ECONOMIC ANALYSIS OF RICE MARKETING MARGIN IN ADANI UZO-UWANI LOCAL GOVERNMENT AREA OF ENUGU STATE, NIGERIA

Antimicrobial effects of extracts of orange peels and ginger on local clinical isolates

Abstract

A noticeable potency of many species of plants present against bacterial and fungal pathogens. Bacterial resistance against antibiotics is consider one of the common problems in the medical world, so one of the most important steps in microbiological researches is to find a new antimicrobial compound with minimal side effects. So the aim of this study is to investigate the antimicrobial activity of Citrus sinensis (orange) peel aqueous and organic solvent extracts on some medically important animal pathogens and to determine some phytochemical compounds to be recycled to added in animals ration. Hot and cold aqueous in addition to ethanol extracts of Citrus sinensis (orange) peel were evaluated for their antimicrobial activity against some medically important pathogens isolated from animals and poultry farms (Staphylococcus aureus, Escherichia coli, Pseudomonas aerogenes, Bacillus cereus and Candida albicans) by agar well diffusion method. Both hot, cold aqueous and ethanol peel extracts showed high antibacterial and antifungal effect against the all examined pathogenic samples. Also, phytochemical compound of aqueous and ethanol peel extracts were determined, results of the chemical tests explain the extracts of Citrus sinensis (orange) peel contain alkaloids, flavonoids, tannins and saponin compounds while glycosides not found. So it could be concluded that the Citrus sinensis (orange) peel extracts possess remarkable antibacterial activity against gram positive and gram negative bacteria in addition to its antifungal activity against Candida albicans and to be introduced as an alternative to chemical antimicrobial drugs, is required wider investigation also ecologically as recycling of fruits peel can be used as food additive in animal ration

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ABSTRACT

 

Fadama farming has contributed significantly to Nigeria’s agriculture in particular and the country in general, but the contributions have remained largely unmeasured.  As a result, this study examined the influence of the National Fadama Development Project on Fadama farmers in Kano State. Primary and secondary data were sought.  A set of questionnaires was developed and information was collected from 108 respondents who were randomly selected from the three agricultural zones in the study area. Multiple regression analysis and simple statistical tools, such as, means, frequency, range and percentages were used to realize the objectives of the study.  Analysis of the data revealed that fadama farming was a profitable venture among the farmers studied.  A majority of respondents owned and purchased their farm land and the houses they lived in.  A large percentage also owned radio, television, bicycle and irrigation pump. Water from tube-wells and wash bores were used for irrigation and drinking. The customary land system was practiced in the study area.  About 46% of the respondents inherited their farm land while 26.9% purchased theirs. Majority of respondents practiced mixed cropping to ensure maximum plot utilization. There was efficient use of facilities provided by the loan package.  Inputs such as pumps, fertilizers, pesticides and insecticides were used by farmers.  Respondents also admitted adequate visit to farms by extension agents. There was a significant difference between the average income of the two groups (beneficiaries and non-beneficiaries) at a probability level of 95%. Some constraints, such as, high cost of farm inputs, chronic shortage of petrol and petroleum products, seasonal glut of some perishable agricultural commodities, poor storage facilities, poor access roads to Fadama areas and difficulties in getting registered as  members of Fadama Users Association (FUA), were experienced by respondents. Recommendations included subsidization of prices of fertilizers and other farm inputs, frequent conduct of soil survey to determine level of salinity, creation of more micro credit facilities to enhance productivity and provision of infrastructural facilities.

CHAPTER ONE

INTRODUCTION

• Background Information

Agricultural production in Nigeria remains essentially traditional with cultivation largely undertaken at individual level using local implements (Abdullahi, 1983). This traditional method and the subsistence nature of agricultural production help in perpetuating the vicious cycle of poverty and restricting the farmer’s ability to embrace modern technology (Bala, 1992).  The food security situation in Nigeria has been deteriorating over the past 15 to 20 years.  Per capital food production has declined more than 15% in the past 20 years (UN, 1992).

As a way of boosting agricultural production, government introduced modern irrigation scheme in the country.  Although the concept of irrigation farming has been practiced in Nigeria for several decades, the introduction of modern irrigation is a government initiative.

