Authors: Olaoye, Olalekan Jacob and Odebiyi, Oluwaseun Christianah
International Journal of Fisheries and Aquaculture Vol. 3 (4), pp. 71-78, April 2011

Abstract
This study examined the economic viability of the use of microfinance bank loan on aquaculture development in Ogun state, Nigeria. The simple random sampling technique was used in selecting eighty aquaculturists that provided the primary data used in this study.

The primary data were collected with the aid of well-structured, validated and pre-tested sets of interview schedules, administered
through personal interviews and observations, so as to elicit the required information from the targeted loan users and were analyzed using descriptive, budgetary analyses and profitability ratios. Results showed a mean age of 47 and 43 years for beneficiaries of microfinance bank loan and nonbeneficiaries respectively, while 57.5 and 42.5% had secondary education and an average household
size of 5 persons, their vast experience in fish farming (13 and 12 years) has been a facilitating factor in productivity improvement in the localities. Gross margin of N27,461.48 and N59,030.31; benefit cost ratio of 1.58:1 and 6.9:1 shows that, aquaculture was profitable and viable. Findings concluded that, aquaculture is a profitable business with a high return on investment; therefore adequate policies
should be made to ensure that the interest rate is subsidized for increase in the supply of animal protein source.

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