IDEAS home Printed from https://ideas.repec.org/a/ags/ajfand/340619.html
   My bibliography  Save this article

Financial Inclusion Of Urban Agro-Processors: Effect Of Credit On Poverty Status Of Roasted Plantain Vendors In Calabar, Nigeria

Author

Listed:
  • Ajah, EA
  • Etowa, EB
  • Effa, EB
  • Ofem, UI
  • Iso, HE
  • Ettah, OI
  • Asuquo, IA

Abstract

This study analysed the effect of credit on the poverty status of roasted plantain vendors in Calabar, Nigeria. The study described sources of credit, comparing the poverty status of credit recipients versus non-recipients, and the relationship between credit access and poverty index alongside the relationship between socioeconomic factors and poverty index. Data was collected from 110 randomly sampled roasted plantain vendors with the use of structured questionnaire. Poverty was measured with the Foster, Greer and Thorbecke (FGT) model class of weighted poverty measures. Descriptive statistics were used to examine poverty status, access to credit and the sociodemographic attributes of the roasted plantain vendors. Next, using descriptive statistics, the poverty status of the vendors who accessed credit was compared to those who did not access credit. Finally, the association between access to credit and poverty index was analyzed with logistic regression model while adjusting for the effects of sociodemographic factors. Descriptive statistics showed that 60% of the vendors were female, the average age was 35 years, and the average household size was four persons. Precisely, 91% of the roasted plantain vendors had completed primary or higher education. Exactly, 64.5% received credit, while 30.79% reported non-institutional lenders as sources of credit. The mean monthly income was N48,036.36 (US$116.89). Poverty incidence was lower among credit recipients (0.268) compared to nonrecipients (0.487). Credit access (OR = .083, p<.01) and household (OR=2.496, p<.01) had statistically significant associations with the poverty index. Policies promoting structural transformation are recommended for sustainable financial inclusion. An effective economic growth and development program, for example, will increase productive capacities and reduce capital losses, increase creditworthiness, motivate capital expansion and sustainable growth. Also, it was recommended that cooperative formation among the vendors is required. Membership of such a cooperative will increase credit access through reduced transaction cost, higher group’s creditworthiness/borrowing experience and stronger negotiation capacity. A Nigerian economic transformation program to promote increased productive capacities and reduced capital losses is necessary for any financial inclusion policies to sustainably alleviate poverty among deprived agro-processors such as the roasted plantain vendors. Such programs will include financial literacy including banking and loan repayments, business innovations, and business plan development.