Modern irrigation in Nigeria can be traced back to the pioneering efforts of Colonel Collins, a British Colonial officer who, after a survey of the irrigation potentials of Northern Nigeria in the 1900s, developed 243 hectares of land for irrigation.  This was followed in 1949 by the establishment of an irrigation division in the Ministry of Agriculture of the Northern Region with the main objective of initiating small-scale irrigation schemes (Dawakintofa, 1989).

Another major step in irrigation development in Nigeria was the Food and Agricultural Organizations (FAO) report of 1965, which stressed the need for the Federal Government’s active involvement in planned water resources and irrigation development for the country.  Consequent upon the Food and Agricultural Organization’s report, the Chad and the Sokoto Rima-Basin Development Authority was established by Decree numbers 32 and 33 of 14th August, 1973.Kano State Government,(1995). In 1976, the River Basin Development Authorities were expanded to eleven in number by Decree number 36 of 25th June and Decree Number 37 of 3rd August, 1976 (Dawakintofa, 1989).  These Authorities were charged with the responsibilities of constructing and maintaining dams, polders, wells, boreholes and drainage systems for irrigation purposes.  There was also the Bakolori Irrigation Scheme, which was established in consonant with the laid down guidelines for irrigation development (KNARDA Baseline Survey, 1993).

These schemes attracted generous funding from government.  Inspite of the enormous sum of money (2.25 billion) and the facilities provided, the schemes had limited success (Samorock, 1983). For instance, the total irrigated area proposed to be accomplished by the River Basin Development Authorities for the Nation was 1,999,139 hectares (Nwa and Martins, 1982).  But as at 1980, only 25,754 hectares had been developed.  Only about 77,369 hectares were expected to be developed by 1991 (Abdullahi et al, 1989).  This is about 4% of the total land meant for development.  Salihu (1986) and Dawakintofa (1989) attributed the limited success of the early irrigation schemes to the fact that the plans were developed without much consideration of economic and social problems.

“Fadama” is an Hausa word meaning low-lying swamp area consisting of fluvial deposit and containing extensive exploitable aquifers” (Gandi and Radashekara, 1989).  Fadama also refers to a seasonally flooded area used for farming during the dry season.  It is defined as an alluvial, low land formed by erosion and depositional action of the rivers and streams (Qureshi, 1989).  The extent and subsurface formation of the Fadama land depend on the terrain over which the rivers are formed and flowed.

They can also be referred to as flood prone, low lying, slow drainage areas that generally possess a finer texture and less acid soils.  Fadama lands are regarded as very rich agricultural areas.  They encompass land and water resources that could easily be developed for irrigation agriculture (World Bank, 1992).  In Nigeria, this type of rich irrigable land can be found along the flood plains of the Niger, Sokoto-Rima, Benue, Nassarawa, Yobe and Hedejamaari river systems.  Fadama land covers about 4.9 million hectares in the country (BSADP, 1994).  It is therefore necessary to harness it in order to accelerate agricultural production.

Inadequate and uneven distribution of rainfall in the arid and semi arid North, prompted some state governments to initiate Fadama through small-scale irrigation system (Abdullahi and Phillip, 1989).  The enclave states, which pioneered the Programme, were Kano, Bauchi, Jigawa, Gombe, Sokoto, Zamfara and Kebbi.

The staff appraisal report (SAR) estimated that traditional irrigation was practiced in over 60,000 hectares of Fadama land of which 13,000 were cultivated for dry season vegetable production while the whole of it could be used for summer rice production under semi-controlled flooding, primarily in the Hedejia valley area (APMEU, 1991).

This Fadama development component, covering 27,400 hectares in Kano State, comprised; (i) Fadama intensification – bonding of run-off and using residual moisture to produce a second crop planted in September/ October on 14,700 hectares;   (ii) the use of wells (usually not exceeding 7m deep) and making 1,500, 3″ diesel pumps and 4,600 hand pumps available through the Kano Agricultural Supply Company (KASCO) to replace Shadoof and bring an incremental 6,800 hectares into production; and  (iii) improved flood irrigation of rice by bonding an estimated 5,900 hectares to allow two crops a year.

