CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
The agricultural sector was the main economic pillar in Nigeria prior to the
discovery of crude oil. It significantly contributed to the GDP, individual income,
national income, food production, food security, and employment opportunities for
rural communities. It appears that the nation exported groundnuts, cocoa, rubber,
cotton, and palm oil to nations in Europe (Tinuke & Joseph, 2018). According to
Evbuomwan and Okoye (2017), the current state of affairs in Nigeria is marked by
several administrations' attempts to give agriculture top priority within the nation's
economic framework. The agricultural industry is the main employer and a major
source of income generation and poverty alleviation in emerging countries like
Tanzania, Brazil, and Nigeria. A significant segment of the populace depends on
agriculture as their primary source of income and stability. Over 70% of Nigeria's
rural population depends on the agriculture sector for their income and subsistence,
according to Ayinde et al. (2018). This means that the sector is vital for both
employment opportunities and a means of subsistence. Furthermore, it is
mentioned that although though smallholder farmers in Nigeria account for 80% of
total agricultural production, their per capita income is low since they have little
access to agricultural financing. Furthermore, they claim that Nigerian rural
farmers' productive capacities have been severely limited by the prohibitive costs
of acquiring and maintaining agricultural capital. Conversely, Ayinde et al. (2018)
contend that the oil boom was predicted to be a boon for the nation, offering a
chance to forge a solid base and pursue real growth via economic diversification
and the bolstering of important industries like consulting, entertainment, real
estate, and agriculture.
Unfortunately, the oil industry has taken precedence over other viable industries in
the Nigerian economy. The agriculture industry has suffered greatly as a result of
this disregard, continuously experiencing declines. Consequently, productivity has
dropped and imports of staple items including rice, wheat, sugar, and flowers have
increased dramatically. Furthermore, there has been a notable outflow of foreign
currency. A document released in 2016 by the Central Bank of Nigeria states that
the cost of importing staple items in the third quarter of the 2010 fiscal year was
$1.23 billion, of which $1 billion was spent on importing rice alone. Despite
Nigeria's ability to cultivate these same commodities domestically, Ayinde et al.
(2018) emphasised that the country is engaging in a prodigal consumption pattern,
spending millions of dollars on the importation of rice, wheat, sugar, flowers, milk,
sorghum, and other commodities from Thailand, India, and China. Nigeria is
mostly dependent on imports from China, India, and Thailand to supply the
demand for staple goods due to low productivity in local production. Nigeria is
unable to produce enough goods for internal consumption, therefore its reliance on
other nations has resulted in the country spending a large amount of foreign cash
(Idrisa et al, 2010).
Apart from the noteworthy influence of imported staple foods on agricultural
expansion, the excessive costs of farming inputs such as fertilisers, seeds, and
seedlings, agro-chemicals, tractor rentals, poor post-harvest marketing systems,
crumbling roads and infrastructure, inadequate storage facilities, and
underutilisation of agro-allied processing companies deterred local farmers from
pursuing commercial farming. The inability to get financing facilities and essential
farming equipment impedes rural farmers' ability to enhance their standard of
living. Smallholder farmers are thereby confined to a cycle of subsistence farming
with little room for expansion in terms of both farm size and productivity (Okeke
et al., 2019). According to Ayinde et al. (2018), low public investment in
agricultural practices, high interest rates (often in double digits) charged by
commercial banks on loans, and the requirement of security collateral before rural
farmers can access agricultural loans are all contributing factors to Nigeria's
backwardness and reliance on subsistence agriculture.

