Exploration of the Activities of Rural Households Participating in Village Alive Development Initiative (VADI) in Kwara State, Nigeria

The study examined credit sources of rural households under the Village Alive Development Initiative (VADI) scheme in Kwara State. Multi-stage sampling technique was employed to select one hundred and twenty (120) respondents. Data were collected on the various sources of credits available to rural households and how it affects their output. Data were analysed using descriptive and inferential statistics such as percentages, mean, frequency counts and chi-square. Respondents’ mean age was 56 years, average household size was 5 persons, and farming experience was 7 years. Majority (50.7%) was males and married (49.3%). About average (54.5%) had secondary education while majority (87.7%) accessed credit from VADI scheme. The most critical constraint to credit accessibility was institutional bureaucracy (MS = 2.85). Age (p = 0.014), sex (p = 0.013) and source of labour (p = 0.058) of the respondents significantly influenced their choice of credit sources. The study concluded that the output of rural households is directly dependent on the sources of credit. Farmer friendly sources of credit should be encouraged and made available to them. Improvement in credit bureaucracies and provision of incentives for prompt repayment behavior should be ensured.