Financial Inclusion and Its Effect on Farm Investments and Revenue Generation for Poultry Farmers in Njikoka Local Government Area of Anambra State, Nigeria

Abstract

This study investigates the extent of financial inclusion among poultry farmers in Njikoka Local Government Area, Anambra State, Nigeria, within the context of Nigeria’s agriculture-driven economy, which employs  over 70% proportion of the population and contributes significantly to national development. Using a multistage sampling technique to select 80 poultry farmers. The majority of the farmers are aged between 30 and 49 years (65.0%), predominantly male (73.8%), married (81.2%), with household sizes of 4 to 6 persons (55.0%) and secondary education levels (56.3%). Additionally, 65.1% of the farmers have 0-10 years of farming experience, and 65.0% earn less than N50,000 monthly. Most farmers report limited access to credit (60.0%) and moderate access to extension services (57.5%). Association membership, common among 66.3% of the farmers, plays a significant role in shaping financial inclusion outcomes. Multivariate probit analysis reveals that marital status is a key determinant of owning both bank and savings accounts, while education primarily influences bank account ownership. Income positively correlates with ownership of financial products, including bank accounts, savings accounts, and credit/debit cards. Interestingly, association membership negatively impacts bank account ownership but positively influences savings account ownership. Farming experience and access to credit increase the likelihood of owning savings accounts and credit cards, while flock size is also positively linked to credit/debit card ownership. Despite these positive associations, financial inclusion has exerted only a marginal influence on investments in infrastructure, farm efficiency, and profitability. Barriers such as complex application processes, discrimination, and geographic distance to financial institutions remain significant obstacles.