Incremental crop production achieved by these activities  amounted to 29 million annually up to the end of project life cycle of five years.  This technique was found to be cheaper than the large-scale system and more efficient than the traditional method of irrigation.  While small-scale irrigation costs US1, 000 ( 80,000) per hectare, large-scale irrigation scheme cost US10, 000 (800,000) per hectare all at the 1990 prices (World Bank 1992).   The small-scale irrigation scheme took off in Kano State in 1982 with loan effectiveness. The irrigation component started-off primarily with the introduction of extension services and the sale of pumps.

1.2     National Fadama Development Project

The Agricultural Development Projects (ADPs) has been identified as the most successful strategy towards agricultural development in Nigeria (World Bank, 1992).  The system, which consists of several sub-programmes and its related components, is specifically designed to address the small holder sub-sector in its agricultural development efforts.  One of such sub-programmes/components is Fadama development (KNARDA Baseline Survey, 1997).  This small-scale, low cost, farmer managed irrigation Fadama programme had been adjudged successful initiation of the agricultural development project system (World Bank, 1992).

Evidence showed that, there existed great potentials for Fadama development of which only about 7% was then being exploited (SAR, 1990 NFDP).  It was in realization of this that the Federal Government of Nigeria (FGN) in 1991, requested a World Bank loan of US67.5 (N536.00) million to finance a project for developing Fadama lands (flood plains) by introducing small-scale irrigation.  The loan was to assist Fadama Development projects in states meeting pre-determined eligibility criteria.  The project is currently being implemented in Kano, Bauchi, Jigawa, Kebbi and Sokoto States which have pioneered Fadama development.  These facilities were expected to assist beneficiary states consolidate pilot Fadama Development Projects by;

(i)         financing the provision of shallow tube wells in Fadama land for small-scale irrigation;

(ii)        constructing about 7,000 wash bore, tube wells in Kano State through private contractors;

(iii)       constructing Fadama Infrastructure based on the experiences of on-going Agricultural Development  Projects (ADPs), Fadama roads and storage facilities;

(iv)       formation of  institutional  development.  Fadama farmers would be organised into Fadama Users Associations (FUA).  The union would serve as a single contact points for services to farmers, and

(v)       providing planning assistance free-of-charge to interested farmers.

In order to ensure fair allocation of resources to eligible states, certain criteria were employed as measurement indicators to evaluate the performance of the Agricultural Development Projects (NFDP Baseline Survey, 1996). The proposed Fadama land to be covered under the National Fadama Development project in Kano State was 27,400 ha; out of a total of 163,000 ha of the main Fadama and their flood plains. The project is expected to benefit 430,000 farm families, cultivating an average of 2.8 hectares. The project intervention is expected to raise the assured project preliminary feasibility study yield of 2.0 for wheat to 2.5 t/ha and vegetables from 9.0 t/ha to 13t/ha, while rice, would increase from 2.5 t/ha to 3.5 t/ha (World Bank, 1992).   However, to assess the performance of the Fadama loan package, it is pertinent to make a cross comparison between the non-beneficiaries of Fadama loan with their counterpart beneficiaries.

 

1.3       Problem Statement

Successive Nigerian governments have initiated various agricultural and food production strategies to execute a wide range of agricultural programmes through irrigation agriculture but have failed to achieve their expectations to boost agricultural production (Salihu, 1986_i Gana, 1986).  Food output has been so  low that there is a widening gap between crop output and quantity needed (RMSMN, 1993).

In order to realise the dream of increased food production, the Federal Government identified small-scale, low-cost managed irrigation pilot scheme by the Agricultural Development Projects (ADPs) as the most efficient technique that can accelerate the pace of food production in the country.  To enhance the involvement of more farmers in the project, the Federal Government sought the assistance of the World Bank loan for a National Fadama Development Project.

Fadama loan package attracted both small and large-scale farmers in the loan disbursement process through registration with Fadama Users Association (FUA).  The programme operated on the basis of full-cost recovery with built in rebates which serve as incentive for prompt repayment.  Prevailing commercial bank lending rate was used.  The pilot scheme ended by September, 1998 and the scheme was extrapolated to the rest of the states in Nigeria.

 

1.4       Objectives of the Study

The broad objective of this study is to assess the influence of the National Fadama Development Project on Fadama farmers in Kano State.

