Abstract:
This study investigated
factors influencing loan repayment
performance of fishermen. A survey of 67
randomly sampled fishermen was conducted
using a standard questionnaire. An interview
schedule was the main tool of data
collection while descriptive statistics and
multiple regression analysis were the main
analytical techniques. The study showed
that majority of the fishermen interviewed
were in the productive age range, had high
average annual income and were
experienced fishermen. Empirical results
indicated that 70.1% of the fishermen
interviewed had delayed repayment and this
was partly attributed to low catch and high
debts from fishmongers. Regression
estimation results reveals that loan
repayment increased with years of
education, fishing income, years of fishing
experience and amount of loan whilst the
age and investment made negatively
influenced the amount of loan repaid. The
regression analysis finds the fishing income,
loan and amount of investment made as
significant predictors of the amount of loan
repaid. The covariates in the model
explained 77% of the variation in the loan
repaid. It is recommended that allocation of
loans to fisheries sector be increased to
stimulate fishing activities and improve
repayment performance of fishermen.