Nigeria's economy has lately grown significantly, but at the same time, severe
poverty, long-term unemployment, and inequality have all increased. Particular
effects of these problems have been shown in the areas of social security,
undernourishment, rural-urban migration, and rural society deterioration.
According to Nwoye (2018), Nigeria faces a serious risk of a rural unemployment
crisis if job creation does not keep up with the present rate due to the country's
growing population. In order to keep inequality and unemployment under control,
some 15 million new jobs must be created between 2011 and 2020. She thus
suggests that fiscal and monetary policies be put in place to address Nigeria's
agricultural problems in order to avert a disaster.
The anchor borrowers' program was created by the Central Bank of Nigeria (CBN)
to alleviate the agricultural difficulties that Nigeria's rural communities faced.
According to Evounwan and Okoye (2017), the purpose of this project is to
leverage value chain addition, encourage the use of processing enterprises, and
offer low-interest agricultural loans to rural farmers as effective economic
strategies for rural transformation.Ayinde et al. (2018) state that, taken as a whole,
the program is a well-run and workable model of agricultural production that aims
to help small-scale farmers, reliable mill processors, and financial institutions
boost productivity, increase the supply of raw materials to agro-processing
companies, and solve the problem of the balance of payments, especially with
regard to staple foods. This dissertation was greatly inspired by the anchor
borrowers' program's amazing achievements, which exceeded previous
government-implemented initiatives both in Kebbi State and throughout Nigeria.
1.2 Research Problem Statement
The bulk of crops and animals used for domestic and industrial purposes in Nigeria
are produced by smallholder farmers, who make up the country's agricultural
workforce. Nevertheless, a number of agricultural efforts from previous
governments have failed to address the significant challenges that rural farmers
face today. A number of noteworthy initiatives that have been put in place to
support Nigeria's agricultural growth are described in the Rank (2010) report.
These include, among others, the Agricultural Development Projects (ADPs) and
National Fadama Development Projects (NFDP), the Green Revolution started by
Shagari, the Directorate for Food Road and Rural Infrastructure (DFRRI) headed
by Babangida, the National Accelerated Food Production Programme (NAFPP)
during the Gowon regime, and Operation Feed the Nation (OFN) under Obasanjo.
The interventional programs brought hope to rural farmers by giving them access
to funds and extension services. But these initiatives fell short of adequately
addressing the fundamental problems of rural agriculture.
The anchor borrowers' program was introduced by the Central Bank of Nigeria as
a paradigm change and alternative approach to assist smallholder farmers in
producing certain commodities, with an emphasis on rice farming. The necessity
for economic diversification, the shortcomings of earlier agricultural development
initiatives, the over-reliance on crude oil revenue, the excessive importation of
staple foods, and the rising rates of poverty served as the driving forces behind this
endeavour. In Yauri LGA, Kebbi State, Nigeria, the study is to examine the effects
of the Anchor Borrowers' Programme on rural development. Significant progress
has been made in rice production as a result of this initiative, which has also
improved the economic standing of smallholder farmers, guaranteed food security,
and decreased the need to import staple foods. It has also been extremely important
in reducing rural poverty. The study also aims to close the current research gap in
the field's understanding of this program.
1.3 Research Questions
This research dissertation offers the following responses to the research inquiries:
What are the specific advantages that smallholder farmers (SHFs) in Yauri LGA of
Kebbi State are gaining from the Anchors Borrowers' Programme?
Does access to loans have an impact on the performance of the Anchor Borrowers'
Programme in Yauri LGA of Kebbi state?
What is the importance of the extension service provided by the Anchor
Borrowers' initiative in enhancing agricultural productivity among smallholder
farmers in Yauri LGA?
To what degree has the anchor borrowers' program enhanced the income and
livelihood of smallholder farmers in Yauri LGA, Kebbi State?
1.4 Study Objectives
This dissertation seeks to achieve the following objectives:
i. Evaluate the advantages of the anchor borrowers' program for small-scale rice
producers in Yauri Local Government Area (LGA) of Kebbi state.
ii. The objective is to analyze the impact of loan accessibility on the performance
of the Anchor Borrowers' Programme in Yauri LGA, Kebbi state.
iii. To assess the impact of extension services on the enhanced production of rice
among smallholder farmers in Yauri LGA, Kebbi state.
iv. Evaluation of the program's impact on enhancing the quality of life for
smallholder farmers in Yauri LGA in Kebbi state.
1.5 Research Assumptions
The null hypotheses in this dissertation were derived from the study goals. The
study examines the relationship between the independent variable, the Anchor
Borrowers' Programme, and the dependent variable, Rural Development. To test
the different hypotheses, four hypothetical statements were created.
H01: The Anchor Borrower Programme does not have a substantial impact on the
expansion of rice production capacity among smallholder farmers in Yauri LGA in
Kebbi State.
H02: The availability of loans does not have a substantial impact on the
performance of the Anchor Borrowers' Programme in Yauri Local Government
Area of Kebbi State.
H03: The extension service provided by the Anchor Borrowers Programme does
not have a substantial correlation with the growth in rice production in Yauri LGA,
Kebbi State.
H04: The Anchor Borrowers' Programme does not have a substantial impact on
enhancing the living conditions of the farmers who are part of the research region.
1.6 The Importance of the Study
An examination of the Anchor Borrowers' Programme (ABP) as a modern
agricultural development approach is provided in this dissertation. It focusses on
how the program affects Nigeria's rice producing industry's profitability and
success, with a particular focus on Kebbi State. In addition to acting as an ABP
pilot state, Kebbi State is Nigeria's model rice-farming state. The research is still
relevant now since the leadership is actively developing plans, programs, and
policies to diversify and revitalise Nigeria's economy. Prioritising the agriculture
sector will help to increase food supply, maintain security, and make substantial
developmental progress.
This study is also very important for other federation states who want to increase
their Internal Generated Revenue (IGR) and create jobs by utilising the special
agricultural potential of their rural areas. Kebbi State is similar to states like Niger,
Kwara, Kogi, Kaduna, Plateau, Taraba, and Benue in terms of topography, soil
texture, climate, and vegetation. These nations would have profitable opportunities
to cultivate agricultural commodities in which they are comparative winners if the
Anchor Borrowers' Initiative was put into action.
Furthermore, the study's significant contributions to the expansion and
improvement of existing information make it noteworthy. By providing actual data
and findings on the program's major impact on supporting rural socio-economic
change, creating jobs, reducing poverty, and boosting agricultural investment, it
will also fill a research need. It will also draw attention to the program's primary
implementation flaws and difficulties in order to make any necessary changes. But
the suggestions that follow from this study will stimulate new questions to ask or
theories to put up for more research in the future when it comes to generalising
about rural development.
The precise parameters and breadth of the research are referred to as the study's
scope. It lays forth the guidelines that will govern the conduct of the investigation.
The limits or restrictions that might have an impact on the research, such as those
related to time, resources, or data access, are referred to as the study's limitations.
The study looked at how the anchor borrowers' program affected smallholder
farmers' advancement in Yauri LGA, Kebbi state, Nigeria, and what effects that
had on them. The main focus of this dissertation is on how the Anchor Borrowers'
Programme has affected rice farmers in the Yauri Local Government Area's rural
communities of Yabo, Rukubulo, Pissaabu, Jalbabu, Gumbi, and Hinanbiro. The
majority of rural farmers in Yauri LGA, Kebbi State, rely on rice cultivation for
their income, hence the rural villages were chosen for their outstanding
contributions to this sector.
The study focusses on the 2018–2019 wet planting season, when there was a
notable rise in rural farmers' involvement in the Anchor Borrowers' Program.
Smallholder farmers benefited from the ban on the importation of staple goods like
rice during this time. The field survey was completed in November 2019, after the
farmers had harvested their rice. It started in July 2018, when rice was planted.
Delineating the research on contact Smallholder Farmers (SHFs) and important
ABP stakeholders is therefore intended to make it easier for the required data for
experimental analysis to be accessed.
 CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Concept of Development
The notion of development may be explained in a variety of circumstances and has
varied meanings for different individuals. Development, in the words of Rath
(2017), is a process of social and economic change predicated on intricate
interactions between environmental and cultural elements. To end poverty,
unemployment, and social inequality, this calls for increasing human ability to
boost output and economic growth. However, Eme and Udoh (2014) contend that
the idea of development has proven difficult since several attempts by academics
and pundits to arrive at a consensus definition have been skewed by personal
biases and ideological preferences. Similar to this, Todaro (1981) views
development as both a physical reality and a mentality in which society uses a mix
of social, economic, and political processes to improve the lives of the vast
majority of its citizens.
Modernisation theorists, on the other hand, see development as the whole
transformation of society from traditional into technologically sophisticated
economies. Classical economists, on the other hand, see development from
economic or growth or income perspectives. Theorists of modernisation such as
Rostow (1960), Coleman (1968), Pye (1966), and others view development in
terms of economic expansion, improvements to structures and infrastructure, and a
country's ability to produce and grow its Gross National Product (GNP) and per
capita income for the good of society (Todaro & Smith, 2004).
Thus, development is the use of logical planning and management strategies to
guide and accelerate socioeconomic transition towards a better society, according
to the modernisation school of thinking. The main goals of the transformation are
to move citizens towards a higher level of life (Okolie, 2003).In opposition to
modernisation, researchers such as Seers (1969, 1977), Mabognuje (1981), Nnoli
(1981), Ake (1972), and Rodney (1982) (in Okolie, 2003) have disentangled the
vital role that human variables play in development processes. The World Bank
(2006) emphasises that while progress broadens human potential, it also limits
people's options for leading fulfilling lives. According to Rath's (2017) perspective,
development is a process that advances society and, as such, improves the quality
of life and living standards for any particular population.
Like the dependence school of thinking, the global economic systems and the
relationships between rich and poor nations are responsible for both the growth and
underdevelopment of individual countries. Contemporary nations consider
themselves to be the primary agents of development, rather than the market or the
private sector. Dependency theorists, according to Eme and Odoh (2014), contend
that advanced developed societies developed because of their relationships with
developing nations, which were forced to produce raw materials and consume
finished goods after being included into the global capitalist system. These nations
have the ability to set prices for unequal exchange rates and have historically been
underdeveloped before eventually achieving development.
Therefore, the state system offers the fundamental structure that individuals need
to advance in today's environment. The governments' ability to develop plans,
goals, and institutional structures to attain the objectives is one of the main reasons
Eme and Udoh (2014) claim that the states cause society to shift from the advanced
western countries to the emerging industrialised states of Asia. To assist citizens in
achieving progressive objectives, the state facilitates alliances with significant
social, political, and economic groups in society. Development improved the
standard of living, equality, and justice for the expansion and improvement of
society.
As a result, according to academics, development is conceptualised within the
framework of the Anchor Borrowers Programme (ABP) on rural development in
Yauri LGA, Kebbi State, Nigeria.
2.2 The Concept of Rural Development
varied researchers have varied conceptions of rural development depending on
their philosophical background, surrounding circumstances, and contextual
disposition. While Mabogunje (1980) views rural development as the broad-based
reorganisation and mobilisation of masses to successfully contribute in the day-to-
day activities of their existence, Hunter (1964) views rural development as the
"starting point of development" characterised by sustenance. According to
Ogunnowo (1997), the process of mobilising, using, and harnessing material and
human resources to improve a community's socioeconomic circumstances is
known as rural development. A well-planned and coordinated shift in the
production pattern is necessary for rural development in order to improve living
conditions and help communities become self-sufficient and sustainable.
Therefore, rural development is defined by the World Bank (2008) as the process
of reducing rural poverty and raising the income and productive capacity of rural
residents.
Nonetheless, rural development focusses only on a society's economic index,
which is one facet of advancement. Similar to this, Ijere (1990) defined rural
development as the process of enhancing the standard of living and income of rural
residents so they may take control of their own future. The enhancement of
people's living conditions in remote settlements via integrated efforts, both
quantitatively and qualitatively, is known as rural development (UNASED, 2004).
All things considered, rural development is a planned process that improves the
productivity, income, and living conditions of pastoral people via private initiative
or government support in the form of material help or policies. According to
Obinne (2010), rural development entails giving every person the chance to reach
their full potential via information exchange, education, capacity building, and
involvement in decisions that have an impact on them. The focus on rural
development also includes intentional initiatives made to reduce extreme poverty
in a community, generate wealth, improve agricultural productivity, and provide
job opportunities.
Therefore, by merging the notions of development, one may characterise rural
development as an integrated strategy for raising food production, providing
infrastructure, and fostering socioeconomic prosperity, all of which raise people's
standards of life. However, given that agriculture is the foundation of the rural
economy, it is arguable that agricultural output is a crucial component of rural
development (Abass, 1993). The idea behind the creation of the Anchor Borrowers
Program, an alternative strategy to achieving rural socio-economic transformation
through financial inclusion and extension services to the rural farmers, was
undoubtedly influenced by the understanding that rural development, especially in
developing nations like Tanzania, Ghana, and Nigeria, encompasses all efforts,
policies, and programs targeted at improving the productivity of the rural dwellers.
2.3 Major Rural Development Programmes of Nigeria
Nigeria saw the implementation of numerous rural development programs under a
variety of governments and administrations. The policies' main goals were to
eradicate poverty, encourage the acquisition of skills, create job opportunities, raise
the level of literacy, lower the poverty line, and raise people's standard of living,
among other things (Ayinde et al., 2018). However, the dissertation's literature
