Microcredit via digital innovation platforms: its drivers and impact on fish farms' yield and income in Nigeria

Purpose - Fish farmers in Africa often operate on small-scale culture units, primarily due to poor access to funding and low technology adoption. Digital innovation platforms seek to enhance farmers’ access to finance, production and farmers’ income. However, there is a lack of empirical evidence to support these claims. Therefore, this study investigated the factors influencing fish farmers’ access to microcredit from digital innovation platforms and the impact of this microcredit on fish farms’ yield and income in Nigeria. Design/methodology/approach - A mixed-methods approach was adopted, and data were gathered from 387 fish farmers through a well-structured questionnaire and focus group discussion. The data were analyzed using probit regression and instrumental variable two-stage least squares regression. Findings - The results revealed that ownership of smartphones, awareness of digital agricultural innovation platforms, farmers’ education, income, fish farming as a primary occupation, cooperative society and extension contacts positively influenced farmers’ access to microcredit from digital innovation platforms. The age of farmers and household size negatively influenced their access to digital microcredit. Digital microcredit positively and significantly impacted fish farms’ yield and farmers’ income. Practical implications - Digital microcredit significantly increased fish farm yield and income. Therefore, digital innovation platforms should be encouraged and promoted through the creation of awareness about their ability to solve inadequate financing in agriculture by agricultural extension agents. Originality/value - This study contributes to our understanding of the influencing factors for farmers accessing digital microcredit and how digital microcredit enhances farm yield and income.