Effect of micro-credit on sustainable livelihood of artisanal fisherfolks in Lagos Lagoon, Nigeria

Abstract

Artisanal fishery occupies a significant position in the Nigerian economy providing employment for about 5.8% of Nigerian population and supplying 81.9% of the total domestic fish production. Fish supply from this sub- sector has however, continued to decline. One of the problems of the sub- sector is inadequacy of micro-credit to enhance production and the livelihood of the fisherfolks. The study, therefore, examined the effects of micro-credit on sustainable livelihood of artisanal fisherfolks in Lagos Lagoon. Stratified sampling technique was used to select 58 lagoon fishing communities in Lagos State. Fifteen percent of the Lagos State Agricultural Development Project (LSADP) registered fisherfolks were randomly selected. A total of 187 respondents from lagoon communities were interviewed using structured questionnaire. Data collected include socio-economic parameters, Formal Micro-Credit sources (FMC), Informal Micro-Credit sources (IMC), discriminant factors of micro-credit and problems associated with micro-credit. Data were analysed using descriptive statistics: mean, frequency, percentages and standard deviation, discriminant analysis. Mean monthly interest rates for IMC for lagoon were 6.0±2.56, 3.5±2.12, 4.3±3.18, 8.0±2.64, 5.0±00, 4.6±3.04 and 6.0±1.73 for savings and loans, friends and relatives, personal savings, cooperative, money lender, rotating savings and NGOs, respectively, while FMC recorded 9.0±1.94. In lagoon, 19.3% of the respondents used FMC, 75.1% used IMC while 5.6% used both. The important variable discriminating between users and non users of micro-credit in Lagoon was total cost which was significant (p<0.05). Micro-credit increased the efficiency of fisherfolks through use of better gears thus increasing catch, income and invariably improved their livelihood. Policies targeting interest rate reduction, adult literacy, and greater involvement of financial institutions and non governmental organizations should be focused on to improve fisherfolks production and livelihood.

Key words: Micro-Credit, Sustainable livelihood,Fisherfolks, Lagos Lagoon