The aquaculture financing gap: Understanding fish farmers' needs in Oyo State Nigeria

This study examines the demand for credit facilities among fish farmers in Oyo State, Nigeria, focusing on the socio-economic and institutional factors influencing borrowing behaviour. Primary data were collected from 120 fish farmers selected from 10 rural communities using structured questionnaires, focus group discussions, and in-depth interviews. Descriptive statistics and a binary Logit regression model were employed for analysis. Results show that commercial banks and cooperative societies are the primary sources of credit, while money lenders charge high interest rates exceeding 20%, despite their ease of access. The Logit regression results indicate that age, marital status, education level, gender, household size, credit availability, repayment terms, and farm size significantly influence credit demand. Farm size exhibits a negative and significant relationship with borrowing behaviour, suggesting that larger farms rely more on internal financing, while smaller farms face liquidity constraints. Flexible repayment schedules and improved credit availability significantly increase borrowing propensity, underscoring the relevance of credit rationing and agricultural household decision-making frameworks. Major challenges identified include bureaucratic lending procedures, stringent collateral requirements, high interest rates, and poor lender–borrower relations. The study recommends aquaculture-specific credit products, reduced administrative bottlenecks, and repayment schedules aligned with aquaculture production cycles to enhance financial inclusion and sustainable fish farming in Nigeria.