Financial Inclusion and Agriculture: How Has Digital Finance Influenced Payments for Agricultural Goods in Nigeria?

Ambrose Nnaemeka Omeje (), Ikenna Paulinus Nwodo () and Ravinder Rena
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Ambrose Nnaemeka Omeje: University of Nigeria
Ikenna Paulinus Nwodo: University of Nigeria

A chapter in Financial Resilience and Environmental Sustainability, 2025, pp 499-519 from Springer

Abstract: Abstract Recent developments in financial technology have enabled digital financial services to reach more and more people, allowing for increased access to formal financial services and the possibility of improved economic participation and inclusion. Those in the agricultural sector who are both in the urban and rural areas and are financially included now receive payments through digital finance for goods sold to buyers, as most buyers now hardly go to market with raw cash due to fear of attacks by bandits, Boko-haram, kidnappers, Fulani herdsmen, and armed robbers. This study employed the Global Findex survey data 2021 for Nigeria and applied multinomial logistic regression model to examine how digital finance has influenced payments for agricultural goods in Nigeria. The results revealed that online payment of bills using internet and having a mobile money account significantly increase the likelihood of receiving payment into an account than not receiving payments. Overall, digital finance mediums such as online bill payments, operating a mobile money account, and using mobile phones to make in-store payments improve the payments for agricultural goods in Nigeria, which by extension, enhances the profitability of those who deal in agricultural goods. The policy implication of the study’s findings among others includes that there is a need for more improvements in the digital finance enablers which would help to encourage and sustain gains in agribusiness in Nigeria. Again, concerted efforts should be geared toward making financial technology and innovations companies and traditional financial institutions to financially include more people, especially those in agribusiness.

Keywords: Financial technology; Financial inclusion; Digital finance; Agricultural goods; Agribusiness; Nigeria; Digital payments; Agricultural sales; Multinomial logit; Global Findex (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-4269-4_23

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DOI: 10.1007/978-981-96-4269-4_23

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