Microcredit Access and Rural Household Livelihood Outcomes in Ipokia Local Government Area, Ogun State, Nigeria.

Abstract

This study examined the association between microcredit access and rural household livelihood outcomes in Ipokia Local Government Area of Ogun State, Nigeria. Data were collected from 100 rural households using a structured questionnaire. Descriptive statistics, and multiple regression analysis were used to analyse the data. The findings showed that respondents were predominantly male (64%) and married (75%), with a mean age of 42.53 ± 11.84 years, farming experience of 15.91 ± 8.09 years, household size of 5.33 ± 3.38 persons, and farm size of 2.08 ± 1.46 ha. Informal financial institutions constituted major sources of rural credit, with relatives, friends and Esusu groups accounting for 33.0% of reported sources, followed by cooperative societies (27.0%), while only 5.0% obtained loans from commercial or microfinance banks. The regression results showed that education (B = 0.087, p = 0.006), farm income (B= 0.294, p < 0.001), loan amount (B = 0.321, p < 0.001), cooperative membership (B = 0.215, p = 0.024), farming experience (B = 0.064, p = 0.009), and access to credit (B = 0.356, p < 0.001) had significant positive associations with rural household livelihood outcomes. Age and household size had significant negative associations with livelihood outcomes. The study concludes that microcredit access and selected socio-economic characteristics are significantly associated with rural household livelihood outcomes. It recommends strengthening community-based financial institutions, simplifying formal lending procedures, integrating financial literacy with agricultural extension services, and promoting inclusive rural financial policies to support household welfare and sustainable rural development.