Determinants of Financial Inclusion among Agricultural Farmers in Adamawa State, Nigeria

Abstract

Financial inclusion, the ability to access necessary financial services, is substantially low in Adamawa state and particularly among rural farmers. These farmers are mostly faced with inadequate financial resources which are channeled through the formal sector. The study attempts to investigate the likely factors that inhibit agricultural farmers in the state from being financially included. A multi - stage sampling technique was used to obtain data from the sample. Logit regression was used for analysis. The findings revealed that 64.7% of the farmers have formal account and there is high degree of access to ATM and mobile/internet banking among account holders but very low degree of access to formal credit and farm insurance. It was also revealed that farmer’s income, literacy level and being a man significantly increase the chances of having access to the components of financial inclusion. However, Age does not significantly determine financial inclusion. The study recommends that financial institutions should be flexible in the way they render financial products and services and make them available at affordable price. Financial literacy outreach should be intensified through schools and other training centers in order to reach the poor farmers in rural areas. Priority should also be given to female farmers in order to bridge the gender gap in access to financial products.

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