Quest Journals Journal of Research in Agriculture and Animal Science Volume 8 ~ Issue 3 (2021) pp: 25-30 ISSN(Online) : 2321-9459 www.questjournals.org *Corresponding author: Paradang P.S 25 | Page Research Paper Utilization of Informal Sources of Agricultural Credit among Crop Farmers in OFU Local Government of Kogi State, Nigeria Paradang P.S. 1 , Gosup, B. 1 , Oguche, P. 2 , Egbo B.N. 3 & Ikehi M.E 2* . 1 Department of Agricultural Science, Federal College of Education, Pankshin, Plateau State, Nigeria 2 Department of Agricultural Education, University of Nigeria, Nsukka, 410001, Enugu State, Nigeria. 3 Department of Agricultural Education, Enugu State College of Education (Technical), Enugu, Enugu State, Nigeria. ABSTRACT This study investigated the collection and actual utilization of informal sources of credit by rural farmers in Ofu local government area. Two research questions were formulated to guide the study. Survey research design was adopted for the study. The population for the study was 247,930 people, which is the estimated number of people living in Ofu Local Government Area of Kogi state. The sample for the study is 80 heads of crop farming families, obtained through multistage purposive simple random sampling technique. A structured 30-items questionnaire was developed and face validated by three (3) experts. The questionnaire had a reliability index of 0.78. The researchers and two research assistants physically distributed and collected the completed questionnaire for data analysis. The data was analyzed using frequency and simple percentage. Findings revealed a mismatch between the intentions of farmers before collection of credit facilities and the actual/final purpose of disbursement of the collected facilities. Recommendations were made inline with findings to guide the farmers, especially with the rising in the sourcing of credit facilities from informal sources in the area. KEYWORDS; Credit facility; Repayment, Sources; Farmers, Ofu LGA. Received 20 Mar, 2021; Revised: 02 Apr, 2021; Accepted 04 Apr, 2021 © The author(s) 2021. Published with open access at www.questjournals.org I. INTRODUCTION The place of agriculture in development of Nigeria and the entire African countries is well acclaimed in literature. The agricultural sector has been an important component of most countries economy, even in the Nigerian economy with peasant farmers producing over 90% of available food in the country and 70% of the labour force relying on this sector (Ikehi, Ifeanyieze & Onu, 2021). It does not only provide food, clothing materials and shelter but also provides employment opportunities for over seventy-five percent of the people (Ikehi, 2014). Agriculture provides raw materials for industries and market for industrial goods as well as provision of income and foreign exchanges through external trade (Aryeetey, 2001; Ifeanyieze, Alkali, Okoye & Ikehi, 2016). However, indications are that credit to fund agricultural activities are barely available to (rural) farmers (Fakayode, Adewumi, Salau & Afolabi, 2009; Campero & Kaiser, 2013). In order to make funding available to farmers, successive governments in Nigeria established several formal sources of credits for the farmers, such the establishment of the Bank of Agriculture. One of the main objectives of the bank was to make credit available to farmers at macro and micro levels. The government also mandated commercial banks in Nigeria to give credit facilities to farmers in order to expand the scope of farm operations, encourage the adoption of new technology, enhance optimal use of farm inputs and increase agricultural production thus, increase attainment of food self-sufficiency (Balogun & Alimi, 2003; Chukwuone & Agwu, 2005; Ekenta, Onu, Ezebuiro, Ikehi, Omeje & Ibekwe, 2019). In spite of the importance of loan in agricultural production, the process of loan acquisition, terms and agreement, loan components, disbursement plans and repayment plans, farming experience, farm size, gross farm income, interest rate, timing and recently the factors of climate change are issues limiting farmers’ access to agricultural credit (Eze & Ibekwe, 2007; Oladeebo & Oladeebo, 2008; Nchuchuwe & Adejuwon, 2012; Ibitoye, Omojola, Omojeso & Shaibu, 2015; Ijioma & Osondu, 2015; Ifeanyieze, Alkali, Okoye & Ikehi, 2016; joel, 2017). Poor access to formal sources of credit led farmers to focus on sourcing credits for agriculture from informal sources such as family and friends, corporative societies, thrifts, money lenders and produce buyers, among others (Oladeebo & Oladeebo, 2008; Udoh, 2008; Yuan & Gao, 2012; Sambe, Korna & Abanyam, 2013;