African Journal of Fisheries Science ISSN 2375-0715 Vol. 8 (10), pp. 001-009, October, 2020. © International Scholars Journals

Full Length Research Paper

Economic viability for the use of microfinance bank loan on aquaculture development in Ogun State, Nigeria

Olaoye, Olalekan Jacob1* and Odebiyi, Oluwaseun Christianah2

1Agricultural Media Resources and Extension Centre, University of Agriculture, P. M. B. 2240, Abeokuta, Ogun State, Nigeria.

2Department of Aquaculture and Fisheries Management, University of Agriculture, P. M. B. 2240, Abeokuta, Ogun State, Nigeria.

Accepted 17 August, 2020

Abstract

This study examined the economic viability of the use of microfinance bank loan on aquaculture development in Ogun state, Nigeria. The simple random sampling technique was used in selecting eighty aquaculturists that provided the primary data used in this study. The primary data were collected with the aid of well-structured, validated and pre-tested sets of interview schedules, administered through personal interviews and observations, so as to elicit the required information from the targeted loan users and were analyzed using descriptive, budgetary analyses and profitability ratios. Results showed a mean age of 47 and 43 years for beneficiaries of microfinance bank loan and non-beneficiaries respectively, while 57.5 and 42.5% had secondary education and an average household size of 5 persons, their vast experience in fish farming (13 and 12 years) has been a facilitating factor in productivity improvement in the localities. Gross margin of N27,461.48 and N59,030.31; benefit cost ratio of 1.58:1 and 6.9:1 shows that, aquaculture was profitable and viable. Findings concluded that, aquaculture is a profitable business with a high return on investment; therefore adequate policies should be made to ensure that the interest rate is subsidized for increase in the supply of animal protein source.

Key words: Economic viability, microfinance bank loan, aquaculture development, Nigeria.