Influence of credit access on the total sales of household non-farm enterprises in Nigeria: evidence from binary logit regression

This study examined the influence of credit access on the total sales performance of household non-farm enterprises in Nigeria. We adopted the binary logistic regression model approach and used cross-sectional data from the general household survey (GHS) conducted in Nigeria in the period 2017/2018. Apart from the core variables, other covariates included in the analysis are official registration with the government, employee gender and age of enterprise. The findings indicate that credit access positively and significantly influences the total sales of household non-farm enterprises in Nigeria. Interestingly, the study established that official registration with government significantly impedes the total sales performance of the enterprises. This suggests that the Nigerian bureaucracy significantly retards the performance of household non-farm enterprises. The study, therefore, concludes that there is need for policies that will not only enhance credit access by these enterprises, but will also reform the Nigerian bureaucracy so that they can actively support the growth and development of these enterprises.