The specific objectives are to;

• Ascertain the extent of use of facilities provided through the loan package by beneficiaries;
• compare the crop output, farm income, farm size and labour use of beneficiaries and non-beneficiaries;
• identify the major problems of Fadama farming in the study area; and
• make policy recommendations for improving Fadama farming, based on findings.

 

1.5       Research Hypotheses

In line with the research objectives, the following null hypotheses were tested;

There is no significant difference between;

• the farm output, of loan beneficiaries and non-beneficiaries;
• the farm size of beneficiaries and non-beneficiaries and
• the farm income of beneficiaries and non-beneficiaries

1.6       Justification for the Study

The findings of this study will serve as a motivating force for non-beneficiaries of National Fadama Development Project loan to embrace the loan package. The outcome of the study will also enable both Fadama farmers and the loan beneficiaries (Fadama users association) to adjust positively to their farming activities to enhance optimal level of output.

A comparative study of beneficiaries and non-beneficiaries of the loan in Kano State will provide the opportunity for assessing the influence of the National Fadama Development Project (NFDP) loan scheme on Fadama Development. Information revealed by the study, with respect to loan patronage, increased Fadama cultivation and farm output will motivate participants and credit agencies resulting in a good base for the take-off of the second phase of the projects.

It is therefore anticipated that the findings of this investigation will serve as an information source for research scholars, policy makers and operator of Agricultural Sector for effective policy formulation and good management.

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Effect of Credit Acquisition and Repayment on Agricultural Production in Cross River State, Nigeria

 

ABSTRACT

This research was designed to study the effect of credit acquisition and repayment on Agricultural production in Cross River State. The major objective is to study the effect of credit acquisition and repayment on agricultural production in the state. Specific objectives included: determination of credit disbursement and recovery strategies of agricultural credit institutions, determining and comparing agricultural production among beneficiaries and non-beneficiaries of credit schemes, identifying factors that affect credit acquisition and repayment and to compare agricultural production among credit defaulters and non-defaulters.

The analysis was done with sample drawn from 120 farmers, 60 beneficiaries and 60 non-beneficiaries and credit officers in Cross River State, by the use of a multistage sampling technique and structured questionnaire, which felicitated information on farmers credit use, repayment rate, agricultural production of credit beneficiaries and non-beneficiaries, credits administration etc. Analytical tools used were descriptive statistics such as percentages, mean, frequencies, etc. to show the socio economic factors influencing credit acquisition and repayment in the state, multiple regression analysis was used to estimate the production function of both credit beneficiaries and non-beneficiaries and the chow test to determine the magnitude of the coefficient obtained from the two samples.

Cassava was used for the analysis of the production output of beneficiaries and non beneficiaries of credit because it is cultivated in the 3 agricultural zones and a staple food of the people. The mean output of the crop for both farmers taken from 3ha of land is 1520kg and 967.50kg respectively. The chow test result was 8.920 showing that the marginal effects of the regressors on the regressants vary. Findings showed that agricultural production is still of minimal output. Among other factors, the socio-economic characteristics of credit beneficiaries influence rate of repayment and for non-beneficiaries influence the acquisition of credit.

The study recommended among others that credit should be released to farmers during planting or stocking, Credit officers should reduce bureaucratic processes to encourage farmers to borrow credit and my key recommendations based on the study were:

–    Reduction of interest rate to at most 5 percent to get more farmers to borrow.

• Long gestation periods of up to two years should be given to allow the farmers prepare for repayment.

CHAPTER ONE

INTRODUCTION

 

1.1 Background Information

In spite of the fact that oil still accounts for our major revenue (gearing toward 80percent) and almost 100percent of our export earnings (C.B.N,2003), agriculture especially farming, forestry, livestock and fishing is shown to be the major activity of Nigerians (Chigbu, 2004). Regrettably, the trend performance has declined over the years. The sector growth remained at 5.8percent between 1990-1993, falling to 3.5percent between1997-1998 and worse still declining to an abysmal 1.8percent during the 1999-2001 periods (C.B.N, 2003). The agricultural sector is expected to have a growth rate of between 7percnt to 10percent, in order to have any meaningful effect on poverty reduction (Ekpo, 2004).

