Determinants of utilisation of digital financial services among rural farmers in Ido local government of Oyo state, Nigeria

Abstract

Digital financial services (DFS) have the potential to enhance financial inclusion among rural farmers, yet their utilisation remains limited due to socio-economic and infrastructural challenges. This study assessed the determinants of utilisation of DFS among rural farmers in Ido local government Oyo state. It specifically examined the socio-economic characteristics of rural farmers and their awareness, access, constraints to, and utilisation of digital financial services. Results revealed that the age, household size, farm size, and farm income were 35.98±10.62 years, 5.57±1.14 members, 4.65±4.58 acres and ?66,804.12±41,377.24, respectively with a male majority (79.4%), being primarily farmers (80.4%) and had secondary education (45.4%). The rural farmers were aware of Point of Sales (POS) services (99.0%), USSD services (88.7%), and e-wallets (85.6%) among the available DFS. Access to USSD, e-wallets, and POS services was highest (x? = 1.00) among the DFS while the most utilised being POS services (x? = 1.95). Electricity supply (x? = 4.01) and internet connectivity (x? = 2.45) were significant constraints to utilisation. Respondents farm/enterprise income (B = 0.93), household size (B = 2.10), and awareness (B = 2.35) significantly influenced the DFS utilisation positively, while farm size (B = -1.33) and constraints (B = -4.10,) were deterrents. The study recommends infrastructural improvements, financial literacy programmes, and policy reforms to enhance digital financial inclusion among rural farmers.