ISSN 2756-3367
African Journal of Ecology and Ecosystems ISSN 2756-3367 Vol. 13 (1), pp. 001-005, January, 2026. Available online at www.internationalscholarsjournals.org © International Scholars Journals
Full Length Research Paper
Bridging the Funding Gap: An Analysis of Credit Dynamics for Forest Entrepreneurs in South West Nigeria
F. A. Azeez1*, F. Awe1, A. O. Ajibola2 and M. A. Amoo3
1Forestry Research Institute of Nigeria, P. M. B. 5054, Jericho, Ibadan, Oyo State, Nigeria.
2Community Development and Welfare Agenda (CODWA), 159, Ibrahim Taiwo Road, Ilorin, Kwara State, Nigeria.
3Federal College of Forestry, Jericho, Ibadan, Oyo State, Nigeria.
Accepted 4 October, 2025
This study was carried out to assess the credit characteristics of forest based entrepreneurs in South West Nigeria. Structured questionnaire were employed in obtaining primary data for this study. Average interest charges were 11% which exceeded the single digit interest rate recorded. The collateral and non-collateral credit sources were almost equal, 51 and 49% respectively. Descriptive statistics and Logit model were used. Iseyin L.G.A in Oyo state was purposively chosen due to its closeness to Old Oyo National Park which is one of the prominent national forests in Nigeria. Seventy-one percent(71%) of the respondents were in their working age with average age of 45.5 years; forest enterprises were male dominated, of which 80% of them were married and 71% were educated putting them in good stead for forestry extension and innovation and the average income was N10, 000 which is low compared with the household size. It was recommended that to influence their demand for credit positively, the collateral issue on credit, needs to be more entrepreneur friendly. As such government should as a matter of policy interventions provide necessary incentives that will promote forest based enterprises in order to increase the entrepreneurs’ income.
Key words: Forest enterprises, credit facilities, financial institution, rural households.