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Financial Inclusion of Arable Crop Farmers in Nigeria

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  • Obisesan, A.
  • Adeyonu, A.

Abstract

This study investigates financial inclusion of smallholder arable crop farmers in Nigeria. Primary data were collected for the purpose of the study. Descriptive statistics and Logit regression model were employed in the analysis. The average age of the respondents was 43.67years and male actively participated in food crop production more than female. Though 64.16% of the respondents had access to banks within their community, only 27.65% are banked. Fear of insolvency (90.57%), lack of required form of identification (31.13%), lengthy process (29.72%) and distance to the nearest bank (50.94% ) are the main barriers to opening a bank account. Co-operative is the major means of savings as well as source of credit. Farmers awareness of agricultural insurance scheme is low, however, more than half of the farmers are willing to participate. Age, labour cost and cultivation of improved varieties had negative and significant effect on willingness to participate while awareness, years of formal education, credit access and membership of association had significant positive effect on willingness to participate. Hence, financial institutions should consider boosting their services to arable crop farmers and create enabling environment that will facilitate financial inclusion of farmers in Nigeria. Keywords: Financial services, Arable crops, Farmers, Nigeria Acknowledgement :

Suggested Citation

  • Obisesan, A. & Adeyonu, A., 2018. "Financial Inclusion of Arable Crop Farmers in Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277270, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277270
    DOI: 10.22004/ag.econ.277270
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    References listed on IDEAS

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    1. Ruth Vargas Hill & John Hoddinott & Neha Kumar, 2013. "Adoption of weather-index insurance: learning from willingness to pay among a panel of households in rural Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 385-398, July.
    2. Demirguc-Kunt, Asli & Klapper, Leora & Singer, Dorothe, 2013. "Financial inclusion and legal discrimination against women : evidence from developing countries," Policy Research Working Paper Series 6416, The World Bank.
    3. Michael Chibba, 2009. "Financial Inclusion, Poverty Reduction and the Millennium Development Goals," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(2), pages 213-230, April.
    4. Bruce J. Sherrick & Peter J. Barry & Paul N. Ellinger & Gary D. Schnitkey, 2004. "Factors Influencing Farmers' Crop Insurance Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 103-114.
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