Influence of socio-economic factors on financial inclusion among rice farmers in ikwo local government area, ebonyi state, nigeria
Main Article Content
Abstract
This study analyzed the influence of socio-economic factors on financial inclusion among rice farmers in Ikwo Local Government Area, Ebonyi State, Nigeria. The specific objectives were to assess the level of financial inclusion, analyze the determinants of financial inclusion, and identify the constraints militating against financial inclusion among rice farmers in the study area. A multistage sampling procedure was used to select 96 respondents from a list of registered rice farmers. Data were collected using a structured questionnaire and were analyzed using descriptive statistics and logistic regression. Findings revealed a high level of financial inclusion among rice farmers, since majority of them (85%) owned a bank account and had access to formal financial services. The results equally showed that educational level, farming experience, farm size, and income were positive and significant factors influencing financial inclusion. Age was significant and negatively influence financial inclusion. However, high interest rates (3.7396), insufficient collateral (3.6146), and a lack of financial institutions (3.4792) were constraints militating against financial inclusion. In view of these findings, the study, therefore, recommends that stakeholders and the government should establish commercial bank branches in the study area and ensure that rice farmers access loans at concessionary interest rates. Also, there is a need to implement community-based training to educate farmers about financial services, loan processes, and credit management to increase awareness and understanding.
Downloads
Article Details
Issue
Section
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
How to Cite
References
Abel, S. L., Mutandwa, & Le, R. P. (2018). A review of determinants of financial inclusion. International Journal of Economics and Financial Issues, 8(3), 1–8.
Admiral, R., & Wong, C. (2020). Determinants of financial inclusion among women in Nigeria. International Journal of Economics and Financial Issues, 10(2), 150–157.
African Development Bank. (2013). Financial inclusion in Africa. Retrieved from: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Financial_Inclusion_in_Africa.pdf
Ajeigbe, H. A., Adeola, R. G., & Kayode, J. M. (2013). Socioeconomic factors affecting plantain (Musa paradisiacal) production in Kogi State, Nigeria. Agricultural Science, 4(3), 133.
Amusa, T. A., Igwe, K. C., & Oti, G. O. (2020). Environmental risks management practices among rice farmers in rice-producing areas of Imo State, Nigeria. Journal of Sustainable Agriculture and the Environment, 18(1), 101–121.
Anwar, A. I., Sabbar, S. D., Saifulloh, N. I., Umar, H. B., Amar, M. Y., & Aswan, A. (2024). The impact of socioeconomic variables on financial inclusion in Asian countries: A comparative study, 2010–2022. Journal of Infrastructure, Policy and Development, 8(1), 2857. https://doi.org/10.24294/jipd.v8i1.2857
Fatoba, P. O. (2011). Economic analysis of plantain production in Osun State, Nigeria. Journal of Agricultural Science and Application, 1(2), 56–59.
Le, T. T., Dang, N. D., Nguyen, T. D., Vu, T. S., & Tran, M. D. (2019). Determinants of financial inclusion: Comparative study of Asian countries. Journal of Asian Economic and Financial Review, 9(10), 1107–1123.
National Bureau of Statistics. (2019). Selected banking sector data: Sectorial breakdown of credit, e-payment channels and staff strength. Retrieved from: https://www.nigerianstat.gov.ng/pdfuploads/Selected_Banking_Sector_Data_-_Q1_2019.pdf
Ngwang, N. N., & Bime, M. J. E. (2023). Drivers of financial inclusion among cocoa producers in the Southwest Region of Cameroon. Finance & Economics Review, 5(1), 1–13. https://doi.org/10.38157/fer.v5i1.525
Nigerian Population Commission. (2006). National Population Census.
Nwahia, O. C. (2021). Analysis of the cost and economic returns in rice production in Ebonyi State, Nigeria. Indonesian Journal of Agricultural Research, 3(3), 205–214. https://doi.org/10.32734/injar.v3i3.4912
Nwaiwu, I. U., Amaechina, E. C., & Obasi, P. C. (2014). An analysis of socio-economic characteristics of arable crop farmers in Imo State, Nigeria. International Journal of Agricultural Management and Development, 4(4), 293–299.
Nwaiwu, I. U., Amasiatu, C. C., & Obianim, B. N. (2013). Effects of socio-economic characteristics of farming households on adoption of improved rice production technologies in Ohaji/Ese Local Government Area of Imo State, Nigeria. International Journal of Social Sciences and Entrepreneurship, 1(7), 225–237.
Nwankwo, O., FCIB, & Nwankwo, O. N. O. (2014). Sustainability of financial inclusion to rural dwellers in Nigeria: Problems and way forward. Research Journal of Finance and Accounting, 5(5), 1–8.
Obasi, P. C., Nwaiwu, I. U., Ukoha, O. O., & Kurmi, P. M. (2013). Analysis of socioeconomic factors influencing adoption of improved rice production technologies in Ohaji/Ese Local Government Area of Imo State, Nigeria. Agricultural Science, 4(3), 133–140.
Obisesan, A., & Adeyonu, A. (2018). Financial inclusion of arable crop farmers in Nigeria. 2018 Conference, July 28–August 2, Vancouver, British Columbia. International Association of Agricultural Economists. https://doi.org/10.22004/ag.econ.277270
Ogunbiyi, T. T. (2014). Challenges of accessing agricultural credit facilities among smallholder oil palm farmers in Ondo State, Nigeria. Journal of Research in Forestry, Wildlife and Environment, 6(2), 81–88.
Ojo, O. A., Akinyemi, S. O., & Omopariola, A. O. (2018). Economics of plantain production in Ondo State, Nigeria. Journal of Development and Agricultural Economics, 10(9), 128–137.
Okorie, E. E. (2018). Contributions of youths to agricultural production in Enugu South Local Government of Enugu State, Nigeria. International Journal of Development and Economic Sustainability, 6(2), 32–46.
Paul, N. E. (2013). Financial services industry as catalyst for financial inclusion in Nigeria. Paper presented at the 7th Annual Banking and Finance Conference, Chartered Institute of Bankers of Nigeria, Transcorp Hilton Hotel, Abuja, 10–11 September.
Pena, X., Hoyo, C., & Tuesta, D. (2014). Determinants of financial inclusion in Mexico based on the 2012 National Financial Inclusion Survey (ENIF). BBVA Working Paper (14/14).
Sertoglu, K., Ugural, S., & Bekun, F. V. (2017). The contribution of agricultural sector on economic growth of Nigeria. International Journal of Economics and Financial Issues, 7(1), 547–552.
Soumaré, I., Tchana, T. F., & Kengne, T. M. (2016). Analysis of the determinants of financial inclusion in Central and West Africa. Transnational Corporations Review, 8(4), 231–249. https://doi.org/10.1080/19186444.2016.1265763
Uwuigbe, U., & Olabode, O. (2020). Level of financial inclusion in Nigeria: Evidence from the 2018 EFInA Access to Financial Services Survey. Journal of Financial Services Marketing, 25(2), 115–127.
World Bank. (2022). Financial inclusion overview. Retrieved from https://www.worldbank.org/en/topic/financialinclusion/overview
Zins, A., & Weill, L. (2016). The determinants of financial inclusion in Africa. Review of Development Finance, 6(1), 46–57.