 

This ugly situation is attributed to poor and less resources utilization, as a result of lack of financial supportive measures like loans, subsidies, grants, etc toward agriculture (Chigbu, 2004). The contribution of agriculture to the gross domestic product (G.D.P.) shows an average growth rate of 2.6percent (C.B.N, 2003), a development not good enough for a sector employing about 70percent to 80percnt of Nigerians. Food supply situation is not favorable equally; it has been reported by the food and agricultural organization (FAO, 1994), that there is an average food deficit of 1.2percent, while the demand and supply of food stand at 3.7percent and 5percent respectively. This is why the World Bank (2003) data showed that more than 70percent of Nigerians live below poverty line, a situation that can be reversed through agricultural development.

 

The World Bank’s statement about Nigeria’s poverty level has not gone down well for a nation with abundant agricultural resources: different varieties of livestock and wildlife, an agricultural friendly climate, coastal and marine resources of over 960m shoreline and a large consumer market.

In Nigeria, agriculture is not practiced in a purposeful and enterprising manner. It is practiced more as a survival strategy, rather than as a business venture. This is attributed to low-income status of farmers, which makes them seldom able to accumulate capital goods required for purposeful and sustainable agriculture, causing their level of capacity utilization to be very low.

Availability of credit to farmers has been observed as one sure way of increasing agricultural output, through the improvement of efficiency and the expansion of production. Credit to farmers according to Olatumbode (1990) would assist in the following ways:

Procure new improved technology in agriculture, purchase high yielding and disease resistant crops, put more land into cultivation and organize the farm better and more purposeful.

Insufficient extension of production credit to farmers according to Meyer (1986), is the more critical factor responsible for the declining agricultural production. There is a big gap between the demand for and supply of credit to farmers for agricultural activities. Problems faced by farmers in raising money for agricultural production is colossal, because according to Chidebelu (1983), commercial and merchant banks are reluctant to give money for agricultural production. The reluctance is due largely to the fact that agriculture is biological in nature, hence prone to risk.

The establishment of several credit schemes in Nigeria is intended to solve the problem of lack of credit to the agricultural sector. Efforts to encourage farmers in Nigeria with credit and other agricultural incentives have only given individuals with political loyalty to the reigning government access to exploiting the ordinary farmers. Such incentives usually get to the false farmers who use it for other non-agricultural activities.

Repayment of credit by farmers is a pathetic story; there is a general tendency of farmers not to repay credit. F.A.O (1994) asserted that the inability of small-scale farmers in developing countries to repay credit could be traced to imperfection of the delivery system, a host of institutional factors and to the farmers themselves. Some of these factors include: inadequate supervision and quality of supervisory staff, poor market outlets, poor management ability of the borrowers, poor selling prices, unsuitable disbursement procedures, wrong attitude of farmers towards credit (regarded as gift from government), natural disasters, etc. Problems of repayment also stifle further credit to farmers, since most agricultural credit recycles.

Small-scale farmers are supposedly potential beneficiaries of agricultural credit in Nigeria, but are hampered by their small peasant holdings found over wide remote areas which makes supervision by credit officers difficult (Eze, 1997). To reap the benefits of credit, information relating to sources of credit is required by farmers. Such information may include names of lenders, location and types of existing credit. They also need information on the terms of credit such as interest rate, credit amount and mode of repayment.

Credit institutions are the major source through which small-scale farmers can gain access to formal credit (Klonner, 2003); but the farmers are constrained by high interest rate and collateral. This development has informed successive Nigeria governments to initiate programmes and policies that would ensure adequate transfer of cheap credit to small-scale farmers (Nweze, 2001).   These programmes and policies have over the years given rise to.

• The Agriculture Credit Guarantee Scheme Fund (A.C.G.S.F) in April, 1978.
• The community Bank of Nigeria (C.B.N) in 1990
• The Family Economic Advancement Programme (F.E.A.P) 1997
• Nigeria Agricultural, Co-operative and Rural Development Bank (NACRDB), which is the most recent.