evaluations focused on well-known initiatives carried out by succeeding
administrations that attempted to halt Nigeria's problems with agricultural growth.
2.3.1 The River-Basins Development Authority
The River Basin Development Authority (RBDA) was created in 1976 by decrees
25 and 28, respectively, and it was further expanded in 1983. Adedipe (2002)
states that the River-Basin Development Authority's exclusive purpose was to
utilise the nation's river basins' water resources to improve the lives of its citizens.
The Tennessee Valley Authority, which dammed flooded areas for irrigated
farming, water navigation, and the production of hydroelectric power (HEP), is one
of the nations from whom the concept was taken. Additionally, in order to improve
the socioeconomic standing, per capita income, and level of life of the rural
population, the project was created to offer food items and food security through
irrigated farming with the production of crops throughout the year. In order to do
this, the program received a sizable allocation of funding from the Third National
Development budget. Adedipe (2002), however, points out that the RBDA
operations demonstrated the program's trickle-down strategy for rural
development, which has the following goals, among others:
i. Implementing development strategies for subsurface and surface water for
agricultural purposes and investments.
ii. Creates afforestation-based flood and watershed management plans to help
communities along rivers manage their erosion issues.
iii. Building and maintaining drainage systems, waterways, wells, boreholes,
dykes, and drainage systems to help rural communities advance agriculture.
iv. Creating lakes to provide a water reserve for farming, fishing, and animal
husbandry.
v. Reducing pollution in Nigerian rivers, lakes, lagoons, and creek communities.
Despite the fact that the authority abandoned beneficial projects in favour of
building massive dams, which reduced the program's funding.
2.3.2 The Agricultural Development Projects
The Agricultural Development Projects (ADPs) were first created in Malawi, East
Africa, to address the issue of severe poverty, according to Omonijo et al. (2014).
The initiative was an economic approach to support rural development,
emphasising infrastructure, improved input supply, and widely-adoptable
technology to expand agricultural production. The ADPs was a carefully planned
organisation with professionals on staff who were specifically hired to carry out
the organization's goals. According to Omonijo et al. (2014), three enclave projects
in Nigeria's northern region were the first to implement the ADPs idea there in
1974. In the settlements of Funtua, Gusau, and Gombe in the states of Bauchi,
Kaduna, and Sokoto, the pilot phase was conducted (Idrisa et al, 2010). The World
Bank and the Federal Government of Nigeria swiftly replicated the Agricultural
Development Projects throughout the states of Nigeria due to the early success
observed in the pilot states.
But between 1975 and 1980, the ADPs expanded from the initial three to nine
enclave programs, among which the Kebbi State Agricultural Development
Programme (KARDA) was established. To assist Agricultural Development
projects and related decision making, a Federal Agency named Agricultural
Projects Monitoring, Evaluation, Supervision and Planning Unit (APMESPU) was
formed (Omonijo et al., 2014). It was developed with certain aspects that had been
examined.On the other hand, the Agricultural Development Projects achieved great
success by offering better seeds, seedlings, and extension services to small-scale
farmers. However, the project was only able to record meagre successes due to its
inability to address issues related to rural development, such as extreme poverty,
inequality, disequilibrium, rural-urban drift, and unemployment rates. It also had
issues with project implementation, mismanagement of funds, inadequate
financing, embezzlement, and corruption.
2.3.3 Directorate for Food, Roads and Rural Infrastructure
According to Ekpo and Olaniyi (2010), General Badamasi Babangida, the former
president of Nigeria, established the Directorate for Food, Road, and Rural
Infrastructure (DFRRI) as a development program to improve the quality of life
and standard of living, particularly of the rural populace, by increasing crop
production. To achieve this, the following objectives were set on the following:
i. To build strong foundations for socioeconomic progress by making use of local
resources.
ii. To guarantee firmly established independence for growth predicated on
successful mass engagement mobilisation, first at the local level and subsequently
extending to the broader economy. In actuality, the initiative served as Nigeria's
transition to true rural development.
iii. To link farmers to markets, rural and urban centres, and rural communities,
DFRRI constructed rural highways. This is due to the fact that a deficient road
system was one of the major issues that farmers and farming as a whole faced
before the program was introduced.
According to the Raheem et al. (2014) research, the first phase of feeder road
construction or rehabilitation was finished in 1987, including 60,000 km of road.
Additionally, in 1990, 30,724.34 km of feeder roads were built, renovated, and
approved as satisfying the requirements outlined in the second phase of the
Directorate (DFFR) for rural development. In 1991, an additional 55,576.24 km of
country roads were built, and in 1992, 85,592.82 km of feeder roads were finished.
A significant accomplishment of the DFRRI was rural electrification, with 1107
localities having access to power by 1992.
2.3.4 The National Fadama Development Programme
After large-scale irrigation projects failed as part of the Agricultural Development
Programmes (ADPs) the nation pursued to boost food production, add nutritional
value, and ensure food security, the Federal Government of Nigeria established the
National Fadama Development Programme (NFDP) with a loan from the World
Bank. The National Fadama Development Projects, which are being implemented
in all 36 states of Nigeria as well as the Federal Capital Territory, Abuja, have
expanded through phases, with NFDP III now under completion, according to
Lawal (2014).
2.3.4.1 The First National Fadama Development Project
As a pilot project, the First National Fadama Project (NFDP I) was carried out in
Funtua, Gusau, and Gombe (1993–1999). Lawal (2014) asserts that the
International Development Association (IDA) Credit Facility, acting on behalf of
the World Bank, is endorsing the scheme. In cooperation with the Federal, State,
and Local Government Authorities of Nigeria as corresponding donors, the NFDP
I funded the initiative. According to Singh (1995), several intervention
development programs that have been implemented in Nigeria have not
significantly changed the country's agricultural landscape and have not produced
the anticipated increases in food production. Nigeria is endowed with sufficient
water resources and fertile land, which enable the National Fadama Development
Project (NFDP) to assist small-scale farmers in raising their output.
According to Douthwaite (2001), small-scale farmers are influenced by the
National Fadama Development Project (NFDP I) to justify their embrace of new
farming technologies, techniques, and increases in productivity and per capita
income. Nonetheless, the program's main goals are to gradually lower poverty,
provide employment possibilities, and promote agricultural growth.
2.3.4.2 Second National Fadama Development Project (NFDP II)
Second National Fadama Development Project adoption resulted from attempts to
boot producing farmers, according to Nwanchukwu et al. (2008) (NFDP II). Phase
1 of the National Fadama Project, or Fadama I, is followed by Fadama II.
Community Driven Development (CDD) was the approach used, with a focus on
social inclusion to enable rural residents to assume leadership of their own
development agenda. However, the project's main goal was to raise Fadama users'
earnings through the development of rural infrastructure, advising services,
capacity training, and the tenure of productive assets.
According to Lawal (2015), farmers who have benefitted from Fadama II
initiatives have seen an improvement in their income and productivity by the
halfway point; 2.3 million families have profited thus far. A total of 126,000
permanent jobs were generated for rural residents under the NFDP II, and most of
the participating states also saved an extra $40.8 million..
2.3.4.3 Third National Fadama Development Project
The third National Fadama Development Project (NFDP III) was carried out
throughout 36 states of Nigeria as well as the Federal Capital Territory, Abuja,
over a five-year period (2009–2013). The main goals of the project were to raise
the incomes and standards of living of those who utilise land and water resources,
to do so sustainably, to empower local community organisations (cooperatives) and
facilitate demand-driven investments, and to enhance productivity and land quality.
Community Driven Development (also known as CDD) is a bottom-up approach
used in NFDP III that enables associations or communities to create
comprehensive local development plans that address social, economic, and
financial issues. Under CDD, communities are in charge of creating, carrying out,
and maintaining local development plans, as well as overseeing, assessing, and
monitoring the subprojects that are prioritised in these plans. The initiative was
designed to help farmers who raised crops and animals, pastoralists, and hunters in
rural areas with their economic concerns.
The National Fadama Development Projects, ranked first through third, have not
been able to successfully handle the issues facing rural agriculture, while being
determined to have good effects on wealth creation, poverty reduction, and rural
development. Lawal (2015) contends that any program's effectiveness depends on
lowering the rate of poverty, raising wealth, and creating jobs for the populace—as
Fadama farmers continue to practise subsistence farming.
2.3.5 Agricultural Transformation Agenda
The Agricultural Transformation Agenda (ATA) is a development program
designed to improve food production, increase farmers' incomes, and improve the
standard of life for big, medium, and small-scale farmers as well as their families.
The previous Minister of Agricultural and Rural Development noted that the goal
of the ATA concept is to revitalise the various agricultural sector components
(Akinwumi, 2012: in Meludu et al, 2017). Through the adoption of mechanisation
technologies, product-based development strategies, extension systems, creative
research, and the development of simple/low-cost equipment to enhance food and
nutritional supply and security, jobs creation, achieve economic diversification,
and increase foreign earnings, the policy is expected to improve farmers'
production patterns (Obiora, 2014).
Therefore, the Federal Government of Nigeria (FGN, 2008) emphasised that the
agricultural sector has the potential to reduce poverty, increase employment
opportunities, and revitalise economic activities on the basis of strong institutional
and human capacity, which is central to planning to ensure quality food supply and
nutritional security for Nigeria through agricultural transformation agenda. Despite
the numerous programs and policies implemented by various administrations, the
agricultural sector has managed to remain underproductive and underperforming.
However, Meludu et al. (2014) identify three crucial sub-system strategies under
the ATA, including the knowledge/technology generating sub-system (which
consists of universities, research institutions, colleges of agriculture, and training
centres). The subsystem of technology transfer, which comprises private, non-
governmental, and public agricultural extension agencies. Additionally, there is the
utilisation sub-system, which is made up of farmers and farmers'
associations.However, ATA promotes investment from the public and private
sectors to boost rural and urban farmers' economic well-being and growth. A
stronger emphasis on value addition, enhanced marketing effectiveness, and rising
agricultural production are what led to the creation of the "anchor borrowers"
scheme.
2.3.6 Anchor Borrowers’ Programme (ABP)
The Anchor Borrowers' Programme (ABP), which was introduced by President
Muhammadu Buhari (GCFR) on November 17, 2015 in Kebbi State, was
established by the Central Bank of Nigeria (CBN) in accordance with its
developmental functions. It is similar to the farm contract concept, which has been
found to be effective in other developing countries like India, and aims to establish
a linkage between financial institutions, anchor companies involved in the
processing of agricultural products, and Smallholder Farmers (SHFs). The ABP's
thrust gives smallholder farmers cash for labour and farm materials in kind to
increase the production of a few key crops.
A part of the N220 billion Micros, Small, and Medium Enterprises Development
Funds (MSMEDF) has been set aside by the CBN, according to Tunike and Joseph
(2018), to fund agricultural projects at single digit interest rates not to exceed 9%.
This funding is used to assist the Anchor Borrowers Program, which finances
extension services, integrated miller capacity utilisation, and agriculture for small-
scale farmers. The Rural Institutional Development (RID) will provide guidance to
smallholder farmers. One of RID's main initiatives is to encourage farmers to
establish cooperative associations, which will provide them with important
information about loan procedures, market availability, and input application
(Obetta & Okide, 2011).
Even if small-scale farmers desire financial facilities, the majority of issues
pertaining to agricultural growth stem from rural farmers' limited access to these
resources and their inability to repay the loans they took out. Adetiloye (2012)
adds that when given proper supervision, rural farmers are prepared to accept and
repay loans. He continues by saying that financing facilities are crucial for
agriculture in order to satisfy the capital expenditure needs for increased output. In
a similar vein, Ugbajah and Orji (2006) emphasise that rural communities have a
greater need for agricultural finance to close the gap between agricultural produce
output and consumption.
As a result, in order to help farmers boost their outputs, the Anchor Borrowers
Programme (ABP) is a veritable development program that consists of plans,
policies, and coordination as well as farm management practices. Through the
provision of financial support, extension services, and inputs, the program aims to
address issues facing agriculture. According to Obinna and Itsibor (2019), the
ABP uses a financing model in which state governments, CBN, NIRSAL bank, and
anchor enterprises arrange for out-growers to cooperate under program contractual
conditions in order to provide loans and lessen the prevalence of side-selling. The
smallholder farmers receive loans from the financial institutions, which act as
actual conduits for the funds to help producers. Stakeholders included government
agencies, the Bank of Agriculture, the Rice Farmers Association of Nigeria
(RIFAN), and the Central Bank of Nigeria (CBN), which acts as a regulatory
authority, financial intermediary, and coordinator for the anchor borrowers
program.
Smallholder farmers in Yauri LGA are mostly engaged in the cultivation of rice,
but they also cultivate a range of other commodities, including groundnuts,
sorghum, millet, onions, and maize. This suggests that the purpose of
implementing the ABP is to combine the various farming practices used in the
research region. The borrowers' plan is undoubtedly assisting smallholder farmers
in utilising their comparative advantage to advance their farming expertise,
knowledge, and loan accessibility for higher productivity, as well as to leverage
value addition and market efficiency for the development of sustainable
agriculture. According to Ayinde et al. (2018), smallholder farmers are now
prosperous, milling companies are guaranteed raw materials and run at maximum
capacity, post-harvest losses are becoming a thing of the past, commercial banks
are getting their money back, jobs have been created, and the nation has food
security.
2.3.6.1 Objectives of the Anchor Borrowers’ Programme
The program's overall goals were outlined in a document called "The Anchor
Borrowers Guidelines" (CBN, 2016). It was based on three different types of
support, one of which is the "out-borrowers" scheme, which will directly assist the
participating farmers. Building the capacity of participating farmers and
stakeholders, such as extension agents, agro-input service providers, financial
institutions, and anchor firms, makes up the second component. PFIs must
participate in the program in order for the CBN to do so. The CBN will take on the
credit risk for the remaining debt and will absorb 50% of the amount in default
once the PFI has provided adequate proof that all available avenues for loan
