An assessment of farmer training initiatives on credit management in rural areas: a case study of Guaranty Trust Bank
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Background of the Study
Farmer training initiatives are critical for enhancing credit management skills among rural agricultural borrowers. Guaranty Trust Bank (GTBank) has implemented targeted training programs aimed at improving farmers’ understanding of credit management, budgeting, and repayment strategies. These programs are designed to empower rural farmers with the knowledge necessary to manage their loans effectively, thereby reducing default rates and improving overall loan performance (Adekunle, 2023). Training initiatives are delivered through workshops, on-farm demonstrations, and digital learning modules, ensuring that the content is accessible and contextually relevant to the rural environment.
By equipping farmers with sound financial management practices, GTBank not only mitigates credit risk but also contributes to sustainable agricultural growth. The bank’s training programs incorporate interactive sessions, peer learning, and follow-up support to reinforce the lessons learned. This comprehensive approach helps build a foundation for financial literacy that extends beyond loan management, fostering long-term economic resilience in rural communities (Olatunji, 2024). However, challenges such as varying baseline educational levels, language barriers, and logistical constraints in reaching remote areas may limit the effectiveness of these training initiatives. Moreover, the impact of training on actual credit performance is often difficult to quantify due to external economic and environmental factors (Ibrahim, 2025). This study aims to assess the influence of farmer training initiatives on credit management in rural areas and identify strategies to enhance the impact of such programs on loan uptake and repayment.
Statement of the Problem
Despite the implementation of farmer training initiatives by GTBank, many rural borrowers continue to experience challenges in managing credit effectively. Limited baseline financial literacy, coupled with inconsistent follow-up support, results in suboptimal loan management and higher default rates (Adekunle, 2023). In addition, language barriers and cultural differences often impede the effective delivery of training content, leading to low retention of key credit management practices. The logistical difficulties in reaching remote farming communities further exacerbate these issues, as training sessions are not always conducted frequently enough to create lasting behavioral change (Olatunji, 2024). Moreover, external factors such as market fluctuations and unpredictable weather conditions complicate the assessment of training effectiveness. These challenges indicate a gap between the theoretical benefits of financial training and the practical outcomes observed on the ground, necessitating a thorough evaluation of the training initiatives and the development of strategies to enhance their impact (Ibrahim, 2025).
Objectives of the Study
• To evaluate the impact of farmer training initiatives on credit management practices.
• To identify key challenges hindering effective credit management among rural borrowers.
• To recommend strategies for enhancing training effectiveness and follow-up support.
Research Questions
• How do training initiatives influence credit management among rural farmers?
• What are the main challenges that limit effective loan management post-training?
• What strategies can improve the long-term impact of farmer training programs?
Research Hypotheses
• H1: Farmer training initiatives significantly improve credit management practices.
• H2: Low baseline financial literacy negatively affects training outcomes.
• H3: Continuous follow-up and support enhance the long-term effectiveness of training initiatives.
Scope and Limitations of the Study
This study focuses on GTBank’s training initiatives in selected rural areas. Data are collected from training attendance records, borrower surveys, and performance metrics. Limitations include regional disparities in education levels and potential self-reporting biases.
Definitions of Terms
• Farmer Training Initiatives: Educational programs aimed at improving financial and credit management skills among rural farmers.
• Credit Management: Practices related to the effective handling of borrowed funds, including budgeting and timely repayments.
• Financial Literacy: The ability to understand and apply financial concepts.
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