Determinants of Credit Repayment among Agricultural Cooperative Societies Members in Nasarawa State

This study investigates the determinants of credit repayment among members of agricultural cooperative societies in Nasarawa State, Nigeria. Despite the pivotal role of cooperatives in rural development, access to credit and timely repayment remain significant challenges, threatening their sustainability. Employing a descriptive survey design, data was collected from 214 cooperative members across 13 local government areas using structured questionnaires. The study examines socio-economic factors (such as income, education, farm size), organizational characteristics (like governance, communication, member cohesion), and external macroeconomic and environmental influences (including inflation, natural disasters, political stability). Multiple linear regression analyses reveal that socio-economic attributes, notably membership in farmers' organizations, farm size, and reliance on family labour, significantly enhance repayment capacity, whereas increasing age slightly diminishes it. Organizational factors, including strong bonds, transparent communication, participative decision-making, and effective leadership, collectively explain about 72% of repayment behavior, emphasizing the importance of sound organizational governance. External factors such as economic downturns, inflation, natural disasters, and rising input costs significantly impair repayment, accounting for approximately 69% of the variation. The findings underscore that both internal organizational practices and external macroeconomic conditions critically influence repayment performance. The study concludes that improving organizational structures, fostering social cohesion, increasing financial literacy, and mitigating external shocks are vital for enhancing repayment rates. Policy recommendations include capacity-building programs, tailored financial products, and macroeconomic stabilization measures to support sustainable agricultural finance. The insights contribute to understanding the complex interplay of socio-economic, organizational, and external factors affecting credit repayment, providing a foundation for policymakers, cooperative leaders, and development agencies to devise targeted interventions that promote financial discipline and resilience in Nigeria’s agricultural sector.