 

 1.2 Statement of Problem

The performance of the agricultural sector in Nigeria, as in most other developing countries is low. According to Oliseh (1990) the problem of productivity in agriculture is majorly the unavailability of credit to farmers, which would have enhanced production. This is as a result of inaccessibility to credit facilities by small-scale farmers, who form the bulk of farmers in the country. The Cross River State government has over the years had as a policy thrust financial intermediation in agriculture. This has given rise to medium and soft loans, subsidies, grants, etc to farmers in the state, to aid farmers boost agricultural production (C.R.S News Bulletin, 2005). But the result of these financial intermediations is poor as agricultural production in the state is still marked by low output. How can farmers avail themselves of agricultural credit to facilitate taking advantage of developing entrepreneurship in farming?. Nwanna (2002) noted non-provision of financial services as one of the major constraints to small-scale enterprise development, particularly to increasing investment, production activities, etc.

Where financial institutions are found, there are always remotely located to the rural/small-scale farmers. The extension of credit facilities to farmers can only be done on provision of adequate and acceptable security. Farmers are constrained using their farmlands as security, because the land does not belong to a single individual, by the nature of land tenure system practiced, but by the whole community.

Repayment patterns by previous beneficiaries constitute another problem to credit acquisition. Problems of credit repayment are rampant among individual smallholder borrowers. This situation is exacerbated by the fact that government policies often exempt small credits from collateral (Arene, 1992). Low credit acquisition by farmers can also be attributable to high interest rate. Berger (1989) noted that high interest rate charged by formal and informal sources of finance scare farmers. A good lending policy of government is that which is capable of giving sufficient credit for the need of farmers and at affordable rates, for increased agricultural production. High interest rates often make farmers to divert credit to other non-agricultural uses, which they believe would give quick returns to investment.

Red-tapism in acquiring credit discourages small-scale farmers. Credit application forms are expected to pass through many tables and stages before final approval is given. Farmers are expected to provide guarantors, tax clearance receipts, passports initial deposit, etc, as well as the inspection of the security and claims by the credit officer, before the form is finally sent to the headquarters for approval. The process is rather cumbersome to the rural farmers, who may not be patient enough to wait for all these stages.

Repayment when due or non-repayment as a whole, causes lenders net returns to be low, hence affecting institutional growth, which often causes financial distress of such institutions. The result is that further credit disbursement to these institutions becomes discouraging.

Many research works have been carried out over the years about credit and farmers: Eneh (1996) worked on credit use, access and repayment. Credit needs, sources and uses was done by Ozougwu (2001), Ochai (2003) studied loan repayment and technical aid among farmers, etc. in all these works and many others related to this research problem, the aspect of how credit can be obtained and used efficiently, so that agreed repayment can be met for increased agricultural production, is either omitted or poorly stressed. The research study is prompted by these gaps, which it hopes to fill.

1.3 Research Objectives

The broad objective of this research is to study the effect of credit acquisition and repayment on agricultural production.

Specifically the study is designed to:

1. Determine credit disbursement and recovery strategies of agricultural credit institutions.
2. Access and compare agricultural production among beneficiaries and non beneficiaries of credit schemes.

• Identify the factors that affect loan acquisition by farmers.

1. Identify the factors that affect loan repayment by farmers.
2. Compare agricultural production among loan defaulters and non-defaulters.
3. Make policy recommendations based on the result of the findings.

 

    1.4 Research Hypotheses

Based on the study objectives, the following null hypotheses will be tested.

1. Loan disbursement and recovery strategies do not affect loan
2. There is no significant difference in output between farmers who use agricultural loan and those who do not use agricultural loan.
3. Factors that affect credit acquisition do not affect agricultural production.
4. There is no significance difference in output between credit defaulters and non-defaulters.
5. Socio-economic factors do not significantly affect credit acquisition and repayment.

 

• Significance of The Study

Credit to farmers in Nigeria where it is available for the purpose of increasing their agricultural output is a very difficult task. Eboh (1998) asserted that financial market failure also causes impediment in credit disbursement.

Credit repayment is the most important index of a credit scheme. This is because it ensures the continuity of the scheme. Credit repayment problems have significantly affected credit acquisition. Diversion of credit to non-agricultural activities and the biological nature of farming activities are identified by Murray (1994) as responsible for the default in credit repayment.

Research conducted to study the effect of credit acquisition and repayment on agricultural production in Cross River State, Nigeria would help formal and informal lenders know how and to whom credit should be disbursed. Farmers would also benefit from the study on how best to utilize agricultural credit.

Finally, the findings of this study will form a source of reference to students and researchers and a basis for further studies on related subjects

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