CREDIT AND AGRICULTURAL PRODUCTIVITY AMONG FARMERS IN GWARZO LOCAL GOVERNMENT AREA OF KANO STATE, NIGERIA BY HAMIDAN BELLO HARRIS MEC 1165-05306-09786 A RESEARCH SUBMITITED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT IN PARTIAL FULFILMENT OF THE RECUIRETMENTS FOR THE AWARD OF MASTER OF ARTS DEGREE IN ECONOMICS OF THE KAMPALA INTERNATIONAL UNIVERSITY, KAMPALA, UGANDA. JUNE, 2019 i DECLARATION I hereby declare that this thesis is my original work and the topic has never been submitted to any university or institution of higher learning for an academic award. Signature………………………… Date …………………………. HAMIDAN BELLO HARRIS i APPROVAL This research report has been submitted for examination with my supervisors consent Dr Byamukama E ………………………… ………………………… Signed Date ii DEDICATION I dedicated this work to Almighty Allah for giving me the opportunity to proceed with my academic activities up to this stage of learning. I believe many are willing to attain but could not make it because of one reason or the other. ALHAMDULILLAH ALA KULLI –HAL iii ACKNOWLEDGMENTS I wish to express my profound gratitude and happiness to Allah (SWA) for giving me the strength and wisdom to withstand the challenges of studying away from my home. Despite all the challenges, I finally made it. I wish to thank my entire family members for their courage in confronting the challenges of life during my leave of study. I wish to thank my supervisor, Dr Byamukama Eliab, for his tireless effort in ensuring that this work has become successful. Also not forgetting the tremendous effort imputed by my able lecturer, Dr Muhammad kibuuka, Prof. Emenike O. Kalu, Dr.Aminu M. Faggeand Dr Derrick in this work. My appreciation also goes to my school Principal Dr John Mutenyo, the H.O.D Mr M. Franklin, James Wakadala, Dr Taofik Mohammad Ibrahim, Dr Isaac Abuuga Prof. Dezi Nganbeki and all other scholars not mentioned. Not forgetting my friends and colleagues whom we share everything together. I love you all. Lastly, I would like to thank the Management of Federal College of Education (Technical) Bichi for nominating and accepting my request for Study leave without which that I would not have made it to Kampala International University, Uganda to pursue my Master’s program. Thank you all. iv LIST OF ACRONYMS SC THEORY Structural Change Theory FGN Federal Government of Nigeria ACGSF Agricultural Credit Guarantee Schemes Found TFP Total Factor of Production NACB Nigerian Agricultural Cooperative Bank MDG Millennium Development Goal SSA Sub- Sahara Africa RosCAS Rotation Saving and Credit Association BOA Bank of Agriculture OLS Ordinary Least Square ACSS Agricultural Credit Support Scheme CACS Commercial Agriculture Credit Scheme NIC New Industrial Country GPD Growth Domestic Productivity CBN Central Bank of Nigeria OECD Organisation for Economic Cooperation and Development IFAD International Fund for Agricultural Development ACGSF Agricultural Credit Guaranty Scheme USA United State of America SNU Standard Nutrition Unit v TABLE OF CONTENTS DECLARATION....................................................................................................................... i APPROVAL ............................................................................................................................. ii DEDICATION........................................................................................................................ iii ACKNOWLEDGMENTS ...................................................................................................... iv LIST OF ACRONYMS ........................................................................................................... v TABLE OF CONTENTS ....................................................................................................... vi LIST OF TABLES .................................................................................................................. ix LIST OF FIGURES ................................................................................................................. x LIST OF APPENDIX ............................................................................................................. xi ABSTRACT ............................................................................................................................ xii CHAPTER ONE ...................................................................................................................... 1 INTRODUCTION ..................................................................................................................... 1 1.0 Introduction ................................................................................................................. 1 1.1 Background to the Study ............................................................................................. 1 1.1.1 Historical Perspective ................................................................................................. 1 1.1.2 Theoretical Perspective ............................................................................................... 3 1.1.3 Conceptual Perspective ............................................................................................... 3 1.1.4 Contextual Perspective................................................................................................ 4 1.2 Statement of the Problem ............................................................................................ 5 1.3 Purpose of the Study ................................................................................................... 6 1.4 Specific Objectives ...................................................................................................... 6 1.5 Research Questions ..................................................................................................... 7 1.6 Research Hypotheses................................................................................................... 7 1.7 Scope of the Study....................................................................................................... 7 1.7.1 Geographical Scope .................................................................................................... 7 1.7.2 Content Scope ............................................................................................................. 7 vi 1.7.3 Time Scope .................................................................................................................. 8 1.8 Significance of the Study ............................................................................................ 8 1.9 Definition of Key Terms ............................................................................................. 8 CHAPTER TWO ................................................................................................................... 11 LITERATURE REVIEW ........................................................................................................ 11 2.0 Introduction ............................................................................................................... 11 2.1 Theoretical Review ................................................................................................... 11 2.2 Conceptual Framework ............................................................................................. 13 2.3 Review of Related Literature .................................................................................... 13 2.2.1 Access to Agricultural Credit and Agricultural Productivity ................................... 19 2.2.2 Level of Agricultural Productivity in relation to agricultural credit among Farmers ……………………………………………………………………………………21 2.2.3 Relationship between Utilisation of Agricultural Credit and productivity among farmers ...................................................................................................................... 27 2.3 Research Gap............................................................................................................. 28 CHAPTER THREE ............................................................................................................... 30 METHODOLOGY .................................................................................................................. 30 3.0 Introduction ............................................................................................................... 30 3.1 Study Area ................................................................................................................. 30 3.2 Topography ............................................................................................................... 30 3.3 Research Design ........................................................................................................ 30 3.4 Target Population of the study .................................................................................. 31 3.5 Sample Size ............................................................................................................... 31 3.6 Sampling Technique .................................................................................................. 31 3.7 Data Collection Procedure ........................................................................................ 32 3.8 Data Collection Instruments ...................................................................................... 32 vii 3.8.1 Validity of the Instrument .........................................................................................