ACCESSING THE EFFECT OF INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (IFAD) FINANCING ON AGROENTERPRISE CLIENTS IN UMUAHIA NORTH LOCAL GOVERNMENT AREA OF ABIA STATE, NIGERIA

Abstract

This study assessed the effect of International Fund for Agricultural Development (IFAD) financing on agroenterprise clients in Umuahia North Local Government Area of Abia State, Nigeria. The study's objectives were to: determine the socio-economic characteristics of agroenterprise clients, assess the level of credit demanded and received among agro-enterprise clients, and determine the type of agro practices adopted before and after IFAD credit was received. A random sampling procedure was used in selecting 60 agroenterprise clients for the study.  Data were collected using a well-structured questionnaire. Data were analyzed using statistical tools such as percentages, frequency distribution, and Agroenterprise Percentage Increase (AePI). The result showed that most of the respondents were male (52%), young (36 years), married (67%), and educated with moderate household size (4 persons per household). The mean amount of credit received (N 434,733.33), representing 66% of the respondents' credit portfolio, actually had the capacity to deploy financial resources into crop enterprises to generate the necessary financial returns that can offset their loans. Moreover, the mean performance of clients before IFAD financing was N 32586.51, while the performance of clients after IFAD financing was N 88283.33. This means that there was an increase of about 171% in the mean value of performance among clients after IFAD financing, showing that IFAD financing among clients was impactful. Furthermore, the majority of the clients adopted and intensified useful agro-practices that were cost-effective and eco-friendly. Future IFAD financing programs should prioritize experienced, educated, and cooperative-affiliated farmers for improved financial sustainability. 

Keywords: Agricultural Development, Financing, Agroenterprise, Clients