EFFECT OF FINANCIAL INCLUSION ON LEVELS OF COMMERCIALIZATION AMONG RURAL WOMEN FARMERS IN SOUTH EAST, NIGERIA

Abstract

This study evaluated the effect of financial inclusion on the level of agricultural commercialization among rural women farmers in the South-East region of Nigeria. The research was conducted in the South-East region of Nigeria, specifically targeting a sample size of 266 rural women farmers. The study utilized primary data collected through a semi-structured questionnaire. The objectives were achieved using various statistical techniques, including the Commercialization Index and the Ordinal Probit Regression model. Financial inclusion in this study encompassed the availability, adequacy, awareness, affordability, and accessibility of financial services. The findings revealed that the indices for availability, adequacy, awareness, affordability, and accessibility were 0.25, 0.44, 0.18, 0.40, and 0.37, respectively. The mean financial inclusion index was 0.33. A significant proportion (73.7%) of rural women farmers were commercially oriented, while 26.3% were not. The Ordinal Probit Regression model produced a log-likelihood value of −237.0175, which was statistically significant at the 1% level. The pseudo-R-squared value of 0.34025 indicates that the model provides a satisfactory fit. Out of the ten explanatory variables included in the model, two were found to be statistically significant at different probability levels. These variables are: expert advice on financial management (coefficient = 0.277963) and access to insurance policy (coefficient = 0.491930). The study recommends that the National Root Crops Research Institute, the International Institute of Tropical Agriculture, and local development groups should provide support in the form of production inputs, financial advisory services, and awareness creation on insurance policies to enhance the commercialization of rural women farmers. Furthermore, rural women farmers should be supported through training and extension programmes. They should also receive assistance in contract negotiations to improve market access and increase their financial returns.