Suggested Citation

  • Ajah, EA & Etowa, EB & Effa, EB & Ofem, UI & Iso, HE & Ettah, OI & Asuquo, IA, 2024. "Financial Inclusion Of Urban Agro-Processors: Effect Of Credit On Poverty Status Of Roasted Plantain Vendors In Calabar, Nigeria," African Journal of Food, Agriculture, Nutrition and Development (AJFAND), African Journal of Food, Agriculture, Nutrition and Development (AJFAND), vol. 24(1), January.
    • Handle: RePEc:ags:ajfand:340619
    DOI: 10.22004/ag.econ.340619
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/340619/files/Ajah.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.340619?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ms. Ratna Sahay & Mr. Martin Cihak & Mr. Papa M N'Diaye & Mr. Adolfo Barajas & Ms. Srobona Mitra & Ms. Annette J Kyobe & Yen N Mooi & Mr. Seyed Reza Yousefi, 2015. "Financial Inclusion: Can it Meet Multiple Macroeconomic Goals?," IMF Staff Discussion Notes 2015/017, International Monetary Fund.
    2. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    3. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
    4. Ratna Sahay & Martin Cihak & Papa M N'Diaye & Adolfo Barajas & Srobona Mitra & Annette J Kyobe & Yen N Mooi & Seyed Reza Yousefi, 2015. "Financial Inclusion; Can it Meet Multiple Macroeconomic Goals?," IMF Staff Discussion Notes 15/17, International Monetary Fund.
    5. Demirguc-Kunt,Asli & Klapper,Leora & Singer,Dorothe & Van Oudheusden,Peter, 2015. "The Global Findex Database 2014 : measuring financial inclusion around the world," Policy Research Working Paper Series 7255, The World Bank.
    6. Erik Bryld, 2003. "Potentials, problems, and policy implications for urban agriculture in developing countries," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 20(1), pages 79-86, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Damane, Moeti & Ho, Sin-Yu, 2024. "Effects of financial inclusion on financial stability: evidence from ssa countries," MPRA Paper 120238, University Library of Munich, Germany.
    2. Damane, Moeti & Ho, Sin-Yu, 2024. "The impact of financial inclusion on financial stability: review of theories and international evidence," MPRA Paper 120369, University Library of Munich, Germany.
    3. Ozili, Peterson K, 2020. "Theories of financial inclusion," MPRA Paper 101810, University Library of Munich, Germany.
    4. Kouladoum, Jean-Claude & Wirajing, Muhamadu Awal Kindzeka & Nchofoung, Tii N., 2022. "Digital technologies and financial inclusion in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(9).
    5. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran S. & Hall, John H. & Bennett, Sara E., 2021. "Sustainable economic development in India: The dynamics between financial inclusion, ICT development, and economic growth," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    6. Ozili, Peterson K, 2020. "Financial inclusion research around the world: a review," MPRA Paper 101809, University Library of Munich, Germany.
    7. María-Jesús Gallego-Losada & Antonio Montero-Navarro & Rocío Gallego-Losada & José-Luis Rodríguez-Sánchez, 2024. "Measuring financial divide in the rural environment. The potential role of the digital transformation of finance," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 2791-2810, December.
    8. Ozili, Peterson Kitakogelu, 2022. "Financial inclusion in Nigeria: an overview," MPRA Paper 113572, University Library of Munich, Germany.
    9. Ma, Yechi & Ding, Yibing & Bu, Ziwen & Li, Suyang, 2024. "Political freedom and financial inclusion: Unraveling social trust and political rent-seeking," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 46-65.
    10. Xuan T. T. Pham & Thu B. Luu, 2024. "Effect of FinCredit on income inequality: the moderating role of financial inclusion," Review of Quantitative Finance and Accounting, Springer, vol. 62(3), pages 953-969, April.
    11. Sohail Abbas & Ghulam Dastgeer & Samia Nasreen & Shazia Kousar & Urooj Riaz & Saira Arsh & Muhammad Imran, 2024. "How Financial Inclusion and Green Innovation Promote Green Economic Growth in Developing Countries," Sustainability, MDPI, vol. 16(15), pages 1-19, July.
    12. Yue, Pengpeng & Korkmaz, Aslihan Gizem & Yin, Zhichao & Zhou, Haigang, 2022. "The rise of digital finance: Financial inclusion or debt trap?," Finance Research Letters, Elsevier, vol. 47(PA).
    13. Wang, Rui & Luo, Hang (Robin), 2022. "How does financial inclusion affect bank stability in emerging economies?," Emerging Markets Review, Elsevier, vol. 51(PA).
    14. Menyelim M. Chima & Abiola Ayopo Babajide & Alex Adegboye & Segun Kehinde & Oluwatobi Fasheyitan, 2021. "The Relevance of Financial Inclusion on Sustainable Economic Growth in Sub-Saharan African Nations," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    15. Anum Khan & Muhammad Shujaat Mubarik & Navaz Naghavi, 2023. "What matters for financial inclusions? Evidence from emerging economy," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 821-838, January.
    16. Angélica del Carmen Calle Sarmiento, 2018. "Analysis of the Ownership of Financial Products: Evidence to Contribute to Financial Inclusion in Bolivia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 2, pages 15-50, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    17. Gourène, Grakolet Arnold Zamereith & Mendy, Pierre, 2017. "Financial Inclusion and Economic Growth in WAEMU: A Multiscale Heterogeneity Panel Causality Approach," MPRA Paper 82251, University Library of Munich, Germany.
    18. Dina Azzam Alshanty, 2022. "The Impact of Financial Inclusion on Economic Growth and Social Development in the Hashemite Kingdom of Jordan," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(7), pages 368-375, July.
    19. Babak Naysary & Ruth Tacneng & Amine Tarazi, 2021. "Adoption of fintech services: role of saving and borrowing mechanisms," Working Papers hal-03335254, HAL.
    20. Mao, Fengfu & Wang, Yuanfan & Zhu, Mengsi, 2023. "Digital financial inclusion, traditional finance system and household entrepreneurship," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajfand:340619. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajfand.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.