recovery have been explored.
However, Tunike and Joseph (2018) emphasise that the following should be
included in the Anchor Borrowers Program implementation guideline:
i. Funds from the N220 billion MSMEDF would be sourced and distributed to
smallholder farmers with crop-specific tenors at a 9% interest rate.
ii. Targeted beneficiary identification and verification (farmers with 1-3 hectares of
varying cultivable land).
iii. Forming cooperatives with farmers that are connected to anchor businesses
iv. Certification and farmer training.
v. Farmers should open bank accounts after obtaining a Bank Verification Number.
vi. Town hall gathering to discuss issues with interested parties, including input
suppliers, farmers, CBN, ADPs, Participating Financial Institutions, Anchor, and
the Nigerian Agricultural Insurance Corporation (NAIC).
vii. Coming to an understanding on the main implementation modalities
(production economics, input supply, agreed-upon baseline price, payment
conditions, modalities for distribution, cross-guarantee by farmers, and default
penalties).
viii. Payment in cash and in kind to the farmers who will profit.
viii. Program direction and strategic monitoring (CBN, 2016).
2.2.6.2 Targeted Beneficiaries and Commodities of the ABP
The anchor borrowers program is aimed at smallholder farmers who produce
agricultural products. To ensure administrative efficiency, these farmers must form
cooperatives or groups with five to twenty members. Additionally, the program
will focus on commodities, such as rice, maize, wheat, and other cereals; cotton;
sugarcane; tree crops (oil palm, cocoa, rubber, timber, etc.); legumes (soybean,
sesame seed, cowpea, etc.); tomato; livestock (poultry, ruminants); fish; and any
other product that the Central Bank of Nigeria may occasionally introduce.
2.3.6.3 Essential Guidelines of the Anchor Borrowers Programme (ABP)
According to Evbuomwan and Okoye (2017), the anchor borrowers program's
fundamental rules encompass the following:
A) Repayment and Tenor: loans made to farmers who would profit from them must
be repaid with produced crops and must be delivered to the Anchor companies at
the agreed-upon collecting site. The primary loan amount and interest rate must be
covered by the produce supplied. The gestation period (the amount of time needed
for a crop, animal, poultry, or fishery to develop and be ready for market) will be
the loan term.
B). Capacity Building: To enhance their abilities and expertise, participating
farmers in the Anchor Borrowers Program are required to attend mandatory
training covering the following topics: i. Farming business.
Enhancement of agricultural methods.
Dynamics of group management (iii).
iv. Encourage young people to pursue entrepreneurship and agriculture v. Farmers
must contribute a minimum of 5%.
C). In order for farmers to be eligible for a loan facility, they must get certifications
from development associates, which will be provided by the anchor firms in
collaboration with them. These certificates must be paid for by the participating
farmers. To supplement the training, the anchor corporations and state
governments will also offer extension services.
D). Side sales of produce: Farmers who profit from the arrangement are not
allowed to sell their farm produce outside of it, and doing so would result in
penalties. These include putting the CBN placing the farmers on a blacklist for any
intervention program, prosecuting defaulters, and having the guarantors or
cooperatives pay back the loan. Infractions by other players, such as the
misappropriation of cash, the inability of anchor firms to obtain verified output
from farmers, and the inflating of contract numbers by Project Management Teams
(PMTs), are also subject to sanctions.
2.3 Theoretical Framework
Modernisation theory provided the theoretical foundation for the analysis that
explains how the Anchor Borrowers Program has affected rural development. The
process of human society's progress and underdevelopment is explained by
modernisation. According to Tinuke and Joseph (2018), the modernisation
paradigm created by Harvard sociologist Talcott Parsons (1902–1979) was based
on the theories of German sociologist Max Weber (1864–1920). The idea
examines a nation's internal dynamics while presuming that "traditional" countries
may be developed in the same way that more developed nations have through help
(Tinuke and Joseph, 2018). Thus, modernisation theory was described by Liner
(1958) as a process of change of which development is a component in his book
named "the passing away of traditional societies." He claims that modernisation
creates a social context that successfully incorporates increased per capita
production. According to Tinuke and Joseph (2018), modernisation is also defined
as a model of a society's gradual shift from a "pre-modern" or "traditional" society
to a "modern" civilisation. The theory examines the internal dynamics and
components of a society (state or community), based on the assumption that
"traditional" countries may be developed in a similar way as sophisticated nations
given support. In the 1950s and 1960s, modernisation theory dominated the social
sciences. It then fell into disuse, reappeared in the 1990s, although it is still
debatable today (Knobl, 2002).
The goal of modernisation theory is to pinpoint the social and economic factors
that influence societal dynamics and growth. According to Tinuke and Joseph
(2018), the theory describes social development as well as how people adapt to
change. The theory also examines the internal dynamics of newly developing
technology as well as social and cultural institutions. As traditional civilisations
embrace more contemporary customs, they will evolve. Modernisation thesis
proponents assert that states today are more powerful, wealthy, and allow their
subjects to live in more freedom. Modernisation theory is required, or at least
preferable to the conventional system, due to developments like new data
technology and the necessity to update existing ways in transportation,
communication, and agricultural systems (Tinuke & Joseph, 2018).
On the other hand, critics of the modernisation thesis struggle to support their
claims. It also suggests that the degree and pace of modernisation are determined
by human action. It is said that countries going through the modernisation process
usually end up with systems of government governed by abstract principles rather
than ones dominated by tradition. The hypothesis states that traditional cultural
practices and religious beliefs typically lose significance when modernisation gains
traction (Henry, 1971).
Some critics of the 1960s modernisation paradigm include globalisation and
dependence theorists, Marxists, and proponents of free markets. Among the well-
known detractors were academics such as Walter Rodney (1962), Immanuel
Wallerstein (1930), and Andre Gunder Frank (1929–2005). They contended that in
order to advance modernity, indigenous norms, customs, cultural values, and
agricultural methods must be destroyed and replaced with Westernisation
techniques. On the other hand, modernisation advocates usually feel that, in
comparison, only Western civilisation has undergone true modernisation.
According to that perspective, less developed cultures are inferior and primitive,
even if they have similar rates of economic growth, living standards, and
development as countries in the West (Lawal, 2015).
According to Aniwofe and Francis (2015), critics of modernisation theory contend
that modernity is culture-neutral and adaptable to any community. Both sides cited
Japan, China, Singapore, and India as examples. Some consider it as evidence that
a non-Western civilisation can support a fully modernised manner of life.
According to an alternative perspective held by researchers, the use of
contemporary production methods has led to a noticeable increase in
Westernisation in China, Japan, and India. The idea has furthermore come under
fire for excluding outside forces that influence social transformation. According to
Tipps (1973), the dichotomy of traditional and contemporary is unhelpful due to
the interconnectedness and tension interdependence between the two,
and'modernization' is not a singular entity.
Similarly, as the Industrial Revolution, the French Revolution, and the Revolutions
in Great Britain in 1848 all started in Europe and are long seen to have reached its
most advanced point there, modernisation theory has also been criticised of being
Eurocentric. The objection that anthropologists usually level at this point is that the
modernisation attitude is emotional and ethnocentric (Tipps, 1973).
The introduction of new agricultural practices, innovation technologies and
knowledge sharing (ICT), and credits support at lower interest rates for higher
productivity are the main tenets of ABP, so despite the aforementioned criticism,
the modernisation theory is still applicable to this study (Dori, 2016). Small-scale
farmers find it difficult, if not impossible, to secure the fundamental requirements
that would enable them to advance from substance farming to commercial
agricultural ventures in the wake of the launch of the Anchor Borrowers Scheme.
Small-scale farmers would benefit from the Anchor Borrowers Program's single-
digit interest loan rates, which would enable them to sufficiently carry out their
farming operations and provide the country with the essential foods. If not, a lot of
people who were interested in farming would lose interest after learning that crop
yield would be poor without financing.
However, in order to modernise agricultural practices, smallholder farmers must
have access to sufficient credit facilities, extension services, and new farming
technologies. They must also embrace training, innovations, and information
sharing, develop entrepreneurial skills, and use value chain addition and improved
farm management techniques to increase crop and food productivity. The use of
machinery (tractors, planters, harvesters, etc.) and the use of production
technology, appropriate application of agrochemicals, enhanced seedlings,
fertilisers, and disease and insect protection will all be more familiar to rural
farmers.Modern farming practices will undoubtedly boost the Anchor Borrowers'
Initiatives performance, market value, and productivity, which will likely inspire
young people to pursue it and lead to the creation of jobs that will meet
fundamental requirements, raise incomes, and lessen poverty.
2.4 Review of Empirical Studies
Researchers working on programs for rural agricultural development conducted
comparable studies to the one being conducted now.
A comparable research, titled Assessment of Central Bank of Nigeria Intervention
Program on Rice Production in Kwara State, was carried out by Ayinde et al.
(2018). The study collected data from both primary and secondary sources.
Primary data were gathered through questionnaires and interviews, while
secondary data were gathered from textbooks, journals, and related materials. A
sample of 160 respondents, both ABP beneficiaries and non-beneficiaries for the
2016 rice growing season, was selected from four villages in the Kwara State
LGAs of Edu and Patigi. The majority of ABP recipients, the study's findings
showed, neglected to send their farm produce to agro-processing millers. The
initiative raised the per capita income of the farmers who benefited by increasing
the average yields of paddy rice from 0.59 to 3.94 metric tonnes per hectare.
The current study, "Impact of Anchor Borrowers' Programme on Rural
Development of Yauri LGA, Kebbi State, Nigeria," is connected to this one. The
current study included primary and secondary data from textbooks, journals,
newspapers, structured questionnaires, interviews, and documents. A three-phase
sampling technique was employed, and 130 smallholder farmers and other
involved parties provided samples. starting with a purposeful random selection of
four communities, each with twenty ABP loan recipients. Comparatively to Ayinde
et al.'s (2018) study, the present findings reveal 88% of respondents in the study
area always delivered their farm produce (rice) to the milling companies in
accordance with the ABP agreement, strengthening the program's performance.
Data was analysed using descriptive and inferential analyses, and the results show
that average rice production in the study area is higher at 5.6 metric tonnes per
hectare as a result of the anchor borrowers' loans, extension service, and vast
farming experience of the smallholder farmers of Yauri LGA.
Comparably, Tinuke and Joseph (2018) investigated the implementation strategies
and effects on increased productivity, raised income, and decreased poverty among
smallholder farmers in their study on the impact of the Anchor Borrowers Program
on poverty alleviation in Argungu LGA, Kebbi State. Data from related papers,
reports, and official publications was obtained from secondary sources. The results
of the study showed that the support provided by the Anchor Borrowers Program
to smallholder farmers had a major influence on improving rural residents' well-
being, accelerating the rate of employment growth, and reducing poverty. Similar
to Tinuke and Joseph's (2018) study, the current study, "Impact of Anchor
Borrowers Programme on Rural Development in Yauri L.G.A of Kebbi State,
Nigeria," used questionnaires, interviews, and content analysis to gather data from
130 smallholder farmers and important agribusiness stakeholders. Because of the
methodology used for data collection and statistical analysis, the study's
quantitative and qualitative variables were precise. The results show that the ABP
loan raised productivity, helped thousands of rural farmers find jobs, and reduced
the number of people living in poverty.
The effect of the Fadama I project on rural farmers was the main goal of another
study project done in 2015 by Lawal and titled Perception of Influence of Fadama I
Project on the Socio-economic Status of Famers in Kebbi and Sokoto States. There
are 14,600 farmers in the study population, 400 of whom were specifically selected
from the states of Kebbi and Sokoto. The use of t-test analysis to test hypotheses
and interpret data regarding the projects' effects on small-scale farmers in contrast
to non-participant farmers, however, revealed that the improved technologies
brought about by the Fadama I project allowed the participating farmers to achieve
high yield production. The extension service made it easier for farmers to
understand how to apply fertiliser, pesticide, seeds, and farm management
techniques. Additionally, due of the previous years' bountiful crop of rice, it allows
smallholder farmers increase their yearly revenue by 65% and expand output by
purchasing additional land.
But according to the current study, "Impact of Anchor Borrowers Programme on
Rural Development in Yauri LGA, Kebbi State," the selected rural areas have
significantly influenced Nigeria's rice evolution. The current study used interviews
and questionnaires to gather data from a sample of smallholder farmers and
engaged stakeholders. The investigation found that there is little usage of the
technology transfer subsystem and poor extension service. Training, knowledge,
and information exchange to support the efficient use of contemporary farming
inputs, technology, and innovation for increased productivity and to strengthen
smallholder farmers' capacity in the event that the t-test calculation yields an
unacceptable result.
A related research, Impact of Agricultural Development Programmes (ADPs) on
Rural Dwellers in Nigeria: A Case research of Isan-Ekiti, Ekiti State, was carried
out by Omonijo et al. (2014). A multi-stage sampling procedure was employed to
pick 773 participating farmers at random, and questionnaires served as the major
source of data collection. ANOVA, regression analysis, visual representation,
graphical illustrations, percentage, frequency table, and chart distribution. The
study's conclusions show that the use of pesticides, better farmer-provided seeds,
an abundance of fertilisers and agrochemicals, the construction of new
infrastructure and social amenities by ADPs financing facilities, and other factors
all significantly affect the production of agricultural goods.
The influence of the Anchor Borrowers' Program on rural development in Yauri
LGA, Kebbi state, is the title of the current research. This study looks at how
extension services affect increasing input accessibility, farm growth, and complete
information use to boost rural farmers' productivity. The study employed scientific
methods to collect data, including interviews, questionnaires, and interpretive
descriptive and inferential analyses. Regression analysis and the t-test were used in
this work to investigate null hypotheses. The program for anchor borrowers has
enhanced farmers' productivity, per capita income, and well-being substantially,
according to the data.
A research titled "Agricultural Transformation Agenda (ATA) in Nigeria: How
prepared is the technology transfer-sub system?" was also conducted by Obiora
