DRIVERS OF FINANCIAL INCLUSION AMONG OIL PALM PRODUCERS IN YAKURR LOCAL GOVERNMENT AREA, CROSS RIVER STATE, NIGERIA

Abstract

This study focused on the drivers of Financial Inclusion among oil palm producers in Yakurr Local Government Area, Cross River State, Nigeria. The specific objectives were to assess the level of financial inclusion among producers; analyze its drivers and examine the challenges producers face in accessing financial services. A two-stage sampling procedure was used to select 138 respondents. Data were collected using a well-structured questionnaire and analyzed using descriptive statistics and binary logistic regression analysis. Findings revealed that there is a high level of financial inclusion among oil palm producers, since majority 115 (83.3%) own a bank account and can access formal financial services. Sex (p<0.05), educational level (p<0.1), income (p<0.01), household size (p<0.01), occupation (p<0.01), were the major drivers of financial inclusion. However, high interest rate (12%), lack of access to financial services (18%), inadequate infrastructure (13%), insufficient collateral for loan (10%), limited access to financial institution (9.8%), were the major challenges to financial inclusion. The study therefore, recommends that stakeholders and the government should establish commercial bank branches in the study area, and ensure that oil palm producers access loan at concessionary interest rates.