Factors influencing digital financial services adoption among smallholder farmers in Kwara State, Nigeria

Abstract

Digital Financial Services (DFS) have the potential to improve financial inclusion and agricultural productivity among smallholder farmers in Nigeria. However, adoption remains uneven, particularly in rural areas. This study examined the factors influencing DFS adoption among smallholder farmers in Kwara State. A multistage sampling procedure was employed to select 237 respondents. Primary data were collected and analysed using descriptive statistics and binary logistic regression. Findings revealed that most respondents were male, married, and educated, owned a mobile phone, and had internet access. Key determinants of DFS adoption were education (β = 1.772; p ≤ 0.01), income (β = 0.631; p ≤ 0.05), and farming experience (β = -1.059; p ≤ 0.01). Education and income had a positive influence on adoption, while longer farming experience reduced the likelihood of adoption. Policies should promote digital literacy and adult education, provide farmer-friendly DFS products, expand rural internet infrastructure, and offer incentives to encourage wider DFS uptake among smallholder farmers.