(2014).The purpose of the study was to review the agriculture program. Three
Directors of Extension were chosen, and data from three states (Abia, Anambra,
and Enugu) was collected using a standardised questionnaire. A total of 93
respondents were selected at random from the ADP workforce, and descriptive
statistics, means, and percentages were employed in the data analysis.
Obiora (2014)'s research findings demonstrated the significant benefit of increased
knowledge, input utilisation, and training. Based on earlier research, the researcher
concluded that, despite periodic adjustments, extension services as an intervention
were crucial in changing the agricultural sector by boosting productivity through
the use of new technology and innovation in farming investments. Moreover,
productivity and sustainability will rise with the provision of an enabling
environment and extension service for the sub-system.
Similar to this study, data was gathered from significant stakeholders and rural
farmers, revealing the value of extension services in helping farmers develop their
capability to improve their knowledge and capacity for innovation in order to boost
agricultural production. Obiora (2014) provided the target population count from
which he derived the sample size of 93 farmers and extension agents. He employed
multistage sampling procedures, which are also employed in this work. The study
came to the conclusion that the intervention had a high production return in terms
of agricultural development and had a good impact on the production and
socioeconomic standing of small-scale farmers.
Another research by Ahmad et al. (2014) looked at the socioeconomic impact of
loans on Pakistani farmers' day-to-day lives. Data was gathered from primary and
secondary sources including interviews, relevant documents, journals, etc. A
multiphase sampling method was employed to choose 120 participants. The results
demonstrate that having access to microfinance significantly improves farmers'
ability to produce and their standard of living.
This article discusses the current consequences of the Anchor Borrowers
Programme (ABP), which aims to help smallholder farmers increase their
production and, in turn, improve their standard of life and per capita income. The
instruments of questionnaires, interviews, diaries, and associated documents were
used to gather primary and secondary data. A multi-phase sampling method was
employed to choose 130 participants. Nonetheless, the results show that the ABP
loan had a beneficial effect on raising rice production capacity to 5.6 metric tonnes
per hectare, up from 2.7 MTs/ha prior to the anchor policy. Due to the farmers'
increased social and economic well-being, they are now able to build zinc homes,
buy televisions, and bring their kids to the doctor and school.
Another research, Effect of Training on Adoption of Improved Farm Practices by
Farmers in Ondo State, was carried out by Adebo and Ewuoba (2006). The link
between training and adoption of innovative farmers in Ondo State was examined
using a Pearson product moment analysis on a sample of 200 respondents who
participated in a structured interview. The outcome shown that the program's
trainings and the adoption of new innovations had a major impact on raising the
overall output of items made from maize, rice, and cassava. As a result, the farmers
could now afford to send their kids to school for a western education and seek out
therapeutic care. They now had access to things like motorcycles, electricity, tape
recorders, brick homes, bicycles, and televisions.
The current study is connected to the research conducted by Adebo and Ewuoba
(2006) since regression analysis was employed in both investigations to examine
the hypothesis. While the current study employed 130 samples out of 2,550
targeted populations of participating farmers and stakeholders, the previous study
used a total of 200 targeted sample size of small-scale farmers. According to
Adebo and Ewuoba's (2006) findings, their increased farming productivity was a
direct outcome of the instruction they got from extension programs. The current
study discovers that, with the help of training and the implementation of new
technologies, Anchor Borrowers has considerably raised the productivity of the
smallholder farmers that are involved.
A research named "Role of Fadama II project in improving rural livelihood in
Niger state, Nigeria" was carried out by Haruna (2010). He did not explain how he
determined the sample size of 150 farmers, which he utilised for the study. The
current study is comparable to Haruna's (2010) investigation on how an
intervention program affects Nigerian small-scale farmers' quality of life. When
compared to non-participants, Haruna (2010) found that Fadama II in Niger State
helped to improve the livelihood of the benefiting farmers because they had access
to new household items like televisions, brick homes, bicycles, healthy diets, and
the ability to send their kids and wards to better schools.
While 130 SHFs and collaborating stakeholders were the focus of the current
study, "Impact of Anchor Borrowers Programme (ABP) on Rural Development in
Yauri LGA of Kebbi State," Comparable to this study, Haruna (2010) investigates
three-phase sampling strategies; purposeful beneficiary choices from farming
communities and active players. The yield production of smallholder farmers has
improved in terms of employment, wealth generation, per capita income, and food
supply and security.
A related research, Impact of Agricultural Extension Practices on the Nigerian
Poultry Farmers in Ogun State, was carried out by Lawal et al. (2008). The
research evaluated the effect of loan facilities on Nigeria's Ogun State chicken
producers. The study's specific goal was to determine the techniques that the
extension organisation offered to chicken producers as an outside intervention in
the state and to encourage acceptance of the extended methods. It also noted the
difficulties faced by the study area's poultry growers. Using the instrument of
interviews with poultry farmers and relevant textbooks, data was gathered from
primary and secondary sources. A multi-stage sample strategy was used to pick
120 respondents in the Demo division of Ogun State. The frequency distribution,
percentage, and Chi-square (x2) methods of data analysis were employed to
ascertain the degree of association between the adoption of new innovations and
the perceived effect of such activities.
The outcome demonstrated that the majority of the techniques were implemented
by farmers, and that their well-being had significantly improved. The majority of
respondents (80%) saw a favourable influence from things like brick homes; zinc
roofs, bicycles, televisions, motorbikes, and nutritious meals are now common
among Fadama farmers, and they can even afford to pay for their children's and
wards' higher education.
While the current study and Lawal et al. (2008) used structured interviews and
questionnaires as main data sources, the result analysis included both descriptive
and inferential analysis. Nevertheless, the empirical results show that poor
equipment quality, irregular service providers, and delays in loan delivery to
beneficiary SHFs are the main issues with the ABP. The ABP's technological
innovation, talent, and extension services have greatly increased the SHFs' output
while also providing automated reflections on their means of subsistence.
In a similar vein, Kiragu (2015) conducted research on the connection between
Central Kenyan dairy farming production and agricultural funding. Secondary data
and time series data covering the years 1981–2013 were used. Regression analysis
was employed to evaluate the data, specifically focussing on the influence of the
loan facility on the diary output of cattle and the yield of milk. The study's
conclusions show a positive correlation between financing and dairy farming
production because credit facilities have made it easier for dairy farmers to buy the
feed, medications, and environments their animals need to reach higher production
levels in a commercial amount.
This study bears similarities to the current work on the "Impact of Anchor
Borrowers Programme on Rural Development in Yauri LGA, Kebbi State."
However, the data utilised in the study came from primary and secondary sources,
and 130 respondents were selected using a random sampling approach. The
outcome shows that the ABP loan has a major impact on the beneficiary rural
farmers' increased rice output, particularly in the study regions. According to the
study, enhanced seed and seedlings, better fertiliser treatments, pest and disease
management, and loan accessibility have all contributed to improvements in rural
farmers' well-being and production capability in recent years.
2.5 Summary
According to the aforementioned empirical studies and literature, scholars and
practitioners of agricultural development believe that while the implementation of
intervention programs and policies had assisted in raising the production capacity
and income of rural farmers, rural areas of Nigeria continued to experience
poverty, unemployment, rural-urban drift, inadequate infrastructure, inequality,
low food supply and food security, and poor wealth generation. The failure was
ascribed to the incapacity of succeeding administrations to integrate the ongoing
sustainable development programs; instead, they chose to start new projects at the
expense of the ongoing ones, which resulted in setbacks and a research vacuum on
rural development.
Therefore, the Anchor Borrowers Program offers an alternative approach to
agricultural practice by establishing connections between small-scale farmers,
respectable agro-allied product processors, and financial institutions in the areas of
loan accessibility, capacity development, and market efficiency to increase rural
farmers' ability to produce and likelihood of earning an income. Even though the
research on rice farmers in Yauri LG made commendable contributions, there was
no evidence of it, despite the fact that various empirical studies on agricultural
development programs were conducted. To help the researcher and close the
knowledge gap, relevant empirical papers were evaluated.
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Study Area
According to Umar et al. (2014), Kebbi state was founded on August 27, 1991,
when it split from Sokoto state, during General Ibrahim Badamasi Babangida's
military government. The state borders the Republics of Niger and Benin, as well
as the states of Sokoto, Niger, Zamfara, and Kaduna. The capital of the state is
Birnin Kebbi. There are four major emirate councils in Kebbi State: Gwandu,
Argungu, Yauri, and Zuru. According to the National Population Commission
(NPC) in 2006, it also has 21 Local Government Areas (LGAs) and 3,630,931
people living there overall.Approximately 36,800 square kilometres make up the
state's vast geographic area. It is located in the northwest between latitudes 10-0
and 13-0N and longitudes 30-30 and 60-0E. Moreover, agriculture occupies more
than 36.46% of the state's land area.
The region where Kebbi State is situated is prone to desertification, drought, and
other environmental problems. Large floodplains known as Fadama that are
situated inland from river valley systems dominate the state's landscape. The Rima
River runs southerly till it meets the Niger River, whereas the river in Kebbi State
flows southwest. Yauri, Shanga, and Ngaski LGAs make up the Yauri Emirate,
which extends across a large area of surface water from the River Niger, covering
many square kilometres, to Kainji Lake in the Borgu Kingdom.
The farmers from Yauri LGA in Kebbi state who are taking part in the study
represent the state. Yauri LGA's population is anticipated to be 137,100 people,
according to the 2006 National Population Census (NPC). Only 2,550 smallholder
farmers who benefited from the Anchor Borrowers Program were the subject of the
study. While farming accounts for the majority of the population's activities, some
people also trade, go fishing, or work in other professions.
In Yauri LGA, crops like rice, peanuts, sorghum, beans, maize, onions, and millet
are grown. Fruits like guava, bananas, cashew, and mangos may be grown because
of the favourable conditions and variety of plants that exist. Yauri LGA is well-
known for having a wide variety of wood species that are utilised to make ferries,
big motor boats, and canoes in addition to tools like knives, cutlasses, and
peddlers. In addition, the community grows a variety of arable crops, such as
tomatoes, peppers, almonds, and various vegetables (Umar et al., 2014).
Among the places that have profited from the Anchor Borrowers Program is the
Yauri Local Government Area (LGA). It has advanced significantly, especially in
the area of rice production, a crucial marker of Kebbi's health. The choice of this
field for the research has been influenced by this development. In order to obtain a
competitive advantage, there is also a considerable incentive to scientifically
identify the variables that might motivate additional states—in particular, Niger,
Kwara, Kogi, Benue, and Plateau—to join the ABP. The agricultural knowledge of
long-standing farmers who grow sorghum, rice, and onions in the rural Yauri
LGAs is another factor that inspired the study. Yauri LGA also has great
commercial potential, particularly for agricultural goods, lush terrain, and an
advanced transportation system with water channels linking it to many states and
the Republic of Benin. The main reason for doing this study is because agricultural
goods are easily accessible from a central location and are considered to be
commercial hubs.
3.2 Population
The population of the study consists of 50 important stakeholders and 2,500
smallholder farmers who profit from the Anchor Borrowers Programme. These
individuals are located in the rural villages of Yauri LGA in Kebbi state,
specifically in ten wards. At the time of the study, there were 2,500 farmers
benefiting from the ABP in Yauri LGA. Additionally, there were 50 other active
stakeholders. Out of them, 140 smallholder farmers were randomly selected for the
purpose of this study.
Table 3.1.1 displays the demographic composition of the stakeholders involved in
the Agricultural Business Promotion (ABP) program in Yauri Local Government
Area (LGA).
S/N Participants in the Anchor Borrowers’ Programme (ABP) Sample Size
Method of Data Collection
1. A questionnaire for Smallholder Farmers (SHFs) with 120 questions.
2. The individuals responsible for coordinating the ABP (Extension Services
Agents) 6. Interview
3. The interview for the Kebbi State Agricultural Business Promotion (ABP)
Committee will take place on the 5th.
4. Bank of Agriculture (BOA) Staff Interview
5. Interview with Established Rice Processors
6. Yauri Emirate Council - 3rd Interview the total population is 2,550,140, with
130 individuals being useful.
Origin: Fieldwork conducted in the year 2024
3.2.1 Sample Size and Sampling Techniques
The study's primary emphasis is on Yauri LGA in Kebbi state's smallholder
farming community and Anchor Borrowers' scheme participants. The whole course
of the program, from 2015 to 2019, is covered by the study period. According to
Hair et al., having a large enough sample size is crucial for research (2017: In
Suleiman, 2019).To minimise sampling error costs and properly represent
population characteristics, the ideal sample size is required.
3.2.2 Sampling Methods
A multi-stage sampling approach was used to choose smallholder farmers and
other ABP partners. The first step was carefully choosing six (6) ABP
Coordinators who worked for the Kebbi State Agricultural Development Authority
(KARDA), which was in charge of offering extension services. Furthermore, the
following people were selected: three recognised rice millers, three members of the
Yauri Emirate Council, five (5) representatives from the Kebbi State Anchor
Borrowers Committee (KESABPC), and three (3) members of the Bank of
Agriculture (BOA). These people are the presumptive supporters who are notably
advancing and achieving the ABP plan in Kebbi State, more precisely in Yauri
Local Government Area.
In the second phase, six (6) villages were chosen at random from the rural
communities of Yabo, Rukubolu, Pissabu, Hinanbiro, Gumbi, and Jalbabu in Yauri
LGA to provide a sample of one hundred and twenty (120) respondents. From each
neighbourhood, twenty (20) respondents were chosen at random. The settlements
in Yauri LGA, Kebbi state, were carefully selected due to their high yields and
outstanding performance in rice farming. The selected persons came from four
different wards in Yauri LGA, Kebbi State, which has 10 total wards. As a result,
140 respondents in all were chosen among the 2,550 farmers, actors who
participated in the study, and stakeholders who benefited. Thirteen hundred of
these will be employed in the research. The sample size is in line with the sample
size distribution suggested by Krejeie and Morgan (1970), who suggested a certain
sample size.

