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Back to the Land: The Impact of Financial Inclusion on Agriculture in Nigeria

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  • Evans Olaniyi

    (School of Management & Social Sciences, Pan-Atlantic University, Lagos, Nigeria.)

Abstract

Can rural financial inclusion enhance agricultural growth? This study, using annual data over the period 1981-2014 and the ARDL bounds testing approach, captures the long run as well as the short -run dynamics of the relationship between financial inclusion and agriculture in Nigeria. The results show that usage of financial services has significant impacts on agriculture both in the short and the long run, meaning that for sustainable agricultural development in rural areas, improving financial inclusion is critical. On the contrary, access to finance has insignificant impacts on agricultural growth. The message is: While provision of access to finance to rural farmers could have many benefits, it is more important to consider the usage of the finance in the rural settings and its impact on rural outcomes that we care about. There is a need for more traditional and non-traditional financial service providers to go back to the land and innovate in the Nigerian agricultural space in order to boost financial inclusion in Nigeria while also substantially reducing poverty and stimulating agricultural growth.

Suggested Citation

  • Evans Olaniyi, 2017. "Back to the Land: The Impact of Financial Inclusion on Agriculture in Nigeria," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(4), pages 885-903, Autumn.
    • Handle: RePEc:eut:journl:v:21:y:2017:i:4:p:885
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    2. Ugwuja, V.C. & Attah, C., 2020. "Determinants of Farmers' Financial Inclusion in Ogba Local Government Area (ONELGA) of Rivers State, Nigeria," Nigerian Agricultural Policy Research Journal (NAPReJ), Agricultural Policy Research Network (APRNet), vol. 8(1), December.
    3. Noncedo, Langwenya Nomfundo, 2019. "The relationship between financial inclusion and agricultural development in Southern Africa Development Community (SADC)," Research Theses 334772, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Agada, G O & Achike, A I & N. A Chukwuone, N A & Omeje, J E, 2023. "Analysis of Impact of Financial Inclusion on Rural Farming Households in Nigeria: A Review," Nigerian Agricultural Policy Research Journal (NAPReJ), Agricultural Policy Research Network (APRNet), vol. 10(1), June.
    5. Adegbite, Olayinka O. & Machethe, Charles L., 2020. "Bridging the financial inclusion gender gap in smallholder agriculture in Nigeria: An untapped potential for sustainable development," World Development, Elsevier, vol. 127(C).
    6. Wale-Awe, Olawale & Evans, Olaniyi, 2023. "Financial inclusion through digital channels and the growth-inequality-poverty triangle: Evidence from Africa," MPRA Paper 119455, University Library of Munich, Germany.
    7. Evans, Olaniyi, 2022. "The criticality of institutions and the macroeconomy for education outcomes in Africa," MPRA Paper 118197, University Library of Munich, Germany.
    8. Adeola, Ogechi & Evans, Olaniyi & Hilson, Ebo, 2018. "Tourism and economic wellbeing in Africa," MPRA Paper 93685, University Library of Munich, Germany.

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