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

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.