3.3 Data Collection Methods

Through the use of structured surveys, interviews, and content analysis, the
dissertation gathered information from primary and secondary sources. The
information was centred on the Anchor Borrowers' Program, rural development,
and agricultural development initiatives. This is crucial since the study looks at a
lot of different factors and personal categories that are connected to the borrowers'
policy's execution. There are three sections in the questionnaire: A, B, and C. The
biodata of the responders is included in section A. There are twenty (20) questions
in Section B and thirty (30) questions in Part C. The study's research themes served
as the basis for developing the question items, which were then analysed in light of
the participants' responses. As a result, as shown in Appendix 1, some of the
questions were closed-ended, allowing respondents to select from pre-provided
options, while other questions asked for respondents to submit their own
comments.
3.3.1 Instrument Validity
The investigator modified a methodical survey and obtained confirmation from
three professionals in the domains of Political Science, Sociology, and Agricultural
Science. The questions were made more relevant and clear by the experts' remarks,
edits, and recommendations. The research then made use of the completed
questionnaire.
3.3.2 Initial Study
An experiment was carried out in Badeggi, Agaie Local Government Area, Niger
State, to guarantee the precision and uniformity of the questionnaire intended for
use in this investigation. To evaluate the validity and reliability of the tool, thirty
farmers were given questionnaires. The participants' similar demographic and
socioeconomic characteristics to the research communities in Yauri LGA are the
reason for choosing Badeggi in Niger state. All completed surveys were returned
following a two-week timeframe.
3.3.3 The instrument's reliability
The split-half approach was used to evaluate the reliability of the instrument. The
survey questions were divided into two parts and sent to the participants in the
pilot research on two different days. Guttman split-half coefficient and Codiran
Alpha were used to analyse the two scores. These coefficients, which have a range
of 0 to 1, assess an instrument's dependability. A value of 1 denotes no mistake in
the instrument, whereas a coefficient of 0 denotes a significant degree of
inaccuracy.
3.4 Data Collection Procedure
The researcher delivered an introduction letter on behalf of Ibrahim Badamasi
University Lapai's Department of Political Science prior to the actual collection.
Copies of these letters were sent to the anchor program participating organisations.
In order to speed up the data collection procedure, the researcher disseminated
copies of the questionnaires with the assistance of two knowledgeable research
enumerators from Yauri town. After distribution, the surveys were collected three
weeks later. To make it easier to evaluate and comprehend the data algebraically,
both descriptive and inferential
3.5 Data Analysis Procedure
The researcher delivered an introduction letter on behalf of Ibrahim Badamasi
University Lapai's Department of Political Science prior to the actual collection.
Copies of these letters were sent to the anchor program participating organisations.
In order to speed up the data collection procedure, the researcher disseminated
copies of the questionnaires with the assistance of two knowledgeable research
enumerators from Yauri town. After distribution, the surveys were collected three
weeks later. Statistical variables, both descriptive and inferential, were used to aid
in the algebraic analysis and interpretation of the data.
3.6 Data Analysis Procedure
Frequency distribution and percentages were used to illustrate sociodemographic
features in the data analysis of the questionnaire responses on the returned copies.
The degree of variation between groups is measured using means scores. The four
null hypotheses, which have been developed at a significance level of 0.05, will be
subjected to an analysis of variance (ANOVA) to decide whether they should be
accepted or rejected. Since the t-test is the most appropriate technique for carrying
out a significance test between three or more groups, it was employed to test the
hypotheses. The likert-type scale, average treatment impact, and binary logistic
regression are further statistical techniques. Furthermore, version 22 of the
statistical software for social sciences (SPSS) is utilised.
3.5.1 Binary Logistic Regression
The research utilised the Binary Logistic Regression Modelling approach to
ascertain the attributes that impact smallholder farmers' ability to get ABP loans
within the examined region. A logistic model is a statistical model in which there is
only one variable and whose values can only be one of two, usually denoted by the
numbers 0 or 1. Here, the variable denotes whether or not a farmer receives ABP
benefits. However, the independent variables included both discrete and
continuous values. In the realm of social sciences, Ayinde et al. (2018) have used
this approach to predict the presence or absence of an outcome based on a set of
predictor factors. The odds ratios for each of the independent variables in the
model may be estimated using the logistic regression coefficient. According to
Ayinde et al. (2018), "logit" refers to the natural logarithm of the odds, which
expresses the likelihood of falling into one of two groups for a given set of relevant
factors.

In section 3.5.2, the average treatment impact is computed.

The Average Treatment Effect (ATE) was employed in the study to tackle the
problem of selection bias non-compliance. The Anchor Borrowers' Programme's
effect on farmers' income, productivity, and living standards was assessed using
the ATE. ATE is an acronym for statistical matching, an advanced statistical
technique. According to Ayinde et al. (2018), the goal of this technique is to assess
the effectiveness of a therapy, policy, or intervention by accounting for
confounding variables. Assuming a binary treatment T, result Y, and background
factors X, the average treatment effect is the conditional difference in treatment
given the study region's background variables.
3.5.3 Likert Scale
The limitations impeding the Anchor Borrowers' Program's efficacy were
evaluated using the Likert scale. The participants were given an extensive list of
important performance metrics, constraints, and difficulties. They were then asked
to rate each item on the list on a Likert scale according to how serious the issue
was. According to Ayinde et al. (2018), the ATE principle assesses people's
attitudes by asking them to respond to a series of statements about constraints,
indicating how much they agree or disagree, and giving them a choice of solutions.
This method does a good job of capturing their attitudes' emotional and cognitive
components.
 CHAPTER FOUR

DATA ANALYSIS, PRESENTATION AND INTERPRETATION

Table 4.1.1 Distribution of Respondents Demographic Characteristics
Variable Category Frequency Percentage
Gender
Male 98 75.4
Female 32 24.6
Marital Status
Married 103 79.2
Single 15 11.5
Widow 12 9.3
Age
<30 15 11.6
31-39 31 23.8
40-59 75 57.7
60 and above 9 6.9
Family Size
1-5 23 17.9
6-10 30 23.1
11-15 40 24.6
16 and above 45 34.3
Level of
Education No formal education 72 55.4
Primary School 30 23.1
Secondary School 20 15.4
Tertiary 8 6.1
Occupation Farming 101 77.7
Civil Servant 9 7
Business 6 4.6
Fishing 4 10.8

Source: Field Survey, 2024.

4.1 Demographic Profile of Participants

The gender distribution of those who produce rice is seen in Table 4.1.
Approximately 75.4% of the respondents were men and 24.6% were women.
According to data from the Food and Agricultural Organisation (2012), women in
poor countries are less likely than men to plant rice. The results show that a sizable
majority of respondents—79.2%, to be exact—are married. But a significant
percentage—11.5%—remain single. It is important to remember that a large
number of these single people are also responsible for maintaining their homes.
After their marriages ended, widows or divorcees made up about 9.3% of the
participants and took on the role of supporting their families. For the most part,
farming provides these people with both subsistence and fun.

The results show that 23.8% of the participants are between the ages of 30 and 39,
while 11% of the participants are under 30. The most productive age group is
thought to be between 40 and 59 years old, which is where the bulk of responders
(57.7%) fall. Sixty percent or less of the responders are older than sixty. Similarly,
17.9% of participants have a family size of one to five members, and 23.1% have a
family size of six to ten members. Furthermore, a family size of around 34.3% has
16 or more members, whereas 24.6% of the participants have a family size of
approximately 11 to 15.
Gaining knowledge is essential for success in any endeavour. On the other hand,
the results show that 55.4% of rice farmers are not formally educated. Slightly over
23.1% of respondents have finished elementary school, compared to just 15.4%
who have completed secondary education. Furthermore, just 3.8% of the
respondents have completed adult education, and less than 2.3% have completed
postsecondary education. The results imply that education has little impact on
either the availability of ABP loans or the increase in production. Furthermore, the
survey indicates that 77.7% of the respondents are full-time farmers, compared to
7% of public officers and 4.6% of respondents who work for small businesses. The
research region's inhabitants may engage in commercial fishing because they are
close to the River Niger. The percentage of participants who work as fishermen is
about 10.8%.

Table 4.1.2: Smallholders Farm Operation for Rice Production

Variation Category Frequency Percentage%
(130)

Farm Size
1-2 ha 26 20
2-3 ha 68 52.3
3 ha and above 36 27.7
Land Ownership
Inheritance 122 94.5
Communal 6 4.3
Lease 2 1.2
Cooperative/Group
1-10 45 34.6
11-20 62 47.7
 21 and above 23 17.7
Sources of Labour
Family/Self 69 53.1
Hired Labour 27 20.8
Association 16 12.3
Farming Experience
Less 10 17 13.1
Less 20 85 65.4
30 years and 28 21.5
Major Crops above
Cultivation 67 51.5
Rice 40 30.8
Sorghum 23 17.7
Onion

Total 130 100

Source: Field Survey, 2024
According to Table 4.2's results, 20% of the participants had farms that are
between one and two hectares in size. On the other hand, the bulk of respondents—
roughly 68%—run farms with between two and three hectares. Furthermore, 36
percent of the participants work farms with an area bigger than three hectares. It
was discovered that, in China and India, the average area of rice acreage per farmer
was less than 0.6-2ha, which contradicts the assertions made by Tinuke and Joseph
(2018) and Ayinde et al (2018). Approximately 94% of the participants cultivate
rice on their privately held acreage, which is mainly inherited. Merely 4.6% of
participants possess agricultural property situated on communal land, exempting
them from rent payments. Furthermore, just 1.4% of those surveyed grow rice on
property they rent. This validates Ubajah's (2014) results, which show that small-
scale farmers account for the majority of rice growers in northern Nigeria. This is
thus because, in accordance with Islamic law, property ownership is often
determined by inheritance. Nonetheless, some farmlands are obtained via lease or
purchase.

To benefit from the anchor borrowers' scheme, farmers must be members of a

cooperative organisation or organisation. 47.6% of the respondents are involved in
Farmers' Cooperative Associations, which include between 11 and 20 farmers as
members. Furthermore, 18.% of the respondents are a part of organisations with 20
or more members, whilst 34.4% of the respondents are a part of cooperative
societies with 1–10 members. According to Tunike and Joseph (2018), KARDA
only gives tap water and drill water to those who are formally registered members
of cooperative organisations.

Nonetheless, a sizable fraction of participants (53.1%) employed their relatives as a

labour pool, which usually entails little to no costs. About 12% of the participants
employed paid labour, whereas 21% participated in group labour (Mari/Gayya).
Nonetheless, a sizable majority of respondents—65.4%—had 20 years of
experience cultivating rice, and 28% have 30 years of agricultural expertise. On the
other hand, 13.1% of farmers have less than ten years of experience on the field.
The bulk of Nigerian farmers, according to Meludu et al. (2017), own small farms
and have more than 20 years of farming experience. Approximately 51.3% of the
total agricultural product in the research region was produced from rice, which was
the main crop grown there. With a share of 30.8%, sorghum was followed by
onions, which made up 10.8% of the crop.

