The study empirically examined the effect of microfinance on piggery business in
Osun State, Nigeria. There hundred and twenty (320) pig farmers were sampled
from Osun State in a multi-stage sampling process through a structured
questionnaire. The data collected were analyzed using descriptive statistics and
Tobit regression. This study revealed that majority of the piggery farmers are still
in their active age (66% are below 50 years), married and educated (26% had first
degree). Also, majority of the farmers sourced for loan through cooperative society
and have stocking of pens as primary motive. The Tobit result revealed that level
of education, years of experience in piggery farming and number of pigs had
significant positive effect on fund security. Interest rates on loans obtained should
be reduced while the quality and quantities of input should increase. As a policy
option, financial institutions and cooperative societies need to relax the transaction
cost associated with loan procurement. Above all, more funds should be made
available to piggery farmers at minimum cost to increase the output of the piggery
industry.