Financial Inclusion and Agricultural Output: A Study of Nigerian Economy

Abstract

This study ascertained the effect of financial inclusion on agricultural output in Nigeria. The study was motivated by concerns that despite various financial inclusion initiatives and the expansion of digital financial services, agricultural output has not increased proportionately due to limited access to productive credit and challenges affecting the effective utilization of financial services by farmers. Specifically, the study evaluated the effect of mobile banking and Point of Sale (POS) transactions on agricultural output in Nigeria. The study utilized annual time-series secondary data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin from 2009 to 2024. The data were analyzed using the Ordinary Least Squares (OLS) regression technique with the aid of E-Views 10.0 econometric software. The findings revealed that mobile banking and POS transactions had positive and statistically significant effects on agricultural output. However, the Agricultural Credit Guarantee Scheme Fund had a negative but statistically insignificant effect on agricultural output. Based on these findings, the study recommended that Deposit Money Banks and financial technology providers should expand mobile banking services in farming communities by improving network reliability and designing agricultural-focused mobile financial products.