Table 4.1.3 Access to ABP loans in Cash and Kind (inputs)

Variables Category Always Often Never
Freq. (%) Freq. (%) Freq. (%)
Loan Accessibility
Improved Seeds (Faro 50kg) 52(40.0) 43(33.1) 35(26.9)
Fertilizer (NPK/Urea, 300kg) 59(45.8) 35(26.7) 36(27.5)
Herbicide (7 liters)53(40.0)46(35.8) 31(24.2)
Farm Implements 16(12.3)23(17.7)80(61.5)
Cash Accessibility
< N50,000 54(41.4) 45(34.6) 31(24.0)
N50,000 -100,000 31(23.8) 55(42.3) 44(33.8)
N101,000 – 150,000 52(40.0) 45(34.6) 33(25.4)
N151,000 – 200,000 17(13.1) 29(22.3) 84(64.6)

Extension Services 45(34.0) 65(50.0) 20(26.0)

Knowledge M=5
Visitation M=3
Training M = 2
Source: Field Survey, 2024.

4.2 Access to loans provided by ABP in the form of cash or physical inputs.

The respondents' degree of access to loans from the Anchor Borrowers'

Programme and how it may increase their income are shown in Table 4.3. The
percentage of farmers who regularly had access to advanced rice seeds—highly
developed seeds with built-in defences against crop diseases—was about 40%. Of
the participants, about 33.1% regularly had access to rice seeds, whereas 26.9%
had no access to rice seeds at all. Furthermore, 45.8% of the respondents reported
having access to fertiliser on a regular basis, 26.7% reported having it frequently,
and 27.5% reported having no access to it at all. Herbicide availability was
reported by roughly 40% of respondents on a regular basis and by approximately
35.8% of respondents on a frequent basis. Herbicide access was completely absent
for the remaining 24.2% of the farmers that took part in the study. Only twenty-
eight percent of the respondents had access to farming tools on a regular basis, and
seventeen percent had it often. 61.7% of those surveyed said they lacked access to
agriculture equipment.

Therefore, funding is essential to modern agricultural methods since it allows

smallholder farmers to hire workers and get their land ready for planting. Table 4.3
shows that 41.4% of respondents routinely had access to less than N50,000 in cash,
compared to 34.6% of respondents who had access to it more often. However, over
24.0% of the participants reported having no access to it at all. Likewise, around
23.8% of the respondents were able to obtain a sum of money that was between
N50,000 and N100,000. While 33.8% never had the opportunity to reach this
range, 42.3% often did. Roughly forty percent of the participants regularly
possessed a sum of money in the N101,000–N150,000 range. A minimum of
34.6% of the participants reported having regular access to this sum of money,
whilst 25.4% reported having no access to it at all. Moreover, a total of 13.1% of
the participants regularly possessed cash in the N151,000–N200,000 range,
whereas 22.3% did so on a regular basis. However, the majority of responders
(61.5%) did not have access to this amount of money. Every beneficiary gets
agricultural inputs and an average of N90,000 in cash.

It is impossible to exaggerate the importance of extension services in raising

agricultural output. As extension agents, these services help farmers learn how to
use agricultural implements properly. Agricultural Business Promotion (ABP)
program coordinators also provide these services. On the other hand, about 50% of
respondents regularly used extension services, compared to 34% of respondents
who did so consistently. However, 26% of the participants reported having no
access to extension services.

Table 4.1.4 Respondents’ Enterprise Characteristic in Relations to Production

Variable Average

Average farm operation

Farm size
Rice output 2.6 ha
Repayment 8.62 MT/ha
Side selling 88.1%
Extension services (visitation) 9.2%
Net income of SHF per ha 5ce
N450,000

Source: Field Survey, 2024.

The information shown in Table 4.4 shows that the respondents' average farm size
was 2.6 hectares, which corresponds to 70% of smallholder farmers. The primary
crop farmed in the research region is rice, which yields 8.62 metric tonnes per
hectare. The results are consistent with research by Meludu et al. (2017), Omonijo
et al. (2014), and Ayinde et al. (2018), which show that most Nigerian farmers
operate small farms. Table 4.4 displays the average mean of 30% for extension
services, which include smallholder farmer education, field visits, and information
sharing to help with the adoption of new technology and understanding of
operating principles.

Even still, 88.1% of respondents delivered their goods to the anchor firms and paid
back the loans they had taken up, demonstrating the commendable repayment
behaviour of the farmers who benefitted from ABP loans. This is a result of most
responders adhering to the program's operating guidelines. Only 9.2% of the
respondents, according to the statistics, failed to deliver their rice output to the
anchor firms. They chose to sell their goods on their own instead, which prevented
them from being able to pay back their debts. The extreme poverty and misery
endured by the rural populace may be the cause of this mentality. Before the
agricultural produce is completely matured to meet their immediate requirements,
some of them sell it. After harvesting, the respondents' net revenue per hectare is
N450,000, a considerable increase above their net income of less than N150,000
before to the ABP.

Table 4.1.5 Effect of ABP on standard of living of the smallholder farmers

Effect of ABP Average (%)

ABP has increase productivity of SHFs 85.0

It has raised their net income 200
ABP has improved the education level of children of the farmers 15.8
It has helped in the promotion of their household healthcare status 15.4
It has generated direct employment 45.2
It has significantly improved the standard of living of rural 40.4
farmers

Table 4.5 shows that smallholder farmers' net income and production capacity have
increased by 85% as a result of the Anchor Borrowers Programme. The
participants indicated a high level of agreement that ABP raises their children's
educational standards by 45%. This is clear from the fact that many of the farmers'
kids are now enrolled in post-primary and secondary education. The results also
show that, with a 35% increase, the healthcare conditions of the rural farmers who
have benefitted from the anchor borrowers' program have been greatly improved.
Consequently, these farmers and their households can now afford to pay for
medical care at hospitals, clinics, and dispensaries as needed.

Table 4.5 shows that 80% of rural inhabitants now have considerably more work
prospects because to the anchor borrowers' scheme. Due to the significant wealth
development that has resulted from this, farmers who were not able to satisfy their
own financial obligations in order to participate in the program's second phase
were left out. The majority of responders concurred that the Anchor Borrowers'
Programme has improved smallholder farmers' standard of living and income
considerably. This is a result of the program's strong correlation between
production's net income and improvements in production capabilities.

Table 4.1.6: Smallholder Farmers’ Accessibility Rate

Level of Accessibility Percentage(%)
Low (< 5)35.0
High (> o r =5) 65.0
Mean =5
Source: Field survey, 2024.
With a mean access score of 5, the data in Table 4.6 illustrates the accessibility rate
of the Anchor Borrowers' Programme. Of the respondents, 65% stated that they
had great accessibility to tools, seeds, fertiliser, and extension services. The
survey's findings show that only a tiny percentage of participants—35 percent—
had restricted access to the ABP loan, which covers inputs including
agrochemicals, fertiliser, and extension services (knowledge, information
exchange, and training). This implies that accessibility is not very high.

Table: 4.1.7. Estimated effect of ABP on Smallholder Farmers’ Income

Variable PSM Method Treated Control ATT Standard error t-test
Income Radius 130 1304500068.6*** 12889.4 2.19
Source: Field Survey, 2024
Please note that the symbol **** signifies a significant level of 1%.

Table 4.7's findings show that ABP had a significant positive influence on the per
capita income and standard of living of the farmers who benefitted from it. A
substantial amount of 1% was reached for this beneficial impact. The anchor
borrowers' effort resulted in an increase in revenue output for rural farmers, as each
recipient got an average of ₦450,068.60 per acre.

Table 4.1.8 Result of Logistic Regression Model

Variable Β S.E Wald Expo B
St.

Constant -6.606 2.327 8.058 0.001

Age -0.012 0.040 .091 0.988
Household size -0.440*** 0.141 9.748 1.552
Level of education 0.137 0.196 .489 1.147
Farm size 1.398*** 0.431 10.528 0.247
Marital status -2.429*** 0.962 6.368 0.088
Membership of 5.187*** 1.359 14.61 178.924
cooperative 2.039*** 0.495 16.976 7.683
Number of extensions 0.000*** 0.0008 .782 1.000
visit Cox & R square 0.585 Nagelkerk R square0.780
Income Snell e
-2 Log likelihood 67.877
Source: Field Survey, 2024.
Table 4.8 presents the results of binary logistic regression, which show that the
success of the Anchor Borrowers' Programme is significantly influenced by the
sizes of households, farmland, cooperative society, extension services, and income
from rice production at a significance level of 1%. A significant change was seen
in the -2log probability. Thus, it is proposed that the involvement of rice farmers in
the Anchor Borrowers' Programme and certain explanatory factors have a
significant cause-and-effect connection. The coefficient of determination (R2),
sometimes referred to as the Cox & Snell R square, is 0.585. According to the
research, variations in the chosen explanatory variables account for 58.5% of the
variance in rice farmers' access to ABP loans. This suggests that the model can
account for the variations in the accessibility of rice growers. With a value of 78%,
the Nagelkerke R square, commonly referred to as modified R2, offered substantial
support for the claim. This shows that, with a certain degree of confidence, the
selected explanatory factors explain 78% of the difference in the farmer's
accessibility to ABP funding.

Due to its negative affect, family size had no effect on the chance of receiving
financing from ABP, as Table 4.8 shows. The ability to obtain ABP finance
increases extension services' capability. This suggests that the capacity to get loans
from financial institutions is positively impacted by extension services. Extension
agents serving as coordinators made it easier for farmers to embrace new
agricultural practices and increase their understanding of them. They also helped to
spread information. The accessibility of ABP loans for rice growers is positively
impacted by family size. This indicates that the larger a farmer's household is, the
easier it is for them to get loans. The findings suggest that the presence of family
members who can assist with labour is reflected in the rise in household size.
Because of this, rice farmers have formed cooperative organisations within their
own families, which has encouraged them to apply for loans.

The results also show that a peasant farmer's capacity to obtain loans from the
anchor borrowers' program is significantly impacted by the size of their land. As
output scales up, producers should be able to reduce risk to a level that offsets any
potential increase in production risk. When it comes to managing agricultural
activities, there is little doubt that a farm's size affects productivity (Obiora, 2014).
Larger producers, however, use marketing strategies that successfully lower
farming risks and raise agricultural commodity production.

The capacity of members of cooperative societies or groups to get agricultural

loans has a positive effect on rice yield, as Table 4.8 further illustrates. A
cooperative society membership makes it easier for small farmers to apply for
loans under the Anchor Borrowers' Programme. For small-scale farmers to take
advantage of the Anchor Borrowers' Programme, they need to be cooperative
group members. Farmers who can offer guarantees through their associations have
a greater chance of getting loans from banks since they are more likely to utilise
the money for repayment and follow the loan terms.

Thus, becoming a member of a cooperative organisation has a significant impact

on farmers' ability to get ABP loans. Similarly, farm revenue has a significant
influence on rice output and loan eligibility under the Anchor Borrowers' Program,
which results in improved growth, greater productivity, and higher net income.

The conclusion drawn from the results is that farmers often need government
support in order to improve their ability to produce, raise per capita, and improve
their standard of living. In order to purchase sufficient land for growing their crops
and raising production, farmers need financial assistance. However, they are
unable to purchase farming inputs required for commercial agricultural methods,
including as tractors, agrochemicals, fertilisers, better seeds, and seedlings, due to
the high proportion of rural poverty and restricted access to financial support from
governmental and private organisations. These inputs are necessary for enhancing
farming techniques and modernising agricultural practices, both of which advance
the socioeconomic development of rural areas.

