Analysis of Credit Constraints and Agricultural Productivity in Borno State

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Credit constraints limit farmers' ability to invest in productivity-enhancing inputs. This study analyzed credit constraints and agricultural productivity in Borno State. Data were collected from 220 farming households. Credit constraint status was determined using direct elicitation and indirect methods. Propensity score matching was used to estimate productivity effects. Results showed that 72% of households were credit constrained. Credit constrained farmers had 35% lower productivity compared to unconstrained farmers. Main sources of constraints included lack of collateral (65%), high interest rates (48%), and limited bank presence (42%). The conflict situation worsened credit access. Recommendations include developing collateral-free credit products and expanding mobile banking for agricultural lending.