Effect of Digital Financial Inclusion on Access to Agricultural Finance Among Smallholder Farmers in Selected States in North- Central Nigeria

Mamman Suleiman

doi:10.56201/ijefm.v11.no9.2026.pg167.176

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Effect of Digital Financial Inclusion on Access to Agricultural Finance Among Smallholder Farmers in Selected States in North- Central Nigeria

Mamman Suleiman

Abstract

This study examined the effect of digital financial inclusion on access to agricultural finance among smallholder farmers in Benue, Kogi and Nasarawa States and the Federal Capital Territory, Nigeria. Kwara, Niger and Plateau States were excluded to maintain a manageable geographical scope. A cross-sectional survey design was adopted, and 440 questionnaires were administered, of which 387 valid responses were analysed. Data were collected using a structured questionnaire and analysed using Partial Least Squares Structural Equation Modelling in SmartPLS 4. The findings showed that FinTech-based credit access had a strong positive and significant effect on access to agricultural finance (β = 0.924, p < 0.001). Agent-banking accessibility (β = 0.293, p < 0.001) and digital payment usage (β = 0.098, p < 0.001) also had positive and significant effects. Digital financial literacy had a negative but significant effect (β = −0.279, p < 0.001), while mobile banking usage had a negative and insignificant effect (β = −0.067, p = 0.069). The study concluded that digital financial inclusion improves agricultural-finance access when it provides affordable, timely and suitable credit rather than connectivity and routine transactions alone. It recommended expanding farmer-oriented FinTech credit, strengthening rural agent-banking networks, using digital payment histories for credit assessment and aligning digital loan conditions with agricultural production cycles.

Keywords

agricultural financeagent bankingdigital financial inclusionFinTech creditsmallholder farmers.

References

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Effect of Digital Financial Inclusion on Access to Agricultural Finance Among Smallholder Farmers in Selected States in North- Central Nigeria

Abstract

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