Table 4.1.9: Result of Constraints of the Anchor Borrowers Programme

Operation
Constraint Not Severe Not Severe Mild Mean Rank
problem sever
e
Administration 73 19 21 17
(56.7) (14.9) (16.4) (13.1)
Political 8 31 8 23 0 0.84 1st
Interference (6.0) (23.9) (6.0) (17.9) 60
Low Service 4 25 33 4 (46.3) 2.75 2nd
Quality (3.0) (19.4) (25.4) (3.0) 64
Side selling 8 4 27 62 (49.3) 2.76 3rd
Farm Produce (6.0) (3.0) (20.8) (47.8) 29
Side Selling 7 12 48 21 (22.4) 2.78 4th
Produce (5.3) (9.0) (37.0) (16.4) 42
(32.3) 2.82 5th

Source: Field Survey, 2024.

Table 4.9 demonstrates the major challenges smallholder farmers face while
putting the Anchor Borrowers' Program into practice. With an average rating of
2.82, the most serious problems are the delays in payment and supply delivery.
Many farmers who participate also have to deal with the limitation of obtaining
subpar equipment. Additionally, the results show that, with mean ratings of 2.75
and 2.76, respectively, the quality of the services was much lower than the quality
of the equipment. The Anchor Borrowers' Program was extremely effective in
raising the income of the participating farmers even with the loan's delayed
disbursement.

4.1.10Reliability of Statistics
Cronbach Alpha Cronbach’s Alpha Based on No of Items
Standardized
.990 .991 6
Source: Field Survey, 2024
Note: *** represents 1% significance level.
Table 4.10 in this study tested the replies' dependability using Cronbach's Alpha, a
commonly used reliability assessment tool. A statistical metric called Cronbach's
Alpha is used to quantify both the total number of questions in a questionnaire and
the average correlation between them. The numerous measurement items'
connection indicates that there should be little inaccuracy and reliable results. A
low correlation means there is a lot of room for mistake and that the things being
assessed aren't reliably and consistently measuring the same thing. A statistical
metric called Cronbach's Alpha is used to quantify a test's dependability. It ranges
from 0, which denotes an entirely untrustworthy test, to 1, which denotes an
entirely trustworthy test. The results of the study indicate that a high degree of
dependability is suggested by Cronbach's Alpha (0.99).

Table 4.1.11 Association between dependent and independent variables

Variable +SE Test-value DfP-values Mean
Before ABP 130 2.52 1.51 788 2.72 1.96

After Anchor 130 2.90 2.62

P = .005 Decision = Sig

Source: Field survey, 2024.

NS = Not significant
***Significant at 1%
4.3 Assessment of the relationships between independent and dependent
variables

The demographic traits of farmers and the amount of money they generated both
before and after taking part in the anchor borrowers plan in commerce are shown
in Table 4.1.11. ABP has a substantial influence, as shown by the chi-square
analysis, with the exception of farm size (χ=31.763; p<0). The t-test analysis
comparing the before and after data also shows that the program had a beneficial
effect on land cultivation (t=1.23; p>0.22).

4.4 Hypothesis Testing

First hypothesis

H01: The Anchor Borrowers' Programme does not have a substantial impact on the
improvement in production capacity of rice farmers in Yauri LGA.

In order to evaluate null hypothesis 1, a t-test analysis was conducted to examine

socio-economic indices such as source of labour, farm size, amount of income,
farming experience, and membership of association under the Borrowers'
Programme.
Table 4.2.1 illustrates the impact of ABP on the socio-economic condition of the
Smallholder Farmers (SHFs).

The variables in question are N, X, SD, DF, and t-cal. Critical temperature.

The values for ABP are as follows: 130, 3.52, 2.21, 788, 2.88, and 1.96.

The p-value is 0.005 and the decision is significant.

4.5.Key Discoveries

i. According to the study, before farmers who gain from the anchor borrowers'
program can access credit facilities, they must participate in the decision-making
process with financial institutions, extension services, and cooperative societies.

ii. The help given to small-scale farmers and a number of cooperative projects are
responsible for the notable rise in rice output in Kebbi State. These initiatives
include programs like KARDA, the National Fadama Development Projects
(NFDP), the Agricultural Transformation Agenda, the Growth Enhancement
Support Scheme (GES), and others that were mostly carried out in collaboration
with the World Bank.

iii. In Yauri LGA, Kebbi State, the rise of LABANA, UMZA, and other small-
scale rice mills has produced a thriving market for smallholder farmers. This
boosts output by enabling them to sell their rice crops for a reasonable price.

iv. The dissertation shows that Yauri LGA has long been a deeply embedded home
of the sustainable rice-growing culture. Because of this, the Anchor Borrowers'
Programme offers a simple way to link modern agriculture with ancient methods.
This entails offering financing facilities, instruction, and knowledge and
information sharing—all of which are very important.

4.6 Analysis of the Findings

The specific effects of the Anchor Borrowers' Programme on rural development in

Yauri LGA, Kebbi States, Nigeria, are the main topic of this research. Four goals
and research questions were covered in the study, and frequencies, ANOVA, and
average treatment impact were employed in the data analysis. T-test analysis
addressed the research subjects and hypotheses. The first goal is to ascertain how
the borrowers' program has affected the farmers in Yauri LGA's production, ability
to generate revenue, and level of living. The information gathered for this reason
was assessed.

Farmers' socio-economic characteristics include their level of education, the size of

their farm, how long they have been in the agricultural industry, whether or not
they belong to cooperative organisations or groups, and where their land was
originally. These factors all have an effect on farmers' productivity and net income.

The adoption of modern agricultural methods is not correlated with age or farming
experience, despite what Oladoja and Olusanya (2007) claim. Regarding the use of
modern agricultural technology, there is a positive correlation between farmers'
educational attainment and the amount of acreage they own. This relationship also
includes comprehensive training and skill development, all of which enhance
output levels, cost control, and risk management effectiveness. Additionally, in
order to increase productivity, farmers will use more sophisticated agricultural
methods. According to Obiora (2014), among other things, farmers' abilities and
capital availability determine how much they can produce.
On the significant differences in the technologies used by smallholder farmers
before to and after the project's execution, four hypotheses are covered under the
research subject. It is not surprising that there were significant differences in the
technology used by the anchor borrowers program before and after it for the
farmers who took part. Adebo (2006) states that the main barriers to Nigeria's
agricultural growth are the high cost of farming inputs, the lack of training in
modern agricultural methods, and the difficulty in obtaining financial resources.
This kind of growth has the effect of creating an inverse connection between the
degree of production and the seriousness of the problems. Productivity declines
when issues get worse. On the other hand, when challenges are not as great, more
new farming techniques are used, which results in more productive agriculture.

The study's conclusions, which include four null hypotheses and four research
questions, point to a relationship between the Anchor Borrowers Program's
benefits and the adoption of creative agricultural techniques by the farmers in
Yauri LGA, Kebbi States. For instance, 93% of the farmers questioned said that
the Agricultural Best Practices (ABP) program gave them information on how to
properly prepare their land with sufficient spacing and how to acquire financing for
agricultural reasons. Furthermore, more than 82% of the farmers stated that the
program allowed them to use better crops, pesticides, and inorganic fertiliser.
Ayinde et al. (2018) discovered that improvements in farming practices had been
brought about by the Anchor Borrowers' Programme, an external intervention.
Umar et al. (2017) looked at how outside interference affected agricultural
operations as well as how productive farms were in terms of labour, geography,
and production technology selection.
However, the study question and the null hypotheses both suggest that, after the
program's adoption, there is a high correlation between ABP and land cultivation.
According to the statistics, a sizable portion of the farmers who gained from the
ABP program expanded their fields and increased their use of contemporary farm
equipment. Omonijo (2014) therefore confirms that credit availability has a
positive impact on the adoption of modern agricultural techniques. According to
Ajayi (2008), signs of rural development might include the existence of
motorbikes, radios, televisions, and zinc roofs. Conversely, Orokoyo (2003)
contends that these elements ought to contribute to a greater extent than 55% of the
total quality of life. As a result, the majority of farmers who implement the ABP
own durable goods like televisions, motorbikes, recently constructed separate
homes, access to high-quality healthcare, and the ability to send their kids to
school.
 CHAPTER FIVE:

Summary, Conclusion, and Recommendation

5.1 Overview

In Yauri LGA, Kebbi State, the research looks at how the Anchor Borrowers'
Programme (ABP) has affected rural development. It lays out four specific goals,
one of which is to evaluate the benefits of ABP for smallholder farmers in Kebbi
State's Yauri LGA. Four research questions that matched the particular objectives
of the study were developed. "How are the smallholder farmers in Yauri LGA of
Kebbi State benefiting from the ABP?" is one of these queries. One of the four
hypotheses put out is that the Anchor Borrowers Program significantly affects the
farmers in Yauri LGA who benefit from it in terms of their standard of living.
Using random sampling, a multi-stage survey analysis was used to choose 140
respondents from a population of 2,550 smallholder farmers and actively involved
stakeholders in the ABP. An interview and a structured questionnaire were used to
collect data. Simple percentages, binary logistic regression, treatment effect, and
the Likert scale were all used in the empirical assessment process.

As a result, four hypotheses were investigated, and a significance threshold of 0.05

was used to test the null hypothesis. The findings show that the Anchor Borrowers'
Program, which intends to promote modern agricultural methods for rural
development, has not been able to successfully implement its goals due to delays in
loan distribution and inadequate cash for farmers. Yauri LGA in Kebbi State and
around Nigeria have seen a notable increase in agricultural output because to the
Anchor Borrowers' Programme, which lends money to farmers. Farmers now enjoy
higher living conditions, more production capacity, and higher per capita income
as a result of this.
5.2 Summary

The results of the dissertation show that respondents' perceptions of the influence
of the Anchor Borrowers' Programme are consistent, irrespective of their position.
It is anticipated that this initiative would increase output, create jobs, encourage
independence, and support rural development. It's crucial to remember that the
agriculture industry is still dominated by subsistence farming.

5.3. Suggestions

Thus, the following suggestions are derived from the study's findings:

Subsidies would be given by the government to lower the interest rate on ABP
loans to less than 5% in an effort to motivate and promote more involvement in the
anchor borrowers program.

ii. To help more committed farmers who have fulfilled the program's requirements,
a comprehensive assessment of the Anchor Borrowers' Program ought to be
conducted. By doing this, they would be able to advance from smallholder farmers
to medium-scale farmers (MSFs) by progressively increasing their production
capacity.

iii. In order to improve productivity, Cluster Farmers Supervisory systems should

be put in place. Under these systems, an Extension Service Officer (25/ESO) will
supervise a group of 25 farmers. The ESO would be in charge of supervising the
farmers, offering instruction, and assisting in the smallholder farmers' acquisition
of new skills and knowledge.

In order to guarantee efficient coordination, effective supervision, and efficiency in

resolving some of the implementation shortcomings, cooperative societies has to
be strengthened and formalised.
5.4 Study Limitations

The main limitation of the study was the researcher's inability to influence the
respondents' response selections. There was some discrepancy as a consequence,
which may have been caused by the respondents' reluctance to disclose their own
preferences. The respondents' disinterest in filling out the surveys was another
barrier.

The researcher encountered difficulties getting in touch with a number of important

figures involved in the ABP, such as governmental officials and RUFAN leaders,
who insisted on executive meetings before releasing any material that was
required. In a same vein, Kebbi State public employees are in charge of managing
what they view as conventional administrative affairs.

5.5 Recommendations for additional research

Owing to the study's scope constraints, it is not feasible to address every subject.
Consequently, more investigation is required. Future study should concentrate on
the following topics, according to the researcher:

With an emphasis on the viewpoints of the Anchor Borrowers Initiative, more

study should be done to examine the agricultural capacities and comparative
advantage of the various states in Nigeria.

Nigerian medium- and large-scale farmers would be able to expand by applying for
loans under the Anchor Borrowers' Program.