAPNETs) and also a member of the African Union (AU) Task Force on the Establishment of African Research Council (ARC) in 2010/2011.
A prolific writer, Prof. Olomola has numerous publications including books, book chapters, monographs and articles in national and international Journals and has wide-ranging experience in consultancy activities. He has consulted for several organizations including the World Bank, UNDP, ILO, FAO, IDEP, UNU-WIDER, IFPRI, CIDA, ODI, ACBF IIED and AERC all in the areas of agricultural and development economics.