MICROFINANCE ACCESS ENABLES SCALE BUT NOT PROFITABILITY: AN ECONOMIC AND WATER QUALITY ASSESSMENT OF FISH FARMS IN MINNA, NIGERIA

Abstract

This study assessed the economic viability and water quality conditions of microfinance-supported fish farms in Minna Metropolis, Niger State, Nigeria. A comparative survey of 30 microfinance beneficiaries and 30 non-beneficiaries evaluated differences in investment scale, profitability, and pond water quality. Results showed that microfinance access significantly increased initial capital investment (median: N1,250,000 vs. N1,000,000; p = 0.031), enabling beneficiaries to operate at a larger scale, as evidenced by higher feed expenditure. However, this expanded operational scale did not translate into statistically higher net profits (median: N1,163,500 vs. N1,171,000; p = 0.988) or improved return on investment (mean ROI: 82.5% vs. 84.1%), indicating that capital alone is insufficient to enhance profitability. Water quality parameters including pH (6.87-6.89), dissolved oxygen (6.73-7.26 mg/L), alkalinity (95-96 mg/I), and hardness (88-100 mg/l) remained within acceptable ranges for Clariidae fishes in both groups. While water temperatures were only marginally higher among beneficiaries (30.22°C vs. 29.96°C), their significantly elevated biological oxygen demand (BOD: 4.45 vs. 3.95 mg/l) suggests greater organic loading, likely due to intensified feeding practices. The findings suggest that while microfinance effectively alleviates capital constraints, its impact on farm profitability is mediated by non-financial factors such as management capacity, feed efficiency, and market access. Therefore, sustainable aquaculture development in the region requires integrated support that combines credit access with technical training, market linkages, and routine water quality monitoring.